As Reported by the Committee of Conference, Part II

Am. Sub. H. B. No. 66
Part II of this act continues Part I

       Sec. 5121.04.  (A) The department of mental health and the64919
department of mental retardation and developmental disabilities64920
shall investigate the financial condition of the patients in64921
hospitals and residents in institutions, residents whose care or64922
treatment is being paid for in a private facility or home under64923
the control of the department of mental retardation and64924
developmental disabilities, and of the relatives named in section64925
5121.06 of the Revised Code as liable for the support of such64926
patients or residents, in order to determine the ability of any64927
patient, resident, or suchliable relatives to pay for the support 64928
of the patient or resident and to provide suitable clothing as64929
required by the superintendent of the institution.64930

       The department of mental health shall investigate the64931
financial condition of patients receiving state-operated community64932
mental health services and of the liable relatives to determine64933
the patient's or relative's ability to pay for the patient's 64934
support. In all cases, in determining ability to pay and the64935
amount to be charged, due regard shall be had for others who may64936
be dependent for support upon such relatives or the estate of the64937
patient.64938

       (B) The department shall follow the provisions of this64939
division in determining the ability to pay of a patient or64940
resident or the patient's or resident's liable relatives and the64941
amount to be charged such patient or resident or liable relatives.64942

       (1) Subject to divisions (B)(10) and (11) of this section, a64943
patient or resident without dependents shall be liable for the64944
full applicable cost. A patient or resident without dependents who 64945
has a gross annual income equal to or exceeding the sum of the64946
full applicable cost, plus fifty dollars per month, regardless of64947
the source of such income, shall pay currently the full amount of64948
the applicable cost; if the patient's or resident's gross annual64949
income is less than such sum, not more than fifty dollars per64950
month shall be kept for personal use by or on behalf of the64951
patient or resident, except as permitted in the state plan for64952
providing medical assistance under Title XIX of the "Social64953
Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as amended, and64954
the balance shall be paid currently on the patient's or resident's 64955
support. Subject to divisions (B)(10) and (11) of this section,64956
the estate of a patient or resident without dependents shall pay64957
currently any remaining difference between the applicable cost and64958
the amounts prescribed in this section, or shall execute an64959
agreement with the department for payment to be made at some64960
future date under terms suitable to the department. However, no64961
security interest, mortgage, or lien shall be taken, granted, or64962
charged against any principal residence of a patient or resident 64963
without dependents under an agreement or otherwise to secure64964
support payments, and no foreclosure actions shall be taken on64965
security interests, mortgages, or liens taken, granted, or charged64966
against principal residences of patients or residents prior to64967
October 7, 1977.64968

       (2) The ability to pay of a patient or resident with64969
dependents, or of a liable relative of a patient or resident 64970
either with or without dependents, shall be determined in64971
accordance with the patient's, resident's, or liable relative's64972
income or other assets, the needs of others who are dependent on64973
such income and other assets for support, and, if applicable,64974
divisions (B)(10) and (11) of this section.64975

       For the first thirty days of care and treatment of each64976
admission and for the first thirty days of care and treatment from64977
state-operated community mental health services, but in no event64978
for more than thirty days in any calendar year, the mentally ill64979
patient or mentally retarded resident with dependents or the64980
liable relative of a mentally ill patient or a mentally retarded64981
resident either with or without dependents shall be charged an64982
amount equal to the percentage of the average applicable cost64983
determined in accordance with the schedule of adjusted gross64984
annual income contained after this paragraph. After such first64985
thirty days of care and treatment, such mentally ill patient or64986
mentally retarded resident or such liable relative shall be64987
charged an amount equal to the percentage of a base support rate64988
of four dollars per day for mentally ill patients and mentally64989
retarded residents, as determined in accordance with the schedule64990
of gross annual income contained after this paragraph, or in64991
accordance with division (B)(5) of this section. Beginning January 64992
1, 1978, the department shall increase the base rate when the 64993
consumer price index average is more than 4.0 for the preceding 64994
calendar year by not more than the average for such calendar year.64995

Adjusted Gross Annual 64996
Income of Patient or Resident 64997
or Liable Relative (FN a) Number of Dependents (FN b) 64998

8 or 64999
1 2 3 4 5 6 7 more 65000
Rate of Support (In Percentages) 65001
$15,000 or less -- -- -- -- -- -- -- -- 65002
15,001 to 17,500 20 -- -- -- -- -- -- -- 65003
17,501 to 20,000 25 20 -- -- -- -- -- -- 65004
20,001 to 21,000 30 25 20 -- -- -- -- -- 65005
21,001 to 22,000 35 30 25 20 -- -- -- -- 65006
22,001 to 23,000 40 35 30 25 20 -- -- -- 65007
23,001 to 24,000 45 40 35 30 25 20 -- -- 65008
24,001 to 25,000 50 45 40 35 30 25 20 -- 65009
25,001 to 26,000 55 50 45 40 35 30 25 20 65010
26,001 to 27,000 60 55 50 45 40 35 30 25 65011
27,001 to 28,000 70 60 55 50 45 40 35 30 65012
28,001 to 30,000 80 70 60 55 50 45 40 35 65013
30,001 to 40,000 90 80 70 60 55 50 45 40 65014
40,001 and over 100 90 80 70 60 55 50 45 65015

       Footnote a. The patient or resident or relative shall furnish 65016
a copy of the patient's, resident's, or relative's federal income 65017
tax return as evidence of gross annual income.65018

       Footnote b. The number of dependents includes the liable65019
relative but excludes the patient ora resident in the hospital or65020
an institution. "Dependent" includes any person who receives more65021
than half the person's support from the patientresident or the 65022
patient'sresident's liable relative.65023

       (3) A patient or resident or liable relative having medical,65024
funeral, or related expenses in excess of four per cent of the65025
adjusted gross annual income, which expenses were not covered by65026
insurance, may adjust such gross annual income by reducing the65027
adjusted gross annual income by the full amount of such expenses.65028
Proof of such expenses satisfactory to the department must be65029
furnished.65030

       (4) Additional dependencies may be claimed if:65031

       (a) The liable relative is blind;65032

       (b) The liable relative is over sixty-five;65033

       (c) A child is a college student with expenses in excess of65034
fifty dollars per month;65035

       (d) The services of a housekeeper, costing in excess of fifty 65036
dollars per month, are required if the person who normally keeps 65037
house for minor children is the patient or resident.65038

       (5) If with respect to any patient or resident with65039
dependents there is chargeable under division (B)(2) of this65040
section less than fifty per cent of the applicable cost or, if the65041
base support rate was used, less than fifty per cent of the amount65042
determined by use of the base support rate, and if with respect to65043
such patient or resident there is a liable relative who has an65044
estate having a value in excess of fifteen thousand dollars or if65045
such patient or resident has a dependent and an estate having a65046
value in excess of fifteen thousand dollars, there shall be paid65047
with respect to such patient or resident a total of fifty per cent65048
of the applicable cost or the base support rate amount, as the65049
case may be, on a current basis or there shall be executed with65050
respect to such patient or resident an agreement with the65051
department for payment to be made at some future date under terms65052
suitable to the department.65053

       (6) When a person has been a patient or resident for fifteen65054
years and the support charges for which a relative is liable have65055
been paid for the fifteen-year period, the liable relative shall65056
be relieved of any further support charges.65057

       (7) The department shall accept voluntary payments from65058
patients or residents or liable relatives whose incomes are below65059
the minimum shown in the schedule set forth in this division. The65060
department also shall accept voluntary payments in excess of65061
required amounts from both liable and nonliable relatives.65062

       (8) If a patient or resident is covered by an insurance65063
policy, or other contract that provides for payment of expenses65064
for care and treatment for mental illness or mental retardation or 65065
other developmental disability at or from an institution,or65066
facility (including a hospital or community service unit under the 65067
jurisdiction of the department), or state-operated community 65068
mental health service, the other provisions of this section, 65069
except divisions (B)(8), (10), and (11) of this section, and of 65070
section 5121.035121.01 of the Revised Code shall be suspended to 65071
the extent that such insurance policy or other contract is in 65072
force, and such patient or resident shall be charged the full 65073
amount of the applicable cost. Any insurance carrier or other 65074
third party payor providing coverage for such care and treatment 65075
shall pay for this support obligation in an amount equal to the 65076
lesser of either the applicable cost or the benefits provided 65077
under the policy or other contract. Whether or not an insured, 65078
owner of, or other person having an interest in such policy or 65079
other contract is liable for support payments under other 65080
provisions of this chapter, the insured, policy owner, or other 65081
person shall assign payment directly to the department of all 65082
assignable benefits under the policy or other contract and shall 65083
pay over to the department, within ten days of receipt, all65084
insurance or other benefits received as reimbursement or payment65085
for expenses incurred by the patient or resident or for any other65086
reason. If the insured, policy owner, or other person refuses to65087
assign such payment to the department or refuses to pay such65088
received reimbursements or payments over to the department within65089
ten days of receipt, the insured's, policy owners', or other65090
person's total liability for the services equals the applicable65091
statutory liability for payment for the services as determined65092
under other provisions of this chapter, plus the amounts payable65093
under the terms of the policy or other contract. In no event shall 65094
this total liability exceed the full amount of the applicable 65095
cost. Upon its request, the department is entitled to a court 65096
order that compels the insured, owner of, or other person having 65097
an interest in the policy or other contract to comply with the 65098
assignment requirements of this division or that itself serves as 65099
a legally sufficient assignment in compliance with such65100
requirements. Notwithstanding section 5122.315123.89 of the 65101
Revised Code and any other law relating to confidentiality of 65102
records, the managing officer of the institution or facility where 65103
a person is or has been a patient or resident, or the managing 65104
officer of the state-operated community mental health services 65105
from which the patient receives services, shall disclose pertinent 65106
medical information concerning the patient or resident to the 65107
insurance carrier or other third party payor in question, in order 65108
to effect collection from the carrier or payor of the state's 65109
claim for care and treatment under this division. For such 65110
disclosure, the managing officer is not subject to any civil or 65111
criminal liability.65112

       (9) The rate to be charged for pre-admission care,65113
after-care, day-care, or routine consultation and treatment65114
services shall be based upon the ability of the patient or65115
resident or the patient's or resident's liable relatives to pay.65116
When it is determined by the department that a charge shall be65117
made, such charge shall be computed as provided in divisions65118
(B)(1) and (2) of this section.65119

       (10) If a patient or resident with or without dependents is65120
the beneficiary of a trust created pursuant to section 1339.51 of65121
the Revised Code, then, notwithstanding any contrary provision of65122
this chapter or of a rule adopted pursuant to this chapter,65123
divisions (C) and (D) of that section shall apply in determining65124
the assets or resources of the patient or resident, the patient's65125
or resident's estate, the settlor, or the settlor's estate and to65126
claims arising under this chapter against the patient or resident, 65127
the patient's or resident's estate, the settlor, or the settlor's65128
estate.65129

       (11) If the department of mental retardation and65130
developmental disabilities waives the liability of an individual65131
and the individual's liable relatives pursuant to section 5123.19465132
of the Revised Code, the liability of the individual and relative65133
ceases in accordance with the waiver's terms.65134

       (C) The department may enter into agreements with a patient65135
or resident or a liable relative for support payments to be made65136
in the future. However, no security interest, mortgage, or lien65137
shall be taken, granted, or charged against any principal family65138
residence of a patient or resident with dependents or a liable65139
relative under an agreement or otherwise to secure support65140
payments, and no foreclosure actions shall be taken on security65141
interests, mortgages or liens taken, granted, or charged against65142
principal residences of patients or residents or liable relatives65143
prior to October 7, 1977.65144

       (D) The department shall make all investigations and65145
determinations required by this section within ninety days after a65146
patient or resident is admitted to an institution under the65147
department's control or a patient begins to receive state-operated65148
community mental health services, and immediately shall notify by65149
mail the persons liable of the amount to be charged.65150

       (E) All actions to enforce the collection of payments agreed65151
upon or charged by the department shall be commenced within six65152
years after the date of default of an agreement to pay support65153
charges or the date such payment becomes delinquent. If a payment65154
is made pursuant to an agreement which is in default, a new65155
six-year period for actions to enforce the collection of payments65156
under such agreement shall be computed from the date of such65157
payment. For purposes of this division an agreement is in default65158
or a payment is delinquent if a payment is not made within thirty65159
days after it is incurred or a payment, pursuant to an agreement,65160
is not made within thirty days after the date specified for such65161
payment. In all actions to enforce the collection of payment for65162
the liability for support, every court of record shall receive65163
into evidence the proof of claim made by the state together with65164
all debts and credits, and it shall be prima-facie evidence of the65165
facts contained in it.65166

       Sec. 5121.05.  The department of mental health and the65167
department of mental retardation and developmental disabilities 65168
may subpoena witnesses, take testimony under oath, and examine any 65169
public records relating to the income and other assets of a 65170
patient or resident or of a relative liable for such patient's or 65171
resident's supportrelative. All information, conclusions, and65172
recommendations shall be submitted to the department by the 65173
investigating agent of the department. The department shall 65174
determine the amount of support to be paid, by whom, and whether 65175
clothing shall be furnished by the relatives or guardian.65176

       Sec. 5121.06.  (A) The following persons other than the65177
patient or resident or the patient's or resident's estate are 65178
liable relatives and all the following persons are jointly and 65179
severally liable for the support of a patient or resident in a 65180
hospital oran institution under the control of the department of 65181
mental health or the department of mental retardation and 65182
developmental disabilities or for the support of a patient 65183
receiving state-operated community mental health services:65184

       (1) The patient or resident or the patient's or resident's 65185
estate;65186

       (2) The patient's or resident's spouse;65187

       (3) The father or mother, or both, of a minor patient or65188
resident under the age of eighteen years.65189

       (B) The department shall determine, pursuant to section65190
5121.04 of the Revised Code, the amount to be charged each such65191
resident and liable personrelative in the order named in this 65192
section, but shall not collect from any person more than one 65193
hundred per cent of the applicable cost.65194

       (C) An action to collect delinquent payments or to enforce65195
agreements in default may be brought against any or all persons65196
named in this section. To the extent parents of adult patients or65197
residents, pursuant to the language of this section previously in 65198
force, incurred charges for the support of such patients or65199
residents between the eighteenth birthday of such patient or65200
resident and July 1, 1975, their liability for such period may be65201
cancelled, compromised, or settled as provided in section 5121.0765202
of the Revised Code.65203

       (D) Irrespective of the number of patients or residents whose 65204
care might be chargeable against a liable relative, no individual 65205
liable relative nor any group of liable relatives who are members 65206
of the same family unit shall be charged with the support of more 65207
than one patient or resident during the same period of time, and 65208
different periods of time for which such liable relative has paid 65209
the charges for such different patients' or residents' care and 65210
support shall be added together for the purpose of completing the 65211
maximum fifteen-year period of liability of such liable relative 65212
under division (B)(6) of section 5121.04 of the Revised Code.65213

       Sec. 5121.061.  The authority of the department of mental 65214
health or the department of mental retardation and developmental 65215
disabilities to modify support charges pursuant to section 5121.04 65216
of the Revised Code shall not be exercised until the patient or65217
resident or liable relative has petitioned the department for 65218
modification as provided in section 5121.07 of the Revised Code65219
and has offered to the department satisfactory proof of histhe 65220
resident's or liable relative's earnings and assets. The 65221
department may modify the charges if its investigation warrants65222
such modification.65223

       Sec. 5121.07.  Any person who has been charged with the 65224
payment of the support of a patient or resident of any benevolent 65225
institution;or for pre-admission care, after-care, day-care, or 65226
routine consultation and treatment services in a community service 65227
unit under the control of the department of mental health or the 65228
department of mental retardation and developmental disabilities;65229
or for the cost of state-operated community mental health services65230
may petition the department for a release from, or modification 65231
of, such charge, and the department, after an investigation, may 65232
cancel or modify such former charge, or may cancel, compromise, or 65233
settle any accrued liability in an amount not exceeding five 65234
thousand dollars. Amounts in excess thereof may be canceled, 65235
compromised, or settled as provided in section 131.02 of the 65236
Revised Code. The department may for due cause increase the amount 65237
previously ordered paid.65238

       Sec. 5121.08.  The managing officers of the benevolent65239
institutions under the control of the department of mental health 65240
and the department of mental retardation and developmental 65241
disabilities, the managing officers of state-operated community 65242
mental health services, and the committing court, if requested, 65243
shall submit to the department such information as they may obtain65244
concerning the financial condition of any patient or resident or 65245
of relatives liable for the patient's or resident's support.65246

       Sec. 5121.09.  In case the estate of any patient or resident 65247
in a benevolentan institution under the jurisdiction of the 65248
department of mental health or the department of mental 65249
retardation and developmental disabilities or receiving 65250
state-operated community mental health services is sufficient for 65251
the patient's or resident's support, without hardship to any 65252
others who may be dependent thereon, and no guardian has been 65253
appointed for such estate, the agent of the department shall 65254
petition the probate court of the proper county to appoint a 65255
guardian.65256

       Sec. 5121.10.  Upon the death of a person who is a patient or65257
resident, or has been a patient orformer resident, of any 65258
benevolent institution under the jurisdiction of the department of 65259
mental health or the department of mental retardation and 65260
developmental disabilities or state-operated community mental 65261
health services, or upon the death of a person responsible under65262
section 5121.06 of the Revised Code for the support of a patient65263
or resident, the department may waive the presentation of any65264
claim for support against the estate of such decedent, when in its 65265
judgment an otherwise dependent person will be directly benefited 65266
by the estate. Claims against an estate for support of a patient 65267
or resident are subject to section 1339.51 and Chapter 2117. of 65268
the Revised Code, and shall be treated, and may be barred, the 65269
same as the claims of other creditors of the estate, pursuant to 65270
that section or chapter.65271

       The department may accept from a guardian or trustee of a65272
patient or resident a contract agreeing to pay to the state from65273
the property of the guardian's or trustee's ward before or at the 65274
death of the ward a fixed annual amount for the support of the 65275
ward while the ward is a patient or resident, with interest at 65276
four per cent per annum. A copy of the contract shall be filed in 65277
the probate court of the proper county and duly entered as a part 65278
of the records concerning the ward.65279

       Sec. 5121.11.  The state shall bear the expense of the burial 65280
or cremation of an indigent patient or resident who dies in a 65281
state hospital for the mentally ill, or institution for the 65282
mentally retarded,operated by the department of mental 65283
retardation and developmental disabilities under section 5123.03 65284
of the Revised Code or in a state correctional institution, if the 65285
body is not claimed for interment or cremation at the expense of65286
friends or relatives, or is not delivered for anatomical purposes 65287
or for the study of embalming in accordance with section 1713.34 65288
of the Revised Code. The managing officer of the institution shall 65289
provide at the grave of the person or, if the person's cremated 65290
remains are buried, at the grave of the person's cremated remains, 65291
a metal, stone, or concrete marker on which shall be inscribed the 65292
name and age of the person and the date of death.65293

       Sec. 5121.12.  The support and maintenance of patients 65294
confined in state hospitals for the mentally ill or of residents 65295
confined in state institutions for the mentally retardedoperated 65296
by the department of mental retardation and developmental 65297
disabilities under section 5123.03 of the Revised Code, including 65298
those transferred to them from state correctional institutions, 65299
and also including persons under indictment or conviction for 65300
crime, shall be collected and paid in accordance with this chapter65301
sections 5121.01 to 5121.21 of the Revised Code.65302

       Sec. 5121.21. (A) If payment of any amount due the state65303
under the provisions of Chapter 5121. of the Revised Code is made65304
on account of a patient or resident by any liable relative, as65305
defined in division (A) of section 5121.06 of the Revised Code,65306
such relative may recover the following amounts from the following 65307
persons; provided, that in no event may such relative recover in 65308
total more than such relative has paid the state, and provided, 65309
that in no event is the person from whom recovery is sought 65310
obliged to pay at a rate of support higher than such person would 65311
have paid had the state proceeded directly against such person:65312

       (1)(A) Any liable person may recover from the patient or65313
resident, histhe resident's guardian, or from the executor or 65314
administrator of the patient's or resident's estate, the full 65315
amount of payment made by such liable relative.65316

       (2)(B) Any liable relative may recover from the patient's or65317
resident's husband or wife,spouse the full amount of payment made 65318
by such liable relative.65319

       (3)(C) A minor patient's or resident's mother may recover65320
from such minor patient's or resident's father the fullone-half 65321
of the amount of payment made by such mother.65322

       (4)(D) Any liable relative, other than the patient's or65323
resident's spouse and other than a minor patient's or resident's65324
parent, may recover from such of a patient's or resident's adult65325
sons and daughters as are liable under division (A)(4) of section65326
5121.06 of the Revised Code, the full amount of payment made by65327
such liable relative; provided, that there may be recovered from65328
each such son or daughter only such proportion of the total65329
payment as the figure one bears to the total number of such adult65330
sons and daughters.65331

       (5)(E) An adult patient's or resident's mother may recover65332
from an adult patient's or resident's father the fullone-half of 65333
the amount of payment made by such mother.65334

       Sec. 5121.30. As used in sections 5121.30 to 5121.56 of the 65335
Revised Code:65336

       (A) "Community mental health services client" or "client" 65337
means a person receiving state-operated community mental health 65338
services.65339

        (B) "Countable assets" means all of the following:65340

       (1) Cash;65341

       (2) Bank deposits;65342

       (3) Securities;65343

       (4) Individual retirement accounts;65344

       (5) Qualified employer plans, including 401(k) and Keogh 65345
plans;65346

       (6) Annuities;65347

       (7) Funds in a trust created under section 1339.51 of the 65348
Revised Code;65349

       (8) Investment property and income;65350

       (9) The cash surrender values of life insurance policies;65351

       (10) Assets acquired by gift, bequest, devise, or 65352
inheritance;65353

       (11) Any other asset determined by the department of mental 65354
health to be equivalent to the assets enumerated in this division.65355

       (C) "Federal poverty level" or "FPL" means the income level 65356
represented by the poverty guidelines as revised annually by the 65357
United States department of health and human services in 65358
accordance with section 673(2) of the "Omnibus Reconciliation Act 65359
of 1981," 95 Stat. 511, 42 U.S.C. 9902, as amended, for a family 65360
size equal to the size of the family of the person whoseincome is 65361
being determined.65362

       (D) "Federal poverty guidelines" means the poverty guidelines 65363
as revised annually by the United States department of health and 65364
human services in accordance with section 673(2) of the "Omnibus 65365
Budget Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902,65366
as amended, for a family size equal to the size of the family of 65367
the person whose income is being determined.65368

       (E) "Hospital" means an institution, hospital, or other place 65369
established, controlled, or supervised by the department of mental 65370
health under Chapter 5119. of the Revised Code.65371

       (F) "Liable relative" means all of the following:65372

       (1) A patient's spouse;65373

       (2) A patient's mother or father, or both, if the patient is 65374
under eighteen years of age;65375

       (3) A patient's guardian.65376

       (G) "Patient" means a person admitted to a hospital for 65377
inpatient care or treatment, including a person transferred to a 65378
hospital from a state correctional institution or a person under 65379
indictment or conviction who has been transferred to a hospital.65380

       Sec. 5121.31. All patients shall be maintained at the expense 65381
of the state. The traveling and incidental expenses in conveying 65382
them to a hospital shall be paid by the county of commitment. On 65383
admission, patients shall be neatly and comfortably clothed. 65384
Thereafter, the expense of necessary clothing shall be borne by 65385
the responsible relatives or guardian if they are financially 65386
able. If not furnished, the state shall bear the expense. Any 65387
required traveling expense after admission to the hospital shall 65388
be borne by the state if the responsible relatives or guardian is 65389
unable to do so.65390

       Sec. 5121.32.  On an annual basis, the department of mental 65391
health shall determine both of the following using generally 65392
accepted governmental accounting principles:65393

       (A) The applicable per diem charge for each hospital operated 65394
by the department; 65395

       (B) The ancillary per diem rate for each hospital operated by 65396
the department.65397

       In determining a hospital's applicable per diem charge and 65398
ancillary per diem rate, the department shall consider the average 65399
actual per diem cost of maintaining and treating a patient at the 65400
hospital or, at the department's discretion, the average actual 65401
per diem cost of maintaining and treating a patient in a unit of 65402
the hospital.65403

       Sec. 5121.33.  Except as provided in sections 5121.35, 65404
5121.43, 5121.46, 5121.47, 5121.49, and 5121.52 of the Revised 65405
Code, the department of mental health shall, for each billing 65406
cycle, charge a patient, patient's estate, or liable relative an 65407
amount equal to the sum of the following:65408

       (A) The applicable per diem charge multiplied by the number 65409
of days the patient was admitted to the hospital;65410

       (B) An amount that was previously billed but not paid.65411

       Sec. 5121.34.  (A) A patient, patient's estate, and patient's 65412
liable relatives shall be jointly and severally liable for amounts 65413
charged by the department of mental health in accordance with 65414
section 5121.33 or 5121.35 of the Revised Code. In no case shall 65415
any of the foregoing persons be liable for more than one hundred 65416
per cent of the full sum charged under section 5121.33 of the 65417
Revised Code.65418

       (B) Collections of support payments shall be made by the 65419
department and, subject to meeting prior requirements for payment 65420
and crediting of such collections and other available receipts, in 65421
accordance with the bond proceedings applicable to obligations 65422
issued pursuant to section 154.20 of the Revised Code. The 65423
collections and other available receipts designated by the 65424
director of mental health for deposit in the special accounts, 65425
together with insurance contract payments provided for in section 65426
5121.43 of the Revised Code, shall be remitted to the treasurer of 65427
state for deposit in the state treasury to the credit of the 65428
mental health operating fund, which is hereby created, to be used 65429
for the general purposes of the department. The department shall 65430
make refunds of overpayment of support charges from the mental 65431
health operating fund.65432

       Sec. 5121.35.  The department of mental health shall charge a 65433
patient, patient's estate, or liable relative an amount discounted 65434
from the amount the department charges under section 5121.33 of 65435
the Revised Code if the department determines through the 65436
application process described in section 5121.36 of the Revised 65437
Code or through the financial assessment process described in 65438
section 5121.37 of the Revised Code that the patient, estate, or 65439
relative is eligible for a discount.65440

       Sec. 5121.36. (A) A patient, patient's estate, or liable 65441
relative may apply for a discount by completing an application 65442
form prescribed by the director of mental health. The department 65443
of mental health may require a patient, estate, or relative to 65444
furnish any of the following with an application form:65445

       (1) A copy of the patient's, estate's, or liable relative's 65446
federal income tax return for the year preceding the date of 65447
application or, if that is not yet available, the preceding year;65448

       (2) A copy of the patient's, estate's, or liable relative's 65449
employee tax withholding return (form W-2) for the year preceding 65450
the date of application;65451

       (3) Any other relevant documents prescribed by the director 65452
of mental health.65453

       (B) To be considered, an application must be submitted to the 65454
department not later than ninety days after the date the patient 65455
is admitted to a hospital.65456

       (C) From the information provided by a patient, estate, or 65457
relative, the department shall determine whether the department 65458
will charge the person a discounted amount in accordance with 65459
sections 5121.40 and 5121.41 of the Revised Code. In making this 65460
determination, the department shall consider whether the patient 65461
is covered by an insurance policy or other contract that provides 65462
for payment of expenses and treatment for mental illness. If the 65463
department determines that the patient has coverage, the 65464
department shall require payment in accordance with section 65465
5121.43 of the Revised Code.65466

       (D) The department shall notify the patient, executor or 65467
administrator of the patient's estate, or liable relative who 65468
submitted the application form in writing regarding whether that 65469
person will be charged a discounted amount and the per diem rate 65470
to be charged.65471

       (E) In accordance with section 5121.42 of the Revised Code, 65472
the department may, at any time, modify an amount charged or 65473
change the per diem rate to be charged if the department learns of 65474
countable assets or income that was not previously disclosed or 65475
was acquired after the application form was submitted. Within a 65476
reasonable time, the department shall notify in writing any person 65477
affected by a modification or change.65478

       Sec. 5121.37. After a patient's admittance to a hospital, the 65479
department of mental health shall conduct a financial assessment 65480
to determine whether the patient, patient's estate, or liable 65481
relative will be charged an amount discounted from the amount the 65482
department charges under section 5121.33 of the Revised Code. The 65483
department shall make the determination in accordance with 65484
sections 5121.40 and 5121.41 of the Revised Code.65485

       If a discounted rate is to be charged, the department shall 65486
notify the person whose financial condition was assessed. The 65487
notice shall specify the per diem rate to be charged.65488

       In accordance with section 5121.42 of the Revised Code, the 65489
department may, at any time, modify an amount charged or change 65490
the per diem rate to be charged if the department learns of 65491
countable assets or income that was not previously disclosed or 65492
was acquired after the assessment was conducted. Within a 65493
reasonable time, the department shall notify in writing any person 65494
affected by a modification or change.65495

       Sec. 5121.38.  The department of mental health may subpoena 65496
witnesses, take testimony under oath, and examine any public 65497
records relating to the income and other assets of a patient or of 65498
a relative liable for such patient's support. All information, 65499
conclusions, and recommendations shall be submitted to the 65500
department by the investigating agent of the department.65501

       Sec. 5121.40. (A) A patient, patient's estate, or liable 65502
relative may be eligible to be charged an amount discounted from 65503
the amount the department of mental health charges under section 65504
5121.33 of the Revised Code if the patient, estate, or relative 65505
has countable assets with a total value that is not greater than 65506
an amount equal to fifty per cent of the difference between the 65507
following:65508

        (1) The gross annual income that corresponds with a family 65509
size of two persons at one hundred per cent of the federal poverty 65510
level for the state;65511

        (2) The gross annual income that corresponds with a family 65512
size of one person at one hundred per cent of the federal poverty 65513
level for the state. For purposes of determining family size, the 65514
patient is one dependent. One additional dependent shall be 65515
included for each of the following circumstances and persons:65516

       (a) The patient or liable relative is legally blind or deaf.65517

       (b) The patient or liable relative is of sixty-five years of 65518
age or older.65519

       (c) Each child under eighteen years of age for which the 65520
patient or liable relative has legal custody;65521

       (d) The patient's or liable relative's spouse.65522

       (B) A patient, estate, or relative may, not later than ninety 65523
days after the patient's admission to a hospital, surrender the 65524
value of countable assets sufficient to reduce countable assets to 65525
not more than the limit described in division (A) of this section.65526

       Sec. 5121.41.  (A) If the assets of a patient, patient's 65527
estate, or liable relative do not exceed the countable asset limit 65528
in section 5121.40 of the Revised Code and the annual income of 65529
the patient, estate, or relative does not exceed four hundred per 65530
cent of the federal poverty level, the patient, estate, or 65531
relative shall be charged an amount discounted from the amount the 65532
department charges under section 5121.33 of the Revised Code for 65533
the first thirty days the patient is admitted as an inpatient in a 65534
hospital and for which the patient is liable for the cost of care. 65535
The amount of the discount shall be computed according to the 65536
following schedule:65537

Annual Gross Income
65538

Expressed as a Percentage of FPL
65539

Inpatient 0 - 176 - 200 - 250 - 300 - 350 - 65540
Days at a 175 199 249 299 349 400 65541
Hospital 65542

Percentage discount from charged amount
65543

1 - 14 100 90 70 50 30 10 65544
15 - 30 100 95 75 55 35 15 65545

       (B) A patient, estate, or relative who is charged a 65546
discounted amount for the first thirty days the patient is 65547
admitted as an inpatient and who has an annual income not greater 65548
than one hundred seventy-five per cent of the federal poverty 65549
level shall not be charged for the days the patient is admitted 65550
beyond the thirtieth day. 65551

       (C) A patient, estate, or relative who is charged a 65552
discounted amount for the first thirty days the patient is 65553
admitted as an inpatient and who has an annual income greater than 65554
one hundred seventy-five per cent of the federal poverty level 65555
shall be charged an amount equal to the sum of the following for 65556
the days the patient is admitted beyond the thirtieth day:65557

       (1) The ancillary per diem rate multiplied by the number of 65558
days the patient was admitted to the hospital;65559

       (2) An amount that was previously charged but not paid.65560

       Sec. 5121.42. (A) Except as provided in division (B) of this 65561
section, a patient, patient's estate, or liable relative shall 65562
cease to be eligible for a discount under sections 5121.36 or 65563
5121.37 of the Revised Code on accumulation of countable assets in 65564
excess of an amount equal to fifty per cent of the difference 65565
between the following:65566

        (1) The gross annual income that corresponds with a family 65567
size of two persons at one hundred per cent of the federal poverty 65568
level for the state;65569

        (2) The gross annual income that corresponds with a family 65570
size of one person at one hundred per cent of the federal poverty 65571
level for the state.65572

       (B) Money needed to meet the patient's needs and burial fund 65573
as determined by a needs assessment conducted by the department of 65574
mental health pursuant to rules adopted under section 5119.01 of 65575
the Revised Code shall be excluded from any determination the 65576
department makes under division (A) of this section.65577

       Sec. 5121.43. If a patient is covered by an insurance policy 65578
or other contract that provides for payment of expenses for care 65579
and treatment for mental illness at or from a hospital under the 65580
jurisdiction of the department of mental health, sections 5121.33 65581
to 5121.55 of the Revised Code are inapplicable to the extent that 65582
the policy or contract is in force. Any insurance carrier or other 65583
third party payor providing coverage for such care and treatment 65584
shall pay for the patient's support obligation in amounts equal to 65585
the lesser of amounts charged by the department under section 65586
5121.33 of the Revised Code or the benefits provided under the 65587
policy or other contract. Whether or not an insured, owner of, or 65588
other person having an interest in such policy or other contract 65589
is liable for support payments, the insured, policy owner, or 65590
other person shall assign payment directly to the department of 65591
all assignable benefits under the policy or other contract and 65592
shall pay to the department, within ten days of receipt, all 65593
insurance or other benefits received as reimbursement or payment 65594
for expenses incurred by the patient or for any other reason. If 65595
the insured, policy owner, or other person refuses to assign 65596
payment to the department or refuses to pay received 65597
reimbursements or payments to the department within ten days of 65598
receipt, the total liability of the insured, policy owner, or 65599
other person for the services is an amount equal to the per diem 65600
charge for the hospital where the patient was admitted multiplied 65601
by the number of days the patient was admitted.65602

       In no event shall this total liability exceed the 65603
department's actual cost of providing care and treatment to a 65604
patient. The department may disqualify patients and liable 65605
relatives who have retained third party funds from future 65606
discounts. The department may request that the attorney general 65607
petition a court of competent jurisdiction to compel the insured, 65608
owner of, or other person having an interest in the policy or 65609
contract to comply with the assignment requirements in this 65610
section.65611

       Sec. 5121.44. The department of mental health may enter into 65612
an extended payment agreement with a patient, patient's estate, or 65613
liable relative who has notified the department that the patient, 65614
estate, or relative cannot reasonably pay an amount the department 65615
has charged. In no case shall the department take a security 65616
interest, mortgage, or lien against the principal family residence 65617
of a patient or liable relative.65618

       Sec. 5121.45. (A) For purposes of this section, "delinquent 65619
payment" means an amount owed by a patient, patient's estate, or 65620
liable relative to the department of mental health for which the 65621
person has failed to do either of the following not later than 65622
ninety days after the service associated with the charge was 65623
incurred:65624

       (1) Make payment in full;65625

       (2) Make a payment in accordance with the terms of an 65626
agreement entered into under section 5121.44 of the Revised Code.65627

       (B) An action to enforce the collection of a delinquent 65628
payment shall be commenced not later than six years after the 65629
later of the following:65630

       (1) The last date the department received money to satisfy 65631
the delinquent payment;65632

       (2) The date the charge was due.65633

       (C) In all actions to enforce the collection of delinquent 65634
payments, a court of record shall receive into evidence the proof 65635
of claim document made by the state together with all debts and 65636
credits. The proof of claim document shall be prima-facie evidence 65637
of the facts stated in the document.65638

       Sec. 5121.46. The department of mental health shall not 65639
charge a liable relative under sections 5121.33 and 5121.35 of the 65640
Revised Code who has done either of the following:65641

       (A) Paid all amounts charged by the department for the care 65642
and treatment of a particular patient for fifteen consecutive 65643
years;65644

       (B) Paid amounts charged by the department for the care and 65645
treatment of more than one patient for a total of fifteen 65646
consecutive years.65647

       Sec. 5121.47. Irrespective of the number of patients for 65648
which the department of mental health may charge a liable relative 65649
under sections 5121.33 or 5121.35 of the Revised Code, the 65650
department shall not charge a liable relative or group of liable 65651
relatives who are members of the same family unit for the support 65652
of more than one patient during the same period of time.65653

       Sec. 5121.48. The department shall accept voluntary payments 65654
from a patient, patient's estate, or liable relative in excess of 65655
a discounted amount charged in accordance with section 5121.35 of 65656
the Revised Code.65657

       Sec. 5121.49. (A) Any person who has been charged under 65658
section 5121.33 or 5121.35 of the Revised Code may petition the 65659
department of mental health to do the following:65660

       (1) Release the person from a charge;65661

       (2) Modify or cancel a charge.65662

       (B) The department shall respond to a petition in writing and 65663
inform the petitioner of whether a release, modification, or 65664
cancellation has been approved.65665

       Sec. 5121.50. When a patient is committed to a hospital 65666
pursuant to judicial proceedings, the judge ordering the 65667
commitment shall:65668

       (A) Make a reliable report on the financial condition of the 65669
patient and of each liable relative, as provided in rules adopted 65670
by the director of mental health;65671

       (B) Certify the report required under division (A) of this 65672
section to the managing officer of the hospital. The managing 65673
officer shall thereupon enter in the managing officer's records 65674
the name and address of any guardian appointed and of any relative 65675
liable for the patient's support.65676

       Sec. 5121.51.  In case the estate of any patient in a65677
hospital is sufficient for the patient's support and no guardian 65678
has been appointed for such estate, the agent of the department of 65679
mental health shall petition the probate court of the proper 65680
county to appoint a guardian.65681

       Sec. 5121.52.  On the death of a person who is a patient, or 65682
has been a patient in a hospital, or on the death of a person 65683
responsible under section 5121.34 of the Revised Code for the 65684
support of a patient, the department of mental health may waive 65685
the presentation of any claim for support against the estate of 65686
such decedent, when in its judgment an otherwise dependent person 65687
will be directly benefited by the estate. Claims against an estate 65688
for support of a patient are subject to section 1339.51 and 65689
Chapter 2117. of the Revised Code, and shall be treated, and may 65690
be barred, the same as the claims of other creditors of the 65691
estate, pursuant to that section or chapter.65692

       The department of mental health may accept from a guardian or 65693
trustee of a patient a contract agreeing to pay to the state from65694
the property of the guardian's or trustee's ward before or at the 65695
death of the ward a fixed annual amount for the support of the 65696
ward while the ward is a patient, with interest at four per cent 65697
per annum. A copy of the contract shall be filed in the probate 65698
court of the proper county and duly entered as a part of the 65699
records concerning the ward.65700

       Sec. 5121.53.  The state shall bear the expense of the burial 65701
or cremation of an indigent patient who dies in a hospital if the 65702
body is not claimed for interment or cremation at the expense of65703
friends or relatives, or is not delivered for anatomical purposes 65704
or for the study of embalming in accordance with section 1713.34 65705
of the Revised Code. The managing officer of the hospital shall 65706
provide at the grave of the patient or, if the patient's cremated 65707
remains are buried, at the grave of the patient's cremated 65708
remains, a metal, stone, or concrete marker on which shall be 65709
inscribed the name and age of the patient and the date of death.65710

       Sec. 5121.54.  If payment of any amount due the state under 65711
the provisions of this chapter is made on account of a patient by 65712
any liable relative, as defined in section 5121.30 of the Revised 65713
Code, the relative may recover from the patient, the patient's 65714
guardian, or the executor or administrator of the patient's 65715
estate, the full amount of payment made by the liable relative; 65716
provided, that in no event may a relative recover in total more 65717
than the relative has paid the state, and provided, that in no 65718
event is the person from whom recovery is sought obliged to pay at 65719
a rate of support higher than the person would have paid had the 65720
state proceeded directly against that person.65721

       Sec. 5121.55. The cost for support of a client of 65722
state-operated community mental health services is an amount 65723
determined using guidelines the department of mental health shall 65724
issue. The guidelines shall be based on cost findings and 65725
rate-settings applicable to such services.65726

       Sec. 5121.56. The support and maintenance of patients 65727
confined in state hospitals for the mentally ill, including 65728
persons transferred to them from state correctional institutions, 65729
and also including persons under indictment or conviction for 65730
crime, shall be collected and paid in accordance with sections 65731
5121.30 to 5121.55 of the Revised Code.65732

       Sec. 5122.03.  A patient admitted under section 5122.02 of65733
the Revised Code who requests his release in writing, or whose65734
release is requested in writing by histhe patient's counsel,65735
legal guardian, parent, spouse, or adult next of kin shall be 65736
released forthwith, except that when:65737

       (A) The patient was admitted on histhe patient's own65738
application and the request for release is made by a person other 65739
than the patient, release may be conditional upon the agreement of 65740
the patient; or65741

       (B) The chief clinical officer of the hospital, within three 65742
court days from the receipt of the request for release, files or 65743
causes to be filed with the court of the county where the patient 65744
is hospitalized or of the county where the patient is a resident, 65745
an affidavit under section 5122.11 of the Revised Code. Release 65746
may be postponed until the hearing held under section 5122.141 of 65747
the Revised Code. A telephone communication within three court 65748
days from the receipt of the request for release from the chief 65749
clinical officer to the court, indicating that the required 65750
affidavit has been mailed, is sufficient compliance with the time 65751
limit for filing such affidavit.65752

       Unless the patient is released within three days from the65753
receipt of the request by the chief clinical officer, the request65754
shall serve as a request for an initial hearing under section65755
5122.141 of the Revised Code. If the court finds that the patient 65756
is a mentally ill person subject to hospitalization by court 65757
order, all provisions of this chapter with respect to involuntary 65758
hospitalization apply to such person.65759

       Judicial proceedings for hospitalization shall not be65760
commenced with respect to a voluntary patient except pursuant to65761
this section.65762

       Sections 5121.01 to 5121.105121.30 to 5121.56 of the Revised 65763
Code apply to persons received in a hospital operated by the 65764
department of mental health on a voluntary application.65765

       The chief clinical officer of the hospital shall provide65766
reasonable means and arrangements for informing patients of their65767
rights to release as provided in this section and for assisting65768
them in making and presenting requests for release or for a65769
hearing under section 5122.141 of the Revised Code.65770

       Before a patient is released from a public hospital, the65771
chief clinical officer shall, when possible, notify the board of65772
the patient's county of residence of the patient's pending release 65773
after hethe chief clinical officer has informed the patient that 65774
the board will be so notified.65775

       Sec. 5122.31. (A) All certificates, applications, records, 65776
and reports made for the purpose of this chapter and sections65777
2945.38, 2945.39, 2945.40, 2945.401, and 2945.402 of the Revised 65778
Code, other than court journal entries or court docket entries, 65779
and directly or indirectly identifying a patient or former patient 65780
or person whose hospitalization has been sought under this 65781
chapter, shall be kept confidential and shall not be disclosed by 65782
any person except:65783

       (A)(1) If the person identified, or the person's legal65784
guardian, if any, or if the person is a minor, the person's parent65785
or legal guardian, consents, and if the disclosure is in the best65786
interests of the person, as may be determined by the court for65787
judicial records and by the chief clinical officer for medical65788
records;65789

       (B)(2) When disclosure is provided for in this chapter or65790
section 5123.60 of the Revised Code;65791

       (C)(3) That hospitals, boards of alcohol, drug addiction, and65792
mental health services, and community mental health agencies may65793
release necessary medical information to insurers and other65794
third-party payers, including government entities responsible for65795
processing and authorizing payment, to obtain payment for goods65796
and services furnished to the patient;65797

       (D)(4) Pursuant to a court order signed by a judge;65798

       (E)(5) That a patient shall be granted access to the 65799
patient's own psychiatric and medical records, unless access 65800
specifically is restricted in a patient's treatment plan for clear 65801
treatment reasons;65802

       (F)(6) That hospitals and other institutions and facilities65803
within the department of mental health may exchange psychiatric65804
records and other pertinent information with other hospitals,65805
institutions, and facilities of the department, and with community65806
mental health agencies and boards of alcohol, drug addiction, and65807
mental health services with which the department has a current65808
agreement for patient care or services. Records and information65809
that may be released pursuant to this division shall be limited to65810
medication history, physical health status and history, financial65811
status, summary of course of treatment in the hospital, summary of65812
treatment needs, and a discharge summary, if any.65813

       (G)(7) That a patient's family member who is involved in the65814
provision, planning, and monitoring of services to the patient may65815
receive medication information, a summary of the patient's65816
diagnosis and prognosis, and a list of the services and personnel65817
available to assist the patient and the patient's family, if the65818
patient's treating physician determines that the disclosure would65819
be in the best interests of the patient. No such disclosure shall65820
be made unless the patient is notified first and receives the65821
information and does not object to the disclosure.65822

       (H)(8) That community mental health agencies may exchange65823
psychiatric records and certain other information with the board65824
of alcohol, drug addiction, and mental health services and other65825
agencies in order to provide services to a person involuntarily65826
committed to a board. Release of records under this division shall 65827
be limited to medication history, physical health status and65828
history, financial status, summary of course of treatment, summary65829
of treatment needs, and discharge summary, if any.65830

       (I)(9) That information may be disclosed to the executor or65831
the administrator of an estate of a deceased patient when the65832
information is necessary to administer the estate;65833

       (J)(10) That records in the possession of the Ohio historical65834
society may be released to the closest living relative of a65835
deceased patient upon request of that relative;65836

       (K)(11) That information may be disclosed to staff members of65837
the appropriate board or to staff members designated by the65838
director of mental health for the purpose of evaluating the65839
quality, effectiveness, and efficiency of services and determining65840
if the services meet minimum standards. Information obtained65841
during such evaluations shall not be retained with the name of any65842
patient.65843

       (L)(12) That records pertaining to the patient's diagnosis,65844
course of treatment, treatment needs, and prognosis shall be65845
disclosed and released to the appropriate prosecuting attorney if65846
the patient was committed pursuant to section 2945.38, 2945.39,65847
2945.40, 2945.401, or 2945.402 of the Revised Code, or to the65848
attorney designated by the board for proceedings pursuant to65849
involuntary commitment under this chapter.65850

       (M)(13) That the department of mental health may exchange65851
psychiatric hospitalization records, other mental health treatment65852
records, and other pertinent information with the department of65853
rehabilitation and correction to ensure continuity of care for65854
inmates who are receiving mental health services in an institution65855
of the department of rehabilitation and correction. The department65856
shall not disclose those records unless the inmate is notified,65857
receives the information, and does not object to the disclosure. 65858
The release of records under this division is limited to records65859
regarding an inmate's medication history, physical health status 65860
and history, summary of course of treatment, summary of treatment 65861
needs, and a discharge summary, if any.65862

       (N)(14) That a community mental health agency that ceases to65863
operate may transfer to either a community mental health agency65864
that assumes its caseload or to the board of alcohol, drug65865
addiction, and mental health services of the service district in65866
which the patient resided at the time services were most recently65867
provided any treatment records that have not been transferred65868
elsewhere at the patient's request.65869

       (O)(B) Before records are disclosed pursuant to divisions 65870
(C)(A)(3), (F)(6), and (H)(8) of this section, the custodian of 65871
the records shall attempt to obtain the patient's consent for the 65872
disclosure. No person shall reveal the contents of a medical 65873
record of a patient except as authorized by law.65874

       (C) The managing officer of a hospital who releases necessary 65875
medical information under division (A)(3) of this section to allow 65876
an insurance carrier or other third party payor to comply with 65877
section 5121.43 of the Revised Code shall neither be subject to 65878
criminal nor civil liability.65879

       Sec. 5123.01.  As used in this chapter:65880

       (A) "Chief medical officer" means the licensed physician65881
appointed by the managing officer of an institution for the65882
mentally retarded with the approval of the director of mental65883
retardation and developmental disabilities to provide medical65884
treatment for residents of the institution.65885

       (B) "Chief program director" means a person with special65886
training and experience in the diagnosis and management of the65887
mentally retarded, certified according to division (C) of this65888
section in at least one of the designated fields, and appointed by65889
the managing officer of an institution for the mentally retarded65890
with the approval of the director to provide habilitation and care65891
for residents of the institution.65892

       (C) "Comprehensive evaluation" means a study, including a65893
sequence of observations and examinations, of a person leading to65894
conclusions and recommendations formulated jointly, with65895
dissenting opinions if any, by a group of persons with special65896
training and experience in the diagnosis and management of persons65897
with mental retardation or a developmental disability, which group65898
shall include individuals who are professionally qualified in the65899
fields of medicine, psychology, and social work, together with65900
such other specialists as the individual case may require.65901

       (D) "Education" means the process of formal training and65902
instruction to facilitate the intellectual and emotional65903
development of residents.65904

       (E) "Habilitation" means the process by which the staff of65905
the institution assists the resident in acquiring and maintaining65906
those life skills that enable the resident to cope more65907
effectively with the demands of the resident's own person and of65908
the resident's environment and in raising the level of the65909
resident's physical, mental, social, and vocational efficiency.65910
Habilitation includes but is not limited to programs of formal,65911
structured education and training.65912

       (F) "Habilitation center services" means services provided by65913
a habilitation center certified by the department of mental65914
retardation and developmental disabilities under section 5123.04165915
of the Revised Code and covered by the medicaid program pursuant65916
to rules adopted under section 5111.041 of the Revised Code.65917

       (G) "Health officer" means any public health physician,65918
public health nurse, or other person authorized or designated by a65919
city or general health district.65920

       (H)(G) "Home and community-based services" means65921
medicaid-funded home and community-based services specified in 65922
division (B)(1) of section 5111.87 of the Revised Code provided 65923
under the medicaid waiver components the department of mental 65924
retardation and developmental disabilities administers pursuant to 65925
section 5111.871 of the Revised Code.65926

       (I)(H) "Indigent person" means a person who is unable,65927
without substantial financial hardship, to provide for the payment65928
of an attorney and for other necessary expenses of legal65929
representation, including expert testimony.65930

       (J)(I) "Institution" means a public or private facility, or a65931
part of a public or private facility, that is licensed by the65932
appropriate state department and is equipped to provide65933
residential habilitation, care, and treatment for the mentally65934
retarded.65935

       (K)(J) "Licensed physician" means a person who holds a valid65936
certificate issued under Chapter 4731. of the Revised Code65937
authorizing the person to practice medicine and surgery or65938
osteopathic medicine and surgery, or a medical officer of the65939
government of the United States while in the performance of the65940
officer's official duties.65941

       (L)(K) "Managing officer" means a person who is appointed by65942
the director of mental retardation and developmental disabilities65943
to be in executive control of an institution for the mentally65944
retarded under the jurisdiction of the department.65945

       (M)(L) "Medicaid" has the same meaning as in section 5111.0165946
of the Revised Code.65947

       (N)(M) "Medicaid case management services" means case65948
management services provided to an individual with mental65949
retardation or other developmental disability that the state65950
medicaid plan requires.65951

       (O)(N) "Mentally retarded person" means a person having65952
significantly subaverage general intellectual functioning existing65953
concurrently with deficiencies in adaptive behavior, manifested65954
during the developmental period.65955

       (P)(O) "Mentally retarded person subject to65956
institutionalization by court order" means a person eighteen years65957
of age or older who is at least moderately mentally retarded and65958
in relation to whom, because of the person's retardation, either65959
of the following conditions exist:65960

       (1) The person represents a very substantial risk of physical 65961
impairment or injury to self as manifested by evidence that the 65962
person is unable to provide for and is not providing for the 65963
person's most basic physical needs and that provision for those65964
needs is not available in the community;65965

       (2) The person needs and is susceptible to significant65966
habilitation in an institution.65967

       (Q)(P) "A person who is at least moderately mentally65968
retarded" means a person who is found, following a comprehensive65969
evaluation, to be impaired in adaptive behavior to a moderate65970
degree and to be functioning at the moderate level of intellectual65971
functioning in accordance with standard measurements as recorded65972
in the most current revision of the manual of terminology and65973
classification in mental retardation published by the American65974
association on mental retardation.65975

       (R)(Q) As used in this division, "substantial functional65976
limitation," "developmental delay," and "established risk" have65977
the meanings established pursuant to section 5123.011 of the65978
Revised Code.65979

       "Developmental disability" means a severe, chronic disability65980
that is characterized by all of the following:65981

       (1) It is attributable to a mental or physical impairment or65982
a combination of mental and physical impairments, other than a65983
mental or physical impairment solely caused by mental illness as65984
defined in division (A) of section 5122.01 of the Revised Code.65985

       (2) It is manifested before age twenty-two.65986

       (3) It is likely to continue indefinitely.65987

       (4) It results in one of the following:65988

       (a) In the case of a person under three years of age, at65989
least one developmental delay or an established risk;65990

       (b) In the case of a person at least three years of age but65991
under six years of age, at least two developmental delays or an65992
established risk;65993

       (c) In the case of a person six years of age or older, a65994
substantial functional limitation in at least three of the65995
following areas of major life activity, as appropriate for the65996
person's age: self-care, receptive and expressive language,65997
learning, mobility, self-direction, capacity for independent65998
living, and, if the person is at least sixteen years of age,65999
capacity for economic self-sufficiency.66000

       (5) It causes the person to need a combination and sequence66001
of special, interdisciplinary, or other type of care, treatment,66002
or provision of services for an extended period of time that is66003
individually planned and coordinated for the person.66004

       (S)(R) "Developmentally disabled person" means a person with66005
a developmental disability.66006

       (T)(S) "State institution" means an institution that is66007
tax-supported and under the jurisdiction of the department.66008

       (U)(T) "Residence" and "legal residence" have the same66009
meaning as "legal settlement," which is acquired by residing in66010
Ohio for a period of one year without receiving general assistance66011
prior to July 17, 1995, under former Chapter 5113. of the Revised66012
Code, financial assistance under Chapter 5115. of the Revised66013
Code, or assistance from a private agency that maintains records66014
of assistance given. A person having a legal settlement in the66015
state shall be considered as having legal settlement in the66016
assistance area in which the person resides. No adult person66017
coming into this state and having a spouse or minor children66018
residing in another state shall obtain a legal settlement in this66019
state as long as the spouse or minor children are receiving public66020
assistance, care, or support at the expense of the other state or66021
its subdivisions. For the purpose of determining the legal66022
settlement of a person who is living in a public or private66023
institution or in a home subject to licensing by the department of66024
job and family services, the department of mental health, or the66025
department of mental retardation and developmental disabilities,66026
the residence of the person shall be considered as though the66027
person were residing in the county in which the person was living66028
prior to the person's entrance into the institution or home.66029
Settlement once acquired shall continue until a person has been66030
continuously absent from Ohio for a period of one year or has66031
acquired a legal residence in another state. A woman who marries a 66032
man with legal settlement in any county immediately acquires the66033
settlement of her husband. The legal settlement of a minor is that 66034
of the parents, surviving parent, sole parent, parent who is66035
designated the residential parent and legal custodian by a court,66036
other adult having permanent custody awarded by a court, or66037
guardian of the person of the minor, provided that:66038

       (1) A minor female who marries shall be considered to have66039
the legal settlement of her husband and, in the case of death of66040
her husband or divorce, she shall not thereby lose her legal66041
settlement obtained by the marriage.66042

       (2) A minor male who marries, establishes a home, and who has 66043
resided in this state for one year without receiving general66044
assistance prior to July 17, 1995, under former Chapter 5113. of66045
the Revised Code, financial assistance under Chapter 5115. of the66046
Revised Code, or assistance from a private agency that maintains66047
records of assistance given shall be considered to have obtained a66048
legal settlement in this state.66049

       (3) The legal settlement of a child under eighteen years of66050
age who is in the care or custody of a public or private child66051
caring agency shall not change if the legal settlement of the66052
parent changes until after the child has been in the home of the66053
parent for a period of one year.66054

       No person, adult or minor, may establish a legal settlement66055
in this state for the purpose of gaining admission to any state66056
institution.66057

       (V)(U)(1) "Resident" means, subject to division (R)(2) of66058
this section, a person who is admitted either voluntarily or66059
involuntarily to an institution or other facility pursuant to66060
section 2945.39, 2945.40, 2945.401, or 2945.402 of the Revised66061
Code subsequent to a finding of not guilty by reason of insanity66062
or incompetence to stand trial or under this chapter who is under66063
observation or receiving habilitation and care in an institution.66064

       (2) "Resident" does not include a person admitted to an66065
institution or other facility under section 2945.39, 2945.40,66066
2945.401, or 2945.402 of the Revised Code to the extent that the66067
reference in this chapter to resident, or the context in which the66068
reference occurs, is in conflict with any provision of sections66069
2945.37 to 2945.402 of the Revised Code.66070

       (W)(V) "Respondent" means the person whose detention,66071
commitment, or continued commitment is being sought in any66072
proceeding under this chapter.66073

       (X)(W) "Working day" and "court day" mean Monday, Tuesday,66074
Wednesday, Thursday, and Friday, except when such day is a legal66075
holiday.66076

       (Y)(X) "Prosecutor" means the prosecuting attorney, village66077
solicitor, city director of law, or similar chief legal officer66078
who prosecuted a criminal case in which a person was found not66079
guilty by reason of insanity, who would have had the authority to66080
prosecute a criminal case against a person if the person had not66081
been found incompetent to stand trial, or who prosecuted a case in66082
which a person was found guilty.66083

       (Z)(Y) "Court" means the probate division of the court of66084
common pleas.66085

       Sec. 5123.045. (A) No person or government entity shall66086
receive payment for providing home and community-based services66087
unless the person or government entity is one of the following:66088

       (1)(A) Certified under this section 5123.16 of the Revised 66089
Code;66090

       (2)Certified as a supported living provider under section66091
5126.431 of the Revised Code;66092

       (3)(B) Licensed as a residential facility under section 66093
5123.19 of the Revised Code. Division (A)(3) of this section does 66094
not apply to an intermediate care facility for the mentally 66095
retarded as defined in section 5111.20 of the Revised Code.66096

       (B) The department of mental retardation and developmental66097
disabilities shall do all of the following in accordance with66098
Chapter 119. of the Revised Code:66099

       (1) Certify a person or government entity to provide home and 66100
community-based services if the person or government entity66101
satisfies the requirements for certification established by rules66102
adopted under division (C) of this section;66103

       (2) Revoke a certificate when required to do so by rules66104
adopted under division (C) of this section;66105

       (3) Hold hearings when there is a dispute between the66106
department and a person or government entity concerning actions66107
the department takes or does not take under division (B)(1) or (2)66108
of this section.66109

       (C) The director of mental retardation and developmental66110
disabilities shall adopt rules in accordance with Chapter 119. of66111
the Revised Code establishing certification requirements and66112
procedures for a person or government entity that seeks to provide66113
home and community-based services and is not certified as a66114
supported living provider under section 5126.431 of the Revised66115
Code or licensed as a residential facility under section 5123.1966116
of the Revised Code. The rules shall specify the program areas for 66117
which certification is required and include procedures for all of 66118
the following:66119

       (1) Ensuring that providers comply with section 5126.28 or66120
5126.281 of the Revised Code, as appropriate;66121

       (2) Evaluating the services provided to ensure that they are66122
provided in a quality manner advantageous to the individual66123
receiving the services. The procedures shall require that all of66124
the following be considered as part of an evaluation:66125

       (a) The provider's experience and financial responsibility;66126

       (b) The provider's ability to comply with standards for the66127
home and community-based services that the provider provides;66128

       (c) The provider's ability to meet the needs of the66129
individuals served;66130

       (d) Any other factor the director considers relevant.66131

       (3) Determining when to revoke a provider's certificate. The66132
reasons for which a certificate may be revoked may include good66133
cause, including misfeasance, malfeasance, nonfeasance, confirmed66134
abuse or neglect, financial irresponsibility, or other conduct the66135
director determines is injurious to individuals being served.66136

       (D) The records of an evaluation conducted in accordance with 66137
rules adopted under division (C)(2) of this section are public 66138
records for purposes of section 149.43 of the Revised Code and 66139
shall be made available on request of any person, including66140
individuals being served, individuals seeking home and66141
community-based services, and county boards of mental retardation66142
and developmental disabilities.66143

       Sec. 5123.046. The department of mental retardation and66144
developmental disabilities shall review each component of the66145
three-calendar year plan it receives from a county board of mental66146
retardation and developmental disabilities under section 5126.05466147
of the Revised Code and, in consultation with the department of66148
job and family services and office of budget and management,66149
approve each component that includes all the information and66150
conditions specified in that section. The fourth component of the66151
plan shall be approved or disapproved not later than forty-five66152
days after the fourth component is submitted to the department66153
under division (B)(3) of section 5126.054 of the Revised Code. If66154
the department approves all four components of the plan, the plan66155
is approved. Otherwise, the plan is disapproved. If the plan is66156
disapproved, the department shall take action against the county66157
board under division (B) of section 5126.056 of the Revised Code.66158

       In approving plans under this section, the department shall66159
ensure that the aggregate of all plans provide for the increased66160
enrollment into home and community-based services during each66161
state fiscal year of at least five hundred individuals who did not66162
receive residential services, supported living, or home and66163
community-based services the prior state fiscal year if the66164
department has enough additional enrollment available for this66165
purpose.66166

       The department shall establish protocols that the department66167
shall use to determine whether a county board is complying with66168
the programmatic and financial accountability mechanisms and66169
achieving outcomes specified in its approved plan. If the66170
department determines that a county board is not in compliance66171
with the mechanisms or achieving the outcomes specified in its66172
approved plan, the department may take action under division 66173
(G)(F) of section 5126.055 of the Revised Code.66174

       Sec. 5123.047. (A) The department of mental retardation and66175
developmental disabilities shall pay the nonfederal share of66176
medicaid expenditures for habilitation center services provided to66177
an individual with mental retardation or other developmental66178
disability unless section 5111.041 of the Revised Code requires a66179
county board of mental retardation and developmental disabilities66180
or a school district to pay the nonfederal share.66181

       (B) The department of mental retardation and developmental 66182
disabilities shall pay the nonfederal share of medicaid 66183
expenditures for medicaid case management services if either of 66184
the following apply:66185

       (1) Thethe services are provided to an individual with 66186
mental retardation or other developmental disability who a county 66187
board of mental retardation and developmental disabilities has 66188
determined under section 5126.041 of the Revised Code is not66189
eligible for county board services;66190

       (2) The services are provided to an individual with mental66191
retardation or other developmental disability by a public or66192
private agency with which the department has contracted under66193
section 5123.56 of the Revised Code to provide protective services66194
to the individual.66195

       (C)(B) The department shall pay the nonfederal share of66196
medicaid expenditures for home and community-based services if66197
eitherany of the following apply:66198

       (1) The services are provided to an individual with mental66199
retardation or other developmental disability who a county board66200
has determined under section 5126.041 of the Revised Code is not66201
eligible for county board services;66202

       (2) The services are provided to an individual with mental66203
retardation or other developmental disability given priority for66204
the services pursuant to division (D)(3) of section 5126.042 of66205
the Revised Code. The department shall pay the nonfederal share of 66206
medicaid expenditures for home and community-based services66207
provided to such an individual for as long as the individual66208
continues to be eligible for and receive the services, regardless66209
of whether the services are provided after June 30, 2003.66210

       (3) An agreement entered into under section 5123.048 of the 66211
Revised Code requires that the department pay the nonfederal share 66212
of medicaid expenditures for the services.66213

       Sec. 5123.048. The director of mental retardation and 66214
developmental disabilities may enter into an agreement with a 66215
county board of mental retardation and developmental disabilities 66216
under which the department of mental retardation and developmental 66217
disabilities is to pay the nonfederal share of medicaid 66218
expenditures for home and community-based services provided to 66219
individuals with mental retardation or other developmental 66220
disability residing in the county served by the county board.66221

       Sec. 5123.049. The director of mental retardation and66222
developmental disabilities shall adopt rules in accordance with66223
Chapter 119. of the Revised Code governing the authorization and66224
payment of home and community-based services,and medicaid case66225
management services, and habilitation center services. The rules66226
shall provide for private providers of the services to receive one66227
hundred per cent of the medicaid allowable payment amount and for66228
government providers of the services to receive the federal share66229
of the medicaid allowable payment, less the amount withheld as a66230
fee under section 5123.0412 of the Revised Code and any amount66231
that may be required by rules adopted under section 5123.0413 of66232
the Revised Code to be deposited into the state MR/DD risk fund.66233
The rules shall establish the process by which county boards of66234
mental retardation and developmental disabilities shall certify66235
and provide the nonfederal share of medicaid expenditures that the66236
county board is required by division (A) of section 5126.057 of66237
the Revised Code to pay. The process shall require a county board66238
to certify that the county board has funding available at one time66239
for two months costs for those expenditures. The process may66240
permit a county board to certify that the county board has funding66241
available at one time for more than two months costs for those66242
expenditures.66243

       Sec. 5123.0412. (A) The department of mental retardation and66244
developmental disabilities shall charge each county board of66245
mental retardation and developmental disabilities an annual fee66246
equal to one and one-half per cent of the total value of all 66247
medicaid paid claims for medicaid case management services and 66248
home and community-based services for which the county board 66249
contracts or provides itselfprovided during the year to an 66250
individual eligible for services from the county board. No county 66251
board shall pass the cost of a fee charged to the county board 66252
under this section on to a person or government entity with which 66253
the county board contracts to provide theanother provider of 66254
these services.66255

       (B) The fees collected under this section shall be deposited66256
into the ODMR/DD administration and oversight fund and the ODJFS66257
administration and oversight fund, both of which are hereby66258
created in the state treasury. The portion of the fees to be66259
deposited into the ODMR/DD administration and oversight fund and66260
the portion of the fees to be deposited into the ODJFS66261
administration and oversight fund shall be the portion specified66262
in an interagency agreement entered into under division (C) of66263
this section. The department of mental retardation and66264
developmental disabilities shall use the money in the ODMR/DD66265
administration and oversight fund and the department of job and66266
family services shall use the money in the ODJFS administration66267
and oversight fund for both of the following purposes:66268

       (1) The administrative and oversight costs of habilitation66269
center services, medicaid case management services, and home and66270
community-based services that a county board develops and monitors66271
and the county board or a person or government entity under66272
contract with the county board provides. The administrative and66273
oversight costs shall include costs for staff, systems, and other66274
resources the departments need and dedicate solely to the66275
following duties associated with the services:66276

       (a) Eligibility determinations;66277

       (b) Training;66278

       (c) Fiscal management;66279

       (d) Claims processing;66280

       (e) Quality assurance oversight;66281

       (f) Other duties the departments identify.66282

       (2) Providing technical support to county boards' local66283
administrative authority under section 5126.055 of the Revised66284
Code for the services.66285

       (C) The departments of mental retardation and developmental66286
disabilities and job and family services shall enter into an66287
interagency agreement to do both of the following:66288

       (1) Specify which portion of the fees collected under this66289
section is to be deposited into the ODMR/DD administration and66290
oversight fund and which portion is to be deposited into the ODJFS 66291
administration and oversight fund;66292

       (2) Provide for the departments to coordinate the staff whose 66293
costs are paid for with money in the ODMR/DD administration and 66294
oversight fund and the ODJFS administration and oversight fund.66295

       (D) The departments shall submit an annual report to the66296
director of budget and management certifying how the departments66297
spent the money in the ODMR/DD administration and oversight fund66298
and the ODJFS administration and oversight fund for the purposes66299
specified in division (B) of this section.66300

       Sec. 5123.16. (A) In accordance with Chapter 119. of the 66301
Revised Code, the director of mental retardation and developmental 66302
disabilities shall adopt and may amend and rescind rules for the 66303
certification of persons or government entities as described in 66304
division (A) of section 5123.045 of the Revised Code that provide 66305
or propose to provide home and community-based waiver services. 66306
The rules shall establish or specify all of the following:66307

       (1) Procedures for issuing and renewing certification and 66308
establishing expiration dates for currently certified providers;66309

       (2) Procedures and criteria for denying, refusing to renew, 66310
terminating, and revoking certification in accordance with this 66311
section and Chapter 119. of the Revised Code;66312

       (3) Procedures for ordering the suspension of a certified 66313
provider's certification;66314

       (4) Fees for issuing and renewing certification. All fees 66315
collected pursuant to this section shall be deposited in the state 66316
treasury to the credit of the provider certification fund, which 66317
is hereby created. Money credited to the fund shall be used solely 66318
for the operation of the provider certification program 66319
established under this section.66320

       (5) Program services for which certification is required and 66321
provider standards for those services;66322

       (6) Procedures for certification;66323

       (7) Procedures for ensuring that providers comply with 66324
sections 5123.52 and 5126.281 of the Revised Code.66325

       (B) A provider's certification may be terminated when the 66326
certified provider has not billed for services for a period of 66327
more than twelve consecutive months and the provider has been 66328
notified in accordance with Chapter 119. of the Revised Code.66329

       (C) The director may suspend or revoke a provider's 66330
certification in accordance with Chapter 119. of the Revised Code 66331
for good cause, including misfeasance, malfeasance, nonfeasance, 66332
confirmed abuse or neglect, noncompliance with provider 66333
certification standards, financial irresponsibility, or other 66334
conduct the department determines is injurious to individuals 66335
being served.66336

       (D)(1) The director may suspend a certified provider's 66337
certification to serve one or more individuals currently served by 66338
the provider in one or more counties before providing an 66339
opportunity for an adjudication under Chapter 119. of the Revised 66340
Code when the director determines that the certified provider has 66341
demonstrated a pattern of serious noncompliance with certification 66342
standards or that a violation of certification standards creates a 66343
substantial risk to the health and safety of an individual served 66344
by the certified provider and both the following conditions are 66345
met:66346

       (a) The individual or guardian, as appropriate, has been made 66347
aware of the patterns of serious noncompliance or violations of 66348
certification standards that create a substantial risk to the 66349
health and safety of the individual, and the individual or 66350
guardian does not choose to select another certified provider; and66351

       (b) A county board of mental retardation and developmental 66352
disabilities has filed a complaint with the probate court in 66353
accordance with section 5126.33 of the Revised Code and the 66354
probate court does not issue an order authorizing the board to 66355
arrange protective services for the individual.66356

       (2) The director may suspend a certified provider's 66357
certification to begin to serve one or more individuals not 66358
currently being served by the provider in one or more counties 66359
before providing an opportunity for an adjudication under Chapter 66360
119. of the Revised Code when the director determines that the 66361
certified provider has demonstrated a pattern of serious 66362
noncompliance with certification standards or that a violation of 66363
certification standards creates a substantial risk to the health 66364
and safety of an individual served by the certified provider.66365

       (3) Except as provided in division (D)(4) of this section, 66366
appeals from proceedings initiated to terminate a provider's 66367
certification under division (B) of this section or to suspend or 66368
revoke a provider's certification under division (C) of this 66369
section shall be conducted in accordance with Chapter 119. of the 66370
Revised Code.66371

       (4) Appeals from proceedings initiated to order the 66372
suspension of a certified provider's certification shall be 66373
conducted in accordance with Chapter 119. of the Revised Code, 66374
unless the order was issued before providing an opportunity for an 66375
adjudication, in which case all of the following apply:66376

       (a) The department shall notify the certified provider within 66377
twenty-four hours of ordering of the suspension.66378

       (b) The certified provider may request a hearing not later 66379
than ten days after receiving the notice specified in section 66380
119.07 of the Revised Code.66381

       (c) If a timely request for a hearing is made, the hearing 66382
shall commence not later than thirty days after the department 66383
receives the request.66384

       (d) After commencing, the hearing shall continue, 66385
uninterrupted, except for Saturdays, Sundays, and legal holidays, 66386
unless other interruptions are agreed to by the provider and the 66387
director.66388

       (e) If the hearing is conducted by a hearing examiner, the 66389
hearing examiner shall file a report and recommendations not later 66390
than ten days after the close of the hearing. For purposes of 66391
division (D)(4)(d) of this section, the hearing shall not be 66392
considering closed until the hearing examiner receives the 66393
transcript of the hearing, if a transcript is ordered, and all 66394
post-hearing briefs, if any, are timely filed.66395

       (f) A copy of such written report and recommendations of the 66396
hearing examiner shall, within five days of the date of the filing 66397
thereof, be served upon the provider or the provider's attorney, 66398
by certified mail.66399

       (g) The provider may file objections to the report and 66400
recommendations not later than five days after the receipt of the 66401
report and recommendations.66402

       (h) No recommendation of the hearing examiner shall be 66403
approved, modified, or disapproved by the department until five 66404
days after service of the hearing examiner's report and 66405
recommendations upon the provider or the provider's attorney.66406

       (i) Not later than fifteen days after the service of such 66407
report and recommendations of the hearing examiner upon the 66408
provider or the provider's attorney, the director shall issue an 66409
order approving, modifying, or disapproving the report and 66410
recommendation.66411

       (j) The order shall be lifted when the provider has submitted 66412
an acceptable plan of compliance and the department determines the 66413
plan of compliance has been appropriately implemented.66414

       (k) Following the issuance of an adjudication order by the 66415
director, the provider may appeal the order in accordance with 66416
section 119.12 of the Revised Code.66417

       (l) Notwithstanding the pendency of the hearing, the director 66418
shall lift the order for the suspension of the certified 66419
provider's certification under division (D)(1) or (D)(2) of this 66420
section when the director determines that the violation that 66421
formed the basis for the order has been corrected. The hearing 66422
shall continue unless the provider withdraws, in writing, the 66423
appeal of the department's suspension.66424

       (E) All applicants for or holders of certification under this 66425
section shall maintain a current address with the director at all 66426
times.66427

       (F) An applicant whose certification has been denied in 66428
accordance with this section may not apply to become a certified 66429
provider within one year of the date of the applicant's denial of 66430
certification. A certified provider whose certification has been 66431
revoked in accordance with this section may not apply for 66432
certification within five years of the revocation of the certified 66433
provider's certification.66434

       (G) The records of surveys of providers conducted in 66435
accordance with this section are public records for purposes of 66436
section 149.43 of the Revised Code and shall be made available 66437
upon request of any person, including individuals being served, 66438
individuals seeking home and community-based services, and county 66439
boards of mental retardation and developmental disabilities.66440

       (H) The certification of a provider that is certified to 66441
provide home and community-based services on the effective date of 66442
this section shall remain in effect until the department 66443
establishes an expiration date for the certification unless the 66444
certification is voluntarily surrendered or terminated, suspended 66445
or revoked in accordance with this section.66446

       (I) As used in this section, "home and community-based 66447
services" has the same meaning as in section 5126.01 of the 66448
Revised Code.66449

       (J) The director of mental retardation and developmental 66450
disabilities shall not apply any provisions of sections 5126.40 to 66451
5126.47 of the Revised Code to any provider of home and 66452
community-based services certified under this section.66453

       Sec. 5123.34.  This chapter attempts to do all of the 66454
following:66455

       (A) Provide humane and scientific treatment and care and the 66456
highest attainable degree of individual development for persons 66457
with mental retardation or a developmental disability;66458

       (B) Promote the study of the causes of mental retardation and 66459
developmental disabilities, with a view to ultimate prevention;66460

       (C) Secure by uniform and systematic management the highest 66461
attainable degree of economy in the administration of the66462
institutions under the control of the department of mental66463
retardation and developmental disabilities.66464

       Sections 5123.02 to 5123.04, 5123.041 to5123.042, 5123.043,66465
5123.10, 5123.21, 5123.221, 5123.25, and 5123.31 of the Revised 66466
Code shall be liberally construed to attain these purposes.66467

       Sec. 5123.41.  As used in this section and sections 5123.4266468
to 5123.47 of the Revised Code:66469

       (A) "Adult services" has the same meaning as in section66470
5126.01 of the Revised Code.66471

       (B) "Certified home and community-based services provider"66472
means a person or government entity certified under section66473
5123.0455123.16 of the Revised Code.66474

       (C) "Certified supported living provider" means a person or66475
government entity certified under section 5126.431 of the Revised66476
Code.66477

       (D) "Drug" has the same meaning as in section 4729.01 of the66478
Revised Code.66479

       (E) "Family support services" has the same meaning as in66480
section 5126.01 of the Revised Code.66481

       (F) "Health-related activities" means the following:66482

       (1) Taking vital signs;66483

       (2) Application of clean dressings that do not require health66484
assessment;66485

       (3) Basic measurement of bodily intake and output;66486

       (4) Oral suctioning;66487

       (5) Use of glucometers;66488

       (6) External urinary catheter care;66489

       (7) Emptying and replacing colostomy bags;66490

       (8) Collection of specimens by noninvasive means.66491

       (G) "Licensed health professional authorized to prescribe66492
drugs" has the same meaning as in section 4729.01 of the Revised66493
Code.66494

       (H) "Medicaid" has the same meaning as in section 5111.01 of66495
the Revised Code.66496

       (I) "MR/DD personnel" means the employees and the workers66497
under contract who provide specialized services to individuals66498
with mental retardation and developmental disabilities. "MR/DD66499
personnel" includes those who provide the services as follows:66500

       (1) Through direct employment with the department of mental66501
retardation and developmental disabilities or a county board of66502
mental retardation and developmental disabilities;66503

       (2) Through an entity under contract with the department of66504
mental retardation and developmental disabilities or a county66505
board of mental retardation and developmental disabilities;66506

       (3) Through direct employment or by being under contract with 66507
private entities, including private entities that operate66508
residential facilities.66509

       (J) "Nursing delegation" means the process established in66510
rules adopted by the board of nursing pursuant to Chapter 4723. of66511
the Revised Code under which a registered nurse or licensed66512
practical nurse acting at the direction of a registered nurse66513
transfers the performance of a particular nursing activity or task66514
to another person who is not otherwise authorized to perform the66515
activity or task.66516

       (K) "Prescribed medication" means a drug that is to be66517
administered according to the instructions of a licensed health66518
professional authorized to prescribe drugs.66519

       (L) "Residential facility" means a facility licensed under66520
section 5123.19 of the Revised Code or subject to section 5123.19266521
of the Revised Code.66522

       (M) "Specialized services" has the same meaning as in section 66523
5123.50 of the Revised Code.66524

       (N) "Tube feeding" means the provision of nutrition to an66525
individual through a gastrostomy tube or a jejunostomy tube.66526

       Sec. 5123.701.  (A) Except as provided in division (E) of 66527
this section, any person in the community who is eighteen years of 66528
age or older and who is or believes self to be mentally retarded 66529
may make written application to the managing officer of any 66530
institution for temporary admission for short-term care. The 66531
application may be made on behalf of a minor by a parent or 66532
guardian, and on behalf of an adult adjudicated mentally 66533
incompetent by a guardian.66534

       (B) For purposes of this section, short-term care shall be66535
defined to mean appropriate services provided to a person with66536
mental retardation for no more than fourteen consecutive days and66537
for no more than forty-two days in a fiscal year. When66538
circumstances warrant, the fourteen-day period may be extended at66539
the discretion of the managing officer. Short-term care is66540
provided in a developmental center to meet the family's or66541
caretaker's needs for separation from the person with mental66542
retardation.66543

       (C) The managing officer of an institution, with the66544
concurrence of the chief program director, may admit a person for66545
short-term care only after a medical examination has been made of66546
the person and only if the managing officer concludes that the66547
person is mentally retarded.66548

       (D) If application for admission for short-term care of a66549
minor or of a person adjudicated mentally incompetent is made by66550
the minor's parent or guardian or by the incompetent's guardian 66551
and the minor or incompetent is admitted, the probate division of 66552
the court of common pleas shall determine, upon petition by the 66553
legal rights service, whether the admission for short-term care is 66554
in the best interest of the minor or the incompetent.66555

       (E) A person who is found not guilty by reason of insanity66556
shall not admit self to an institution for short-term care unless 66557
a hearing was held regarding the person pursuant to division (A) 66558
of section 2945.40 of the Revised Code and either of the following 66559
applies:66560

       (1) The person was found at the hearing not to be a mentally 66561
retarded person subject to institutionalization by court order;66562

       (2) The person was found at the hearing to be a mentally66563
retarded person subject to institutionalization by court order, 66564
was involuntarily committed, and was finally discharged.66565

       (F) The mentally retarded person, liable relatives, and66566
guardians of mentally retarded persons admitted for respite care66567
shall pay support charges in accordance with sections 5121.0366568
5121.01 to 5121.075121.21 of the Revised Code.66569

       (G) At the conclusion of each period of short-term care, the 66570
person shall return to the person's family or caretaker. Under no66571
circumstances shall a person admitted for short-term care66572
according to this section remain in the institution after the66573
period of short-term care unless the person is admitted according 66574
to section 5123.70, sections 5123.71 to 5123.76, or section66575
2945.38, 2945.39, 2945.40, 2945.401, or 2945.402 of the Revised 66576
Code.66577

       Sec. 5123.71.  (A)(1) Proceedings for the involuntary66578
institutionalization of a person pursuant to sections 5123.71 to66579
5123.76 of the Revised Code shall be commenced by the filing of an66580
affidavit with the probate division of the court of common pleas66581
of the county where the person resides or where the person is66582
institutionalized, in the manner and form prescribed by the66583
department of mental retardation and developmental disabilities66584
either on information or actual knowledge, whichever is determined66585
to be proper by the court. The affidavit may be filed only by a66586
person who has custody of the individual as a parent, guardian, or66587
service provider or by a person acting on behalf of the department66588
or a county board of mental retardation and developmental66589
disabilities. This section does not apply regarding the66590
institutionalization of a person pursuant to section 2945.39,66591
2945.40, 2945.401, or 2945.402 of the Revised Code.66592

       The affidavit shall contain an allegation setting forth the66593
specific category or categories under division (P)(O) of section66594
5123.01 of the Revised Code upon which the commencement of66595
proceedings is based and a statement of the factual ground for the66596
belief that the person is a mentally retarded person subject to66597
institutionalization by court order. Except as provided in66598
division (A)(2) of this section, the affidavit shall be66599
accompanied by both of the following:66600

       (a) A comprehensive evaluation report prepared by the66601
person's evaluation team that includes a statement by the members66602
of the team certifying that they have performed a comprehensive66603
evaluation of the person and that they are of the opinion that the66604
person is a mentally retarded person subject to66605
institutionalization by court order;66606

       (b) An assessment report prepared by the county board of66607
mental retardation and developmental disabilities under section66608
5123.711 of the Revised Code specifying that the individual is in66609
need of services on an emergency or priority basis.66610

       (2) In lieu of the comprehensive evaluation report, the66611
affidavit may be accompanied by a written and sworn statement that66612
the person or the guardian of a person adjudicated incompetent has66613
refused to allow a comprehensive evaluation and county board66614
assessment and assessment reports. Immediately after accepting an66615
affidavit that is not accompanied by the reports of a66616
comprehensive evaluation and county board assessment, the court66617
shall cause a comprehensive evaluation and county board assessment66618
of the person named in the affidavit to be performed. The66619
evaluation shall be conducted in the least restrictive environment66620
possible and the assessment shall be conducted in the same manner66621
as assessments conducted under section 5123.711 of the Revised66622
Code. The evaluation and assessment must be completed before a66623
probable cause hearing or full hearing may be held under section66624
5123.75 or 5123.76 of the Revised Code.66625

       A written report of the evaluation team's findings and the66626
county board's assessment shall be filed with the court. The66627
reports shall, consistent with the rules of evidence, be accepted66628
as probative evidence in any proceeding under section 5123.75 or66629
5123.76 of the Revised Code. If the counsel for the person who is66630
evaluated or assessed is known, the court shall send to the66631
counsel a copy of the reports as soon as possible after they are66632
filed and prior to any proceedings under section 5123.75 or66633
5123.76 of the Revised Code.66634

       (B) Any person who is involuntarily detained in an66635
institution or otherwise is in custody under this chapter shall be66636
informed of the right to do the following:66637

       (1) Immediately make a reasonable number of telephone calls66638
or use other reasonable means to contact an attorney, a physician,66639
or both, to contact any other person or persons to secure66640
representation by counsel, or to obtain medical assistance, and be66641
provided assistance in making calls if the assistance is needed66642
and requested;66643

       (2) Retain counsel and have independent expert evaluation66644
and, if the person is an indigent person, be represented by66645
court-appointed counsel and have independent expert evaluation at66646
court expense;66647

       (3) Upon request, have a hearing to determine whether there66648
is probable cause to believe that the person is a mentally66649
retarded person subject to institutionalization by court order.66650

       (C) No person who is being treated by spiritual means through 66651
prayer alone in accordance with a recognized religious method of 66652
healing may be ordered detained or involuntarily committed unless 66653
the court has determined that the person represents a very 66654
substantial risk of self-impairment, self-injury, or impairment or 66655
injury to others.66656

       Sec. 5123.76.  (A) The full hearing shall be conducted in a66657
manner consistent with the procedures outlined in this chapter and66658
with due process of law. The hearing shall be held by a judge of66659
the probate division or, upon transfer by the judge of the probate66660
division, by another judge of the court of common pleas, or a66661
referee designated by the judge of the probate division. Any66662
referee designated by the judge of the probate division must be an66663
attorney.66664

       (1) The following shall be made available to counsel for the66665
respondent:66666

       (a) All relevant documents, information, and evidence in the66667
custody or control of the state or prosecutor;66668

       (b) All relevant documents, information, and evidence in the66669
custody or control of the institution, facility, or program in66670
which the respondent currently is held or in which the respondent66671
has been held pursuant to these proceedings;66672

       (c) With the consent of the respondent, all relevant66673
documents, information, and evidence in the custody or control of66674
any institution or person other than the state.66675

       (2) The respondent has the right to be represented by counsel 66676
of the respondent's choice and has the right to attend the hearing66677
except if unusual circumstances of compelling medical necessity66678
exist that render the respondent unable to attend and the66679
respondent has not expressed a desire to attend.66680

       (3) If the respondent is not represented by counsel and the66681
court determines that the conditions specified in division (A)(2)66682
of this section justify the respondent's absence and the right to66683
counsel has not been validly waived, the court shall appoint66684
counsel forthwith to represent the respondent at the hearing,66685
reserving the right to tax costs of appointed counsel to the66686
respondent unless it is shown that the respondent is indigent. If66687
the court appoints counsel, or if the court determines that the66688
evidence relevant to the respondent's absence does not justify the66689
absence, the court shall continue the case.66690

       (4) The respondent shall be informed of the right to retain66691
counsel, to have independent expert evaluation, and, if an66692
indigent person, to be represented by court appointed counsel and66693
have expert independent evaluation at court expense.66694

       (5) The hearing may be closed to the public unless counsel66695
for the respondent requests that the hearing be open to the66696
public.66697

       (6) Unless objected to by the respondent, the respondent's66698
counsel, or the designee of the director of mental retardation and66699
developmental disabilities, the court, for good cause shown, may66700
admit persons having a legitimate interest in the proceedings.66701

       (7) The affiant under section 5123.71 of the Revised Code66702
shall be subject to subpoena by either party.66703

       (8) The court shall examine the sufficiency of all documents66704
filed and shall inform the respondent, if present, and the66705
respondent's counsel of the nature of the content of the documents66706
and the reason for which the respondent is being held or for which66707
the respondent's placement is being sought.66708

       (9) The court shall receive only relevant, competent, and66709
material evidence.66710

       (10) The designee of the director shall present the evidence66711
for the state. In proceedings under this chapter, the attorney66712
general shall present the comprehensive evaluation, assessment,66713
diagnosis, prognosis, record of habilitation and care, if any, and66714
less restrictive habilitation plans, if any. The attorney general66715
does not have a similar presentation responsibility in connection66716
with a person who has been found not guilty by reason of insanity66717
and who is the subject of a hearing under section 2945.40 of the66718
Revised Code to determine whether the person is a mentally66719
retarded person subject to institutionalization by court order.66720

       (11) The respondent has the right to testify and the66721
respondent or the respondent's counsel has the right to subpoena66722
witnesses and documents and to present and cross-examine66723
witnesses.66724

       (12) The respondent shall not be compelled to testify and66725
shall be so advised by the court.66726

       (13) On motion of the respondent or the respondent's counsel66727
for good cause shown, or upon the court's own motion, the court66728
may order a continuance of the hearing.66729

       (14) To an extent not inconsistent with this chapter, the66730
Rules of Civil Procedure shall be applicable.66731

       (B) Unless, upon completion of the hearing, the court finds66732
by clear and convincing evidence that the respondent named in the66733
affidavit is a mentally retarded person subject to66734
institutionalization by court order, it shall order the66735
respondent's discharge forthwith.66736

       (C) If, upon completion of the hearing, the court finds by66737
clear and convincing evidence that the respondent is a mentally66738
retarded person subject to institutionalization by court order,66739
the court may order the respondent's discharge or order the66740
respondent, for a period not to exceed ninety days, to any of the66741
following:66742

       (1) A public institution, provided that commitment of the66743
respondent to the institution will not cause the institution to66744
exceed its licensed capacity determined in accordance with section66745
5123.19 of the Revised Code and provided that such a placement is66746
indicated by the comprehensive evaluation report filed pursuant to66747
section 5123.71 of the Revised Code;66748

       (2) A private institution;66749

       (3) A county mental retardation program;66750

       (4) Receive private habilitation and care;66751

       (5) Any other suitable facility, program, or the care of any66752
person consistent with the comprehensive evaluation, assessment,66753
diagnosis, prognosis, and habilitation needs of the respondent.66754

       (D) Any order made pursuant to division (C)(2), (4), or (5)66755
of this section shall be conditional upon the receipt by the court66756
of consent by the facility, program, or person to accept the66757
respondent.66758

       (E) In determining the place to which, or the person with66759
whom, the respondent is to be committed, the court shall consider66760
the comprehensive evaluation, assessment, diagnosis, and projected66761
habilitation plan for the respondent, and shall order the66762
implementation of the least restrictive alternative available and66763
consistent with habilitation goals.66764

       (F) If, at any time it is determined by the director of the66765
facility or program to which, or the person to whom, the66766
respondent is committed that the respondent could be equally well66767
habilitated in a less restrictive environment that is available,66768
the following shall occur:66769

       (1) The respondent shall be released by the director of the66770
facility or program or by the person forthwith and referred to the66771
court together with a report of the findings and recommendations66772
of the facility, program, or person.66773

       (2) The director of the facility or program or the person66774
shall notify the respondent's counsel and the designee of the66775
director of mental retardation and developmental disabilities.66776

       (3) The court shall dismiss the case or order placement in66777
the less restrictive environment.66778

       (G)(1) Except as provided in divisions (G)(2) and (3) of this 66779
section, any person who has been committed under this section may 66780
apply at any time during the ninety-day period for voluntary66781
admission to an institution under section 5123.69 of the Revised66782
Code. Upon admission of a voluntary resident, the managing officer 66783
immediately shall notify the court, the respondent's counsel, and 66784
the designee of the director in writing of that fact by mail or 66785
otherwise, and, upon receipt of the notice, the court shall 66786
dismiss the case.66787

       (2) A person who is found incompetent to stand trial or not66788
guilty by reason of insanity and who is committed pursuant to66789
section 2945.39, 2945.40, 2945.401, or 2945.402 of the Revised66790
Code shall not be voluntarily admitted to an institution pursuant66791
to division (G)(1) of this section until after the termination of66792
the commitment, as described in division (J) of section 2945.40166793
of the Revised Code.66794

       (H) If, at the end of any commitment period, the respondent66795
has not already been discharged or has not requested voluntary66796
admission status, the director of the facility or program, or the66797
person to whose care the respondent has been committed, shall66798
discharge the respondent forthwith, unless at least ten days66799
before the expiration of that period the designee of the director66800
of mental retardation and developmental disabilities or the66801
prosecutor files an application with the court requesting66802
continued commitment.66803

       (1) An application for continued commitment shall include a66804
written report containing a current comprehensive evaluation and66805
assessment, a diagnosis, a prognosis, an account of progress and66806
past habilitation, and a description of alternative habilitation66807
settings and plans, including a habilitation setting that is the66808
least restrictive setting consistent with the need for66809
habilitation. A copy of the application shall be provided to66810
respondent's counsel. The requirements for notice under section66811
5123.73 of the Revised Code and the provisions of divisions (A) to66812
(E) of this section apply to all hearings on such applications.66813

       (2) A hearing on the first application for continued66814
commitment shall be held at the expiration of the first ninety-day66815
period. The hearing shall be mandatory and may not be waived.66816

       (3) Subsequent periods of commitment not to exceed one66817
hundred eighty days each may be ordered by the court if the66818
designee of the director of mental retardation and developmental66819
disabilities files an application for continued commitment, after66820
a hearing is held on the application or without a hearing if no66821
hearing is requested and no hearing required under division (H)(4)66822
of this section is waived. Upon the application of a person66823
involuntarily committed under this section, supported by an66824
affidavit of a licensed physician alleging that the person is no66825
longer a mentally retarded person subject to institutionalization66826
by court order, the court for good cause shown may hold a full66827
hearing on the person's continued commitment prior to the66828
expiration of any subsequent period of commitment set by the66829
court.66830

       (4) A mandatory hearing shall be held at least every two66831
years after the initial commitment.66832

       (5) If the court, after a hearing upon a request to continue66833
commitment, finds that the respondent is a mentally retarded66834
person subject to institutionalization by court order, the court66835
may make an order pursuant to divisions (C), (D), and (E) of this66836
section.66837

       (I) Notwithstanding the provisions of division (H) of this66838
section, no person who is found to be a mentally retarded person66839
subject to institutionalization by court order pursuant to66840
division (P)(O)(2) of section 5123.01 of the Revised Code shall be66841
held under involuntary commitment for more than five years.66842

       (J) The managing officer admitting a person pursuant to a66843
judicial proceeding, within ten working days of the admission,66844
shall make a report of the admission to the department.66845

       Sec. 5126.01.  As used in this chapter:66846

       (A) As used in this division, "adult" means an individual who 66847
is eighteen years of age or over and not enrolled in a program or 66848
service under Chapter 3323. of the Revised Code and an individual66849
sixteen or seventeen years of age who is eligible for adult 66850
services under rules adopted by the director of mental retardation 66851
and developmental disabilities pursuant to Chapter 119. of the66852
Revised Code.66853

       (1) "Adult services" means services provided to an adult66854
outside the home, except when they are provided within the home66855
according to an individual's assessed needs and identified in an66856
individual service plan, that support learning and assistance in66857
the area of self-care, sensory and motor development,66858
socialization, daily living skills, communication, community66859
living, social skills, or vocational skills.66860

       (2) "Adult services" includes all of the following:66861

       (a) Adult day habilitation services;66862

       (b) Adult day care;66863

       (c) Prevocational services;66864

       (d) Sheltered employment;66865

       (e) Educational experiences and training obtained through66866
entities and activities that are not expressly intended for66867
individuals with mental retardation and developmental66868
disabilities, including trade schools, vocational or technical66869
schools, adult education, job exploration and sampling, unpaid66870
work experience in the community, volunteer activities, and66871
spectator sports;66872

       (f) Community employment services and supported employment66873
services.66874

       (B)(1) "Adult day habilitation services" means adult services 66875
that do the following:66876

       (a) Provide access to and participation in typical activities 66877
and functions of community life that are desired and chosen by the 66878
general population, including such activities and functions as 66879
opportunities to experience and participate in community 66880
exploration, companionship with friends and peers, leisure 66881
activities, hobbies, maintaining family contacts, community 66882
events, and activities where individuals without disabilities are 66883
involved;66884

       (b) Provide supports or a combination of training and66885
supports that afford an individual a wide variety of opportunities66886
to facilitate and build relationships and social supports in the66887
community.66888

       (2) "Adult day habilitation services" includes all of the66889
following:66890

       (a) Personal care services needed to ensure an individual's66891
ability to experience and participate in vocational services,66892
educational services, community activities, and any other adult66893
day habilitation services;66894

       (b) Skilled services provided while receiving adult day66895
habilitation services, including such skilled services as behavior66896
management intervention, occupational therapy, speech and language66897
therapy, physical therapy, and nursing services;66898

       (c) Training and education in self-determination designed to66899
help the individual do one or more of the following: develop66900
self-advocacy skills, exercise the individual's civil rights,66901
acquire skills that enable the individual to exercise control and66902
responsibility over the services received, and acquire skills that66903
enable the individual to become more independent, integrated, or66904
productive in the community;66905

       (d) Recreational and leisure activities identified in the66906
individual's service plan as therapeutic in nature or assistive in66907
developing or maintaining social supports;66908

       (e) Counseling and assistance provided to obtain housing,66909
including such counseling as identifying options for either rental66910
or purchase, identifying financial resources, assessing needs for66911
environmental modifications, locating housing, and planning for66912
ongoing management and maintenance of the housing selected;66913

       (f) Transportation necessary to access adult day habilitation 66914
services;66915

       (g) Habilitation management, as described in section 5126.1466916
of the Revised Code.66917

       (3) "Adult day habilitation services" does not include66918
activities that are components of the provision of residential66919
services, family support services, or supported living services.66920

       (C) "Appointing authority" means the following:66921

       (1) In the case of a member of a county board of mental 66922
retardation and developmental disabilities appointed by, or to be 66923
appointed by, a board of county commissioners, the board of county 66924
commissioners;66925

       (2) In the case of a member of a county board appointed by, 66926
or to be appointed by, a senior probate judge, the senior probate 66927
judge.66928

       (D) "Community employment services" or "supported employment66929
services" means job training and other services related to66930
employment outside a sheltered workshop. "Community employment66931
services" or "supported employment services" include all of the66932
following:66933

       (1) Job training resulting in the attainment of competitive66934
work, supported work in a typical work environment, or66935
self-employment;66936

       (2) Supervised work experience through an employer paid to66937
provide the supervised work experience;66938

       (3) Ongoing work in a competitive work environment at a wage66939
commensurate with workers without disabilities;66940

       (4) Ongoing supervision by an employer paid to provide the66941
supervision.66942

       (E) As used in this division, "substantial functional66943
limitation," "developmental delay," and "established risk" have66944
the meanings established pursuant to section 5123.011 of the66945
Revised Code.66946

       "Developmental disability" means a severe, chronic disability66947
that is characterized by all of the following:66948

       (1) It is attributable to a mental or physical impairment or66949
a combination of mental and physical impairments, other than a66950
mental or physical impairment solely caused by mental illness as66951
defined in division (A) of section 5122.01 of the Revised Code;66952

       (2) It is manifested before age twenty-two;66953

       (3) It is likely to continue indefinitely;66954

       (4) It results in one of the following:66955

       (a) In the case of a person under age three, at least one66956
developmental delay or an established risk;66957

       (b) In the case of a person at least age three but under age66958
six, at least two developmental delays or an established risk;66959

       (c) In the case of a person age six or older, a substantial66960
functional limitation in at least three of the following areas of66961
major life activity, as appropriate for the person's age:66962
self-care, receptive and expressive language, learning, mobility,66963
self-direction, capacity for independent living, and, if the66964
person is at least age sixteen, capacity for economic66965
self-sufficiency.66966

       (5) It causes the person to need a combination and sequence66967
of special, interdisciplinary, or other type of care, treatment,66968
or provision of services for an extended period of time that is66969
individually planned and coordinated for the person.66970

       (F) "Early childhood services" means a planned program of66971
habilitation designed to meet the needs of individuals with mental66972
retardation or other developmental disabilities who have not66973
attained compulsory school age.66974

       (G)(1) "Environmental modifications" means the physical66975
adaptations to an individual's home, specified in the individual's66976
service plan, that are necessary to ensure the individual's66977
health, safety, and welfare or that enable the individual to66978
function with greater independence in the home, and without which66979
the individual would require institutionalization.66980

       (2) "Environmental modifications" includes such adaptations66981
as installation of ramps and grab-bars, widening of doorways,66982
modification of bathroom facilities, and installation of66983
specialized electric and plumbing systems necessary to accommodate66984
the individual's medical equipment and supplies.66985

       (3) "Environmental modifications" does not include physical66986
adaptations or improvements to the home that are of general66987
utility or not of direct medical or remedial benefit to the66988
individual, including such adaptations or improvements as66989
carpeting, roof repair, and central air conditioning.66990

       (H) "Family support services" means the services provided66991
under a family support services program operated under section66992
5126.11 of the Revised Code.66993

       (I) "Habilitation" means the process by which the staff of66994
the facility or agency assists an individual with mental66995
retardation or other developmental disability in acquiring and66996
maintaining those life skills that enable the individual to cope66997
more effectively with the demands of the individual's own person66998
and environment, and in raising the level of the individual's66999
personal, physical, mental, social, and vocational efficiency.67000
Habilitation includes, but is not limited to, programs of formal,67001
structured education and training.67002

       (J) "Habilitation center services" means services provided by67003
a habilitation center certified by the department of mental67004
retardation and developmental disabilities under section 5123.04167005
of the Revised Code and covered by the medicaid program pursuant67006
to rules adopted under section 5111.041 of the Revised Code.67007

       (K) "Home and community-based services" means medicaid-funded 67008
home and community-based services specified in division (B)(1) of 67009
section 5111.87 of the Revised Code and provided under the67010
medicaid waiver components the department of mental retardation 67011
and developmental disabilities administers pursuant to section67012
5111.871 of the Revised Code.67013

       (L)(K) "Immediate family" means parents, brothers, sisters, 67014
spouses, sons, daughters, mothers-in-law, fathers-in-law, 67015
brothers-in-law, sisters-in-law, sons-in-law, and 67016
daughters-in-law.67017

       (M)(L) "Medicaid" has the same meaning as in section 5111.0167018
of the Revised Code.67019

       (N)(M) "Medicaid case management services" means case67020
management services provided to an individual with mental67021
retardation or other developmental disability that the state67022
medicaid plan requires.67023

       (O)(N) "Mental retardation" means a mental impairment67024
manifested during the developmental period characterized by67025
significantly subaverage general intellectual functioning existing67026
concurrently with deficiencies in the effectiveness or degree with67027
which an individual meets the standards of personal independence67028
and social responsibility expected of the individual's age and67029
cultural group.67030

       (P)(O) "Residential services" means services to individuals67031
with mental retardation or other developmental disabilities to67032
provide housing, food, clothing, habilitation, staff support, and67033
related support services necessary for the health, safety, and67034
welfare of the individuals and the advancement of their quality of67035
life. "Residential services" includes program management, as67036
described in section 5126.14 of the Revised Code.67037

       (Q)(P) "Resources" means available capital and other assets,67038
including moneys received from the federal, state, and local67039
governments, private grants, and donations; appropriately67040
qualified personnel; and appropriate capital facilities and67041
equipment.67042

       (R)(Q) "Senior probate judge" means the current probate judge 67043
of a county who has served as probate judge of that county longer 67044
than any of the other current probate judges of that county. If a 67045
county has only one probate judge, "senior probate judge" means 67046
that probate judge.67047

       (S)(R) "Service and support administration" means the duties67048
performed by a service and support administrator pursuant to67049
section 5126.15 of the Revised Code.67050

       (T)(S)(1) "Specialized medical, adaptive, and assistive67051
equipment, supplies, and supports" means equipment, supplies, and67052
supports that enable an individual to increase the ability to67053
perform activities of daily living or to perceive, control, or67054
communicate within the environment.67055

       (2) "Specialized medical, adaptive, and assistive equipment,67056
supplies, and supports" includes the following:67057

       (a) Eating utensils, adaptive feeding dishes, plate guards,67058
mylatex straps, hand splints, reaches, feeder seats, adjustable67059
pointer sticks, interpreter services, telecommunication devices67060
for the deaf, computerized communications boards, other67061
communication devices, support animals, veterinary care for67062
support animals, adaptive beds, supine boards, prone boards,67063
wedges, sand bags, sidelayers, bolsters, adaptive electrical67064
switches, hand-held shower heads, air conditioners, humidifiers,67065
emergency response systems, folding shopping carts, vehicle lifts,67066
vehicle hand controls, other adaptations of vehicles for67067
accessibility, and repair of the equipment received.67068

       (b) Nondisposable items not covered by medicaid that are67069
intended to assist an individual in activities of daily living or67070
instrumental activities of daily living.67071

       (U)(T) "Supportive home services" means a range of services67072
to families of individuals with mental retardation or other67073
developmental disabilities to develop and maintain increased67074
acceptance and understanding of such persons, increased ability of67075
family members to teach the person, better coordination between67076
school and home, skills in performing specific therapeutic and67077
management techniques, and ability to cope with specific67078
situations.67079

       (V)(U)(1) "Supported living" means services provided for as67080
long as twenty-four hours a day to an individual with mental67081
retardation or other developmental disability through any public67082
or private resources, including moneys from the individual, that67083
enhance the individual's reputation in community life and advance67084
the individual's quality of life by doing the following:67085

       (a) Providing the support necessary to enable an individual67086
to live in a residence of the individual's choice, with any number67087
of individuals who are not disabled, or with not more than three67088
individuals with mental retardation and developmental disabilities67089
unless the individuals are related by blood or marriage;67090

       (b) Encouraging the individual's participation in the67091
community;67092

       (c) Promoting the individual's rights and autonomy;67093

       (d) Assisting the individual in acquiring, retaining, and67094
improving the skills and competence necessary to live successfully67095
in the individual's residence.67096

       (2) "Supported living" includes the provision of all of the67097
following:67098

       (a) Housing, food, clothing, habilitation, staff support,67099
professional services, and any related support services necessary 67100
to ensure the health, safety, and welfare of the individual67101
receiving the services;67102

       (b) A combination of life-long or extended-duration67103
supervision, training, and other services essential to daily67104
living, including assessment and evaluation and assistance with67105
the cost of training materials, transportation, fees, and67106
supplies;67107

       (c) Personal care services and homemaker services;67108

       (d) Household maintenance that does not include modifications 67109
to the physical structure of the residence;67110

       (e) Respite care services;67111

       (f) Program management, as described in section 5126.14 of67112
the Revised Code.67113

       Sec. 5126.035. (A) As used in this section:67114

       (1) "Provider" means a person or government entity that67115
provides services to an individual with mental retardation or67116
other developmental disability pursuant to a service contract.67117

       (2) "Service contract" means a contract between a county67118
board of mental retardation and developmental disabilities and a67119
provider under which the provider is to provide services to an67120
individual with mental retardation or other developmental67121
disability.67122

       (B) Each service contract that a county board of mental67123
retardation and developmental disabilities enters into with a67124
provider shall do allboth of the following:67125

       (1) Comply with rules adopted under division (E) of this67126
section;67127

       (2) If the provider is to provide home and community-based67128
services,or medicaid case management services, or habilitation67129
center services, comply with all applicable statewide medicaid67130
requirements;67131

       (3)(2) Include a general operating agreement component and an67132
individual service needs addendum.67133

       (C) The general operating agreement component shall include67134
all of the following:67135

       (1) The roles and responsibilities of the county board67136
regarding services for individuals with mental retardation or67137
other developmental disability who reside in the county the county67138
board serves;67139

       (2) The roles and responsibilities of the provider as67140
specified in the individual service needs addendum;67141

       (3) Procedures for the county board to monitor the provider's 67142
services;67143

       (4) Procedures for the county board to evaluate the quality67144
of care and cost effectiveness of the provider's services;67145

       (5) Procedures for payment of eligible claims;67146

       (6) If the provider is to provide home and community-based67147
services,or medicaid case management services, or habilitation67148
center services, both of the following:67149

       (a) Procedures for reimbursement that conform to the67150
statewide reimbursement process and the county board's plan67151
submitted under section 5126.054 of the Revised Code;67152

       (b) Procedures that ensure that the county board pays the67153
nonfederal share of the medicaid expenditures that the county67154
board is required by division (A) of section 5126.057 of the67155
Revised Code to pay.67156

       (7) Procedures for the county board to perform service67157
utilization reviews and the implementation of required corrective67158
actions;67159

       (8) Procedures for the provider to submit claims for payment67160
for a service no later than three hundred thirty days after the67161
date the service is provided;67162

       (9) Procedures for rejecting claims for payment that are67163
submitted after the time required by division (B)(9)(C)(8) of this67164
section;67165

       (10) Procedures for developing, modifying, and executing67166
initial and subsequent service plans. The procedures shall provide 67167
for the provider's participation.67168

       (11) Procedures for affording individuals due process67169
protections;67170

       (12) General staffing, training, and certification67171
requirements that are consistent with state requirements and67172
compensation arrangements that are necessary to attract, train,67173
and retain competent personnel to deliver the services pursuant to67174
the individual service needs addendum;67175

       (13) Methods to be used to document services provided and67176
procedures for submitting reports the county board requires;67177

       (14) Methods for authorizing and documenting within67178
seventy-two hours changes to the individual service needs67179
addendum. The methods shall allow for changes to be initially67180
authorized verbally and subsequently in writing.67181

       (15) Procedures for modifying the individual service needs67182
addendum in accordance with changes to the recipient's67183
individualized service plan;67184

       (16) Procedures for terminating the individual service needs67185
addendum within thirty days of a request made by the recipient;67186

       (17) A requirement that all parties to the contract accept67187
the contract's terms and conditions;67188

       (18) A designated contact person and the method of contacting 67189
the designated person to respond to medical or behavioral problems 67190
and allegations of major unusual incidents or unusual incidents;67191

       (19) Procedures for ensuring the health and welfare of the67192
recipient;67193

       (20) Procedures for ensuring fiscal accountability and the67194
collection and reporting of programmatic data;67195

       (21) Procedures for implementing the mediation and67196
arbitration process under section 5126.036 of the Revised Code;67197

       (22) Procedures for amending or terminating the contract,67198
including as necessary to make the general operating agreement67199
component consistent with any changes made to the individual67200
service needs addendum;67201

       (23) Anything else allowable under federal and state law that 67202
the county board and provider agree to.67203

       (D) The individual service needs addendum shall be consistent 67204
with the general operating agreement component and include all of 67205
the following:67206

       (1) The name of the individual with mental retardation or67207
other developmental disability who is to receive the services from67208
the provider and any information about the recipient that the67209
provider needs to be able to provide the services;67210

       (2) A clear and complete description of the services that the 67211
recipient is to receive as determined using statewide assessment 67212
tools;67213

       (3) A copy of the recipient's assessment and individualized67214
service plan;67215

       (4) A clear and complete description of the provider's67216
responsibilities to the recipient and county board in providing67217
appropriate services in a coordinated manner with other providers67218
and in a manner that contributes to and ensures the recipient's67219
health, safety, and welfare.67220

       (E) The director of mental retardation and developmental67221
disabilities shall adopt rules in accordance with Chapter 119. of67222
the Revised Code governing service contracts. A service contract67223
does not negate the requirement that a provider of home and67224
community-based services,or medicaid case management services, or67225
habilitation center services have a medicaid provider agreement67226
with the department of job and family services.67227

       Sec. 5126.042.  (A) As used in this section, "emergency" 67228
means any situation that creates for an individual with mental 67229
retardation or developmental disabilities a risk of substantial 67230
self-harm or substantial harm to others if action is not taken67231
within thirty days. An "emergency" may include one or more of the 67232
following situations:67233

       (1) Loss of present residence for any reason, including legal67234
action;67235

       (2) Loss of present caretaker for any reason, including67236
serious illness of the caretaker, change in the caretaker's67237
status, or inability of the caretaker to perform effectively for67238
the individual;67239

       (3) Abuse, neglect, or exploitation of the individual;67240

       (4) Health and safety conditions that pose a serious risk to67241
the individual or others of immediate harm or death;67242

       (5) Change in the emotional or physical condition of the67243
individual that necessitates substantial accommodation that cannot67244
be reasonably provided by the individual's existing caretaker.67245

       (B) If a county board of mental retardation and developmental 67246
disabilities determines that available resources are not 67247
sufficient to meet the needs of all individuals who request67248
programs and services and may be offered the programs and67249
services, it shall establish waiting lists for services. The board 67250
may establish priorities for making placements on its waiting 67251
lists according to an individual's emergency status and shall 67252
establish priorities in accordance with divisions (D) and (E) of 67253
this section.67254

       The individuals who may be placed on a waiting list include67255
individuals with a need for services on an emergency basis and67256
individuals who have requested services for which resources are67257
not available.67258

       Except for an individual who is to receive priority for67259
services pursuant to division (D)(3) of this section, an67260
individual who currently receives a service but would like to67261
change to another service shall not be placed on a waiting list67262
but shall be placed on a service substitution list. The board67263
shall work with the individual, service providers, and all67264
appropriate entities to facilitate the change in service as67265
expeditiously as possible. The board may establish priorities for67266
making placements on its service substitution lists according to67267
an individual's emergency status.67268

       In addition to maintaining waiting lists and service67269
substitution lists, a board shall maintain a long-term service67270
planning registry for individuals who wish to record their67271
intention to request in the future a service they are not67272
currently receiving. The purpose of the registry is to enable the67273
board to document requests and to plan appropriately. The board67274
may not place an individual on the registry who meets the67275
conditions for receipt of services on an emergency basis.67276

       (C) A county board shall establish a separate waiting list67277
for each of the following categories of services, and may67278
establish separate waiting lists within the waiting lists:67279

       (1) Early childhood services;67280

       (2) Educational programs for preschool and school age67281
children;67282

       (3) Adult services;67283

       (4) Service and support administration;67284

       (5) Residential services and supported living;67285

       (6) Transportation services;67286

       (7) Other services determined necessary and appropriate for67287
persons with mental retardation or a developmental disability67288
according to their individual habilitation or service plans;67289

       (8) Family support services provided under section 5126.11 of 67290
the Revised Code.67291

       (D) Except as provided in division (G) of this section, a67292
county board shall do, as priorities, all of the following in67293
accordance with the assessment component, approved under section67294
5123.046 of the Revised Code, of the county board's plan developed67295
under section 5126.054 of the Revised Code:67296

       (1) For the purpose of obtaining additional federal medicaid67297
funds for home and community-based services,and medicaid case67298
management services, and habilitation center services, do both of67299
the following:67300

       (a) Give an individual who is eligible for home and67301
community-based services and meets both of the following67302
requirements priority over any other individual on a waiting list67303
established under division (C) of this section for home and67304
community-based services that include supported living,67305
residential services, or family support services:67306

       (i) Is twenty-two years of age or older;67307

       (ii) Receives supported living or family support services.67308

       (b) Give an individual who is eligible for home and67309
community-based services and meets both of the following67310
requirements priority over any other individual on a waiting list67311
established under division (C) of this section for home and67312
community-based services that include adult services:67313

       (i) Resides in the individual's own home or the home of the67314
individual's family and will continue to reside in that home after67315
enrollment in home and community-based services;67316

       (ii) Receives adult services from the county board.67317

       (2) As federal medicaid funds become available pursuant to67318
division (D)(1) of this section, give an individual who is67319
eligible for home and community-based services and meets any of67320
the following requirements priority for such services over any67321
other individual on a waiting list established under division (C)67322
of this section:67323

       (a) Does not receive residential services or supported67324
living, either needs services in the individual's current living67325
arrangement or will need services in a new living arrangement, and67326
has a primary caregiver who is sixty years of age or older;67327

       (b) Is less than twenty-two years of age and has at least one 67328
of the following service needs that are unusual in scope or67329
intensity:67330

       (i) Severe behavior problems for which a behavior support67331
plan is needed;67332

       (ii) An emotional disorder for which anti-psychotic67333
medication is needed;67334

       (iii) A medical condition that leaves the individual67335
dependent on life-support medical technology;67336

       (iv) A condition affecting multiple body systems for which a67337
combination of specialized medical, psychological, educational, or67338
habilitation services are needed;67339

       (v) A condition the county board determines to be comparable67340
in severity to any condition described in division (D)(2)(b)(i) to67341
(iv) of this section and places the individual at significant risk67342
of institutionalization.67343

       (c) Is twenty-two years of age or older, does not receive67344
residential services or supported living, and is determined by the67345
county board to have intensive needs for home and community-based67346
services on an in-home or out-of-home basis.67347

       (3) In fiscal years 2002 and 2003, give an individual who is67348
eligible for home and community-based services, resides in an67349
intermediate care facility for the mentally retarded or nursing67350
facility, chooses to move to another setting with the help of home67351
and community-based services, and has been determined by the67352
department of mental retardation and developmental disabilities to67353
be capable of residing in the other setting, priority over any67354
other individual on a waiting list established under division (C)67355
of this section for home and community-based services who does not67356
meet these criteria. The department of mental retardation and67357
developmental disabilities shall identify the individuals to67358
receive priority under division (D)(3) of this section, assess the67359
needs of the individuals, and notify the county boards that are to67360
provide the individuals priority under division (D)(3) of this67361
section of the individuals identified by the department and the67362
individuals' assessed needs.67363

       (E) Except as provided in division (G) of this section and 67364
for a number of years and beginning on a date specified in rules 67365
adopted under division (K) of this section, a county board shall 67366
give an individual who is eligible for home and community-based 67367
services, resides in a nursing facility, and chooses to move to 67368
another setting with the help of home and community-based 67369
services, priority over any other individual on a waiting list 67370
established under division (C) of this section for home and 67371
community-based services who does not meet these criteria.67372

       (F) If two or more individuals on a waiting list established67373
under division (C) of this section for home and community-based67374
services have priority for the services pursuant to division67375
(D)(1) or (2) or (E) of this section, a county board may use,67376
until December 31, 20052007, criteria specified in rules adopted 67377
under division (K)(2) of this section in determining the order in 67378
which the individuals with priority will be offered the services.67379
Otherwise, the county board shall offer the home and67380
community-based services to such individuals in the order they are67381
placed on the waiting list.67382

       (G)(1) No individual may receive priority for services67383
pursuant to division (D) or (E) of this section over an individual67384
placed on a waiting list established under division (C) of this67385
section on an emergency status.67386

       (2) No more than four hundred individuals in the state may67387
receive priority for services during the 20042006 and 2005200767388
biennium pursuant to division (D)(2)(b) of this section.67389

       (3) No more than a total of seventy-five individuals in the67390
state may receive priority for services during state fiscal years67391
2002 and 2003 pursuant to division (D)(3) of this section.67392

       (4) No more than forty individuals in the state may receive 67393
priority for services pursuant to division (E) of this section for 67394
each year that priority category is in effect as specified in 67395
rules adopted under division (K) of this section.67396

       (H) Prior to establishing any waiting list under this67397
section, a county board shall develop and implement a policy for67398
waiting lists that complies with this section and rules adopted67399
under division (K) of this section.67400

       Prior to placing an individual on a waiting list, the county67401
board shall assess the service needs of the individual in67402
accordance with all applicable state and federal laws. The county67403
board shall place the individual on the appropriate waiting list67404
and may place the individual on more than one waiting list. The67405
county board shall notify the individual of the individual's67406
placement and position on each waiting list on which the67407
individual is placed.67408

       At least annually, the county board shall reassess the67409
service needs of each individual on a waiting list. If it67410
determines that an individual no longer needs a program or67411
service, the county board shall remove the individual from the67412
waiting list. If it determines that an individual needs a program67413
or service other than the one for which the individual is on the67414
waiting list, the county board shall provide the program or67415
service to the individual or place the individual on a waiting67416
list for the program or service in accordance with the board's67417
policy for waiting lists.67418

       When a program or service for which there is a waiting list67419
becomes available, the county board shall reassess the service67420
needs of the individual next scheduled on the waiting list to67421
receive that program or service. If the reassessment demonstrates67422
that the individual continues to need the program or service, the67423
board shall offer the program or service to the individual. If it67424
determines that an individual no longer needs a program or67425
service, the county board shall remove the individual from the67426
waiting list. If it determines that an individual needs a program67427
or service other than the one for which the individual is on the67428
waiting list, the county board shall provide the program or67429
service to the individual or place the individual on a waiting67430
list for the program or service in accordance with the board's67431
policy for waiting lists. The county board shall notify the67432
individual of the individual's placement and position on the67433
waiting list on which the individual is placed.67434

       (I) A child subject to a determination made pursuant to67435
section 121.38 of the Revised Code who requires the home and67436
community-based services provided through a medicaid component67437
that the department of mental retardation and developmental67438
disabilities administers under section 5111.871 of the Revised67439
Code shall receive services through that medicaid component. For67440
all other services, a child subject to a determination made67441
pursuant to section 121.38 of the Revised Code shall be treated as67442
an emergency by the county boards and shall not be subject to a67443
waiting list.67444

       (J) Not later than the fifteenth day of March of each67445
even-numbered year, each county board shall prepare and submit to67446
the director of mental retardation and developmental disabilities67447
its recommendations for the funding of services for individuals67448
with mental retardation and developmental disabilities and its67449
proposals for reducing the waiting lists for services.67450

       (K)(1) The department of mental retardation and developmental67451
disabilities shall adopt rules in accordance with Chapter 119. of67452
the Revised Code governing waiting lists established under this67453
section. The rules shall include procedures to be followed to67454
ensure that the due process rights of individuals placed on67455
waiting lists are not violated.67456

       (2) As part of the rules adopted under this division, the67457
department shall adopt rules establishing criteria a county board 67458
may use under division (F) of this section in determining the 67459
order in which individuals with priority for home and 67460
community-based services will be offered the services. The rules 67461
shall also specify conditions under which a county board, when 67462
there is no individual with priority for home and community-based 67463
services pursuant to division (D)(1) or (2) or (E) of this section 67464
available and appropriate for the services, may offer the services 67465
to an individual on a waiting list for the services but not given 67466
such priority for the services. The rules adopted under division 67467
(K)(2) of this section shall cease to have effect December 31, 67468
20052007.67469

       (3) As part of the rules adopted under this division, the 67470
department shall adopt rules specifying both of the following for 67471
the priority category established under division (E) of this 67472
section:67473

        (a) The number of years, which shall not exceed five, that 67474
the priority category will be in effect;67475

        (b) The date that the priority category is to go into effect.67476

        (L) The following shall take precedence over the applicable67477
provisions of this section:67478

       (1) Medicaid rules and regulations;67479

       (2) Any specific requirements that may be contained within a67480
medicaid state plan amendment or waiver program that a county67481
board has authority to administer or with respect to which it has67482
authority to provide services, programs, or supports.67483

       Sec. 5126.054.  (A) Each county board of mental retardation67484
and developmental disabilities shall, by resolution, develop a67485
three-calendar year plan that includes the following four67486
components:67487

       (1) An assessment component that includes all of the67488
following:67489

       (a) The number of individuals with mental retardation or67490
other developmental disability residing in the county who need the67491
level of care provided by an intermediate care facility for the67492
mentally retarded, may seek home and community-based services, are67493
given priority for the services pursuant to division (D) of67494
section 5126.042 of the Revised Code; the service needs of those67495
individuals; and the projected annualized cost for services;67496

       (b) The source of funds available to the county board to pay67497
the nonfederal share of medicaid expenditures that the county67498
board is required by division (A) of section 5126.057 of the67499
Revised Code to pay;67500

       (c) Any other applicable information or conditions that the67501
department of mental retardation and developmental disabilities67502
requires as a condition of approving the component under section67503
5123.046 of the Revised Code.67504

       (2) A component that provides for the recruitment, training,67505
and retention of existing and new direct care staff necessary to67506
implement services included in individualized service plans,67507
including behavior management services and health management67508
services such as delegated nursing and other habilitation 67509
services, and protect the health and welfare of individuals67510
receiving services included in the individual's individualized67511
service plan by complying with safeguards for unusual and major67512
unusual incidents, day-to-day program management, and other67513
requirements the department shall identify. A county board shall67514
develop this component in collaboration with providers of67515
medicaid-funded services with which the county board contracts. A67516
county board shall include all of the following in the component:67517

       (a) The source and amount of funds available for the67518
component;67519

       (b) A plan and timeline for implementing the component with67520
the medicaid providers under contract with the county board;67521

       (c) The mechanisms the county board shall use to ensure the67522
financial and program accountability of the medicaid provider's67523
implementation of the component.67524

       (3) A preliminary implementation component that specifies the67525
number of individuals to be provided, during the first year that67526
the plan is in effect, home and community-based services pursuant67527
to the priority given to them under divisions (D)(1) and (2) of67528
section 5126.042 of the Revised Code and the types of home and67529
community-based services the individuals are to receive;67530

       (4) A component that provides for the implementation of67531
habilitation center services, medicaid case management services,67532
and home and community-based services for individuals who begin to67533
receive the services on or after the date the plan is approved67534
under section 5123.046 of the Revised Code. A county board shall67535
include all of the following in the component:67536

       (a) If the department of mental retardation and developmental 67537
disabilities or department of job and family services requires, an 67538
agreement to pay the nonfederal share of medicaid expenditures 67539
that the county board is required by division (A) of section 67540
5126.057 of the Revised Code to pay;67541

       (b) How the services are to be phased in over the period the67542
plan covers, including how the county board will serve individuals67543
on a waiting list established under division (C) of section67544
5126.042 who are given priority status under division (D)(1) of67545
that section;67546

       (c) Any agreement or commitment regarding the county board's67547
funding of home and community-based services that the county board67548
has with the department at the time the county board develops the67549
component;67550

       (d) Assurances adequate to the department that the county67551
board will comply with all of the following requirements:67552

       (i) To provide the types of home and community-based services67553
specified in the preliminary implementation component required by67554
division (A)(3) of this section to at least the number of67555
individuals specified in that component;67556

       (ii) To use any additional funds the county board receives67557
for the services to improve the county board's resource67558
capabilities for supporting such services available in the county67559
at the time the component is developed and to expand the services67560
to accommodate the unmet need for those services in the county;67561

       (iii) To employ a business manager who is either a new67562
employee who has earned at least a bachelor's degree in business67563
administration or a current employee who has the equivalent67564
experience of a bachelor's degree in business administration. If67565
the county board will employ a new employee, the county board67566
shall include in the component a timeline for employing the67567
employee.67568

       (iv) To employ or contract with a medicaid services manager67569
who is either a new employee who has earned at least a bachelor's67570
degree or a current employee who has the equivalent experience of67571
a bachelor's degree. If the county board will employ a new67572
employee, the county board shall include in the component a67573
timeline for employing the employee. Two or three county boards67574
that have a combined total enrollment in county board services not67575
exceeding one thousand individuals as determined pursuant to67576
certifications made under division (B) of section 5126.12 of the67577
Revised Code may satisfy this requirement by sharing the services67578
of a medicaid services manager or using the services of a medicaid67579
services manager employed by or under contract with a regional67580
council that the county boards establish under section 5126.13 of67581
the Revised Code.67582

       (e) An agreement to comply with the method, developed by67583
rules adopted under section 5123.0413 of the Revised Code, of67584
paying for extraordinary costs, including extraordinary costs for67585
services to individuals with mental retardation or other67586
developmental disability, and ensuring the availability of67587
adequate funds in the event a county property tax levy for67588
services for individuals with mental retardation or other67589
developmental disability fails;67590

       (f) Programmatic and financial accountability measures and67591
projected outcomes expected from the implementation of the plan;67592

       (g) Any other applicable information or conditions that the67593
department requires as a condition of approving the component67594
under section 5123.046 of the Revised Code.67595

       (B) For the purpose of obtaining the department's approval67596
under section 5123.046 of the Revised Code of the plan the county67597
board develops under division (A) of this section, a county board67598
shall do all of the following:67599

       (1) Submit the components required by divisions (A)(1) and67600
(2) of this section to the department not later than August 1,67601
2001;67602

       (2) Submit the component required by division (A)(3) of this67603
section to the department not later than January 31, 2002;67604

       (3) Submit the component required by division (A)(4) of this67605
section to the department not later than July 1, 2002.67606

       (C) A county board whose plan developed under division (A) of 67607
this section is approved by the department under section 5123.046 67608
of the Revised Code shall update and renew the plan in accordance 67609
with a schedule the department shall develop.67610

       Sec. 5126.055.  (A) Except as provided in section 5126.056 of 67611
the Revised Code, a county board of mental retardation and67612
developmental disabilities has medicaid local administrative67613
authority to, and shall, do all of the following for an individual67614
with mental retardation or other developmental disability who67615
resides in the county that the county board serves and seeks or67616
receives home and community-based services:67617

       (1) Perform assessments and evaluations of the individual. As 67618
part of the assessment and evaluation process, the county board67619
shall do all of the following:67620

       (a) Make a recommendation to the department of mental67621
retardation and developmental disabilities on whether the67622
department should approve or deny the individual's application for67623
the services, including on the basis of whether the individual67624
needs the level of care an intermediate care facility for the67625
mentally retarded provides;67626

       (b) If the individual's application is denied because of the67627
county board's recommendation and the individual requests a67628
hearing under section 5101.35 of the Revised Code, present, with67629
the department of mental retardation and developmental67630
disabilities or department of job and family services, whichever67631
denies the application, the reasons for the recommendation and67632
denial at the hearing;67633

       (c) If the individual's application is approved, recommend to 67634
the departments of mental retardation and developmental67635
disabilities and job and family services the services that should67636
be included in the individual's individualized service plan and,67637
if either department approves, reduces, denies, or terminates a67638
service included in the individual's individualized service plan67639
under section 5111.871 of the Revised Code because of the county67640
board's recommendation, present, with the department that made the67641
approval, reduction, denial, or termination, the reasons for the67642
recommendation and approval, reduction, denial, or termination at67643
a hearing under section 5101.35 of the Revised Code.67644

       (2) If the individual has been identified by the department67645
of mental retardation and developmental disabilities as an67646
individual to receive priority for home and community-based67647
services pursuant to division (D)(3) of section 5126.042 of the67648
Revised Code, assist the department in expediting the transfer of67649
the individual from an intermediate care facility for the mentally67650
retarded or nursing facility to the home and community-based67651
services;67652

       (3) In accordance with the rules adopted under section67653
5126.046 of the Revised Code, perform the county board's duties67654
under that section regarding assisting the individual's right to67655
choose a qualified and willing provider of the services and, at a67656
hearing under section 5101.35 of the Revised Code, present67657
evidence of the process for appropriate assistance in choosing67658
providers;67659

       (4) Unless the county board provides the services under67660
division (A)(5) of this section, contract with the person or67661
government entity the individual chooses in accordance with67662
section 5126.046 of the Revised Code to provide the services if67663
the person or government entity is qualified and agrees to provide67664
the services. The contract shall contain all the provisions67665
required by section 5126.035 of the Revised Code and require the67666
provider to agree to furnish, in accordance with the provider's67667
medicaid provider agreement and for the authorized reimbursement67668
rate, the services the individual requires.67669

       (5) If the county board is certified under section 5123.04567670
5123.16 of the Revised Code to provide the services and agrees to67671
provide the services to the individual and the individual chooses67672
the county board to provide the services, furnish, in accordance67673
with the county board's medicaid provider agreement and for the67674
authorized reimbursement rate, the services the individual67675
requires;67676

       (6) Monitor the services provided to the individual and67677
ensure the individual's health, safety, and welfare. The67678
monitoring shall include quality assurance activities. If the67679
county board provides the services, the department of mental67680
retardation and developmental disabilities shall also monitor the67681
services.67682

       (7) Develop, with the individual and the provider of the67683
individual's services, an effective individualized service plan67684
that includes coordination of services, recommend that the67685
departments of mental retardation and developmental disabilities67686
and job and family services approve the plan, and implement the67687
plan unless either department disapproves it;67688

       (8) Have an investigative agent conduct investigations under67689
section 5126.313 of the Revised Code that concern the individual;67690

       (9) Have a service and support administrator perform the67691
duties under division (B)(9) of section 5126.15 of the Revised67692
Code that concern the individual.67693

       (B) Except as provided in section 5126.056 of the Revised67694
Code, a county board has medicaid local administrative authority67695
to, and shall, do all of the following for an individual with67696
mental retardation or other developmental disability who resides67697
in the county that the county board serves and seeks or receives67698
medicaid case management services or habilitation center services,67699
other than habilitation center services for which a school67700
district is required by division (E) of section 5111.041 of the67701
Revised Code to pay the nonfederal share:67702

       (1) Perform assessments and evaluations of the individual for 67703
the purpose of recommending to the departments of mental67704
retardation and developmental disabilities and job and family67705
services the services that should be included in the individual's67706
individualized service plan;67707

       (2) If the department of mental retardation and developmental 67708
disabilities or department of job and family services approves, 67709
reduces, denies, or terminates a service included in the67710
individual's individualized service plan under section 5111.041 or67711
5111.042 of the Revised Code because of the county board's67712
recommendation under division (B)(1) of this section, present,67713
with the department that made the approval, reduction, denial, or67714
termination, the reasons for the recommendation and approval, 67715
reduction, denial, or termination at a hearing under section 67716
5101.35 of the Revised Code and inform the individual that the 67717
individual may file a complaint with the county board under 67718
section 5126.06 of the Revised Code at the same time the 67719
individual pursues an appeal under section 5101.35 of the Revised 67720
Code;67721

       (3) In accordance with rules the departments of mental67722
retardation and developmental disabilities and job and family67723
services shall adopt in accordance with Chapter 119. of the67724
Revised Code governing the process for individuals to choose67725
providers of medicaid case management services and habilitation67726
center services, assist the individual in choosing the provider of67727
the services. The rules shall provide for both of the following:67728

       (a) The county board providing the individual up-to-date67729
information about qualified providers that the department of67730
mental retardation and developmental disabilities shall make67731
available to the county board;67732

       (b) If the individual chooses a provider who is qualified and 67733
willing to provide the services but is denied that provider, the 67734
individual receiving timely notice that the individual may request 67735
a hearing under section 5101.35 of the Revised Code and, at the 67736
hearing, the county board presenting evidence of the process for 67737
appropriate assistance in choosing providers.67738

       (4) Unless the county board provides the services under67739
division (B)(5) of this section, contract with the person or67740
government entity that the individual chooses in accordance with67741
the rules adopted under division (B)(3) of this section to provide67742
the services if the person or government entity is qualified and67743
agrees to provide the services. The contract shall contain all the 67744
provisions required by section 5126.035 of the Revised Code and 67745
require the provider to agree to furnish, in accordance with the 67746
provider's medicaid provider agreement and for the authorized67747
reimbursement rate, the services the individual requires.67748

       (5) If the county board is certified under section 5123.04167749
of the Revised Code to provide the services and agrees to provide67750
the services to the individual and the individual chooses the67751
county board to provide the services, furnish, in accordance with67752
the county board's medicaid provider agreement and for the67753
authorized reimbursement rate, the services the individual67754
requires;67755

       (6) Monitor the services provided to the individual. The67756
monitoring shall include quality assurance activities. If the67757
county board provides the services, the department of mental67758
retardation and developmental disabilities shall also monitor the67759
services.67760

       (7) Develop with the individual and the provider of the67761
individual's services, and with the approval of the departments of67762
mental retardation and developmental disabilities and job and67763
family services, implement an effective plan for coordinating the67764
services in accordance with the individual's approved67765
individualized service plan;67766

       (8) Have an investigative agent conduct investigations under67767
section 5126.313 of the Revised Code that concern the individual;67768

       (9) Have a service and support administrator perform the67769
duties under division (B)(9) of section 5126.15 of the Revised67770
Code that concern the individual.67771

       (C) A county board shall perform its medicaid local67772
administrative authority under this section in accordance with all67773
of the following:67774

       (1) The county board's plan that the department of mental67775
retardation and developmental disabilities approves under section67776
5123.046 of the Revised Code;67777

       (2) All applicable federal and state laws;67778

       (3) All applicable policies of the departments of mental67779
retardation and developmental disabilities and job and family67780
services and the United States department of health and human67781
services;67782

       (4) The department of job and family services' supervision67783
under its authority under section 5111.01 of the Revised Code to67784
act as the single state medicaid agency;67785

       (5) The department of mental retardation and developmental67786
disabilities' oversight.67787

       (D)(C) The departments of mental retardation and 67788
developmental disabilities and job and family services shall 67789
communicate with and provide training to county boards regarding 67790
medicaid local administrative authority granted by this section. 67791
The communication and training shall include issues regarding 67792
audit protocols and other standards established by the United 67793
States department of health and human services that the 67794
departments determine appropriate for communication and training. 67795
County boards shall participate in the training. The departments 67796
shall assess the county board's compliance against uniform 67797
standards that the departments shall establish.67798

       (E)(D) A county board may not delegate its medicaid local67799
administrative authority granted under this section but may67800
contract with a person or government entity, including a council67801
of governments, for assistance with its medicaid local67802
administrative authority. A county board that enters into such a67803
contract shall notify the director of mental retardation and67804
developmental disabilities. The notice shall include the tasks and67805
responsibilities that the contract gives to the person or67806
government entity. The person or government entity shall comply in 67807
full with all requirements to which the county board is subject67808
regarding the person or government entity's tasks and67809
responsibilities under the contract. The county board remains67810
ultimately responsible for the tasks and responsibilities.67811

       (F)(E) A county board that has medicaid local administrative67812
authority under this section shall, through the departments of67813
mental retardation and developmental disabilities and job and67814
family services, reply to, and cooperate in arranging compliance67815
with, a program or fiscal audit or program violation exception67816
that a state or federal audit or review discovers. The department67817
of job and family services shall timely notify the department of67818
mental retardation and developmental disabilities and the county67819
board of any adverse findings. After receiving the notice, the67820
county board, in conjunction with the department of mental67821
retardation and developmental disabilities, shall cooperate fully67822
with the department of job and family services and timely prepare67823
and send to the department a written plan of correction or67824
response to the adverse findings. The county board is liable for67825
any adverse findings that result from an action it takes or fails67826
to take in its implementation of medicaid local administrative67827
authority.67828

       (G)(F) If the department of mental retardation and67829
developmental disabilities or department of job and family67830
services determines that a county board's implementation of its67831
medicaid local administrative authority under this section is67832
deficient, the department that makes the determination shall67833
require that county board do the following:67834

       (1) If the deficiency affects the health, safety, or welfare67835
of an individual with mental retardation or other developmental67836
disability, correct the deficiency within twenty-four hours;67837

       (2) If the deficiency does not affect the health, safety, or67838
welfare of an individual with mental retardation or other67839
developmental disability, receive technical assistance from the67840
department or submit a plan of correction to the department that67841
is acceptable to the department within sixty days and correct the67842
deficiency within the time required by the plan of correction.67843

       Sec. 5126.056. (A) The department of mental retardation and67844
developmental disabilities shall take action under division (B) of67845
this section against a county board of mental retardation and67846
developmental disabilities if any of the following are the case:67847

       (1) The county board fails to submit to the department all67848
the components of its three-year plan required by section 5126.05467849
of the Revised Code within the time required by division (B) of67850
that section.67851

       (2) The department disapproves the county board's three-year67852
plan under section 5123.046 of the Revised Code.67853

       (3) The county board fails, as required by division (C) of67854
section 5126.054 of the Revised Code, to update and renew its67855
three-year plan in accordance with a schedule the department67856
develops under that section.67857

       (4) The county board fails to implement its initial or67858
renewed three-year plan approved by the department.67859

       (5) The county board fails to correct a deficiency within the 67860
time required by division (G)(F) of section 5126.055 of the67861
Revised Code to the satisfaction of the department.67862

       (6) The county board fails to submit an acceptable plan of67863
correction to the department within the time required by division67864
(G)(F)(2) of section 5126.055 of the Revised Code.67865

       (B) If required by division (A) of this section to take67866
action against a county board, the department shall issue an order67867
terminating the county board's medicaid local administrative67868
authority over all or part of home and community-based services,67869
medicaid case management services, habilitation center services,67870
all or part of two of those services, or all or part of all three67871
both of those services. The department shall provide a copy of the67872
order to the board of county commissioners, senior probate judge, 67873
county auditor, and president and superintendent of the county 67874
board. The department shall specify in the order the medicaid 67875
local administrative authority that the department is terminating, 67876
the reason for the termination, and the county board's option and67877
responsibilities under this division.67878

       A county board whose medicaid local administrative authority67879
is terminated may, not later than thirty days after the department67880
issues the termination order, recommend to the department that67881
another county board that has not had any of its medicaid local67882
administrative authority terminated or another entity the67883
department approves administer the services for which the county67884
board's medicaid local administrative authority is terminated. The67885
department may contract with the other county board or entity to67886
administer the services. If the department enters into such a67887
contract, the county board shall adopt a resolution giving the67888
other county board or entity full medicaid local administrative67889
authority over the services that the other county board or entity67890
is to administer. The other county board or entity shall be known67891
as the contracting authority.67892

       If the department rejects the county board's recommendation67893
regarding a contracting authority, the county board may appeal the67894
rejection under section 5123.043 of the Revised Code.67895

       If the county board does not submit a recommendation to the67896
department regarding a contracting authority within the required67897
time or the department rejects the county board's recommendation67898
and the rejection is upheld pursuant to an appeal, if any, under67899
section 5123.043 of the Revised Code, the department shall appoint67900
an administrative receiver to administer the services for which67901
the county board's medicaid local administrative authority is67902
terminated. To the extent necessary for the department to appoint67903
an administrative receiver, the department may utilize employees67904
of the department, management personnel from another county board,67905
or other individuals who are not employed by or affiliated with in67906
any manner a person that provides home and community-based67907
services,or medicaid case management services, or habilitation67908
center services pursuant to a contract with any county board. The67909
administrative receiver shall assume full administrative67910
responsibility for the county board's services for which the67911
county board's medicaid local administrative authority is67912
terminated.67913

       The contracting authority or administrative receiver shall67914
develop and submit to the department a plan of correction to67915
remediate the problems that caused the department to issue the67916
termination order. If, after reviewing the plan, the department67917
approves it, the contracting authority or administrative receiver67918
shall implement the plan.67919

       The county board shall transfer control of state and federal67920
funds it is otherwise eligible to receive for the services for67921
which the county board's medicaid local administrative authority67922
is terminated and funds the county board may use under division67923
(B) of section 5126.057 of the Revised Code to pay the nonfederal67924
share of the services that the county board is required by67925
division (A) of that section to pay. The county board shall67926
transfer control of the funds to the contracting authority or67927
administrative receiver administering the services. The amount the 67928
county board shall transfer shall be the amount necessary for the 67929
contracting authority or administrative receiver to fulfill its 67930
duties in administering the services, including its duties to pay 67931
its personnel for time worked, travel, and related matters. If the 67932
county board fails to make the transfer, the department may67933
withhold the state and federal funds from the county board and67934
bring a mandamus action against the county board in the court of67935
common pleas of the county served by the county board or in the67936
Franklin county court of common pleas. The mandamus action may not 67937
require that the county board transfer any funds other than the 67938
funds the county board is required by division (B) of this section 67939
to transfer.67940

       The contracting authority or administrative receiver has the67941
right to authorize the payment of bills in the same manner that67942
the county board may authorize payment of bills under this chapter67943
and section 319.16 of the Revised Code.67944

       Sec. 5126.057. (A) A county board of mental retardation and67945
developmental disabilities that has medicaid local administrative67946
authority under division (A) of section 5126.055 of the Revised67947
Code for home and community-based services shall pay the67948
nonfederal share of medicaid expenditures for such services67949
provided to an individual with mental retardation or other67950
developmental disability who the county board determines under67951
section 5126.041 of the Revised Code is eligible for county board67952
services unless division (C)(B)(2) or (3) of section 5123.047 of 67953
the Revised Code requires the department of mental retardation and67954
developmental disabilities to pay the nonfederal share.67955

       A county board that has medicaid local administrative67956
authority under division (B) of section 5126.055 of the Revised67957
Code forprovides medicaid case management services shall pay the67958
nonfederal share of medicaid expenditures for such services67959
provided to an individual with mental retardation or other67960
developmental disability who the county board determines under67961
section 5126.041 of the Revised Code is eligible for county board67962
services unless division (B)(2) of section 5123.047 of the Revised67963
Code requires the department of mental retardation and67964
developmental disabilities to pay the nonfederal share.67965

       A county board shall pay the nonfederal share of medicaid67966
expenditures for habilitation center services when required to do67967
so by division (D) of section 5111.041 of the Revised Code.67968

       (B) A county board may use the following funds to pay the67969
nonfederal share of the services that the county board is required67970
by division (A) of this section to pay:67971

       (1) To the extent consistent with the levy that generated the 67972
taxes, the following taxes:67973

       (a) Taxes levied pursuant to division (L) of section 5705.1967974
of the Revised Code and section 5705.222 of the Revised Code;67975

       (b) Taxes levied under section 5705.191 of the Revised Code67976
that the board of county commissioners allocates to the county67977
board to pay the nonfederal share of the services.67978

       (2) Funds that the department of mental retardation and67979
developmental disabilities distributes to the county board under67980
sections 5126.11, 5126.12, 5126.15, 5126.18, and 5126.44 of the67981
Revised Code;67982

       (3) Funds that the department allocates to the county board67983
for habilitation center services provided under section 5111.04167984
of the Revised Code;67985

       (4) Earned federal revenue funds the county board receives67986
for medicaid services the county board provides pursuant to the67987
county board's valid medicaid provider agreement.67988

       (C) If by December 31, 2001, the United States secretary of67989
health and human services approves at least five hundred more67990
slots for home and community-based services for calendar year 200267991
than were available for calendar year 2001, each county board67992
shall provide, by the last day of calendar year 2001, assurances67993
to the department of mental retardation and developmental67994
disabilities that the county board will have for calendar year67995
2002 at least one-third of the value of one-half, effective mill67996
levied in the county the preceding year available to pay the67997
nonfederal share of the services that the county board is required67998
by division (A) of this section to pay.67999

       If by December 31, 2002, the United States secretary approves68000
at least five hundred more slots for home and community-based68001
services for calendar year 2003 than were available for calendar68002
year 2002, each county board shall provide, by the last day of68003
calendar year 2002, assurances to the department that the county68004
board will have for calendar year 2003 at least two-thirds of the68005
value of one-half, effective mill levied in the county the68006
preceding year available to pay the nonfederal share of the68007
services that the county board is required by division (A) of this68008
section to pay.68009

       If by December 31, 2003, the United States secretary approves68010
at least five hundred more slots for home and community-based68011
services for calendar year 2004 than were available for calendar68012
year 2003, each county board shall provide, by the last day of68013
calendar year 2003 and each calendar year thereafter, assurances68014
to the department that the county board will have for calendar68015
year 2004 and each calendar year thereafter at least the value of68016
one-half, effective mill levied in the county the preceding year68017
available to pay the nonfederal share of the services that the68018
county board is required by division (A) of this section to pay.68019

       (D) Each year, each county board shall adopt a resolution68020
specifying the amount of funds it will use in the next year to pay68021
the nonfederal share of the services that the county board is68022
required by division (A) of this section to pay. The amount68023
specified shall be adequate to assure that the services will be68024
available in the county in a manner that conforms to all68025
applicable state and federal laws. A county board shall state in68026
its resolution that the payment of the nonfederal share represents68027
an ongoing financial commitment of the county board. A county68028
board shall adopt the resolution in time for the county auditor to68029
make the determination required by division (E) of this section.68030

       (E) Each year, a county auditor shall determine whether the68031
amount of funds a county board specifies in the resolution it68032
adopts under division (D) of this section will be available in the68033
following year for the county board to pay the nonfederal share of68034
the services that the county board is required by division (A) of68035
this section to pay. The county auditor shall make the68036
determination not later than the last day of the year before the68037
year in which the funds are to be used.68038

       Sec. 5126.12.  (A) As used in this section:68039

       (1) "Approved school age class" means a class operated by a68040
county board of mental retardation and developmental disabilities68041
and funded by the department of education under section 3317.20 of 68042
the Revised Code.68043

       (2) "Approved preschool unit" means a class or unit operated68044
by a county board of mental retardation and developmental68045
disabilities and approved under division (B) of section 3317.05 of 68046
the Revised Code.68047

       (3) "Active treatment" means a continuous treatment program,68048
which includes aggressive, consistent implementation of a program68049
of specialized and generic training, treatment, health services,68050
and related services, that is directed toward the acquisition of68051
behaviors necessary for an individual with mental retardation or68052
other developmental disability to function with as much68053
self-determination and independence as possible and toward the68054
prevention of deceleration, regression, or loss of current optimal68055
functional status.68056

       (4) "Eligible for active treatment" means that an individual68057
with mental retardation or other developmental disability resides68058
in an intermediate care facility for the mentally retarded68059
certified under Title XIX of the "Social Security Act," 79 Stat. 68060
286 (1965), 42 U.S.C. 1396, as amended; resides in a state68061
institution operated by the department of mental retardation and68062
developmental disabilities; or is enrolled in home and68063
community-based services.68064

       (5) "Community alternative funding system" means the program68065
under which habilitation center services are reimbursed under the 68066
medicaid program pursuant to section 5111.041 of the Revised Code68067
and rules adopted under that section.68068

       (6) "Traditional adult services" means vocational and68069
nonvocational activities conducted within a sheltered workshop or68070
adult activity center or supportive home services.68071

       (B) Each county board of mental retardation and developmental 68072
disabilities shall certify to the director of mental retardation 68073
and developmental disabilities all of the following:68074

       (1) On or before the fifteenth day of October, the average68075
daily membership for the first full week of programs and services68076
during October receiving:68077

       (a) Early childhood services provided pursuant to section68078
5126.05 of the Revised Code for children who are less than three68079
years of age on the thirtieth day of September of the academic68080
year;68081

       (b) Special education for handicapped children in approved68082
school age classes;68083

       (c) Adult services for persons sixteen years of age and older 68084
operated pursuant to section 5126.05 and division (B) of section 68085
5126.051 of the Revised Code. Separate counts shall be made for68086
the following:68087

       (i) Persons enrolled in traditional adult services who are68088
eligible for but not enrolled in active treatment under the68089
community alternative funding system;68090

       (ii) Persons enrolled in traditional adult services who are68091
eligible for and enrolled in active treatment under the community68092
alternative funding system;68093

       (iii) Persons enrolled in traditional adult services but who68094
are not eligible for active treatment under the community68095
alternative funding system;68096

       (iv) Persons participating in community employment services.68097
To be counted as participating in community employment services, a68098
person must have spent an average of no less than ten hours per68099
week in that employment during the preceding six months.68100

       (d) Other programs in the county for individuals with mental68101
retardation and developmental disabilities that have been approved68102
for payment of subsidy by the department of mental retardation and68103
developmental disabilities.68104

       The membership in each such program and service in the county68105
shall be reported on forms prescribed by the department of mental68106
retardation and developmental disabilities.68107

       The department of mental retardation and developmental68108
disabilities shall adopt rules defining full-time equivalent68109
enrollees and for determining the average daily membership68110
therefrom, except that certification of average daily membership68111
in approved school age classes shall be in accordance with rules68112
adopted by the state board of education. The average daily68113
membership figure shall be determined by dividing the amount68114
representing the sum of the number of enrollees in each program or68115
service in the week for which the certification is made by the68116
number of days the program or service was offered in that week. No68117
enrollee may be counted in average daily membership for more than68118
one program or service.68119

       (2) By the fifteenth day of December, the number of children68120
enrolled in approved preschool units on the first day of December;68121

       (3) On or before the thirtieth day of March, an itemized68122
report of all income and operating expenditures for the68123
immediately preceding calendar year, in the format specified by68124
the department of mental retardation and developmental68125
disabilities;68126

       (4) By the fifteenth day of February, a report of the total68127
annual cost per enrollee for operation of programs and services in68128
the preceding calendar year. The report shall include a grand68129
total of all programs operated, the cost of the individual68130
programs, and the sources of funds applied to each program.68131

       (5) That each required certification and report is in68132
accordance with rules established by the department of mental68133
retardation and developmental disabilities and the state board of68134
education for the operation and subsidization of the programs and68135
services.68136

       (C) To compute payments under this section to the board for68137
the fiscal year, the department of mental retardation and68138
developmental disabilities shall use the certification of average68139
daily membership required by division (B)(1) of this section68140
exclusive of the average daily membership in any approved school68141
age class and the number in any approved preschool unit.68142

       (D) The department shall pay each county board for each68143
fiscal year an amount equal to nine hundred fifty dollars times68144
the certified number of persons who on the first day of December68145
of the academic year are under three years of age and are not in68146
an approved preschool unit. For persons who are at least age68147
sixteen and are not in an approved school age class, the68148
department shall pay each county board for each fiscal year the68149
following amounts:68150

       (1) One thousand dollars times the certified average daily68151
membership of persons enrolled in traditional adult services who68152
are eligible for but not enrolled in active treatment under the68153
community alternative funding system;68154

       (2) One thousand two hundred dollars times the certified68155
average daily membership of persons enrolled in traditional adult68156
services who are eligible for and enrolled in active treatment68157
under the community alternative funding system;68158

       (3) No less than one thousand five hundred dollars times the68159
certified average daily membership of persons enrolled in68160
traditional adult services but who are not eligible for active68161
treatment under the community alternative funding system;68162

       (4) No less than one thousand five hundred dollars times the68163
certified average daily membership of persons participating in68164
community employment services.68165

       (E) The department shall distribute this subsidy to county68166
boards in quarterly installments of equal amounts. The68167
installments shall be made not later than the thirtieth day of 68168
September, the thirty-first day of December, the thirty-first day 68169
of March, and the thirtieth day of June.68170

       (F) The director of mental retardation and developmental68171
disabilities shall make efforts to obtain increases in the68172
subsidies for early childhood services and adult services so that68173
the amount of the subsidies is equal to at least fifty per cent of68174
the statewide average cost of those services minus any applicable68175
federal reimbursements for those services. The director shall68176
advise the director of budget and management of the need for any68177
such increases when submitting the biennial appropriations request68178
for the department.68179

       (G) In determining the reimbursement of a county board for68180
the provision of service and support administration, family68181
support services, and other services required or approved by the68182
director for which children three through twenty-one years of age68183
are eligible, the department shall include the average daily68184
membership in approved school age or preschool units. The68185
department, in accordance with this section and upon receipt and68186
approval of the certification required by this section and any68187
other information it requires to enable it to determine a board's68188
payments, shall pay the agency providing the specialized training68189
the amounts payable under this section.68190

       Sec. 5139.01.  (A) As used in this chapter:68191

       (1) "Commitment" means the transfer of the physical custody68192
of a child or youth from the court to the department of youth68193
services.68194

       (2) "Permanent commitment" means a commitment that vests68195
legal custody of a child in the department of youth services.68196

       (3) "Legal custody," insofar as it pertains to the status68197
that is created when a child is permanently committed to the68198
department of youth services, means a legal status in which the68199
department has the following rights and responsibilities: the68200
right to have physical possession of the child; the right and duty68201
to train, protect, and control the child; the responsibility to68202
provide the child with food, clothing, shelter, education, and68203
medical care; and the right to determine where and with whom the68204
child shall live, subject to the minimum periods of, or periods68205
of, institutional care prescribed in sections 2152.13 to 2152.1868206
of the Revised Code; provided, that these rights and68207
responsibilities are exercised subject to the powers, rights,68208
duties, and responsibilities of the guardian of the person of the68209
child, and subject to any residual parental rights and68210
responsibilities.68211

       (4) Unless the context requires a different meaning,68212
"institution" means a state facility that is created by the68213
general assembly and that is under the management and control of68214
the department of youth services or a private entity with which68215
the department has contracted for the institutional care and68216
custody of felony delinquents.68217

       (5) "Full-time care" means care for twenty-four hours a day68218
for over a period of at least two consecutive weeks.68219

       (6) "Placement" means the conditional release of a child68220
under the terms and conditions that are specified by the68221
department of youth services. The department shall retain legal68222
custody of a child released pursuant to division (C) of section68223
2152.22 of the Revised Code or division (C) of section 5139.06 of68224
the Revised Code until the time that it discharges the child or68225
until the legal custody is terminated as otherwise provided by68226
law.68227

       (7) "Home placement" means the placement of a child in the68228
home of the child's parent or parents or in the home of the68229
guardian of the child's person.68230

       (8) "Discharge" means that the department of youth services'68231
legal custody of a child is terminated.68232

       (9) "Release" means the termination of a child's stay in an68233
institution and the subsequent period during which the child68234
returns to the community under the terms and conditions of68235
supervised release.68236

       (10) "Delinquent child" has the same meaning as in section68237
2152.02 of the Revised Code.68238

       (11) "Felony delinquent" means any child who is at least ten 68239
years of age but less than eighteen years of age and who is68240
adjudicated a delinquent child for having committed an act that if68241
committed by an adult would be a felony. "Felony delinquent"68242
includes any adult who is between the ages of eighteen and68243
twenty-one and who is in the legal custody of the department of68244
youth services for having committed an act that if committed by an68245
adult would be a felony.68246

       (12) "Juvenile traffic offender" has the same meaning as in68247
section 2152.02 of the Revised Code.68248

       (13) "Public safety beds" means all of the following:68249

       (a) Felony delinquents who have been committed to the68250
department of youth services for the commission of an act, other68251
than a violation of section 2911.01 or 2911.11 of the Revised68252
Code, that is a category one offense or a category two offense and68253
who are in the care and custody of an institution or have been68254
diverted from care and custody in an institution and placed in a68255
community corrections facility;68256

       (b) Felony delinquents who, while committed to the department 68257
of youth services and in the care and custody of an institution or 68258
a community corrections facility, are adjudicated delinquent 68259
children for having committed in that institution or community 68260
corrections facility an act that if committed by an adult would be 68261
a misdemeanor or a felony;68262

       (c) Children who satisfy all of the following:68263

       (i) They are at least ten years of age but less than eighteen 68264
years of age.68265

       (ii) They are adjudicated delinquent children for having68266
committed acts that if committed by an adult would be a felony.68267

       (iii) They are committed to the department of youth services68268
by the juvenile court of a county that has had one-tenth of one68269
per cent or less of the statewide adjudications for felony68270
delinquents as averaged for the past four fiscal years.68271

       (iv) They are in the care and custody of an institution or a68272
community corrections facility.68273

       (d) Felony delinquents who, while committed to the department 68274
of youth services and in the care and custody of an institution 68275
are serving disciplinary time for having committed an act 68276
described in division (A)(19)(18)(a), (b), or (c) of this section, 68277
and who have been institutionalized or institutionalized in a 68278
secure facility for the minimum period of time specified in 68279
divisions (A)(1)(b) to (e) of section 2152.16 of the Revised Code.68280

       (e) Felony delinquents who are subject to and serving a68281
three-year period of commitment order imposed by a juvenile court68282
pursuant to divisions (A) and (B) of section 2152.17 of the68283
Revised Code for an act, other than a violation of section 2911.1168284
of the Revised Code, that would be a category one offense or68285
category two offense if committed by an adult.68286

       (f) Felony delinquents who are described in divisions68287
(A)(13)(a) to (e) of this section, who have been granted a68288
judicial release to court supervision under division (B) of68289
section 2152.22 of the Revised Code or a judicial release to the68290
department of youth services supervision under division (C) of68291
that section from the commitment to the department of youth68292
services for the act described in divisions (A)(13)(a) to (e) of68293
this section, who have violated the terms and conditions of that68294
release, and who, pursuant to an order of the court of the county68295
in which the particular felony delinquent was placed on release68296
that is issued pursuant to division (D) of section 2152.22 of the68297
Revised Code, have been returned to the department for68298
institutionalization or institutionalization in a secure facility.68299

       (g) Felony delinquents who have been committed to the custody 68300
of the department of youth services, who have been granted68301
supervised release from the commitment pursuant to section 5139.5168302
of the Revised Code, who have violated the terms and conditions of68303
that supervised release, and who, pursuant to an order of the68304
court of the county in which the particular child was placed on68305
supervised release issued pursuant to division (F) of section68306
5139.52 of the Revised Code, have had the supervised release68307
revoked and have been returned to the department for68308
institutionalization. A felony delinquent described in this68309
division shall be a public safety bed only for the time during68310
which the felony delinquent is institutionalized as a result of68311
the revocation subsequent to the initial thirty-day period of68312
institutionalization required by division (F) of section 5139.5268313
of the Revised Code.68314

       (14) Unless the context requires a different meaning,68315
"community corrections facility" means a county or multicounty68316
rehabilitation center for felony delinquents who have been68317
committed to the department of youth services and diverted from68318
care and custody in an institution and placed in the68319
rehabilitation center pursuant to division (E) of section 5139.3668320
of the Revised Code.68321

       (15) "Secure facility" means any facility that is designed68322
and operated to ensure that all of its entrances and exits are68323
under the exclusive control of its staff and to ensure that,68324
because of that exclusive control, no child who has been68325
institutionalized in the facility may leave the facility without68326
permission or supervision.68327

       (16) "Community residential program" means a program that68328
satisfies both of the following:68329

       (a) It is housed in a building or other structure that has no 68330
associated major restraining construction, including, but not68331
limited to, a security fence.68332

       (b) It provides twenty-four-hour care, supervision, and68333
programs for felony delinquents who are in residence.68334

       (17) "Category one offense" and "category two offense" have68335
the same meanings as in section 2151.26 of the Revised Code.68336

       (18) "Disciplinary time" means additional time that the68337
department of youth services requires a felony delinquent to serve68338
in an institution, that delays the felony delinquent's planned 68339
release, and that the department imposes upon the felony 68340
delinquent following the conduct of an internal due process 68341
hearing for having committed any of the following acts while 68342
committed to the department and in the care and custody of an68343
institution:68344

       (a) An act that if committed by an adult would be a felony;68345

       (b) An act that if committed by an adult would be a68346
misdemeanor;68347

       (c) An act that is not described in division (A)(18)(a) or68348
(b) of this section and that violates an institutional rule of68349
conduct of the department.68350

       (19) "Unruly child" has the same meaning as in section68351
2151.022 of the Revised Code.68352

       (20) "Revocation" means the act of revoking a child's68353
supervised release for a violation of a term or condition of the68354
child's supervised release in accordance with section 5139.52 of68355
the Revised Code.68356

       (21) "Release authority" means the release authority of the68357
department of youth services that is established by section68358
5139.50 of the Revised Code.68359

       (22) "Supervised release" means the event of the release of a68360
child under this chapter from an institution and the period after68361
that release during which the child is supervised and assisted by68362
an employee of the department of youth services under specific68363
terms and conditions for reintegration of the child into the68364
community.68365

       (23) "Victim" means the person identified in a police report,68366
complaint, or information as the victim of an act that would have68367
been a criminal offense if committed by an adult and that provided68368
the basis for adjudication proceedings resulting in a child's68369
commitment to the legal custody of the department of youth68370
services.68371

       (24) "Victim's representative" means a member of the victim's68372
family or another person whom the victim or another authorized68373
person designates in writing, pursuant to section 5139.56 of the68374
Revised Code, to represent the victim with respect to proceedings68375
of the release authority of the department of youth services and68376
with respect to other matters specified in that section.68377

       (25) "Member of the victim's family" means a spouse, child,68378
stepchild, sibling, parent, stepparent, grandparent, other68379
relative, or legal guardian of a child but does not include a68380
person charged with, convicted of, or adjudicated a delinquent68381
child for committing a criminal or delinquent act against the68382
victim or another criminal or delinquent act arising out of the68383
same conduct, criminal or delinquent episode, or plan as the68384
criminal or delinquent act committed against the victim.68385

       (26) "Judicial release to court supervision" means a release68386
of a child from institutional care or institutional care in a68387
secure facility that is granted by a court pursuant to division68388
(B) of section 2152.22 of the Revised Code during the period68389
specified in that division.68390

       (27) "Judicial release to department of youth services68391
supervision" means a release of a child from institutional care or68392
institutional care in a secure facility that is granted by a court68393
pursuant to division (C) of section 2152.22 of the Revised Code68394
during the period specified in that division.68395

       (28) "Juvenile justice system" includes all of the functions68396
of the juvenile courts, the department of youth services, any68397
public or private agency whose purposes include the prevention of68398
delinquency or the diversion, adjudication, detention, or68399
rehabilitation of delinquent children, and any of the functions of68400
the criminal justice system that are applicable to children.68401

       (29) "Metropolitan county criminal justice services agency"68402
means an agency that is established pursuant to division (A) of68403
section 181.545502.64 of the Revised Code.68404

       (30) "Administrative planning district" means a district that68405
is established pursuant to division (A) or (B) of section 181.5668406
5502.66 of the Revised Code.68407

       (31) "Criminal justice coordinating council" means a criminal68408
justice services agency that is established pursuant to division68409
(D) of section 181.565502.66 of the Revised Code.68410

       (32) "Comprehensive plan" means a document that coordinates,68411
evaluates, and otherwise assists, on an annual or multi-year68412
basis, all of the functions of the juvenile justice systems of the68413
state or a specified area of the state, that conforms to the68414
priorities of the state with respect to juvenile justice systems,68415
and that conforms with the requirements of all federal criminal68416
justice acts. These functions include, but are not limited to, all 68417
of the following:68418

       (a) Delinquency;68419

       (b) Identification, detection, apprehension, and detention of 68420
persons charged with delinquent acts;68421

       (c) Assistance to crime victims or witnesses, except that the 68422
comprehensive plan does not include the functions of the attorney 68423
general pursuant to sections 109.91 and 109.92 of the Revised 68424
Code;68425

       (d) Adjudication or diversion of persons charged with68426
delinquent acts;68427

       (e) Custodial treatment of delinquent children;68428

       (f) Institutional and noninstitutional rehabilitation of68429
delinquent children.68430

       (B) There is hereby created the department of youth services. 68431
The governor shall appoint the director of the department with the 68432
advice and consent of the senate. The director shall hold office 68433
during the term of the appointing governor but subject to removal 68434
at the pleasure of the governor. Except as otherwise authorized in 68435
section 108.05 of the Revised Code, the director shall devote the 68436
director's entire time to the duties of the director's office and 68437
shall hold no other office or position of trust or profit during 68438
the director's term of office.68439

       The director is the chief executive and administrative68440
officer of the department and has all the powers of a department68441
head set forth in Chapter 121. of the Revised Code. The director68442
may adopt rules for the government of the department, the conduct68443
of its officers and employees, the performance of its business,68444
and the custody, use, and preservation of the department's68445
records, papers, books, documents, and property. The director68446
shall be an appointing authority within the meaning of Chapter68447
124. of the Revised Code. Whenever this or any other chapter or68448
section of the Revised Code imposes a duty on or requires an68449
action of the department, the duty or action shall be performed by68450
the director or, upon the director's order, in the name of the68451
department.68452

       Sec. 5139.36.  (A) In accordance with this section and the68453
rules adopted under it and from funds appropriated to the68454
department of youth services for the purposes of this section, the 68455
department shall make grants that provide financial resources to 68456
operate community corrections facilities for felony delinquents.68457

       (B)(1) Each community corrections facility that intends to68458
seek a grant under this section shall file an application with the 68459
department of youth services at the time and in accordance with 68460
the procedures that the department shall establish by rules68461
adopted in accordance with Chapter 119. of the Revised Code. In68462
addition to other items required to be included in the68463
application, a plan that satisfies both of the following shall be68464
included:68465

       (a) It reduces the number of felony delinquents committed to 68466
the department from the county or counties associated with the68467
community corrections facility.68468

       (b) It ensures equal access for minority felony delinquents 68469
to the programs and services for which a potential grant would be 68470
used.68471

       (2) The department of youth services shall review each68472
application submitted pursuant to division (B)(1) of this section68473
to determine whether the plan described in that division, the68474
community corrections facility, and the application comply with68475
this section and the rules adopted under it.68476

       (C) To be eligible for a grant under this section and for68477
continued receipt of moneys comprising a grant under this section, 68478
a community corrections facility shall satisfy at least all of the 68479
following requirements:68480

       (1) Be constructed, reconstructed, improved, or financed by 68481
the Ohio building authority pursuant to section 307.021 of the68482
Revised Code and Chapter 152. of the Revised Code for the use of68483
the department of youth services and be designated as a community68484
corrections facility;68485

       (2) Have written standardized criteria governing the types of 68486
felony delinquents that are eligible for the programs and services 68487
provided by the facility;68488

       (3) Have a written standardized intake screening process and 68489
an intake committee that at least performs both of the following 68490
tasks:68491

       (a) Screens all eligible felony delinquents who are being68492
considered for admission to the facility in lieu of commitment to68493
the department;68494

       (b) Notifies, within ten days after the date of the referral 68495
of a felony delinquent to the facility, the committing court 68496
whether the felony delinquent will be admitted to the facility.68497

       (4) Comply with all applicable fiscal and program rules that 68498
the department adopts in accordance with Chapter 119. of the68499
Revised Code and demonstrate that felony delinquents served by the 68500
facility have been or will be diverted from a commitment to the 68501
department.68502

       (D) The department of youth services shall determine the68503
method of distribution of the funds appropriated for grants under68504
this section to community corrections facilities.68505

       (E)(1) The department of youth services shall adopt rules in 68506
accordance with Chapter 119. of the Revised Code to establish the 68507
minimum occupancy threshold of community corrections facilities.68508

        (2) The department may make referrals for the placement of 68509
children in its custody to a community corrections facility if the 68510
community corrections facility is not meeting the minimum 68511
occupancy threshold established by the department. At least 68512
forty-five days prior to the referral of a child or within any 68513
shorter period prior to the referral of the child that the 68514
committing court may allow, the department shall notify the 68515
committing court of its intent to place the child in a community 68516
corrections facility. The court shall have thirty days after the 68517
receipt of the notice to approve or disapprove the placement. If 68518
the court does not respond to the notice of the placement within 68519
that thirty-day period, the department shall proceed with the 68520
placement and debit the county in accordance with sections 5139.41 68521
to 5139.43 of the Revised Code. A child placed in a community 68522
corrections facility pursuant to this division shall remain in the 68523
legal custody of the department of youth services during the 68524
period in which the child is in the community corrections 68525
facility.68526

        (3) Counties that are not associated with a community 68527
corrections facility may refer children to a community corrections 68528
facility with the consent of the facility. The department of youth 68529
services shall debit the county that makes the referral in 68530
accordance with sections 5139.41 to 5139.43 of the Revised Code.68531

       (F) If the board or other governing body of a community68532
corrections facility establishes an advisory board, the board or 68533
other governing authority of the community corrections facility 68534
shall reimburse the members of the advisory board for their actual 68535
and necessary expenses incurred in the performance of their 68536
official duties on the advisory board. The members of advisory 68537
boards shall serve without compensation.68538

       Sec. 5153.16.  (A) Except as provided in section 2151.422 of68539
the Revised Code, in accordance with rules of the department of68540
job and family services, and on behalf of children in the county68541
whom the public children services agency considers to be in need68542
of public care or protective services, the public children68543
services agency shall do all of the following:68544

       (1) Make an investigation concerning any child alleged to be68545
an abused, neglected, or dependent child;68546

       (2) Enter into agreements with the parent, guardian, or other 68547
person having legal custody of any child, or with the department 68548
of job and family services, department of mental health,68549
department of mental retardation and developmental disabilities,68550
other department, any certified organization within or outside the 68551
county, or any agency or institution outside the state, having 68552
legal custody of any child, with respect to the custody, care, or 68553
placement of any child, or with respect to any matter, in the 68554
interests of the child, provided the permanent custody of a child 68555
shall not be transferred by a parent to the public children 68556
services agency without the consent of the juvenile court;68557

       (3) Accept custody of children committed to the public68558
children services agency by a court exercising juvenile68559
jurisdiction;68560

       (4) Provide such care as the public children services agency68561
considers to be in the best interests of any child adjudicated to68562
be an abused, neglected, or dependent child the agency finds to be68563
in need of public care or service;68564

       (5) Provide social services to any unmarried girl adjudicated 68565
to be an abused, neglected, or dependent child who is pregnant 68566
with or has been delivered of a child;68567

       (6) Make available to the bureau for children with medical68568
handicaps of the department of health at its request any68569
information concerning a crippled child found to be in need of68570
treatment under sections 3701.021 to 3701.028 of the Revised Code68571
who is receiving services from the public children services68572
agency;68573

       (7) Provide temporary emergency care for any child considered 68574
by the public children services agency to be in need of such care, 68575
without agreement or commitment;68576

       (8) Find certified foster homes, within or outside the68577
county, for the care of children, including handicapped children68578
from other counties attending special schools in the county;68579

       (9) Subject to the approval of the board of county68580
commissioners and the state department of job and family services,68581
establish and operate a training school or enter into an agreement68582
with any municipal corporation or other political subdivision of68583
the county respecting the operation, acquisition, or maintenance68584
of any children's home, training school, or other institution for68585
the care of children maintained by such municipal corporation or68586
political subdivision;68587

       (10) Acquire and operate a county children's home, establish, 68588
maintain, and operate a receiving home for the temporary care of 68589
children, or procure certified foster homes for this purpose;68590

       (11) Enter into an agreement with the trustees of any68591
district children's home, respecting the operation of the district68592
children's home in cooperation with the other county boards in the68593
district;68594

       (12) Cooperate with, make its services available to, and act68595
as the agent of persons, courts, the department of job and family68596
services, the department of health, and other organizations within68597
and outside the state, in matters relating to the welfare of68598
children, except that the public children services agency shall68599
not be required to provide supervision of or other services68600
related to the exercise of parenting time rights granted pursuant68601
to section 3109.051 or 3109.12 of the Revised Code or68602
companionship or visitation rights granted pursuant to section68603
3109.051, 3109.11, or 3109.12 of the Revised Code unless a68604
juvenile court, pursuant to Chapter 2151. of the Revised Code, or68605
a common pleas court, pursuant to division (E)(6) of section68606
3113.31 of the Revised Code, requires the provision of supervision68607
or other services related to the exercise of the parenting time68608
rights or companionship or visitation rights;68609

       (13) Make investigations at the request of any superintendent 68610
of schools in the county or the principal of any school concerning 68611
the application of any child adjudicated to be an abused,68612
neglected, or dependent child for release from school, where such 68613
service is not provided through a school attendance department;68614

       (14) Administer funds provided under Title IV-E of the68615
"Social Security Act," 94 Stat. 501 (1980), 42 U.S.C.A. 671, as68616
amended, in accordance with rules adopted under section 5101.14168617
of the Revised Code;68618

       (15) In addition to administering Title IV-E adoption68619
assistance funds, enter into agreements to make adoption68620
assistance payments under section 5153.163 of the Revised Code;68621

       (16) Implement a system of risk assessment, in accordance68622
with rules adopted by the director of job and family services, to68623
assist the public children services agency in determining the risk68624
of abuse or neglect to a child;68625

       (17) Enter into a plan of cooperation with the board of68626
county commissioners under section 307.983 of the Revised Code and68627
comply with each fiscal agreement the board enters into under68628
section 307.98 of the Revised Code that include family services 68629
duties of public children services agencies and contracts the 68630
board enters into under sections 307.981 and 307.982 of the 68631
Revised Code that affect the public children services agency;68632

       (18) Make reasonable efforts to prevent the removal of an68633
alleged or adjudicated abused, neglected, or dependent child from68634
the child's home, eliminate the continued removal of the child68635
from the child's home, or make it possible for the child to return68636
home safely, except that reasonable efforts of that nature are not68637
required when a court has made a determination under division68638
(A)(2) of section 2151.419 of the Revised Code;68639

       (19) Make reasonable efforts to place the child in a timely68640
manner in accordance with the permanency plan approved under68641
division (E) of section 2151.417 of the Revised Code and to68642
complete whatever steps are necessary to finalize the permanent68643
placement of the child;68644

       (20) Administer a Title IV-A program identified under68645
division (A)(3)(4)(c) or (d)(f) of section 5101.80 of the Revised 68646
Code that the department of job and family services provides for 68647
the public children services agency to administer under the68648
department's supervision pursuant to section 5101.801 of the68649
Revised Code;68650

       (21) Administer the kinship permanency incentive program 68651
created under section 5101.802 of the Revised Code under the 68652
supervision of the director of job and family services;68653

       (22) Provide independent living services pursuant to sections68654
2151.81 to 2151.84 of the Revised Code.68655

       (B) The public children services agency shall use the system68656
implemented pursuant to division (B)(16) of this section in68657
connection with an investigation undertaken pursuant to division68658
(F)(1) of section 2151.421 of the Revised Code and may use the68659
system at any other time the agency is involved with any child68660
when the agency determines that risk assessment is necessary.68661

       (C) Except as provided in section 2151.422 of the Revised68662
Code, in accordance with rules of the director of job and family68663
services, and on behalf of children in the county whom the public68664
children services agency considers to be in need of public care or68665
protective services, the public children services agency may do68666
the following:68667

       (1) Provide or find, with other child serving systems,68668
specialized foster care for the care of children in a specialized68669
foster home, as defined in section 5103.02 of the Revised Code,68670
certified under section 5103.03 of the Revised Code;68671

       (2)(a) Except as limited by divisions (C)(2)(b) and (c) of68672
this section, contract with the following for the purpose of68673
assisting the agency with its duties:68674

       (i) County departments of job and family services;68675

       (ii) Boards of alcohol, drug addiction, and mental health68676
services;68677

       (iii) County boards of mental retardation and developmental68678
disabilities;68679

       (iv) Regional councils of political subdivisions established68680
under Chapter 167. of the Revised Code;68681

       (v) Private and government providers of services;68682

       (vi) Managed care organizations and prepaid health plans.68683

       (b) A public children services agency contract under division 68684
(C)(2)(a) of this section regarding the agency's duties under68685
section 2151.421 of the Revised Code may not provide for the68686
entity under contract with the agency to perform any service not68687
authorized by the department's rules.68688

       (c) Only a county children services board appointed under68689
section 5153.03 of the Revised Code that is a public children68690
services agency may contract under division (C)(2)(a) of this68691
section. If an entity specified in division (B) or (C) of section68692
5153.02 of the Revised Code is the public children services agency68693
for a county, the board of county commissioners may enter into68694
contracts pursuant to section 307.982 of the Revised Code68695
regarding the agency's duties.68696

       Sec. 5502.01.  (A) The department of public safety shall68697
administer and enforce the laws relating to the registration,68698
licensing, sale, and operation of motor vehicles and the laws68699
pertaining to the licensing of drivers of motor vehicles.68700

       The department shall compile, analyze, and publish statistics68701
relative to motor vehicle accidents and the causes of them,68702
prepare and conduct educational programs for the purpose of68703
promoting safety in the operation of motor vehicles on the68704
highways, and conduct research and studies for the purpose of68705
promoting safety on the highways of this state.68706

       (B) The department shall administer the laws and rules68707
relative to trauma and emergency medical services specified in68708
Chapter 4765. of the Revised Code.68709

       (C) The department shall administer and enforce the laws68710
contained in Chapters 4301. and 4303. of the Revised Code and68711
enforce the rules and orders of the liquor control commission68712
pertaining to retail liquor permit holders.68713

       (D) The department shall administer the laws governing the68714
state emergency management agency and shall enforce all additional68715
duties and responsibilities as prescribed in the Revised Code68716
related to emergency management services.68717

       (E) The department shall conduct investigations pursuant to68718
Chapter 5101. of the Revised Code in support of the duty of the68719
department of job and family services to administer food stamp68720
programs throughout this state. The department of public safety68721
shall conduct investigations necessary to protect the state's68722
property rights and interests in the food stamp program.68723

       (F) The department of public safety shall enforce compliance68724
with orders and rules of the public utilities commission and68725
applicable laws in accordance with Chapters 4919., 4921., and68726
4923. of the Revised Code regarding commercial motor vehicle68727
transportation safety, economic, and hazardous materials68728
requirements.68729

       (G) Notwithstanding Chapter 4117. of the Revised Code, the68730
department of public safety may establish requirements for its68731
enforcement personnel, including its enforcement agents described68732
in section 5502.14 of the Revised Code, that include standards of68733
conduct, work rules and procedures, and criteria for eligibility68734
as law enforcement personnel.68735

       (H) The department shall administer, maintain, and operate68736
the Ohio criminal justice network. The Ohio criminal justice68737
network shall be a computer network that supports state and local68738
criminal justice activities. The network shall be an electronic68739
repository for various data, which may include arrest warrants,68740
notices of persons wanted by law enforcement agencies, criminal68741
records, prison inmate records, stolen vehicle records, vehicle68742
operator's licenses, and vehicle registrations and titles.68743

       (I) The department shall coordinate all homeland security 68744
activities of all state agencies and shall be a liaison between 68745
state agencies and local entities for those activities and related 68746
purposes.68747

       (J) Beginning July 1, 2004, the department shall administer 68748
and enforce the laws relative to private investigators and 68749
security service providers specified in Chapter 4749. of the 68750
Revised Code.68751

       (K) The department shall administer criminal justice services 68752
in accordance with sections 5502.61 to 5502.66 of the Revised 68753
Code.68754

       Sec. 5502.03. (A) There is hereby created in the department 68755
of public safety a division of homeland security. It is the intent 68756
of the general assembly that the creation of the division of 68757
homeland security of the department of public safety by this 68758
amendment does not result in an increase of funding appropriated 68759
to the department.68760

       (B)(1) The division shall coordinate all homeland security 68761
activities of all state agencies and shall be the liaison between 68762
state agencies and local entities for the purposes of 68763
communicating homeland security funding and policy initiatives.68764

       (2) The division and the department shall distribute any 68765
homeland security funds on a county basis and shall not distribute 68766
those funds on a regional basis unless federal law requires 68767
distribution on a regional basis.68768

       (C) The director of public safety shall appoint an executive 68769
director, who shall be head of the division of homeland security 68770
and who regularly shall advise the governor and the director on 68771
matters pertaining to homeland security. The executive director 68772
shall serve at the pleasure of the director of public safety. To 68773
carry out the duties assigned under this section, the executive 68774
director, subject to the direction and control of the director of 68775
public safety, may appoint and maintain necessary staff and may 68776
enter into any necessary agreements.68777

       (D) Except as otherwise provided by law, nothing in this 68778
section shall be construed to give the director of public safety 68779
or the executive director of the division of homeland security 68780
authority over the incident management structure or 68781
responsibilities of local emergency response personnel.68782

       Sec. 181.51.        Sec. 5502.61.  As used in sections 181.515502.61 to 68783
181.565502.66 of the Revised Code:68784

       (A) "Federal criminal justice acts" means any federal law68785
that authorizes financial assistance and other forms of assistance68786
to be given by the federal government to the states to be used for68787
the improvement of the criminal and juvenile justice systems of68788
the states.68789

       (B)(1) "Criminal justice system" includes all of the68790
functions of the following:68791

       (a) The state highway patrol, county sheriff offices,68792
municipal and township police departments, and all other law68793
enforcement agencies;68794

       (b) The courts of appeals, courts of common pleas, municipal68795
courts, county courts, and mayor's courts, when dealing with68796
criminal cases;68797

       (c) The prosecuting attorneys, city directors of law, village 68798
solicitors, and other prosecuting authorities when prosecuting or 68799
otherwise handling criminal cases and the county and joint county 68800
public defenders and other public defender agencies or offices;68801

       (d) The department of rehabilitation and correction,68802
probation departments, county and municipal jails and workhouses,68803
and any other department, agency, or facility that is concerned68804
with the rehabilitation or correction of criminal offenders;68805

       (e) Any public or private agency whose purposes include the68806
prevention of crime or the diversion, adjudication, detention, or68807
rehabilitation of criminal offenders;68808

       (f) Any public or private agency, the purposes of which68809
include assistance to crime victims or witnesses.68810

       (2) The inclusion of any public or private agency, the68811
purposes of which include assistance to crime victims or68812
witnesses, as part of the criminal justice system pursuant to68813
division (B)(1) of this section does not limit, and shall not be68814
construed as limiting, the discretion or authority of the attorney68815
general with respect to crime victim assistance and criminal68816
justice programs.68817

       (C) "Juvenile justice system" includes all of the functions68818
of the juvenile courts, the department of youth services, any68819
public or private agency whose purposes include the prevention of68820
delinquency or the diversion, adjudication, detention, or68821
rehabilitation of delinquent children, and any of the functions of68822
the criminal justice system that are applicable to children.68823

       (D) "Comprehensive plan" means a document that coordinates,68824
evaluates, and otherwise assists, on an annual or multi-year68825
basis, any of the functions of the criminal and juvenile justice68826
systems of the state or a specified area of the state, that68827
conforms to the priorities of the state with respect to criminal68828
and juvenile justice systems, and that conforms with the68829
requirements of all federal criminal justice acts. These functions68830
may include, but are not limited to, any of the following:68831

       (1) Crime and delinquency prevention;68832

       (2) Identification, detection, apprehension, and detention of 68833
persons charged with criminal offenses or delinquent acts;68834

       (3) Assistance to crime victims or witnesses, except that the 68835
comprehensive plan does not include the functions of the attorney 68836
general pursuant to sections 109.91 and 109.92 of the Revised 68837
Code;68838

       (4) Adjudication or diversion of persons charged with68839
criminal offenses or delinquent acts;68840

       (5) Custodial treatment of criminal offenders, delinquent68841
children, or both;68842

       (6) Institutional and noninstitutional rehabilitation of68843
criminal offenders, delinquent children, or both.68844

       (E) "Metropolitan county criminal justice services agency"68845
means an agency that is established pursuant to division (A) of68846
section 181.545502.64 of the Revised Code.68847

       (F) "Administrative planning district" means a district that68848
is established pursuant to division (A) or (B) of section 181.5668849
5502.66 of the Revised Code.68850

       (G) "Criminal justice coordinating council" means a criminal68851
justice services agency that is established pursuant to division68852
(D) of section 181.565502.66 of the Revised Code.68853

       (H) "Local elected official" means any person who is a member68854
of a board of county commissioners or township trustees or of a68855
city or village council, judge of the court of common pleas, a68856
municipal court, or a county court, sheriff, county coroner,68857
prosecuting attorney, city director of law, village solicitor, or68858
mayor.68859

       (I) "Juvenile justice coordinating council" means a juvenile68860
justice services agency that is established pursuant to division68861
(D) of section 181.565502.66 of the Revised Code.68862

       Sec. 181.52.        Sec. 5502.62.  (A) There is hereby created an office68863
in the department of public safety a division of criminal justice 68864
services. The governordirector of public safety, with the 68865
concurrence of the governor, shall appoint aan executive director68866
of the office, and the director may appoint, within the office,68867
any professional and technical personnel and other employees that68868
are necessary to enable the office to comply with sections 181.5168869
to 181.56 of the Revised Codedivision of criminal justice 68870
services. The executive director shall be the head of the 68871
division. The executive director shall serve at the pleasure of 68872
the director of public safety. To carry out the duties assigned 68873
under this section and to comply with sections 5502.63 to 5502.66 68874
of the Revised Code, the executive director, subject to the 68875
direction and control of the director of public safety, may 68876
appoint and maintain any necessary staff and may enter into any 68877
necessary contracts and other agreements. The executive director 68878
and the assistant director of the officedivision, and all 68879
professional and technical personnel employed within the office68880
division who are not public employees as defined in section 68881
4117.01 of the Revised Code, shall be in the unclassified civil 68882
service, and all other persons employed within the officedivision68883
shall be in the classified civil service. The director may enter 68884
into any contracts, except contracts governed by Chapter 4117. of 68885
the Revised Code, that are necessary for the operation of the 68886
office.68887

       (B) Subject to division (E) of this section and subject to68888
divisions (D) to (F) of section 5120.09 of the Revised Code68889
insofar as those divisions relate to federal criminal justice acts68890
that the governor requires the department of rehabilitation and68891
correction to administer, the officedivision of criminal justice 68892
services shall do all of the following:68893

       (1) Serve as the state criminal justice services agency and68894
perform criminal justice system planning in the state, including68895
any planning that is required by any federal law;68896

       (2) Collect, analyze, and correlate information and data68897
concerning the criminal justice system in the state;68898

       (3) Cooperate with and provide technical assistance to state68899
departments, administrative planning districts, metropolitan68900
county criminal justice services agencies, criminal justice68901
coordinating councils, agencies, offices, and departments of the68902
criminal justice system in the state, and other appropriate68903
organizations and persons;68904

       (4) Encourage and assist agencies, offices, and departments68905
of the criminal justice system in the state and other appropriate 68906
organizations and persons to solve problems that relate to the 68907
duties of the officedivision;68908

       (5) Administer within the state any federal criminal justice68909
acts that the governor requires it to administer;68910

       (6) Administer funds received under the "Family Violence68911
Prevention and Services Act," 98 Stat. 1757 (1984), 42 U.S.C.A.68912
10401, as amended, with all powers necessary for the adequate68913
administration of those funds, including the authority to68914
establish a family violence prevention and services program.68915

       (7) Implement the state comprehensive plans;68916

       (8) Audit grant activities of agencies, offices,68917
organizations, and persons that are financed in whole or in part68918
by funds granted through the officedivision;68919

       (9) Monitor or evaluate the performance of criminal justice 68920
system projects and programs in the state that are financed in68921
whole or in part by funds granted through the officedivision;68922

       (10) Apply for, allocate, disburse, and account for grants68923
that are made available pursuant to federal criminal justice acts,68924
or made available from other federal, state, or private sources,68925
to improve the criminal justice system in the state. AllExcept as 68926
otherwise provided in this division, all money from such federal68927
grants shall, if the terms under which the money is received68928
require that the money be deposited into an interest-bearing fund68929
or account, be deposited in the state treasury to the credit of68930
the federal program purposes fund, which is hereby created. All68931
investment earnings of the federal program purposes fund shall be68932
credited to the fund. All money from such federal grants that 68933
require that the money be deposited into an interest-bearing fund 68934
or account, that are intended to provide funding to local criminal 68935
justice programs, and that require that investment earnings be 68936
distributed for program purposes shall be deposited in the state 68937
treasury to the credit of the federal justice programs fund, which 68938
is hereby created. All investment earnings of the federal justice 68939
programs fund shall be credited to the fund and distributed in 68940
accordance with the terms of the grant under which the money is 68941
received.68942

       (11) Contract with federal, state, and local agencies,68943
foundations, corporations, businesses, and persons when necessary68944
to carry out the duties of the officedivision;68945

       (12) Oversee the activities of metropolitan county criminal68946
justice services agencies, administrative planning districts, and68947
criminal justice coordinating councils in the state;68948

       (13) Advise the director of public safety, general assembly,68949
and governor on legislation and other significant matters that 68950
pertain to the improvement and reform of criminal and juvenile 68951
justice systems in the state;68952

       (14) Prepare and recommend legislation to the director of 68953
public safety, general assembly, and governor for the improvement 68954
of the criminal and juvenile justice systems in the state;68955

       (15) Assist, advise, and make any reports that are requested68956
or required by the governor, director of public safety, attorney 68957
general, or general assembly;68958

       (16) AdoptSubject to the approval of the director of public 68959
safety, adopt rules pursuant to Chapter 119. of the Revised Code.68960

       (C) Upon the request of the director of public safety or68961
governor, the officedivision of criminal justice services may do 68962
any of the following:68963

       (1) Collect, analyze, or correlate information and data68964
concerning the juvenile justice system in the state;68965

       (2) Cooperate with and provide technical assistance to state68966
departments, administrative planning districts, metropolitan68967
county criminal justice service agencies, criminal justice68968
coordinating councils, agency offices, and the departments of the68969
juvenile justice system in the state and other appropriate68970
organizations and persons;68971

       (3) Encourage and assist agencies, offices, and departments68972
of the juvenile justice system in the state and other appropriate68973
organizations and persons to solve problems that relate to the68974
duties of the officedivision.68975

       (D) Divisions (B) and (C) of this section do not limit the68976
discretion or authority of the attorney general with respect to68977
crime victim assistance and criminal justice programs.68978

       (E) Nothing in this section is intended to diminish or alter68979
the status of the office of the attorney general as a criminal68980
justice services agency.68981

       Sec. 181.251.        Sec. 5502.63. The officedivision of criminal justice 68982
services in the department of public safety shall prepare a poster 68983
and a brochure that describe safe firearms practices. The poster 68984
and brochure shall contain typeface that is at least one-quarter 68985
inch tall. The officedivision shall furnish copies of the poster 68986
and brochure free of charge to each federally licensed firearms 68987
dealer in this state.68988

       As used in this section, "federally licensed firearms dealer" 68989
means an importer, manufacturer, or dealer having a license to 68990
deal in destructive devices or their ammunition, issued and in 68991
effect pursuant to the federal "Gun Control Act of 1968," 82 Stat. 68992
1213, 18 U.S.C. 923 et seq., and any amendments or additions to 68993
that act or reenactments of that act.68994

       Sec. 181.54.        Sec. 5502.64.  (A) A county may enter into an 68995
agreement with the largest city within the county to establish a68996
metropolitan county criminal justice services agency, if the68997
population of the county exceeds five hundred thousand or the68998
population of the city exceeds two hundred fifty thousand.68999

       (B) A metropolitan county criminal justice services agency69000
shall do all of the following:69001

       (1) Accomplish criminal and juvenile justice systems planning 69002
within its services area;69003

       (2) Collect, analyze, and correlate information and data69004
concerning the criminal and juvenile justice systems within its69005
services area;69006

       (3) Cooperate with and provide technical assistance to all69007
criminal and juvenile justice agencies and systems and other69008
appropriate organizations and persons within its services area;69009

       (4) Encourage and assist agencies of the criminal and69010
juvenile justice systems and other appropriate organizations and69011
persons to solve problems that relate to its duties;69012

       (5) Administer within its services area any federal criminal69013
justice acts or juvenile justice acts that the officedivision of69014
criminal justice services pursuant to section 5139.11 of the 69015
Revised Code or the department of youth services administers69016
within the state;69017

       (6) Implement the comprehensive plans for its services area;69018

       (7) Monitor or evaluate, within its services area, the69019
performance of the criminal and juvenile justice systems projects69020
and programs that are financed in whole or in part by funds69021
granted through it;69022

       (8) Apply for, allocate, and disburse grants that are made69023
available pursuant to any federal criminal justice acts, or69024
pursuant to any other federal, state, or private sources for the69025
purpose of improving the criminal and juvenile justice systems;69026

       (9) Contract with federal, state, and local agencies,69027
foundations, corporations, and other businesses or persons to69028
carry out the duties of the agency.69029

       Sec. 181.55.        Sec. 5502.65.  (A)(1) When funds are available for 69030
criminal justice purposes pursuant to section 181.545502.64 of69031
the Revised Code, the officedivision of criminal justice services 69032
shall provide funds to metropolitan county criminal justice 69033
services agencies for the purpose of developing, coordinating, 69034
evaluating, and implementing comprehensive plans within their 69035
respective counties. The officedivision of criminal justice 69036
services shall provide funds to an agency only if it complies with 69037
the conditions of division (B) of this section.69038

       (2) When funds are available for juvenile justice purposes69039
pursuant to section 181.545502.64 of the Revised Code, the 69040
department of youth services shall provide funds to metropolitan 69041
county criminal justice services agencies for the purpose of 69042
developing, coordinating, evaluating, and implementing 69043
comprehensive plans within their respective counties. The 69044
department shall provide funds to an agency only if it complies 69045
with the conditions of division (B) of this section.69046

       (B) A metropolitan county criminal justice services agency69047
shall do all of the following:69048

       (1) Submit, in a form that is acceptable to the office69049
division of criminal justice services or the department of youth 69050
services pursuant to section 5139.01 of the Revised Code, a 69051
comprehensive plan for the county;69052

       (2) Establish a metropolitan county criminal justice services 69053
supervisory board whose members shall include a majority of the 69054
local elected officials in the county and representatives from law 69055
enforcement agencies, courts, prosecuting authorities, public 69056
defender agencies, rehabilitation and correction agencies,69057
community organizations, juvenile justice services agencies,69058
professionals, and private citizens in the county, and that shall69059
have the authority set forth in division (C) of this section;69060

       (3) Organize in the manner provided in sections 167.01 to69061
167.03, 302.21 to 302.24, or 713.21 to 713.27 of the Revised Code,69062
unless the board created pursuant to division (B)(2) of this69063
section organizes pursuant to these sections.69064

       (C) A metropolitan county criminal justice services69065
supervisory board shall do all of the following:69066

       (1) Exercise leadership in improving the quality of the69067
criminal and juvenile justice systems in the county;69068

       (2) Review, approve, and maintain general oversight of the69069
comprehensive plans for the county and the implementation of the69070
plans;69071

       (3) Review and comment on the overall needs and69072
accomplishments of the criminal and juvenile justice systems in69073
the county;69074

       (4) Establish, as required to comply with this division, task 69075
forces, ad hoc committees, and other committees, whose members 69076
shall be appointed by the chairperson of the board;69077

       (5) Establish any rules that the board considers necessary69078
and that are consistent with the federal criminal justice acts and69079
section 181.525502.62 of the Revised Code.69080

       Sec. 181.56.        Sec. 5502.66.  (A) In counties in which a metropolitan69081
county criminal justice services agency does not exist, the office69082
division of criminal justice services shall discharge the office's69083
division's duties that the governordirector of public safety69084
requires it to administer by establishing administrative planning 69085
districts for criminal justice programs. An administrative 69086
planning district shall contain a group of contiguous counties in 69087
which no county has a metropolitan county criminal justice 69088
services agency.69089

       (B) In counties in which a metropolitan county criminal69090
justice services agency does not exist, the department of youth69091
services shall discharge pursuant to section 5139.11 of the69092
Revised Code the department's duty by establishing administrative69093
planning districts for juvenile justice programs.69094

       (C) All administrative planning districts shall contain a69095
group of contiguous counties in which no county has a metropolitan69096
county criminal justice services agency.69097

       (D) Any county or any combination of contiguous counties69098
within an administrative planning district may form a criminal69099
justice coordinating council or a juvenile justice coordinating69100
council for its respective programs, if the county or the group of69101
counties has a total population in excess of two hundred fifty69102
thousand. The council shall comply with the conditions set forth69103
in divisions (B) and (C) of section 181.555502.65 of the Revised 69104
Code, and exercise within its jurisdiction the powers and duties 69105
set forth in division (B) of section 181.545502.64 of the Revised 69106
Code.69107

       Sec. 5531.10.  (A) As used in this chapter:69108

       (1) "Bond proceedings" means the resolution, order, trust69109
agreement, indenture, lease, lease-purchase agreements, and other69110
agreements, amendments and supplements to the foregoing, or any 69111
one or more or combination thereof, authorizing or providing for 69112
the terms and conditions applicable to, or providing for the 69113
security or liquidity of, obligations issued pursuant to this 69114
section, and the provisions contained in such obligations.69115

       (2) "Bond service charges" means principal, including69116
mandatory sinking fund requirements for retirement of obligations, 69117
and interest, and redemption premium, if any, required to be paid 69118
by the state on obligations.69119

       (3) "Bond service fund" means the applicable fund and69120
accounts therein created for and pledged to the payment of bond69121
service charges, which may be, or may be part of, the state 69122
infrastructure bank revenue bond service fund created by division 69123
(R) of this section including all moneys and investments, and 69124
earnings from investments, credited and to be credited thereto.69125

       (4) "Issuing authority" means the treasurer of state, or the 69126
officer who by law performs the functions of the treasurer of 69127
state.69128

       (5) "Obligations" means bonds, notes, or other evidence of69129
obligation including interest coupons pertaining thereto, issued69130
pursuant to this section.69131

       (6) "Pledged receipts" means moneys accruing to the state 69132
from the lease, lease-purchase, sale, or other disposition, or 69133
use, of qualified projects, and from the repayment, including69134
interest, of loans made from proceeds received from the sale of69135
obligations; accrued interest received from the sale of69136
obligations; income from the investment of the special funds; any 69137
gifts, grants, donations, and pledges, and receipts therefrom, 69138
available for the payment of bond service charges; and any amounts69139
in the state infrastructure bank pledged to the payment of such 69140
charges. If the amounts in the state infrastructure bank are 69141
insufficient for the payment of such charges, "pledged receipts" 69142
also means moneys that are apportioned by the United States 69143
secretary of transportation under United States Code, Title XXIII, 69144
as amended, or any successor legislation, or under any other 69145
federal law relating to aid for highways, and that are to be 69146
received as a grant by the state, to the extent the state is not 69147
prohibited by state or federal law from using such moneys and the 69148
moneys are pledged to the payment of such bond service charges.69149

       (7) "Special funds" or "funds" means, except where the69150
context does not permit, the bond service fund, and any other69151
funds, including reserve funds, created under the bond69152
proceedings, and the state infrastructure bank revenue bond 69153
service fund created by division (R) of this section to the extent69154
provided in the bond proceedings, including all moneys and 69155
investments, and earnings from investment, credited and to be 69156
credited thereto.69157

       (8) "State infrastructure project" means any public69158
transportation project undertaken by the state, including, but not 69159
limited to, all components of any such project, as described in 69160
division (D) of section 5131.095531.09 of the Revised Code.69161

       (9) "District obligations" means bonds, notes, or other 69162
evidence of obligation including interest coupons pertaining 69163
thereto, issued to finance a qualified project by a transportation 69164
improvement district created pursuant to section 5540.02 of the 69165
Revised Code, of which the principal, including mandatory sinking 69166
fund requirements for retirement of such obligations, and interest 69167
and redemption premium, if any, are payable by the department of 69168
transportation.69169

       (B) The issuing authority, after giving written notice to the 69170
director of budget and management and upon the certification by 69171
the director of transportation to the issuing authority of the 69172
amount of moneys or additional moneys needed either for state 69173
infrastructure projects or to provide financial assistance for any69174
of the purposes for which the state infrastructure bank may be 69175
used under section 5531.09 of the Revised Code, or needed for 69176
capitalized interest, funding reserves, and paying costs and 69177
expenses incurred in connection with the issuance, carrying, 69178
securing, paying, redeeming, or retirement of the obligations or 69179
any obligations refunded thereby, including payment of costs and69180
expenses relating to letters of credit, lines of credit,69181
insurance, put agreements, standby purchase agreements, indexing,69182
marketing, remarketing and administrative arrangements, interest69183
swap or hedging agreements, and any other credit enhancement,69184
liquidity, remarketing, renewal, or refunding arrangements, all of 69185
which are authorized by this section, shall issue obligations of 69186
the state under this section in the required amount. The proceeds 69187
of such obligations, except for the portion to be deposited in 69188
special funds, including reserve funds, as may be provided in the 69189
bond proceedings, shall as provided in the bond proceedings be 69190
credited to the infrastructure bank obligations fund of the state 69191
infrastructure bank created by section 5531.09 of the Revised Code 69192
and disbursed as provided in the bond proceedings for such 69193
obligations. The issuing authority may appoint trustees, paying69194
agents, transfer agents, and authenticating agents, and may retain 69195
the services of financial advisors, accounting experts, and 69196
attorneys, and retain or contract for the services of marketing, 69197
remarketing, indexing, and administrative agents, other 69198
consultants, and independent contractors, including printing 69199
services, as are necessary in the issuing authority's judgment to 69200
carry out this section. The costs of such services are payable 69201
from funds of the state infrastructure bank.69202

       (C) Except as otherwise provided in this division, the 69203
holders or owners of such obligations shall have no right to have 69204
moneys raised by taxation by the state of Ohio obligated or 69205
pledged, and moneys so raised shall not be obligated or pledged,69206
for the payment of bond service charges. The municipal 69207
corporations and counties may pledge and obligate moneys received 69208
pursuant to sections 4501.04, 5709.42, 5709.79, 5735.23, 5735.27, 69209
and 5735.291 of the Revised Code to the payment of amounts payable 69210
by those municipal corporations and counties to the state 69211
infrastructure bank pursuant to section 5531.09 of the Revised 69212
Code, and the bond proceedings for obligations may provide that 69213
such payments shall constitute pledged receipts, provided such 69214
moneys are obligated, pledged, and paid only with respect to 69215
obligations issued exclusively for public transportation projects. 69216
The right of such holders and owners to the payment of bond 69217
service charges is limited to all or that portion of the pledged 69218
receipts and those special funds pledged thereto pursuant to the 69219
bond proceedings for such obligations in accordance with this 69220
section, and each such obligation shall bear on its face a 69221
statement to that effect.69222

       (D) Obligations shall be authorized by order of the issuing 69223
authority and the bond proceedings shall provide for the purpose 69224
thereof and the principal amount or amounts, and shall provide for 69225
or authorize the manner or agency for determining the principal 69226
maturity or maturities, not exceeding twenty-five years from the 69227
date of issuance, the interest rate or rates or the maximum 69228
interest rate, the date of the obligations and the dates of 69229
payment of interest thereon, their denomination, and the 69230
establishment within or without the state of a place or places of 69231
payment of bond service charges. Sections 9.98 to 9.983 of the 69232
Revised Code are applicable to obligations issued under this 69233
section. The purpose of such obligations may be stated in the bond 69234
proceedings in terms describing the general purpose or purposes to 69235
be served. The bond proceedings also shall provide, subject to the 69236
provisions of any other applicable bond proceedings, for the 69237
pledge of all, or such part as the issuing authority may69238
determine, of the pledged receipts and the applicable special fund 69239
or funds to the payment of bond service charges, which pledges may 69240
be made either prior or subordinate to other expenses, claims, or 69241
payments, and may be made to secure the obligations on a parity 69242
with obligations theretofore or thereafter issued, if and to the 69243
extent provided in the bond proceedings. The pledged receipts and 69244
special funds so pledged and thereafter received by the state 69245
immediately are subject to the lien of such pledge without any 69246
physical delivery thereof or further act, and the lien of any such 69247
pledges is valid and binding against all parties having claims of 69248
any kind against the state or any governmental agency of the 69249
state, irrespective of whether such parties have notice thereof, 69250
and shall create a perfected security interest for all purposes of 69251
Chapter 1309. of the Revised Code, without the necessity for 69252
separation or delivery of funds or for the filing or recording of 69253
the bond proceedings by which such pledge is created or any 69254
certificate, statement, or other document with respect thereto; 69255
and the pledge of such pledged receipts and special funds is 69256
effective and the money therefrom and thereof may be applied to 69257
the purposes for which pledged without necessity for any act of 69258
appropriation. Every pledge, and every covenant and agreement made 69259
with respect thereto, made in the bond proceedings may therein be 69260
extended to the benefit of the owners and holders of obligations 69261
authorized by this section, and to any trustee therefor, for the 69262
further security of the payment of the bond service charges.69263

       (E) The bond proceedings may contain additional provisions as 69264
to:69265

       (1) The redemption of obligations prior to maturity at the69266
option of the issuing authority at such price or prices and under69267
such terms and conditions as are provided in the bond proceedings;69268

       (2) Other terms of the obligations;69269

       (3) Limitations on the issuance of additional obligations;69270

       (4) The terms of any trust agreement or indenture securing69271
the obligations or under which the same may be issued;69272

       (5) The deposit, investment, and application of special69273
funds, and the safeguarding of moneys on hand or on deposit,69274
without regard to Chapter 131. or 135. of the Revised Code, but69275
subject to any special provisions of this section with respect to 69276
particular funds or moneys, provided that any bank or trust69277
company which acts as depository of any moneys in the special69278
funds may furnish such indemnifying bonds or may pledge such69279
securities as required by the issuing authority;69280

       (6) Any or every provision of the bond proceedings being69281
binding upon such officer, board, commission, authority, agency,69282
department, or other person or body as may from time to time have69283
the authority under law to take such actions as may be necessary69284
to perform all or any part of the duty required by such provision;69285

       (7) Any provision that may be made in a trust agreement or69286
indenture;69287

       (8) Any other or additional agreements with the holders of69288
the obligations, or the trustee therefor, relating to the69289
obligations or the security therefor, including the assignment of69290
mortgages or other security relating to financial assistance for 69291
qualified projects under section 5531.09 of the Revised Code.69292

       (F) The obligations may have the great seal of the state or a 69293
facsimile thereof affixed thereto or printed thereon. The69294
obligations and any coupons pertaining to obligations shall be69295
signed or bear the facsimile signature of the issuing authority. 69296
Any obligations or coupons may be executed by the person who, on69297
the date of execution, is the proper issuing authority although on 69298
the date of such bonds or coupons such person was not the issuing 69299
authority. In case the issuing authority whose signature or a 69300
facsimile of whose signature appears on any such obligation or 69301
coupon ceases to be the issuing authority before delivery thereof, 69302
such signature or facsimile nevertheless is valid and sufficient 69303
for all purposes as if the former issuing authority had remained 69304
the issuing authority until such delivery; and in case the seal to 69305
be affixed to obligations has been changed after a facsimile of 69306
the seal has been imprinted on such obligations, such facsimile 69307
seal shall continue to be sufficient as to such obligations and 69308
obligations issued in substitution or exchange therefor.69309

       (G) All obligations are negotiable instruments and securities 69310
under Chapter 1308. of the Revised Code, subject to the provisions 69311
of the bond proceedings as to registration. The obligations may be 69312
issued in coupon or in registered form, or both, as the issuing 69313
authority determines. Provision may be made for the registration 69314
of any obligations with coupons attached thereto as to principal 69315
alone or as to both principal and interest, their exchange for 69316
obligations so registered, and for the conversion or reconversion 69317
into obligations with coupons attached thereto of any obligations 69318
registered as to both principal and interest, and for reasonable 69319
charges for such registration, exchange, conversion, and 69320
reconversion.69321

       (H) Obligations may be sold at public sale or at private69322
sale, as determined in the bond proceedings.69323

       (I) Pending preparation of definitive obligations, the69324
issuing authority may issue interim receipts or certificates which 69325
shall be exchanged for such definitive obligations.69326

       (J) In the discretion of the issuing authority, obligations 69327
may be secured additionally by a trust agreement or indenture 69328
between the issuing authority and a corporate trustee which may be 69329
any trust company or bank having its principal place of business 69330
within the state. Any such agreement or indenture may contain the 69331
order authorizing the issuance of the obligations, any provisions 69332
that may be contained in any bond proceedings, and other 69333
provisions which are customary or appropriate in an agreement or 69334
indenture of such type, including, but not limited to:69335

       (1) Maintenance of each pledge, trust agreement, indenture, 69336
or other instrument comprising part of the bond proceedings until 69337
the state has fully paid the bond service charges on the 69338
obligations secured thereby, or provision therefor has been made;69339

       (2) In the event of default in any payments required to be69340
made by the bond proceedings, or any other agreement of the69341
issuing authority made as a part of the contract under which the69342
obligations were issued, enforcement of such payments or agreement 69343
by mandamus, the appointment of a receiver, suit in equity, action 69344
at law, or any combination of the foregoing;69345

       (3) The rights and remedies of the holders of obligations and 69346
of the trustee, and provisions for protecting and enforcing them, 69347
including limitations on the rights of individual holders of69348
obligations;69349

       (4) The replacement of any obligations that become mutilated 69350
or are destroyed, lost, or stolen;69351

       (5) Such other provisions as the trustee and the issuing69352
authority agree upon, including limitations, conditions, or69353
qualifications relating to any of the foregoing.69354

       (K) Any holder of obligations or a trustee under the bond69355
proceedings, except to the extent that the holder's or trustee's 69356
rights are restricted by the bond proceedings, may by any suitable 69357
form of legal proceedings, protect and enforce any rights under 69358
the laws of this state or granted by such bond proceedings. Such 69359
rights include the right to compel the performance of all duties 69360
of the issuing authority and the director of transportation 69361
required by the bond proceedings or sections 5531.09 and 5531.10 69362
of the Revised Code; to enjoin unlawful activities; and in the69363
event of default with respect to the payment of any bond service 69364
charges on any obligations or in the performance of any covenant 69365
or agreement on the part of the issuing authority or the director 69366
of transportation in the bond proceedings, to apply to a court 69367
having jurisdiction of the cause to appoint a receiver to receive 69368
and administer the pledged receipts and special funds, other than 69369
those in the custody of the treasurer of state, which are pledged 69370
to the payment of the bond service charges on such obligations or 69371
which are the subject of the covenant or agreement, with full 69372
power to pay, and to provide for payment of bond service charges 69373
on, such obligations, and with such powers, subject to the 69374
direction of the court, as are accorded receivers in general 69375
equity cases, excluding any power to pledge additional revenues or 69376
receipts or other income or moneys of the state or local69377
governmental entities, or agencies thereof, to the payment of such 69378
principal and interest and excluding the power to take possession 69379
of, mortgage, or cause the sale or otherwise dispose of any 69380
project facilities.69381

       Each duty of the issuing authority and the issuing69382
authority's officers and employees, and of each state or local69383
governmental agency and its officers, members, or employees, 69384
undertaken pursuant to the bond proceedings or any loan, loan69385
guarantee, lease, lease-purchase agreement, or other agreement 69386
made under authority of section 5531.09 of the Revised Code, and 69387
in every agreement by or with the issuing authority, is hereby 69388
established as a duty of the issuing authority, and of each such 69389
officer, member, or employee having authority to perform such 69390
duty, specifically enjoined by the law resulting from an office, 69391
trust, or station within the meaning of section 2731.01 of the 69392
Revised Code.69393

       The person who is at the time the issuing authority, or the69394
issuing authority's officers or employees, are not liable in their 69395
personal capacities on any obligations issued by the issuing 69396
authority or any agreements of or with the issuing authority.69397

       (L) The issuing authority may authorize and issue obligations 69398
for the refunding, including funding and retirement, and advance 69399
refunding with or without payment or redemption prior to maturity, 69400
of any obligations previously issued by the issuing authority or 69401
district obligations. Such refunding obligations may be issued in 69402
amounts sufficient for payment of the principal amount of the 69403
prior obligations or district obligations, any redemption premiums 69404
thereon, principal maturities of any such obligations or district 69405
obligations maturing prior to the redemption of the remaining69406
obligations or district obligations on a parity therewith, 69407
interest accrued or to accrue to the maturity dates or dates of 69408
redemption of such obligations or district obligations, and any 69409
expenses incurred or to be incurred in connection with such 69410
issuance and such refunding, funding, and retirement. Subject to 69411
the bond proceedings therefor, the portion of proceeds of the sale 69412
of refunding obligations issued under this division to be applied 69413
to bond service charges on the prior obligations or district 69414
obligations shall be credited to an appropriate account held by 69415
the trustee for such prior or new obligations or to the 69416
appropriate account in the bond service fund for such obligations 69417
or district obligations. Obligations authorized under this 69418
division shall be deemed to be issued for those purposes for which 69419
such prior obligations or district obligations were issued and are 69420
subject to the provisions of this section pertaining to other 69421
obligations, except as otherwise provided in this section. The69422
last maturity of obligations authorized under this division shall 69423
not be later than twenty-five years from the date of issuance of 69424
the original securities issued for the original purpose.69425

       (M) The authority to issue obligations under this section69426
includes authority to issue obligations in the form of bond69427
anticipation notes and to renew the same from time to time by the69428
issuance of new notes. The holders of such notes or interest69429
coupons pertaining thereto shall have a right to be paid solely69430
from the pledged receipts and special funds that may be pledged to 69431
the payment of the bonds anticipated, or from the proceeds of such 69432
bonds or renewal notes, or both, as the issuing authority provides 69433
in the order authorizing such notes. Such notes may be 69434
additionally secured by covenants of the issuing authority to the 69435
effect that the issuing authority and the state will do such or 69436
all things necessary for the issuance of such bonds or renewal 69437
notes in the appropriate amount, and apply the proceeds thereof to 69438
the extent necessary, to make full payment of the principal of and 69439
interest on such notes at the time or times contemplated, as 69440
provided in such order. For such purpose, the issuing authority 69441
may issue bonds or renewal notes in such principal amount and upon 69442
such terms as may be necessary to provide funds to pay when 69443
required the principal of and interest on such notes, 69444
notwithstanding any limitations prescribed by or for purposes of 69445
this section. Subject to this division, all provisions for and 69446
references to obligations in this section are applicable to notes 69447
authorized under this division.69448

       The issuing authority in the bond proceedings authorizing the 69449
issuance of bond anticipation notes shall set forth for such bonds 69450
an estimated interest rate and a schedule of principal payments 69451
for such bonds and the annual maturity dates thereof.69452

       (N) Obligations issued under this section are lawful69453
investments for banks, societies for savings, savings and loan69454
associations, deposit guarantee associations, trust companies,69455
trustees, fiduciaries, insurance companies, including domestic for 69456
life and domestic not for life, trustees or other officers having 69457
charge of sinking and bond retirement or other special funds of 69458
political subdivisions and taxing districts of this state, the 69459
commissioners of the sinking fund of the state, the administrator 69460
of workers' compensation, the state teachers retirement system, 69461
the public employees retirement system, the school employees 69462
retirement system, and the Ohio police and fire pension fund, 69463
notwithstanding any other provisions of the Revised Code or rules 69464
adopted pursuant thereto by any agency of the state with respect 69465
to investments by them, and are also acceptable as security for 69466
the deposit of public moneys.69467

       (O) Unless otherwise provided in any applicable bond69468
proceedings, moneys to the credit of or in the special funds69469
established by or pursuant to this section may be invested by or69470
on behalf of the issuing authority only in notes, bonds, or other69471
obligations of the United States, or of any agency or69472
instrumentality of the United States, obligations guaranteed as to 69473
principal and interest by the United States, obligations of this 69474
state or any political subdivision of this state, and certificates 69475
of deposit of any national bank located in this state and any 69476
bank, as defined in section 1101.01 of the Revised Code, subject 69477
to inspection by the superintendent of financial institutions. If 69478
the law or the instrument creating a trust pursuant to division 69479
(J) of this section expressly permits investment in direct 69480
obligations of the United States or an agency of the United 69481
States, unless expressly prohibited by the instrument, such moneys 69482
also may be invested in no-front-end-load money market mutual 69483
funds consisting exclusively of obligations of the United States 69484
or an agency of the United States and in repurchase agreements, 69485
including those issued by the fiduciary itself, secured by 69486
obligations of the United States or an agency of the United 69487
States; and in collective investment funds as defined in division 69488
(A) of section 1111.01 of the Revised Code and consisting 69489
exclusively of any such securities. The income from such 69490
investments shall be credited to such funds as the issuing 69491
authority determines, and such investments may be sold at such 69492
times as the issuing authority determines or authorizes.69493

       (P) Provision may be made in the applicable bond proceedings 69494
for the establishment of separate accounts in the bond service 69495
fund and for the application of such accounts only to the 69496
specified bond service charges on obligations pertinent to such 69497
accounts and bond service fund and for other accounts therein 69498
within the general purposes of such fund. Unless otherwise 69499
provided in any applicable bond proceedings, moneys to the credit 69500
of or in the several special funds established pursuant to this 69501
section shall be disbursed on the order of the treasurer of state, 69502
provided that no such order is required for the payment from the 69503
bond service fund when due of bond service charges on obligations.69504

       (Q)(1) The issuing authority may pledge all, or such portion69505
as the issuing authority determines, of the pledged receipts to69506
the payment of bond service charges on obligations issued under69507
this section, and for the establishment and maintenance of any69508
reserves, as provided in the bond proceedings, and make other69509
provisions therein with respect to pledged receipts as authorized69510
by this chapter, which provisions are controlling notwithstanding69511
any other provisions of law pertaining thereto.69512

       (2) An action taken under division (Q)(2) of this section 69513
does not limit the generality of division (Q)(1) of this section, 69514
and is subject to division (C) of this section and, if and to the 69515
extent otherwise applicable, Section 13 of Article VIII, Ohio 69516
Constitution. The bond proceedings may contain a covenant that, in 69517
the event the pledged receipts primarily pledged and required to 69518
be used for the payment of bond service charges on obligations 69519
issued under this section, and for the establishment and 69520
maintenance of any reserves, as provided in the bond proceedings, 69521
are insufficient to make any such payment in full when due, or to69522
maintain any such reserve, the director of transportation shall so 69523
notify the governor, and shall determine to what extent, if any, 69524
the payment may be made or moneys may be restored to the reserves 69525
from lawfully available moneys previously appropriated for that 69526
purpose to the department of transportation. The covenant also may69527
provide that if the payments are not made or the moneys are not 69528
immediately and fully restored to the reserves from such moneys, 69529
the director shall promptly submit to the governor and to the 69530
director of budget and management a written request for either or 69531
both of the following:69532

       (a) That the next biennial budget submitted by the governor 69533
to the general assembly include an amount to be appropriated from 69534
lawfully available moneys to the department for the purpose of and 69535
sufficient for the payment in full of bond service charges 69536
previously due and for the full replenishment of the reserves;69537

       (b) That the general assembly be requested to increase69538
appropriations from lawfully available moneys for the department 69539
in the current biennium sufficient for the purpose of and for the 69540
payment in full of bond service charges previously due and to come 69541
due in the biennium and for the full replenishment of the 69542
reserves.69543

       The director of transportation shall include with such 69544
requests a recommendation that the payment of the bond service 69545
charges and the replenishment of the reserves be made in the 69546
interest of maximizing the benefits of the state infrastructure69547
bank. Any such covenant shall not obligate or purport to obligate 69548
the state to pay the bond service charges on such bonds or notes 69549
or to deposit moneys in a reserve established for such payments 69550
other than from moneys that may be lawfully available and 69551
appropriated for that purpose during the then-current biennium.69552

       (R) There is hereby created the state infrastructure bank 69553
revenue bond service fund, which shall be in the custody of the 69554
treasurer of state but shall not be a part of the state treasury. 69555
All moneys received by or on account of the issuing authority or 69556
state agencies and required by the applicable bond proceedings, 69557
consistent with this section, to be deposited, transferred, or 69558
credited to the bond service fund, and all other moneys 69559
transferred or allocated to or received for the purposes of the69560
fund, shall be deposited and credited to such fund and to any69561
separate accounts therein, subject to applicable provisions of the 69562
bond proceedings, but without necessity for any act of69563
appropriation. The state infrastructure bank revenue bond service 69564
fund is a trust fund and is hereby pledged to the payment of bond 69565
service charges to the extent provided in the applicable bond 69566
proceedings, and payment thereof from such fund shall be made or 69567
provided for by the treasurer of state in accordance with such 69568
bond proceedings without necessity for any act of appropriation.69569

       (S) The obligations issued pursuant to this section, the 69570
transfer thereof, and the income therefrom, including any profit 69571
made on the sale thereof, shall at all times be free from taxation 69572
within this state.69573

       Sec. 5540.01.  As used in this chapter:69574

       (A) "Transportation improvement district" or "district" means 69575
a transportation improvement district designated pursuant to 69576
section 5540.02 of the Revised Code.69577

       (B) "Governmental agency" means a department, division, or69578
other unit of state government; a county, township, or municipal69579
corporation or other political subdivision; a regional transit69580
authority or regional transit commission created pursuant to69581
Chapter 306. of the Revised Code; a port authority created69582
pursuant to Chapter 4582. of the Revised Code; and the United69583
States or any agency thereof.69584

       (C) "Project" means a street, highway, or other69585
transportation project constructed or improved under this chapter 69586
and includes all bridges, tunnels, overpasses, underpasses, 69587
interchanges, approaches, those portions of connecting streets or 69588
highways that serve interchanges and are determined by the 69589
district to be necessary for the safe merging of traffic between 69590
the project and those streets or highways, service facilities, and 69591
administration, storage, and other buildings, property, and 69592
facilities, that the district considers necessary for the 69593
operation of the project, together with all property and rights 69594
that must be acquired by the district for the construction, 69595
maintenance, or operation of the project.69596

       (D) "Cost," as applied to the construction of a project,69597
includes the cost of construction, including bridges over or under 69598
existing highways and railroads, acquisition of all property 69599
acquired by the district for such construction, demolishing or 69600
removing any buildings or structures on land so acquired, 69601
including the cost of acquiring any lands to which such buildings 69602
or structures may be moved, site clearance, improvement, and 69603
preparation, diverting streets or highways, interchanges with 69604
streets or highways, access roads to private property, including 69605
the cost of land or easements therefor, all machinery, 69606
furnishings, and equipment, communications facilities, financing 69607
expenses, interest prior to and during construction and for one 69608
year after completion of construction, traffic estimates,69609
indemnity and surety bonds and premiums on insurance, and69610
guarantees, engineering, feasibility studies, and legal expenses,69611
plans, specifications, surveys, estimates of cost and revenues,69612
other expenses necessary or incidental to determining the69613
feasibility or practicability of constructing a project, and such69614
other expense as may be necessary or incident to the construction69615
of the project and the financing of such construction. Any69616
obligation or expense incurred by any governmental agency or69617
person for surveys, borings, preparation of plans and69618
specifications, and other engineering services, or any other cost69619
described above, in connection with the construction of a project69620
may be regarded as part of the cost of the project and reimbursed69621
from revenues, taxes, or the proceeds of bonds as authorized by69622
this chapter.69623

       (E) "Owner" includes any person having any title or interest 69624
in any property authorized to be acquired by a district under this 69625
chapter.69626

       (F) "Revenues" means all moneys received by a district with 69627
respect to the lease, sublease, or sale, including installment 69628
sale, conditional sale, or sale under a lease-purchase agreement, 69629
of a project, all moneys received by a district under an agreement 69630
pursuant to Section 515.03 of H.B. 66 of the 126th General 69631
Assembly, any gift or grant received with respect to a project, 69632
tolls, special assessments levied by the district, proceeds of 69633
bonds to the extent the use thereof for payment of principal or of69634
premium, if any, or interest on the bonds is authorized by the69635
district, proceeds from any insurance, condemnation, or guaranty69636
pertaining to a project or property mortgaged to secure bonds or69637
pertaining to the financing of a project, and income and profit69638
from the investment of the proceeds of bonds or of any revenues.69639

       (G) "Street or highway" has the same meaning as in section69640
4511.01 of the Revised Code.69641

       (H) "Financing expenses" means all costs and expenses69642
relating to the authorization, issuance, sale, delivery,69643
authentication, deposit, custody, clearing, registration,69644
transfer, exchange, fractionalization, replacement, payment, and69645
servicing of bonds including, without limitation, costs and69646
expenses for or relating to publication and printing, postage,69647
delivery, preliminary and final official statements, offering69648
circulars, and informational statements, travel and69649
transportation, underwriters, placement agents, investment69650
bankers, paying agents, registrars, authenticating agents,69651
remarketing agents, custodians, clearing agencies or corporations, 69652
securities depositories, financial advisory services, 69653
certifications, audits, federal or state regulatory agencies, 69654
accounting and computation services, legal services and obtaining 69655
approving legal opinions and other legal opinions, credit ratings, 69656
redemption premiums, and credit enhancement facilities.69657

       (I) "Bond proceedings" means the resolutions, trust69658
agreements, certifications, notices, sale proceedings, leases,69659
lease-purchase agreements, assignments, credit enhancement69660
facility agreements, and other agreements, instruments, and69661
documents, as amended and supplemented, or any one or more of69662
combination thereof, authorizing, or authorizing or providing for69663
the terms and conditions applicable to, or providing for the69664
security or sale or award or liquidity of, bonds, and includes the 69665
provisions set forth or incorporated in those bonds and bond69666
proceedings.69667

       (J) "Bond service charges" means principal, including any69668
mandatory sinking fund or mandatory redemption requirements for69669
retirement of bonds, and interest and any redemption premium69670
payable on bonds, as those payments come due and are payable to69671
the bondholder or to a person making payment under a credit69672
enhancement facility of those bond service charges to a69673
bondholder.69674

       (K) "Bond service fund" means the applicable fund created by 69675
the bond proceedings for and pledged to the payment of bond69676
service charges on bonds provided for by those proceedings,69677
including all moneys and investments, and earnings from69678
investments, credited and to be credited to that fund as provided69679
in the bond proceedings.69680

       (L) "Bonds" means bonds, notes, including notes anticipating 69681
bonds or other notes, commercial paper, certificates of 69682
participation, or other evidences of obligation, including any69683
interest coupons pertaining thereto, issued pursuant to this69684
chapter.69685

       (M) "Net revenues" means revenues lawfully available to pay 69686
both current operating expenses of a district and bond service 69687
charges in any fiscal year or other specified period, less current 69688
operating expenses of the district and any amount necessary to 69689
maintain a working capital reserve for that period.69690

       (N) "Pledged revenues" means net revenues, moneys and69691
investments, and earnings on those investments, in the applicable69692
bond service fund and any other special funds, and the proceeds of 69693
any bonds issued for the purpose of refunding prior bonds, all as 69694
lawfully available and by resolution of the district committed for 69695
application as pledged revenues to the payment of bond service 69696
charges on particular issues of bonds.69697

       (O) "Special funds" means the applicable bond service fund69698
and any accounts and subaccounts in that fund, any other funds or69699
accounts permitted by and established under, and identified as a69700
special fund or special account in, the bond proceedings,69701
including any special fund or account established for purposes of69702
rebate or other requirements under federal income tax laws.69703

       (P) "Credit enhancement facilities" means letters of credit, 69704
lines of credit, standby, contingent, or firm securities purchase 69705
agreements, insurance, or surety arrangements, guarantees, and 69706
other arrangements that provide for direct or contingent payment 69707
of bond service charges, for security or additional security in 69708
the event of nonpayment or default in respect of bonds, or for 69709
making payment of bond service charges and at the option and on 69710
demand of bondholders or at the option of the district or upon 69711
certain conditions occurring under put or similar arrangements, or 69712
for otherwise supporting the credit or liquidity of the bonds, and 69713
includes credit, reimbursement, marketing, remarketing, indexing, 69714
carrying, interest rate hedge, and subrogation agreements, and 69715
other agreements and arrangements for payment and reimbursement of 69716
the person providing the credit enhancement facility and the 69717
security for that payment and reimbursement.69718

       (Q) "Refund" means to fund and retire outstanding bonds,69719
including advance refunding with or without payment or redemption69720
prior to stated maturity.69721

       (R) "Property" includes interests in property.69722

       (S) "Administrative agent," "agent," "commercial paper,"69723
"floating rate interest structure," "indexing agent," "interest 69724
rate hedge," "interest rate period," "put arrangement," and 69725
"remarketing agent" have the same meanings as in section 9.98 of 69726
the Revised Code.69727

       (T) "Outstanding" as applied to bonds means outstanding in69728
accordance with the terms of the bonds and the applicable bond69729
proceedings.69730

       (U) "Interstate system" has the same meaning as in section69731
5516.01 of the Revised Code.69732

       Sec. 5540.09.  (A) The bonds do not constitute a debt, or a 69733
pledge of the faith and credit, of the state or of any political 69734
subdivision of the state. Bond service charges on outstanding 69735
bonds are payable solely from the pledged revenues pledged for 69736
their payment as authorized by this chapter and as provided in the 69737
bond proceedings. All bonds shall contain on their face a69738
statement to that effect.69739

       (B) All expenses incurred in carrying out this chapter shall 69740
be payable solely from revenues provided under this chapter. This69741
Except as provided in Section 515.03 of H.B. 66 of the 126th 69742
General Assembly, this chapter does not authorize the board of 69743
trustees of a district to incur indebtedness or liability on 69744
behalf of or payable by the state or any political subdivision of69745
the state.69746

       Sec. 5549.01.  The board of county commissioners may purchase 69747
such machinery, tools, or other equipment, including special 69748
wearing apparel, for the construction, improvement, maintenance, 69749
or repair of the highways, bridges, and culverts under its 69750
jurisdiction as it deems necessary. The board may also purchase, 69751
hire, or lease automobiles, motorcycles, or other conveyances and69752
maintain them for the use of the county engineer and histhe69753
engineer's assistants when on official business. All such 69754
machinery, tools, and equipment, including special wearing 69755
apparel, and conveyances belonging to the county shall be under 69756
the care and custody of the engineer, and shall be plainly and 69757
conspicuously marked as the property of the county.69758

       The engineer shall annually, on the fifteenth day of 69759
November, make a written inventory of all such items, indicating 69760
each article, stating the value thereof, and the estimated cost of 69761
all necessary repairs thereto, and deliver such inventory to the 69762
board, which shall cause it to be placed on file. At the same time 69763
he shall file with the board his written recommendations as to 69764
what machinery, tools, and equipment, including special wearing 69765
apparel, and conveyances should be purchased for the use of the 69766
county during the ensuing year and the probable cost thereof.69767

       The board shall provide a suitable place for housing and 69768
storing machinery, tools, and equipment, including special wearing 69769
apparel, materials, and conveyances owned by the county, and may 69770
purchase the necessary material and construct, or enter into an 69771
agreement with a railroad company to construct, one switch or spur 69772
track from the right of way of such railroad company to land or69773
storage house owned by the county. All expenditures authorized by 69774
this section shall be paid out of any available road funds of the 69775
county.69776

       Purchases, hiring, or leasing made by the board pursuant to 69777
this section shall be governed by sections 307.86 to 307.92, 69778
inclusive, of the Revised Code.69779

       Sec. 5552.01.  As used in this chapter:69780

       (A) "Metropolitan planning organization" has the same meaning 69781
as in division (A)(7) of section 3704.14 of the Revised Codemeans 69782
a metropolitan planning organization designated under section 9(a) 69783
of the "Federal-Aid Highway Act of 1962," 76 Stat. 1148, 23 U.S.C. 69784
134, as amended.69785

       (B) "Urban township" means a township that has a population69786
in the unincorporated area of the township of fifteen thousand or69787
more and that has adopted a limited home rule government under69788
section 504.02 of the Revised Code.69789

       Sec. 5573.13.  The proportion of the compensation, damages,69790
and costs of any road improvement to be paid by the township shall 69791
be paid out of any road improvement fund available therefor. For 69792
the purpose of providing by taxation a fund for the payment of the 69793
township's proportion of the compensation, damages, and costs of 69794
constructing, reconstructing, resurfacing, or improving roads 69795
under sections 5571.01, 5571.06, 5571.07, 5571.15, 5573.01 to 69796
5573.15, inclusive, and 5575.02 to 5575.09, inclusive, of the 69797
Revised Code, and for the purpose of maintaining, repairing, or 69798
dragging any public road or part thereof under their jurisdiction, 69799
in the manner provided in sections 5571.02 to 5571.05, inclusive,69800
5571.08, 5571.12, 5571.13, and 5575.01 of the Revised Code, the 69801
board of trustees may levy, annually, a tax not exceeding three 69802
mills upon each dollar of the taxable property of said township. 69803
Such levy shall be in addition to all other levies authorized for 69804
township purposes, and subject only to the limitation on the 69805
combined maximum rate for all taxes now in force. The taxes so 69806
authorized shall be placed by the county auditor upon the tax 69807
duplicate, against the taxable property of the township, and 69808
collected by the county treasurer as other taxes. When collected, 69809
such taxes shall be paid to the township clerk of the township 69810
from which they are collected, and the money so received shall be 69811
under the control of the board for the purposes for which the 69812
taxes were levied.69813

       Sec. 5703.052.  (A) There is hereby created in the state69814
treasury the tax refund fund, from which refunds shall be paid for 69815
taxes illegally or erroneously assessed or collected, or for any 69816
other reason overpaid, that are levied by Chapter 4301., 4305., 69817
5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 5748., 69818
5749., or 5753.5751., and sections 3737.71, 3905.35, 3905.36,69819
4303.33, 5707.03, 5725.18, 5727.28, 5727.38, 5727.81, and 5727.811 69820
of the Revised Code. Refunds for fees illegally or erroneously 69821
assessed or collected, or for any other reason overpaid, that are 69822
levied by sections 3734.90 to 3734.9014 of the Revised Code also 69823
shall be paid from the fund. However, refunds for taxes levied 69824
under section 5739.101 of the Revised Code shall not be paid from 69825
the tax refund fund, but shall be paid as provided in section69826
5739.104 of the Revised Code.69827

       (B)(1) Upon certification by the tax commissioner to the 69828
treasurer of state of a tax refund or fee refund, or by the69829
superintendent of insurance of a domestic or foreign insurance tax69830
refund, the treasurer of state shall place the amount certified to69831
the credit of the fund. The certified amount transferred shall be69832
derived from current receipts of the same tax or the fee from 69833
which the refund arose. If current receipts from the tax or fee 69834
from which the refund arose are inadequate to make the transfer of 69835
the amount so certified, the treasurer of state shall transfer 69836
such certified amount from current receipts of the sales tax 69837
levied by section 5739.02 of the Revised Code.69838

       (2) When the treasurer of state provides for the payment of a 69839
refund of a tax or fee from the current receipts of the sales tax, 69840
and the refund is for a tax or fee that is not levied by the 69841
state, the tax commissioner shall recover the amount of that 69842
refund from the next distribution of that tax or fee that 69843
otherwise would be made to the taxing jurisdiction. If the amount 69844
to be recovered would exceed twenty-five per cent of the next 69845
distribution of that tax or fee, the commissioner may spread the 69846
recovery over more than one future distribution, taking into 69847
account the amount to be recovered and the amount of the 69848
anticipated future distributions. In no event may the commissioner 69849
spread the recovery over a period to exceed twenty-four months.69850

       Sec. 5703.053.  As used in this section, "postal service"69851
means the United States postal service.69852

       An application to the tax commissioner for a tax refund under69853
section 4307.05, 4307.07, 5727.28, 5727.91, 5728.061, 5735.122,69854
5735.13, 5735.14, 5735.141, 5735.142, 5739.07, 5741.10, 5743.05,69855
5743.53, 5745.11, 5749.08, or 5753.065751.08 of the Revised Code 69856
or division (B) of section 5703.05 of the Revised Code, or a fee69857
refunded under section 3734.905 of the Revised Code, that is69858
received after the last day for filing under such section shall be69859
considered to have been filed in a timely manner if:69860

       (A) The application is delivered by the postal service and69861
the earliest postal service postmark on the cover in which the69862
application is enclosed is not later than the last day for filing69863
the application;69864

       (B) The application is delivered by the postal service, the69865
only postmark on the cover in which the application is enclosed69866
was affixed by a private postal meter, the date of that postmark69867
is not later than the last day for filing the application, and the69868
application is received within seven days of such last day; or69869

       (C) The application is delivered by the postal service, no69870
postmark date was affixed to the cover in which the application is69871
enclosed or the date of the postmark so affixed is not legible,69872
and the application is received within seven days of the last day69873
for making the application.69874

       Sec. 5703.057.  (A) For the efficient administration of the 69875
taxes and fees administered by the tax commissioner, the 69876
commissioner may require that any person filing a tax document 69877
with the department of taxation provide identifying information, 69878
which may include the person's social security number, federal 69879
employer identification number, or other identification number 69880
requested by the commissioner. A person required by the 69881
commissioner to provide identifying information who has 69882
experienced any change with respect to that information shall 69883
notify the commissioner of the change prior to, or upon, filing 69884
the next tax document requiring such identifying information.69885

       (B) When transmitting or otherwise making use of a tax 69886
document that contains a person's social security number, the 69887
commissioner shall take all reasonable measures necessary to 69888
ensure that the number is not capable of being viewed by the 69889
general public, including, when necessary, masking the number so 69890
that it is not readily discernible by the general public.69891

       (C)(1) If the commissioner makes a request for identifying 69892
information and the commissioner does not receive valid 69893
identifying information within thirty days of making the request, 69894
the commissioner may impose a penalty upon the person to whom the 69895
request was directed of up to one hundred dollars. If, after the 69896
expiration of this thirty day period, the commissioner makes one 69897
or more subsequent requests for identifying information and the 69898
person to whom the subsequent request is directed fails to provide 69899
valid identifying information within thirty days of the 69900
commissioner's subsequent request, the commissioner may impose an 69901
additional penalty of up to two hundred dollars for each 69902
subsequent request not complied with in a timely fashion.69903

       (2) If a person required by the commissioner to provide 69904
identifying information does not notify the commissioner of a 69905
change with respect to that information as required under division 69906
(A) of this section within thirty days after filing the next tax 69907
document requiring such identifying information, the commissioner 69908
may impose a penalty of up to fifty dollars.69909

       (3) The penalties provided for under divisions (C)(1) and (2) 69910
of this section may be billed and assessed in the same manner as 69911
the tax or fee with respect to which the identifying information 69912
is sought and are in addition to any applicable criminal penalties 69913
described in division (D) of this section and any other penalties 69914
that may be imposed by the commissioner by law.69915

       (D) Section 5703.26 of the Revised Code applies with respect 69916
to false or fraudulent identifying information provided by a 69917
person to the commissioner under this section.69918

       Sec. 5703.47.  (A) As used in this section, "federal69919
short-term rate" means the rate of the average market yield on69920
outstanding marketable obligations of the United States with69921
remaining periods to maturity of three years or less, as69922
determined under section 1274 of the "Internal Revenue Code of69923
1986," 100 Stat. 2085, 26 U.S.C.A. 1274, for July of the current69924
year.69925

       (B) On the fifteenth day of October of each year, the tax69926
commissioner shall determine the federal short-term rate. For69927
purposes of any section of the Revised Code requiring interest to69928
be computed at the rate per annum required by this section, the69929
rate determined by the commissioner under this section, rounded to 69930
the nearest whole number per cent, plus three per cent, shall be 69931
the interest rate per annum used in making the computation for69932
interest that accrues during the following calendar year. For the 69933
purposes of sections 5719.041 and 5731.23 of the Revised Code, 69934
references to the "federal short-term rate" are references to the 69935
federal short-term rate as determined by the tax commissioner 69936
under this section rounded to the nearest whole number per cent.69937

       (C) Within ten days after the interest rate per annum is 69938
determined under this section, the tax commissioner shall notify 69939
the auditor of each county in writing of that rate of interest.69940

       Sec. 5703.50.  As used in sections 5703.50 to 5703.53 of the 69941
Revised Code:69942

       (A) "Tax" includes only those taxes imposed on tangible69943
personal property listed in accordance with Chapter 5711. of the69944
Revised Code and taxes imposed under Chapters 5733., 5739., 5741., 69945
and 5747., and 5751. of the Revised Code.69946

       (B) "Taxpayer" means a person subject to or potentially69947
subject to a tax including an employer required to deduct and69948
withhold any amount under section 5747.06 of the Revised Code.69949

       (C) "Audit" means the examination of a taxpayer or the69950
inspection of the books, records, memoranda, or accounts of a69951
taxpayer for the purpose of determining liability for a tax.69952

       (D) "Assessment" means a notice of underpayment or nonpayment 69953
of a tax issued pursuant to section 5711.26, 5711.32, 5733.11, 69954
5739.13, 5741.11, 5741.13, or 5747.13, or 5751.09 of the Revised69955
Code.69956

       (E) "County auditor" means the auditor of the county in which 69957
the tangible personal property subject to a tax is located.69958

       Sec. 5703.70. (A) On the filing of an application for refund69959
under section 3734.905, 4307.05, 4307.07, 5727.28, 5727.91,69960
5728.061, 5733.12, 5735.122, 5735.13, 5735.14, 5735.141, 5735.142,69961
5735.18, 5739.07, 5739.071, 5739.104, 5741.10, 5743.05, 5743.53,69962
or 5749.08, or 5751.08 of the Revised Code, or an application for 69963
compensation under section 5739.123 of the Revised Code, if the 69964
tax commissioner determines that the amount of the refund or 69965
compensation to which the applicant is entitled is less than the69966
amount claimed in the application, the commissioner shall give the69967
applicant written notice by ordinary mail of the amount. The69968
notice shall be sent to the address shown on the application 69969
unless the applicant notifies the commissioner of a different 69970
address. The applicant shall have sixty days from the date the69971
commissioner mails the notice to provide additional information to69972
the commissioner or request a hearing, or both.69973

       (B) If the applicant neither requests a hearing nor provides69974
additional information to the tax commissioner within the time69975
prescribed by division (A) of this section, the commissioner shall69976
take no further action, and the refund amount or compensation 69977
amount denied becomes final.69978

       (C)(1) If the applicant requests a hearing within the time69979
prescribed by division (A) of this section, the tax commissioner69980
shall assign a time and place for the hearing and notify the69981
applicant of such time and place, but the commissioner may69982
continue the hearing from time to time as necessary. After the69983
hearing, the commissioner may make such adjustments to the refund 69984
or compensation as the commissioner finds proper, and shall issue 69985
a final determination thereon.69986

       (2) If the applicant does not request a hearing, but provides 69987
additional information, within the time prescribed by division (A) 69988
of this section, the commissioner shall review the information, 69989
make such adjustments to the refund or compensation as the69990
commissioner finds proper, and issue a final determination69991
thereon.69992

       (3) The commissioner shall serve a copy of the final69993
determination made under division (C)(1) or (2) of this section on69994
the applicant in the manner provided in section 5703.37 of the69995
Revised Code, and the decision is final, subject to appeal under69996
section 5717.02 of the Revised Code.69997

       (D) The tax commissioner shall certify to the director of69998
budget and management and treasurer of state for payment from the69999
tax refund fund created by section 5703.052 of the Revised Code,70000
the amount of the refund to be refunded under division (B) or (C) 70001
of this section. The commissioner also shall certify to the 70002
director and treasurer of state for payment from the general 70003
revenue fund the amount of compensation to be paid under division 70004
(B) or (C) of this section.70005

       Sec. 5703.80. There is hereby created in the state treasury 70006
the property tax administration fund. All money to the credit of 70007
the fund shall be used to defray the costs incurred by the 70008
department of taxation in administering the taxation of property 70009
and the equalization of real property valuation.70010

        Each fiscal year between the first and fifteenth days of 70011
July, the tax commissioner shall compute the following amounts for 70012
the property in each taxing district in each county, and certify 70013
to the director of budget and management the sum of those amounts 70014
for all taxing districts in all counties:70015

        (A) Three-tenthsFor fiscal year 2006, thirty-three 70016
hundredths of one per cent of the total amount by which taxes 70017
charged against real property on the general tax list of real and 70018
public utility property were reduced under section 319.302 of the 70019
Revised Code for the preceding tax year;70020

        (B) Fifteen-hundredthsFor fiscal year 2007 and thereafter, 70021
thirty-five hundredths of one per cent of the total amount by 70022
which taxes charged against real property on the general tax list 70023
of real and public utility property were reduced under section 70024
319.302 of the Revised Code for the preceding tax year;70025

       (C) For fiscal year 2006, one-half of one per cent of the 70026
total amount of taxes charged and payable against public utility 70027
personal property on the general tax list of real and public 70028
utility property for the preceding tax year and of the total 70029
amount of taxes charged and payable against tangible personal 70030
property on the general tax list of personal property of the 70031
preceding tax year and for which returns were filed with the tax 70032
commissioner under section 5711.13 of the Revised Code;70033

       (C) Seventy-five(D) For fiscal year 2007, fifty-six70034
hundredths of one per cent of the total amount of taxes charged 70035
and payable against public utility personal property on the 70036
general tax list of real and public utility property for the 70037
preceding tax year and of the total amount of taxes charged and 70038
payable against tangible personal property on the general tax list 70039
of personal property of the preceding tax year and for which 70040
returns were filed with the tax commissioner under section 5711.13 70041
of the Revised Code;70042

       (E) For fiscal year 2008 and thereafter, six-tenths of one 70043
per cent of the total amount of taxes charged and payable against 70044
public utility personal property on the general tax list of real 70045
and public utility property for the preceding tax year and of the 70046
total amount of taxes charged and payable against tangible 70047
personal property on the general tax list of personal property of 70048
the preceding tax year and for which returns were filed with the 70049
tax commissioner under section 5711.13 of the Revised Code.70050

        After receiving the tax commissioner's certification, the 70051
director of budget and management shall transfer from the general 70052
revenue fund to the property tax administration fund one-fourth of 70053
the amount certified on or before each of the following days: the 70054
first days of August, November, February, and May.70055

        On or before the thirtieth day of June of the fiscal year, 70056
the tax commissioner shall certify to the director of budget and 70057
management the sum of the amounts by which the amounts computed 70058
for a taxing district under divisions (A), (B), and (C) of this 70059
section exceeded the distributions to the taxing district under 70060
division (F) of section 321.24 of the Revised Code, and the 70061
director shall transfer that sum from the property tax 70062
administration fund to the general revenue fund.70063

       Sec. 5705.091.  The board of county commissioners of each70064
county shall establish a county mental retardation and70065
developmental disabilities general fund. Notwithstanding sections70066
5705.09 and 5705.10 of the Revised Code, proceeds from levies70067
under section 5705.222 and division (L) of section 5705.19 of the70068
Revised Code shall be deposited to the credit of the county mental70069
retardation and developmental disabilities general fund. Accounts70070
shall be established within the county mental retardation and70071
developmental disabilities general fund for each of the several70072
particular purposes of the levies as specified in the resolutions70073
under which the levies were approved, and proceeds from different70074
levies that were approved for the same particular purpose shall be70075
credited to accounts for that purpose. Other money received by the 70076
county for the purposes of Chapters 3323. and 5126. of the Revised 70077
Code and not required by state or federal law to be deposited to 70078
the credit of a different fund shall also be deposited to the 70079
credit of the county mental retardation and developmental 70080
disabilities general fund, in an account appropriate to the 70081
particular purpose for which the money was received. Unless70082
otherwise provided by law, an unexpended balance at the end of a70083
fiscal year in any account in the county mental retardation and70084
developmental disabilities general fund shall be appropriated the70085
next fiscal year to the same fund.70086

       A county board of mental retardation and developmental70087
disabilities may request, by resolution, that the board of county70088
commissioners establish a county mental retardation and70089
developmental disabilities capital fund for money to be used for70090
acquisition, construction, or improvement of capital facilities or70091
acquisition of capital equipment used in providing services to70092
mentally retarded and developmentally disabled persons. The county 70093
board of mental retardation and developmental disabilities shall 70094
transmit a certified copy of the resolution to the board of county 70095
commissioners. Upon receiving the resolution, the board of county 70096
commissioners shall establish a county mental retardation and 70097
developmental disabilities capital fund.70098

       A county board shall request, by resolution, that the board70099
of county commissioners establish a county MR/DD medicaid reserve70100
fund. On receipt of the resolution, the board of county70101
commissioners shall establish a county MR/DD medicaid reserve70102
fund. The portion of federal revenue funds that the county board70103
earns for providing habilitation center services, medicaid case70104
management services, and home and community-based services that is70105
needed for the county board to pay for extraordinary costs,70106
including extraordinary costs for services to individuals with70107
mental retardation or other developmental disability, and ensure70108
the availability of adequate funds in the event a county property70109
tax levy for services for individuals with mental retardation or70110
other developmental disability fails shall be deposited into the70111
fund. The county board shall use money in the fund for those70112
purposes in accordance with rules adopted under section 5123.041370113
of the Revised Code.70114

       Sec. 5705.211.  (A) As used in this section:70115

       (1) "Adjusted charge-off amount" for a fiscal year means two 70116
and three-tenths per cent of a school district's recognized 70117
valuation, as defined in section 3317.02 of the Revised Code, for 70118
the fiscal year.70119

       (2) "Charge-off increase" for a tax year means the dollar 70120
amount, if any, by which the adjusted charge-off amount for the 70121
fiscal year ending in the preceding tax year exceeds the adjusted 70122
charge-off amount for the fiscal year ending in the current tax 70123
year.70124

       (3) "Levies for current expenses" means any tax levied in 70125
excess of the ten-mill limitation for the current operating 70126
expenses of the district and any tax levied under sections 70127
5705.194 to 5709.197 of the Revised Code.70128

       (4) "Taxes charged and payable" means the taxes charged and 70129
payable from a tax levy extended on the real and public utility 70130
property tax list and the general list of personal property after 70131
any reduction under section 319.301 of the Revised Code but before 70132
any reduction under section 319.302, 323.152, or 323.158 of the 70133
Revised Code.70134

       (B) The board of education of a city, local, or exempted 70135
village school district may adopt a resolution proposing the levy 70136
of a tax in excess of the ten-mill limitation for the purpose of 70137
paying the current operating expenses of the district. If the 70138
resolution is approved as provided in division (D) of this 70139
section, the tax may be levied at such a rate each year that the 70140
total taxes charged and payable from the levy equals the 70141
charge-off increase for the fiscal year or equals a lesser amount 70142
as prescribed under division (C) of this section. The tax may be 70143
levied for a continuing period of time or for a specific number of 70144
years, but not fewer than five years, as provided in the 70145
resolution. The tax may not be placed on the tax list for a tax 70146
year beginning before the first day of January following adoption 70147
of the resolution. A board of education may not adopt a resolution 70148
under this section proposing to levy a tax under this section 70149
concurrently with any other tax levied by the board under this 70150
section.70151

       (C) After the first year a tax is levied under this section, 70152
the rate of the tax in any year shall not exceed the rate, 70153
estimated by the county auditor, that would cause the total taxes 70154
charged and payable from all the school district's property tax 70155
levies for current expenses, including the tax levied under this 70156
section, to exceed, if levied upon the total taxable value of real 70157
and personal property listed and assessed for taxation in the 70158
preceding year, one hundred four per cent of the taxes charged and 70159
payable from the same levies imposed in the preceding year. A 70160
board of education imposing a tax under this section may specify 70161
in the resolution imposing the tax that the percentage shall be 70162
less than one hundred four per cent, but the percentage shall not 70163
be less than one hundred per cent. At any time after a resolution 70164
adopted under this section is approved by a majority of electors 70165
as provided in division (D) of this section, the board of 70166
education, by resolution, may decrease the percentage specified in 70167
the resolution levying the tax.70168

       For the purposes of this division, a renewal of a levy that 70169
was imposed in the preceding year is the same as the levy being 70170
renewed to the extent the rate of the renewal levy does not exceed 70171
the rate of the levy being renewed. A replacement of a levy that 70172
was imposed in the preceding year is the same as the replaced levy 70173
to the extent the effective rate of the replacement levy does not 70174
exceed the effective rate of the replaced levy in the last year 70175
the replaced levy was imposed. For the purposes of this division, 70176
"effective rate" of a levy equals the total of the taxes charged 70177
and payable from the levy divided by the taxable value of all real 70178
and tangible personal property subject to the levy.70179

       (D) A resolution adopted under this section shall state that 70180
the purpose of the tax is to pay current operating expenses of the 70181
district, and shall specify the first year in which the tax is to 70182
be levied, the number of years the tax will be levied or that it 70183
will be levied for a continuing period of time, and the election 70184
at which the question of the tax is to appear on the ballot, which 70185
shall be a general or special election consistent with the 70186
requirements of section 3501.01 of the Revised Code. If the board 70187
of education specifies a percentage less than one hundred four per 70188
cent pursuant to division (C) of this section, the percentage 70189
shall be specified in the resolution.70190

       Upon adoption of the resolution, the board of education may 70191
certify a copy of the resolution to the proper county board of 70192
elections. The copy of the resolution shall be certified to the 70193
board of elections not later than seventy-five days before the day 70194
of the election at which the question of the tax is to appear on 70195
the ballot. Upon receiving a timely certified copy of such a 70196
resolution, the board of elections shall make the necessary 70197
arrangements for the submission of the question to the electors of 70198
the school district, and the election shall be conducted, 70199
canvassed, and certified in the same manner as regular elections 70200
in the school district for the election of members of the board of 70201
education. Notice of the election shall be published in one or 70202
more newspapers of general circulation in the school district once 70203
per week for four consecutive weeks. The notice shall state that 70204
the purpose of the tax is for the current operating expenses of 70205
the school district, the first year the tax is to be levied, the 70206
number of years the tax is to be levied or that it is to be levied 70207
for a continuing period of time, that the tax is to be levied each 70208
year in an amount estimated to offset decreases in state base cost 70209
funding caused by increases in the district's taxable property 70210
valuation, and that the estimated additional tax in any year of 70211
the levy shall not cause the taxes charged and payable for school 70212
operating expenses to exceed the previous year's by more than one 70213
hundred four per cent, or a lesser percentage specified in the 70214
resolution levying the tax, except for increases caused by the 70215
addition of new taxable property.70216

       The question shall be submitted as a separate proposition but 70217
may be printed on the same ballot with any other proposition 70218
submitted at the same election other than the election of 70219
officers.70220

       The form of the ballot shall be substantially as follows:70221

       "An additional tax for the benefit of (name of school 70222
district) for the purpose of paying the current operating expenses 70223
of the district, for .......... (number of years or for continuing 70224
period of time), at a rate sufficient to offset any reduction in 70225
basic state funding caused by increases in the district's taxable 70226
property valuation, but limited to prevent total revenue for the 70227
district's operating expenses from increasing by more than ..... 70228
per cent per year?70229

        70230

 For the tax levy 70231
 Against the tax levy  " 70232

        70233

       If a majority of the electors of the school district voting 70234
on the question vote in favor of the question, the board of 70235
elections shall certify the results of the election to the board 70236
of education and to the tax commissioner immediately after the 70237
canvass.70238

       (E) When preparing any estimate of the contemplated receipts 70239
from a tax levied pursuant to this section for the purposes of 70240
sections 5705.28 to 5705.40 of the Revised Code, and in preparing 70241
to certify the tax under section 5705.34 of the Revised Code, a 70242
board of education authorized to levy such a tax shall use 70243
information supplied by the department of education to determine 70244
the charge-off increase for the tax year for which that 70245
certification is made. If the board levied a tax under this 70246
section in the preceding tax year, the sum to be certified for 70247
collection from the tax shall not exceed the sum that would exceed 70248
the limitation imposed under division (C) of this section. At the 70249
request of the board of education or the treasurer of the school 70250
district, the county auditor shall assist the board of education 70251
in determining the rate or sum that may be levied under this 70252
section.70253

       The board of education shall certify the sum authorized to be 70254
levied to the county auditor, and, for the purpose of the county 70255
auditor determining the rate at which the tax is to be levied in 70256
the tax year, the sum so certified shall be the sum to be raised 70257
by the tax unless the sum exceeds the limitation imposed by 70258
division (C) of this section. A tax levied pursuant to this 70259
section shall not be levied at a rate in excess of the rate 70260
estimated by the county auditor to produce the sum certified by 70261
the board of education after the reduction required under section 70262
319.301 of the Revised Code but before the reductions under 70263
sections 319.302, 323.152, and 323.158 of the Revised Code. 70264
Notwithstanding section 5705.34 of the Revised Code, a board of 70265
education authorized to levy a tax under this section shall 70266
certify the tax to the county auditor before the first day of 70267
October of the tax year in which the tax is to be levied, or at a 70268
later date as approved by the tax commissioner.70269

       Sec. 5705.391. (A) A board of education shall adopt as part70270
of its annual appropriation measure a spending plan or in the case70271
of an amendment or supplement to an appropriation measure, an70272
amended spending plan, setting forth a schedule of expenses and70273
expenditures of all appropriated funds by the school district for70274
the fiscal year. A copy of the annual appropriation measure and70275
any amendment or supplement to it and the spending plan or amended70276
plan shall be submitted to the superintendent of public70277
instruction and shall set forth all revenues available for70278
appropriation by the district during the fiscal year and their70279
sources; the nature and amount of expenses to be incurred by the70280
district during such year, the outstanding and unpaid expenses on70281
the date the appropriation measure, amendment, or supplement is70282
adopted; the date or dates by which such expenses must be paid;70283
and such other information as the superintendent requires to70284
enable the superintendent to determine whether during such year70285
the district will incur any expenses that will impair its ability70286
to operate its schools with the revenue available to it from70287
existing revenue sources. The plan or amended plan shall be70288
presented in such detail and form as the superintendent70289
prescribes.70290

       (B)(A) No later than July 1, 1998, the department of70291
education and the auditor of state shall jointly adopt rules 70292
requiring school districts to includeboards of education to 70293
submit five-year projections of operational revenues and70294
expenditures in the spending plan required by this section. The70295
rules shall provide for the auditor of state or the department to70296
examine the five-year projections and to determine whether any70297
further fiscal analysis is needed to ascertain whether a district70298
has the potential to incur a deficit during the first three years70299
of the five-year period.70300

       The auditor of state or the department may conduct any70301
further audits or analyses necessary to assess any district's70302
fiscal condition. If further audits or analyses are conducted by70303
the auditor of state, the auditor of state shall notify the70304
department of the district's fiscal condition, and the department70305
shall immediately notify the district of any potential to incur a70306
deficit in the current fiscal year or of any strong indications70307
that a deficit will be incurred in either of the ensuing two70308
years. If such audits or analyses are conducted by the department,70309
the department shall immediately notify the district and the70310
auditor of state of such potential deficit or strong indications70311
thereof.70312

       A district notified under this section shall take immediate70313
steps to eliminate any deficit in the current fiscal year and70314
shall begin to plan to avoid the projected future deficits.70315

       (C)(B) The state board of education, in accordance with70316
sections 3319.31 and 3319.311 of the Revised Code, may limit,70317
suspend, or revoke a license as defined under section 3319.31 of70318
the Revised Code that has been issued to any school employee found70319
to have willfully contributed erroneous, inaccurate, or incomplete70320
data required for the submission of the appropriation measure and70321
spending planfive-year projection required by this section.70322

       Sec. 5705.40.  Any appropriation ordinance or measure may be 70323
amended or supplemented, provided that such amendment or70324
supplement shall comply with all provisions of law governing the70325
taxing authority in making an original appropriation and that no70326
appropriation for any purpose shall be reduced below an amount70327
sufficient to cover all unliquidated and outstanding contracts or70328
obligations certified from or against the appropriation. Transfers 70329
may be made by resolution or ordinance from one appropriation item 70330
to another, except that a board of county commissioners shall, at 70331
the request of the county board of elections, adopt a resolution 70332
to transfer funds from one appropriation item of the board of 70333
elections to another appropriation item of the board of elections 70334
unless the board of county commissioners determines that the 70335
transfer is sought for the purpose of providing employee bonuses 70336
or salary increases other than increases necessary to reimburse 70337
employees for overtime worked. At the close of each fiscal year,70338
the unencumbered balance of each appropriation shall revert to the 70339
respective fund from which it was appropriated and shall be70340
subject to future appropriations, provided that funds unexpended70341
at the end of such fiscal year previously appropriated for the70342
payment of obligations unliquidated and outstanding, or previously 70343
appropriated pursuant to section 321.261 of the Revised Code for 70344
the collection of delinquent taxes, need not be reappropriated, 70345
but such unexpended funds shall not be included by any 70346
budget-making body or board or any county budget commission in 70347
estimating the balance available for the purposes of the next or 70348
any succeeding fiscal year.70349

       The annual appropriation measure, or an amendment or70350
supplement thereto, may contain an appropriation for contingencies 70351
not to exceed the amount authorized by section 5705.29 of the 70352
Revised Code and in the case of a school district may also include 70353
a voluntary contingency reserve balance in the amount authorized 70354
by such section. By a two-thirds vote of all members of the taxing 70355
authority of a subdivision or taxing unit, expenditures may be 70356
authorized in pursuance of such contingency appropriation or 70357
voluntary contingency reserve balance for any lawful purpose for 70358
which public funds may be expended, if such purpose could not have 70359
reasonably been foreseen at the time of the adoption of the 70360
appropriation measure or, in the case of a voluntary contingency 70361
reserve balance, if the board of education requests payment of any 70362
portion of such balance.70363

       Sec. 5707.031.  (A) As used in this section:70364

       (1) "Qualifying dealer in intangibles" has the same meaning 70365
as "qualifying dealer" in section 5725.24 of the Revised Code;70366

       (2) "Tax otherwise due" means the tax imposed on a qualifying 70367
dealer in intangibles under section 5707.03 and Chapter 5725. of 70368
the Revised Code reduced by the total amount of all other 70369
nonrefundable credits, if any, that the qualifying dealer in 70370
intangibles is entitled to claim.70371

        (B) Upon the issuance of a tax credit certificate by the Ohio 70372
venture capital authority under section 150.07 of the Revised 70373
Code, a credit may be claimed against the tax imposed on a 70374
qualifying dealer in intangibles under section 5707.03 and Chapter 70375
5725. of the Revised Code. The credit shall be claimed on a return 70376
due under section 5725.14 of the Revised Code after the 70377
certificate is issued by the authority.70378

        (C) If the qualifying dealer in intangibles elected a 70379
refundable credit under section 150.07 of the Revised Code and if 70380
the amount of the credit shown on the certificate does not exceed 70381
the tax otherwise due, then for the calendar year the qualifying 70382
dealer in intangibles shall claim a refundable credit equal to the 70383
amount of the credit shown on the certificate.70384

        (D) If the qualifying dealer in intangibles elected a 70385
refundable credit under section 150.07 of the Revised Code, and if 70386
the amount of the refundable credit shown on the certificate 70387
exceeds the tax otherwise due, then for the calendar year the 70388
qualifying dealer in intangibles shall claim a refundable credit 70389
equal to the sum of the following:70390

        (1) The amount, if any, of the tax otherwise due;70391

        (2) Seventy-five per cent of the difference between the 70392
amount of the refundable credit shown on the certificate and the 70393
tax otherwise due.70394

        (E) If the qualifying dealer in intangibles elected a 70395
nonrefundable credit under section 150.07 of the Revised Code and 70396
if the nonrefundable credit to which the qualifying dealer in 70397
intangibles would otherwise be entitled under this section for any 70398
calendar year is greater than the tax otherwise due, the excess 70399
shall be allowed as a nonrefundable credit in each of the ensuing 70400
ten calendar years, but the amount of any excess nonrefundable 70401
credit allowed in the ensuing calendar year shall be deducted from 70402
the balance carried forward to the next calendar year.70403

       Sec. 5709.07.  (A) The following property shall be exempt70404
from taxation:70405

       (1) Public schoolhouses, the books and furniture in them, and 70406
the ground attached to them necessary for the proper occupancy, 70407
use, and enjoyment of the schoolhouses, and not leased or 70408
otherwise used with a view to profit;70409

       (2) Houses used exclusively for public worship, the books and 70410
furniture in them, and the ground attached to them that is not 70411
leased or otherwise used with a view to profit and that is70412
necessary for their proper occupancy, use, and enjoyment;70413

       (3) Real property owned and operated by a church that is used 70414
primarily for church retreats or church camping, and that is not 70415
used as a permanent residence. Real property exempted under70416
division (A)(3) of this section may be made available by the70417
church on a limited basis to charitable and educational70418
institutions if the property is not leased or otherwise made70419
available with a view to profit.70420

       (4) Public colleges and academies and all buildings connected 70421
with them, and all lands connected with public institutions of 70422
learning, not used with a view to profit, including those 70423
buildings and lands that satisfy all of the following:70424

       (a) The buildings are used for housing for full-time students 70425
or housing-related facilities for students, faculty, or employees 70426
of a state university, or for other purposes related to the state 70427
university's educational purpose, and the lands are underneath the 70428
buildings or are used for common space, walkways, and green spaces 70429
for the state university's students, faculty, or employees. As 70430
used in this division, "housing-related facilities" includes both 70431
parking facilities related to the buildings and common buildings 70432
made available to students, faculty, or employees of a state 70433
university. The leasing of space in housing-related facilities 70434
shall not be considered an activity with a view to profit for 70435
purposes of division (A)(4) of this section.70436

       (b) The buildings and lands are supervised or otherwise under 70437
the control, directly or indirectly, of an organization that is 70438
exempt from federal income taxation under section 501(c)(3) of the 70439
Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as 70440
amended, and the state university has entered into a qualifying 70441
joint use agreement with the organization that entitles the 70442
students, faculty, or employees of the state university to use the 70443
lands or buildings;70444

       (c) The state university has agreed, under the terms of the 70445
qualifying joint use agreement with the organization described in 70446
division (A)(4)(b) of this section, that the state university, to 70447
the extent applicable under the agreement, will make payments to 70448
the organization in amounts sufficient to maintain agreed-upon 70449
debt service coverage ratios on bonds related to the lands or 70450
buildings.70451

       (B) This section shall not extend to leasehold estates or70452
real property held under the authority of a college or university70453
of learning in this state; but leaseholds, or other estates or70454
property, real or personal, the rents, issues, profits, and income 70455
of which is given to a municipal corporation, school district, or 70456
subdistrict in this state exclusively for the use, endowment, or 70457
support of schools for the free education of youth without charge 70458
shall be exempt from taxation as long as such property, or the 70459
rents, issues, profits, or income of the property is used and 70460
exclusively applied for the support of free education by such 70461
municipal corporation, district, or subdistrict. Division (B) of 70462
this section shall not apply with respect to buildings and lands 70463
that satisfy all of the requirements specified in divisions 70464
(A)(4)(a) to (c) of this section.70465

       (C) For purposes of this section, if the requirements 70466
specified in divisions (A)(4)(a) to (c) of this section are 70467
satisfied, the buildings and lands with respect to which exemption 70468
is claimed under division (A)(4) of this section shall be deemed 70469
to be used with reasonable certainty in furthering or carrying out 70470
the necessary objects and purposes of a state university.70471

       (D) As used in this section, "church":70472

       (1) "Church" means a fellowship of believers, congregation, 70473
society, corporation, convention, or association that is formed 70474
primarily or exclusively for religious purposes and that is not 70475
formed for the private profit of any person.70476

       (2) "State university" has the same meaning as in section 70477
3345.011 of the Revised Code.70478

       (3) "Qualifying joint use agreement" means an agreement that 70479
satisfies all of the following:70480

       (a) The agreement was entered into before June 30, 2004;70481

       (b) The agreement is between a state university and an 70482
organization that is exempt from federal income taxation under 70483
section 501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 70484
2085, 26 U.S.C. 1, as amended; and70485

       (c) The state university that is a party to the agreement 70486
reported to the Ohio board of regents that the university 70487
maintained a headcount of at least twenty-five thousand students 70488
on its main campus during the academic school year that began in 70489
calendar year 2003 and ended in calendar year 2004.70490

       Sec. 5709.112. For tax year 2006 and each tax year 70491
thereafter, all tangible personal property used in the recovery of 70492
oil or gas, when installed and located on the premises or leased 70493
premises of the owner, shall be exempt from taxation. Such 70494
tangible personal property shall be subject to taxation if it is 70495
not installed on the premises or leased premises of the owner, or 70496
if it is used for the transmission, transportation, or 70497
distribution of oil or gas, as provided in section 5711.22 of the 70498
Revised Code. The tax commissioner may adopt rules governing the 70499
administration of the exemption provided by this section.70500

        This section does not apply to any taxpayer that is required 70501
to file a report under section 5727.08 of the Revised Code.70502

       Sec. 5709.12.  (A) As used in this section, "independent70503
living facilities" means any residential housing facilities and70504
related property that are not a nursing home, residential care70505
facility, or adult care facility as defined in division (A) of70506
section 5701.13 of the Revised Code.70507

       (B) Lands, houses, and other buildings belonging to a county, 70508
township, or municipal corporation and used exclusively for the 70509
accommodation or support of the poor, or leased to the state or 70510
any political subdivision for public purposes shall be exempt from 70511
taxation. Real and tangible personal property belonging to 70512
institutions that is used exclusively for charitable purposes 70513
shall be exempt from taxation, including real property belonging 70514
to an institution that is a nonprofit corporation that receives a 70515
grant under the Thomas Alva Edison grant program authorized by 70516
division (C) of section 122.33 of the Revised Code at any time70517
during the tax year and being held for leasing or resale to70518
others. If, at any time during a tax year for which such property70519
is exempted from taxation, the corporation ceases to qualify for70520
such a grant, the director of development shall notify the tax70521
commissioner, and the tax commissioner shall cause the property to70522
be restored to the tax list beginning with the following tax year.70523
All property owned and used by a nonprofit organization70524
exclusively for a home for the aged, as defined in section 5701.1370525
of the Revised Code, also shall be exempt from taxation.70526

       (C)(1) If a home for the aged described in division (B)(1) of 70527
section 5701.13 of the Revised Code is operated in conjunction70528
with or at the same site as independent living facilities, the70529
exemption granted in division (B) of this section shall include70530
kitchen, dining room, clinic, entry ways, maintenance and storage70531
areas, and land necessary for access commonly used by both70532
residents of the home for the aged and residents of the70533
independent living facilities. Other facilities commonly used by70534
both residents of the home for the aged and residents of70535
independent living units shall be exempt from taxation only if the70536
other facilities are used primarily by the residents of the home70537
for the aged. Vacant land currently unused by the home, and70538
independent living facilities and the lands connected with them70539
are not exempt from taxation. Except as provided in division 70540
(A)(1) of section 5709.121 of the Revised Code, property of a home70541
leased for nonresidential purposes is not exempt from taxation.70542

       (2) Independent living facilities are exempt from taxation if 70543
they are operated in conjunction with or at the same site as a70544
home for the aged described in division (B)(2) of section 5701.1370545
of the Revised Code; operated by a corporation, association, or70546
trust described in division (B)(1)(b) of that section; operated70547
exclusively for the benefit of members of the corporation,70548
association, or trust who are retired, aged, or infirm; and70549
provided to those members without charge in consideration of their70550
service, without compensation, to a charitable, religious,70551
fraternal, or educational institution. For the purposes of70552
division (C)(2) of this section, "compensation" does not include70553
furnishing room and board, clothing, health care, or other70554
necessities, or stipends or other de minimis payments to defray70555
the cost thereof.70556

       (D)(1) A private corporation established under federal law,70557
defined in 36 U.S.C. 1101, Pub. L. No. 102-199, 105 Stat. 1629, as70558
amended, the objects of which include encouraging the advancement70559
of science generally, or of a particular branch of science, the70560
promotion of scientific research, the improvement of the70561
qualifications and usefulness of scientists, or the increase and70562
diffusion of scientific knowledge is conclusively presumed to be a70563
charitable or educational institution. A private corporation70564
established as a nonprofit corporation under the laws of a state,70565
that is exempt from federal income taxation under section70566
501(c)(3) of the Internal Revenue Code of 1986, 100 Stat. 2085, 2670567
U.S.C.A. 1, as amended, and has as its principal purpose one or70568
more of the foregoing objects, also is conclusively presumed to be70569
a charitable or educational institution.70570

       The fact that an organization described in this division70571
operates in a manner that results in an excess of revenues over70572
expenses shall not be used to deny the exemption granted by this70573
section, provided such excess is used, or is held for use, for70574
exempt purposes or to establish a reserve against future70575
contingencies; and, provided further, that such excess may not be70576
distributed to individual persons or to entities that would not be70577
entitled to the tax exemptions provided by this chapter. Nor shall 70578
the fact that any scientific information diffused by the70579
organization is of particular interest or benefit to any of its70580
individual members be used to deny the exemption granted by this70581
section, provided that such scientific information is available to70582
the public for purchase or otherwise.70583

       (2) Division (D)(2) of this section does not apply to real70584
property exempted from taxation under this section and division70585
(C)(A)(3) of section 5709.121 of the Revised Code and belonging to 70586
a nonprofit corporation described in division (D)(1) of this 70587
section that has received a grant under the Thomas Alva Edison 70588
grant program authorized by division (C) of section 122.33 of the70589
Revised Code during any of the tax years the property was exempted70590
from taxation.70591

       When a private corporation described in division (D)(1) of70592
this section sells all or any portion of a tract, lot, or parcel70593
of real estate that has been exempt from taxation under this70594
section and section 5709.121 of the Revised Code, the portion sold70595
shall be restored to the tax list for the year following the year70596
of the sale and a charge shall be levied against the sold property70597
in an amount equal to the tax savings on such property during the70598
four tax years preceding the year the property is placed on the70599
tax list. The tax savings equals the amount of the additional70600
taxes that would have been levied if such property had not been70601
exempt from taxation.70602

       The charge constitutes a lien of the state upon such property70603
as of the first day of January of the tax year in which the charge70604
is levied and continues until discharged as provided by law. The70605
charge may also be remitted for all or any portion of such70606
property that the tax commissioner determines is entitled to70607
exemption from real property taxation for the year such property70608
is restored to the tax list under any provision of the Revised70609
Code, other than sections 725.02, 1728.10, 3735.67, 5709.40,70610
5709.41, 5709.62, 5709.63, 5709.71, 5709.73, 5709.78, and 5709.84,70611
upon an application for exemption covering the year such property70612
is restored to the tax list filed under section 5715.27 of the70613
Revised Code.70614

       (E) Real property held by an organization organized and70615
operated exclusively for charitable purposes as described under70616
section 501(c)(3) of the Internal Revenue Code and exempt from70617
federal taxation under section 501(a) of the Internal Revenue70618
Code, 26 U.S.C.A. 501(a) and (c)(3), as amended, for the purpose70619
of constructing or rehabilitating residences for eventual transfer70620
to qualified low-income families through sale, lease, or land70621
installment contract, shall be exempt from taxation.70622

       The exemption shall commence on the day title to the property70623
is transferred to the organization and shall continue to the end70624
of the tax year in which the organization transfers title to the70625
property to a qualified low-income family. In no case shall the70626
exemption extend beyond the second succeeding tax year following70627
the year in which the title was transferred to the organization.70628
If the title is transferred to the organization and from the70629
organization to a qualified low-income family in the same tax70630
year, the exemption shall continue to the end of that tax year.70631
The proportionate amount of taxes that are a lien but not yet70632
determined, assessed, and levied for the tax year in which title70633
is transferred to the organization shall be remitted by the county70634
auditor for each day of the year that title is held by the70635
organization.70636

       Upon transferring the title to another person, the70637
organization shall file with the county auditor an affidavit70638
affirming that the title was transferred to a qualified low-income70639
family or that the title was not transferred to a qualified70640
low-income family, as the case may be; if the title was70641
transferred to a qualified low-income family, the affidavit shall70642
identify the transferee by name. If the organization transfers70643
title to the property to anyone other than a qualified low-income70644
family, the exemption, if it has not previously expired, shall70645
terminate, and the property shall be restored to the tax list for70646
the year following the year of the transfer and a charge shall be70647
levied against the property in an amount equal to the amount of70648
additional taxes that would have been levied if such property had70649
not been exempt from taxation. The charge constitutes a lien of70650
the state upon such property as of the first day of January of the70651
tax year in which the charge is levied and continues until70652
discharged as provided by law.70653

       The application for exemption shall be filed as otherwise70654
required under section 5715.27 of the Revised Code, except that70655
the organization holding the property shall file with its70656
application documentation substantiating its status as an70657
organization organized and operated exclusively for charitable70658
purposes under section 501(c)(3) of the Internal Revenue Code and70659
its qualification for exemption from federal taxation under70660
section 501(a) of the Internal Revenue Code, and affirming its70661
intention to construct or rehabilitate the property for the70662
eventual transfer to qualified low-income families.70663

       As used in this division, "qualified low-income family" means70664
a family whose income does not exceed two hundred per cent of the70665
official federal poverty guidelines as revised annually in70666
accordance with section 673(2) of the "Omnibus Budget70667
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C.A. 9902, as70668
amended, for a family size equal to the size of the family whose70669
income is being determined.70670

       Sec. 5709.121. (A) Real property and tangible personal70671
property belonging to a charitable or educational institution or70672
to the state or a political subdivision, shall be considered as70673
used exclusively for charitable or public purposes by such70674
institution, the state, or political subdivision, if it meets one70675
of the following requirements:70676

       (A)(1) It is used by such institution, the state, or70677
political subdivision, or by one or more other such institutions,70678
the state, or political subdivisions under a lease, sublease, or70679
other contractual arrangement:70680

       (1)(a) As a community or area center in which presentations70681
in music, dramatics, the arts, and related fields are made in70682
order to foster public interest and education therein;70683

       (2)(b) For other charitable, educational, or public 70684
purposes;.70685

       (B)(2) It is made available under the direction or control of70686
such institution, the state, or political subdivision for use in70687
furtherance of or incidental to its charitable, educational, or70688
public purposes and not with the view to profit.70689

       (C)(3) It is used by an organization described in division70690
(D) of section 5709.12 of the Revised Code. If the organization is 70691
a corporation that receives a grant under the Thomas Alva Edison70692
grant program authorized by division (C) of section 122.33 of the70693
Revised Code at any time during the tax year, "used," for the70694
purposes of this division, includes holding property for lease or70695
resale to others.70696

       (B)(1) Property described in division (A)(1)(a) of this 70697
section shall continue to be considered as used exclusively for 70698
charitable or public purposes even if the property is conveyed 70699
through one conveyance or a series of conveyances to an entity 70700
that is not a charitable or educational institution and is not the 70701
state or a political subdivision, provided that all of the 70702
following conditions apply with respect to that property:70703

        (a) The property has been listed as exempt on the county 70704
auditor's tax list and duplicate for the county in which it is 70705
located for the ten tax years immediately preceding the year in 70706
which the property is conveyed through one conveyance or a series 70707
of conveyances;70708

        (b) The owner to which the property is conveyed through one 70709
conveyance or a series of conveyances leases the property through 70710
one lease or a series of leases to the entity that owned or 70711
occupied the property for the ten tax years immediately preceding 70712
the year in which the property is conveyed or an affiliate of such 70713
prior owner or occupant;70714

        (c) The property includes improvements that are at least 70715
fifty years old;70716

        (d) The property is being renovated in connection with a 70717
claim for historic preservation tax credits available under 70718
federal law;70719

        (e) The property continues to be used for the purposes 70720
described in division (A)(1)(a) of this section after its 70721
conveyance; and70722

        (f) The property is certified by the United States secretary 70723
of the interior as a "certified historic structure" or certified 70724
as part of a certified historic structure.70725

        (2) Notwithstanding section 5715.27 of the Revised Code, an 70726
application for exemption from taxation of property described in 70727
division (B)(1) of this section may be filed by either the owner 70728
of the property or its occupant.70729

       Sec. 5709.40.  (A) As used in this section:70730

       (1) "Blighted area" and "impacted city" have the same70731
meanings as in section 1728.01 of the Revised Code.70732

       (2) "Business day" means a day of the week excluding70733
Saturday, Sunday, and a legal holiday as defined under section70734
1.14 of the Revised Code.70735

       (3) "Housing renovation" means a project carried out for70736
residential purposes.70737

       (4) "Improvement" means the increase in the assessed value of 70738
any real property that would first appear on the tax list and70739
duplicate of real and public utility property after the effective70740
date of an ordinance adopted under this section were it not for 70741
the exemption granted by that ordinance. "Improvement" does not 70742
include a public infrastructure improvement.70743

       (5) "Incentive district" means an area not more than three70744
hundred acres in size enclosed by a continuous boundary in which a 70745
project is being, or will be, undertaken and having one or more of 70746
the following distress characteristics:70747

       (a) At least fifty-one per cent of the residents of the70748
district have incomes of less than eighty per cent of the median70749
income of residents of the political subdivision in which the70750
district is located, as determined in the same manner specified70751
under section 119(b) of the "Housing and Community Development Act70752
of 1974," 88 Stat. 633, 42 U.S.C. 5318, as amended;70753

       (b) The average rate of unemployment in the district during70754
the most recent twelve-month period for which data are available70755
is equal to at least one hundred fifty per cent of the average70756
rate of unemployment for this state for the same period.70757

       (c) At least twenty per cent of the people residing in the70758
district live at or below the poverty level as defined in the70759
federal Housing and Community Development Act of 1974, 42 U.S.C.70760
5301, as amended, and regulations adopted pursuant to that act.70761

       (d) The district is a blighted area.70762

       (e) The district is in a situational distress area as70763
designated by the director of development under division (F) of70764
section 122.23 of the Revised Code.70765

       (f) As certified by the engineer for the political70766
subdivision, the public infrastructure serving the district is70767
inadequate to meet the development needs of the district as70768
evidenced by a written economic development plan or urban renewal70769
plan for the district that has been adopted by the legislative70770
authority of the subdivision.70771

       (g) The district is comprised entirely of unimproved land70772
that is located in a distressed area as defined in section 122.2370773
of the Revised Code.70774

       (6) "Project" means development activities undertaken on one70775
or more parcels, including, but not limited to, construction,70776
expansion, and alteration of buildings or structures, demolition,70777
remediation, and site development, and any building or structure70778
that results from those activities.70779

       (7) "Public infrastructure improvement" includes, but is not70780
limited to, public roads and highways; water and sewer lines;70781
environmental remediation; land acquisition, including acquisition70782
in aid of industry, commerce, distribution, or research;70783
demolition, including demolition on private property when70784
determined to be necessary for economic development purposes;70785
stormwater and flood remediation projects, including such projects 70786
on private property when determined to be necessary for public 70787
health, safety, and welfare; the provision of gas, electric, and 70788
communications service facilities; and the enhancement of public 70789
waterways through improvements that allow for greater public 70790
access. "Public infrastructure improvement" does not include 70791
police or fire equipment.70792

       (B) The legislative authority of a municipal corporation, by70793
ordinance, may declare improvements to certain parcels of real70794
property located in the municipal corporation to be a public70795
purpose. Improvements with respect to a parcel that is used or to70796
be used for residential purposes may be declared a public purpose70797
under this division only if the parcel is located in a blighted70798
area of an impacted city. Except as otherwise provided in division70799
(D) of this section, not more than seventy-five per cent of an70800
improvement thus declared to be a public purpose may be exempted70801
from real property taxation; the percentage exempted shall not,70802
except as otherwise provided in that division, exceed the70803
estimated percentage of the incremental demand placed on the70804
public infrastructure improvements that is directly attributable70805
to the exempted improvement. The ordinance shall specify the70806
percentage of the improvement to be exempted from taxation.70807

       An ordinance adopted or amended under this division shall70808
designate the specific public infrastructure improvements made, to70809
be made, or in the process of being made by the municipal70810
corporation that directly benefit, or that once made will directly70811
benefit, the parcels for which improvements are declared to be a70812
public purpose. For the purposes of this division, a public70813
infrastructure improvement directly benefits such a parcel only if70814
a project on the parcel places direct, additional demand on the70815
public infrastructure improvement or, if the public infrastructure70816
improvement has not yet been completed, will place direct,70817
additional demand on the public infrastructure improvement once it70818
is completed. The service payments provided for in section 5709.4270819
of the Revised Code shall be used to finance the public70820
infrastructure improvements designated in the ordinance or for the70821
purpose described in division (D)(1) of this section.70822

       (C)(1) The legislative authority of a municipal corporation 70823
may adopt an ordinance creating an incentive district and 70824
declaring improvements to parcels within the district to be a 70825
public purpose and, except as provided in division (F) of this 70826
section, exempt from taxation as provided in this section, but no 70827
legislative authority of a municipal corporation that has a 70828
population that exceeds twenty-five thousand, as shown by the most 70829
recent federal decennial census, shall adopt an ordinance that 70830
creates an incentive district if, as a result of adopting the 70831
ordinance, more than twenty-five per cent of the municipal 70832
corporation's taxable value, as of the first day of January of the 70833
year in which the ordinance takes effect, is subject to an 70834
exemption because of an incentive district. The twenty-five per 70835
cent limitation does not apply to an incentive district that was 70836
created by an ordinance adopted prior to January 1, 2006, unless 70837
the legislative authority creates an additional incentive district 70838
after that date. The ordinance shall delineate the boundary of the 70839
district and specifically identify each parcel within the 70840
district. A district may not include any parcel that is or has 70841
been exempted from taxation under division (B) of this section or 70842
that is or has been within another district created under this 70843
division. An ordinance may create more than one such district, and70844
more than one ordinance may be adopted under this division (C)(1) 70845
of this section.70846

       (2) Not later than thirty days prior to adopting an ordinance 70847
under this division (C)(1) of this section, if the municipal 70848
corporation intends to apply for exemptions from taxation under 70849
section 5709.911 of the Revised Code on behalf of owners of real 70850
property located within the proposed incentive district, the 70851
legislative authority of a municipal corporation shall conduct a 70852
public hearing on the proposed ordinance. Not later than thirty 70853
days prior to the public hearing, the legislative authority shall 70854
give notice of the public hearing and the proposed ordinance by 70855
first class mail to every real property owner whose property is 70856
located within the boundaries of the proposed incentive district 70857
that is the subject of the proposed ordinance.70858

       (3)(a) An ordinance adopted under this division (C)(1) of 70859
this section shall specify the life of the district and the 70860
percentage of the improvements to be exempted and, shall designate 70861
the public infrastructure improvements made or, to be made, or in 70862
the process of being made, that benefit or serve, or, once made, 70863
will benefit or serve parcels in the district. The ordinance also 70864
shall identify one or more specific projects being, or to be, 70865
undertaken in the district that place additional demand on the 70866
public infrastructure improvements designated in the ordinance. 70867
The project identified may, but need not be, the project under 70868
division (C)(3)(b) of this section that places real property in 70869
use for commercial or industrial purposes. Except as otherwise 70870
permitted under that division, the service payments provided for 70871
in section 5709.42 of the Revised Code shall be used to finance 70872
the designated public infrastructure improvements or for the70873
purpose described in division (D)(1) of this section.70874

       (b) An ordinance adopted under this division (C)(1) of this 70875
section may authorize the use of service payments provided for in 70876
section 5709.42 of the Revised Code for the purpose of housing 70877
renovations within the district, provided that the ordinance also 70878
designates public infrastructure improvements that benefit or 70879
serve the district, and that a project within the district places 70880
real property in use for commercial or industrial purposes. 70881
Service payments may be used to finance or support loans, deferred 70882
loans, and grants to persons for the purpose of housing 70883
renovations within the district. The ordinance shall designate the 70884
parcels within the district that are eligible for housing 70885
renovation. The ordinance shall state separately the amounts or 70886
the percentages of the expected aggregate service payments that 70887
are designated for each public infrastructure improvement and for 70888
the general purpose of housing renovations.70889

       (4) Except with the approval of the board of education of 70890
each city, local, or exempted village school district within the70891
territory of which the district is or will be located, and subject 70892
to division (E) of this section, the life of aan incentive70893
district shall not exceed ten years, and the percentage of70894
improvements to be exempted shall not exceed seventy-five per70895
cent. With such approval of the board of education, the life of a 70896
district may be not more than thirty years, and the percentage of 70897
improvements to be exempted may be not more than one hundred per 70898
cent.70899

       (5) Approval of a board of education shall be obtained in the70900
manner provided in division (D) of this section for exemptions70901
under division (B) of this section, except that the notice to the70902
board of education shall delineate the boundaries of the district,70903
specifically identify each parcel within the district, identify70904
each anticipated improvement in the district, provide an estimate70905
of the true value in money of each such improvement, specify the70906
life of the district and the percentage of improvements that would70907
be exempted, and indicate the date on which the legislative70908
authority intends to adopt the ordinance.70909

       A municipal corporation shall not adopt an ordinance under70910
this division after June 30, 2007.70911

       (D)(1) If the ordinance declaring improvements to a parcel to 70912
be a public purpose or creating an incentive district specifies70913
that payments in lieu of taxes provided for in section 5709.42 of70914
the Revised Code shall be paid to the city, local, or exempted70915
village school district in which the parcel is located in the70916
amount of the taxes that would have been payable to the school70917
district if the improvements had not been exempted from taxation,70918
the percentage of the improvement that may be exempted from70919
taxation may exceed seventy-five per cent, and the exemption may70920
be granted for up to thirty years, without the approval of the70921
board of education as otherwise required under division (D)(2) of70922
this section.70923

       (2) Improvements with respect to a parcel may be exempted70924
from taxation under division (B) of this section for up to ten70925
years or, with the approval under this paragraph of the board of70926
education of the city, local, or exempted village school district70927
within which the parcel is located, for up to thirty years. The70928
percentage of the improvement exempted from taxation may, with70929
such approval, exceed seventy-five per cent, but shall not exceed70930
one hundred per cent. Not later than forty-five business days70931
prior to adopting an ordinance under this section declaring70932
improvements to be a public purpose that is subject to approval by 70933
a board of education under this division, the legislative 70934
authority shall deliver to the board of education a notice stating 70935
its intent to adopt an ordinance making that declaration. The70936
notice shall identify the parcels for which improvements are to be70937
exempted from taxation, provide an estimate of the true value in70938
money of the improvements, specify the period for which the70939
improvements would be exempted from taxation and the percentage of70940
the improvement that would be exempted, and indicate the date on70941
which the legislative authority intends to adopt the ordinance.70942
The board of education, by resolution adopted by a majority of the70943
board, may approve the exemption for the period or for the70944
exemption percentage specified in the notice, may disapprove the70945
exemption for the number of years in excess of ten, may disapprove70946
the exemption for the percentage of the improvement to be exempted70947
in excess of seventy-five per cent, or both, or may approve the70948
exemption on the condition that the legislative authority and the70949
board negotiate an agreement providing for compensation to the70950
school district equal in value to a percentage of the amount of70951
taxes exempted in the eleventh and subsequent years of the70952
exemption period or, in the case of exemption percentages in70953
excess of seventy-five per cent, compensation equal in value to a70954
percentage of the taxes that would be payable on the portion of70955
the improvement in excess of seventy-five per cent were that70956
portion to be subject to taxation, or other mutually agreeable 70957
compensation. The board of education shall certify its resolution 70958
to the legislative authority not later than fourteen days prior to70959
the date the legislative authority intends to adopt the ordinance70960
as indicated in the notice. If the board of education approves the 70961
exemption on the condition that a compensation agreement be70962
negotiated, the board in its resolution shall propose a70963
compensation percentage. If the board of education and the70964
legislative authority negotiate a mutually acceptable compensation 70965
agreement, the ordinance may declare the improvements a public 70966
purpose for the number of years specified in the ordinance or, in 70967
the case of exemption percentages in excess of seventy-five per 70968
cent, for the exemption percentage specified in the ordinance. In 70969
either case, if the board and the legislative authority fail to 70970
negotiate a mutually acceptable compensation agreement, the 70971
ordinance may declare the improvements a public purpose for not 70972
more than ten years, but shall not exempt more than seventy-five 70973
per cent of the improvements from taxation, or, in the case of an 70974
ordinance adopted under division (B) of this section, not more 70975
than the estimated percentage of the incremental demand as 70976
otherwise prescribed by division (B) of this section if that 70977
percentage is less than seventy-five per cent. If the board fails 70978
to certify a resolution to the legislative authority within the 70979
time prescribed by this division, the legislative authority70980
thereupon may adopt the ordinance and may declare the improvements70981
a public purpose for up to thirty years, or, in the case of70982
exemption percentages proposed in excess of seventy-five per cent,70983
for the exemption percentage specified in the ordinance. The70984
legislative authority may adopt the ordinance at any time after70985
the board of education certifies its resolution approving the70986
exemption to the legislative authority, or, if the board approves70987
the exemption on the condition that a mutually acceptable70988
compensation agreement be negotiated, at any time after the70989
compensation agreement is agreed to by the board and the70990
legislative authority.70991

       (3) If a board of education has adopted a resolution waiving70992
its right to approve exemptions from taxation and the resolution70993
remains in effect, approval of exemptions by the board is not70994
required under this division. If a board of education has adopted70995
a resolution allowing a legislative authority to deliver the70996
notice required under this division (D)(2) of this section fewer 70997
than forty-five business days prior to the legislative authority's 70998
adoption of the ordinance, the legislative authority shall deliver70999
the notice to the board not later than the number of days prior to 71000
such adoption as prescribed by the board in its resolution. If a 71001
board of education adopts a resolution waiving its right to 71002
approve agreements or shortening the notification period, the 71003
board shall certify a copy of the resolution to the legislative 71004
authority. If the board of education rescinds such a resolution, 71005
it shall certify notice of the rescission to the legislative 71006
authority.71007

       (4) If the legislative authority is not required by division71008
(D)(1), (2), or (3) of this section to notify the board of71009
education of the legislative authority's intent to declare71010
improvements to be a public purpose, the legislative authority71011
shall comply with the notice requirements imposed under section71012
5709.83 of the Revised Code, unless the board has adopted a71013
resolution under that section waiving its right to receive such a71014
notice.71015

       (E)(1) If a proposed ordinance under division (C)(1) of this 71016
section exempts improvements with respect to a parcel for more 71017
than ten years, or the percentage of the improvement exempted from 71018
taxation exceeds seventy-five per cent, not later than forty-five 71019
business days prior to adopting the ordinance the legislative 71020
authority of the municipal corporation shall deliver to the board 71021
of county commissioners of the county within which the incentive 71022
district is or will be located a notice that states its intent to 71023
adopt an ordinance creating an incentive district. The notice 71024
shall include a copy of the proposed ordinance.71025

       (2) The board of county commissioners, by resolution adopted 71026
by a majority of the board, may object to the exemption for the 71027
number of years in excess of ten, may object to the exemption for 71028
the percentage of the improvement to be exempted in excess of 71029
seventy-five per cent, or both, or may accept either or both 71030
exemptions. If the board of county commissioners objects, the 71031
board may negotiate an agreement with the legislative authority 71032
that provides to the board in the eleventh and subsequent years of 71033
the exemption period compensation equal in value to not more than 71034
fifty per cent of the taxes that would be payable to the county on 71035
the portion of the improvement in excess of seventy-five per cent, 71036
were that portion to be subject to taxation. The board of county 71037
commissioners shall certify its resolution to the legislative 71038
authority not later than thirty days after receipt of the notice.71039

       (3) If the board of county commissioners does not object or 71040
fails to certify its resolution objecting to an exemption within 71041
thirty days after receipt of the notice, the legislative authority 71042
may adopt the ordinance, and no compensation shall be provided to 71043
the board of county commissioners. If the board timely certifies 71044
its resolution objecting to the ordinance, the legislative 71045
authority may adopt the ordinance at any time after the 71046
compensation agreement is agreed to by the board and the 71047
legislative authority, or, if no compensation agreement is 71048
negotiated, at any time after the legislative authority agrees to 71049
provide compensation to the board of fifty per cent of the taxes 71050
that would be payable to the county in the eleventh and subsequent 71051
years of the exemption period on the portion of the improvement in 71052
excess of seventy-five per cent, were that portion to be subject 71053
to taxation.71054

       (F) Any of the following property tax levies that are enacted 71055
on or after January 1, 2006, and after the date an ordinance 71056
creating an incentive district is adopted on or after January 1, 71057
2006, under division (C)(1) of this section shall be levied on 71058
property that was exempted from taxation under division (C) of 71059
this section, and revenues collected from such levies shall not be 71060
used to provide service payments under this section:71061

       (1) A tax levied under division (L) of section 5705.19 of the 71062
Revised Code for community mental retardation and developmental 71063
disabilities programs and services pursuant to Chapter 5126. of 71064
the Revised Code;71065

       (2) A tax levied under division (Y) of section 5705.19 of the 71066
Revised Code for providing or maintaining senior citizens services 71067
or facilities;71068

       (3) A tax levied under section 5705.22 of the Revised Code 71069
for county hospitals;71070

       (4) A tax levied under section 5705.221 of the Revised Code 71071
for alcohol, drug addiction, and mental health services;71072

       (5) A tax levied under section 5705.23 of the Revised Code 71073
for library purposes;71074

       (6) A tax levied under section 5705.24 of the Revised Code 71075
for the support of children services and the placement and care of 71076
children.71077

       (G) An exemption from taxation granted under this section71078
commences with the tax year in which an improvement first appears71079
on the tax list and duplicate of real and public utility property71080
and that begins after the effective date ofspecified in the71081
ordinance. Except as otherwise provided in this division, the71082
exemption ends on the date specified in the ordinance as the date71083
the improvement ceases to be a public purpose or the incentive71084
district expires, or ends on the date on which the public71085
infrastructure improvements and housing renovations are paid in71086
full from the municipal public improvement tax increment71087
equivalent fund established under division (A) of section 5709.4371088
of the Revised Code, whichever occurs first. The exemption of an 71089
improvement with respect to a parcel may end on a later date, as71090
specified in the ordinance, if the legislative authority and the71091
board of education of the city, local, or exempted village school71092
district within which the parcel is located have entered into a71093
compensation agreement under section 5709.82 of the Revised Code71094
with respect to the improvement or district and the board of71095
education has approved the term of the exemption under division71096
(D)(2) of this section, but in no case shall the improvement be71097
exempted from taxation for more than thirty years. Exemptions71098
shall be claimed and allowed in the same manner as in the case of71099
other real property exemptions. If an exemption status changes71100
during a year, the procedure for the apportionment of the taxes71101
for that year is the same as in the case of other changes in tax71102
exemption status during the year.71103

       (F)(H) Additional municipal financing of public71104
infrastructure improvements and housing renovations may be71105
provided by any methods that the municipal corporation may71106
otherwise use for financing such improvements. If the municipal71107
corporation issues bonds or notes to finance the public71108
infrastructure improvements and housing renovations and pledges71109
money from the municipal public improvement tax increment71110
equivalent fund to pay the interest on and principal of the bonds71111
or notes, the bonds or notes are not subject to Chapter 133. of71112
the Revised Code.71113

       (G)(I) The municipal corporation, not later than fifteen days71114
after the adoption of an ordinance under this section, shall71115
submit to the director of development a copy of the ordinance. On71116
or before the thirty-first day of March of each year, the71117
municipal corporation shall submit a status report to the director71118
of development. The report shall indicate, in the manner71119
prescribed by the director, the progress of the project during71120
each year that an exemption remains in effect, including a summary 71121
of the receipts from service payments in lieu of taxes;71122
expenditures of money from the funds created under section 5709.4371123
of the Revised Code; a description of the public infrastructure71124
improvements and housing renovations financed with such71125
expenditures; and a quantitative summary of changes in employment71126
and private investment resulting from each project.71127

       (H)(J) Nothing in this section shall be construed to prohibit 71128
a legislative authority from declaring to be a public purpose71129
improvements with respect to more than one parcel.71130

       Sec. 5709.73.  (A) As used in this section and section71131
5709.74 of the Revised Code:71132

       (1) "Business day" means a day of the week excluding71133
Saturday, Sunday, and a legal holiday as defined in section 1.1471134
of the Revised Code.71135

       (2) "Further improvements" or "improvements" means the71136
increase in the trueassessed value of real property that would 71137
first appear on the tax list and duplicate of real and public 71138
utility property after the effective date of a resolution adopted 71139
under this section were it not for the exemption granted by that 71140
resolution. For purposes of division (B) of this section,71141
"improvements" do not include any property used or to be used for71142
residential purposes.71143

       (3) "Housing renovation" means a project carried out for71144
residential purposes.71145

       (4) "Incentive district" has the same meaning as in section71146
5709.40 of the Revised Code, except that a blighted area is in the71147
unincorporated area of a township.71148

       (5) "Project" and "public infrastructure improvement" have71149
the same meanings as in section 5709.40 of the Revised Code.71150

       (B) A board of township trustees may, by unanimous vote,71151
adopt a resolution that declares to be a public purpose any public71152
infrastructure improvements made that are necessary for the71153
development of certain parcels of land located in the71154
unincorporated area of the township. Except as otherwise provided71155
in division (D) of this section, the resolution may exempt from71156
real property taxation not more than seventy-five per cent of71157
further improvements to a parcel of land whichthat directly71158
benefits from such public infrastructure improvements; the71159
percentage exempted shall not, except as otherwise provided in71160
division (D) of this section, exceed the estimated percentage of 71161
the incremental demand placed on the public infrastructure71162
improvements that is directly attributable to the exempted71163
improvement. For the purposes of this division, a public71164
infrastructure improvement directly benefits a parcel of land only 71165
if a project on the parcel places direct, additional demand on the71166
public infrastructure improvement, or, if the public71167
infrastructure improvement has not yet been constructed, will71168
place direct, additional demand on the public infrastructure71169
improvement when completed. The resolution shall specify the71170
percentage of the further improvements to be exempted.71171

       (C)(1) A board of township trustees may adopt, by unanimous71172
vote, a resolution creating an incentive district and declaring71173
improvements to parcels within the district to be a public purpose71174
and, except as provided in division (F) of this section, exempt 71175
from taxation as provided in this section, but no board of 71176
township trustees of a township that has a population that exceeds 71177
twenty-five thousand, as shown by the most recent federal 71178
decennial census, shall adopt a resolution that creates an 71179
incentive district if, as a result of adopting the resolution, 71180
more than twenty-five per cent of the township's taxable value, as 71181
of the first day of January of the year in which the resolution 71182
takes effect, is subject to exemption because of an incentive 71183
district. The twenty-five per cent limitation does not apply to an 71184
incentive district that was created by a resolution adopted prior 71185
to January 1, 2006, unless the board creates an additional 71186
incentive district after that date. The district shall be located 71187
within the unincorporated area of the township and shall not 71188
include any territory that is included within a district created 71189
under division (B) of section 5709.78 of the Revised Code. The 71190
resolution shall delineate the boundary of the district and 71191
specifically identify each parcel within the district. A district 71192
may not include any parcel that is or has been exempted from 71193
taxation under division (B) of this section or that is or has been 71194
within another district created under this division. A resolution 71195
may create more than one such district, and more than one 71196
resolution may be adopted under this division (C)(1) of this 71197
section.71198

       (2) Not later than thirty days prior to adopting a resolution 71199
under this division (C)(1) of this section, if the township 71200
intends to apply for exemptions from taxation under section 71201
5709.911 of the Revised Code on behalf of owners of real property 71202
located within the proposed incentive district, the board shall 71203
conduct a public hearing on the proposed resolution. Not later 71204
than thirty days prior to the public hearing, the board shall give 71205
notice of the public hearing and the proposed resolution by first 71206
class mail to every real property owner whose property is located 71207
within the boundaries of the proposed incentive district that is 71208
the subject of the proposed resolution.71209

       (3)(a) A resolution under this division (C)(1) of this 71210
section shall specify the life of the district and the percentage 71211
of the improvements to be exempted and, shall designate the public 71212
infrastructure improvements made or, to be made, or in the process 71213
of being made, that benefit or serve, or, once made, will benefit 71214
or serve parcels in the district. The resolution also shall 71215
identify one or more specific projects being, or to be, undertaken 71216
in the district that place additional demand on the public 71217
infrastructure improvements designated in the resolution. The 71218
project identified may, but need not be, the project under 71219
division (C)(3)(b) of this section that places real property in 71220
use for commercial or industrial purposes.71221

       (b) A resolution adopted under this division (C)(1) of this 71222
section may authorize the use of service payments provided for in 71223
section 5709.74 of the Revised Code for the purpose of housing 71224
renovations within the district, provided that the resolution also 71225
designates public infrastructure improvements that benefit or 71226
serve the district, and that a project within the district places 71227
real property in use for commercial or industrial purposes. 71228
Service payments may be used to finance or support loans, deferred 71229
loans, and grants to persons for the purpose of housing 71230
renovations within the district. The resolution shall designate 71231
the parcels within the district that are eligible for housing 71232
renovations. The resolution shall state separately the amount or 71233
the percentages of the expected aggregate service payments that 71234
are designated for each public infrastructure improvement and for 71235
the purpose of housing renovations.71236

       (4) Except with the approval of the board of education of 71237
each city, local, or exempted village school district within the71238
territory of which the district is or will be located, and subject 71239
to division (E) of this section, the life of aan incentive71240
district shall not exceed ten years, and the percentage of71241
improvements to be exempted shall not exceed seventy-five per71242
cent. With such approval of the board of education, the life of a 71243
district may be not more than thirty years, and the percentage of 71244
improvements to be exempted may be not more than one hundred per 71245
cent.71246

       (5) Approval of a board of education shall be obtained in the71247
manner provided in division (D) of this section for exemptions71248
under division (B) of this section, except that the notice to the71249
board of education shall delineate the boundaries of the district,71250
specifically identify each parcel within the district, identify71251
each anticipated improvement in the district, provide an estimate71252
of the true value in money of each such improvement, specify the71253
life of the district and the percentage of improvements that would71254
be exempted, and indicate the date on which the board of township71255
trustees intends to adopt the resolution.71256

       A board of township trustees shall not adopt a resolution71257
under this division after June 30, 2007.71258

       (D) Improvements with respect to a parcel may be exempted71259
from taxation under division (B) of this section for up to ten71260
years or, with the approval of the board of education of the city,71261
local, or exempted village school district within which the parcel 71262
is located, for up to thirty years. The percentage of the71263
improvements exempted from taxation may, with such approval,71264
exceed seventy-five per cent, but shall not exceed one hundred per71265
cent. Not later than forty-five business days prior to adopting a71266
resolution under this section declaring improvements to be a71267
public purpose that is subject to approval by a board of education 71268
under this division, the board of trustees shall deliver to the 71269
board of education a notice stating its intent to adopt a 71270
resolution making that declaration. The notice shall identify the 71271
parcels for which improvements are to be exempted from taxation,71272
provide an estimate of the true value in money of the71273
improvements, specify the period for which the improvements would71274
be exempted from taxation and the percentage of the improvements71275
that would be exempted, and indicate the date on which the board71276
of trustees intends to adopt the resolution. The board of71277
education, by resolution adopted by a majority of the board, may71278
approve the exemption for the period or for the exemption71279
percentage specified in the notice, may disapprove the exemption71280
for the number of years in excess of ten, may disapprove the71281
exemption for the percentage of the improvements to be exempted in71282
excess of seventy-five per cent, or both, or may approve the71283
exemption on the condition that the board of trustees and the71284
board of education negotiate an agreement providing for71285
compensation to the school district equal in value to a percentage71286
of the amount of taxes exempted in the eleventh and subsequent71287
years of the exemption period or, in the case of exemption71288
percentages in excess of seventy-five per cent, compensation equal71289
in value to a percentage of the taxes that would be payable on the71290
portion of the improvements in excess of seventy-five per cent71291
were that portion to be subject to taxation, or other mutually 71292
agreeable compensation. The board of education shall certify its 71293
resolution to the board of trustees not later than fourteen days 71294
prior to the date the board of trustees intends to adopt the 71295
resolution as indicated in the notice. If the board of education 71296
approves the exemption on the condition that a compensation 71297
agreement be negotiated, the board of education in its resolution 71298
shall propose a compensation percentage. If the board of education 71299
and the board of trustees negotiate a mutually acceptable71300
compensation agreement, the resolution may declare the71301
improvements a public purpose for the number of years specified in71302
the resolution or, in the case of exemption percentages in excess71303
of seventy-five per cent, for the exemption percentage specified71304
in the resolution. In either case, if the board of education and71305
the board of trustees fail to negotiate a mutually acceptable71306
compensation agreement, the resolution may declare the71307
improvements a public purpose for not more than ten years, but71308
shall not exempt more than seventy-five per cent of the71309
improvements from taxation, or, in the case of a resolution71310
adopted under division (B) of this section, not more than the71311
estimated percentage of the incremental demand as otherwise 71312
prescribed by division (B) of this section if that percentage is71313
less than seventy-five per cent. If the board of education fails71314
to certify a resolution to the board of trustees within the time71315
prescribed by this section, the board of trustees thereupon may71316
adopt the resolution and may declare the improvements a public71317
purpose for up to thirty years or, in the case of exemption71318
percentages proposed in excess of seventy-five per cent, for the71319
exemption percentage specified in the resolution. The board of71320
township trustees may adopt the resolution at any time after the71321
board of education certifies its resolution approving the71322
exemption to the board of township trustees, or, if the board of71323
education approves the exemption on the condition that a mutually71324
acceptable compensation agreement be negotiated, at any time after71325
the compensation agreement is agreed to by the board of education71326
and the board of township trustees.71327

        If a board of education has adopted a resolution waiving its71328
right to approve exemptions from taxation and the resolution71329
remains in effect, approval of such exemptions by the board of71330
education is not required under this division. If a board of71331
education has adopted a resolution allowing a board of township71332
trustees to deliver the notice required under this division fewer71333
than forty-five business days prior to adoption of the resolution71334
by the board of township trustees, the board of township trustees71335
shall deliver the notice to the board of education not later than71336
the number of days prior to such adoption as prescribed by the71337
board of education in its resolution. If a board of education71338
adopts a resolution waiving its right to approve exemptions or71339
shortening the notification period, the board of education shall71340
certify a copy of the resolution to the board of township71341
trustees. If the board of education rescinds such a resolution, it 71342
shall certify notice of the rescission to the board of township71343
trustees.71344

       If the board of trustees is not required by this division to71345
notify the board of education of the board of trustees' intent to71346
declare improvements to be a public purpose, the board of trustees71347
shall comply with the notice requirements imposed under section71348
5709.83 of the Revised Code before taking formal action to adopt71349
the resolution making that declaration, unless the board of71350
education has adopted a resolution under that section waiving its71351
right to receive such a notice.71352

       (E)(1) If a proposed resolution under division (C)(1) of this 71353
section exempts improvements with respect to a parcel for more 71354
than ten years, or the percentage of the improvement exempted from 71355
taxation exceeds seventy-five per cent, not later than forty-five 71356
business days prior to adopting the ordinance the board of 71357
township trustees shall deliver to the board of county 71358
commissioners of the county within which the incentive district is 71359
or will be located a notice that states its intent to adopt a 71360
resolution creating an incentive district. The notice shall 71361
include a copy of the proposed resolution.71362

       (2) The board of county commissioners, by resolution adopted 71363
by a majority of the board, may object to the exemption for the 71364
number of years in excess of ten, may object to the exemption for 71365
the percentage of the improvement to be exempted in excess of 71366
seventy-five per cent, or both, or may accept either or both 71367
exemptions. If the board of county commissioners objects, the 71368
board may negotiate an agreement with the board of township 71369
trustees that provides to the board of county commissioners in the 71370
eleventh and subsequent years of the exemption period compensation 71371
equal in value to not more than fifty per cent of the taxes that 71372
would be payable to the county on the portion of the improvement 71373
in excess of seventy-five per cent, were that portion to be 71374
subject to taxation. The board of county commissioners shall 71375
certify its resolution to the board of township trustees not later 71376
than thirty days after receipt of the notice.71377

       (3) If the board of county commissioners does not object or 71378
fails to certify its resolution objecting to an exemption within 71379
thirty days after receipt of the notice, the board of township 71380
trustees may adopt its resolution, and no compensation shall be 71381
provided to the board of county commissioners. If the board of 71382
county commissioners timely certifies its resolution objecting to 71383
the trustees' resolution, the board of township trustees may adopt 71384
its resolution at any time after the compensation agreement is 71385
agreed to by the board of county commissioners and the board of 71386
township trustees, or, if no compensation agreement is negotiated, 71387
at any time after the board of township trustees agrees to provide 71388
compensation to the board of county commissioners of fifty per 71389
cent of the taxes that would be payable to the county in the 71390
eleventh and subsequent years of the exemption period on the 71391
portion of the improvement in excess of seventy-five per cent, 71392
were that portion to be subject to taxation.71393

       (F) Any of the following property tax levies that are enacted 71394
on or after January 1, 2006, and after the date an ordinance 71395
creating an incentive district is adopted on or after January 1, 71396
2006, under division (C)(1) of this section shall be levied on 71397
property that was exempted from taxation under division (C) of 71398
this section and revenues collected from such levies shall not be 71399
used to provide service payments under this section:71400

       (1) A tax levied under division (L) of section 5705.19 of the 71401
Revised Code for community mental retardation and developmental 71402
disabilities programs and services pursuant to Chapter 5126. of 71403
the Revised Code;71404

       (2) A tax levied under division (Y) of section 5705.19 of the 71405
Revised Code for providing or maintaining senior citizens services 71406
or facilities;71407

       (3) A tax levied under section 5705.22 of the Revised Code 71408
for county hospitals;71409

       (4) A tax levied under section 5705.221 of the Revised Code 71410
for alcohol, drug addiction, and mental health services;71411

       (5) A tax levied under section 5705.23 of the Revised Code 71412
for library purposes;71413

       (6) A tax levied under section 5705.24 of the Revised Code 71414
for the support of children services and the placement and care of 71415
children.71416

       (G) An exemption from taxation granted under this section71417
commences with the tax year in which an improvement first appears71418
on the tax list and duplicate of real and public utility property71419
andspecified in the resolution that begins after the effective 71420
date of the resolution. Except as otherwise provided in this 71421
division, the exemption ends on the date specified in the 71422
resolution as the date the improvement ceases to be a public 71423
purpose or the incentive district expires, or ends on the date on 71424
which the public infrastructure improvements and housing 71425
renovations are paid in full from the township public improvement 71426
tax increment equivalent fund established under section 5709.75 of 71427
the Revised Code, whichever occurs first. The exemption of an 71428
improvement with respect to a parcel may end on a later date, as71429
specified in the resolution, if the board of township trustees and71430
the board of education of the city, local, or exempted village71431
school district within which the parcel is located have entered 71432
into a compensation agreement under section 5709.82 of the Revised 71433
Code with respect to the improvement or district and the board of71434
education has approved the term of the exemption under division71435
(D) of this section, but in no case shall the improvement be71436
exempted from taxation for more than thirty years. The board of71437
township trustees may, by majority vote, adopt a resolution 71438
permitting the township to enter into such agreements as the board71439
finds necessary or appropriate to provide for the construction or71440
undertaking of public infrastructure improvements and housing71441
renovations. Any exemption shall be claimed and allowed in the71442
same or a similar manner as in the case of other real property71443
exemptions. If an exemption status changes during a tax year, the71444
procedure for the apportionment of the taxes for that year is the71445
same as in the case of other changes in tax exemption status71446
during the year.71447

       (F)(H) The board of township trustees may issue the notes of71448
the township to finance all costs pertaining to the construction71449
or undertaking of public infrastructure improvements and housing71450
renovations made pursuant to this section. The notes shall be71451
signed by the board and attested by the signature of the township71452
clerk, shall bear interest not to exceed the rate provided in71453
section 9.95 of the Revised Code, and are not subject to Chapter71454
133. of the Revised Code. The resolution authorizing the issuance71455
of the notes shall pledge the funds of the township public71456
improvement tax increment equivalent fund established pursuant to71457
section 5709.75 of the Revised Code to pay the interest on and71458
principal of the notes. The notes, which may contain a clause71459
permitting prepayment at the option of the board, shall be offered71460
for sale on the open market or given to the vendor or contractor71461
if no sale is made.71462

       (G)(I) The township, not later than fifteen days after the71463
adoption of a resolution under this section, shall submit to the71464
director of development a copy of the resolution. On or before the 71465
thirty-first day of March of each year, the township shall submit 71466
a status report to the director of development. The report shall 71467
indicate, in the manner prescribed by the director, the progress 71468
of the project during each year that the exemption remains in 71469
effect, including a summary of the receipts from service payments 71470
in lieu of taxes; expenditures of money from funds created under 71471
section 5709.75 of the Revised Code; a description of the public 71472
infrastructure improvements and housing renovations financed with 71473
such expenditures; and a quantitative summary of changes in 71474
private investment resulting from each project.71475

       (H)(J) Nothing in this section shall be construed to prohibit 71476
a board of township trustees from declaring to be a public purpose71477
improvements with respect to more than one parcel.71478

       (I)(K) A board of township trustees that adopted a resolution71479
under this section prior to July 21, 1994, may amend that71480
resolution to include any additional public infrastructure71481
improvement. A board of township trustees that seeks by such an71482
amendment to utilize money from its township public improvement71483
tax increment equivalent fund for land acquisition in aid of71484
industry, commerce, distribution, or research, demolition on71485
private property, or stormwater and flood remediation projects may71486
do so provided that the board currently is a party to a71487
hold-harmless agreement with the board of education of the city,71488
local, or exempted village school district within the territory of71489
which are located the parcels that are subject to an exemption.71490
For the purposes of this division, a "hold-harmless agreement"71491
means an agreement under which the board of township trustees71492
agrees to compensate the school district for one hundred per cent71493
of the tax revenue that the school district would have received71494
from further improvements to parcels designated in the resolution71495
were it not for the exemption granted by the resolution.71496

       Sec. 5709.77.  As used in sections 5709.77 to 5709.81 of the71497
Revised Code:71498

       (A) "Business day" means a day of the week excluding71499
Saturday, Sunday, and a legal holiday as defined in section 1.1471500
of the Revised Code.71501

       (B) "Fund" means to provide for the payment of the debt71502
service on and the expenses relating to an outstanding obligation71503
of the county.71504

       (C) "Housing renovation" means a project carried out for71505
residential purposes.71506

       (D) "Improvement" means the increase in the trueassessed71507
value of real property that would first appear on the tax list and 71508
duplicate of real and public utility property after the effective 71509
date of a resolution adopted under section 5709.78 of the Revised 71510
Code were it not for the exemption granted by that resolution. 71511
"Improvement" does not include a public infrastructure71512
improvement. For purposes of division (A) of section 5709.78 of 71513
the Revised Code, "improvement" does not include any property used 71514
or to be used for residential purposes.71515

       (E) "Incentive district" has the same meaning as in section71516
5709.40 of the Revised Code, except that a blighted area is in the71517
unincorporated territory of a county.71518

       (F) "Refund" means to fund and retire an outstanding71519
obligation of the county.71520

       (G) "Project" and "public infrastructure improvement" have71521
the same meanings as in section 5709.40 of the Revised Code.71522

       Sec. 5709.78.  (A) A board of county commissioners may, by71523
resolution, declare improvements to certain parcels of real71524
property located in the unincorporated territory of the county to71525
be a public purpose. Except as otherwise provided in division (C)71526
of this section, not more than seventy-five per cent of an71527
improvement thus declared to be a public purpose may be exempted71528
from real property taxation; the percentage exempted shall not,71529
except as otherwise provided in those divisions, exceed the71530
estimated percentage of the incremental demand placed on the71531
public infrastructure improvements that is directly attributable71532
to the exempted improvement. The resolution shall specify the71533
percentage of the improvement to be exempted.71534

       A resolution adopted under this division shall designate the71535
specific public infrastructure improvements made, to be made, or71536
in the process of being made by the county that directly benefit,71537
or that once made will directly benefit, the parcels for which71538
improvements are declared to be a public purpose. For the purposes 71539
of this division, a public infrastructure improvement directly 71540
benefits such a parcel only if a project on the parcel places71541
direct, additional demand on the public infrastructure improvement71542
or, if the public infrastructure improvement has not yet been71543
completed, will place direct, additional demand on the public71544
infrastructure improvement once it is completed. The service71545
payments provided for in section 5709.79 of the Revised Code shall71546
be used to finance the public infrastructure improvements71547
designated in the resolution.71548

       (B)(1) A board of county commissioners may adopt a resolution71549
creating an incentive district and declaring improvements to71550
parcels within the district to be a public purpose and, except as 71551
provided in division (E) of this section, exempt from taxation as 71552
provided in this section, but no board of county commissioners of 71553
a county that has a population that exceeds twenty-five thousand, 71554
as shown by the most recent federal decennial census, shall adopt 71555
a resolution that creates an incentive district if, as a result of 71556
adopting the resolution, more than twenty-five per cent of the 71557
county's taxable value, as of the first day of January of the year 71558
in which the resolution takes effect, is subject to exemption 71559
because of an incentive district. The twenty-five per cent 71560
limitation does not apply to an incentive district that was 71561
created by a resolution adopted prior to January 1, 2006, unless 71562
the board creates an additional incentive district after that 71563
date. The district shall be located within the unincorporated 71564
territory of the county and shall not include any territory that 71565
is included within a district created under division (C) of 71566
section 5709.73 of the Revised Code. The resolution shall 71567
delineate the boundary of the district and specifically identify 71568
each parcel within the district. A district may not include any 71569
parcel that is or has been exempted from taxation under division 71570
(A) of this section or that is or has been within another district 71571
created under this division. A resolution may create more than one 71572
such district, and more than one resolution may be adopted under 71573
this division (B)(1) of this section.71574

       (2) Not later than thirty days prior to adopting a resolution 71575
under this division (B)(1) of this section, if the county intends 71576
to apply for exemptions from taxation under section 5709.911 of 71577
the Revised Code on behalf of owners of real property located 71578
within the proposed incentive district, the board of county 71579
commissioners shall conduct a public hearing on the proposed 71580
resolution. Not later than thirty days prior to the public 71581
hearing, the board shall give notice of the public hearing and the 71582
proposed resolution by first class mail to every real property 71583
owner whose property is located within the boundaries of the 71584
proposed incentive district that is the subject of the proposed 71585
resolution. The board also shall provide the notice by first class 71586
mail to the clerk of each township in which the proposed incentive 71587
district will be located.71588

       (3)(a) A resolution under this division (B)(1) of this 71589
section shall specify the life of the district and the percentage 71590
of the improvements to be exempted and, shall designate the public 71591
infrastructure improvements made or, to be made, or in the process 71592
of being made, that benefit or serve, or, once made, will benefit 71593
or serve parcels in the district. The resolution also shall 71594
identify one or more specific projects being, or to be, undertaken 71595
in the district that place additional demand on the public 71596
infrastructure improvements designated in the resolution. The 71597
project identified may, but need not be, the project under 71598
division (B)(3)(b) of this section that places real property in 71599
use for commercial or industrial purposes.71600

       (b) A resolution adopted under this division (B)(1) of this 71601
section may authorize the use of service payments provided for in 71602
section 5709.79 of the Revised Code for the purpose of housing 71603
renovations within the district, provided that the resolution also 71604
designates public infrastructure improvements that benefit or 71605
serve the district, and that a project within the district places 71606
real property in use for commercial or industrial purposes. 71607
Service payments may be used to finance or support loans, deferred 71608
loans, and grants to persons for the purpose of housing 71609
renovations within the district. The resolution shall designate 71610
the parcels within the district that are eligible for housing 71611
renovations. The resolution shall state separately the amount or 71612
the percentages of the expected aggregate service payments that 71613
are designated for each public infrastructure improvement and for 71614
the purpose of housing renovations.71615

       (4) Except with the approval of the board of education of 71616
each city, local, or exempted village school district within the71617
territory of which the district is or will be located, and subject 71618
to division (D) of this section, the life of aan incentive71619
district shall not exceed ten years, and the percentage of71620
improvements to be exempted shall not exceed seventy-five per71621
cent. With such approval of the board of education, the life of a 71622
district may be not more than thirty years, and the percentage of 71623
improvements to be exempted may be not more than one hundred per 71624
cent.71625

       (5) Approval of a board of education shall be obtained in the71626
manner provided in division (C) of this section for exemptions71627
under division (A) of this section, except that the notice to the71628
board of education shall delineate the boundaries of the district,71629
specifically identify each parcel within the district, identify71630
each anticipated improvement in the district, provide an estimate71631
of the true value in money of each such improvement, specify the71632
life of the district and the percentage of improvements that would71633
be exempted, and indicate the date on which the board of county71634
commissioners intends to adopt the resolution.71635

       A board of county commissioners shall not adopt a resolution71636
under this division after June 30, 2007.71637

       (C)(1) Improvements with respect to a parcel may be exempted71638
from taxation under division (A) of this section for up to ten71639
years or, with the approval of the board of education of the city,71640
local, or exempted village school district within which the parcel 71641
is located, for up to thirty years. The percentage of the71642
improvements exempted from taxation may, with such approval,71643
exceed seventy-five per cent, but shall not exceed one hundred per71644
cent. Not later than forty-five business days prior to adopting a71645
resolution under this section declaring improvements to be a71646
public purpose that is subject to the approval of a board of 71647
education under this division, the board of county commissioners 71648
shall deliver to the board of education a notice stating its 71649
intent to adopt a resolution making that declaration. The notice 71650
shall identify the parcels for which improvements are to be 71651
exempted from taxation, provide an estimate of the true value in 71652
money of the improvements, specify the period for which the 71653
improvements would be exempted from taxation and the percentage of 71654
the improvements that would be exempted, and indicate the date on71655
which the board of county commissioners intends to adopt the71656
resolution. The board of education, by resolution adopted by a71657
majority of the board, may approve the exemption for the period or 71658
for the exemption percentage specified in the notice, may71659
disapprove the exemption for the number of years in excess of ten, 71660
may disapprove the exemption for the percentage of the71661
improvements to be exempted in excess of seventy-five per cent, or 71662
both, or may approve the exemption on the condition that the board 71663
of county commissioners and the board of education negotiate an71664
agreement providing for compensation to the school district equal71665
in value to a percentage of the amount of taxes exempted in the71666
eleventh and subsequent years of the exemption period or, in the71667
case of exemption percentages in excess of seventy-five per cent,71668
compensation equal in value to a percentage of the taxes that71669
would be payable on the portion of the improvements in excess of71670
seventy-five per cent were that portion to be subject to taxation, 71671
or other mutually agreeable compensation. The board of education 71672
shall certify its resolution to the board of county commissioners 71673
not later than fourteen days prior to the date the board of county71674
commissioners intends to adopt its resolution as indicated in the71675
notice. If the board of education approves the exemption on the71676
condition that a compensation agreement be negotiated, the board71677
of education in its resolution shall propose a compensation71678
percentage. If the board of education and the board of county71679
commissioners negotiate a mutually acceptable compensation71680
agreement, the resolution of the board of county commissioners may71681
declare the improvements a public purpose for the number of years71682
specified in that resolution or, in the case of exemption71683
percentages in excess of seventy-five per cent, for the exemption71684
percentage specified in the resolution. In either case, if the71685
board of education and the board of county commissioners fail to71686
negotiate a mutually acceptable compensation agreement, the71687
resolution may declare the improvements a public purpose for not71688
more than ten years, but shall not exempt more than seventy-five71689
per cent of the improvements from taxation, or, in the case of a71690
resolution adopted under division (A) of this section, not more71691
than the estimated percentage of the incremental demand as71692
otherwise prescribed by division (A) of this section if that 71693
percentage is less than seventy-five per cent. If the board of 71694
education fails to certify a resolution to the board of county71695
commissioners within the time prescribed by this section, the71696
board of county commissioners thereupon may adopt the resolution71697
and may declare the improvements a public purpose for up to thirty71698
years or, in the case of exemption percentages proposed in excess71699
of seventy-five per cent, for the exemption percentage specified71700
in the resolution. The board of county commissioners may adopt the71701
resolution at any time after the board of education certifies its71702
resolution approving the exemption to the board of county71703
commissioners, or, if the board of education approves the71704
exemption on the condition that a mutually acceptable compensation71705
agreement be negotiated, at any time after the compensation71706
agreement is agreed to by the board of education and the board of71707
county commissioners.71708

       (2) If a board of education has adopted a resolution waiving71709
its right to approve exemptions from taxation and the resolution71710
remains in effect, approval of such exemptions by the board of71711
education is not required under division (C)(1) of this section.71712
If a board of education has adopted a resolution allowing a board71713
of county commissioners to deliver the notice required under71714
division (C)(1) of this section fewer than forty-five business71715
days prior to approval of the resolution by the board of county71716
commissioners, the board of county commissioners shall deliver the71717
notice to the board of education not later than the number of days71718
prior to such approval as prescribed by the board of education in71719
its resolution. If a board of education adopts a resolution71720
waiving its right to approve exemptions or shortening the71721
notification period, the board of education shall certify a copy71722
of the resolution to the board of county commissioners. If the71723
board of education rescinds such a resolution, it shall certify71724
notice of the rescission to the board of county commissioners.71725

       (D)(1) If a proposed resolution under division (B)(1) of this 71726
section exempts improvements with respect to a parcel for more 71727
than ten years, or the percentage of the improvement exempted from 71728
taxation exceeds seventy-five per cent, not later than forty-five 71729
business days prior to adopting the ordinance the board of county 71730
commissioners shall deliver to the board of township trustees of 71731
any township or legislative authority of any municipal corporation 71732
within which the incentive district is or will be located a notice 71733
that states its intent to adopt a resolution creating an incentive 71734
district. The notice shall include a copy of the proposed 71735
resolution.71736

       (2) The board of township trustees or legislative authority 71737
of the municipal corporation, or both, by resolution, may object 71738
to the exemption for the number of years in excess of ten, may 71739
object to the exemption for the percentage of the improvement to 71740
be exempted in excess of seventy-five per cent, or both, or may 71741
accept either or both exemptions. If the board of township 71742
trustees or legislative authority, or both, objects, the board of 71743
township trustees or legislative authority may negotiate an 71744
agreement with the board of county commissioners that provides to 71745
the board of township trustees or legislative authority, or both, 71746
in the eleventh and subsequent years of the exemption period 71747
compensation equal in value to not more than fifty per cent of the 71748
taxes that would be payable to the township or municipal 71749
corporation on the portion of the improvement in excess of 71750
seventy-five per cent, were that portion to be subject to 71751
taxation. The board of township trustees and legislative authority 71752
shall certify its resolution to the board of county commissioners 71753
not later than thirty days after receipt of the notice.71754

       (3) If the board of township trustees and the legislative 71755
authority of the municipal corporation does not object or fails to 71756
certify a resolution objecting to an exemption within thirty days 71757
after receipt of the notice, the board of county commissioners may 71758
adopt its resolution, and no compensation shall be provided to the 71759
board of township trustees or legislative authority. If both the 71760
board of township trustees or legislative authority of the 71761
municipal corporation certify resolutions objecting to the 71762
commissioners' resolution, the board of county commissioners may 71763
adopt its resolution at any time after both compensation 71764
agreements are agreed to by the board of county commissioners and 71765
the respective party to the agreement. If either the board of 71766
township trustees or legislative authority of the municipal 71767
corporation certify a resolution objecting to the commissioners' 71768
resolution, the board of county commissioners may adopt its 71769
resolution at any time after the compensation agreement is agreed 71770
to by the board of county commissioners and the board or 71771
legislative authority, or, if no compensation agreement is 71772
negotiated, at any time after the board of county commissioners 71773
agrees to provide compensation to the board of township trustees 71774
or legislative authority, or to both, of fifty per cent of the 71775
taxes that would be payable to the township or municipal 71776
corporation in the eleventh and subsequent years of the exemption 71777
period on the portion of the improvement in excess of seventy-five 71778
per cent, were that portion to be subject to taxation.71779

       (E) Any of the following property tax levies that are enacted 71780
on or after January 1, 2006, and after the date an ordinance 71781
creating an incentive district is adopted on or after January 1, 71782
2006, under division (C)(1) of this section shall be levied on 71783
property that was exempted from taxation under division (C) of 71784
this section and revenues collected from such levies shall not be 71785
used to provide service payments under this section:71786

       (1) A tax levied under division (L) of section 5705.19 of the 71787
Revised Code for community mental retardation and developmental 71788
disabilities programs and services pursuant to Chapter 5126. of 71789
the Revised Code;71790

       (2) A tax levied under division (Y) of section 5705.19 of the 71791
Revised Code for providing or maintaining senior citizens services 71792
or facilities;71793

       (3) A tax levied under section 5705.22 of the Revised Code 71794
for county hospitals;71795

       (4) A tax levied under section 5705.221 of the Revised Code 71796
for alcohol, drug addiction, and mental health services;71797

       (5) A tax levied under section 5705.23 of the Revised Code 71798
for library purposes;71799

       (6) A tax levied under section 5705.24 of the Revised Code 71800
for the support of children services and the placement and care of 71801
children.71802

       (F) An exemption from taxation granted under this section71803
commences with the tax year in which an improvement first appears71804
on the tax list and duplicate of real and public utility property71805
andspecified in the resolution that begins after the effective 71806
date of the resolution. Except as otherwise provided in this 71807
division, the exemption ends on the date specified in the 71808
resolution as the date the improvement ceases to be a public 71809
purpose or the incentive district expires, or ends on the date on 71810
which the county can no longer require annual service payments in 71811
lieu of taxes under section 5709.79 of the Revised Code, whichever 71812
occurs first. The exemption of an improvement with respect to a 71813
parcel may end on a later date, as specified in the resolution, if 71814
the board of commissioners and the board of education of the city, 71815
local, or exempted village school district within which the parcel 71816
is located have entered into a compensation agreement under 71817
section 5709.82 of the Revised Code with respect to the 71818
improvement or district and the board of education has approved 71819
the term of the exemption under division (C)(1) of this section, 71820
but in no case shall the improvement be exempted from taxation for71821
more than thirty years. Exemptions shall be claimed and allowed in 71822
the same or a similar manner as in the case of other real property71823
exemptions. If an exemption status changes during a tax year, the71824
procedure for the apportionment of the taxes for that year is the71825
same as in the case of other changes in tax exemption status71826
during the year.71827

       (E)(G) If the board of county commissioners is not required71828
by this section to notify the board of education of the board of71829
county commissioners' intent to declare improvements to be a71830
public purpose, the board of county commissioners shall comply71831
with the notice requirements imposed under section 5709.83 of the71832
Revised Code before taking formal action to adopt the resolution71833
making that declaration, unless the board of education has adopted71834
a resolution under that section waiving its right to receive such71835
a notice.71836

       (F)(H) The county, not later than fifteen days after the71837
adoption of a resolution under this section, shall submit to the71838
director of development a copy of the resolution. On or before the 71839
thirty-first day of March of each year, the county shall submit a 71840
status report to the director of development. The report shall 71841
indicate, in the manner prescribed by the director, the progress 71842
of the project during each year that an exemption remains in 71843
effect, including a summary of the receipts from service payments 71844
in lieu of taxes; expenditures of money from funds created under 71845
section 5709.75 of the Revised Code; a description of the public 71846
infrastructure improvements and housing renovations financed with 71847
such expenditures; and a quantitative summary of changes in 71848
employment and private investment resulting from each project.71849

       (G)(I) Nothing in this section shall be construed to prohibit 71850
a board of county commissioners from declaring to be a public71851
purpose improvements with respect to more than one parcel.71852

       Sec. 5711.01.  As used in this chapter:71853

       (A) "Taxable property" includes all the kinds of property71854
mentioned in division (B) of section 5709.01 and section 5709.0271855
of the Revised Code, and also the amount or value as of the date71856
of conversion of all taxable property converted into bonds or71857
other securities not taxed on or after the first day of November71858
in the year preceding the date of listing, and of all other71859
taxable property converted into deposits after the date as of71860
which deposits are required to be listed in such year, except in71861
the usual course of the taxpayer's business, to the extent hethe71862
taxpayer may hold or control such bonds, securities, or deposits 71863
on such day, without deduction for indebtedness created in the 71864
purchase of such bonds or securities from histhe taxpayer's71865
credits. However, taxable"Taxable property" does not include such 71866
investments and deposits as are taxable at the source as provided 71867
in sections 5725.01 to 5725.26 of the Revised Code, surrender 71868
values under policies of insurance, or any tangible personal 71869
property acquired from a public utility or interexchange 71870
telecommunications company as defined in section 5727.01 of the 71871
Revised Code, and leased back to the public utility or 71872
interexchange telecommunications company pursuant to a sale and 71873
leaseback transaction as defined in division (I) of section 71874
5727.01 of the Revised Code. 71875

       For tax year 2007 and thereafter, taxable property leased to 71876
a telephone, telegraph, or interexchange telecommunications 71877
company, as defined in section 5727.01 of the Revised Code, shall 71878
be listed and assessed by the owner of the property at the 71879
percentage of true value in money required under division (H) of 71880
section 5711.22 of the Revised Code.71881

       (B) "Taxpayer" means any owner of taxable property, including 71882
property exempt under division (C) of section 5709.01 of the 71883
Revised Code, and includes every person residing in, or71884
incorporated or organized by or under the laws of this state, or71885
doing business in this state, or owning or having a beneficial71886
interest in taxable personal property in this state and every71887
fiduciary required by sections 5711.01 to 5711.36 of the Revised71888
Code, to make a return for or on behalf of another. For tax year 71889
2007 and thereafter, "taxpayer" includes telephone companies, 71890
telegraph companies, and interexchange telecommunications company 71891
as defined in section 5727.01 of the Revised Code. The tax71892
commissioner may by rule define and designate the taxpayer, as to71893
any taxable property which would not otherwise be required by this 71894
section to be returned; and any such rule shall be considered 71895
supplementary to the enumeration of kinds of taxpayers following:71896

       (1) Individuals of full age and sound mind residing in this 71897
state;71898

       (2) Partnerships, corporations, associations, and joint-stock 71899
companies, under whatever laws organized or existing, doing 71900
business or having taxable property in this state; and71901
corporations incorporated by or organized under the laws of this71902
state, wherever their actual business is conducted;71903

       (3) Fiduciaries appointed by any court in this state or71904
having title, possession, or custody of taxable personal property71905
in this state or engaged in business in this state;71906

       (4) Unincorporated mutual funds.71907

       Taxpayer excludes all individuals, partnerships,71908
corporations, associations, and joint-stock companies, their71909
executors, administrators, and receivers who are defined in Title71910
LVII of the Revised Code as financial institutions, dealers in71911
intangibles, domestic insurance companies, or public utilities,71912
except to the extent they may be required by sections 5711.01 to71913
5711.36 of the Revised Code, to make returns as fiduciaries, or by 71914
section 5725.26 of the Revised Code, to make returns of property 71915
leased, or held for the purpose of leasing, to others if the owner 71916
or lessor of the property acquired it for the sole purpose of 71917
leasing it to others or to the extent that property is taxable 71918
under section 5725.25 of the Revised Code.71919

       (C) "Return" means the taxpayer's annual report of taxable71920
property.71921

       (D) "List" means the designation, in a return, of the71922
description of taxable property, the valuation or amount thereof,71923
the name of the owner, and the taxing district where assessable.71924

       (E) "Taxing district" means, in the case of property71925
assessable on the classified tax list and duplicate, a municipal71926
corporation or the territory in a county outside the limits of all 71927
municipal corporations therein; in the case of property assessable 71928
on the general tax list and duplicate, a municipal corporation or 71929
township, or part thereof, in which the aggregate rate of taxation 71930
is uniform.71931

       (F) "Assessor" includes the tax commissioner and the county 71932
auditor as deputy of the commissioner.71933

       (G) "Fiduciary" includes executors, administrators, parents, 71934
guardians, receivers, assignees, official custodians, factors, 71935
bailees, lessees, agents, attorneys, and employees, but does not 71936
include trustees unless the sense so requires.71937

       (H) "General tax list and duplicate" means the books or71938
records containing the assessments of property subject to local71939
tax levies.71940

       (I) "Classified tax list and duplicate" means the books or71941
records containing the assessments of property not subject to71942
local tax levies.71943

       (J) "Investment company" means any corporation, the shares of 71944
which are regularly offered for sale to the public, engaged solely 71945
in the business of investing and reinvesting funds in real71946
property or investments, or holding or selling real property or71947
investments for the purpose of realizing income or profit which is 71948
distributed to its shareholders. Investment company does not71949
include any dealer in intangibles, as defined in section 5725.0171950
of the Revised Code.71951

       (K) "Unincorporated mutual fund" means any partnership, each 71952
partner of which is a corporation, engaged solely in the business 71953
of investing and reinvesting funds in investments, or holding or 71954
selling investments for the purpose of realizing income or profit 71955
which is distributed to its partners and which is subject to 71956
Chapter 1707. of the Revised Code. An unincorporated mutual fund 71957
does not include any dealer in intangibles as defined in section 71958
5725.01 of the Revised Code.71959

       Sec. 5711.16.  (A) As used in this section, manufacturer:71960

       (1) "Manufacturer" means a person who purchases, receives, or 71961
holds personal property for the purpose of adding to its value by 71962
manufacturing, refining, rectifying, or combining different 71963
materials with a view of making a gain or profit by so doing.71964

       (2) "Manufacturing equipment" means machinery and equipment, 71965
and tools and implements, including any associated patterns, jigs, 71966
dies, drawings, and business fixtures, used at a manufacturing 71967
facility by a manufacturer, and includes any such property leased 71968
to the manufacturer. "Manufacturing equipment" excludes property 71969
used for general office purposes. Nothing in this division is to 71970
be construed to change the definition of personal property, as 71971
defined in section 5701.03 of the Revised Code.71972

       (3) "Manufacturing facility" means a facility or portion of a 71973
facility used for manufacturing, mining, refining, rectifying, or 71974
combining different materials with a view of making a gain or 71975
profit by so doing. "Manufacturing facility" includes that portion 71976
of a facility used to store or transport raw materials, 71977
work-in-process, or finished goods inventory, for packaging, for 71978
research, or to test for quality control, as long as 71979
manufacturing, mining, refining, rectifying, or combining is also 71980
performed at the facility. "Manufacturing facility" does not 71981
include any portion of a facility used primarily for making retail 71982
sales.71983

       (4) "Manufacturing inventory" means all articles purchased, 71984
received, or otherwise held for the purpose of being used, in 71985
whole or in part, in manufacturing, mining, combining, rectifying, 71986
or refining, and of all articles that were at any time 71987
manufactured or changed in any way by a manufacturer, either by 71988
mining, combining, rectifying, refining, or adding thereto.71989

       (B) When a manufacturer is required to return a statement of71990
the amount of the manufacturer's personal property used in71991
business, the manufacturer shall include the average value, 71992
estimated as provided in this section, of all articles purchased, 71993
received, or otherwise held for the purpose of being used, in 71994
whole or in part, in manufacturing, combining, rectifying, or 71995
refining, and of all articles that were at any time manufactured71996
or changed in any way by the manufacturer, either by combining, 71997
rectifying, refining, or adding thereto,manufacturing inventory71998
that the manufacturer has had on hand during the year ending on 71999
the day the property is listed for taxation annually, or the part 72000
of such year during which the manufacturer was engaged in 72001
business. The manufacturer shall separately list finished products 72002
not kept or stored at the place of manufacture or at a warehouse 72003
in the same county.72004

       The average value of such property shall be ascertained by 72005
taking the value of all property subject to be listed on the 72006
average basis, owned by the manufacturer on the last business day 72007
of each month the manufacturer was engaged in business during the 72008
year, adding the monthly values together, and dividing the result 72009
by the number of months the manufacturer was engaged in such 72010
business during the year. The result shall be the average value to 72011
be listed.72012

       (B)(C) A manufacturer also shall list all engines and 72013
machinery, and tools and implements, of every kind used, or 72014
designed to be used, in refining and manufacturing, andequipment72015
owned or used by the manufacturer.72016

       Sec. 5711.21.  (A) In assessing taxable property the assessor 72017
shall be governed by the rules of assessment prescribed by 72018
sections 5711.01 to 5711.36 of the Revised Code. Wherever any72019
taxable property is required to be assessed at its true value in72020
money or at any percentage of true value, the assessor shall be72021
guided by the statements contained in the taxpayer's return and72022
such other rules and evidence as will enable the assessor to72023
arrive at such true value. Wherever the income yield of taxable72024
property is required to be assessed, and the method of determining 72025
between income and return or distribution of principal, or that of 72026
allocating expenses in determining net income, or that of 72027
ascertaining the source from which partial distributions of income 72028
have been made is not expressly prescribed by sections 5711.01 to 72029
5711.36 of the Revised Code, the assessor shall be guided by the 72030
statements contained in the taxpayer's return and such general 72031
rules as the tax commissioner adopts to enable the assessor to 72032
make such determination.72033

       (B) TheFor tax years before tax year 2009, the true value of 72034
the boilers, machinery, equipment, and any personal property used 72035
to generate or distribute the electricity shall be the sum of the 72036
following:72037

       (1) The true value of the property as it would be determined 72038
under this chapter if none of the electricity were distributed to 72039
others multiplied by the per cent of the electricity generated in 72040
the preceding calendar year that was used by the person who 72041
generated it; plus72042

       (2) The true value of the property that is production72043
equipment as it would be determined for an electric company under72044
section 5727.11 of the Revised Code multiplied by the per cent of72045
the electricity generated in the preceding calendar year that was72046
not used by the person who generated it; plus72047

       (3) The true value of the property that is not production72048
equipment as it would be determined for an electric company under72049
section 5727.11 of the Revised Code multiplied by the per cent of72050
the electricity generated in the preceding calendar year that was72051
not used by the person who generated it.72052

       (C) TheFor tax years before tax year 2009, the true value of 72053
personal property leased to a public utility or interexchange 72054
telecommunications company as defined in section 5727.01 of the 72055
Revised Code and used by the utility or interexchange 72056
telecommunications company directly in the rendition of a public 72057
utility service as defined in division (P) of section 5739.01 of 72058
the Revised Code shall be determined in the same manner that the 72059
true value of such property is determined under section 5727.11 of 72060
the Revised Code if owned by the public utility or interexchange 72061
telecommunications company.72062

       Sec. 5711.22.  (A) Deposits not taxed at the source shall be 72063
listed and assessed at their amount in dollars on the day they are 72064
required to be listed. Moneys shall be listed and assessed at the 72065
amount thereof in dollars on hand on the day that they are72066
required to be listed. In listing investments, the amount of the72067
income yield of each for the calendar year next preceding the date 72068
of listing shall, except as otherwise provided in this chapter, be 72069
stated in dollars and cents and the assessment thereof shall be at 72070
the amount of such income yield; but any property defined as 72071
investments in either division (A) or (B) of section 5701.06 of 72072
the Revised Code that has not been outstanding for the full 72073
calendar year next preceding the date of listing, except shares of 72074
stock of like kind as other shares of the same corporation 72075
outstanding for the full calendar year next preceding the date of 72076
listing, or which has yielded no income during such calendar year 72077
shall be listed and assessed as unproductive investments, at their 72078
true value in money on the day that such investments are required 72079
to be listed.72080

       Credits and other taxable intangibles shall be listed and72081
assessed at their true value in money on the day as of which the72082
same are required to be listed.72083

       Shares of stock of a bank holding company, as defined in72084
Title 12 U.S.C.A., section 1841, that are required to be listed72085
for taxation under this division and upon which dividends were72086
paid during the year of their issuance, which dividends are72087
subject to taxation under the provisions of Chapter 5747. of the72088
Revised Code, shall be exempt from the intangibles tax for the72089
year immediately succeeding their issuance. If such shares bear72090
dividends the first calendar year after their issuance, which72091
dividends are subject to taxation under the provisions of Chapter72092
5747. of the Revised Code, it shall be deemed that the 72093
nondelinquent intangible property tax pursuant to division (A) of 72094
section 5707.04 of the Revised Code was paid on those dividends 72095
paid that first calendar year after the issuance of the shares.72096

       (B)(1) BoilersFor tax years before tax year 2009, boilers, 72097
machinery, equipment, and personal property the true value of 72098
which is determined under division (B) of section 5711.21 of the 72099
Revised Code shall be listed and assessed at an amount equal to 72100
the sum of the products determined under divisions (B)(1)(a), 72101
(b)(2), and (c)(3) of this section.:72102

       (a)(1) Multiply the portion of the true value determined72103
under division (B)(1) of section 5711.21 of the Revised Code by72104
the assessment rate for the tax year in division (F)(G) of this 72105
section;72106

       (b)(2) Multiply the portion of the true value determined72107
under division (B)(2) of section 5711.21 of the Revised Code by72108
the assessment rate in section 5727.111 of the Revised Code that72109
is applicable to the production equipment of an electric company;72110

       (c)(3) Multiply the portion of the true value determined72111
under division (B)(3) of section 5711.21 of the Revised Code by72112
the assessment rate in section 5727.111 of the Revised Code that72113
is applicable to the property of an electric company that is not72114
production equipment.72115

       (2) Personal(C) For tax years before tax year 2009, personal72116
property leased to a public utility or interexchange 72117
telecommunications company as defined in section 5727.01 of the 72118
Revised Code and used directly in the rendition of a public 72119
utility service as defined in division (P) of section 5739.01 of 72120
the Revised Code shall be listed and assessed at the same 72121
percentage of true value in money that such property is required 72122
to be assessed by section 5727.111 of the Revised Code if owned by 72123
the public utility or interexchange telecommunications company.72124

       (C)(D)(1) Merchandise or an agricultural product shipped from 72125
outside this state and held in this state in a warehouse or a 72126
place of storage without further manufacturing or processing and 72127
for storage only and for shipment outside this state, but that is 72128
taxable because it does not qualify as "not used in business in 72129
this state" under division (B)(1) or (2) of section 5701.08 of the 72130
Revised Code, shall be listed and assessed at a rate of 72131
twenty-five one-hundredths of its true value in money until 72132
reduced in accordance with the following schedule:72133

       (a) For any year, subtract five one-hundredths from the rate 72134
at which such property was required to be listed and assessed in 72135
the preceding year, if the total statewide collection of all real 72136
and tangible personal property taxes for the second preceding year 72137
exceeded the total statewide collection of all real and tangible 72138
personal property taxes for the third preceding year by more than72139
the greater of four per cent or the rate of increase from the 72140
third to the second preceding years in the average consumer price 72141
index (all urban consumers, all items) prepared by the bureau of 72142
labor statistics of the United States department of labor;72143

       (b) If no reduction in the assessment rate is made for a 72144
year, the rate is the same as for the preceding year.72145

       (2) Each year until the year the assessment rate equals zero, 72146
the tax commissioner shall determine the assessment rate required 72147
under this division and shall notify all county auditors of that 72148
rate.72149

       (3) Notwithstanding provisions to the contrary in division 72150
(B) of section 5701.08 of the Revised Code, during and after the 72151
year for which the assessment rate as calculated under this 72152
division equals zero, any merchandise or agricultural product 72153
shipped from outside this state and held in this state in any 72154
warehouse or place of storage, whether public or private, without72155
further manufacturing or processing and for storage only and for 72156
shipment outside this state to any person for any purpose is 72157
nevertheless not used in business in this state for property tax 72158
purposes.72159

       (D)(1)(2) Merchandise or an agricultural product owned by a72160
qualified out-of-state person shipped from outside this state and 72161
held in this state in a public warehouse without further72162
manufacturing or processing and for temporary storage only and for 72163
shipment inside this state, but that is taxable because it does 72164
not qualify as "not used in business in this state" under division 72165
(B)(1) or (2) of section 5701.08 of the Revised Code, shall be 72166
listed and assessed at a rate of twenty-five one-hundredths of its 72167
true value in money until reduced in accordance with the following72168
schedule:72169

       (a) For any year, subtract five one-hundredths from the rate 72170
at which such property was required to be listed and assessed in 72171
the preceding year, if the total statewide collection of all real 72172
and tangible personal property taxes for the second preceding year 72173
exceeded the total statewide collection of all real and tangible 72174
personal property taxes for the third preceding year by more than 72175
the greater of four per cent or the rate of increase from the 72176
third to the second preceding years in the average consumer price 72177
index (all urban consumers, all items) prepared by the bureau of 72178
labor statistics of the United States department of labor;72179

       (b) If no reduction in the assessment rate is made for a 72180
year, the rate is the same as for the preceding year.72181

       (2) Each year until the year the assessment rate equals zero, 72182
the tax commissioner shall determine the assessment rate required 72183
under this division and shall notify all county auditors of that 72184
rate.72185

       (3) Notwithstanding provisions to the contrary in division 72186
(B) of section 5701.08 of the Revised Code, during and after the 72187
year for which the assessment rate as calculated under this 72188
division equals zero, any merchandise or agricultural product 72189
described in division (D)(1) of this section is nevertheless not 72190
used in business in this state for property tax purposes.72191

       (4)(3) As used in division (D)(2) of this section:72192

       (a) "Qualified out-of-state person" means a person that does 72193
not own, lease, or use property, other than merchandise or an 72194
agricultural product described in this division, in this state, 72195
and does not have employees, agents, or representatives in this 72196
state;72197

       (b) "Public warehouse" means a warehouse in this state that 72198
is not subject to the control of or under the supervision of the 72199
owner of the merchandise or agricultural product stored in it, or 72200
staffed by the owner's employees, and from which the property is 72201
to be shipped inside this state.72202

       (E) Personal property valued pursuant to section 5711.15 of 72203
the Revised Code and personal property required to be listed on 72204
the average basis by division (A)(B) of section 5711.16 of the 72205
Revised Code, except property described in division (C) or (D) of 72206
this section, business fixtures, and furniture not held for sale 72207
in the course of business, shall be listed and assessed at the 72208
rate of twenty-five per cent of its true value in money until72209
reduced to zero in accordance with the following schedule:72210

       (1) Beginning in tax year 2002 and for each of tax years 2003 72211
and 2004, subtract one percentage point from the rate at which the 72212
property was required to be listed and assessed in the preceding 72213
year, if the total statewide collection of tangible personal 72214
property taxes for the second preceding year exceeded the total 72215
statewide collection of tangible personal property taxes for the 72216
third preceding year. If no reduction in the assessment rate is 72217
made for a year, the rate is the same as for the preceding year.72218

       (2) In tax years 2005 and 2006, the assessment rate shall be 72219
reduced by two percentage points, if the total statewide 72220
collection of tangible personal property taxes for the second 72221
preceding year exceeded the total statewide collection of tangible 72222
personal property taxes for the third preceding year. If no 72223
reduction in the assessment rate is made for a year, the rate is 72224
the same as for the preceding year.72225

       (3) For tax year 2007 and each tax year thereafter, the 72226
assessment rate shall be reduced by two percentage points. During 72227
and after the tax year that the assessment rate equals zero, the 72228
property described in division (E) of this section shall not be 72229
listed for taxation.72230

       Each year until the year the assessment rate equals zero, the 72231
tax commissioner shall determine the assessment rate required 72232
under this division and shall notify all county auditors of that 72233
rate.72234

       For purposes of division (E) of this section, "total 72235
statewide collection of tangible person property taxes" excludes 72236
taxes collected from public utilities and interexchange 72237
telecommunications companies on property that is determined to be 72238
taxable pursuant to section 5727.06 of the Revised Code72239
twenty-three per cent of its true value in money for tax year 2005 72240
and at the percentage of such true value specified in division (G) 72241
of this section for tax year 2006 and each tax year thereafter.72242

       (F) All manufacturing equipment as defined in section 5711.16 72243
of the Revised Code shall be listed and assessed at the following 72244
percentage of its true value in money:72245

        (1) For all such property not previously used in business in 72246
this state by the owner thereof, or by related member or 72247
predecessor of the owner, other than as inventory, before January 72248
1, 2005, zero per cent of true value;72249

        (2) For all other such property, at the percentage of true 72250
value specified in division (G) of this section for tax year 2005 72251
and each tax year thereafter.72252

       (F)(G) Unless otherwise provided by law, all other personal72253
property used in business that has not been legally regarded as an 72254
improvement on land and considered in arriving at the value of the 72255
real property assessed for taxation shall be listed and assessed 72256
at the rate of twenty-five per centfollowing percentages of its72257
true value in money:72258

        (1) For tax year 2005, twenty-five per cent of true value;72259

        (2) For tax year 2006, eighteen and three-fourths per cent of 72260
true value;72261

        (3) For tax year 2007, twelve and one-half per cent of true 72262
value;72263

        (4) For tax year 2008, six and one-fourth per cent of true 72264
value;72265

        (5) For tax year 2009 and each tax year thereafter, zero per 72266
cent of true value.72267

       (H)(1) For tax year 2007 and thereafter, all personal 72268
property used by a telephone company, telegraph company, or 72269
interexchange telecommunications company shall be listed as 72270
provided in this chapter and assessed at the following percentages 72271
of true value in money:72272

       (a) For tax year 2007, twenty per cent of true value;72273

       (b) For tax year 2008, fifteen per cent of true value;72274

       (c) For tax year 2009, ten per cent of true value;72275

       (d) For tax year 2010, five per cent of true value;72276

       (e) For tax year 2011 and each tax year thereafter, zero per 72277
cent of true value.72278

       (2) The property owned by a telephone, telegraph, or 72279
telecommunications company shall be apportioned to each 72280
appropriate taxing district as provided in section 5727.15 of the 72281
Revised Code.72282

        (I) During and after the tax year in which the assessment 72283
rate equals zero per cent, the property described in division (E), 72284
(F), (G), or (H) of this section shall not be listed for taxation.72285

       (J) Divisions (E), (F), (G), and (H) of this section apply to 72286
the property of a person described in divisions (E)(3) to (10) of 72287
section 5751.01 of the Revised Code. Division (J) of this section 72288
does not prevent the application of the exemption of property from 72289
taxation under section 5725.25 or 5725.26 of the Revised Code.72290

       Sec. 5711.28.  Whenever the assessor imposes a penalty72291
prescribed by section 5711.27 or 5725.17 of the Revised Code, the72292
assessor shall send notice of such penalty assessment to the 72293
taxpayer by mail. If the notice also reflects the assessment of 72294
any property not listed in or omitted from a return, or the 72295
assessment of any item or class of taxable property listed in a 72296
return by the taxpayer in excess of the value or amount thereof as 72297
so listed, or without allowing a claim duly made for deduction 72298
from the net book value of accounts receivable, or depreciated 72299
book value of personal property used in business, so listed, and 72300
the taxpayer objects to one or more of such corrections in 72301
addition to the penalty, the taxpayer shall proceed as prescribed 72302
by section 5711.31 of the Revised Code, but if no such correction 72303
is reflected in the notice, or if the taxpayer does not object to 72304
any such correction made, hethe taxpayer shall proceed as 72305
prescribed herein.72306

       Within sixty days after the mailing of the notice of a72307
penalty assessment prescribed by this section, the taxpayer may72308
file with the tax commissioner, in person or by certified mail, a72309
petition for abatement of such penalty assessment. If the petition 72310
is filed by certified mail, the date of the United States postmark 72311
placed on the sender's receipt by the postal employee to whom the 72312
petition is presented shall be treated as the date of filing. The 72313
petition shall have attached thereto and incorporated therein by 72314
reference a true copy of the notice of assessment complained of, 72315
but the failure to attach a copy of such notice and incorporate it 72316
by reference does not invalidate the petition. The petition shall 72317
also indicate that the taxpayer's only objection is to the 72318
assessed penalty and the reason for such objection.72319

       Upon the filing of a petition for abatement of penalty, the72320
commissioner shall notify the treasurer of state or the auditor72321
and treasurer of each county having any part of the penalty72322
assessment entered on the tax list or duplicate. The commissioner 72323
shall review the petition without the need for hearing. If it 72324
appears that the failure of the taxpayer to timely return or list 72325
as required under this chapter, or to file a complying report and 72326
pay tax under Chapter 5725. of the Revised Code, whichever the 72327
case may be, was due to reasonable cause and not willful neglect, 72328
the commissioner may abate in whole or in part the penalty 72329
assessment. The commissioner shall transmit a certificate of the 72330
commissioner's determination to the taxpayer, and if no appeal is 72331
taken therefrom as provided by law, or upon the final72332
determination of an appeal which may be taken, the commissioner 72333
shall notify the treasurer of state or the proper county auditor 72334
of such final determination. If the final determination orders 72335
abatement of the penalty assessment, the notification may be in 72336
the form of an amended assessment certificate. Upon receipt of the72337
notification, the treasurer of state or county auditor shall make72338
any corrections to the treasurer's or auditor's records and tax 72339
lists and duplicates required in accordance therewith and proceed 72340
as prescribed by section 5711.32 or 5725.22 of the Revised Code.72341

       The decision of the commissioner shall be final with respect 72342
to the percentage of penalty, if any, the commissioner finds72343
appropriate for the failure to return timely or list the property, 72344
but neither the commissioner's decision nor a final judgment of 72345
the board of tax appeals or any court to which such final72346
determination may be appealed shall finalize the assessment of72347
such property.72348

       Sec. 5713.01.  (A) Each county shall be the unit for72349
assessing real estate for taxation purposes. The county auditor72350
shall be the assessor of all the real estate in histhe auditor's72351
county for purposes of taxation, but this section does not affect 72352
the power conferred by Chapter 5727. of the Revised Code upon the 72353
tax commissioner regarding the valuation and assessment of the72354
real property of railroadsused in railroad operations.72355

       (B) The auditor shall assess all the real estate situated in 72356
the county at its taxable value in accordance with sections72357
5713.03, 5713.31, and 5715.01 of the Revised Code and with the72358
rules and methods applicable to histhe auditor's county adopted, 72359
prescribed, and promulgated by the tax commissioner. The auditor 72360
shall view and appraise or cause to be viewed and appraised at its 72361
true value in money, each lot or parcel of real estate, including 72362
land devoted exclusively to agricultural use, and the improvements72363
located thereon at least once in each six-year period and the72364
taxable values required to be derived therefrom shall be placed on 72365
the auditor's tax list and the county treasurer's duplicate for 72366
the tax year ordered by the commissioner pursuant to section72367
5715.34 of the Revised Code. The commissioner may grant an72368
extension of one year or less if hethe commissioner finds that72369
good cause exists for the extension. When the auditor so views and 72370
appraises, hethe auditor may enter each structure located thereon 72371
to determine by actual view what improvements have been made 72372
therein or additions made thereto since the next preceding 72373
valuation. The auditor shall revalue and assess at any time all or 72374
any part of the real estate in such county, including land devoted 72375
exclusively to agricultural use, where hethe auditor finds that 72376
the true or taxable values thereof have changed, and when a 72377
conservation easement is created under sections 5301.67 to 5301.70 72378
of the Revised Code. HeThe auditor may increase or decrease the 72379
true or taxable value of any lot or parcel of real estate in any 72380
township, municipal corporation, or other taxing district by an 72381
amount which will cause all real property on the tax list to be 72382
valued as required by law, or hethe auditor may increase or 72383
decrease the aggregate value of all real property, or any class of 72384
real property, in the county, township, municipal corporation, or 72385
other taxing district, or in any ward or other division of a 72386
municipal corporation by a per cent or amount which will cause all 72387
property to be properly valued and assessed for taxation in 72388
accordance with Section 36, Article II, Section 2, Article XII, 72389
Ohio Constitution, this section, and sections 5713.03, 5713.31, 72390
and 5715.01 of the Revised Code.72391

       (C) When the auditor determines to reappraise all the real72392
estate in the county or any class thereof, when the tax72393
commissioner orders an increase in the aggregate true or taxable72394
value of the real estate in any taxing subdivision, or when the72395
taxable value of real estate is increased by the application of a72396
uniform taxable value per cent of true value pursuant to the order 72397
of the commissioner, hethe auditor shall advertise the completion 72398
of histhe reappraisal or equalization action in a newspaper of 72399
general circulation in the county once a week for the three 72400
consecutive weeks next preceding the issuance of the tax bills. 72401
When the auditor changes the true or taxable value of any 72402
individual parcels of real estate, hethe auditor shall notify the 72403
owner of the real estate, or the person in whose name the same 72404
stands charged on the duplicate, by mail or in person, of the 72405
changes hethe auditor has made in the assessments of such 72406
property. Such notice shall be given at least thirty days prior to 72407
the issuance of the tax bills. Failure to receive notice shall not 72408
invalidate any proceeding under this section.72409

       (D) The auditor shall make the necessary abstracts from books 72410
of histhe auditor's office containing descriptions of real estate 72411
in such county, together with such platbooks and lists of 72412
transfers of title to land as the auditor deems necessary in the72413
performance of histhe auditor's duties in valuing such property72414
for taxation. Such abstracts, platbooks, and lists shall be in 72415
such form and detail as the tax commissioner prescribes.72416

       (E) The auditor, with the approval of the tax commissioner, 72417
may appoint and employ such experts, deputies, clerks, or other 72418
employees as hethe auditor deems necessary to the performance of 72419
histhe auditor's duties as assessor, or, with the approval of the 72420
tax commissioner, hethe auditor may enter into a contract with an72421
individual, partnership, firm, company, or corporation to do all72422
or any part of the work; the amount to be expended in the payment72423
of the compensation of such employees shall be fixed by the board72424
of county commissioners. If, in the opinion of the auditor, the72425
board of county commissioners fails to provide a sufficient amount 72426
for the compensation of such employees, hethe auditor may apply 72427
to the tax commissioner for an additional allowance, and the72428
additional amount of compensation allowed by the commissioner72429
shall be certified to the board of county commissioners, and the72430
same shall be final. The salaries and compensation of such72431
experts, deputies, clerks, and employees shall be paid upon the72432
warrant of the auditor out of the general fund or the real estate72433
assessment fund of the county, or both. If the salaries and72434
compensation are in whole or in part fixed by the commissioner,72435
they shall constitute a charge against the county regardless of72436
the amount of money in the county treasury levied or appropriated72437
for such purposes.72438

       (F) Any contract for goods or services related to the72439
auditor's duties as assessor, including contracts for mapping,72440
computers, and reproduction on any medium of any documents,72441
records, photographs, microfiche, or magnetic tapes, but not72442
including contracts for the professional services of an appraiser, 72443
shall be awarded pursuant to the competitive bidding procedures 72444
set forth in sections 307.86 to 307.92 of the Revised Code and 72445
shall be paid for, upon the warrant of the auditor, from the real 72446
estate assessment fund.72447

       (G) Experts, deputies, clerks, and other employees, in72448
addition to their other duties, shall perform such services as the 72449
auditor directs in ascertaining such facts, description, location, 72450
character, dimensions of buildings and improvements, and other 72451
circumstances reflecting upon the value of real estate as will aid 72452
the auditor in fixing its true and taxable value and, in the case 72453
of land valued in accordance with section 5713.31 of the Revised 72454
Code, its current agricultural use value. The auditor may also 72455
summon and examine any person under oath in respect to any matter 72456
pertaining to the value of any real property within the county.72457

       Sec. 5715.01. (A) The tax commissioner shall direct and72458
supervise the assessment for taxation of all real property. The72459
commissioner shall adopt, prescribe, and promulgate rules for the72460
determination of true value and taxable value of real property by72461
uniform rule for such values and for the determination of the72462
current agricultural use value of land devoted exclusively to72463
agricultural use. The uniform rules shall prescribe methods of72464
determining the true value and taxable value of real property and 72465
shall also prescribe the method for determining the current72466
agricultural use value of land devoted exclusively to agricultural 72467
use, which method shall reflect standard and modern appraisal 72468
techniques, that take into consideration: the productivity of the 72469
soil under normal management practices; the average price patterns 72470
of the crops and products produced to determine the income 72471
potential to be capitalized; the market value of the land for 72472
agricultural use; and other pertinent factors. The rules shall 72473
provide that in determining the true value of lands or 72474
improvements thereon for tax purposes, all facts and circumstances 72475
relating to the value of the property, its availability for the 72476
purposes for which it is constructed or being used, its obsolete 72477
character, if any, the income capacity of the property, if any, 72478
and any other factor that tends to prove its true value shall be 72479
used. TheIn determining the true value of minerals or rights to 72480
minerals for the purpose of real property taxation, the tax 72481
commissioner shall not include in the value of the minerals or 72482
rights to minerals the value of any tangible personal property 72483
used in the recovery of those minerals.72484

        (B) The taxable value shall be that per cent of true value in 72485
money, or current agricultural use value in the case of land 72486
valued in accordance with section 5713.31 of the Revised Code, the 72487
commissioner by rule establishes, but it shall not exceed 72488
thirty-five per cent. The uniform rules shall also prescribe 72489
methods of making the appraisals set forth in section 5713.03 of 72490
the Revised Code. The taxable value of each tract, lot, or parcel 72491
of real property and improvements thereon, determined in 72492
accordance with the uniform rules and methods prescribed thereby, 72493
shall be the taxable value of the tract, lot, or parcel for all 72494
purposes of sections 5713.01 to 5713.26, 5715.01 to 5715.51, and 72495
5717.01 to 5717.06 of the Revised Code. County auditors shall, 72496
under the direction and supervision of the commissioner, be the 72497
chief assessing officers of their respective counties, and shall 72498
list and value the real property within their respective counties 72499
for taxation in accordance with this section and sections 5713.03 72500
and 5713.31 of the Revised Code and with such rules of the 72501
commissioner. There shall also be a board in each county, known as 72502
the county board of revision, which shall hear complaints and 72503
revise assessments of real property for taxation.72504

       (C) The commissioner shall neither adopt nor enforce any rule72505
that requires true value for any tax year to be any value other72506
than the true value in money on the tax lien date of such tax year 72507
or that requires taxable value to be obtained in any way other 72508
than by reducing the true value, or in the case of land valued in 72509
accordance with section 5713.31 of the Revised Code, its current 72510
agricultural use value, by a specified, uniform percentage.72511

       Sec. 5715.24.  (A) The tax commissioner, annually, shall72512
determine whether the real property and the various classes72513
thereof in the several counties, municipal corporations, and72514
taxing districts which have completed a sexennial reappraisal in72515
the current year and which will have the new taxable values placed 72516
on the tax list and duplicate have been assessed as required by 72517
law, and whether the values set forth in the agricultural land tax 72518
list in such taxing districts correctly reflect the true and 72519
agricultural use values of the lands contained therein. The 72520
determination shall be made prior to the first Monday in August 72521
unless the commissioner, for good cause, extends the date. If the 72522
commissioner finds that the real property or any class thereof in 72523
any such county, municipal corporation, or taxing district, as 72524
reported to it by the several county auditors of the counties that 72525
have completed such reappraisal is not listed for taxation or 72526
recorded on the agricultural land tax list in accordance 72527
therewith, hethe commissioner shall increase or decrease the 72528
appropriate aggregate value of the real property or any class 72529
thereof in any such county, township, municipal corporation, 72530
taxing district, or ward or division of a municipal corporation, 72531
by a per cent or amount that will cause such property to be 72532
correctly valued on the agricultural land tax list and to be 72533
correctly assessed on the tax list at its taxable value so that 72534
every class of real property shall be listed and valued for 72535
taxation and valued for purposes of sections 5713.33 to 5713.35 of 72536
the Revised Code as required by law. In determining whether a 72537
class of real property has been assessed at its correct taxable 72538
value and in determining any per cent or amount by which the 72539
aggregate value of the class from a prior year shall be increased 72540
or decreased to be correctly assessed, the commissioner shall 72541
consider only the aggregate values of property that existed in the 72542
prior year and that is to be taxed in the current year. In 72543
addition to any other adjustments the commissioner considers 72544
necessary to comply with this requirement, the value of new 72545
construction shall not be regarded as an increase in such 72546
aggregate value from the prior year, and the value of property 72547
destroyed or demolished since the prior year shall be deducted 72548
from the aggregate value of that class for the prior year.72549

       In implementing any increase or decrease in valuation of real 72550
property ordered by the commissioner pursuant to this section, the 72551
county auditor shall, when practicable, increase or decrease the 72552
taxable valuation of parcels in accordance with actual changes in 72553
valuation of real property which occur in different subdivisions, 72554
neighborhoods, or among classes of real property in the county.72555

       (B) Division (A) of this section also applies to a county in 72556
the third calendar year following the year in which a sexennial 72557
reappraisal is completed.72558

       Sec. 5719.041.  If the payment of a general personal property 72559
or classified property tax is not made on or before the last day 72560
prescribed by section 5719.03 or 5719.031 of the Revised Code, an 72561
interest charge shall begin to accrue and shall continue until all 72562
charges are paid, except that no interest charge shall accrue for 72563
or in the month in which such payment was due under such section 72564
or under the circumstances and for the period described in 72565
division (A)(2) of section 5711.33 of the Revised Code or upon 72566
delinquent taxes that are the subject of a delinquent tax contract 72567
entered into pursuant to section 5719.05 of the Revised Code.72568

       The interest charge shall accrue against the balance of such 72569
taxes and any penalty thereon outstanding that remains unpaid on 72570
the last day of each month and shall be at the rate per calendar 72571
month, rounded to the nearest one-hundredth of one per cent, equal 72572
to one-twelfth of the rate per annum prescribed byfederal 72573
short-term rate determined by the tax commissioner under section 72574
5703.47 of the Revised Code for the calendar year that includes 72575
the month for which the charge accrues. The charge is payable in 72576
addition to the unpaid balance of taxes and penalties on the day 72577
the charge accrues, unless the entire balance is sooner paid.72578

       If a delinquent tax contract becomes void, interest shall be 72579
charged on the day on which the contract becomes void in the 72580
amount that would have been charged had the delinquent tax 72581
contract not been entered into and shall thereafter accrue as 72582
provided in this section.72583

       Interest shall be allowed, at the same rate per calendar72584
month as is applicable that month for underpayments, on any72585
overpayment of the tax charged on a general personal property or a 72586
classified property tax duplicate, from the first day of the month 72587
following the date of the overpayment until the last day of the 72588
month preceding the date of the refund of the overpayment. The 72589
interest shall be paid from the fund or funds to which the72590
overpayment was credited.72591

       When the county treasurer makes the treasurer's annual72592
settlement with the county auditor under division (D) of section 72593
321.24 of the Revised Code, the treasurer shall certify to the 72594
auditor a list of all entries on the cumulative delinquent tax 72595
duplicate that are at that time in the process of being paid in 72596
installments under a valid delinquent tax contract. For each entry 72597
that appears on the duplicate that is not on the certified list, 72598
the auditor shall compute the full amount of interest charges 72599
which have accrued against such entry since the preceding such 72600
settlement was made and shall include such charges through the 72601
last day of the month preceding the current settlement. The 72602
auditor shall include such amounts on the tax list and duplicates 72603
prepared by the auditor as prescribed in section 5719.04 of the 72604
Revised Code unless the interest is less than one dollar, in which 72605
case it shall not be added to such tax lists and duplicates.72606

       Before the county treasurer accepts any payment of taxes72607
against which there are accrued interest charges that do not72608
appear on the delinquent tax duplicate, the treasurer shall notify 72609
the auditor who shall issue a certificate to the treasurer showing72610
the amount of such interest charges, and the treasurer shall72611
collect the amount shown on such certificate at the time of 72612
accepting payment of such taxes. If the amount of such interest 72613
charges is less than one dollar, no such certificate shall be 72614
issued. In the case of delinquent personal property taxes, the 72615
interest shown on such certificate shall be credited to the 72616
undivided general tax fund, and distributed in the same manner as 72617
the delinquent taxes upon which the interest charges accrued. In 72618
the case of delinquent classified property taxes, the interest 72619
shown on such certificate shall be credited to the county library 72620
and local government support fund and distributed in accordance 72621
with section 5747.48 of the Revised Code. When the payment of 72622
delinquent taxes is credited on the tax duplicate the treasurer 72623
shall make a separate notation thereon indicating the amount 72624
collected and the index number of the auditor's certificate herein 72625
prescribed.72626

       Sec. 5725.01.  As used in sections 5725.01 to 5725.26 of the 72627
Revised Code:72628

       (A) "Financial institution" means:72629

       (1) A national bank organized and existing as a national bank 72630
association pursuant to the "National Bank Act," 12 U.S.C. 21;72631

       (2) A federal savings association or federal savings bank 72632
that is chartered under 12 U.S.C. 1464;72633

       (3) A bank, banking association, trust company, savings and 72634
loan association, savings bank, or other banking institution that 72635
is incorporated or organized under the laws of any state;72636

       (4) Any corporation organized under 12 U.S.C. 611 to 631;72637

       (5) Any agency or branch of a foreign depository as defined 72638
in 12 U.S.C. 3101;72639

       (6) A company licensed as a small business investment company 72640
under the "Small Business Investment Act of 1958," 72 Stat. 689, 72641
15 U.S.C. 66l, as amended; or72642

       (7) A company chartered under the "Farm Credit Act of 1933," 72643
48 Stat. 257, 12 U.S.C. 1131(d), as amended.72644

       Corporations or institutions organized under the "Federal 72645
Farm Loan Act" and amendments thereto, insurance companies, and 72646
credit unions shall not be considered financial institutions or 72647
dealers in intangibles within the meaning of such sections.72648

       (B)(1) "Dealer in intangibles" includes every person who72649
keeps an office or other place of business in this state and72650
engages at such office or other place in thea business that 72651
consists primarily of lending money, or discounting, buying, or 72652
selling bills of exchange, drafts, acceptances, notes, mortgages, 72653
or other evidences of indebtedness, or of buying or selling bonds, 72654
stocks, or other investment securities, whether on the person's 72655
own account with a view to profit, or as agent or broker for 72656
others, with a view to profit or personal earnings. Dealer in 72657
intangibles excludes institutions used exclusively for charitable 72658
purposes, insurance companies, and financial institutions. Neither 72659
casual nor isolated transactions of any of the kinds enumerated in 72660
this division of this section, nor theThe investment of funds as 72661
personal accumulations or as business reserves or working capital 72662
does not constitute engaging in a business within the meaning of 72663
this division of this section; but a person who, having engaged in 72664
thea business that consists primarily of lending money, or 72665
discounting, buying, or selling bills of exchange, drafts, 72666
acceptances, notes, mortgages, or other evidences of indebtedness 72667
on the person's own account, remains in business primarily for the 72668
purpose of realizing upon the assets of suchthe business is 72669
deemed a dealer in intangibles, though not presently engaged in a 72670
business that consists primarily of lending money or discounting 72671
or buying such securities.72672

       (2) The tax commissioner shall adopt a rule defining 72673
"primarily" as that term is used in division (B)(1) of this 72674
section.72675

       (C) "Insurance company" includes every corporation,72676
association, and society engaged in the business of insurance of72677
any character, or engaged in the business of entering into72678
contracts substantially amounting to insurance of any character,72679
or of indemnifying or guaranteeing against loss or damage, or72680
acting as surety on bonds or undertakings. "Insurance company" 72681
also includes any health insuring corporation as defined in 72682
section 1751.01 of the Revised Code.72683

       (D) "Domestic insurance company" includes every insurance72684
company organized and existing under the laws of this state, and72685
every unincorporated association and society formed under the laws 72686
of this state for the purpose of engaging in said business, except 72687
a company, association, or society that is an insurance holding 72688
company affiliate controlled by a nonresident affiliate and has 72689
risks in this state formerly written by its foreign affiliates in 72690
a total amount exceeding the risks outstanding on the taxpayer's 72691
latest annual report that arise from business initially written by 72692
it in this state; and excludes every foreign insurance company. As 72693
used in this division, terms defined in section 3901.32 of the 72694
Revised Code have the same meanings given to them in that section.72695

       (E) "Foreign insurance company" includes every insurance72696
company organized or existing under the laws of any other state,72697
territory, country, or the United States and every insurance72698
holding company affiliate excepted under division (D) of this72699
section.72700

       Sec. 5725.19. (A) As used in this section, "tax otherwise 72701
due" means the tax imposed on a domestic insurance company under 72702
section 5725.18 of the Revised Code reduced by the total amount of 72703
all other nonrefundable credits, if any, that the domestic 72704
insurance company is entitled to claim.72705

       (B) Upon the issuance of a tax credit certificate by the Ohio72706
venture capital authority under section 150.07 of the Revised 72707
Code, a credit may be claimed against the tax imposed on a 72708
domestic insurance company under section 5725.18 of the Revised 72709
Code. The credit shall be claimed in the calendar year specified 72710
in the certificate issued by the authority.72711

       (C) If the company elected a refundable credit under section 72712
150.07 of the Revised Code and if the amount of the credit shown 72713
on the certificate does not exceed the tax otherwise due, then for 72714
the calendar year the company shall claim a refundable credit 72715
equal to the amount of the credit shown on the certificate.72716

       (D) If the company elected a refundable credit under section 72717
150.07 of the Revised Code, and the amount of the credit shown on 72718
the certificate exceeds the tax otherwise due under section 72719
5725.18 of the Revised Code, then for the calendar year the 72720
company may receive a refund equal to seventy-five per cent of 72721
such excess. Ifshall claim a refundable credit equal to the sum 72722
of the following:72723

        (1) The amount, if any, of the tax otherwise due;72724

        (2) Seventy-five per cent of the difference between the 72725
amount of the refundable credit shown on the certificate and the 72726
tax otherwise due.72727

       (E) If the company elected a nonrefundable credit, the amount 72728
of the credit shown on the certificate shall not exceed the amount 72729
of tax otherwise due. If the company elected a nonrefundable 72730
credit and the credit to which the company would otherwise be 72731
entitled under this section for any calendar year is greater than 72732
the tax otherwise due under section 5725.18 of the Revised Code, 72733
the excess shall be allowed as a nonrefundable credit in each of 72734
the ensuing ten calendar years, but the amount of any excess 72735
credit allowed in the ensuing calendar year shall be deducted from 72736
the balance carried forward to the next calendar year.72737

       Sec. 5725.32.  Upon the issuance of a tax credit certificate 72738
by the director of development, a refundable credit granted by the 72739
tax credit authority under section 122.17 of the Revised Code may 72740
be claimed against the tax imposed by section 5725.18 of the 72741
Revised Code. The credit shall be claimed in the calendar year 72742
specified in the certificate issued by the director of 72743
development.72744

       Sec. 5727.01.  As used in this chapter:72745

       (A) "Public utility" means each person referred to as a72746
telephone company, telegraph company, electric company, natural72747
gas company, pipe-line company, water-works company, water72748
transportation company, heating company, rural electric company,72749
railroad company, or combined company.72750

       (B) "Gross receipts" means the entire receipts for business72751
done by any person from operations as a public utility, or72752
incidental thereto, or in connection therewith, including any72753
receipts received under Chapter 4928. of the Revised Code. The72754
gross receipts for business done by an incorporated company72755
engaged in operation as a public utility includes the entire72756
receipts for business done by such company under the exercise of72757
its corporate powers, whether from the operation as a public72758
utility or from any other business.72759

       (C) "Rural electric company" means any nonprofit corporation,72760
organization, association, or cooperative engaged in the business72761
of supplying electricity to its members or persons owning an72762
interest therein in an area the major portion of which is rural.72763

       (D) Any person:72764

       (1) Is a telegraph company when engaged in the business of72765
transmitting telegraphic messages to, from, through, or in this72766
state;72767

       (2) Is a telephone company when primarily engaged in the72768
business of providing local exchange telephone service, excluding72769
cellular radio service, in this state;72770

       (3) Is an electric company when engaged in the business of72771
generating, transmitting, or distributing electricity within this72772
state for use by others, but excludes a rural electric company;72773

       (4) Is a natural gas company when engaged in the business of72774
supplying or distributing natural gas for lighting, power, or72775
heating purposes to consumers within this state, excluding a72776
person that is a governmental aggregator or retail natural gas72777
supplier as defined in section 4929.01 of the Revised Code;72778

       (5) Is a pipe-line company when engaged in the business of72779
transporting natural gas, oil, or coal or its derivatives through72780
pipes or tubing, either wholly or partially within this state;72781

       (6) Is a water-works company when engaged in the business of72782
supplying water through pipes or tubing, or in a similar manner,72783
to consumers within this state;72784

       (7) Is a water transportation company when engaged in the72785
transportation of passengers or property, by boat or other72786
watercraft, over any waterway, whether natural or artificial, from72787
one point within this state to another point within this state, or72788
between points within this state and points without this state;72789

       (8) Is a heating company when engaged in the business of72790
supplying water, steam, or air through pipes or tubing to72791
consumers within this state for heating purposes;72792

       (9) Is a railroad company when engaged in the business of72793
owning or operating a railroad either wholly or partially within72794
this state on rights-of-way acquired and held exclusively by such72795
company, or otherwise, and includes a passenger, street, suburban,72796
or interurban railroad company.72797

       As used in division (D)(2) of this section, "local exchange72798
telephone service" means making available or furnishing access and72799
a dial tone to all persons within a local calling area for use in72800
originating and receiving voice grade communications over a72801
switched network operated by the provider of the service within72802
the area and for gaining access to other telecommunication72803
services.72804

       (E) "Taxable property" means the property required by section72805
5727.06 of the Revised Code to be assessed by the tax72806
commissioner, but does not include either of the following:72807

       (1) An item of tangible personal property that for the period 72808
subsequent to the effective date of an air, water, or noise72809
pollution control certificate and continuing so long as the72810
certificate is in force, has been certified as part of the72811
pollution control facility with respect to which the certificate72812
has been issued;72813

       (2) An item of tangible personal property that during the72814
construction of a plant or facility and until the item is first72815
capable of operation, whether actually used in operation or not,72816
is incorporated in or being held exclusively for incorporation in72817
that plant or facility.72818

       Notwithstanding section 5701.03 of the Revised Code, for tax 72819
year 2006 and thereafter, "taxable property" includes patterns, 72820
jigs, dies, and drawings of an electric company or a combined 72821
company for use in the activity of an electric company.72822

       (F) "Taxing district" means a municipal corporation of72823
township, or part thereof, in which the aggregate rate of taxation72824
is uniform.72825

       (G) "Telecommunications service" has the same meaning as in72826
division (AA) of section 5739.01 of the Revised Code.72827

       (H) "Interexchange telecommunications company" means a person72828
that is engaged in the business of transmitting telephonic72829
messages to, from, through, or in this state, but that is not a72830
telephone company.72831

       (I) "Sale and leaseback transaction" means a transaction in72832
which a public utility or interexchange telecommunications company72833
sells any tangible personal property to a person other than a72834
public utility or interexchange telecommunications company and72835
leases that property back from the buyer.72836

       (J) "Production equipment" means all taxable steam, nuclear,72837
hydraulic, and other production plant equipment used to generate72838
electricity. For tax years prior to 2001, "production equipment"72839
includes taxable station equipment that is located at a production72840
plant.72841

       (K) "Tax year" means the year for which property or gross72842
receipts are subject to assessment under this chapter. This72843
division does not limit the tax commissioner's ability to assess72844
and value property or gross receipts outside the tax year.72845

       (L) "Combined company" means any person engaged in the72846
activity of an electric company or rural electric company that is72847
also engaged in the activity of a heating company or a natural gas72848
company, or any combination thereof.72849

       (M) "Public utility property lessor" means any person, other 72850
than a public utility or an interexchange telecommunications 72851
company, that leases personal property, other than in a sale and 72852
leaseback transaction, to a public utility, other than a railroad, 72853
water transportation, telephone, or telegraph company if the 72854
property would be taxable property if owned by the public utility. 72855
A public utility property lessor is subject to this chapter only 72856
for the purposes of reporting and paying tax on taxable property 72857
it leases to a public utility other than a telephone or telegraph 72858
company. A public utility property lessor that leases property to 72859
a public utility other than a telephone or telegraph company is 72860
not a public utility, but it shall report its property and be 72861
assessed in the same manner as the utility to which it leases the 72862
property.72863

       Sec. 5727.02.  As used in this chapter, "public utility,"72864
"electric company," "natural gas company," "pipe-line company,"72865
"water-works company," "water transportation company" or "heating72866
company" does not include any of the following:72867

       (A) Any(1) Except as provided in division (A)(2) of this 72868
section, any person that is engaged in some other primary business 72869
to which the supplying of electricity, heat, natural gas, water, 72870
water transportation, steam, or air to others is incidental. As 72871
used in this division (A) of this section and in section 5727.031 72872
of the Revised Code, "supplying of electricity" means generating, 72873
transmitting, or distributing electricity.72874

       (2) For tax year 2009 and each tax year thereafter, a person 72875
that is engaged in some other primary business to which the 72876
supplying of electricity to others is incidental shall be treated 72877
as an "electric company" and a "public utility" for purposes of 72878
this chapter solely to the extent required by section 5727.031 of 72879
the Revised Code.72880

       (B) Any person that supplies electricity, natural gas, water, 72881
water transportation, steam, or air to its tenants, whether for a 72882
separate charge or otherwise;72883

       (C) Any person whose primary business in this state consists72884
of producing, refining, or marketing petroleum or its products.72885

       (D) Any person whose primary business in this state consists72886
of producing or gathering natural gas rather than supplying or72887
distributing natural gas to consumers.72888

       Sec. 5727.031.  (A) For tax year 2009 and each tax year 72889
thereafter, a person that is engaged in some other primary 72890
business to which the supplying of electricity to others is 72891
incidental shall file a report under section 5727.08 of the 72892
Revised Code as an electric company but shall only report therein 72893
as taxable property the amounts required in divisions (B) and (C) 72894
of this section. All time limits and other procedural requirements 72895
of this chapter for the reporting and assessment of property of 72896
electric companies apply to persons required to file a report 72897
under this section.72898

       (B) A person subject to this section shall report the true 72899
value of the boilers, machinery, equipment, and any personal 72900
property used to supply electricity to others, which shall be the 72901
sum of the following:72902

       (1) The true value of the property that is production 72903
equipment as it would be determined for an electric company under 72904
section 5727.11 of the Revised Code multiplied by the per cent of 72905
the electricity generated in the preceding calendar year that was 72906
not used by the person who generated it; plus72907

       (2) The true value of the property that is not production 72908
equipment as it would be determined for an electric company under 72909
section 5727.11 of the Revised Code multiplied by the per cent of 72910
the electricity generated in the preceding calendar year that was 72911
not used by the person who generated it.72912

       (C) The property reported under division (B) of this section 72913
shall be listed and assessed at an amount equal to the sum of the 72914
products determined under divisions (C)(1) and (2) of this 72915
section.72916

       (1) Multiply the portion of the true value determined under 72917
division (B)(1) of this section by the assessment rate in section 72918
5727.111 of the Revised Code that is applicable to the production 72919
equipment of an electric company;72920

       (2) Multiply the portion of the true value determined under 72921
division (B)(2) of this section by the assessment rate in section 72922
5727.111 of the Revised Code that is applicable to the property of 72923
an electric company that is not production equipment.72924

       Sec. 5727.06.  (A) Except as otherwise provided by law, the 72925
following constitutes the taxable property of a public utility or,72926
interexchange telecommunications company, or public utility 72927
property lessor that shall be assessed by the tax commissioner:72928

       (1) For tax years before tax year 2006:72929

       (a) In the case of a railroad company, all real property and 72930
tangible personal property owned or operated by the railroad72931
company in this state on the thirty-first day of December of the72932
preceding year;72933

       (2)(b) In the case of a water transportation company, all 72934
tangible personal property, except watercraft, owned or operated 72935
by the water transportation company in this state on the 72936
thirty-first day of December of the preceding year and all 72937
watercraft owned or operated by the water transportation company72938
in this state during the preceding calendar year;72939

       (3)(c) In the case of all other public utilities and72940
interexchange telecommunications companies, all tangible personal72941
property that on the thirty-first day of December of the preceding 72942
year was both located in this state and:72943

       (a)(i) Owned by the public utility or interexchange72944
telecommunications company; or72945

       (b)(ii) Leased by the public utility or interexchange72946
telecommunications company under a sale and leaseback transaction.72947

       (2) For tax years 2006, 2007, and 2008:72948

       (a) In the case of a railroad company, all real property used 72949
in railroad operations and tangible personal property owned or 72950
operated by the railroad company in this state on the thirty-first 72951
day of December of the preceding year;72952

       (b) In the case of a water transportation company, all 72953
tangible personal property, except watercraft, owned or operated 72954
by the water transportation company in this state on the 72955
thirty-first day of December of the preceding year and all 72956
watercraft owned or operated by the water transportation company 72957
in this state during the preceding calendar year;72958

       (c) In the case of all other public utilities except 72959
telephone and telegraph companies, all tangible personal property 72960
that on the thirty-first day of December of the preceding year was 72961
both located in this state and either owned by the public utility 72962
or leased by the public utility under a sale and leaseback 72963
transaction.72964

       (3) For tax year 2009 and each tax year thereafter:72965

       (a) In the case of a railroad company, all real property used 72966
in railroad operations and tangible personal property owned or 72967
operated by the railroad company in this state on the thirty-first 72968
day of December of the preceding year;72969

       (b) In the case of a water transportation company, all 72970
tangible personal property, except watercraft, owned or operated 72971
by the water transportation company in this state on the 72972
thirty-first day of December of the preceding year and all 72973
watercraft owned or operated by the water transportation company 72974
in this state during the preceding calendar year;72975

       (c) In the case of all other public utilities except 72976
telephone and telegraph companies, all tangible personal property 72977
that on the thirty-first day of December of the preceding year was 72978
both located in this state and either owned by the public utility 72979
or leased by the public utility under a sale and leaseback 72980
transaction;72981

       (d) In the case of a public utility property lessor, all 72982
personal property that on the thirty-first day of December of the 72983
preceding year was both located in this state and leased, in other 72984
than a sale and leaseback transaction, to an interexchange 72985
telecommunications company or a public utility other than a 72986
railroad company or water transportation company. The assessment 72987
rate used under section 5727.111 of the Revised Code shall be 72988
based on the assessment rate that would apply if the interexchange 72989
telecommunications company or public utility owned the property.72990

       (4) For tax years 2005 and 2006, in the case of telephone, 72991
telegraph, or interexchange telecommunications companies, all 72992
tangible personal property that on the thirty-first day of 72993
December of the preceding year was both located in this state and 72994
either owned by the telephone, telegraph, or interexchange 72995
telecommunications company or leased by the telephone, telegraph, 72996
or interexchange telecommunications company under a sale and 72997
leaseback transaction.72998

       (5) For tax year 2007 and thereafter, in the case of 72999
telephone, telegraph, or interexchange telecommunications 73000
companies, all tangible personal property shall be listed and 73001
assessed for taxation under Chapter 5711. of the Revised Code.73002

       (B) InThis division applies to tax years before tax year 73003
2007.73004

       In the case of an interexchange telecommunications company, 73005
all taxable property shall be subject to the provisions of this 73006
chapter and shall be valued by the commissioner in accordance with 73007
division (A) of section 5727.11 of the Revised Code. A person73008
described by this division shall file the report required by 73009
section 5727.08 of the Revised Code. Persons described in this 73010
division shall not be considered taxpayers, as defined in division 73011
(B) of section 5711.01 of the Revised Code, and shall not be 73012
required to file a return and list their taxable property under 73013
any provision of Chapter 5711. of the Revised Code.73014

       (C) The lien of the state for taxes levied each year on the 73015
real and personal property of public utilities and interexchange 73016
telecommunications companies and on the personal property of 73017
public utility property lessors shall attach thereto on the 73018
thirty-first day of December of the preceding year.73019

       (D) Property that is required by division (A)(3)(b) of this 73020
section to be assessed by the tax commissioner under this chapter 73021
shall not be listed by the owner of the property under Chapter 73022
5711. of the Revised Code.73023

       (E) The tax commissioner may adopt rules governing the73024
listing of the taxable property of public utilities and73025
interexchange telecommunications companies and the determination73026
of true value.73027

       Sec. 5727.08.  On or before the first day of March, annually, 73028
each public utility and interexchange telecommunications company, 73029
and, for tax years 2009 and thereafter, each public utility 73030
property lessor, shall file a report with the tax commissioner, on 73031
a form prescribed by the tax commissioner. The report shall 73032
include such information as the tax commissioner requires to 73033
enable the tax commissioner to make any assessment or 73034
apportionment required under this chapter.73035

       The report shall be signed by either the owner of the public 73036
utility, interexchange telecommunications company, or public 73037
utility property lessor or the president, secretary, treasurer, or 73038
another duly authorized person.73039

       If such a public utility, interexchange telecommunications 73040
company, or lessor fails to file the report on or before the first 73041
day of March, or the date it is due under an extension allowed 73042
pursuant to section 5727.48 of the Revised Code, or fails to 73043
accurately report all taxable property, the tax commissioner may 73044
impose a penalty of up to fifty per cent of the taxable value of73045
the property that was not timely or accurately reported. However, 73046
if thesuch a public utility, company, or lessor files, within 73047
sixty days after the first day of March or the extended due date, 73048
the report or an amended report and discloses all items of taxable 73049
property that are required by this chapter to be reported, the 73050
penalty shall not be more than five per cent of the taxable value73051
that was not timely or accurately reported. The penalty shall be 73052
added to and considered a part of the total taxable value of the 73053
property that was not timely or accurately reported, and may be73054
abated in whole or in part by the tax commissioner pursuant to a 73055
petition for reassessment filed under section 5727.47 of the 73056
Revised Code.73057

       Sec. 5727.10.  Annually, the tax commissioner shall73058
determine, in accordance with section 5727.11 of the Revised Code, 73059
the true value in money of all taxable property, except property 73060
of a railroad company, required by division (A)(2) or (3) of73061
section 5727.06 of the Revised Code to be assessed by the 73062
commissioner. The commissioner also shall determine the total 73063
taxable value of such property based on the percentages of true 73064
value at which the property is required to be assessed by section 73065
5727.111 of the Revised Code.73066

       The commissioner shall be guided by the information contained 73067
in the report filed by the public utility and such other evidence 73068
and rules as will enable himthe commissioner to make these73069
determinations.73070

       Before issuing the preliminary assessment under section73071
5727.23 of the Revised Code, the commissioner shall notify each73072
public utility of the proposed total taxable value of its taxable73073
property, including any proposed penalty. After receiving such73074
notice, a public utility may, upon written application, within the 73075
time prescribed by the commissioner, appear before himthe73076
commissioner and be heard in the matter of the proposal. The 73077
commissioner may, on the application of a public utility, or on 73078
histhe commissioner's own motion, correct the proposal.73079

       Sec. 5727.11.  (A) Except as otherwise provided in this73080
section, the true value of all taxable property, except property 73081
of a railroad company, required by division (A)(2) or (3) of73082
section 5727.06 of the Revised Code to be assessed by the tax 73083
commissioner shall be determined by a method of valuation using 73084
cost as capitalized on the public utility's books and records less 73085
composite annual allowances as prescribed by the commissioner. If 73086
the commissioner finds that application of this method will not 73087
result in the determination of true value of the public utility's 73088
taxable property, the commissioner may use another method of 73089
valuation.73090

       (B)(1) Except as provided in division (B)(2) of this section, 73091
the true value of current gas stored underground is the cost of 73092
that gas shown on the books and records of the public utility on 73093
the thirty-first day of December of the preceding year.73094

       (2) For tax year 2001 and thereafter, the true value of73095
current gas stored underground is the quotient obtained by73096
dividing (a) the average value of the current gas stored73097
underground, which shall be determined by adding the value of the73098
gas on hand at the end of each calendar month in the calendar year73099
preceding the tax year, or, if applicable, the last day of73100
business of each month for a partial month, divided by (b) the73101
total number of months the natural gas company was in business73102
during the calendar year prior to the beginning of the tax year.73103
with the approval of the tax commissioner, a natural gas company73104
may use a date other than the end of a calendar month to value its73105
current gas stored underground.73106

       (C) The true value of noncurrent gas stored underground is73107
thirty-five per cent of the cost of that gas shown on the books73108
and records of the public utility on the thirty-first day of73109
December of the preceding year.73110

       (D)(1) Except as provided in division (D)(2) of this section, 73111
the true value of the production equipment of an electric company 73112
and the true value of all taxable property of a rural electric 73113
company is the equipment's or property's cost as capitalized on 73114
the company's books and records less fifty per cent of that cost 73115
as an allowance for depreciation and obsolescence.73116

       (2) The true value of the production equipment of an electric 73117
company or rural electric company purchased, transferred, or 73118
placed into service after the effective date of this amendment is 73119
the purchase price of the equipment as capitalized on the73120
company's books and records less composite annual allowances as73121
prescribed by the tax commissioner.73122

       (E) The true value of taxable property described in division73123
(A)(2) or (3) of, except property of a railroad company, required 73124
by section 5727.06 of the Revised Code to be assessed by the tax 73125
commissioner shall not include the allowance for funds used during 73126
construction or interest during construction that has been 73127
capitalized on the public utility's books and records as part of 73128
the total cost of the taxable property. This division shall not 73129
apply to the taxable property of an electric company or a rural 73130
electric company, excluding transmission and distribution 73131
property, first placed into service after December 31, 2000, or to 73132
the taxable property a person purchases, which includes transfers, 73133
if that property was used in business by the seller prior to the 73134
purchase.73135

       (F) The true value of watercraft owned or operated by a water 73136
transportation company shall be determined by multiplying the true 73137
value of the watercraft as determined under division (A) of this 73138
section by a fraction, the numerator of which is the number of 73139
revenue-earning miles traveled by the watercraft in the waters of 73140
this state and the denominator of which is the number of73141
revenue-earning miles traveled by the watercraft in all waters.73142

       (G) The cost of property subject to a sale and leaseback73143
transaction is the cost of the property as capitalized on the73144
books and records of the public utility owning the property73145
immediately prior to the sale and leaseback transaction.73146

       (H) The cost as capitalized on the books and records of a73147
public utility includes amounts capitalized that represent73148
regulatory assets, if such amounts previously were included on the73149
company's books and records as capitalized costs of taxable73150
personal property.73151

       (I) Any change in the composite annual allowances as73152
prescribed by the commissioner on a prospective basis shall not be73153
admissible in any judicial or administrative action or proceeding73154
as evidence of value with regard to prior years' taxes.73155
Information about the business, property, or transactions of any73156
taxpayer obtained by the commissioner for the purpose of adopting73157
or modifying the composite annual allowances shall not be subject73158
to discovery or disclosure.73159

       Sec. 5727.111.  The taxable property of each public utility,73160
except a railroad company, and of each interexchange73161
telecommunications company shall be assessed at the following73162
percentages of true value:73163

       (A)(1) Except as provided in division (A)(2) of this section, 73164
fifty per cent in the case of a rural electric company;73165

       (2) For tax year 2001 and thereafter, fiftyFifty per cent in 73166
the case of the taxable transmission and distribution property of 73167
a rural electric company, and twenty-five per cent for all its 73168
other taxable property;73169

       (B) In the case of a telephone or telegraph company,73170
twenty-five per cent for taxable property first subject to73171
taxation in this state for tax year 1995 or thereafter for tax 73172
years before tax year 2007, and pursuant to division (H) of 73173
section 5711.22 of the Revised Code for tax year 2007 and 73174
thereafter, and the following for all other taxable property:73175

       (1) For tax years prior to 2005, eighty-eight per cent;73176

       (2) For tax year 2005, sixty-seven per cent;73177

       (3) For tax year 2006, forty-six per cent;73178

       (4) For tax year 2007 and thereafter, twenty-five per cent73179
pursuant to division (H) of section 5711.22 of the Revised Code.73180

       (C) Twenty-five per cent in the case of a natural gas 73181
company.73182

       (D) Eighty-eight per cent in the case of a pipe-line,73183
water-works, or heating company;73184

       (E)(1) Except as provided in division (E)(2) or (3) of this73185
section, one hundred per cent in the case of the taxable73186
production equipment of an electric company and eighty-eight per73187
cent for all its other taxable property;73188

       (2) For tax year 2001 and thereafter2005, eighty-eight per 73189
cent in the case of the taxable transmission and distribution 73190
property of an electric company, and twenty-five per cent for all 73191
its other taxable property;73192

       (3) Property listed and assessed under divisions (B)(1) and73193
(2) of section 5711.22 of the Revised Code and leased to an73194
electric company shall continue to be assessed at one hundred per73195
cent for production equipment and eighty-eight(2) For tax year 73196
2006 and each tax year thereafter, eighty-five per cent in the 73197
case of the taxable transmission and distribution property of an 73198
electric company, and twenty-four per cent for all suchits other 73199
taxable property until January 1, 2002.73200

       (F)(1) Twenty-five per cent in the case of an interexchange73201
telecommunications company for tax years before tax year 2007;73202

       (2) Pursuant to division (H) of section 5711.22 of the 73203
Revised Code for tax year 2007 and thereafter.73204

       (G) Twenty-five per cent in the case of a water73205
transportation company.73206

       Sec. 5727.12.  As used in this chapter, "property used in73207
railroad operations" means property used in or determined by the73208
tax commissioner to be held by a railroad for use in railroad73209
operations. In determining the true value of all real and personal 73210
property owned or leased by each railroad company and used in 73211
railroad operations, the commissioner shall use the unitary method 73212
and value all of the property of the company's railroad system as 73213
a whole, considering the factors generally used in that method, 73214
and weighing each factor appropriately. The true value of the 73215
property used in railroad operations shall be apportioned to this 73216
state as provided in section 5727.14 of the Revised Code. The 73217
commissioner shall separately determine the trueFor tax year 2006 73218
and each tax year thereafter, the county auditor shall value of73219
and assess the real property owned by the company that the73220
commissioner determines is not used in railroad operations. The 73221
commissioner may require the advice of county auditors concerning 73222
such values.73223

       All property of a railroad shall be assessed for taxation at 73224
the same percentage of true value at which all other real property 73225
in this state is assessed, in the case of real property, and at 73226
the percentage of true value provided under divisions (E) and,73227
(F), and (G) of section 5711.22 of the Revised Code, in the case 73228
of personal property.73229

       A determination of the value of each tract, lot, or parcel of 73230
real property or each item of personal property not used in73231
railroad operations shall be considered a separate determination73232
with respect to which a separate petition for reassessment may be73233
filed under section 5727.47 of the Revised Code.73234

       Where a line of railroad is subsidized under the terms of the 73235
federal regional rail reorganization act or the federal rail73236
revitalization and regulatory reform act, the real and other fixed 73237
property shall be assessed solely in the name of its owner.73238

       Sec. 5727.23.  On or before the first Monday in October,73239
annually, the tax commissioner shall assess the taxable property73240
of each public utility. Theand interexchange telecommunications 73241
company, and for tax year 2009 and thereafter of each public 73242
utility property lessor. If the taxpayer failed to file its annual 73243
report required by section 5727.08 of the Revised Code at least 73244
sixty days prior to the first Monday of October, the commissioner 73245
may make the assessment under this section within sixty days after 73246
the taxpayer files the report, but this does not preclude the 73247
commissioner from making an assessment without receiving the 73248
report.73249

        The action of the tax commissioner shall be evidenced by a73250
preliminary assessment that reflects the taxable value apportioned 73251
to each county and each taxing district in the county. The 73252
commissioner may amend the preliminary assessment as provided in 73253
this section. Each preliminary assessment and amended preliminary 73254
assessment shall be certified to the public utility, interexchange 73255
telecommunications company, or public utility property lessor, and 73256
to, the auditor of each county to which taxable value has been 73257
apportioned.73258

       The county auditor shall place the apportioned taxable value 73259
on the general tax list and duplicate of real and public utility 73260
property, and taxes shall be levied and collected thereon at the 73261
same rates and in the same manner as taxes are levied and73262
collected on real property in the taxing district in question.73263

       Unless a petition for reassessment of an assessment has been 73264
properly filed pursuant to section 5727.47 of the Revised Code, 73265
each preliminary assessment and, if amended, each preliminary 73266
assessment as last amended shall become final ninety days after 73267
certification of the preliminary assessment or thirty days after 73268
certification of the amended preliminary assessment, whichever is 73269
later. If a petition for reassessment is properly filed, the 73270
assessment shall become final when the tax commissioner issues a 73271
final determination.73272

       Neither the certification of any preliminary or amended73273
assessment nor the expiration of the period of time that makes any 73274
assessment final constitutes a final determination, assessment, 73275
reassessment, valuation, finding, computation, or order of the 73276
commissioner that is appealable under section 5717.02 of the 73277
Revised Code.73278

       Sec. 5727.241.  (A) As used in this section:73279

        (1) "Tax otherwise due" means the tax imposed on a taxpayer 73280
under section 5727.24 of the Revised Code reduced by the total 73281
amount of all other nonrefundable credits, if any, that the 73282
taxpayer is entitled to claim.73283

        (2) "Taxpayer" means any person subject to the tax imposed by 73284
section 5727.24 of the Revised Code.73285

        (B) Upon the issuance of a tax credit certificate by the Ohio 73286
venture capital authority under section 150.07 of the Revised 73287
Code, a credit may be claimed against the tax imposed on a 73288
taxpayer under section 5727.24 of the Revised Code. The credit 73289
shall be claimed on a return due under section 5727.25 of the 73290
Revised Code after the certificate is issued by the authority.73291

        (C) If the taxpayer elected a refundable credit under section 73292
150.07 of the Revised Code and if the amount of the credit shown 73293
on the certificate does not exceed the tax otherwise due, then for 73294
the calendar year the taxpayer shall claim a refundable credit 73295
equal to the amount of the credit shown on the certificate.73296

        (D) If the taxpayer elected a refundable credit under section 73297
150.07 of the Revised Code, and if the amount of the refundable 73298
credit shown on the certificate exceeds the tax otherwise due, 73299
then for the calendar year the taxpayer shall claim a refundable 73300
credit equal to the sum of the following:73301

       (1) The amount, if any, of the tax otherwise due;73302

       (2) Seventy-five per cent of the difference between the 73303
amount of the refundable credit shown on the certificate and the 73304
tax otherwise due.73305

        (E) If the taxpayer elected a nonrefundable credit under 73306
section 150.07 of the Revised Code and if the nonrefundable credit 73307
to which the taxpayer would otherwise be entitled under this 73308
section for any calendar year is greater than the tax otherwise 73309
due, the excess shall be allowed as a nonrefundable credit in each 73310
of the ensuing ten calendar years, but the amount of any excess 73311
nonrefundable credit allowed in the ensuing calendar year shall be 73312
deducted from the balance carried forward to the next calendar 73313
year.73314

       Sec. 5727.84.  (A) As used in this section and sections73315
5727.85, 5727.86, and 5727.87 of the Revised Code:73316

       (1) "School district" means a city, local, or exempted73317
village school district.73318

       (2) "Joint vocational school district" means a joint73319
vocational school district created under section 3311.16 of the73320
Revised Code, and includes a cooperative education school district73321
created under section 3311.52 or 3311.521 of the Revised Code and73322
a county school financing district created under section 3311.5073323
of the Revised Code.73324

       (3) "Local taxing unit" means a subdivision or taxing unit,73325
as defined in section 5705.01 of the Revised Code, a park district73326
created under Chapter 1545. of the Revised Code, or a township73327
park district established under section 511.23 of the Revised73328
Code, but excludes school districts and joint vocational school73329
districts.73330

       (4) "State education aid" means the sum of state aid amounts 73331
computed for a school district or joint vocational school district73332
under Chapter 3317. of the Revised Code.73333

       (5) "State education aid offset" means the amount determined73334
for each school district or joint vocational school district under73335
division (A)(1) of section 5727.85 of the Revised Code.73336

       (6) "Recognized valuation" has the same meaning as in section73337
3317.02 of the Revised Code.73338

       (7) "Electric company tax value loss" means the amount73339
determined under division (D) of this section.73340

       (8) "Natural gas company tax value loss" means the amount73341
determined under division (E) of this section.73342

       (9) "Tax value loss" means the sum of the electric company73343
tax value loss and the natural gas company tax value loss.73344

       (10) "Fixed-rate levy" means any tax levied on property other73345
than a fixed-sum levy.73346

       (11) "Fixed-rate levy loss" means the amount determined under73347
division (G) of this section.73348

       (12) "Fixed-sum levy" means a tax levied on property at73349
whatever rate is required to produce a specified amount of tax73350
money or levied in excess of the ten-mill limitation to pay debt73351
charges, and includes school district emergency levies imposed73352
pursuant to section 5705.194 of the Revised Code.73353

       (13) "Fixed-sum levy loss" means the amount determined under73354
division (H) of this section.73355

       (14) "Consumer price index" means the consumer price index73356
(all items, all urban consumers) prepared by the bureau of labor73357
statistics of the United States department of labor.73358

       (B) The kilowatt-hour tax receipts fund is hereby created in73359
the state treasury and shall consist of money arising from the tax73360
imposed by section 5727.81 of the Revised Code. All money in the73361
kilowatt-hour tax receipts fund shall be credited as follows:73362

       (1) Fifty-nine and nine hundred seventy-six one-thousandths73363
per cent, shall be credited to the general revenue fund.73364

       (2) Two and six hundred forty-six one-thousandths per cent73365
shall be credited to the local government fund, for distribution73366
in accordance with section 5747.50 of the Revised Code.73367

       (3) Three hundred seventy-eight one-thousandths per cent73368
shall be credited to the local government revenue assistance fund,73369
for distribution in accordance with section 5747.61 of the Revised73370
Code.73371

       (4) Twenty-five and four-tenths per cent shall be credited to 73372
the school district property tax replacement fund, which is hereby 73373
created in the state treasury for the purpose of making the73374
payments described in section 5727.85 of the Revised Code.73375

       (5) Eleven and six-tenths per cent shall be credited to the73376
local government property tax replacement fund, which is hereby73377
created in the state treasury for the purpose of making the73378
payments described in section 5727.86 of the Revised Code.73379

       (6) In fiscal years 2002, 2003, 2004, 2005, and 2006, if the73380
revenue arising from the tax levied by section 5727.81 of the73381
Revised Code is less than five hundred fifty-two million dollars,73382
the amount credited to the general revenue fund under division73383
(B)(1) of this section shall be reduced by the amount necessary to73384
credit to each of the funds in divisions (B)(2) and (3) of this73385
section the amount it would have received if the tax did raise73386
five hundred fifty-two million dollars for that fiscal year. The73387
tax commissioner shall certify to the director of budget and73388
management the amounts that shall be credited under this division.73389

       (7) Beginning in fiscal year 2007, if the revenue arising73390
from the tax levied by section 5727.81 of the Revised Code is less73391
than five hundred fifty-two million dollars, the amount credited73392
to the general revenue fund under division (B)(1) of this section73393
shall be reduced by the amount necessary to credit to each of the73394
funds in divisions (B)(2), (3), (4), and (5) of this section the73395
amount that it would have received if the tax did raise five 73396
hundred fifty-two million dollars for that fiscal year. The tax73397
commissioner shall certify to the director of budget and73398
management the amounts to be credited under division (B)(7) of73399
this section.73400

       (C) The natural gas tax receipts fund is hereby created in73401
the state treasury and shall consist of money arising from the tax73402
imposed by section 5727.811 of the Revised Code. All money in the73403
fund shall be credited as follows:73404

       (1) Sixty-eight and seven-tenths per cent shall be credited73405
to the school district property tax replacement fund for the73406
purpose of making the payments described in section 5727.85 of the73407
Revised Code.73408

       (2) Thirty-one and three-tenths per cent shall be credited to 73409
the local government property tax replacement fund for the purpose 73410
of making the payments described in section 5727.86 of the Revised 73411
Code.73412

       (3) Beginning in fiscal year 2007, if the revenue arising73413
from the tax levied by section 5727.811 of the Revised Code is73414
less than ninety million dollars, an amount equal to the73415
difference between the amount collected and ninety million dollars73416
shall be transferred from the general revenue fund to each of the73417
funds in divisions (C)(1) and (2) of this section in the same73418
percentages as if that amount had been collected as taxes under73419
section 5727.811 of the Revised Code. The tax commissioner shall73420
certify to the director of budget and management the amounts that73421
shall be transferred under this division.73422

       (D) Not later than January 1, 2002, the tax commissioner73423
shall determine for each taxing district its electric company tax73424
value loss, which is the sum of the applicable amounts described 73425
in divisions (D)(1) to (3) of this section:73426

       (1) The difference obtained by subtracting the amount73427
described in division (D)(1)(b) from the amount described in73428
division (D)(1)(a) of this section.73429

       (a) The value of electric company and rural electric company73430
tangible personal property as assessed by the tax commissioner for73431
tax year 1998 on a preliminary assessment, or an amended73432
preliminary assessment if issued prior to March 1, 1999, and as73433
apportioned to the taxing district for tax year 1998;73434

       (b) The value of electric company and rural electric company73435
tangible personal property as assessed by the tax commissioner for73436
tax year 1998 had the property been apportioned to the taxing73437
district for tax year 2001, and assessed at the rates in effect73438
for tax year 2001.73439

       (2) The difference obtained by subtracting the amount73440
described in division (D)(2)(b) from the amount described in73441
division (D)(2)(a) of this section.73442

       (a) The three-year average for tax years 1996, 1997, and 1998 73443
of the assessed value from nuclear fuel materials and assemblies 73444
assessed against a person under Chapter 5711. of the Revised Code73445
from the leasing of them to an electric company for those 73446
respective tax years, as reflected in the preliminary assessments;73447

       (b) The three-year average assessed value from nuclear fuel73448
materials and assemblies assessed under division (D)(2)(a) of this73449
section for tax years 1996, 1997, and 1998, as reflected in the73450
preliminary assessments, using an assessment rate of twenty-five73451
per cent.73452

       (3) In the case of a taxing district having a nuclear power 73453
plant within its territory, any amount, resulting in an electric 73454
company tax value loss, obtained by subtracting the amount 73455
described in division (D)(1) of this section from the difference 73456
obtained by subtracting the amount described in division (D)(3)(b) 73457
of this section from the amount described in division (D)(3)(a) of 73458
this section.73459

        (a) The value of electric company tangible personal property 73460
as assessed by the tax commissioner for tax year 2000 on a 73461
preliminary assessment, or an amended preliminary assessment if 73462
issued prior to March 1, 2001, and as apportioned to the taxing 73463
district for tax year 2000;73464

        (b) The value of electric company tangible personal property 73465
as assessed by the tax commissioner for tax year 2001 on a 73466
preliminary assessment, or an amended preliminary assessment if 73467
issued prior to March 1, 2002, and as apportioned to the taxing 73468
district for tax year 2001.73469

       (E) Not later than January 1, 2002, the tax commissioner73470
shall determine for each taxing district its natural gas company73471
tax value loss, which is the sum of the amounts described in73472
divisions (E)(1) and (2) of this section:73473

       (1) The difference obtained by subtracting the amount73474
described in division (E)(1)(b) from the amount described in73475
division (E)(1)(a) of this section.73476

       (a) The value of all natural gas company tangible personal73477
property, other than property described in division (E)(2) of this73478
section, as assessed by the tax commissioner for tax year 1999 on73479
a preliminary assessment, or an amended preliminary assessment if73480
issued prior to March 1, 2000, and apportioned to the taxing73481
district for tax year 1999;73482

       (b) The value of all natural gas company tangible personal73483
property, other than property described in division (E)(2) of this73484
section, as assessed by the tax commissioner for tax year 1999 had73485
the property been apportioned to the taxing district for tax year73486
2001, and assessed at the rates in effect for tax year 2001.73487

       (2) The difference in the value of current gas obtained by73488
subtracting the amount described in division (E)(2)(b) from the73489
amount described in division (E)(2)(a) of this section.73490

       (a) The three-year average assessed value of current gas as73491
assessed by the tax commissioner for tax years 1997, 1998, and73492
1999 on a preliminary assessment, or an amended preliminary73493
assessment if issued prior to March 1, 2001, and as apportioned in73494
the taxing district for those respective years;73495

       (b) The three-year average assessed value from current gas73496
under division (E)(2)(a) of this section for tax years 1997, 1998,73497
and 1999, as reflected in the preliminary assessment, using an73498
assessment rate of twenty-five per cent.73499

       (F) The tax commissioner may request that natural gas73500
companies, electric companies, and rural electric companies file a73501
report to help determine the tax value loss under divisions (D)73502
and (E) of this section. The report shall be filed within thirty73503
days of the commissioner's request. A company that fails to file73504
the report or does not timely file the report is subject to the73505
penalty in section 5727.60 of the Revised Code.73506

       (G) Not later than January 1, 2002, the tax commissioner73507
shall determine for each school district, joint vocational school73508
district, and local taxing unit its fixed-rate levy loss, which is73509
the sum of its electric company tax value loss multiplied by the73510
tax rate in effect in tax year 1998 for fixed-rate levies and its73511
natural gas company tax value loss multiplied by the tax rate in73512
effect in tax year 1999 for fixed-rate levies.73513

       (H) Not later than January 1, 2002, the tax commissioner73514
shall determine for each school district, joint vocational school73515
district, and local taxing unit its fixed-sum levy loss, which is73516
the amount obtained by subtracting the amount described in73517
division (H)(2) of this section from the amount described in73518
division (H)(1) of this section:73519

       (1) The sum of the electric company tax value loss multiplied 73520
by the tax rate in effect in tax year 1998, and the natural gas 73521
company tax value loss multiplied by the tax rate in effect in tax 73522
year 1999, for fixed-sum levies for all taxing districts within73523
each school district, joint vocational school district, and local73524
taxing unit. For the years 2002 through 2006, this computation 73525
shall include school district emergency levies that existed in 73526
1998 in the case of the electric company tax value loss, and 1999 73527
in the case of the natural gas company tax value loss, and all 73528
other fixed-sum levies that existed in 1998 in the case of the 73529
electric company tax value loss and 1999 in the case of the 73530
natural gas company tax value loss and continue to be charged in 73531
the tax year preceding the distribution year. For the years 200773532
through 2016 in the case of school district emergency levies, and 73533
for all years after 2006 in the case of all other fixed-sum 73534
levies, this computation shall exclude all fixed-sum levies that73535
existed in 1998 in the case of the electric company tax value loss 73536
and 1999 in the case of the natural gas company tax value loss, 73537
but are no longer in effect in the tax year preceding the 73538
distribution year. For the purposes of this section, an emergency 73539
levy that existed in 1998 in the case of the electric company tax73540
value loss, and 1999 in the case of the natural gas company tax 73541
value loss, continues to exist in a year beginning on or after 73542
January 1, 2007, but before January 1, 2017, if, in that year, the 73543
board of education levies a school district emergency levy for an 73544
annual sum at least equal to the annual sum levied by the board in 73545
tax year 1998 or 1999, respectively, less the amount of the 73546
payment certified under this division for 2002.73547

       (2) The total taxable value in tax year 1999 less the tax73548
value loss in each school district, joint vocational school73549
district, and local taxing unit multiplied by one-fourth of one73550
mill.73551

       If the amount computed under division (H) of this section for 73552
any school district, joint vocational school district, or local 73553
taxing unit is greater than zero, that amount shall equal the 73554
fixed-sum levy loss reimbursed pursuant to division (E) of section 73555
5727.85 of the Revised Code or division (A)(2) of section 5727.86 73556
of the Revised Code, and the one-fourth of one mill that is 73557
subtracted under division (H)(2) of this section shall be73558
apportioned among all contributing fixed-sum levies in the73559
proportion of each levy to the sum of all fixed-sum levies within73560
each school district, joint vocational school district, or local73561
taxing unit.73562

       (I) Notwithstanding divisions (D), (E), (G), and (H) of this 73563
section, in computing the tax value loss, fixed-rate levy loss, 73564
and fixed-sum levy loss, the tax commissioner shall use the73565
greater of the 1998 tax rate or the 1999 tax rate in the case of73566
levy losses associated with the electric company tax value loss,73567
but the 1999 tax rate shall not include for this purpose any tax73568
levy approved by the voters after June 30, 1999, and the tax73569
commissioner shall use the greater of the 1999 or the 2000 tax73570
rate in the case of levy losses associated with the natural gas73571
company tax value loss.73572

       (J) Not later than January 1, 2002, the tax commissioner73573
shall certify to the department of education the tax value loss73574
determined under divisions (D) and (E) of this section for each73575
taxing district, the fixed-rate levy loss calculated under73576
division (G) of this section, and the fixed-sum levy loss73577
calculated under division (H) of this section. The calculations73578
under divisions (G) and (H) of this section shall separately73579
display the levy loss for each levy eligible for reimbursement.73580

       (K) Not later than September 1, 2001, the tax commissioner73581
shall certify the amount of the fixed-sum levy loss to the county73582
auditor of each county in which a school district with a fixed-sum73583
levy loss has territory.73584

       Sec. 5727.85.  (A) By the thirty-first day of July of each73585
year, beginning in 2002 and ending in 2016, the department of73586
education shall determine the following for each school district73587
and each joint vocational school district eligible for payment73588
under division (C) or (D) of this section:73589

       (1) The state education aid offset, which is the difference73590
obtained by subtracting the amount described in division (A)(1)(b)73591
of this section from the amount described in division (A)(1)(a) of73592
this section:73593

       (a) The state education aid computed for the school district73594
or joint vocational school district for the current fiscal year as 73595
of the thirty-first day of July;73596

       (b) The state education aid that would be computed for the73597
school district or joint vocational school district for the73598
current fiscal year as of the thirty-first day of July if the 73599
recognized valuation included the tax value loss for the school73600
district or joint vocational school district.73601

       (2) The greater of zero or the difference obtained by73602
subtracting the state education aid offset determined under73603
division (A)(1) of this section from the fixed-rate levy loss 73604
certified under division (J) of section 5727.84 of the Revised73605
Code for all taxing districts in each school district and joint73606
vocational school district.73607

       By the fifth day of August of each such year, the department73608
of education shall certify the amount so determined under division73609
(A)(1) of this section to the director of budget and management.73610

       (B) Not later than the thirty-first day of October of the73611
years 2006 through 2016, the department of education shall73612
determine all of the following for each school district:73613

       (1) The amount obtained by subtracting the district's state73614
education aid computed for fiscal year 2002 from the district's73615
state education aid computed for the current fiscal year;73616

       (2) The inflation-adjusted property tax loss. The73617
inflation-adjusted property tax loss equals the fixed-rate levy73618
loss, excluding the tax loss from levies within the ten-mill73619
limitation to pay debt charges, determined under division (G) of73620
section 5727.84 of the Revised Code for all taxing districts in73621
each school district, plus the product obtained by multiplying 73622
that loss by the cumulative percentage increase in the consumer 73623
price index from January 1, 2002, to the thirtieth day of June of 73624
the current year.73625

       (3) The difference obtained by subtracting the amount73626
computed under division (B)(1) from the amount of the73627
inflation-adjusted property tax loss. If this difference is zero73628
or a negative number, no further payments shall be made under73629
division (C) of this section to the school district from the73630
school district property tax replacement fund.73631

       (C) The department of education shall pay from the school73632
district property tax replacement fund to each school district all 73633
of the following:73634

       (1) In February 2002, one-half of the fixed-rate levy loss73635
certified under division (J) of section 5727.84 of the Revised73636
Code between the twenty-first and twenty-eighth days of February.73637

       (2) From August 2002 through August 2006, one-half of the73638
amount calculated for that fiscal year under division (A)(2) of73639
this section between the twenty-first and twenty-eighth days of73640
August and of February.73641

       (3) From February 2007 through August 2016, one-half of the73642
amount calculated for that calendar year under division (B)(3) of73643
this section between the twenty-first and twenty-eighth days of73644
August and of February.73645

       (4) For taxes levied within the ten-mill limitation for debt73646
purposes in tax year 1998 in the case of electric company tax73647
value losses, and in tax year 1999 in the case of natural gas73648
company tax value losses, payments shall be made equal to one73649
hundred per cent of the loss computed as if the tax were a73650
fixed-rate levy, but those payments shall extend from fiscal year73651
2006 through fiscal year 2016.73652

       The department of education shall report to each school73653
district the apportionment of the payments among the school73654
district's funds based on the certifications under division (J) of73655
section 5727.84 of the Revised Code.73656

       (D) Not later than January 1, 2002, for all taxing districts73657
in each joint vocational school district, the tax commissioner73658
shall certify to the department of education the fixed-rate levy73659
loss determined under division (G) of section 5727.84 of the73660
Revised Code. From February 2002 to August 2016, the department73661
shall pay from the school district property tax replacement fund73662
to the joint vocational school district one-half of the amount73663
calculated for that fiscal year under division (A)(2) of this73664
section between the twenty-first and twenty-eighth days of August73665
and of February.73666

       (E)(1) Not later than January 1, 2002, for each fixed-sum73667
levy levied by each school district or joint vocational school73668
district and for each year for which a determination is made under 73669
division (H) of section 5727.84 of the Revised Code that a73670
fixed-sum levy loss is to be reimbursed, the tax commissioner73671
shall certify to the department of education the fixed-sum levy73672
loss determined under that division. The certification shall cover 73673
a time period sufficient to include all fixed-sum levies for which 73674
the tax commissioner made such a determination. The department 73675
shall pay from the school district property tax replacement fund 73676
to the school district or joint vocational school district 73677
one-half of the fixed-sum levy loss so certified for each year 73678
between the twenty-first and twenty-eighth days of August and of 73679
February.73680

       (2) Beginning in 2003, by the thirty-first day of January of73681
each year, the tax commissioner shall review the certification73682
originally made under division (E)(1) of this section. If the73683
commissioner determines that a debt levy that had been scheduled73684
to be reimbursed in the current year has expired, a revised73685
certification for that and all subsequent years shall be made to73686
the department of education.73687

       (F) If the balance of the half-mill equalization fund created 73688
under section 3318.18 of the Revised Code is insufficient to make 73689
the full amount of payments required under division (D) of that 73690
section, the department of education, at the end of the third 73691
quarter of the fiscal year, shall certify to the director of 73692
budget and management the amount of the deficiency, and the 73693
director shall transfer an amount equal to the deficiency from the 73694
school district property tax replacement fund to the half-mill 73695
equalization fund.73696

       (G) Beginning in August 2002, and ending in FebruaryMay73697
2017, the director of budget and management shall transfer from 73698
the school district property tax replacement fund to the general73699
revenue fund each of the following:73700

       (1) Between the twenty-eighth day of August and the fifth day 73701
of September, the lesser of one-half of the amount certified for 73702
that fiscal year under division (A)(2) of this section or the73703
balance in the school district property tax replacement fund;73704

       (2) Between the first and fifth days of MarchMay, the lesser 73705
of one-half of the amount certified for that fiscal year under73706
division (A)(2) of this section or the balance in the school73707
district property tax replacement fund.73708

       (G) By August 5, 2002, the tax commissioner shall estimate73709
the amount of money in the school district property tax73710
replacement fund in excess of the amount necessary to make73711
payments under divisions (C), (D), (E), and (F) of this section. 73712
Notwithstanding division (C) of this section, the department of73713
education, in consultation with the tax commissioner and from73714
those excess funds, may pay any school district four and one-half73715
times the amount certified under division (A)(2) of this section.73716
Payments shall be made in order from the smallest annual loss to73717
the largest annual loss. A payment made under this division shall73718
be in lieu of the payment to be made in August 2002 under division73719
(C)(2) of this section. No payments shall be made in the manner73720
established in this division to any school district with annual73721
losses from permanent improvement fixed-rate levies in excess of73722
twenty thousand dollars, or annual losses from any other73723
fixed-rate levies in excess of twenty thousand dollars. A school73724
district receiving a payment under this division is no longer73725
entitled to any further payments under division (C) of this73726
section.73727

       (H) On the thirty-first day of July of 2003, 2004, 2005, and73728
2006, and on the thirty-first day of January and July of 2007 and73729
each year thereafter, if the amount credited to the school73730
district property tax replacement fund exceeds the amount needed73731
to make payments from the fund under divisions (C), (D), (E), and73732
(F) of this section, the department of education shall distribute73733
the excess among school districts and joint vocational school73734
districts. The amount distributed to each district shall bear the73735
same proportion to the excess remaining in the fund as the ADM of73736
the district bears to the ADM of all of the districts. For the73737
purpose of this division, "ADM" means the formula ADM in the case73738
of a school district, and the average daily membership reported73739
under section 3317.03 of the Revised Code in the case of a joint73740
vocational school district.73741

       If, in the opinion of the department of education, the excess 73742
remaining in the school district property tax replacement fund in 73743
any year is not sufficient to warrant distribution under this 73744
division, the excess shall remain to the credit of the fund.73745

       Amounts received by a school district or joint vocational73746
school district under this division shall be used exclusively for73747
capital improvements.73748

       (H) On the first day of June each year, the director of 73749
budget and management shall transfer any balance remaining in the 73750
school district property tax replacement fund after the payments 73751
have been made under divisions (C), (D), (E), (F), and (G) of this 73752
section to the half-mill equalization fund created under section 73753
3318.18 of the Revised Code.73754

       (I) From fiscal year 2002 through fiscal year 2016, if the73755
total amount in the school district property tax replacement fund73756
is insufficient to make all payments under divisions (C), (D), and73757
(E), and (F) of this section at the time the payments are to be 73758
made, the director of budget and management shall transfer from 73759
the general revenue fund to the school district property tax73760
replacement fund the difference between the total amount to be73761
paid and the total amount in the school district property tax73762
replacement fund, except that no transfer shall be made by reason 73763
of a deficiency to the extent that it results from the amendment 73764
of section 5727.84 of the Revised Code by Amended Substitute House 73765
Bill No. 95 of the 125th general assembly.73766

       (J) If all or a part of the territory of a school district or73767
joint vocational school district is merged with an existing 73768
district, or if a part of the territory of a school district or 73769
joint vocational school district is transferred to anotheran 73770
existing or new district, the department of education, in73771
consultation with the tax commissioner, shall adjust the payments73772
made under this section to each of the districts in proportion to73773
the tax value loss apportioned to the merged or transferred73774
territoryas follows:73775

        (1) For the merger of all of the territory of two or more 73776
districts, the fixed-rate levy loss and the fixed-sum levy loss of 73777
the successor district shall be equal to the sum of the fixed-rate 73778
levy losses and the fixed-sum levy losses for each of the 73779
districts involved in the merger.73780

        (2) For the transfer of a part of one district's territory to 73781
an existing district, the amount of the fixed-rate levy loss that 73782
is transferred to the recipient district shall be an amount equal 73783
to the transferring district's total fixed-rate levy loss times a 73784
fraction, the numerator of which is the value of electric company 73785
tangible personal property located in the part of the territory 73786
that was transferred, and the denominator of which is the total 73787
value of electric company tangible personal property located in 73788
the entire district from which the territory was transferred. The 73789
value of electric company tangible personal property under this 73790
division shall be determined for the most recent year for which 73791
data is available. Fixed-sum levy losses for both districts shall 73792
be determined under division (J)(4) of this section.73793

        (3) For the transfer of a part of the territory of one or 73794
more districts to create a new district:73795

        (a) If the new district is created on or after January 1, 73796
2000, but before January 1, 2005, the new district shall be paid 73797
its current fixed-rate levy loss through August 2006. From 73798
February 2007 to August 2016, the new district shall be paid the 73799
lesser of: (i) the amount calculated under division (B) of this 73800
section or (ii) an amount determined under the schedule in 73801
division (A)(1) of section 5727.86 of the Revised Code, as if for 73802
this purpose the new district was a local taxing unit under that 73803
section. Fixed-sum levy losses for the districts shall be 73804
determined under division (J)(4) of this section.73805

        (b) If the new district is created on or after January 1, 73806
2005, the new district shall be deemed not to have any fixed-rate 73807
levy loss or, except as provided in division (J)(4) of this 73808
section, fixed-sum levy loss. The district or districts from which 73809
the territory was transferred shall have no reduction in their 73810
fixed-rate levy loss, or, except as provided in division (J)(4) of 73811
this section, their fixed-sum levy loss.73812

        (4) If a recipient district under division (J)(2) of this 73813
section or a new district under division (J)(3)(a) or (b) of this 73814
section takes on debt from one or more of the districts from which 73815
territory was transferred, and any of the districts transferring 73816
the territory had fixed-sum levy losses, the department of 73817
education, in consultation with the tax commissioner, shall make 73818
an equitable division of the fixed-sum levy losses.73819

       (K) There is hereby created the public utility property tax73820
study committee, effective January 1, 2011. The committee shall73821
consist of the following seven members: the tax commissioner,73822
three members of the senate appointed by the president of the73823
senate, and three members of the house of representatives73824
appointed by the speaker of the house of representatives. The73825
appointments shall be made not later than January 31, 2011. The73826
tax commissioner shall be the chairperson of the committee.73827

       The committee shall study the extent to which each school73828
district or joint vocational school district has been compensated,73829
under sections 5727.84 and 5727.85 of the Revised Code as enacted73830
by Substitute Senate Bill No. 3 of the 123rd general assembly and73831
any subsequent acts, for the property tax loss caused by the73832
reduction in the assessment rates for natural gas, electric, and73833
rural electric company tangible personal property. Not later than73834
June 30, 2011, the committee shall issue a report of its findings,73835
including any recommendations for providing additional73836
compensation for the property tax loss or regarding remedial73837
legislation, to the president of the senate and the speaker of the73838
house of representatives, at which time the committee shall cease73839
to exist.73840

       The department of taxation and department of education shall73841
provide such information and assistance as is required for the73842
committee to carry out its duties.73843

       Sec. 5728.01.  As used in sections 5728.02 to 5728.14 of the73844
Revised Code:73845

       (A) "Motor vehicle" means everything on wheels that is73846
self-propelled, other than by muscular power or power collected73847
from electric trolley wires and other than vehicles or machinery73848
not designed for or employed in general highway transportation,73849
used to transport or propel persons or property over a public 73850
highway.73851

       (B) "Commercial car" means any motor vehicle used for73852
transporting persons or property, wholly on its own structure on a 73853
public highway.73854

       (C) "Commercial tractor" means any motor vehicle designed and73855
used to propel or draw a trailer or semi-trailer or both on a73856
public highway without having any provision for carrying loads73857
independently of such trailer or semi-trailer.73858

       (D) "Trailer" means everything on wheels that is not73859
self-propelled, except vehicles or machinery not designed for or73860
employed in general highway transportation, used for carrying73861
property wholly on its own structure and for being drawn by a73862
motor vehicle on a public highway, including any such vehicle when73863
formed by or operated as a combination of a semi-trailer and a73864
vehicle of the dolly type such as that commonly known as a trailer73865
dolly. "Trailer" does not include manufactured homes as defined in73866
division (C)(4) of section 3781.06 of the Revised Code or mobile73867
homes as defined in division (O) of section 4501.01 of the Revised73868
Code.73869

       (E) "Semi-trailer" means everything on wheels that is not73870
self-propelled, except vehicles or machinery not designed for or73871
employed in general highway transportation, designed and used for73872
carrying property on a public highway when being propelled or73873
drawn by a commercial tractor when part of its own weight or the73874
weight of its load, or both, rest upon and is carried by a73875
commercial tractor.73876

       (F) "Commercial tandem" means any commercial car and trailer73877
or any commercial tractor, semi-trailer, and trailer when fastened73878
together and used as one unit.73879

       (G) "Commercial tractor combination" means any commercial73880
tractor and semi-trailer when fastened together and used as one73881
unit.73882

       (H) "Axle" means two or more load carrying wheels mounted in73883
a single transverse vertical plane.73884

       (I) "Public highway" means any highway, road, or street73885
dedicated to public use, including a highway under the control and73886
jurisdiction of the Ohio turnpike commission created by the73887
provisions of section 5537.02 of the Revised Code and land and73888
lots over which the public, either as user or owner, generally has73889
a right to pass even though such land or lots are closed73890
temporarily by public authorities for the purpose of construction,73891
reconstruction, maintenance, or repair.73892

       (J) "Jurisdiction" means a state of the United States, the 73893
District of Columbia, or a province or territory of Canada.73894

       Sec. 5728.02.  (A) Except as provided in section 5728.03 of73895
the Revised Code, every person who is liable for the tax imposed73896
by section 5728.06 of the Revised Code on the operation of a73897
commercial car with three or more axles when operated alone or as73898
part of a commercial tandem, a commercial car with two axles that73899
is to be operated as part of a commercial tandem with a gross73900
vehicle weight or a registered gross vehicle weight exceeding73901
twenty-six thousand pounds, or a commercial tractor that is, or is73902
to be, operated or driven upon a public highway in two or more 73903
jurisdictions shall cause to be filed annually with the tax73904
commissioner a writtenan application for a fuel use permit on73905
blank forms to be furnished by the commissioner for that purpose.73906

       Each application for a fuel use permit for a commercial car73907
or a commercial tractor shall contain any information the tax73908
commissioner prescribes.73909

       (B) Upon receipt of the application, the tax commissioner73910
shall issue to the person making the application a fuel use permit73911
and any identification device that the commissioner considers73912
necessary for the proper administration of this chapter. The73913
permit and the identification device shall be of a design and73914
contain any information the commissioner considers necessary. The73915
identification device shall be displayed on the commercial car or73916
commercial tractor for which it was issued at all times in the73917
manner the commissioner prescribes. The fuel use permits and the73918
identification device shall not be transferable. In case of the73919
loss of a fuel use permit or identification device, the73920
commissioner shall issue a duplicate of the permit or device.73921

       The fuel use permit shall be valid until it expires or is73922
suspended or surrendered.73923

       Sec. 5728.03.  (A) In lieu of filing an application for an73924
annual fuel use permit under section 5728.02 of the Revised Code73925
and in lieu of filing returns under section 5728.08 of the Revised73926
Code, a person who is the owner of a commercial car with three or73927
more axles when operated alone or as part of a commercial tandem,73928
a commercial car with two axles that is to be operated as part of73929
a commercial tandem with a gross vehicle weight or a registered73930
gross vehicle weight exceeding twenty-six thousand pounds, or a73931
commercial tractor that would otherwise be liable for the tax 73932
imposed by section 5728.06 of the Revised Code, that is, or is to 73933
be, operated or driven upon a public highway, may file an73934
application with the tax commissioner for a single-trip fuel use73935
permit. The application shall be based on rules adopted by the tax73936
commissioner and shall include an amount estimated to be73937
substantially equivalent to the fuel use tax liability that the 73938
applicant will incur by driving on the highways of this state 73939
during the period covered by the single-trip permit. The amount so73940
estimated shall be considered to be the fuel use tax liability so 73941
incurred.73942

       The commissioner may authorize independent permit services or73943
other persons to issue single-trip fuel use permits.73944

       (B) The tax commissioner shall adopt rules establishing all73945
of the following:73946

       (1) Procedures for the issuance of single-trip permits;73947

       (2) The length of time the permits are effective;73948

       (3) Requirements that independent permit services or other73949
persons must meet to be authorized to issue single-trip fuel use73950
permits and procedures for obtaining that authorization;73951

       (4) Estimates of the amount substantially equivalent to the73952
fuel use tax liability that an applicant will incur by driving on73953
the highways of this state during the period covered by the73954
permit.73955

       (C) No person whose fuel use permit issued under section73956
5728.02 of the Revised Code is currently under suspension in73957
accordance with section 5728.11 of the Revised Code shall be73958
issued a single-trip fuel use permit under this section.73959

       (D) All moneys collected pursuant to this section shall be73960
deposited in the state treasury in accordance with section 5728.0873961
of the Revised Code.73962

       Sec. 5728.04. (A) It is unlawful for any person to operate a73963
commercial car with three or more axles when operated alone or as73964
part of a commercial tandem, a commercial car with two axles that73965
is to be operated as part of a commercial tandem with a gross73966
vehicle weight or a registered gross vehicle weight exceeding73967
twenty-six thousand pounds, or a commercial tractor when operated73968
alone or as part of a commercial tractor combination or commercial73969
tandemthat is subject to the tax imposed by section 5728.06 of 73970
the Revised Code on a public highway in two or more jurisdictions73971
under either of the following circumstances:73972

       (1) Without a fuel use permit or single trip fuel use permit73973
for such commercial car or commercial tractor.73974

       (2) With a suspended or surrendered fuel use permit for such 73975
commercial car or commercial tractor.73976

       (B) The judge or magistrate of any court finding any person73977
guilty of unlawfully operating a commercial car or commercial73978
tractor as provided for in this section shall immediately notify73979
the tax commissioner of such violation and shall transmit to the 73980
tax commissioner the name and the permanent address of the owner 73981
of the commercial car or commercial tractor operated in violation 73982
of this section, the registration number, the state of 73983
registration, and the certificate of title number of the 73984
commercial car or commercial tractor. The commercial car or 73985
commercial tractor involved in a violation of division (A)(1) or 73986
(2) of this section may be detained until a valid fuel use permit 73987
is obtained or reinstated.73988

       Sec. 5728.06.  (A) For the following purposes, an excise tax73989
is hereby imposed on the use of motor fuel to operate on the73990
public highways of this state a commercial car with three or more73991
axles, regardless of weight, operated alone or as part of a 73992
commercial tandem, a commercial car with two axles operated as 73993
part of a commercial tandem having a gross vehicle weight or 73994
registered gross vehicle weight exceeding twenty-six thousand 73995
pounds operated alone or as part of a commercial tandem, or a 73996
commercial tractor operated alone or as part of a commercial 73997
tractor combination or commercial tandem: to provide revenue for73998
maintaining the state highway system, to widen existing surfaces73999
on such highways, to resurface such highways, to enable the74000
counties of the state properly to plan for, maintain, and repair74001
their roads, to enable the municipal corporations to plan,74002
construct, reconstruct, repave, widen, maintain, repair, clear,74003
and clean public highways, roads, and streets; to pay that portion74004
of the construction cost of a highway project that a county,74005
township, or municipal corporation normally would be required to74006
pay, but that the director of transportation, pursuant to division74007
(B) of section 5531.08 of the Revised Code, determines instead74008
will be paid from moneys in the highway operating fund; to74009
maintain and repair bridges and viaducts; to purchase, erect, and74010
maintain street and traffic signs and markers; to purchase, erect,74011
and maintain traffic lights and signals; to pay the costs74012
apportioned to the public under section 4907.47 of the Revised74013
Code; and to supplement revenue already available for such74014
purposes, to distribute equitably among those persons using the74015
privilege of driving motor vehicles upon such highways and streets74016
the cost of maintaining and repairing the same, and to pay the74017
interest, principal, and charges on bonds and other obligations74018
issued pursuant to Section 2i of Article VIII, Ohio Constitution,74019
and sections 5528.30 and 5528.31 of the Revised Code. The tax is74020
imposed in the same amount as the motor fuel tax imposed under74021
Chapter 5735. of the Revised Code plus an additional tax of three74022
cents per gallon of motor fuel used before July 1, 2004, provided 74023
that the additional tax shall be reduced to two cents per gallon 74024
of motor fuel used from July 1, 2004 through June 30, 2005, as 74025
determined by the gallons consumed while operated on the public 74026
highways of this state. Subject to section 5735.292 of the Revised 74027
Code, on and after July 1, 2005, the tax shall be imposed in the 74028
same amount as the motor fuel tax imposed under Chapter 5735. of 74029
the Revised Code. Payment of the fuel use tax shall be made by the 74030
purchase of motor fuel within Ohio of such gallons of motor fuel, 74031
for which the tax imposed under Chapter 5735. of the Revised Code 74032
has been paid, as is equivalent to the gallons consumed while 74033
operating such a motor vehicle on the public highways of this 74034
state, or by direct remittance to the treasurer of state with the 74035
fuel use tax return filed pursuant to section 5728.08 of the74036
Revised Code.74037

       Any person subject to the tax imposed under this section who74038
purchases motor fuel in this state for use in another state in74039
excess of the amount consumed while operating such motor vehicle74040
on the public highways of this state shall be allowed a credit74041
against the tax imposed by this section or a refund equal to the74042
motor fuel tax paid to this state on such excess. No such credit74043
or refund shall be allowed for taxes paid to any state that74044
imposes a tax on motor fuel purchased or obtained in this state74045
and used on the highways of such other state but does not allow a74046
similar credit or refund for the tax paid to this state on motor74047
fuel purchased or acquired in the other state and used on the74048
public highways of this state.74049

       The tax commissioner is authorized to determine whether such74050
credits or refunds are available and to prescribe such rules as74051
are required for the purpose of administering this chapter.74052

       (B) Within sixty days after the last day of each month, the74053
tax commissioner shall determine the amount of motor fuel tax74054
allowed as a credit against the tax imposed by this section. The74055
commissioner shall certify the amount to the director of budget74056
and management and the treasurer of state, who shall credit the74057
amount in accordance with section 5728.08 of the Revised Code from74058
current revenue arising from the tax levied by section 5735.05 of74059
the Revised Code.74060

       (C) The owner of each commercial car and commercial tractor74061
subject to sections 5728.01 to 5728.14 of the Revised Code is74062
liable for the payment of the full amount of the taxes imposed by74063
this section.74064

       An owner who is a person regularly engaged, for compensation,74065
in the business of leasing or renting motor vehicles without74066
furnishing drivers may designate that the lessee of a motor74067
vehicle leased for a period of thirty days or more shall report74068
and pay the tax incurred during the duration of the lease. An74069
owner who is an independent contractor that furnishes both the74070
driver and motor vehicle, may designate that the person so74071
furnished with the driver and motor vehicle for a period of thirty74072
days or more shall report and pay the tax incurred during that74073
period. An independent contractor that is not an owner, but that74074
furnishes both the driver and motor vehicle and that has been74075
designated by the owner of the motor vehicle to report and pay the74076
tax, may designate that the person so furnished with driver and74077
motor vehicle for a period of thirty days or more shall report and74078
pay the tax incurred during that period.74079

       Sec. 5728.08.  Except as provided in section 5728.03 of the74080
Revised Code and except as otherwise provided in thisdivision (A) 74081
of section 5728.06 of the Revised Code, whoever is liable for the 74082
payment of the tax levied by section 5728.06 of the Revised Code, 74083
on or before the last day of each January, April, July, and 74084
October, shall file with the tax commissioner, on forms prescribed 74085
by the commissioner, a fuel use tax return and make payment of the74086
full amount of the tax due for the operation of each commercial74087
car and commercial tractor for the preceding three calendar74088
months. If the commercial cars or commercial tractors are farm74089
trucks and the amount of motor fuel used to operate the trucks74090
during the preceding twelve calendar months was less than fifteen74091
thousand gallons, the fuel use tax return shall be filed and the 74092
full amount of tax due paid on or before the last day of each July 74093
for the preceding twelve calendar months. If the commercial cars74094
or commercial tractors are farm trucks and the amount of motor74095
fuel used to operate the trucks during the preceding twelve74096
calendar months was fifteen thousand gallons or more, the fuel use 74097
tax return shall be filed and the full amount of the tax due paid 74098
either on or before the last day of each July for the preceding 74099
twelve calendar months, or on or before the last day of each 74100
January, April, July, and October for the preceding three calendar74101
months, at the option of the person liable for payment of the tax. 74102
If the commercial cars or commercial tractors are not farm trucks, 74103
and if, in the estimation of the commissioner, the amount of the 74104
tax due does not warrant quarterly filing, the commissioner may 74105
authorize the filing of the fuel use tax return and payment of the 74106
full amount due on or before the last day of each July for the 74107
preceding twelve months.74108

       The commissioner shall immediately forward to the treasurer74109
of state all money received from the tax levied by section 5728.0674110
of the Revised Code.74111

       The treasurer of state shall place to the credit of the tax74112
refund fund created by section 5703.052 of the Revised Code, out74113
of receipts from the taxes levied by section 5728.06 of the74114
Revised Code, amounts equal to the refund certified by the tax74115
commissioner pursuant to section 5728.061 of the Revised Code.74116
Receipts from the tax shall be used by the commissioner to defray74117
expenses incurred by the department of taxation in administering74118
sections 5728.01 to 5728.14 of the Revised Code.74119

       All moneys received in the state treasury from taxes levied74120
by section 5728.06 of the Revised Code and fees assessed under 74121
section 5728.03 of the Revised Code that are not required to be74122
placed to the credit of the tax refund fund as provided by this74123
section shall, during each calendar year, be credited to the74124
highway improvement bond retirement fund created by section74125
5528.12 of the Revised Code until the commissioners of the sinking74126
fund certify to the treasurer of state, as required by section74127
5528.17 of the Revised Code, that there are sufficient moneys to74128
the credit of the highway improvement bond retirement fund to meet74129
in full all payments of interest, principal, and charges for the74130
retirement of bonds and other obligations issued pursuant to74131
Section 2g of Article VIII, Ohio Constitution, and sections74132
5528.10 and 5528.11 of the Revised Code due and payable during the74133
current calendar year and during the following calendar year. From 74134
the date of the receipt of the certification required by section 74135
5528.17 of the Revised Code by the treasurer of state until the 74136
thirty-first day of December of the calendar year in which the 74137
certification is made, all moneys received in the state treasury 74138
from taxes levied under section 5728.06 of the Revised Code and 74139
fees assessed under section 5728.03 of the Revised Code that are 74140
not required to be placed to the credit of the tax refund fund as 74141
provided by this section shall be credited to the highway74142
obligations bond retirement fund created by section 5528.32 of the74143
Revised Code until the commissioners of the sinking fund certify74144
to the treasurer of state, as required by section 5528.38 of the74145
Revised Code, that there are sufficient moneys to the credit of74146
the highway obligations bond retirement fund to meet in full all74147
payments of interest, principal, and charges for the retirement of74148
bonds and other obligations issued pursuant to Section 2i of74149
Article VIII, Ohio Constitution, and sections 5528.30 and 5528.3174150
of the Revised Code due and payable during the current calendar74151
year and during the following calendar year. From the date of the74152
receipt of the certification required by section 5528.38 of the74153
Revised Code by the treasurer of state until the thirty-first day74154
of December of the calendar year in which the certification is74155
made, all moneys received in the state treasury from taxes levied74156
under section 5728.06 of the Revised Code and fees assessed under 74157
section 5728.03 of the Revised Code that are not required to be74158
placed to the credit of the tax refund fund as provided by this74159
section shall be credited to the highway operating fund created by74160
section 5735.291 of the Revised Code, except as provided by the 74161
following paragraph of this section.74162

       From the date of the receipt by the treasurer of state of74163
certifications from the commissioners of the sinking fund, as74164
required by sections 5528.18 and 5528.39 of the Revised Code,74165
certifying that the moneys to the credit of the highway74166
improvement bond retirement fund are sufficient to meet in full74167
all payments of interest, principal, and charges for the74168
retirement of all bonds and other obligations that may be issued74169
pursuant to Section 2g of Article VIII, Ohio Constitution, and74170
sections 5528.10 and 5528.11 of the Revised Code, and to the74171
credit of the highway obligations bond retirement fund are74172
sufficient to meet in full all payments of interest, principal,74173
and charges for the retirement of all obligations issued pursuant74174
to Section 2i of Article VIII, Ohio Constitution, and sections74175
5528.30 and 5528.31 of the Revised Code, all moneys received in74176
the state treasury from the taxes levied under section 5728.06 and74177
fees assessed under section 5728.03 of the Revised Code that are74178
not required to be placed to the credit of the tax refund fund as74179
provided by this section, shall be deposited to the credit of the74180
highway operating fund.74181

       As used in this section, "farm truck" means any commercial74182
car or commercial tractor that is registered as a farm truck under74183
Chapter 4503. of the Revised Code.74184

       Sec. 5729.032.  Upon the issuance of a tax credit certificate 74185
by the director of development, a refundable credit granted by the 74186
tax credit authority under section 122.17 of the Revised Code may 74187
be claimed against the tax imposed by section 5729.03 of the 74188
Revised Code. The credit shall be claimed in the calendar year 74189
specified in the certificate issued by the director of 74190
development.74191

       Sec. 5729.08. (A) As used in this section, "tax otherwise 74192
due" means the tax imposed on a foreign insurance company under 74193
section 5729.03 of the Revised Code reduced by the total amount of 74194
all other nonrefundable credits, if any, that the foreign 74195
insurance company is entitled to claim.74196

        (B) Upon the issuance of a tax credit certificate by the Ohio74197
venture capital authority under section 150.07 of the Revised 74198
Code, a credit may be claimed against the tax imposed on a foreign 74199
insurance company under section 5729.03 of the Revised Code. The 74200
credit shall be claimed in the calendar year specified in the 74201
certificate issued by the authority.74202

       (C) If the company elected a refundable credit under section 74203
150.07 of the Revised Code and if the amount of the credit shown 74204
on the certificate does not exceed the tax otherwise due, then for 74205
the calendar year the company shall claim a refundable credit 74206
equal to the amount of the credit shown on the certificate.74207

       (D) If the company elected a refundable credit under section 74208
150.07 of the Revised Code, and the amount of the credit shown on 74209
the certificate exceeds the tax otherwise due under section 74210
5729.03 of the Revised Code, than for the calendar year the 74211
company may receive a refund equal to seventy-five per cent of 74212
such excess. Ifshall claim a refundable credit equal to the sum 74213
of the following:74214

        (1) The amount, if any, of the tax otherwise due;74215

        (2) Seventy-five per cent of the difference between the 74216
amount of the refundable credit shown on the certificate and the 74217
tax otherwise due.74218

       (E) If the company elected a nonrefundable credit, the amount 74219
of the credit shown on the certificate shall not exceed the amount 74220
of tax otherwise due. If the company elected a nonrefundable 74221
credit and the credit to which the company would otherwise be 74222
entitled under this section for any calendar year is greater than 74223
the tax otherwise due under section 5729.03 of the Revised Code, 74224
the excess shall be allowed as a nonrefundable credit in each of 74225
the ensuing ten calendar years, but the amount of any excess 74226
credit allowed in the ensuing calendar year shall be deducted from 74227
the balance carried forward to the next calendar year.74228

       Sec. 5731.01.  As used in this chapter:74229

       (A) The "value of the gross estate" of the decedent shall74230
include, to the extent provided in sections 5731.03 to 5731.131 of 74231
the Revised Code, the value, on the daedate of the decedent's74232
death or on an alternate valuation date prescribed by division (D) 74233
of this section, of all property, real or personal, tangible or 74234
intangible, wherever situated, except real property situated and 74235
tangible personal property having an actual situs outside of this 74236
state.74237

       (B) Subject to the provisions of section 5731.011 of the74238
Revised Code that permit a valuation of qualified farm property at 74239
its value for its actual qualified use, the value of any property 74240
included in the gross estate shall be the price at which such 74241
property would change hands between a willing buyer and a willing 74242
seller, neither being under any compulsion to buy or sell and both 74243
having reasonable knowledge of relevant facts. All relevant facts 74244
and elements of value as of the valuation date shall be considered 74245
in determining such value.74246

       The rulings and regulations of the internal revenue service74247
and decisions of the federal courts defining the principles74248
applicable in determining fair market value for purposes of the74249
federal estate tax imposed by Subchapter A, Chapter 11 of the74250
Internal Revenue Code of 1954, 26 U.S.C. 2001, as amended, shall74251
be applied in determining fair market value for purposes of the74252
estate taxes imposed by this chapter, to the extent that these74253
rulings, regulations, and decisions are not inconsistent with the74254
express provisions of this chapter, but the actual determination74255
of the fair market value by the internal revenue service of any74256
asset included in the gross estate is not controlling for purposes 74257
of the estate taxes imposed by this chapter, unless the person 74258
filing the estate tax return and the tax commissioner have agreed 74259
in writing to be bound by the federal determination, as provided 74260
in section 5731.26 of the Revised Code.74261

       (C) In the case of stock and securities of a corporation the 74262
value of which, by reason of their not being listed on an exchange 74263
and by reason of the absence of sales of them, cannot be74264
determined with reference to bid and asked prices, or with74265
reference to sales prices, the value of them shall be determined74266
by taking into consideration, in addition to all other factors,74267
the value of stock or securities of corporations engaged in the74268
same or a similar line of business which are listed on an exchange 74269
or which are traded actively in the over-the-counter market.74270

       If a valuation of securities is undertaken by reference to74271
market transactions and if the block of securities to be valued is 74272
so large in relation to actual sales on existing markets that it 74273
could not be liquidated in a reasonable time without depressing 74274
the market, the price at which the block could be sold, as such, 74275
outside the usual market, as through an underwriter, shall be 74276
considered in determining the value of such block of securities.74277

       (D) "Alternate valuation date" means the date for valuation 74278
of a gross estate permitted by filing an election under this 74279
division. Whether or not an alternate valuation date election is 74280
available to an estate for federal estate tax purposes or, if 74281
available, is made for the estate, the value of the gross estate 74282
may be determined, if the person required to file the estate tax 74283
return so elects, by valuing all the property included in the 74284
gross estate on the alternate date, if any, provided in section 74285
2032 (a) of the Internal Revenue Code of 1954, 26 U.S.C. 2032(a), 74286
as amended as such section generally applies, for federal estate 74287
tax purposes, to the estates of persons dying on the decedent's 74288
date of death.74289

       No deduction under this chapter of any item shall be allowed 74290
if allowance is, in effect, given by use of the alternate74291
valuation date. In the determination of any tax liability of any74292
estate in which an election is filed under this division, all74293
provisions in this chapter whichthat refer to value at the time 74294
of the decedent's death shall be construed for all purposes to 74295
mean the value of such property used in determining the value of 74296
the gross estate. For the purposes of the charitable deduction 74297
under section 5731.17 of the Revised Code, any bequest, legacy, 74298
devise, or transfer enumerated in it shall be valued as of the 74299
date of the decedent's death with adjustment for any difference in 74300
value, not due to mere lapse of time or the occurrence or 74301
nonoccurrence of a contingency, of the property as of the date six 74302
months after the decedent's death, or in case of its earlier 74303
disposition, on such date of disposition.74304

       An election under this division shall be exercised on the74305
estate tax return by the person required to file the return. When 74306
made, an election under this division is irrevocable. An election 74307
cannot be exercised under this division if a return is filed more 74308
than one year after the time prescribed, including any extensions 74309
of time granted, pursuant to law for filing the return.74310

       (E) Unless otherwise indicated by the context, "county" means 74311
one of the following:74312

       (1) The county in which the decedent's estate is74313
administered;74314

       (2) If no administration of the decedent's estate is being74315
had, the county of residence of the decedent at the time of his74316
death;74317

       (3) If the decedent dies a resident of another state, any74318
county in which any property subject to tax is located.74319

       (F) "Internal Revenue Code" means the "Internal Revenue Code 74320
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.74321

       Sec. 5731.05.  (A) Except as provided in divisions (B) and74322
(C) of this section, the value of the gross estate shall include74323
the value of all property, to the extent of any interest in74324
property, of which the decedent has at any time made a transfer,74325
by trust or otherwise, in contemplation of his death.74326

       (B) Any transfer, except as provided in division (C) of this 74327
section, by trust or otherwise, made within a period of three 74328
years ending with the date of the decedent's death shall be deemed 74329
to have been made in contemplation of death, unless the contrary 74330
is shown. No transfer made before that three-year period shall be 74331
treated as having been made in contemplation of death.74332

       (C) This section does not apply to any of the following:74333

       (1) A bona fide sale for an adequate and full consideration 74334
in money or money's worth;74335

       (2) A transfer of property that would not be included in the 74336
decedent's gross estate if retained by himthe decedent until 74337
death;74338

       (3) The first ten thousand dollars of the transfers that were 74339
made by the decedent to each transferee, other than the spouse of 74340
the decedent, in each calendar year, but only to the extent that 74341
those transfers qualify as present interests under section 2503(b) 74342
and (c) of the "Internal Revenue Code of 1986," 26 U.S.C. 2503, as 74343
amended. The exclusion provided by division (C)(3) of this section 74344
does not apply to any portion of a transfer that is treated as 74345
being made by the spouse of the decedent under section 2513 of the 74346
"Internal Revenue Code of 1986," 26 U.S.C. 2513, as amended.74347

       (4) A transfer of property made to the spouse of the 74348
transferor, except as provided in section 5731.131 of the Revised 74349
Code;74350

       (5) Federal or state gift taxes paid with respect to any74351
includible transfer.74352

       (D) The amendments made to this section by Amended Substitute 74353
House Bill No. 111 and Substitute Senate Bill No. 336 of the 118th 74354
general assembly that are effective on July 1, 1993, shall apply74355
only to the estates of decedents who die on or after that date.74356

       Sec. 5731.131. (A) The value of the gross estate shall74357
include the value of any property in which the decedent had an74358
income interest for life as follows:74359

       (1)(A) If a marital deduction was allowed with respect to the 74360
transfer of such property to the decedent under section 2523(f) of 74361
the "Internal Revenue Code of 1986," 26 U.S.C. 2523(f), as 74362
amended, in connection with the determination of the value of the 74363
taxable estate of the decedent's predeceasing spouse;74364

       (2)(B) If the decedent's predeceasing spouse was not a 74365
resident of this state at the time of his death and if a marital 74366
deduction was allowed with respect to the transfer of such 74367
property to the decedent under section 2056(b)(7) of the "Internal 74368
Revenue Code of 1986," 26 U.S.C. 2056(b)(7), as amended, in74369
connection with the determination of the value of the taxable 74370
estate of the decedent's predeceasing spouse;74371

       (3)(C) If the decedent's predeceasing spouse died prior to 74372
July 1, 1993, and if a marital deduction was allowed with respect 74373
to the transfer of such property to the decedent under division 74374
(A)(1) of section 5731.15 of the Revised Code as it existed prior 74375
to July 1, 1993, in connection with the determination of the value 74376
of the taxable estate of the decedent's predeceasing spouse;74377

       (4)(D) If a qualified terminable interest property deduction 74378
was allowed with respect to the transfer of such property to the 74379
decedent under division (B) of section 5731.15 of the Revised 74380
Code, in connection with the determination of the value of the 74381
taxable estate of the decedent's predeceasing spouse.74382

       (B) The amendments made to this section by Amended Substitute 74383
House Bill No. 111 and substitute Senate Bill No. 336 of the 118th74384
general assembly that are effective on July 1, 1993, shall apply 74385
only to the estates of decedents who die on or after that date.74386

       Sec. 5731.14.  For purposes of the tax levied by section 74387
5731.02 of the Revised Code, the value of the taxable estate shall 74388
be determined by deducting from the value of the gross estate 74389
deductions provided for in sections 5731.15 to 5731.17 and 5731.2074390
of the Revised Code.74391

       Sec. 5731.18.  (A) In addition to the tax levied by section 74392
5731.02 of the Revised Code, a tax is hereby levied upon the 74393
transfer of the estate of every person dying on or after July 1, 74394
1968, who, at the time of his death was a resident of this state, 74395
in an amount equal to the maximum credit allowable by subtitle B, 74396
chapterChapter 11 of the Internal Revenue Code of 1954, 26 U.S.C. 74397
2011, as amended, for any taxes paid to any state.74398

       (B) The tax levied on any estate under this section shall be 74399
credited with the amount of the tax levied under section 5731.02 74400
of the Revised Code and with the amount of any estate,74401
inheritance, legacy, or succession taxes actually paid to any74402
state or territory of the United States or to the District of74403
Columbia on any property included in the decedent's gross estate74404
for federal estate tax purposes.74405

       (C) The additional tax levied under this section shall be74406
administered, collected, and paid as provided in section 5731.2474407
of the Revised Code.74408

       Sec. 5731.181.  (A) For purposes of this section,74409
"generation-skipping transfer," "taxable distribution," and74410
"taxable termination" have the same meaning as in Chapter 13 of74411
subtitle B of the Internal Revenue Code of 1986, 100 Stat. 2718,74412
26 U.S.C. 2601-2624, as amended.74413

       (B) A tax is hereby levied upon every generation-skipping74414
transfer of property having a situs in this state, that occurs at74415
the same time as, and as a result of, the death of an individual,74416
in an amount equal to the credit allowed by Chapter 13 of subtitle 74417
B of the Internal Revenue Code of 1986, 100 Stat. 2718, 26 U.S.C. 74418
2601-2624, as amended, for any taxes paid to any state in respect 74419
of any property included in the generation-skipping transfer.74420

       For purposes of this division, "property having a situs in74421
this state" includes all the following:74422

       (1) Real property situated in this state;74423

       (2) Tangible personal property having an actual situs in this 74424
state;74425

       (3) Intangible personal property employed in carrying on a74426
business in this state;74427

       (4) Intangible personal property owned by a trust, the74428
trustee of which resides in or has its principal place of business 74429
in this state, or, if there is more than one trustee of the trust, 74430
the principal place of administration of which is in this state.74431

       (C) The return with respect to the generation-skipping tax74432
levied by division (B) of this section shall be filed in the form74433
that the tax commissioner shall prescribe, on or before the day74434
prescribed by law, including extensions, for filing the74435
generation-skipping transfer tax return under Chapter 13 of74436
subtitle B of the Internal Revenue Code of 1986, 100 Stat. 2718,74437
26 U.S.C. 2601-2624, as amended, for the same generation-skipping74438
transfer. The return shall be filed by the distributee in the case 74439
of a taxable distribution and by the trustee in the case of a 74440
taxable termination.74441

       (D) The generation-skipping tax levied by division (B) of74442
this section shall be paid, without notice or demand by the tax74443
commissioner, with the return, and shall be charged, collected,74444
and administered in the same manner as estate taxes levied by this 74445
chapter. This chapter is generally applicable to, except to the 74446
extent it is inconsistent with the nature of, the74447
generation-skipping tax.74448

       (E) If another state levies a generation-skipping tax on a74449
transfer described in division (B) of this section, the tax74450
commissioner may enter into a compromise of the74451
generation-skipping tax levied by division (B) of this section in74452
the manner provided in section 5731.35 of the Revised Code, except 74453
that no approval of any probate court is required. If such a 74454
compromise agreement is made, no interest and penalties shall 74455
accrue for the period prior to the execution of the agreement and 74456
for sixty days after its execution.74457

       Sec. 5731.22. (A) If the executor, administrator, or other74458
person required to file a return fails to file the return required 74459
by this chapter or to pay the tax due under this chapter on or 74460
before the date prescribed therefor, determined with regard to any 74461
extension of time for filing or payment, unless it is shown that 74462
such failure is due to reasonable cause and not due to willful 74463
neglect, there shall be added to the amount of tax as finally 74464
determined a penalty determined by the tax commissioner, in the 74465
amount of fiveten per cent of the amount of that tax if the 74466
failure is not for more than one month, or, if the failure is for 74467
more than one month, in the amount of five per cent of the amount 74468
of that tax plus an additional five per cent for each additional 74469
month or fraction of a month during which the failure continues, 74470
not exceeding twenty-five per cent in the aggregate. If, due to 74471
fraud, there is a failure to file the return or an underpayment of 74472
tax due under this chapter, there shall be added to the amount of 74473
tax as finally determined a penalty determined by the tax 74474
commissioner, in an amount not to exceed ten thousand dollarsthe 74475
tax due and unpaid. The penaltiespenalty imposed by this section 74476
shall be collected at the same time and in the same manner as the 74477
tax itself.74478

       The penaltiespenalty shall be charged against the executor,74479
administrator, or other person having custody or control of any74480
property the transfer of which is subject to estate tax, and such74481
executor, administrator, or other person is personally liable for74482
the penalties. Such penaltiespenalty. The penalty shall be 74483
divided in the same manner prescribed for the division of the tax 74484
in sections 5731.50 and 5731.51 of the Revised Code.74485

       (B) The county auditor, upon consultation with the county 74486
treasurer, shall remit a penalty imposed under this section on a 74487
person if that person applies for remission and shows that the 74488
failure to file the return or to pay the tax due under this 74489
chapter on or before the date prescribed for such filing or 74490
payment, determined with regard to any extension, was due to 74491
reasonable cause and not willful neglect. The county auditor shall 74492
notify the applicant of the remission decision by mail. If the 74493
county auditor denies the applicant's application for remission, 74494
the applicant, within sixty days after the notice of the county 74495
auditor's decision is mailed, may apply to the tax commissioner 74496
for review of the county auditor's decision. The application may 74497
be filed in person or by certified mail. If the application is 74498
filed by certified mail, the date of the United States postmark 74499
placed on the sender's receipt by the postal service shall be 74500
treated as the date of filing. The tax commissioner shall consider 74501
the application, determine whether the penalty should be remitted, 74502
and certify the determination to the applicant, the county 74503
auditor, and the county treasurer. The county auditor and county 74504
treasurer shall make any settlement, and the county treasurer 74505
shall correct the accounts required to be kept under section 74506
5731.46 of the Revised Code, as necessitated by the tax 74507
commissioner's determination. The applicant may file an exception 74508
to the tax commissioner's determination with the probate court as 74509
provided under section 5731.30 of the Revised Code.74510

       The tax commissioner may issue orders and instructions for 74511
the uniform implementation of this division by the county auditors 74512
and county treasurers of all counties, and such officers shall 74513
follow such orders and instructions.74514

       Sec. 5731.23.  Subject to division (A) of section 5731.25 of 74515
the Revised Code or any other statute extending the time for74516
payment of an estate tax, the tax levied by section 5731.02 and74517
division (A) of section 5731.19 of the Revised Code shall, without 74518
notice or demand by the tax commissioner, be due and payable by 74519
the person liable for it, at the expiration of nine months from 74520
the date of the decedent's death, to the treasurer of the county. 74521
If any amount of tax levied by section 5731.02 or division (A) of 74522
section 5731.19 of the Revised Code is not paid on or before nine 74523
months from the date of the decedent's death, interest on such 74524
amount shall be paid for the period from such date to the date 74525
paid, computed at the rate per annum prescribed byfederal 74526
short-term rate determined by the tax commissioner under section 74527
5703.47 of the Revised Code. Interest at the same rate shall be 74528
paid on any amount of tax determined to be due by way of 74529
deficiency from nine months from the date of the decedent's death 74530
to the date of payment thereof. Such interest shall be charged and 74531
collected in the same manner as the tax.74532

       Interest computed at the rate per annum prescribed byfederal 74533
short-term rate determined by the tax commissioner under section 74534
5703.47 of the Revised Code shall be allowed and paid upon any 74535
overpayment of tax levied by section 5731.02 or division (A) of 74536
section 5731.19 of the Revised Code from nine months from the date 74537
of the decedent's death or the date of payment of the tax, 74538
whichever is later, to the date such overpayment is repaid. Such 74539
payment may be made upon an estimated basis whether or not a74540
return is filed, and shall be charged and collected in the same74541
manner as provided in section 5731.21 of the Revised Code.74542

       At any time after nine months from the date of the decedent's 74543
death, payment of an estimated deficiency may be made and shall be 74544
credited against any deficiency of tax finally determined. 74545
Interest on any deficiency ultimately determined to be due shall 74546
be charged only upon the unpaid portion thereof.74547

       Sec. 5731.39.  (A) No corporation organized or existing under 74548
the laws of this state shall transfer on its books or issue a new 74549
certificate for any share of its capital stock registered in the 74550
name of a decedent, or in trust for a decedent, or in the name of 74551
a decedent and another person or persons, without the written 74552
consent of the tax commissioner.74553

       (B) No safe deposit company, trust company, financial74554
institution as defined in division (A) of section 5725.01 of the74555
Revised Code or other corporation or person, having in possession, 74556
control, or custody a deposit standing in the name of a decedent, 74557
or in trust for a decedent, or in the name of a decedent and 74558
another person or persons, shall deliver or transfer an amount in 74559
excess of three-fourths of the total value of such deposit, 74560
including accrued interest and dividends, as of the date of 74561
decedent's death, without the written consent of the tax74562
commissioner. The written consent of the tax commissioner need not 74563
be obtained prior to the delivery or transfer of amounts having a 74564
value of three-fourths or less of said total value.74565

       (C) No life insurance company shall pay the proceeds of an74566
annuity or matured endowment contract, or of a life insurance74567
contract payable to the estate of a decedent, or of any other74568
insurance contract taxable under Chapter 5731. of the Revised74569
Code, without the written consent of the tax commissioner. Any74570
life insurance company may pay the proceeds of any insurance74571
contract not specified in this division (C) without the written74572
consent of the tax commissioner.74573

       (D) No trust company or other corporation or person shall pay 74574
the proceeds of any death benefit, retirement, pension or profit 74575
sharing plan in excess of two thousand dollars, without the 74576
written consent of the tax commissioner. Such trust company or 74577
other corporation or person, however, may pay the proceeds of any 74578
death benefit, retirement, pension, or profit-sharing plan which 74579
consists of insurance on the life of the decedent payable to a 74580
beneficiary other than the estate of the insured without the74581
written consent of the tax commissioner.74582

       (E) No safe deposit company, trust company, financial74583
institution as defined in division (A) of section 5725.01 of the74584
Revised Code, or other corporation or person, having in74585
possession, control, or custody securities, assets, or other74586
property (including the shares of the capital stock of, or other74587
interest in, such safe deposit company, trust company, financial74588
institution as defined in division (A) of section 5725.01 of the74589
Revised Code, or other corporation), standing in the name of a74590
decedent, or in trust for a decedent, or in the name of a decedent 74591
and another person or persons, and the transfer of which is 74592
taxable under Chapter 5731. of the Revised Code, shall deliver or 74593
transfer any such securities, assets, or other property which have 74594
a value as of the date of decedent's death in excess of74595
three-fourths of the total value thereof, without the written74596
consent of the tax commissioner. The written consent of the tax74597
commissioner need not be obtained prior to the delivery or74598
transfer of any such securities, assets, or other property having74599
a value of three-fourths or less of said total value.74600

       (F) No safe deposit company, financial institution as defined 74601
in division (A) of section 5725.01 of the Revised Code, or other 74602
corporation or person having possession or control of a safe 74603
deposit box or similar receptacle standing in the name of a74604
decedent or in the name of the decedent and another person or74605
persons, or to which the decedent had a right of access, except74606
when such safe deposit box or other receptacle stands in the name74607
of a corporation or partnership, or in the name of the decedent as 74608
guardian or executor, shall deliver any of the contents thereof 74609
unless the safe deposit box or similar receptacle has been opened 74610
and inventoried in the presence of the tax commissioner or the 74611
commissioner's agent, and a written consent to transfer issued; 74612
provided, however, that a safe deposit company, financial74613
institution, or other corporation or person having possession or74614
control of a safe deposit box may deliver wills, deeds to burial74615
lots, and insurance policies to a representative of the decedent,74616
but that a representative of the safe deposit company, financial74617
institution, or other corporation or person must supervise the74618
opening of the box and make a written record of the wills, deeds,74619
and policies removed. Such written record shall be included in the 74620
tax commissioner's inventory records.74621

       (G) Notwithstanding any provision of this section:74622

       (1) The tax commissioner may authorize any delivery or 74623
transfer or waive any of the foregoing requirements under such 74624
terms and conditions as the commissioner may prescribe;74625

       (2) An adult care facility, as defined in section 3722.01 of 74626
the Revised Code, or a home, as defined in section 3721.10 of the 74627
Revised Code, may transfer or use the money in a personal needs 74628
allowance account in accordance with section 5111.1125111.113 of 74629
the Revised Code without the written consent of the tax 74630
commissioner, and without the account having been opened and 74631
inventoried in the presence of the commissioner or the74632
commissioner's agent. 74633

       Failure to comply with this section shall render such safe 74634
deposit company, trust company, life insurance company, financial 74635
institution as defined in division (A) of section 5725.01 of the 74636
Revised Code, or other corporation or person liable for the amount 74637
of the taxes and interest due under the provisions of Chapter 74638
5731. of the Revised Code on the transfer of such stock, deposit, 74639
proceeds of an annuity or matured endowment contract or of a life 74640
insurance contract payable to the estate of a decedent, or other 74641
insurance contract taxable under Chapter 5731. of the Revised 74642
Code, proceeds of any death benefit, retirement, pension, or 74643
profit sharing plan in excess of two thousand dollars, or 74644
securities, assets, or other property of any resident decedent, 74645
and in addition thereto, to a penalty of not less than five 74646
hundred or more than five thousand dollars.74647

       Sec. 5731.41.  To enforce section 5731.39 of the Revised74648
Code, and to administer Chapters 5713. and 4503. of the Revised 74649
Code the tax commissioner may appoint agents in the unclassified74650
civil service who shall perform such duties as are prescribed by74651
the commissioner. Such agents shall, as compensation, receive74652
annually eight cents per capita for each full one thousand of the74653
first twenty thousand of the population of the county and two74654
cents per capita for each full one thousand over twenty thousand74655
of the population of the county, as shown by the last federal74656
census, which shall be paid in equal monthly installments from the 74657
undivided inheritance or estate tax in the county treasury on the 74658
warrant of the county auditor or from the county real estate 74659
assessment fund pursuant to division (B)(6) of section 325.31 of 74660
the Revised Code, any other provision of law to the contrary 74661
notwithstanding. The amount paid to any agent in the unclassified 74662
service for all of the duties performed in estate tax matters74663
under this section, as directed by the commissioner, shall not 74664
exceed three thousand nor be less than twelve hundred dollars in 74665
any calendar year.74666

       Sec. 5733.01.  (A) The tax provided by this chapter for74667
domestic corporations shall be the amount charged against each74668
corporation organized for profit under the laws of this state and74669
each nonprofit corporation organized pursuant to Chapter 1729. of74670
the Revised Code, except as provided in sections 5733.09 and74671
5733.10 of the Revised Code, for the privilege of exercising its74672
franchise during the calendar year in which that amount is74673
payable, and the tax provided by this chapter for foreign74674
corporations shall be the amount charged against each corporation74675
organized for profit and each nonprofit corporation organized or74676
operating in the same or similar manner as nonprofit corporations74677
organized under Chapter 1729. of the Revised Code, under the laws74678
of any state or country other than this state, except as provided74679
in sections 5733.09 and 5733.10 of the Revised Code, for the74680
privilege of doing business in this state, owning or using a part74681
or all of its capital or property in this state, holding a74682
certificate of compliance with the laws of this state authorizing74683
it to do business in this state, or otherwise having nexus in or74684
with this state under the Constitution of the United States,74685
during the calendar year in which that amount is payable.74686

       (B) A corporation is subject to the tax imposed by section74687
5733.06 of the Revised Code for each calendar year that it is so74688
organized, doing business, owning or using a part or all of its74689
capital or property, holding a certificate of compliance, or74690
otherwise having nexus in or with this state under the74691
Constitution of the United States, on the first day of January of74692
that calendar year.74693

       (C) Any corporation subject to this chapter that is not74694
subject to the federal income tax shall file its returns and74695
compute its tax liability as required by this chapter in the same74696
manner as if that corporation were subject to the federal income74697
tax.74698

       (D) For purposes of this chapter, a federally chartered74699
financial institution shall be deemed to be organized under the74700
laws of the state within which its principal office is located.74701

       (E) AnyFor purposes of this chapter, any person, as defined 74702
in section 5701.01 of the Revised Code, shall be treated as a74703
corporation for purposes of this chapter if the person is 74704
classified for federal income tax purposes as an association 74705
taxable as a corporation, and an equity interest in the person 74706
shall be treated as capital stock of the person.74707

       (F) For the purposes of this chapter, "disregarded entity"74708
has the same meaning as in division (D) of section 5745.01 of the74709
Revised Code.74710

       (1) A person's interest in a disregarded entity, whether held 74711
directly or indirectly, shall be treated as the person's ownership 74712
of the assets and liabilities of the disregarded entity, and the 74713
income, including gain or loss, shall be included in the person's 74714
net income under this chapter.74715

       (2) Any sale, exchange, or other disposition of the person's74716
interest in the disregarded entity, whether held directly or74717
indirectly, shall be treated as a sale, exchange, or other74718
disposition of the person's share of the disregarded entity's74719
underlying assets or liabilities, and the gain or loss from such74720
sale, exchange, or disposition shall be included in the person's74721
net income under this chapter.74722

       (3) The disregarded entity's payroll, property, and sales74723
factors shall be included in the person's factors.74724

       (G) The tax a corporation is required to pay under this 74725
chapter shall be as follows:74726

        (1)(a) For financial institutions, the greater of the minimum 74727
payment required under division (E) of section 5733.06 of the 74728
Revised Code or the difference between all taxes charged the 74729
financial institution under this chapter, without regard to 74730
division (G)(2) of this section, less any credits allowable 74731
against such tax.74732

       (b) A corporation satisfying the description in division 74733
(E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised 74734
Code that is not a financial institution, insurance company, or 74735
dealer in intangibles is subject to the taxes imposed under this 74736
chapter as a corporation and not subject to tax as a financial 74737
institution, and shall pay the greater of the minimum payment 74738
required under division (E) of section 5733.06 of the Revised Code 74739
or the difference between all the taxes charged under this 74740
chapter, without regard to division (G)(2) of this section, less 74741
any credits allowable against such tax.74742

        (2) For all corporations other than those persons described 74743
in division (G)(1)(a) or (b) of this section, the amount under 74744
division (G)(2)(a) of this section applicable to the tax year 74745
specified less the amount under division (G)(2)(b) of this 74746
section:74747

        (a)(i) For tax year 2005, the greater of the minimum payment 74748
required under division (E) of section 5733.06 of the Revised Code 74749
or the difference between all taxes charged the corporation under 74750
this chapter and any credits allowable against such tax;74751

        (ii) For tax year 2006, the greater of the minimum payment 74752
required under division (E) of section 5733.06 of the Revised Code 74753
or four-fifths of the difference between all taxes charged the 74754
corporation under this chapter and any credits allowable against 74755
such tax except the qualifying pass-through entity tax credit 74756
described in division (A)(30) and the refundable credits described 74757
in divisions (A)(31), (32), and (33) of section 5733.98 of the 74758
Revised Code;74759

        (iii) For tax year 2007, the greater of the minimum payment 74760
required under division (E) of section 5733.06 of the Revised Code 74761
or three-fifths of the difference between all taxes charged the 74762
corporation under this chapter and any credits allowable against 74763
such tax except the qualifying pass-through entity tax credit 74764
described in division (A)(30) and the refundable credits described 74765
in divisions (A)(31), (32), and (33) of section 5733.98 of the 74766
Revised Code;74767

        (iv) For tax year 2008, the greater of the minimum payment 74768
required under division (E) of section 5733.06 of the Revised Code 74769
or two-fifths of the difference between all taxes charged the 74770
corporation under this chapter and any credits allowable against 74771
such tax except the qualifying pass-through entity tax credit 74772
described in division (A)(30) and the refundable credits described 74773
in divisions (A)(31), (32), and (33) of section 5733.98 of the 74774
Revised Code;74775

        (v) For tax year 2009, the greater of the minimum payment 74776
required under division (E) of section 5733.06 of the Revised Code 74777
or one-fifth of the difference between all taxes charged the 74778
corporation under this chapter and any credits allowable against 74779
such tax except the qualifying pass-through entity tax credit 74780
described in division (A)(30) and the refundable credits described 74781
in divisions (A)(31), (32), and (33) of section 5733.98 of the 74782
Revised Code;74783

        (vi) For tax year 2010 and each tax year thereafter, no tax.74784

        (b) A corporation shall subtract from the amount calculated 74785
under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section 74786
any qualifying pass-through entity tax credit described in 74787
division (A)(30) and any refundable credits described in divisions 74788
(A)(31), (32), and (33) of section 5733.98 of the Revised Code to 74789
which the corporation is entitled. Any unused qualifying 74790
pass-through entity tax credit is not refundable.74791

        (c) For the purposes of computing the amount of a credit that 74792
may be carried forward to a subsequent tax year under division 74793
(G)(2) of this section, a credit is utilized against the tax for a 74794
tax year to the extent the credit applies against the tax for that 74795
tax year, even if the difference is then multiplied by the 74796
applicable fraction under division (G)(2)(a) of this section.74797

       (3) Nothing in division (G) of this section eliminates or 74798
reduces the tax imposed by section 5733.41 of the Revised Code on 74799
a qualifying pass-through entity.74800

       Sec. 5733.065.  (A) As used in this section, "litter stream74801
products" means:74802

       (1) Intoxicating liquor, beer, wine, mixed beverages, or74803
spirituous liquor as defined in section 4301.01 of the Revised74804
Code;74805

       (2) Soft drinks as defined in section 913.22 of the Revised74806
Code;74807

       (3) Glass, metal, plastic, or fiber containers with a74808
capacity of less than two gallons sold for the purpose of being74809
incorporated into or becoming a part of a product enumerated in74810
divisions (A)(1) and (2) of this section;74811

       (4) Container crowns and closures sold for the purpose of74812
being incorporated into or becoming a part of a product enumerated74813
in divisions (A)(1) and (2) of this section;74814

       (5) Packaging materials transferred or intended for transfer74815
of use or possession in conjunction with retail sales of products74816
enumerated in divisions (A)(1) and (2) of this section;74817

       (6) Packaging materials in the finished form in which they74818
are to be used, including sacks, bags, cups, lids, straws, plates,74819
wrappings, boxes, or containers of any type used in the packaging74820
or serving of food or beverages, when the food or beverages are74821
prepared for human consumption by a restaurant or take-out food74822
outlet at the premises where sold at retail and are delivered to a74823
purchaser for consumption off the premises where the food or74824
beverages are sold;74825

       (7) Cigarettes, cigars, tobacco, matches, candy, and gum.74826

       (B) For the purpose of providing additional funding for the74827
division of recycling and litter prevention under Chapter 1502. of74828
the Revised Code, there is hereby levied an additional tax on74829
corporations for the privilege of manufacturing or selling litter74830
stream products in this state. The tax imposed by this section is74831
in addition to the tax charged under section 5733.06 of the74832
Revised Code, computed at the rate prescribed by section 5733.06674833
of the Revised Code. This section does not apply for tax year 1981 74834
to a corporation whose taxable year for tax year 1981 ended on or74835
before June 30, 1980.74836

       (C) The tax shall be imposed upon each corporation subject to 74837
the tax imposed by section 5733.06 of the Revised Code that74838
manufactures or sells litter stream products in this state. The74839
tax for each year shall be in an amount equal to the greater of74840
either:74841

       (1) Twenty-two hundredths of one per cent upon the value of74842
that portion of the taxpayer's issued and outstanding shares of74843
stock as determined under division (B) of section 5733.05 of the74844
Revised Code that is subject to the rate contained in division (B)74845
of section 5733.06 of the Revised Code;74846

       (2) Fourteen one-hundredths of a mill times the value of the74847
taxpayer's issued and outstanding shares of stock as determined74848
under division (C) of section 5733.05 of the Revised Code.74849

       The additional tax charged any taxpayer or group of combined74850
taxpayers pursuant to this section for any tax year shall not74851
exceed five thousand dollars.74852

       (D)(1) In the case of a corporation engaged in the business74853
of manufacturing litter stream products, no tax shall be due under74854
this section unless the sale of litter stream products in this74855
state during the taxable year exceeds five per cent of the total74856
sales in this state of the corporation during that period or74857
unless the total sales in this state of litter stream products by74858
the corporation during the taxable year exceed ten million74859
dollars.74860

       (2) In the case of a corporation engaged in the business of74861
selling litter stream products in the form in which the item is or74862
is to be received, no tax shall be due under this section unless74863
the corporation's sales of litter stream products in this state74864
during the taxable year constitute more than five per cent of its74865
total sales in this state during that period.74866

       (3) In the case of a corporation transferring possession of74867
litter stream products included in division (A)(6) of this74868
section, in which food or beverages prepared for human consumption74869
are placed, when the food or beverages are prepared for retail74870
sale at the premises where sold and are delivered to a purchaser74871
for consumption off the premises where the food or beverages are74872
sold, no tax shall be due under this section unless such sales for74873
off-premises consumption during the taxable year exceed five per74874
cent of the corporation's total annual sales during the taxable74875
year.74876

       (E)(1) The tax imposed by this section is due in the74877
proportions and on the dates on which the tax imposed by section74878
5733.06 of the Revised Code may be paid without penalty.74879

       (2) Payment of the tax and any reports or returns required to 74880
enable the tax commissioner to determine the correct amount of the 74881
tax shall be submitted with and are due at the same time as74882
payments and reports required to be submitted under this chapter.74883

       (3) If the tax is not paid in full on or before the date74884
required by division (E)(1) of this section, the unpaid portion of74885
the tax due and unpaid shall be subject to all provisions of this74886
chapter for the collection of unpaid, delinquent taxes imposed by74887
section 5733.06 of the Revised Code, except that all such taxes,74888
interest, and penalties, when collected, shall be treated as74889
proceeds arising from the tax imposed by this section and shall be74890
deposited in the general revenue fund.74891

       The tax levied on corporations under this section does not74892
prohibit or otherwise limit the authority of municipal74893
corporations to impose an income tax on the income of such74894
corporations.74895

       Sec. 5733.066.  There shall be added to the rates contained 74896
in section 5733.06 of the Revised Code the following:74897

       (A) To the rate in division (A) of that section upon that74898
portion of the value of the taxpayer's issued and outstanding74899
shares of stock as determined under division (B) of section74900
5733.05 of the Revised Code that is subject to such rate, an74901
additional eleven-hundredths per cent upon that value to provide74902
funding for the division of recycling and litter prevention under 74903
Chapter 1502. of the Revised Code;74904

       (B) To the rate in division (B) of that section upon that74905
portion of the value so determined that is subject to that rate,74906
an additional twenty-two-hundredths per cent upon that value to74907
provide funding for the division recycling and litter prevention 74908
under Chapter 1502. of the Revised Code;74909

       (C) To the rate in division (C) of that section times that74910
portion of the value of the taxpayer's issued and outstanding74911
shares of stock as determined under division (C) of section74912
5733.05 of the Revised Code, an additional fourteen one-hundredths 74913
mills times that value to provide funding for the division of74914
recycling and litter prevention under Chapter 1502. of the Revised 74915
Code.74916

       The additional tax charged any taxpayer or group of combined 74917
taxpayers pursuant to this section for any tax year shall not 74918
exceed five thousand dollars.74919

       This section does not apply to any family farm corporation as 74920
defined in section 4123.01 of the Revised Code.74921

       The tax levied on corporations under this section does not74922
prohibit or otherwise limit the authority of municipal74923
corporations to impose an income tax on the income of such74924
corporations.74925

       Sec. 5733.33.  (A) As used in this section:74926

       (1) "Manufacturing machinery and equipment" means engines and 74927
machinery, and tools and implements, of every kind used, or74928
designed to be used, in refining and manufacturing. "Manufacturing 74929
machinery and equipment" does not include property acquired after 74930
December 31, 1999, that is used:74931

       (a) For the transmission and distribution of electricity;74932

       (b) For the generation of electricity, if fifty per cent or 74933
more of the electricity that the property generates is consumed, 74934
during the one-hundred-twenty-month period commencing with the 74935
date the property is placed in service, by persons that are not 74936
related members to the person who generates the electricity.74937

       (2) "New manufacturing machinery and equipment" means74938
manufacturing machinery and equipment, the original use in this74939
state of which commences with the taxpayer or with a partnership74940
of which the taxpayer is a partner. "New manufacturing machinery 74941
and equipment" does not include property acquired after December 74942
31, 1999, that is used:74943

       (a) For the transmission and distribution of electricity;74944

       (b) For the generation of electricity, if fifty per cent or 74945
more of the electricity that the property generates is consumed, 74946
during the one-hundred-twenty-month period commencing with the 74947
date the property is placed in service, by persons that are not 74948
related members to the person who generates the electricity.74949

       (3)(a) "Purchase" has the same meaning as in section74950
179(d)(2) of the Internal Revenue Code.74951

       (b) For purposes of this section, any property that is not 74952
manufactured or assembled primarily by the taxpayer is considered 74953
purchased at the time the agreement to acquire the property 74954
becomes binding. Any property that is manufactured or assembled 74955
primarily by the taxpayer is considered purchased at the time the 74956
taxpayer places the property in service in the county for which74957
the taxpayer will calculate the county excess amount.74958

       (c) Notwithstanding section 179(d) of the Internal Revenue74959
Code, a taxpayer's direct or indirect acquisition of new74960
manufacturing machinery and equipment is not purchased on or after74961
July 1, 1995, if the taxpayer, or a person whose relationship to 74962
the taxpayer is described in subparagraphs (A), (B), or (C) of 74963
section 179(d)(2) of the Internal Revenue Code, had directly or74964
indirectly entered into a binding agreement to acquire the74965
property at any time prior to July 1, 1995.74966

       (4) "Qualifying period" means the period that begins July 1,74967
1995, and ends December 31, 2015June 30, 2005.74968

       (5) "County average new manufacturing machinery and equipment 74969
investment" means either of the following:74970

       (a) The average annual cost of new manufacturing machinery 74971
and equipment purchased for use in the county during baseline 74972
years, in the case of a taxpayer that was in existence for more 74973
than one year during baseline years.74974

       (b) Zero, in the case of a taxpayer that was not in existence 74975
for more than one year during baseline years.74976

       (6) "Partnership" includes a limited liability company formed 74977
under Chapter 1705. of the Revised Code or under the laws of any74978
other state, provided that the company is not classified for74979
federal income tax purposes as an association taxable as a74980
corporation.74981

       (7) "Partner" includes a member of a limited liability 74982
company formed under Chapter 1705. of the Revised Code or under 74983
the laws of any other state, provided that the company is not 74984
classified for federal income tax purposes as an association 74985
taxable as a corporation.74986

       (8) "Distressed area" means either a municipal corporation74987
that has a population of at least fifty thousand or a county that 74988
meets two of the following criteria of economic distress, or a 74989
municipal corporation the majority of the population of which is 74990
situated in such a county:74991

       (a) Its average rate of unemployment, during the most recent 74992
five-year period for which data are available, is equal to at 74993
least one hundred twenty-five per cent of the average rate of 74994
unemployment for the United States for the same period;74995

       (b) It has a per capita income equal to or below eighty per 74996
cent of the median county per capita income of the United States 74997
as determined by the most recently available figures from the 74998
United States census bureau;74999

       (c)(i) In the case of a municipal corporation, at least 75000
twenty per cent of the residents have a total income for the most 75001
recent census year that is below the official poverty line;75002

       (ii) In the case of a county, in intercensal years, the 75003
county has a ratio of transfer payment income to total county 75004
income equal to or greater than twenty-five per cent.75005

       (9) "Eligible area" means a distressed area, a labor surplus 75006
area, an inner city area, or a situational distress area.75007

       (10) "Inner city area" means, in a municipal corporation that 75008
has a population of at least one hundred thousand and does not 75009
meet the criteria of a labor surplus area or a distressed area, 75010
targeted investment areas established by the municipal corporation 75011
within its boundaries that are comprised of the most recent census75012
block tracts that individually have at least twenty per cent of75013
their population at or below the state poverty level or other 75014
census block tracts contiguous to such census block tracts.75015

       (11) "Labor surplus area" means an area designated as a labor 75016
surplus area by the United States department of labor.75017

       (12) "Official poverty line" has the same meaning as in75018
division (A) of section 3923.51 of the Revised Code.75019

       (13) "Situational distress area" means a county or a75020
municipal corporation that has experienced or is experiencing a75021
closing or downsizing of a major employer, that will adversely75022
affect the county's or municipal corporation's economy. In order 75023
to be designated as a situational distress area for a period not 75024
to exceed thirty-six months, the county or municipal corporation 75025
may petition the director of development. The petition shall 75026
include written documentation that demonstrates all of the 75027
following adverse effects on the local economy:75028

       (a) The number of jobs lost by the closing or downsizing;75029

       (b) The impact that the job loss has on the county's or 75030
municipal corporation's unemployment rate as measured by the state 75031
director of job and family services;75032

       (c) The annual payroll associated with the job loss;75033

       (d) The amount of state and local taxes associated with the 75034
job loss;75035

       (e) The impact that the closing or downsizing has on the 75036
suppliers located in the county or municipal corporation.75037

       (14) "Cost" has the same meaning and limitation as in section75038
179(d)(3) of the Internal Revenue Code.75039

       (15) "Baseline years" means:75040

       (a) Calendar years 1992, 1993, and 1994, with regard to a 75041
credit claimed for the purchase during calendar year 1995, 1996, 75042
1997, or 1998 of new manufacturing machinery and equipment;75043

       (b) Calendar years 1993, 1994, and 1995, with regard to a 75044
credit claimed for the purchase during calendar year 1999 of new 75045
manufacturing machinery and equipment;75046

       (c) Calendar years 1994, 1995, and 1996, with regard to a 75047
credit claimed for the purchase during calendar year 2000 of new 75048
manufacturing machinery and equipment;75049

       (d) Calendar years 1995, 1996, and 1997, with regard to a 75050
credit claimed for the purchase during calendar year 2001 of new 75051
manufacturing machinery and equipment;75052

       (e) Calendar years 1996, 1997, and 1998, with regard to a 75053
credit claimed for the purchase during calendar year 2002 of new 75054
manufacturing machinery and equipment;75055

       (f) Calendar years 1997, 1998, and 1999, with regard to a 75056
credit claimed for the purchase during calendar year 2003 of new 75057
manufacturing machinery and equipment;75058

       (g) Calendar years 1998, 1999, and 2000, with regard to a 75059
credit claimed for the purchase during calendar year 2004 of new 75060
manufacturing machinery and equipment;75061

       (h) Calendar years 1999, 2000, and 2001, with regard to a 75062
credit claimed for the purchase during calendar year 2005on or 75063
after January 1, 2005, and on or before June 30, 2005, of new 75064
manufacturing machinery and equipment;75065

       (i) Calendar years 2000, 2001, and 2002, with regard to a 75066
credit claimed for the purchase during calendar year 2006 of new 75067
manufacturing machinery and equipment;75068

       (j) Calendar years 2001, 2002, and 2003, with regard to a 75069
credit claimed for the purchase during calendar year 2007 of new 75070
manufacturing machinery and equipment;75071

       (k) Calendar years 2002, 2003, and 2004, with regard to a 75072
credit claimed for the purchase during calendar year 2008 of new 75073
manufacturing machinery and equipment;75074

       (l) Calendar years 2003, 2004, and 2005, with regard to a 75075
credit claimed for the purchase during calendar year 2009 of new 75076
manufacturing machinery and equipment;75077

       (m) Calendar years 2004, 2005, and 2006, with regard to a 75078
credit claimed for the purchase during calendar year 2010 of new 75079
manufacturing machinery and equipment;75080

       (n) Calendar years 2005, 2006, and 2007, with regard to a 75081
credit claimed for the purchase during calendar year 2011 of new 75082
manufacturing machinery and equipment;75083

       (o) Calendar years 2006, 2007, and 2008, with regard to a 75084
credit claimed for the purchase during calendar year 2012 of new 75085
manufacturing machinery and equipment;75086

       (p) Calendar years 2007, 2008, and 2009, with regard to a 75087
credit claimed for the purchase during calendar year 2013 of new 75088
manufacturing machinery and equipment;75089

       (q) Calendar years 2008, 2009, and 2010, with regard to a 75090
credit claimed for the purchase during calendar year 2014 of new 75091
manufacturing machinery and equipment;75092

       (r) Calendar years 2009, 2010, and 2011, with regard to a 75093
credit claimed for the purchase during calendar year 2015 of new 75094
manufacturing machinery and equipment.75095

       (16) "Related member" has the same meaning as in section75096
5733.042 of the Revised Code.75097

       (B)(1) Subject to division (I) of this section, a75098
nonrefundable credit is allowed against the tax imposed by section 75099
5733.06 of the Revised Code for a taxpayer that purchases new 75100
manufacturing machinery and equipment during the qualifying75101
period, provided that the new manufacturing machinery and75102
equipment are installed in this state no later than December 31, 75103
2016 June 30, 2006. No credit shall be allowed under this section 75104
or section 5747.31 of the Revised Code for taxable years ending on 75105
or after July 1, 2005. The elimination of the credit for those 75106
taxable years includes the elimination of any remaining 75107
one-sevenths of credit amounts for which a portion was allowed for 75108
prior taxable years and the elimination of any credit 75109
carry-forward, but the purchases on which the credits were based 75110
remain subject to grants under section 122.173 of the Revised Code 75111
for those remaining one-seventh amounts or carry-forward amounts.75112

       (2)(a) Except as otherwise provided in division (B)(2)(b) of 75113
this section, a credit may be claimed under this section in excess 75114
of one million dollars only if the cost of all manufacturing 75115
machinery and equipment owned in this state by the taxpayer 75116
claiming the credit on the last day of the calendar year exceeds 75117
the cost of all manufacturing machinery and equipment owned in 75118
this state by the taxpayer on the first day of that calendar year.75119

       As used in division (B)(2)(a) of this section, "calendar 75120
year" means the calendar year in which the machinery and equipment 75121
for which the credit is claimed was purchased.75122

       (b) Division (B)(2)(a) of this section does not apply if the 75123
taxpayer claiming the credit applies for and is issued a waiver of 75124
the requirement of that division. A taxpayer may apply to the 75125
director of development for such a waiver in the manner prescribed 75126
by the director, and the director may issue such a waiver if the 75127
director determines that granting the credit is necessary to 75128
increase or retain employees in this state, and that the credit75129
has not caused relocation of manufacturing machinery and equipment 75130
among counties within this state for the primary purpose of75131
qualifying for the credit.75132

       (C)(1) Except as otherwise provided in division (C)(2) and 75133
division (I) of this section, the credit amount is equal to seven 75134
and one-half per cent of the excess of the cost of the new75135
manufacturing machinery and equipment purchased during the 75136
calendar year for use in a county over the county average new 75137
manufacturing machinery and equipment investment for that county.75138

       (2) Subject to division (I) of this section, as used in 75139
division (C)(2) of this section "county excess" means the 75140
taxpayer's excess cost for a county as computed under division 75141
(C)(1) of this section.75142

       Subject to division (I) of this section, a taxpayer with a 75143
county excess, whose purchases included purchases for use in any 75144
eligible area in the county, the credit amount is equal to 75145
thirteen and one-half per cent of the cost of the new 75146
manufacturing machinery and equipment purchased during the 75147
calendar year for use in the eligible areas in the county,75148
provided that the cost subject to the thirteen and one-half per 75149
cent rate shall not exceed the county excess. If the county excess 75150
is greater than the cost of the new manufacturing machinery and 75151
equipment purchased during the calendar year for use in eligible 75152
areas in the county, the credit amount also shall include an 75153
amount equal to seven and one-half per cent of the amount of the 75154
difference.75155

       (3) If a taxpayer is allowed a credit for purchases of new 75156
manufacturing machinery and equipment in more than one county or 75157
eligible area, it shall aggregate the amount of those credits each 75158
year.75159

       (4) The taxpayer shall claim one-seventh of the credit amount 75160
for the tax year immediately following the calendar year in which 75161
the new manufacturing machinery and equipment is purchased for use 75162
in the county by the taxpayer or partnership. One-seventh of the75163
taxpayer credit amount is allowed for each of the six ensuing tax 75164
years. Except for carried-forward amounts, the taxpayer is not 75165
allowed any credit amount remaining if the new manufacturing 75166
machinery and equipment is sold by the taxpayer or partnership or 75167
is transferred by the taxpayer or partnership out of the county 75168
before the end of the seven-year period unless, at the time of the 75169
sale or transfer, the new manufacturing machinery and equipment 75170
has been fully depreciated for federal income tax purposes.75171

       (5)(a) A taxpayer that acquires manufacturing machinery and 75172
equipment as a result of a merger with the taxpayer with whom 75173
commenced the original use in this state of the manufacturing 75174
machinery and equipment, or with a taxpayer that was a partner in 75175
a partnership with whom commenced the original use in this state 75176
of the manufacturing machinery and equipment, is entitled to any 75177
remaining or carried-forward credit amounts to which the taxpayer 75178
was entitled.75179

       (b) A taxpayer that enters into an agreement under division75180
(C)(3) of section 5709.62 of the Revised Code and that acquires 75181
manufacturing machinery or equipment as a result of purchasing a 75182
large manufacturing facility, as defined in section 5709.61 of the 75183
Revised Code, from another taxpayer with whom commenced the75184
original use in this state of the manufacturing machinery or 75185
equipment, and that operates the large manufacturing facility so 75186
purchased, is entitled to any remaining or carried-forward credit 75187
amounts to which the other taxpayer who sold the facility would 75188
have been entitled under this section had the other taxpayer not 75189
sold the manufacturing facility or equipment.75190

       (c) New manufacturing machinery and equipment is not 75191
considered sold if a pass-through entity transfers to another 75192
pass-through entity substantially all of its assets as part of a 75193
plan of reorganization under which substantially all gain and loss 75194
is not recognized by the pass-through entity that is transferring 75195
the new manufacturing machinery and equipment to the transferee 75196
and under which the transferee's basis in the new manufacturing 75197
machinery and equipment is determined, in whole or in part, by 75198
reference to the basis of the pass-through entity which 75199
transferred the new manufacturing machinery and equipment to the 75200
transferee.75201

       (d) Division (C)(5) of this section shall apply only if the 75202
acquiring taxpayer or transferee does not sell the new 75203
manufacturing machinery and equipment or transfer the new 75204
manufacturing machinery and equipment out of the county before the 75205
end of the seven-year period to which division (C)(4) of this 75206
section refers.75207

       (e) Division (C)(5)(b) of this section applies only to the 75208
extent that the taxpayer that sold the manufacturing machinery or 75209
equipment, upon request, timely provides to the tax commissioner 75210
any information that the tax commissioner considers to be 75211
necessary to ascertain any remaining or carried-forward amounts to 75212
which the taxpayer that sold the facility would have been entitled 75213
under this section had the taxpayer not sold the manufacturing 75214
machinery or equipment. Nothing in division (C)(5)(b) or (e) of 75215
this section shall be construed to allow a taxpayer to claim any 75216
credit amount with respect to the acquired manufacturing machinery 75217
or equipment that is greater than the amount that would have been 75218
available to the other taxpayer that sold the manufacturing 75219
machinery or equipment had the other taxpayer not sold the 75220
manufacturing machinery or equipment.75221

       (D) The taxpayer shall claim the credit in the order required 75222
under section 5733.98 of the Revised Code. Each year, any credit75223
amount in excess of the tax due under section 5733.06 of the 75224
Revised Code after allowing for any other credits that precede the 75225
credit under this section in that order may be carried forward for 75226
three tax years.75227

       (E) A taxpayer purchasing new manufacturing machinery and 75228
equipment and intending to claim the credit shall file, with the 75229
department of development, a notice of intent to claim the credit 75230
on a form prescribed by the department of development. The 75231
department of development shall inform the tax commissioner of the 75232
notice of intent to claim the credit. No credit may be claimed 75233
under this section for any manufacturing machinery and equipment 75234
with respect to which a notice was not filed by the date of a 75235
timely filed return, including extensions, for the taxable year 75236
that includes September 30, 2005.75237

       (F) The director of development shall annually certify, by 75238
the first day of January of each year during the qualifying 75239
period, the eligible areas for the tax credit for the calendar 75240
year that includes that first day of January. The director shall75241
send a copy of the certification to the tax commissioner.75242

       (G) New manufacturing machinery and equipment for which a75243
taxpayer claims the credit under section 5733.31, 5733.311, 75244
5747.26, or 5747.261 of the Revised Code shall not be considered 75245
new manufacturing machinery and equipment for purposes of the 75246
credit under this section.75247

       (H)(1) Notwithstanding sections 5733.11 and 5747.13 of the 75248
Revised Code, but subject to division (H)(2) of this section, the 75249
tax commissioner may issue an assessment against a person with 75250
respect to a credit claimed under this section for new 75251
manufacturing machinery and equipment described in division 75252
(A)(1)(b) or (2)(b) of this section, if the machinery or equipment 75253
subsequently does not qualify for the credit.75254

       (2) Division (H)(1) of this section shall not apply after the75255
twenty-fourth month following the last day of the period described 75256
in divisions (A)(1)(b) and (2)(b) of this section.75257

       (I) Notwithstanding any other provision of this section to 75258
the contrary, in the case of a qualifying controlled group, the 75259
credit available under this section to a taxpayer or taxpayers in 75260
the qualifying controlled group shall be computed as if all75261
corporations in the group were a single corporation. The credit 75262
shall be allocated to such a taxpayer or taxpayers in the group in 75263
any amount elected for the taxable year by the group. Such 75264
election shall be revocable and amendable during the period75265
described in division (B) of section 5733.12 of the Revised Code.75266

       This division applies to all purchases of new manufacturing75267
machinery and equipment made on or after January 1, 2001, and to75268
all baseline years used to compute any credit attributable to such75269
purchases; provided, that this division may be applied solely at75270
the election of the qualifying controlled group with respect to75271
all purchases of new manufacturing machinery and equipment made75272
before that date, and to all baseline years used to compute any75273
credit attributable to such purchases. The qualifying controlled75274
group at any time may elect to apply this division to purchases75275
made prior to January 1, 2001, subject to the following:75276

       (1) The election is irrevocable;75277

       (2) The election need not accompany a timely filed report, 75278
but the election may accompany a subsequently filed but timely 75279
application for refund, a subsequently filed but timely amended 75280
report, or a subsequently filed but timely petition for 75281
reassessment.75282

       Sec. 5733.351.  (A) As used in this section, "qualified75283
research expenses" has the same meaning as in section 41 of the75284
Internal Revenue Code.75285

       (B)(1) A nonrefundable credit is allowed against the tax75286
imposed by section 5733.06 of the Revised Code for tax year 200275287
for a taxpayer whose taxable year for tax year 2002 ended before75288
July 1, 2001. The credit shall equal seven per cent of the excess75289
of qualified research expenses incurred in this state by the75290
taxpayer between January 1, 2001, and the end of the taxable year,75291
over the taxpayer's average annual qualified research expenses75292
incurred in this state for the three preceding taxable years.75293

       (2) A nonrefundable credit also is allowed against the tax75294
imposed by section 5733.06 of the Revised Code for each tax year,75295
commencing with tax year 2004, and in the case of a corporation 75296
subject to division (G)(2) of section 5733.01 of the Revised Code 75297
ending with tax year 2008. The credit shall equal seven per cent 75298
of the excess of qualified research expenses incurred in this75299
state by the taxpayer for the taxable year over the taxpayer's75300
average annual qualified research expenses incurred in this state75301
for the three preceding taxable years.75302

       (3) The taxpayer shall claim the credit allowed under75303
division (B)(1) or (2) of this section in the order required by75304
section 5733.98 of the Revised Code. Any credit amount in excess75305
of the tax due under section 5733.06 of the Revised Code, after75306
allowing for any other credits that precede the credit under this75307
section in the order required under section 5733.98 of the Revised75308
Code, may be carried forward for seven taxable years, but the75309
amount of the excess credit allowed in any such year shall be75310
deducted from the balance carried forward to the next year. A 75311
corporation subject to division (G)(2) of section 5733.01 of the 75312
Revised Code may carry forward any credit not fully utilized by 75313
tax year 2008 and apply it against the tax levied by Chapter 5751. 75314
of the Revised Code to the extent allowed under section 5751.51 of 75315
the Revised Code, provided that the total number of taxable years 75316
under this section and calendar years under Chapter 5751. of the 75317
Revised Code for which the credit is carried forward shall not 75318
exceed seven.75319

       (C) In the case of a qualifying controlled group, the credit75320
allowed under division (B)(1) or (2) of this section to taxpayers75321
in the qualifying controlled group shall be computed as if all75322
corporations in the qualifying controlled group were a75323
consolidated, single taxpayer. The credit shall be allocated to75324
such taxpayers in any amount elected for the taxable year by the75325
qualifying controlled group. The election shall be revocable and75326
amendable during the period prescribed by division (B) of section75327
5733.12 of the Revised Code.75328

       Sec. 5733.352. (A) As used in this section:75329

        (1) "Borrower" means any person that receives a loan from the 75330
director of development under section 166.21 of the Revised Code, 75331
regardless of whether the borrower is subject to the taxes imposed 75332
by sections 5733.06, 5733.065, and 5733.066 of the Revised Code.75333

       (2) "Related member" has the same meaning as in section 75334
5733.042 of the Revised Code.75335

        (3) "Qualified research and development loan payments" has 75336
the same meaning as in division (D) of section 166.21 of the 75337
Revised Code.75338

        (B) Beginning inwith tax year 2004, and in the case of a 75339
corporation subject to division (G)(2) of section 5733.01 of the 75340
Revised Code ending with tax year 2008, a nonrefundable credit is 75341
allowed against the taxes imposed by sections 5733.06, 5733.065, 75342
and 5733.066 of the Revised Code equal to a borrower's qualified 75343
research and development loan payments made during the calendar 75344
year immediately preceding the tax year for which the credit is 75345
claimed. The amount of the credit for a tax year shall not exceed 75346
one hundred fifty thousand dollars. No taxpayer is entitled to 75347
claim a credit under this section unless it has obtained a 75348
certificate issued by the director of development under division 75349
(D) of section 166.21 of the Revised Code. The credit shall be 75350
claimed in the order required under section 5733.98 of the Revised 75351
Code. The credit, to the extent it exceeds the taxpayer's tax 75352
liability for the tax year after allowance for any other credits 75353
that precede the credit under this section in that order, shall be 75354
carried forward to the next succeeding tax year or years until 75355
fully used. A corporation subject to division (G)(2) of section 75356
5733.01 of the Revised Code may carry forward any credit not fully 75357
utilized by tax year 2008 and apply it against the tax levied by 75358
Chapter 5751. of the Revised Code to the extent allowed under 75359
section 5751.52 of the Revised Code.75360

        (C) A borrower entitled to a credit under this section may 75361
assign the credit, or a portion thereof, to any of the following:75362

        (1) A related member of that borrower;75363

        (2) The owner or lessee of the eligible research and 75364
development project;75365

        (3) A related member of the owner or lessee of the eligible 75366
research and development project.75367

        A borrower making an assignment under this division shall 75368
provide written notice of the assignment to the tax commissioner 75369
and the director of development, in such form as the tax 75370
commissioner prescribes, before the credit that was assigned is 75371
used. The assignor may not claim the credit to the extent it was 75372
assigned to an assignee. The assignee may claim the credit only to 75373
the extent the assignor has not claimed it.75374

       (D) If any taxpayer is a partner in a partnership or a member 75375
in a limited liability company treated as a partnership for 75376
federal income tax purposes, the taxpayer shall be allowed the 75377
taxpayer's distributive or proportionate share of the credit 75378
available through the partnership or limited liability company.75379

        (E) The aggregate credit against the taxes imposed by 75380
sections 5733.06, 5733.065, 5733.066, and 5747.02 of the Revised 75381
Code that may be claimed under this section and section 5747.331 75382
of the Revised Code by a borrower as a result of qualified 75383
research and development loan payments attributable during a 75384
calendar year to any one loan shall not exceed one hundred fifty 75385
thousand dollars.75386

       Sec. 5733.40.  As used in sections 5733.40 and 5733.41 and75387
Chapter 5747. of the Revised Code:75388

       (A)(1) "Adjusted qualifying amount" means either of the75389
following:75390

       (a) The sum of aeach qualifying investor's distributive75391
share of the income, gain, expense, or loss of a qualifying75392
pass-through entity for the qualifying taxable year of the75393
qualifying pass-through entity multiplied by the apportionment75394
fraction defined in division (B) of this section, subject to75395
section 5733.401 of the Revised Code and divisions (A)(2) to (7)75396
of this section;75397

       (b) The sum of aeach qualifying beneficiary's share of the75398
qualifying net income and qualifying net gain distributed by a75399
qualifying trust for the qualifying taxable year of the qualifying75400
trust multiplied by the apportionment fraction defined in division75401
(B) of this section, subject to section 5733.401 of the Revised75402
Code and divisions (A)(2) to (6)(7) of this section.75403

       (2) The sum shall exclude any amount which, pursuant to the75404
Constitution of the United States, the Constitution of Ohio, or75405
any federal law is not subject to a tax on or measured by net75406
income.75407

       (3) The sum shall be increased byFor the purposes of 75408
Chapters 5733. and 5747. of the Revised Code, the profit or net 75409
income of the qualifying entity shall be increased by disallowing75410
all amounts representing expenses, other than amounts described in 75411
division (A)(7) of this section, that the qualifying entity paid 75412
to or incurred with respect to direct or indirect transactions 75413
with one or more related members, excluding the cost of goods sold75414
calculated in accordance with section 263A of the Internal Revenue75415
Code and United States department of the treasury regulations75416
issued thereunder. Nothing in division (A)(3) of this section75417
shall be construed to limit solely to this chapter the application75418
of section 263A of the Internal Revenue Code and United States75419
department of the treasury regulations issued thereunder.75420

       (4) The sum shall be increased byFor the purposes of 75421
Chapters 5733. and 5747. of the Revised Code, the profit or net 75422
income of the qualifying entity shall be increased by disallowing75423
all recognized losses, other than losses from sales of inventory 75424
the cost of which is calculated in accordance with section 263A of 75425
the Internal Revenue Code and United States department of the 75426
treasury regulations issued thereunder, with respect to all direct 75427
or indirect transactions with one or more related members. Losses75428
For the purposes of Chapters 5733. and 5747. of the Revised Code, 75429
losses from the sales of such inventory shall be allowed only to 75430
the extent calculated in accordance with section 482 of the 75431
Internal Revenue Code and United States department of the treasury75432
regulations issued thereunder. Nothing in division (A)(4) of this 75433
section shall be construed to limit solely to this section the 75434
application of section 263A and section 482 of the Internal 75435
Revenue Code and United States department of the treasury 75436
regulations issued thereunder.75437

       (5) The sum shall be increased or decreased by an amount75438
equal to the qualifying investor's or qualifying beneficiary's75439
distributive or proportionate share of the amount that the75440
qualifying entity would be required to add or deduct under75441
divisions (A)(20) and (21) of section 5747.01 of the Revised Code75442
if the qualifying entity were a taxpayer for the purposes of75443
Chapter 5747. of the Revised Code.75444

       (6) The sum shall be computed without regard to section75445
5733.051 or division (D) of section 5733.052 of the Revised Code.75446

       (7) For the purposes of Chapters 5733. and 5747. of the75447
Revised Code, guaranteed payments or compensation paid to75448
investors by a qualifying entity that is not subject to the tax75449
imposed by section 5733.06 of the Revised Code shall be considered75450
a distributive share of income of the qualifying entity. Division75451
(A)(7) of this section applies only to such payments or such75452
compensation paid to an investor who at any time during the75453
qualifying entity's taxable year holds at least a twenty per cent75454
direct or indirect interest in the profits or capital of the75455
qualifying entity.75456

       (B) "Apportionment fraction" means:75457

       (1) With respect to a qualifying pass-through entity other75458
than a financial institution, the fraction calculated pursuant to75459
division (B)(2) of section 5733.05 of the Revised Code as if the75460
qualifying pass-through entity were a corporation subject to the75461
tax imposed by section 5733.06 of the Revised Code;75462

       (2) With respect to a qualifying pass-through entity that is75463
a financial institution, the fraction calculated pursuant to75464
division (C) of section 5733.056 of the Revised Code as if the75465
qualifying pass-through entity were a financial institution75466
subject to the tax imposed by section 5733.06 of the Revised Code.75467

       (3) With respect to a qualifying trust, the fraction75468
calculated pursuant to division (B)(2) of section 5733.05 of the75469
Revised Code as if the qualifying trust were a corporation subject75470
to the tax imposed by section 5733.06 of the Revised Code, except75471
that the property, payroll, and sales fractions shall be75472
calculated by including in the numerator and denominator of the75473
fractions only the property, payroll, and sales, respectively,75474
directly related to the production of income or gain from75475
acquisition, ownership, use, maintenance, management, or75476
disposition of tangible personal property located in this state at75477
any time during the qualifying trust's qualifying taxable year or75478
of real property located in this state.75479

       (C) "Qualifying beneficiary" means any individual that,75480
during the qualifying taxable year of a qualifying trust, is a75481
beneficiary of that trust, but does not include an individual who75482
is a resident taxpayer for the purposes of Chapter 5747. of the75483
Revised Code for the entire qualifying taxable year of the75484
qualifying trust.75485

       (D) "Fiscal year" means an accounting period ending on any75486
day other than the thirty-first day of December.75487

       (E) "Individual" means a natural person.75488

       (F) "Month" means a calendar month.75489

       (G) "Partnership" has the same meaning as in section 5747.0175490
of the Revised Code.75491

       (H) "Investor" means any person that, during any portion of a75492
taxable year of a qualifying pass-through entity, is a partner,75493
member, shareholder, or investor in that qualifying pass-through75494
entity.75495

       (I) Except as otherwise provided in section 5733.402 or75496
5747.401 of the Revised Code, "qualifying investor" means any75497
investor except those described in divisions (I)(1) to (9) of this75498
section.75499

       (1) An investor satisfying one of the descriptions under75500
section 501(a) or (c) of the Internal Revenue Code, a partnership75501
with equity securities registered with the United States75502
securities and exchange commission under section 12 of the75503
"Securities Exchange Act of 1934," as amended, or an investor 75504
described in division (F) of section 3334.01, or division (A) or 75505
(C) of section 5733.09 of the Revised Code for the entire 75506
qualifying taxable year of the qualifying pass-through entity.75507

       (2) An investor who is either an individual or an estate and75508
is a resident taxpayer for the purposes of section 5747.01 of the75509
Revised Code for the entire qualifying taxable year of the75510
qualifying pass-through entity.75511

       (3) An investor who is an individual for whom the qualifying75512
pass-through entity makes a good faith and reasonable effort to75513
comply fully and timely with the filing and payment requirements75514
set forth in division (D) of section 5747.08 of the Revised Code75515
and section 5747.09 of the Revised Code with respect to the75516
individual's adjusted qualifying amount for the entire qualifying75517
taxable year of the qualifying pass-through entity.75518

       (4) An investor that is another qualifying pass-through75519
entity having only investors described in division (I)(1), (2),75520
(3), or (6) of this section during the three-year period beginning75521
twelve months prior to the first day of the qualifying taxable75522
year of the qualifying pass-through entity.75523

       (5) An investor that is another pass-through entity having no 75524
investors other than individuals and estates during the qualifying 75525
taxable year of the qualifying pass-through entity in which it is 75526
an investor, and that makes a good faith and reasonable effort to 75527
comply fully and timely with the filing and payment requirements 75528
set forth in division (D) of section 5747.08 of the Revised Code 75529
and section 5747.09 of the Revised Code with respect to investors 75530
that are not resident taxpayers of this state for the purposes of 75531
Chapter 5747. of the Revised Code for the entire qualifying 75532
taxable year of the qualifying pass-through entity in which it is 75533
an investor.75534

       (6) An investor that is a financial institution required to75535
calculate the tax in accordance with division (D)(E) of section75536
5733.06 of the Revised Code on the first day of January of the75537
calendar year immediately following the last day of the financial75538
institution's calendar or fiscal year in which ends the taxpayer's75539
taxable year.75540

       (7) An investor other than an individual that satisfies all75541
the following:75542

       (a) The investor submits a written statement to the75543
qualifying pass-through entity stating that the investor75544
irrevocably agrees that the investor has nexus with this state75545
under the Constitution of the United States and is subject to and75546
liable for the tax calculated under division (A) or (B) of section75547
5733.06 of the Revised Code with respect to the investor's75548
adjusted qualifying amount for the entire qualifying taxable year75549
of the qualifying pass-through entity. The statement is subject to 75550
the penalties of perjury, shall be retained by the qualifying75551
pass-through entity for no fewer than seven years, and shall be75552
delivered to the tax commissioner upon request.75553

       (b) The investor makes a good faith and reasonable effort to75554
comply timely and fully with all the reporting and payment75555
requirements set forth in Chapter 5733. of the Revised Code with75556
respect to the investor's adjusted qualifying amount for the75557
entire qualifying taxable year of the qualifying pass-through75558
entity.75559

       (c) Neither the investor nor the qualifying pass-through75560
entity in which it is an investor, before, during, or after the75561
qualifying pass-through entity's qualifying taxable year, carries75562
out any transaction or transactions with one or more related75563
members of the investor or the qualifying pass-through entity75564
resulting in a reduction or deferral of tax imposed by Chapter75565
5733. of the Revised Code with respect to all or any portion of75566
the investor's adjusted qualifying amount for the qualifying75567
pass-through entity's taxable year, or that constitute a sham,75568
lack economic reality, or are part of a series of transactions the75569
form of which constitutes a step transaction or transactions or75570
does not reflect the substance of those transactions.75571

       (8) Any other investor that the tax commissioner may75572
designate by rule. The tax commissioner may adopt rules including75573
a rule defining "qualifying investor" or "qualifying beneficiary"75574
and governing the imposition of the withholding tax imposed by75575
section 5747.41 of the Revised Code with respect to an individual75576
who is a resident taxpayer for the purposes of Chapter 5747. of75577
the Revised Code for only a portion of the qualifying taxable year75578
of the qualifying entity.75579

       (9) An investor that is a trust or fund the beneficiaries of75580
which, during the qualifying taxable year of the qualifying75581
pass-through entity, are limited to the following:75582

       (a) A person that is or may be the beneficiary of a trust75583
subject to Subchapter D of Chapter 1 of Subtitle A of the Internal75584
Revenue Code.75585

       (b) A person that is or may be the beneficiary of or the75586
recipient of payments from a trust or fund that is a nuclear75587
decommissioning reserve fund, a designated settlement fund, or any75588
other trust or fund established to resolve and satisfy claims that75589
may otherwise be asserted by the beneficiary or a member of the75590
beneficiary's family. Sections 267(c)(4), 468A(e), and 468B(d)(2)75591
of the Internal Revenue Code apply to the determination of whether75592
such a person satisfies division (I)(9) of this section.75593

       (c) A person who is or may be the beneficiary of a trust75594
that, under its governing instrument, is not required to75595
distribute all of its income currently. Division (I)(9)(c) of this 75596
section applies only if the trust, prior to the due date for75597
filing the qualifying pass-through entity's return for taxes75598
imposed by section 5733.41 and sections 5747.41 to 5747.453 of the75599
Revised Code, irrevocably agrees in writing that for the taxable75600
year during or for which the trust distributes any of its income75601
to any of its beneficiaries, the trust is a qualifying trust and75602
will pay the estimated tax, and will withhold and pay the withheld75603
tax, as required under sections 5747.40 to 5747.453 of the Revised75604
Code.75605

       For the purposes of division (I)(9) of this section, a trust75606
or fund shall be considered to have a beneficiary other than75607
persons described under divisions (I)(9)(a) to (c) of this section75608
if a beneficiary would not qualify under those divisions under the75609
doctrines of "economic reality," "sham transaction," "step75610
doctrine," or "substance over form." A trust or fund described in75611
division (I)(9) of this section bears the burden of establishing75612
by a preponderance of the evidence that any transaction giving75613
rise to the tax benefits provided under division (I)(9) of this75614
section does not have as a principal purpose a claim of those tax75615
benefits. Nothing in this section shall be construed to limit75616
solely to this section the application of the doctrines referred75617
to in this paragraph.75618

       (J) "Qualifying net gain" means any recognized net gain with75619
respect to the acquisition, ownership, use, maintenance,75620
management, or disposition of tangible personal property located75621
in this state at any time during a trust's qualifying taxable year75622
or real property located in this state.75623

       (K) "Qualifying net income" means any recognized income, net75624
of related deductible expenses, other than distributions75625
deductions with respect to the acquisition, ownership, use,75626
maintenance, management, or disposition of tangible personal75627
property located in this state at any time during the trust's75628
qualifying taxable year or real property located in this state.75629

       (L) "Qualifying entity" means a qualifying pass-through75630
entity or a qualifying trust.75631

       (M) "Qualifying trust" means a trust subject to subchapter J75632
of the Internal Revenue Code that, during any portion of the75633
trust's qualifying taxable year, has income or gain from the75634
acquisition, management, ownership, use, or disposition of75635
tangible personal property located in this state at any time75636
during the trust's qualifying taxable year or real property75637
located in this state. "Qualifying trust" does not include a75638
person described in section 501(c) of the Internal Revenue Code or75639
a person described in division (C) of section 5733.09 of the75640
Revised Code.75641

       (N) "Qualifying pass-through entity" means a pass-through75642
entity as defined in section 5733.04 of the Revised Code,75643
excluding: a person described in section 501(c) of the Internal75644
Revenue Code,; a partnership with equity securities registered75645
with the United States securities and exchange commission under75646
section 12 of the Securities Exchange Act of 1934, as amended,; or 75647
a person described in division (C) of section 5733.09 of the 75648
Revised Code.75649

       (O) "Quarter" means the first three months, the second three75650
months, the third three months, or the last three months of a75651
qualifying entity's qualifying taxable year.75652

       (P) "Related member" has the same meaning as in division75653
(A)(6) of section 5733.042 of the Revised Code without regard to75654
division (B) of that section. However, for the purposes of75655
divisions (A)(3) and (4) of this section only, "related member"75656
has the same meaning as in division (A)(6) of section 5733.042 of75657
the Revised Code without regard to division (B) of that section,75658
but shall be applied by substituting "forty per cent" for "twenty75659
per cent" wherever "twenty per cent" appears in division (A) of75660
that section.75661

       (Q) "Return" or "report" means the notifications and reports75662
required to be filed pursuant to sections 5747.42 to 5747.45 of75663
the Revised Code for the purpose of reporting the tax imposed75664
under section 5733.41 or 5747.41 of the Revised Code, and included75665
declarations of estimated tax when so required.75666

       (R) "Qualifying taxable year" means the calendar year or the75667
qualifying entity's fiscal year ending during the calendar year,75668
or fractional part thereof, for which the adjusted qualifying75669
amount is calculated pursuant to sections 5733.40 and 5733.41 or75670
sections 5747.40 to 5747.453 of the Revised Code.75671

       (S) "Distributive share" includes the sum of the income,75672
gain, expense, or loss of a disregarded entity or qualified 75673
subchapter S subsidiary.75674

       Sec. 5733.41.  The purpose of the tax imposed by this section 75675
is to complement and to reinforce the tax imposed under section 75676
5733.06 of the Revised Code.75677

       For the same purposes for which the tax is levied under 75678
section 5733.06 of the Revised Code, there is hereby levied a tax 75679
on every qualifying pass-through entity having at least one 75680
qualifying investor that is not an individual. The tax imposed by 75681
this section is imposed on the sum of the adjusted qualifying 75682
amounts of the qualifying pass-through entity's qualifying 75683
investors that are not individuals as follows: for qualifying 75684
investors subject to division (G)(2) of section 5733.01 of the 75685
Revised Code, at six and eight-tenths per cent for the entity's 75686
taxable year ending in 2005, at five and one-tenth per cent for 75687
the entity's taxable year ending in 2006, at three and four-tenths 75688
per cent for the entity's taxable year ending in 2007, at one and 75689
seven-tenths per cent for the entity's taxable year ending in 75690
2008, and at zero per cent for the entity's taxable year ending in 75691
2009 or in subsequent years; and for all other qualifying 75692
investors that are not individuals, at the rate specified in 75693
division (B) of section 5733.06 of the Revised Code that is in 75694
effect on the last day of the entity's taxable year.75695

       The tax imposed by this section applies only if the 75696
qualifying entity has nexus with this state under the Constitution 75697
of the United States for any portion of the qualifying entity's 75698
qualifying taxable year, and the sum of the qualifying entity's 75699
adjusted qualifying amounts exceeds one thousand dollars for the 75700
qualifying entity's qualifying taxable year. This section does not 75701
apply to a pass-through entity if all of the partners, 75702
shareholders, members, or investors of the pass-through entity are 75703
taxpayers for the purposes of section 5733.04 of the Revised Code 75704
without regard to section 5733.09 of the Revised Code for the75705
entire qualifying taxable year of the pass-through entity.75706

       If, prior to the due date of the return, a qualifying 75707
pass-through entity receives from an investor a written 75708
representation, under penalties of perjury, that the investor is 75709
described in division (I)(1), (2), (6), (7), (8), or (9) of 75710
section 5733.40 of the Revised Code for the qualifying75711
pass-through entity's entire qualifying taxable year, the 75712
qualifying pass-through entity is not required to withhold or pay 75713
the taxes or estimated taxes imposed under this section or 75714
sections 5747.41 to 5747.453 of the Revised Code with respect to 75715
that investor for that qualifying taxable year, and is not subject 75716
to any interest or interest penalties for failure to withhold or 75717
pay those taxes or estimated taxes with respect to that investor75718
for that qualifying taxable year.75719

       If, prior to the due date of the return, a qualifying trust 75720
receives from a beneficiary of that trust a written75721
representation, under penalties of perjury, that the beneficiary75722
is a resident taxpayer for the purposes of Chapter 5747. of the 75723
Revised Code for the qualifying trust's entire qualifying taxable 75724
year, the qualifying trust is not required to withhold or pay the75725
taxes or estimated taxes imposed under this section or sections 75726
5747.41 to 5747.453 of the Revised Code with respect to that75727
beneficiary for that qualifying taxable year, and is not subject75728
to any interest or interest penalties for failure to withhold or75729
pay those taxes or estimated taxes with respect to that75730
beneficiary for that qualifying taxable year.75731

       The tax commissioner may adopt rules for the purpose of the 75732
tax levied by this section or section 5747.41 of the Revised Code,75733
including a rule defining "qualifying investor" or "qualifying 75734
beneficiary"," and a rule requiring or permitting a qualifying 75735
entity to combine its income with related members and to pay the 75736
tax and estimated tax on a combined basis.75737

       Sections 5747.10 to 5747.19 and 5747.42 to 5747.453 of the75738
Revised Code apply to a qualifying entity subject to the tax 75739
imposed under this section.75740

       The levy of the tax under this section does not prevent a 75741
municipal corporation or a joint economic development district 75742
created under section 715.70 or 715.71 or sections 715.72 to 75743
715.81 of the Revised Code from levying a tax on income.75744

       Sec. 5733.49. (A) Upon the issuance of a tax credit 75745
certificate by the Ohio venture capital authority under section 75746
150.07 of the Revised Code, a credit may be claimed against the75747
tax imposed by section 5733.06 of the Revised Code. The credit75748
shall be claimed for the tax year specified in the certificate75749
issued by the authority and in the order required under section75750
5733.98 of the Revised Code.75751

       (B) If the taxpayer elected a refundable credit under section 75752
150.07 of the Revised Code and the amount of the credit shown on 75753
the certificate does not exceed the tax otherwise due under 75754
section 5733.06, 5733.065, and 5733.066 of the Revised Code after 75755
all nonrefundable credits are deducted, then the taxpayer shall 75756
claim a refundable credit equal to the amount of the credit shown 75757
on the certificate.75758

       (C) If the taxpayer elected a refundable credit under section 75759
150.07 of the Revised Code, and the amount of the credit shown on 75760
the certificate exceeds the tax otherwise due under sections 75761
5733.06, 5733.065, and 5733.066 of the Revised Code after all 75762
nonrefundable credits, including the credit allowed under this 75763
section, are deducted in that order, the taxpayer shall receive a 75764
refund equal to seventy-five per cent of that excess. If the 75765
taxpayer elected a nonrefundable credit, the amount of the credit, 75766
claimed in that order, shall not exceed the tax otherwise due 75767
under those sections after all the taxpayer's credits are deducted 75768
in that order. Ifclaim a refundable credit equal to the sum of 75769
the following:75770

        (1) The amount, if any, of the tax otherwise due under 75771
sections 5733.06, 5733.065, and 5733.066 of the Revised Code after 75772
all nonrefundable credits are deducted;75773

        (2) Seventy-five per cent of the difference between the 75774
amount of the refundable credit shown on the certificate and the 75775
tax otherwise due under sections 5733.06, 5733.065, and 5733.066 75776
of the Revised Code after all nonrefundable credits are deducted.75777

       (D) If the taxpayer elected a nonrefundable credit and the 75778
credit to which the taxpayer would otherwise be entitled under 75779
this section for any tax year is greater than the tax otherwise 75780
due under sections 5733.06, 5733.065, and 5733.066 of the Revised 75781
Code, after allowing for any other credits that, under section 75782
5733.98 of the Revised Code, precede the credit allowed under this 75783
section, the excess shall be allowed as a nonrefundable credit in 75784
each of the ensuing ten tax years, but the amount of any excess 75785
credit allowed in the ensuing tax year shall be deducted from the 75786
balance carried forward to the next tax year.75787

       Sec. 5733.98.  (A) To provide a uniform procedure for75788
calculating the amount of tax imposed by section 5733.06 of the75789
Revised Code that is due under this chapter, a taxpayer shall75790
claim any credits to which it is entitled in the following order,75791
except as otherwise provided in section 5733.058 of the Revised75792
Code:75793

       (1) TheFor tax year 2005, the credit for taxes paid by a 75794
qualifying pass-through entity allowed under section 5733.0611 of 75795
the Revised Code;75796

       (2) The credit allowed for financial institutions under75797
section 5733.45 of the Revised Code;75798

       (3) The credit for qualifying affiliated groups under section75799
5733.068 of the Revised Code;75800

       (4) The subsidiary corporation credit under section 5733.06775801
of the Revised Code;75802

       (5) The savings and loan assessment credit under section75803
5733.063 of the Revised Code;75804

       (6) The credit for recycling and litter prevention donations75805
under section 5733.064 of the Revised Code;75806

       (7) The credit for employers that enter into agreements with75807
child day-care centers under section 5733.36 of the Revised Code;75808

       (8) The credit for employers that reimburse employee child 75809
care expenses under section 5733.38 of the Revised Code;75810

       (9) The credit for maintaining railroad active grade crossing75811
warning devices under section 5733.43 of the Revised Code;75812

       (10) The credit for purchases of lights and reflectors under75813
section 5733.44 of the Revised Code;75814

       (11) The job retention credit under division (B) of section75815
5733.0610 of the Revised Code;75816

       (12) The credit for losses on loans made under the Ohio 75817
venture capital program under sections 150.01 to 150.10 of the 75818
Revised Code if the taxpayer elected a nonrefundable credit under 75819
section 150.07 of the Revised Code;75820

       (13) The credit for purchases of new manufacturing machinery75821
and equipment under section 5733.31 or section 5733.311 of the75822
Revised Code;75823

       (14) The second credit for purchases of new manufacturing75824
machinery and equipment under section 5733.33 of the Revised Code;75825

       (15) The job training credit under section 5733.42 of the75826
Revised Code;75827

       (16) The credit for qualified research expenses under section 75828
5733.351 of the Revised Code;75829

       (17) The enterprise zone credit under section 5709.66 of the75830
Revised Code;75831

       (18) The credit for the eligible costs associated with a75832
voluntary action under section 5733.34 of the Revised Code;75833

       (19) The credit for employers that establish on-site child75834
day-care centers under section 5733.37 of the Revised Code;75835

       (20) The ethanol plant investment credit under section75836
5733.46 of the Revised Code;75837

       (21) The credit for purchases of qualifying grape production75838
property under section 5733.32 of the Revised Code;75839

       (22) The export sales credit under section 5733.069 of the75840
Revised Code;75841

       (23) The credit for research and development and technology75842
transfer investors under section 5733.35 of the Revised Code;75843

       (24) The enterprise zone credits under section 5709.65 of the75844
Revised Code;75845

       (25) The credit for using Ohio coal under section 5733.39 of75846
the Revised Code;75847

       (26) The research and development credit under section 75848
5733.352 of the Revised Code;75849

       (27) The credit for small telephone companies under section 75850
5733.57 of the Revised Code;75851

       (28)(27) The credit for eligible nonrecurring 9-1-1 charges 75852
under section 5733.55 of the Revised Code;75853

       (29)(28) The credit for providing programs to aid the 75854
communicatively impaired under section 5733.56 of the Revised 75855
Code;75856

       (30)(29) The research and development credit under section 75857
5733.352 of the Revised Code;75858

       (30) For tax years 2006 and subsequent tax years, the credit 75859
for taxes paid by a qualifying pass-through entity allowed under 75860
section 5733.0611 of the Revised Code;75861

       (31) The refundable jobs creation credit under division (A)75862
of section 5733.0610 of the Revised Code;75863

       (31)(32) The refundable credit for tax withheld under75864
division (B)(2) of section 5747.062 of the Revised Code;75865

       (32)(33) The credit for losses on loans made to the Ohio 75866
venture capital program under sections 150.01 to 150.10 of the 75867
Revised Code if the taxpayer elected a refundable credit under 75868
section 150.07 of the Revised Code.75869

       (B) For any credit except the credits enumerated in divisions 75870
(A)(30), (31), and (32), and (33) of this section, the amount of 75871
the credit for a tax year shall not exceed the tax due after 75872
allowing for any other credit that precedes it in the order 75873
required under this section. Any excess amount of a particular 75874
credit may be carried forward if authorized under the section 75875
creating that credit.75876

       Sec. 5737.03.  An annual excise tax is hereby levied on the75877
handling of grain, in lieu of all taxes on grain as property of75878
any person engaged in such business, for all the purposes for75879
which taxes would otherwise be levied on such grain as property in 75880
the taxing district in which any such business is carried on,75881
measured as follows:75882

       One-half(A) For the statement due in 2005, one-half mill per 75883
bushel upon all wheat and flax handled at one or more places in 75884
this state in any such business during the taxable year, as 75885
defined in section 5737.04 of the Revised Code, and one-fourth 75886
mill per bushel upon all other grain handled. The75887

       (B) For the statement due in 2006, one-fourth mill per bushel 75888
upon all wheat and flax handled at one or more places in this 75889
state in any such business during the taxable year, as defined in 75890
section 5737.04 of the Revised Code, and one-eighth mill per 75891
bushel upon all other grain handled.75892

        (C) No statement or tax is due in 2007 or any year 75893
thereafter.75894

        The tax imposed by this section shall not be paid by a track 75895
buyer, who shall be liable for the personal property taxes only, 75896
as levied by sections 5711.01 to 5711.36, inclusive, of the 75897
Revised Code.75898

       All grain included in the statements required by section75899
5737.04 of the Revised Code, upon the handling of which a tax is75900
imposed by this section, is exempt from taxation as personal75901
property. Any grain that would be included in such statements for 75902
taxable year 2007 or any year thereafter is exempt from taxation 75903
as personal property.75904

       Sec. 5739.01.  As used in this chapter:75905

       (A) "Person" includes individuals, receivers, assignees,75906
trustees in bankruptcy, estates, firms, partnerships,75907
associations, joint-stock companies, joint ventures, clubs,75908
societies, corporations, the state and its political subdivisions,75909
and combinations of individuals of any form.75910

       (B) "Sale" and "selling" include all of the following75911
transactions for a consideration in any manner, whether absolutely75912
or conditionally, whether for a price or rental, in money or by75913
exchange, and by any means whatsoever:75914

       (1) All transactions by which title or possession, or both,75915
of tangible personal property, is or is to be transferred, or a75916
license to use or consume tangible personal property is or is to75917
be granted;75918

       (2) All transactions by which lodging by a hotel is or is to75919
be furnished to transient guests;75920

       (3) All transactions by which:75921

       (a) An item of tangible personal property is or is to be75922
repaired, except property, the purchase of which would not be75923
subject to the tax imposed by section 5739.02 of the Revised Code;75924

       (b) An item of tangible personal property is or is to be75925
installed, except property, the purchase of which would not be75926
subject to the tax imposed by section 5739.02 of the Revised Code75927
or property that is or is to be incorporated into and will become75928
a part of a production, transmission, transportation, or75929
distribution system for the delivery of a public utility service;75930

       (c) The service of washing, cleaning, waxing, polishing, or75931
painting a motor vehicle is or is to be furnished;75932

       (d) Until August 1, 2003, industrial laundry cleaning 75933
services are or are to be provided and, on and after August 1, 75934
2003, laundry and dry cleaning services are or are to be provided;75935

       (e) Automatic data processing, computer services, or75936
electronic information services are or are to be provided for use75937
in business when the true object of the transaction is the receipt75938
by the consumer of automatic data processing, computer services,75939
or electronic information services rather than the receipt of75940
personal or professional services to which automatic data75941
processing, computer services, or electronic information services75942
are incidental or supplemental. Notwithstanding any other75943
provision of this chapter, such transactions that occur between75944
members of an affiliated group are not sales. An affiliated group75945
means two or more persons related in such a way that one person75946
owns or controls the business operation of another member of the75947
group. In the case of corporations with stock, one corporation75948
owns or controls another if it owns more than fifty per cent of75949
the other corporation's common stock with voting rights.75950

       (f) Telecommunications service, other than mobile75951
telecommunications service after July 31, 2002including prepaid 75952
calling service, prepaid wireless calling service, or ancillary 75953
service, is or is to be provided, but does not include75954
transactions by which local telecommunications service is obtained75955
from aincluding coin-operated telephone and paid for by using 75956
coinservice;75957

       (g) Landscaping and lawn care service is or is to be75958
provided;75959

       (h) Private investigation and security service is or is to be 75960
provided;75961

       (i) Information services or tangible personal property is75962
provided or ordered by means of a nine hundred telephone call;75963

       (j) Building maintenance and janitorial service is or is to75964
be provided;75965

       (k) Employment service is or is to be provided;75966

       (l) Employment placement service is or is to be provided;75967

       (m) Exterminating service is or is to be provided;75968

       (n) Physical fitness facility service is or is to be75969
provided;75970

       (o) Recreation and sports club service is or is to be75971
provided.75972

       (p) After July 31, 2002, mobile telecommunications service is75973
or is to be provided when that service is sitused to this state 75974
pursuant to the "Mobile Telecommunications Sourcing Act," Pub. L. 75975
No. 106-252, 114 Stat. 626 to 632 (2000), 4 U.S.C.A. 116 to 126, 75976
as amended.75977

       (q) On and after August 1, 2003, satellite broadcasting 75978
service is or is to be provided;75979

       (r)(q) On and after August 1, 2003, personal care service is 75980
or is to be provided to an individual. As used in this division, 75981
"personal care service" includes skin care, the application of 75982
cosmetics, manicuring, pedicuring, hair removal, tattooing, body 75983
piercing, tanning, massage, and other similar services. "Personal 75984
care service" does not include a service provided by or on the 75985
order of a licensed physician or licensed chiropractor, or the 75986
cutting, coloring, or styling of an individual's hair.75987

       (s)(r) On and after August 1, 2003, the transportation of 75988
persons by motor vehicle or aircraft is or is to be provided, when 75989
the transportation is entirely within this state, except for 75990
transportation provided by an ambulance service, by a transit bus, 75991
as defined in section 5735.01 of the Revised Code, and 75992
transportation provided by a citizen of the United States holding 75993
a certificate of public convenience and necessity issued under 49 75994
U.S.C. 41102;75995

       (t)(s) On and after August 1, 2003, motor vehicle towing 75996
service is or is to be provided. As used in this division, "motor 75997
vehicle towing service" means the towing or conveyance of a 75998
wrecked, disabled, or illegally parked motor vehicle.75999

       (u)(t) On and after August 1, 2003, snow removal service is 76000
or is to be provided. As used in this division, "snow removal 76001
service" means the removal of snow by any mechanized means, but 76002
does not include the providing of such service by a person that 76003
has less than five thousand dollars in sales of such service 76004
during the calendar year.76005

       (4) All transactions by which printed, imprinted,76006
overprinted, lithographic, multilithic, blueprinted, photostatic,76007
or other productions or reproductions of written or graphic matter76008
are or are to be furnished or transferred;76009

       (5) The production or fabrication of tangible personal76010
property for a consideration for consumers who furnish either76011
directly or indirectly the materials used in the production of76012
fabrication work; and include the furnishing, preparing, or76013
serving for a consideration of any tangible personal property76014
consumed on the premises of the person furnishing, preparing, or76015
serving such tangible personal property. Except as provided in76016
section 5739.03 of the Revised Code, a construction contract76017
pursuant to which tangible personal property is or is to be76018
incorporated into a structure or improvement on and becoming a76019
part of real property is not a sale of such tangible personal76020
property. The construction contractor is the consumer of such76021
tangible personal property, provided that the sale and76022
installation of carpeting, the sale and installation of76023
agricultural land tile, the sale and erection or installation of76024
portable grain bins, or the provision of landscaping and lawn care76025
service and the transfer of property as part of such service is76026
never a construction contract.76027

       As used in division (B)(5) of this section:76028

       (a) "Agricultural land tile" means fired clay or concrete76029
tile, or flexible or rigid perforated plastic pipe or tubing,76030
incorporated or to be incorporated into a subsurface drainage76031
system appurtenant to land used or to be used directly in76032
production by farming, agriculture, horticulture, or floriculture.76033
The term does not include such materials when they are or are to76034
be incorporated into a drainage system appurtenant to a building76035
or structure even if the building or structure is used or to be76036
used in such production.76037

       (b) "Portable grain bin" means a structure that is used or to 76038
be used by a person engaged in farming or agriculture to shelter 76039
the person's grain and that is designed to be disassembled without 76040
significant damage to its component parts.76041

       (6) All transactions in which all of the shares of stock of a 76042
closely held corporation are transferred, if the corporation is76043
not engaging in business and its entire assets consist of boats,76044
planes, motor vehicles, or other tangible personal property76045
operated primarily for the use and enjoyment of the shareholders;76046

       (7) All transactions in which a warranty, maintenance or76047
service contract, or similar agreement by which the vendor of the76048
warranty, contract, or agreement agrees to repair or maintain the76049
tangible personal property of the consumer is or is to be76050
provided;76051

       (8) ; (9) The transfer of copyrighted motion picture films 76052
used solely for advertising purposes, except that the transfer of 76053
such films for exhibition purposes is not a sale.76054

       (9) On and after August 1, 2003, all transactions by which 76055
tangible personal property is or is to be stored, except such 76056
property that the consumer of the storage holds for sale in the 76057
regular course of business.76058

       Except Other than as provided in this section, "sale" and 76059
"selling" do not include transfers of interest in leased property 76060
where the original lessee and the terms of the original lease 76061
agreement remain unchanged, or professional, insurance, or 76062
personal service transactions that involve the transfer of 76063
tangible personal property as an inconsequential element, for 76064
which no separate charges are made.76065

       (C) "Vendor" means the person providing the service or by76066
whom the transfer effected or license given by a sale is or is to76067
be made or given and, for sales described in division (B)(3)(i) of76068
this section, the telecommunications service vendor that provides76069
the nine hundred telephone service; if two or more persons are76070
engaged in business at the same place of business under a single76071
trade name in which all collections on account of sales by each76072
are made, such persons shall constitute a single vendor.76073

       Physicians, dentists, hospitals, and veterinarians who are76074
engaged in selling tangible personal property as received from76075
others, such as eyeglasses, mouthwashes, dentifrices, or similar76076
articles, are vendors. Veterinarians who are engaged in76077
transferring to others for a consideration drugs, the dispensing76078
of which does not require an order of a licensed veterinarian or76079
physician under federal law, are vendors.76080

       (D)(1) "Consumer" means the person for whom the service is76081
provided, to whom the transfer effected or license given by a sale76082
is or is to be made or given, to whom the service described in76083
division (B)(3)(f) or (i) of this section is charged, or to whom76084
the admission is granted.76085

       (2) Physicians, dentists, hospitals, and blood banks operated 76086
by nonprofit institutions and persons licensed to practice 76087
veterinary medicine, surgery, and dentistry are consumers of all 76088
tangible personal property and services purchased by them in 76089
connection with the practice of medicine, dentistry, the rendition 76090
of hospital or blood bank service, or the practice of veterinary 76091
medicine, surgery, and dentistry. In addition to being consumers 76092
of drugs administered by them or by their assistants according to 76093
their direction, veterinarians also are consumers of drugs that 76094
under federal law may be dispensed only by or upon the order of a 76095
licensed veterinarian or physician, when transferred by them to 76096
others for a consideration to provide treatment to animals as 76097
directed by the veterinarian.76098

       (3) A person who performs a facility management, or similar76099
service contract for a contractee is a consumer of all tangible76100
personal property and services purchased for use in connection76101
with the performance of such contract, regardless of whether title76102
to any such property vests in the contractee. The purchase of such 76103
property and services is not subject to the exception for resale 76104
under division (E)(1) of this section.76105

       (4)(a) In the case of a person who purchases printed matter76106
for the purpose of distributing it or having it distributed to the76107
public or to a designated segment of the public, free of charge,76108
that person is the consumer of that printed matter, and the76109
purchase of that printed matter for that purpose is a sale.76110

       (b) In the case of a person who produces, rather than76111
purchases, printed matter for the purpose of distributing it or76112
having it distributed to the public or to a designated segment of76113
the public, free of charge, that person is the consumer of all76114
tangible personal property and services purchased for use or76115
consumption in the production of that printed matter. That person76116
is not entitled to claim exemption under division (B)(43)(42)(f) 76117
of section 5739.02 of the Revised Code for any material 76118
incorporated into the printed matter or any equipment, supplies, 76119
or services primarily used to produce the printed matter.76120

       (c) The distribution of printed matter to the public or to a76121
designated segment of the public, free of charge, is not a sale to76122
the members of the public to whom the printed matter is76123
distributed or to any persons who purchase space in the printed76124
matter for advertising or other purposes.76125

       (5) A person who makes sales of any of the services listed in76126
division (B)(3) of this section is the consumer of any tangible76127
personal property used in performing the service. The purchase of76128
that property is not subject to the resale exception under76129
division (E)(1) of this section.76130

       (6) A person who engages in highway transportation for hire 76131
is the consumer of all packaging materials purchased by that 76132
person and used in performing the service, except for packaging 76133
materials sold by such person in a transaction separate from the 76134
service.76135

       (E) "Retail sale" and "sales at retail" include all sales,76136
except those in which the purpose of the consumer is to resell the 76137
thing transferred or benefit of the service provided, by a person 76138
engaging in business, in the form in which the same is, or is to 76139
be, received by the person.76140

       (F) "Business" includes any activity engaged in by any person 76141
with the object of gain, benefit, or advantage, either direct or 76142
indirect. "Business" does not include the activity of a person in 76143
managing and investing the person's own funds.76144

       (G) "Engaging in business" means commencing, conducting, or76145
continuing in business, and liquidating a business when the76146
liquidator thereof holds itself out to the public as conducting76147
such business. Making a casual sale is not engaging in business.76148

       (H)(1)(a) "Price," except as provided in divisions (H)(2) and76149
(3) of this section, means the total amount of consideration, 76150
including cash, credit, property, and services, for which tangible 76151
personal property or services are sold, leased, or rented, valued 76152
in money, whether received in money or otherwise, without any 76153
deduction for any of the following:76154

       (i) The vendor's cost of the property sold;76155

       (ii) The cost of materials used, labor or service costs, 76156
interest, losses, all costs of transportation to the vendor, all 76157
taxes imposed on the vendor, including the tax imposed under 76158
Chapter 5751. of the Revised Code, and any other expense of the 76159
vendor;76160

       (iii) Charges by the vendor for any services necessary to 76161
complete the sale;76162

       (iv) On and after August 1, 2003, delivery charges. As used 76163
in this division, "delivery charges" means charges by the vendor 76164
for preparation and delivery to a location designated by the 76165
consumer of tangible personal property or a service, including 76166
transportation, shipping, postage, handling, crating, and packing.76167

       (v) Installation charges;76168

       (vi) The value of exempt tangible personal property given to 76169
the consumer where taxable and exempt tangible personal property 76170
have been bundled together and sold by the vendor as a single 76171
product or piece of merchandiseCredit for any trade-in.76172

       (b) "Price" includes consideration received by the vendor 76173
from a third party, if the vendor actually receives the 76174
consideration from a party other than the consumer, and the 76175
consideration is directly related to a price reduction or discount 76176
on the sale; the vendor has an obligation to pass the price 76177
reduction or discount through to the consumer; the amount of the 76178
consideration attributable to the sale is fixed and determinable 76179
by the vendor at the time of the sale of the item to the consumer; 76180
and one of the following criteria is met:76181

       (i) The consumer presents a coupon, certificate, or other 76182
document to the vendor to claim a price reduction or discount 76183
where the coupon, certificate, or document is authorized, 76184
distributed, or granted by a third party with the understanding 76185
that the third party will reimburse any vendor to whom the coupon, 76186
certificate, or document is presented;76187

       (ii) The consumer identifies the consumer's self to the 76188
seller as a member of a group or organization entitled to a price 76189
reduction or discount. A preferred customer card that is available 76190
to any patron does not constitute membership in such a group or 76191
organization.76192

       (iii) The price reduction or discount is identified as a 76193
third party price reduction or discount on the invoice received by 76194
the consumer, or on a coupon, certificate, or other document 76195
presented by the consumer.76196

       (c) "Price" does not include any of the following:76197

       (i) Discounts, including cash, term, or coupons that are not 76198
reimbursed by a third party that are allowed by a vendor and taken 76199
by a consumer on a sale;76200

       (ii) Interest, financing, and carrying charges from credit 76201
extended on the sale of tangible personal property or services, if 76202
the amount is separately stated on the invoice, bill of sale, or 76203
similar document given to the purchaser;76204

       (iii) Any taxes legally imposed directly on the consumer that 76205
are separately stated on the invoice, bill of sale, or similar 76206
document given to the consumer. For the purpose of this division, 76207
the tax imposed under Chapter 5751. of the Revised Code is not a 76208
tax directly on the consumer, even if the tax or a portion thereof 76209
is separately stated.76210

       (iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this 76211
section, any discount allowed by an automobile manufacturer to its 76212
employee, or to the employee of a supplier, on the purchase of a 76213
new motor vehicle from a new motor vehicle dealer in this state.76214

       (2) In the case of a sale of any new motor vehicle by a new76215
motor vehicle dealer, as defined in section 4517.01 of the Revised76216
Code, in which another motor vehicle is accepted by the dealer as76217
part of the consideration received, "price" has the same meaning76218
as in division (H)(1) of this section, reduced by the credit76219
afforded the consumer by the dealer for the motor vehicle received76220
in trade.76221

       (3) In the case of a sale of any watercraft or outboard motor 76222
by a watercraft dealer licensed in accordance with section76223
1547.543 of the Revised Code, in which another watercraft,76224
watercraft and trailer, or outboard motor is accepted by the76225
dealer as part of the consideration received, "price" has the same76226
meaning as in division (H)(1) of this section, reduced by the76227
credit afforded the consumer by the dealer for the watercraft,76228
watercraft and trailer, or outboard motor received in trade. As 76229
used in this division, "watercraft" includes an outdrive unit 76230
attached to the watercraft.76231

       (4) In the case of a transaction in which telecommunications 76232
service, mobile telecommunications service, or cable television 76233
service is sold in a bundled transaction with other distinct 76234
services for a single price that is not itemized, the entire price 76235
is subject to the taxes levied under sections 5739.02, 5739.021, 76236
5739.023, and 5739.026 of the Revised Code, unless the vendor can 76237
reasonably identify the nontaxable portion from its books and 76238
records kept in the regular course of business. Upon the request 76239
of the consumer, the vendor shall disclose to the consumer the 76240
selling price for the taxable services included in the selling 76241
price for the taxable and nontaxable services billed on an 76242
aggregated basis. The burden of proving any nontaxable charges is 76243
on the vendor.76244

       (I) "Receipts" means the total amount of the prices of the76245
sales of vendors, provided that cash discounts allowed and taken76246
on sales at the time they are consummated are not included, minus76247
any amount deducted as a bad debt pursuant to section 5739.121 of76248
the Revised Code. "Receipts" does not include the sale price of76249
property returned or services rejected by consumers when the full76250
sale price and tax are refunded either in cash or by credit.76251

       (J) "Place of business" means any location at which a person76252
engages in business.76253

       (K) "Premises" includes any real property or portion thereof76254
upon which any person engages in selling tangible personal76255
property at retail or making retail sales and also includes any76256
real property or portion thereof designated for, or devoted to,76257
use in conjunction with the business engaged in by such person.76258

       (L) "Casual sale" means a sale of an item of tangible76259
personal property that was obtained by the person making the sale, 76260
through purchase or otherwise, for the person's own use and was 76261
previously subject to any state's taxing jurisdiction on its sale 76262
or use, and includes such items acquired for the seller's use that 76263
are sold by an auctioneer employed directly by the person for such 76264
purpose, provided the location of such sales is not the76265
auctioneer's permanent place of business. As used in this76266
division, "permanent place of business" includes any location76267
where such auctioneer has conducted more than two auctions during76268
the year.76269

       (M) "Hotel" means every establishment kept, used, maintained, 76270
advertised, or held out to the public to be a place where sleeping 76271
accommodations are offered to guests, in which five or more rooms 76272
are used for the accommodation of such guests, whether the rooms76273
are in one or several structures.76274

       (N) "Transient guests" means persons occupying a room or76275
rooms for sleeping accommodations for less than thirty consecutive76276
days.76277

       (O) "Making retail sales" means the effecting of transactions 76278
wherein one party is obligated to pay the price and the other 76279
party is obligated to provide a service or to transfer title to or 76280
possession of the item sold. "Making retail sales" does not 76281
include the preliminary acts of promoting or soliciting the retail 76282
sales, other than the distribution of printed matter which 76283
displays or describes and prices the item offered for sale, nor 76284
does it include delivery of a predetermined quantity of tangible 76285
personal property or transportation of property or personnel to or 76286
from a place where a service is performed, regardless of whether 76287
the vendor is a delivery vendor.76288

       (P) "Used directly in the rendition of a public utility76289
service" means that property that is to be incorporated into and76290
will become a part of the consumer's production, transmission,76291
transportation, or distribution system and that retains its76292
classification as tangible personal property after such76293
incorporation; fuel or power used in the production, transmission,76294
transportation, or distribution system; and tangible personal76295
property used in the repair and maintenance of the production,76296
transmission, transportation, or distribution system, including76297
only such motor vehicles as are specially designed and equipped76298
for such use. Tangible personal property and services used76299
primarily in providing highway transportation for hire are not76300
used directly in the rendition of a public utility service.76301

       (Q) "Refining" means removing or separating a desirable76302
product from raw or contaminated materials by distillation or76303
physical, mechanical, or chemical processes.76304

       (R) "Assembly" and "assembling" mean attaching or fitting76305
together parts to form a product, but do not include packaging a76306
product.76307

       (S) "Manufacturing operation" means a process in which76308
materials are changed, converted, or transformed into a different76309
state or form from which they previously existed and includes76310
refining materials, assembling parts, and preparing raw materials76311
and parts by mixing, measuring, blending, or otherwise committing76312
such materials or parts to the manufacturing process.76313
"Manufacturing operation" does not include packaging.76314

       (T) "Fiscal officer" means, with respect to a regional76315
transit authority, the secretary-treasurer thereof, and with76316
respect to a county that is a transit authority, the fiscal76317
officer of the county transit board if one is appointed pursuant76318
to section 306.03 of the Revised Code or the county auditor if the76319
board of county commissioners operates the county transit system.76320

       (U) "Transit authority" means a regional transit authority76321
created pursuant to section 306.31 of the Revised Code or a county76322
in which a county transit system is created pursuant to section76323
306.01 of the Revised Code. For the purposes of this chapter, a76324
transit authority must extend to at least the entire area of a76325
single county. A transit authority that includes territory in more 76326
than one county must include all the area of the most populous 76327
county that is a part of such transit authority. County population 76328
shall be measured by the most recent census taken by the United 76329
States census bureau.76330

       (V) "Legislative authority" means, with respect to a regional 76331
transit authority, the board of trustees thereof, and with respect 76332
to a county that is a transit authority, the board of county 76333
commissioners.76334

       (W) "Territory of the transit authority" means all of the76335
area included within the territorial boundaries of a transit76336
authority as they from time to time exist. Such territorial76337
boundaries must at all times include all the area of a single76338
county or all the area of the most populous county that is a part76339
of such transit authority. County population shall be measured by76340
the most recent census taken by the United States census bureau.76341

       (X) "Providing a service" means providing or furnishing76342
anything described in division (B)(3) of this section for76343
consideration.76344

       (Y)(1)(a) "Automatic data processing" means processing of76345
others' data, including keypunching or similar data entry services76346
together with verification thereof, or providing access to76347
computer equipment for the purpose of processing data.76348

       (b) "Computer services" means providing services consisting76349
of specifying computer hardware configurations and evaluating76350
technical processing characteristics, computer programming, and76351
training of computer programmers and operators, provided in76352
conjunction with and to support the sale, lease, or operation of76353
taxable computer equipment or systems.76354

       (c) "Electronic information services" means providing access76355
to computer equipment by means of telecommunications equipment for76356
the purpose of either of the following:76357

       (i) Examining or acquiring data stored in or accessible to76358
the computer equipment;76359

       (ii) Placing data into the computer equipment to be retrieved 76360
by designated recipients with access to the computer equipment.76361

       (d) "Automatic data processing, computer services, or76362
electronic information services" shall not include personal or76363
professional services.76364

       (2) As used in divisions (B)(3)(e) and (Y)(1) of this76365
section, "personal and professional services" means all services76366
other than automatic data processing, computer services, or76367
electronic information services, including but not limited to:76368

       (a) Accounting and legal services such as advice on tax76369
matters, asset management, budgetary matters, quality control,76370
information security, and auditing and any other situation where76371
the service provider receives data or information and studies,76372
alters, analyzes, interprets, or adjusts such material;76373

       (b) Analyzing business policies and procedures;76374

       (c) Identifying management information needs;76375

       (d) Feasibility studies, including economic and technical76376
analysis of existing or potential computer hardware or software76377
needs and alternatives;76378

       (e) Designing policies, procedures, and custom software for76379
collecting business information, and determining how data should76380
be summarized, sequenced, formatted, processed, controlled, and76381
reported so that it will be meaningful to management;76382

       (f) Developing policies and procedures that document how76383
business events and transactions are to be authorized, executed,76384
and controlled;76385

       (g) Testing of business procedures;76386

       (h) Training personnel in business procedure applications;76387

       (i) Providing credit information to users of such information 76388
by a consumer reporting agency, as defined in the "Fair Credit 76389
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or 76390
as hereafter amended, including but not limited to gathering, 76391
organizing, analyzing, recording, and furnishing such information 76392
by any oral, written, graphic, or electronic medium;76393

       (j) Providing debt collection services by any oral, written,76394
graphic, or electronic means.76395

       The services listed in divisions (Y)(2)(a) to (j) of this76396
section are not automatic data processing or computer services.76397

       (Z) "Highway transportation for hire" means the76398
transportation of personal property belonging to others for76399
consideration by any of the following:76400

       (1) The holder of a permit or certificate issued by this76401
state or the United States authorizing the holder to engage in76402
transportation of personal property belonging to others for76403
consideration over or on highways, roadways, streets, or any76404
similar public thoroughfare;76405

       (2) A person who engages in the transportation of personal76406
property belonging to others for consideration over or on76407
highways, roadways, streets, or any similar public thoroughfare76408
but who could not have engaged in such transportation on December76409
11, 1985, unless the person was the holder of a permit or76410
certificate of the types described in division (Z)(1) of this76411
section;76412

       (3) A person who leases a motor vehicle to and operates it76413
for a person described by division (Z)(1) or (2) of this section.76414

       (AA)(1) "Telecommunications service" means the transmission76415
of any interactive, two-way electromagnetic communications,76416
including voice, image, data, and information, through the use of76417
any medium such as wires, cables, microwaves, cellular radio,76418
radio waves, light waves, or any combination of those or similar76419
media. "Telecommunications service" includes message toll service 76420
even though the vendor provides the message toll service by means 76421
of wide area transmission type service or private communications76422
service purchased from another telecommunications service76423
provider, and other related fees and ancillary services, including 76424
universal service fees, detailed billing service, directory 76425
assistance, service initiation, voice mail service, and vertical 76426
services, such as caller ID and three-way callingelectronic 76427
transmission, conveyance, or routing of voice, data, audio, video, 76428
or any other information or signals to a point, or between or 76429
among points. "Telecommunications service" includes such 76430
transmission, conveyance, or routing in which computer processing 76431
applications are used to act on the form, code, or protocol of the 76432
content for purposes of transmission, conveyance, or routing 76433
without regard to whether the service is referred to as voice-over 76434
internet protocol service or is classified by the federal 76435
communications commission as enhanced or value-added. 76436
"Telecommunications service" does not include any of the 76437
following:76438

       (1) Sales of telecommunications service billed to persons 76439
before January 1, 2004, by telephone companies subject to the 76440
excise tax imposed by Chapter 5727. of the Revised Code;76441

       (2) Sales of telecommunications service to a provider of76442
telecommunications service or of mobile telecommunications 76443
service, including access services, for use in providing 76444
telecommunications service or mobile telecommunications service;76445

       (3) Value-added nonvoice services in which computer76446
processing applications are used to act on the form, content,76447
code, or protocol of the information to be transmitted;76448

       (4) Transmission of interactive video programming by a cable76449
television system as defined in section 505.90 of the Revised76450
Code;76451

       (5) After July 31, 2002, mobile telecommunications service76452
(a) Data processing and information services that allow data to be 76453
generated, acquired, stored, processed, or retrieved and delivered 76454
by an electronic transmission to a consumer where the consumer's 76455
primary purpose for the underlying transaction is the processed 76456
data or information;76457

        (b) Installation or maintenance of wiring or equipment on a 76458
customer's premises;76459

        (c) Tangible personal property;76460

       (d) Advertising, including directory advertising;76461

        (e) Billing and collection services provided to third 76462
parties;76463

        (f) Internet access service;76464

        (g) Radio and television audio and video programming 76465
services, regardless of the medium, including the furnishing of 76466
transmission, conveyance, and routing of such services by the 76467
programming service provider. Radio and television audio and video 76468
programming services include, but are not limited to, cable 76469
service, as defined in 47 U.S.C. 522(6), and audio and video 76470
programming services delivered by commercial mobile radio service 76471
providers, as defined in 47 C.F.R. 20.3;76472

        (h) Ancillary service;76473

        (i) Digital products delivered electronically, including 76474
software, music, video, reading materials, or ring tones.76475

        (2) "Ancillary service" means a service that is associated 76476
with or incidental to the provision of telecommunications service, 76477
including conference bridging service, detailed telecommunications 76478
billing service, directory assistance, vertical service, and voice 76479
mail service. As used in this division:76480

        (a) "Conference bridging service" means an ancillary service 76481
that links two or more participants of an audio or video 76482
conference call, including providing a telephone number. 76483
"Conference bridging service" does not include telecommunications 76484
services used to reach the conference bridge.76485

        (b) "Detailed telecommunications billing service" means an 76486
ancillary service of separately stating information pertaining to 76487
individual calls on a customer's billing statement.76488

        (c) "Directory assistance" means an ancillary service of 76489
providing telephone number or address information.76490

        (d) "Vertical service" means an ancillary service that is 76491
offered in connection with one or more telecommunications 76492
services, which offers advanced calling features that allow 76493
customers to identify callers and manage multiple calls and call 76494
connections, including conference bridging service.76495

        (e) "Voice mail service" means an ancillary service that 76496
enables the customer to store, send, or receive recorded messages. 76497
"Voice mail service" does not include any vertical services that 76498
the customer may be required to have in order to utilize the voice 76499
mail service.76500

        (3) "900 service" means an inbound toll telecommunications 76501
service purchased by a subscriber that allows the subscriber's 76502
customers to call in to the subscriber's prerecorded announcement 76503
or live service, and which is typically marketed under the name 76504
"900" service and any subsequent numbers designated by the federal 76505
communications commission. "900 service" does not include the 76506
charge for collection services provided by the seller of the 76507
telecommunications service to the subscriber, or services or 76508
products sold by the subscriber to the subscriber's customer.76509

        (4) "Prepaid calling service" means the right to access 76510
exclusively telecommunications services, which must be paid for in 76511
advance and which enables the origination of calls using an access 76512
number or authorization code, whether manually or electronically 76513
dialed, and that is sold in predetermined units of dollars of 76514
which the number declines with use in a known amount.76515

        (5) "Prepaid wireless calling service" means a 76516
telecommunications service that provides the right to utilize 76517
mobile telecommunications service as well as other 76518
non-telecommunications services, including the download of digital 76519
products delivered electronically, and content and ancillary 76520
services, that must be paid for in advance and that is sold in 76521
predetermined units of dollars of which the number declines with 76522
use in a known amount.76523

        (6) "Value-added non-voice data service" means a 76524
telecommunications service in which computer processing 76525
applications are used to act on the form, content, code, or 76526
protocol of the information or data primarily for a purpose other 76527
than transmission, conveyance, or routing.76528

        (7) "Coin-operated telephone service" means a 76529
telecommunications service paid for by inserting money into a 76530
telephone accepting direct deposits of money to operate.76531

        (8) "Customer" has the same meaning as in section 5739.034 of 76532
the Revised Code.76533

       (BB) "Laundry and dry cleaning services" means removing soil 76534
or dirt from towels, linens, articles of clothing, or other fabric 76535
items that belong to others and supplying towels, linens, articles 76536
of clothing, or other fabric items. "Laundry and dry cleaning 76537
services" does not include the provision of self-service 76538
facilities for use by consumers to remove soil or dirt from 76539
towels, linens, articles of clothing, or other fabric items.76540

       (CC) "Magazines distributed as controlled circulation76541
publications" means magazines containing at least twenty-four76542
pages, at least twenty-five per cent editorial content, issued at76543
regular intervals four or more times a year, and circulated76544
without charge to the recipient, provided that such magazines are76545
not owned or controlled by individuals or business concerns which76546
conduct such publications as an auxiliary to, and essentially for76547
the advancement of the main business or calling of, those who own76548
or control them.76549

       (DD) "Landscaping and lawn care service" means the services76550
of planting, seeding, sodding, removing, cutting, trimming,76551
pruning, mulching, aerating, applying chemicals, watering,76552
fertilizing, and providing similar services to establish, promote,76553
or control the growth of trees, shrubs, flowers, grass, ground76554
cover, and other flora, or otherwise maintaining a lawn or76555
landscape grown or maintained by the owner for ornamentation or76556
other nonagricultural purpose. However, "landscaping and lawn care 76557
service" does not include the providing of such services by a76558
person who has less than five thousand dollars in sales of such76559
services during the calendar year.76560

       (EE) "Private investigation and security service" means the76561
performance of any activity for which the provider of such service76562
is required to be licensed pursuant to Chapter 4749. of the76563
Revised Code, or would be required to be so licensed in performing76564
such services in this state, and also includes the services of76565
conducting polygraph examinations and of monitoring or overseeing76566
the activities on or in, or the condition of, the consumer's home,76567
business, or other facility by means of electronic or similar76568
monitoring devices. "Private investigation and security service"76569
does not include special duty services provided by off-duty police76570
officers, deputy sheriffs, and other peace officers regularly76571
employed by the state or a political subdivision.76572

       (FF) "Information services" means providing conversation,76573
giving consultation or advice, playing or making a voice or other76574
recording, making or keeping a record of the number of callers,76575
and any other service provided to a consumer by means of a nine76576
hundred telephone call, except when the nine hundred telephone76577
call is the means by which the consumer makes a contribution to a76578
recognized charity.76579

       (GG) "Research and development" means designing, creating, or 76580
formulating new or enhanced products, equipment, or manufacturing 76581
processes, and also means conducting scientific or technological 76582
inquiry and experimentation in the physical sciences with the goal 76583
of increasing scientific knowledge which may reveal the bases for 76584
new or enhanced products, equipment, or manufacturing processes.76585

       (HH) "Qualified research and development equipment" means76586
capitalized tangible personal property, and leased personal76587
property that would be capitalized if purchased, used by a person76588
primarily to perform research and development. Tangible personal76589
property primarily used in testing, as defined in division (A)(4)76590
of section 5739.011 of the Revised Code, or used for recording or76591
storing test results, is not qualified research and development76592
equipment unless such property is primarily used by the consumer76593
in testing the product, equipment, or manufacturing process being76594
created, designed, or formulated by the consumer in the research76595
and development activity or in recording or storing such test76596
results.76597

       (II) "Building maintenance and janitorial service" means76598
cleaning the interior or exterior of a building and any tangible76599
personal property located therein or thereon, including any76600
services incidental to such cleaning for which no separate charge76601
is made. However, "building maintenance and janitorial service"76602
does not include the providing of such service by a person who has76603
less than five thousand dollars in sales of such service during76604
the calendar year.76605

       (JJ) "Employment service" means providing or supplying76606
personnel, on a temporary or long-term basis, to perform work or76607
labor under the supervision or control of another, when the76608
personnel so supplied receive their wages, salary, or other76609
compensation from the provider of the service. "Employment76610
service" does not include:76611

       (1) Acting as a contractor or subcontractor, where the76612
personnel performing the work are not under the direct control of76613
the purchaser.76614

       (2) Medical and health care services.76615

       (3) Supplying personnel to a purchaser pursuant to a contract 76616
of at least one year between the service provider and the76617
purchaser that specifies that each employee covered under the76618
contract is assigned to the purchaser on a permanent basis.76619

       (4) Transactions between members of an affiliated group, as76620
defined in division (B)(3)(e) of this section.76621

       (KK) "Employment placement service" means locating or finding 76622
employment for a person or finding or locating an employee to fill 76623
an available position.76624

       (LL) "Exterminating service" means eradicating or attempting76625
to eradicate vermin infestations from a building or structure, or76626
the area surrounding a building or structure, and includes76627
activities to inspect, detect, or prevent vermin infestation of a76628
building or structure.76629

       (MM) "Physical fitness facility service" means all76630
transactions by which a membership is granted, maintained, or76631
renewed, including initiation fees, membership dues, renewal fees,76632
monthly minimum fees, and other similar fees and dues, by a76633
physical fitness facility such as an athletic club, health spa, or76634
gymnasium, which entitles the member to use the facility for76635
physical exercise.76636

       (NN) "Recreation and sports club service" means all76637
transactions by which a membership is granted, maintained, or76638
renewed, including initiation fees, membership dues, renewal fees,76639
monthly minimum fees, and other similar fees and dues, by a76640
recreation and sports club, which entitles the member to use the76641
facilities of the organization. "Recreation and sports club" means 76642
an organization that has ownership of, or controls or leases on a 76643
continuing, long-term basis, the facilities used by its members 76644
and includes an aviation club, gun or shooting club, yacht club, 76645
card club, swimming club, tennis club, golf club, country club, 76646
riding club, amateur sports club, or similar organization.76647

       (OO) "Livestock" means farm animals commonly raised for food76648
or food production, and includes but is not limited to cattle,76649
sheep, goats, swine, and poultry. "Livestock" does not include76650
invertebrates, fish, amphibians, reptiles, horses, domestic pets,76651
animals for use in laboratories or for exhibition, or other76652
animals not commonly raised for food or food production.76653

       (PP) "Livestock structure" means a building or structure used 76654
exclusively for the housing, raising, feeding, or sheltering of 76655
livestock, and includes feed storage or handling structures and76656
structures for livestock waste handling.76657

       (QQ) "Horticulture" means the growing, cultivation, and76658
production of flowers, fruits, herbs, vegetables, sod, mushrooms,76659
and nursery stock. As used in this division, "nursery stock" has76660
the same meaning as in section 927.51 of the Revised Code.76661

       (RR) "Horticulture structure" means a building or structure76662
used exclusively for the commercial growing, raising, or76663
overwintering of horticultural products, and includes the area76664
used for stocking, storing, and packing horticultural products76665
when done in conjunction with the production of those products.76666

       (SS) "Newspaper" means an unbound publication bearing a title 76667
or name that is regularly published, at least as frequently as 76668
biweekly, and distributed from a fixed place of business to the76669
public in a specific geographic area, and that contains a76670
substantial amount of news matter of international, national, or76671
local events of interest to the general public.76672

       (TT) "Professional racing team" means a person that employs76673
at least twenty full-time employees for the purpose of conducting76674
a motor vehicle racing business for profit. The person must76675
conduct the business with the purpose of racing one or more motor76676
racing vehicles in at least ten competitive professional racing76677
events each year that comprise all or part of a motor racing76678
series sanctioned by one or more motor racing sanctioning76679
organizations. A "motor racing vehicle" means a vehicle for which76680
the chassis, engine, and parts are designed exclusively for motor76681
racing, and does not include a stock or production model vehicle76682
that may be modified for use in racing. For the purposes of this76683
division:76684

       (1) A "competitive professional racing event" is a motor76685
vehicle racing event sanctioned by one or more motor racing76686
sanctioning organizations, at which aggregate cash prizes in76687
excess of eight hundred thousand dollars are awarded to the76688
competitors.76689

       (2) "Full-time employee" means an individual who is employed76690
for consideration for thirty-five or more hours a week, or who76691
renders any other standard of service generally accepted by custom76692
or specified by contract as full-time employment.76693

        (UU)(1) "Lease" or "rental" means any transfer of the76694
possession or control of tangible personal property for a fixed or 76695
indefinite term, for consideration. "Lease" or "rental" includes 76696
future options to purchase or extend, and agreements described in 76697
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where 76698
the amount of consideration may be increased or decreased by 76699
reference to the amount realized upon the sale or disposition of 76700
the property. "Lease" or "rental" does not include:76701

       (a) A transfer of possession or control of tangible personal 76702
property under a security agreement or a deferred payment plan 76703
that requires the transfer of title upon completion of the 76704
required payments;76705

       (b) A transfer of possession or control of tangible personal 76706
property under an agreement that requires the transfer of title 76707
upon completion of required payments and payment of an option 76708
price that does not exceed the greater of one hundred dollars or 76709
one per cent of the total required payments;76710

       (c) Providing tangible personal property along with an 76711
operator for a fixed or indefinite period of time, if the operator 76712
is necessary for the property to perform as designed. For purposes 76713
of this division, the operator must do more than maintain, 76714
inspect, or set-up the tangible personal property.76715

       (2) "Lease" and "rental," as defined in division (UU) of this 76716
section, shall not apply to leases or rentals that exist before 76717
the effective date of this amendmentJune 26, 2003.76718

       (3) "Lease" and "rental" have the same meaning as in division 76719
(UU)(1) of this section regardless of whether a transaction is 76720
characterized as a lease or rental under generally accepted 76721
accounting principles, the Internal Revenue Code, Title XIII of 76722
the Revised Code, or other federal, state, or local laws.76723

       (VV) "Mobile telecommunications service" has the same meaning 76724
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No. 76725
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and, 76726
on and after August 1, 2003, includes related fees and ancillary 76727
services, including universal service fees, detailed billing 76728
service, directory assistance, service initiation, voice mail 76729
service, and vertical services, such as caller ID and three-way 76730
calling.76731

       (WW) "Certified service provider" has the same meaning as in76732
section 5740.01 of the Revised Code.76733

       (XX) "Satellite broadcasting service" means the distribution 76734
or broadcasting of programming or services by satellite directly 76735
to the subscriber's receiving equipment without the use of ground 76736
receiving or distribution equipment, except the subscriber's 76737
receiving equipment or equipment used in the uplink process to the 76738
satellite, and includes all service and rental charges, premium 76739
channels or other special services, installation and repair 76740
service charges, and any other charges having any connection with 76741
the provision of the satellite broadcasting service.76742

       (YY) "Tangible personal property" means personal property 76743
that can be seen, weighed, measured, felt, or touched, or that is 76744
in any other manner perceptible to the senses. For purposes of 76745
this chapter and Chapter 5741. of the Revised Code, "tangible 76746
personal property" includes motor vehicles, electricity, water, 76747
gas, steam, and prewritten computer software.76748

       (ZZ) "Direct mail" means printed material delivered or 76749
distributed by United States mail or other delivery service to a 76750
mass audience or to addressees on a mailing list provided by the 76751
consumer or at the direction of the consumer when the cost of the 76752
items are not billed directly to the recipients. "Direct mail" 76753
includes tangible personal property supplied directly or 76754
indirectly by the consumer to the direct mail vendor for inclusion 76755
in the package containing the printed material. "Direct mail" does 76756
not include multiple items of printed material delivered to a 76757
single address.76758

       (AAA) "Computer" means an electronic device that accepts 76759
information in digital or similar form and manipulates it for a 76760
result based on a sequence of instructions.76761

       (BBB) "Computer software" means a set of coded instructions 76762
designed to cause a computer or automatic data processing 76763
equipment to perform a task.76764

       (CCC) "Delivered electronically" means delivery of computer 76765
software from the seller to the purchaser by means other than 76766
tangible storage media.76767

       (DDD) "Prewritten computer software" means computer software, 76768
including prewritten upgrades, that is not designed and developed 76769
by the author or other creator to the specifications of a specific 76770
purchaser. The combining of two or more prewritten computer 76771
software programs or prewritten portions thereof does not cause 76772
the combination to be other than prewritten computer software. 76773
"Prewritten computer software" includes software designed and 76774
developed by the author or other creator to the specifications of 76775
a specific purchaser when it is sold to a person other than the 76776
purchaser. If a person modifies or enhances computer software of 76777
which the person is not the author or creator, the person shall be 76778
deemed to be the author or creator only of such person's 76779
modifications or enhancements. Prewritten computer software or a 76780
prewritten portion thereof that is modified or enhanced to any 76781
degree, where such modification or enhancement is designed and 76782
developed to the specifications of a specific purchaser, remains 76783
prewritten computer software; provided, however, that where there 76784
is a reasonable, separately stated charge or an invoice or other 76785
statement of the price given to the purchaser for the modification 76786
or enhancement, the modification or enhancement shall not 76787
constitute prewritten computer software.76788

       (EEE)(1) Prior to July 1, 2004, "food" means cereals and 76789
cereal products, milk and milk products including ice cream, meat 76790
and meat products, fish and fish products, eggs and egg products, 76791
vegetables and vegetable products, fruits, fruit products, and 76792
pure fruit juices, condiments, sugar and sugar products, coffee 76793
and coffee substitutes, tea, and cocoa and cocoa products. "Food" 76794
does not include spirituous liquors, wine, mixed beverages, or 76795
beer; soft drinks; sodas and beverages that are ordinarily 76796
dispensed at or in connection with bars and soda fountains, other 76797
than coffee, tea, and cocoa; root beer and root beer extracts; 76798
malt and malt extracts; mineral oils, cod liver oils, and halibut 76799
liver oil; medicines, including tonics, vitamin preparations, and 76800
other products sold primarily for their medicinal properties; and 76801
water, including mineral, bottled, and carbonated waters, and ice.76802

       (2) On and after July 1, 2004, "food"Food" means substances, 76803
whether in liquid, concentrated, solid, frozen, dried, or 76804
dehydrated form, that are sold for ingestion or chewing by humans 76805
and are consumed for their taste or nutritional value. "Food" does 76806
not include alcoholic beverages, dietary supplements, soft drinks, 76807
or tobacco.76808

       (3)(2) As used in division (EEE)(2)(1) of this section:76809

       (a) "Alcoholic beverages" means beverages that are suitable 76810
for human consumption and contain one-half of one per cent or more 76811
of alcohol by volume.76812

       (b) "Dietary supplements" means any product, other than 76813
tobacco, that is intended to supplement the diet and that is 76814
intended for ingestion in tablet, capsule, powder, softgel, 76815
gelcap, or liquid form, or, if not intended for ingestion in such 76816
a form, is not represented as conventional food for use as a sole 76817
item of a meal or of the diet; that is required to be labeled as a 76818
dietary supplement, identifiable by the "supplement facts" box 76819
found on the label, as required by 21 C.F.R. 101.36; and that 76820
contains one or more of the following dietary ingredients:76821

       (i) A vitamin;76822

       (ii) A mineral;76823

       (iii) An herb or other botanical;76824

       (iv) An amino acid;76825

       (v) A dietary substance for use by humans to supplement the 76826
diet by increasing the total dietary intake;76827

       (vi) A concentrate, metabolite, constituent, extract, or 76828
combination of any ingredient described in divisions 76829
(EEE)(3)(2)(b)(i) to (v) of this section.76830

       (c) "Soft drinks" means nonalcoholic beverages that contain 76831
natural or artificial sweeteners. "Soft drinks" does not include 76832
beverages that contain milk or milk products, soy, rice, or 76833
similar milk substitutes, or that contains greater than fifty per 76834
cent vegetable or fruit juice by volume.76835

       (d) "Tobacco" means cigarettes, cigars, chewing or pipe 76836
tobacco, or any other item that contains tobacco.76837

       (FFF) "Drug" means a compound, substance, or preparation, and 76838
any component of a compound, substance, or preparation, other than 76839
food, dietary supplements, or alcoholic beverages that is 76840
recognized in the official United States pharmacopoeia, official 76841
homeopathic pharmacopoeia of the United States, or official 76842
national formulary, and supplements to them; is intended for use 76843
in the diagnosis, cure, mitigation, treatment, or prevention of 76844
disease; or is intended to affect the structure or any function of 76845
the body.76846

       (GGG) "Prescription" means an order, formula, or recipe 76847
issued in any form of oral, written, electronic, or other means of 76848
transmission by a duly licensed practitioner authorized by the 76849
laws of this state to issue a prescription.76850

       (HHH) "Durable medical equipment" means equipment, including 76851
repair and replacement parts for such equipment, that can 76852
withstand repeated use, is primarily and customarily used to serve 76853
a medical purpose, generally is not useful to a person in the 76854
absence of illness or injury, and is not worn in or on the body. 76855
"Durable medical equipment" does not include mobility enhancing 76856
equipment.76857

       (III) "Mobility enhancing equipment" means equipment, 76858
including repair and replacement parts for such equipment, that is 76859
primarily and customarily used to provide or increase the ability 76860
to move from one place to another and is appropriate for use 76861
either in a home or a motor vehicle, that is not generally used by 76862
persons with normal mobility, and that does not include any motor 76863
vehicle or equipment on a motor vehicle normally provided by a 76864
motor vehicle manufacturer. "Mobility enhancing equipment" does 76865
not include durable medical equipment.76866

       (JJJ) "Prosthetic device" means a replacement, corrective, or 76867
supportive device, including repair and replacement parts for the 76868
device, worn on or in the human body to artificially replace a 76869
missing portion of the body, prevent or correct physical deformity 76870
or malfunction, or support a weak or deformed portion of the body. 76871
As used in this division, "prosthetic device" does not include 76872
corrective eyeglasses, contact lenses, or dental prosthesis.76873

       (KKK)(1) "Fractional aircraft ownership program" means a 76874
program in which persons within an affiliated group sell and 76875
manage fractional ownership program aircraft, provided that at 76876
least one hundred airworthy aircraft are operated in the program 76877
and the program meets all of the following criteria:76878

       (a) Management services are provided by at least one program 76879
manager within an affiliated group on behalf of the fractional 76880
owners.76881

       (b) Each program aircraft is owned or possessed by at least 76882
one fractional owner.76883

       (c) Each fractional owner owns or possesses at least a 76884
one-sixteenth interest in at least one fixed-wing program 76885
aircraft.76886

       (d) A dry-lease aircraft interchange arrangement is in effect 76887
among all of the fractional owners.76888

       (e) Multi-year program agreements are in effect regarding the 76889
fractional ownership, management services, and dry-lease aircraft 76890
interchange arrangement aspects of the program.76891

       (2) As used in division (KKK)(1) of this section:76892

       (a) "Affiliated group" has the same meaning as in division 76893
(B)(3)(e) of this section.76894

        (b) "Fractional owner" means a person that owns or possesses 76895
at least a one-sixteenth interest in a program aircraft and has 76896
entered into the agreements described in division (KKK)(1)(e) of 76897
this section.76898

       (c) "Fractional ownership program aircraft" or "program 76899
aircraft" means a turbojet aircraft that is owned or possessed by 76900
a fractional owner and that has been included in a dry-lease 76901
aircraft interchange arrangement and agreement under divisions 76902
(KKK)(1)(d) and (e) of this section, or an aircraft a program 76903
manager owns or possesses primarily for use in a fractional 76904
aircraft ownership program.76905

       (d) "Management services" means administrative and aviation 76906
support services furnished under a fractional aircraft ownership 76907
program in accordance with a management services agreement under 76908
division (KKK)(1)(e) of this section, and offered by the program 76909
manager to the fractional owners, including, at a minimum, the 76910
establishment and implementation of safety guidelines; the 76911
coordination of the scheduling of the program aircraft and crews; 76912
program aircraft maintenance; program aircraft insurance; crew 76913
training for crews employed, furnished, or contracted by the 76914
program manager or the fractional owner; the satisfaction of 76915
record-keeping requirements; and the development and use of an 76916
operations manual and a maintenance manual for the fractional 76917
aircraft ownership program.76918

       (e) "Program manager" means the person that offers management 76919
services to fractional owners pursuant to a management services 76920
agreement under division (KKK)(1)(e) of this section.76921

       Sec. 5739.012.  (A) As used in this section:76922

       (1) "Bundled transaction" means the retail sale of two or 76923
more products, except real property and services to real property, 76924
where the products are otherwise distinct and identifiable 76925
products and are sold for one non-itemized price. "Bundled 76926
transaction" does not include the sale of any products in which 76927
the sales price varies, or is negotiable, based on the selection 76928
by the consumer of the products included in the transaction.76929

       As used in division (A)(1) of this section:76930

       (a) "Distinct and identifiable products" does not include any 76931
of the following:76932

       (i) Packaging, including containers, boxes, sacks, bags, and 76933
bottles, and packaging materials, including wrapping, labels, 76934
tags, and instruction guides that accompany the retail sale of the 76935
products and are incidental or immaterial to the retail sale 76936
thereof;76937

       (ii) A product provided free of charge with the required 76938
purchase of another product. A product is provided free of charge 76939
if the sales price of the product purchased does not vary 76940
depending on the inclusion of the product provided free of charge.76941

       (iii) Items included in the definition of "price" under 76942
division (H) of section 5739.01 of the Revised Code.76943

       (b) "One non-itemized price" does not include a price that is 76944
separately identified by product on binding sales or other 76945
supporting sales-related documents made available to the consumer 76946
in paper or electronic form, including, but not limited to, an 76947
invoice, bill of sale, receipt, contract, service agreement, lease 76948
agreement, periodic notice of rates and services, rate card, or 76949
price list.76950

       (2) "De minimis" means the vendor's or seller's purchase 76951
price or sales price of taxable products is ten per cent or less 76952
of the total purchase price or sales price of bundled products. 76953
Vendors and sellers shall use either the purchase price or the 76954
sales price of the products to determine if the taxable products 76955
are de minimis, and shall use the full term of a service contract 76956
to determine if the taxable products are de minimis. Vendors and 76957
sellers shall not use a combination of the purchase price and 76958
sales price of the products to determine if the taxable products 76959
are de minimis.76960

       (3) "Over-the-counter drug" means a drug that contains a 76961
label that identifies the product as a drug as required by 21 76962
C.F.R. 201.66, and the label includes either a "Drug Facts" panel 76963
or a statement of the active ingredients with a list of those 76964
ingredients contained in the drug.76965

       (B) A transaction that otherwise meets the definition of a 76966
bundled transaction is not a bundled transaction if it is any of 76967
the following:76968

       (1) A retail sale of tangible personal property and a service 76969
where the tangible personal property is essential to the use of 76970
the service, and is provided exclusively in connection with the 76971
service, and the true object of the transaction is the service;76972

       (2) A retail sale of services where one service is provided 76973
that is essential to the use or receipt of a second service, the 76974
first service is provided exclusively in connection with the 76975
second service, and the true object of the transaction is the 76976
second service;76977

       (3) A transaction that includes taxable products and 76978
nontaxable products, and the purchase price or sales price of the 76979
taxable products is de minimis;76980

       (4) A retail sale of exempt tangible personal property and 76981
taxable tangible personal property where the transaction includes 76982
food and food ingredients, drugs, durable medical equipment, 76983
mobility enhancing equipment, over-the-counter drugs, prosthetic 76984
devices, or medical supplies, and the vendor's or seller's 76985
purchase price or sales price of the taxable tangible personal 76986
property is fifty per cent or less of the total purchase price or 76987
sales price of the bundled tangible personal property. Vendors and 76988
sellers may not use a combination of the purchase price and sales 76989
price of the tangible personal property when making the fifty per 76990
cent determination for a transaction.76991

       (C) In the case of a bundled transaction that includes 76992
telecommunications service, ancillary service, internet access, or 76993
audio or video programming service:76994

       (1) If the price is attributable to products that are taxable 76995
and products that are nontaxable, the portion of the price 76996
attributable to the nontaxable products shall be subject to tax 76997
unless the provider, by reasonable and verifiable standards, can 76998
identify the portion from its books and records that are kept in 76999
the regular course of business for other purposes, including, but 77000
not limited to, non-tax purposes.77001

       (2) If the price is attributable to products that are subject 77002
to tax at different tax rates, the total price shall be treated as 77003
attributable to the products subject to tax at the highest tax 77004
rate unless the provider can identify by reasonable and verifiable 77005
standards the portion of the price attributable to the products 77006
subject to tax at the lower rate from its books and records that 77007
are kept in the regular course of business for other purposes, 77008
including, but not limited to, non-tax purposes.77009

       (D) In all other cases of bundled transactions, the 77010
taxability of the transaction shall be determined by the true 77011
object of the consumer entering into the transaction.77012

       Sec. 5739.02.  For the purpose of providing revenue with77013
which to meet the needs of the state, for the use of the general77014
revenue fund of the state, for the purpose of securing a thorough77015
and efficient system of common schools throughout the state, for77016
the purpose of affording revenues, in addition to those from77017
general property taxes, permitted under constitutional77018
limitations, and from other sources, for the support of local77019
governmental functions, and for the purpose of reimbursing the77020
state for the expense of administering this chapter, an excise tax77021
is hereby levied on each retail sale made in this state.77022

       (A)(1) The tax shall be collected as provided in section 77023
5739.025 of the Revised Code, provided that on and after July 1, 77024
2003, and on or before June 30, 2005, the rate of tax shall be six 77025
per cent. On and after July 1, 2005, the rate of the tax shall be 77026
five and one-half per cent. The tax applies and is collectible 77027
when the sale is made, regardless of the time when the price is 77028
paid or delivered.77029

        (2) In the case of the lease or rental, with a fixed term of 77030
more than thirty days or an indefinite term with a minimum period 77031
of more than thirty days, of any motor vehicles designed by the 77032
manufacturer to carry a load of not more than one ton, watercraft, 77033
outboard motor, or aircraft, or of any tangible personal property, 77034
other than motor vehicles designed by the manufacturer to carry a 77035
load of more than one ton, to be used by the lessee or renter 77036
primarily for business purposes, the tax shall be collected by the 77037
vendor at the time the lease or rental is consummated and shall be 77038
calculated by the vendor on the basis of the total amount to be 77039
paid by the lessee or renter under the lease agreement. If the 77040
total amount of the consideration for the lease or rental includes 77041
amounts that are not calculated at the time the lease or rental is 77042
executed, the tax shall be calculated and collected by the vendor 77043
at the time such amounts are billed to the lessee or renter. In 77044
the case of an open-end lease or rental, the tax shall be 77045
calculated by the vendor on the basis of the total amount to be 77046
paid during the initial fixed term of the lease or rental, and for 77047
each subsequent renewal period as it comes due. As used in this 77048
division, "motor vehicle" has the same meaning as in section 77049
4501.01 of the Revised Code, and "watercraft" includes an outdrive 77050
unit attached to the watercraft.77051

       A lease with a renewal clause and a termination penalty or 77052
similar provision that applies if the renewal clause is not 77053
exercised is presumed to be a sham transaction. In such a case, 77054
the tax shall be calculated and paid on the basis of the entire 77055
length of the lease period, including any renewal periods, until 77056
the termination penalty or similar provision no longer applies. 77057
The taxpayer shall bear the burden, by a preponderance of the 77058
evidence, that the transaction or series of transactions is not a 77059
sham transaction.77060

       (3) Except as provided in division (A)(2) of this section, in 77061
the case of a sale, the price of which consists in whole or in 77062
part of the lease or rental of tangible personal property, the tax 77063
shall be measured by the installments of that lease or rental.77064

       (4) In the case of a sale of a physical fitness facility 77065
service or recreation and sports club service, the price of which 77066
consists in whole or in part of a membership for the receipt of 77067
the benefit of the service, the tax applicable to the sale shall 77068
be measured by the installments thereof.77069

       (B) The tax does not apply to the following:77070

       (1) Sales to the state or any of its political subdivisions,77071
or to any other state or its political subdivisions if the laws of77072
that state exempt from taxation sales made to this state and its77073
political subdivisions;77074

       (2) Sales of food for human consumption off the premises77075
where sold;77076

       (3) Sales of food sold to students only in a cafeteria,77077
dormitory, fraternity, or sorority maintained in a private,77078
public, or parochial school, college, or university;77079

       (4) Sales of newspapers and of magazine subscriptions and77080
sales or transfers of magazines distributed as controlled77081
circulation publications;77082

       (5) The furnishing, preparing, or serving of meals without77083
charge by an employer to an employee provided the employer records77084
the meals as part compensation for services performed or work77085
done;77086

       (6) Sales of motor fuel upon receipt, use, distribution, or77087
sale of which in this state a tax is imposed by the law of this77088
state, but this exemption shall not apply to the sale of motor77089
fuel on which a refund of the tax is allowable under division (A) 77090
of section 5735.14 of the Revised Code; and the tax commissioner 77091
may deduct the amount of tax levied by this section applicable to 77092
the price of motor fuel when granting a refund of motor fuel tax 77093
pursuant to division (A) of section 5735.14 of the Revised Code 77094
and shall cause the amount deducted to be paid into the general 77095
revenue fund of this state;77096

       (7) Sales of natural gas by a natural gas company, of water77097
by a water-works company, or of steam by a heating company, if in77098
each case the thing sold is delivered to consumers through pipes77099
or conduits, and all sales of communications services by a 77100
telegraph company, all terms as defined in section 5727.01 of the 77101
Revised Code, and sales of electricity delivered through wires;77102

       (8) Casual sales by a person, or auctioneer employed directly 77103
by the person to conduct such sales, except as to such sales of77104
motor vehicles, watercraft or outboard motors required to be77105
titled under section 1548.06 of the Revised Code, watercraft77106
documented with the United States coast guard, snowmobiles, and77107
all-purpose vehicles as defined in section 4519.01 of the Revised77108
Code;77109

       (9) Sales of services or tangible personal property, other77110
than motor vehicles, mobile homes, and manufactured homes, by77111
churches, organizations exempt from taxation under section77112
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit77113
organizations operated exclusively for charitable purposes as77114
defined in division (B)(12) of this section, provided that the77115
number of days on which such tangible personal property or77116
services, other than items never subject to the tax, are sold does77117
not exceed six in any calendar year. If the number of days on77118
which such sales are made exceeds six in any calendar year, the77119
church or organization shall be considered to be engaged in77120
business and all subsequent sales by it shall be subject to the77121
tax. In counting the number of days, all sales by groups within a77122
church or within an organization shall be considered to be sales77123
of that church or organization, except that sales made by separate77124
student clubs and other groups of students of a primary or77125
secondary school, and sales made by a parent-teacher association,77126
booster group, or similar organization that raises money to77127
support or fund curricular or extracurricular activities of a77128
primary or secondary school, shall not be considered to be sales77129
of such school, and sales by each such club, group, association,77130
or organization shall be counted separately for purposes of the77131
six-day limitation. This division does not apply to sales by a77132
noncommercial educational radio or television broadcasting77133
station.77134

       (10) Sales not within the taxing power of this state under77135
the Constitution of the United States;77136

       (11) Except for transactions that are sales under division 77137
(B)(3)(s)(r) of section 5739.01 of the Revised Code, the 77138
transportation of persons or property, unless the transportation 77139
is by a private investigation and security service;77140

       (12) Sales of tangible personal property or services to77141
churches, to organizations exempt from taxation under section77142
501(c)(3) of the Internal Revenue Code of 1986, and to any other77143
nonprofit organizations operated exclusively for charitable77144
purposes in this state, no part of the net income of which inures77145
to the benefit of any private shareholder or individual, and no77146
substantial part of the activities of which consists of carrying77147
on propaganda or otherwise attempting to influence legislation;77148
sales to offices administering one or more homes for the aged or77149
one or more hospital facilities exempt under section 140.08 of the77150
Revised Code; and sales to organizations described in division (D)77151
of section 5709.12 of the Revised Code.77152

       "Charitable purposes" means the relief of poverty; the77153
improvement of health through the alleviation of illness, disease,77154
or injury; the operation of an organization exclusively for the77155
provision of professional, laundry, printing, and purchasing77156
services to hospitals or charitable institutions; the operation of77157
a home for the aged, as defined in section 5701.13 of the Revised77158
Code; the operation of a radio or television broadcasting station77159
that is licensed by the federal communications commission as a77160
noncommercial educational radio or television station; the77161
operation of a nonprofit animal adoption service or a county77162
humane society; the promotion of education by an institution of77163
learning that maintains a faculty of qualified instructors,77164
teaches regular continuous courses of study, and confers a77165
recognized diploma upon completion of a specific curriculum; the77166
operation of a parent-teacher association, booster group, or77167
similar organization primarily engaged in the promotion and77168
support of the curricular or extracurricular activities of a77169
primary or secondary school; the operation of a community or area77170
center in which presentations in music, dramatics, the arts, and77171
related fields are made in order to foster public interest and77172
education therein; the production of performances in music,77173
dramatics, and the arts; or the promotion of education by an77174
organization engaged in carrying on research in, or the77175
dissemination of, scientific and technological knowledge and77176
information primarily for the public.77177

       Nothing in this division shall be deemed to exempt sales to77178
any organization for use in the operation or carrying on of a77179
trade or business, or sales to a home for the aged for use in the77180
operation of independent living facilities as defined in division77181
(A) of section 5709.12 of the Revised Code.77182

       (13) Building and construction materials and services sold to 77183
construction contractors for incorporation into a structure or77184
improvement to real property under a construction contract with77185
this state or a political subdivision of this state, or with the77186
United States government or any of its agencies; building and77187
construction materials and services sold to construction77188
contractors for incorporation into a structure or improvement to77189
real property that are accepted for ownership by this state or any77190
of its political subdivisions, or by the United States government77191
or any of its agencies at the time of completion of the structures 77192
or improvements; building and construction materials sold to 77193
construction contractors for incorporation into a horticulture 77194
structure or livestock structure for a person engaged in the 77195
business of horticulture or producing livestock; building77196
materials and services sold to a construction contractor for77197
incorporation into a house of public worship or religious77198
education, or a building used exclusively for charitable purposes77199
under a construction contract with an organization whose purpose77200
is as described in division (B)(12) of this section; building77201
materials and services sold to a construction contractor for77202
incorporation into a building under a construction contract with77203
an organization exempt from taxation under section 501(c)(3) of77204
the Internal Revenue Code of 1986 when the building is to be used77205
exclusively for the organization's exempt purposes; building and77206
construction materials sold for incorporation into the original77207
construction of a sports facility under section 307.696 of the77208
Revised Code; and building and construction materials and services77209
sold to a construction contractor for incorporation into real77210
property outside this state if such materials and services, when77211
sold to a construction contractor in the state in which the real77212
property is located for incorporation into real property in that77213
state, would be exempt from a tax on sales levied by that state;77214

       (14) Sales of ships or vessels or rail rolling stock used or77215
to be used principally in interstate or foreign commerce, and77216
repairs, alterations, fuel, and lubricants for such ships or77217
vessels or rail rolling stock;77218

       (15) Sales to persons primarily engaged in any of the 77219
activities mentioned in division (B)(43)(42)(a) or (g) of this 77220
section, to persons engaged in making retail sales, or to persons 77221
who purchase for sale from a manufacturer tangible personal 77222
property that was produced by the manufacturer in accordance with 77223
specific designs provided by the purchaser, of packages, including 77224
material, labels, and parts for packages, and of machinery, 77225
equipment, and material for use primarily in packaging tangible 77226
personal property produced for sale, including any machinery,77227
equipment, and supplies used to make labels or packages, to 77228
prepare packages or products for labeling, or to label packages or 77229
products, by or on the order of the person doing the packaging, or 77230
sold at retail. "Packages" includes bags, baskets, cartons, 77231
crates, boxes, cans, bottles, bindings, wrappings, and other 77232
similar devices and containers, but does not include motor 77233
vehicles or bulk tanks, trailers, or similar devices attached to 77234
motor vehicles. "Packaging" means placing in a package. Division 77235
(B)(14)(15) of this section does not apply to persons engaged in 77236
highway transportation for hire.77237

       (16) Sales of food to persons using food stamp benefits to77238
purchase the food. As used in this division, "food" has the same 77239
meaning as in the "Food Stamp Act of 1977," 91 Stat. 958, 7 U.S.C. 77240
2012, as amended, and federal regulations adopted pursuant to that 77241
act.77242

       (17) Sales to persons engaged in farming, agriculture,77243
horticulture, or floriculture, of tangible personal property for77244
use or consumption directly in the production by farming,77245
agriculture, horticulture, or floriculture of other tangible77246
personal property for use or consumption directly in the77247
production of tangible personal property for sale by farming,77248
agriculture, horticulture, or floriculture; or material and parts77249
for incorporation into any such tangible personal property for use77250
or consumption in production; and of tangible personal property77251
for such use or consumption in the conditioning or holding of77252
products produced by and for such use, consumption, or sale by77253
persons engaged in farming, agriculture, horticulture, or77254
floriculture, except where such property is incorporated into real77255
property;77256

       (18) Sales of drugs for a human being,that may be dispensed 77257
only pursuant to a prescription; insulin as recognized in the 77258
official United States pharmacopoeia; urine and blood testing 77259
materials when used by diabetics or persons with hypoglycemia to 77260
test for glucose or acetone; hypodermic syringes and needles when 77261
used by diabetics for insulin injections; epoetin alfa when 77262
purchased for use in the treatment of persons with medical 77263
disease; hospital beds when purchased for use by persons with 77264
medical problems for medical purposesby hospitals, nursing homes, 77265
or other medical facilities; and medical oxygen and medical 77266
oxygen-dispensing equipment when purchased for use by persons with 77267
medical problems for medical purposesby hospitals, nursing homes, 77268
or other medical facilities;77269

       (19) Sales of prosthetic devices, durable medical equipment 77270
for home use, or mobility enhancing equipment, when made pursuant 77271
to a prescription and when such devices or equipment are for use 77272
by a human being.77273

       (20) Sales of emergency and fire protection vehicles and77274
equipment to nonprofit organizations for use solely in providing77275
fire protection and emergency services, including trauma care and77276
emergency medical services, for political subdivisions of the77277
state;77278

       (21) Sales of tangible personal property manufactured in this 77279
state, if sold by the manufacturer in this state to a retailer for 77280
use in the retail business of the retailer outside of this state 77281
and if possession is taken from the manufacturer by the purchaser77282
within this state for the sole purpose of immediately removing the 77283
same from this state in a vehicle owned by the purchaser;77284

       (22) Sales of services provided by the state or any of its77285
political subdivisions, agencies, instrumentalities, institutions,77286
or authorities, or by governmental entities of the state or any of77287
its political subdivisions, agencies, instrumentalities,77288
institutions, or authorities;77289

       (23) Sales of motor vehicles to nonresidents of this state77290
upon the presentation of an affidavit executed in this state by77291
the nonresident purchaser affirming that the purchaser is a77292
nonresident of this state, that possession of the motor vehicle is77293
taken in this state for the sole purpose of immediately removing77294
it from this state, that the motor vehicle will be permanently77295
titled and registered in another state, and that the motor vehicle77296
will not be used in this state;77297

       (24) Sales to persons engaged in the preparation of eggs for77298
sale of tangible personal property used or consumed directly in77299
such preparation, including such tangible personal property used77300
for cleaning, sanitizing, preserving, grading, sorting, and77301
classifying by size; packages, including material and parts for77302
packages, and machinery, equipment, and material for use in77303
packaging eggs for sale; and handling and transportation equipment77304
and parts therefor, except motor vehicles licensed to operate on77305
public highways, used in intraplant or interplant transfers or77306
shipment of eggs in the process of preparation for sale, when the77307
plant or plants within or between which such transfers or77308
shipments occur are operated by the same person. "Packages"77309
includes containers, cases, baskets, flats, fillers, filler flats,77310
cartons, closure materials, labels, and labeling materials, and77311
"packaging" means placing therein.77312

       (25)(a) Sales of water to a consumer for residential use,77313
except the sale of bottled water, distilled water, mineral water,77314
carbonated water, or ice;77315

       (b) Sales of water by a nonprofit corporation engaged77316
exclusively in the treatment, distribution, and sale of water to77317
consumers, if such water is delivered to consumers through pipes77318
or tubing.77319

       (26) Fees charged for inspection or reinspection of motor77320
vehicles under section 3704.14 of the Revised Code;77321

       (27) Sales to persons licensed to conduct a food service77322
operation pursuant to section 3717.43 of the Revised Code, of77323
tangible personal property primarily used directly for the77324
following:77325

       (a) To prepare food for human consumption for sale;77326

       (b) To preserve food that has been or will be prepared for77327
human consumption for sale by the food service operator, not77328
including tangible personal property used to display food for77329
selection by the consumer;77330

       (c) To clean tangible personal property used to prepare or77331
serve food for human consumption for sale.77332

       (28) Sales of animals by nonprofit animal adoption services77333
or county humane societies;77334

       (29) Sales of services to a corporation described in division 77335
(A) of section 5709.72 of the Revised Code, and sales of tangible 77336
personal property that qualifies for exemption from taxation under 77337
section 5709.72 of the Revised Code;77338

       (30) Sales and installation of agricultural land tile, as77339
defined in division (B)(5)(a) of section 5739.01 of the Revised77340
Code;77341

       (31) Sales and erection or installation of portable grain77342
bins, as defined in division (B)(5)(b) of section 5739.01 of the77343
Revised Code;77344

       (32) The sale, lease, repair, and maintenance of, parts for,77345
or items attached to or incorporated in, motor vehicles that are77346
primarily used for transporting tangible personal property 77347
belonging to others by a person engaged in highway transportation 77348
for hire, except for packages and packaging used for the 77349
transportation of tangible personal property;77350

       (33) Sales to the state headquarters of any veterans'77351
organization in this state that is either incorporated and issued77352
a charter by the congress of the United States or is recognized by77353
the United States veterans administration, for use by the77354
headquarters;77355

       (34) Sales to a telecommunications service vendor, mobile 77356
telecommunications service vendor, or satellite broadcasting 77357
service vendor of tangible personal property and services used 77358
directly and primarily in transmitting, receiving, switching, or 77359
recording any interactive, one- or two-way electromagnetic 77360
communications, including voice, image, data, and information, 77361
through the use of any medium, including, but not limited to, 77362
poles, wires, cables, switching equipment, computers, and record 77363
storage devices and media, and component parts for the tangible 77364
personal property. The exemption provided in this division shall77365
be in lieu of all other exemptions under division (B)(43)(42)(a) 77366
of this section to which the vendor may otherwise be entitled, 77367
based upon the use of the thing purchased in providing the 77368
telecommunications, mobile telecommunications, or satellite 77369
broadcasting service.77370

       (35) Sales of investment metal bullion and investment coins.77371
"Investment metal bullion" means any elementary precious metal77372
that has been put through a process of smelting or refining,77373
including, but not limited to, gold, silver, platinum, and77374
palladium, and which is in such state or condition that its value77375
depends upon its content and not upon its form. "Investment metal77376
bullion" does not include fabricated precious metal that has been77377
processed or manufactured for one or more specific and customary77378
industrial, professional, or artistic uses. "Investment coins"77379
means numismatic coins or other forms of money and legal tender77380
manufactured of gold, silver, platinum, palladium, or other metal77381
under the laws of the United States or any foreign nation with a77382
fair market value greater than any statutory or nominal value of77383
such coins.77384

       (36)(35)(a) Sales where the purpose of the consumer is to use77385
or consume the things transferred in making retail sales and77386
consisting of newspaper inserts, catalogues, coupons, flyers, gift77387
certificates, or other advertising material that prices and77388
describes tangible personal property offered for retail sale.77389

       (b) Sales to direct marketing vendors of preliminary77390
materials such as photographs, artwork, and typesetting that will77391
be used in printing advertising material; of printed matter that77392
offers free merchandise or chances to win sweepstake prizes and77393
that is mailed to potential customers with advertising material77394
described in division (B)(36)(35)(a) of this section; and of77395
equipment such as telephones, computers, facsimile machines, and77396
similar tangible personal property primarily used to accept orders 77397
for direct marketing retail sales.77398

       (c) Sales of automatic food vending machines that preserve77399
food with a shelf life of forty-five days or less by refrigeration77400
and dispense it to the consumer.77401

       For purposes of division (B)(36)(35) of this section, "direct77402
marketing" means the method of selling where consumers order77403
tangible personal property by United States mail, delivery77404
service, or telecommunication and the vendor delivers or ships the77405
tangible personal property sold to the consumer from a warehouse,77406
catalogue distribution center, or similar fulfillment facility by77407
means of the United States mail, delivery service, or common77408
carrier.77409

       (37)(36) Sales to a person engaged in the business of77410
horticulture or producing livestock of materials to be77411
incorporated into a horticulture structure or livestock structure;77412

       (38)(37) Sales of personal computers, computer monitors,77413
computer keyboards, modems, and other peripheral computer77414
equipment to an individual who is licensed or certified to teach77415
in an elementary or a secondary school in this state for use by77416
that individual in preparation for teaching elementary or77417
secondary school students;77418

       (39)(38) Sales to a professional racing team of any of the77419
following:77420

       (a) Motor racing vehicles;77421

       (b) Repair services for motor racing vehicles;77422

       (c) Items of property that are attached to or incorporated in 77423
motor racing vehicles, including engines, chassis, and all other 77424
components of the vehicles, and all spare, replacement, and77425
rebuilt parts or components of the vehicles; except not including77426
tires, consumable fluids, paint, and accessories consisting of77427
instrumentation sensors and related items added to the vehicle to77428
collect and transmit data by means of telemetry and other forms of77429
communication.77430

       (40)(39) Sales of used manufactured homes and used mobile77431
homes, as defined in section 5739.0210 of the Revised Code, made 77432
on or after January 1, 2000;77433

       (41)(40) Sales of tangible personal property and services to77434
a provider of electricity used or consumed directly and primarily 77435
in generating, transmitting, or distributing electricity for use 77436
by others, including property that is or is to be incorporated 77437
into and will become a part of the consumer's production, 77438
transmission, or distribution system and that retains its 77439
classification as tangible personal property after incorporation; 77440
fuel or power used in the production, transmission, or 77441
distribution of electricity; and tangible personal property and 77442
services used in the repair and maintenance of the production, 77443
transmission, or distribution system, including only those motor 77444
vehicles as are specially designed and equipped for such use. The 77445
exemption provided in this division shall be in lieu of all other 77446
exemptions in division (B)(43)(42)(a) of this section to which a 77447
provider of electricity may otherwise be entitled based on the use 77448
of the tangible personal property or service purchased in 77449
generating, transmitting, or distributing electricity.77450

       (42)(41) Sales to a person providing services under division 77451
(B)(3)(s)(r) of section 5739.01 of the Revised Code of tangible 77452
personal property and services used directly and primarily in 77453
providing taxable services under that section.77454

       (43)(42) Sales where the purpose of the purchaser is to do 77455
any of the following:77456

       (a) To incorporate the thing transferred as a material or a 77457
part into tangible personal property to be produced for sale by 77458
manufacturing, assembling, processing, or refining; or to use or 77459
consume the thing transferred directly in producing tangible 77460
personal property for sale by mining, including, without 77461
limitation, the extraction from the earth of all substances that 77462
are classed geologically as minerals, production of crude oil and 77463
natural gas, farming, agriculture, horticulture, or floriculture, 77464
or directly in the rendition of a public utility service, except 77465
that the sales tax levied by this section shall be collected upon 77466
all meals, drinks, and food for human consumption sold when 77467
transporting persons. Persons engaged in rendering farming, 77468
agricultural, horticultural, or floricultural services, and 77469
services in the exploration for, and production of, crude oil and 77470
natural gas, for others are deemed engaged directly in farming, 77471
agriculture, horticulture, and floriculture, or exploration for, 77472
and production of, crude oil and natural gas. This paragraph does 77473
not exempt from "retail sale" or "sales at retail" the sale of 77474
tangible personal property that is to be incorporated into a 77475
structure or improvement to real property.77476

       (b) To hold the thing transferred as security for the 77477
performance of an obligation of the vendor;77478

       (c) To resell, hold, use, or consume the thing transferred as 77479
evidence of a contract of insurance;77480

       (d) To use or consume the thing directly in commercial 77481
fishing;77482

       (e) To incorporate the thing transferred as a material or a 77483
part into, or to use or consume the thing transferred directly in 77484
the production of, magazines distributed as controlled circulation 77485
publications;77486

       (f) To use or consume the thing transferred in the production 77487
and preparation in suitable condition for market and sale of 77488
printed, imprinted, overprinted, lithographic, multilithic, 77489
blueprinted, photostatic, or other productions or reproductions of 77490
written or graphic matter;77491

       (g) To use the thing transferred, as described in section 77492
5739.011 of the Revised Code, primarily in a manufacturing 77493
operation to produce tangible personal property for sale;77494

       (h) To use the benefit of a warranty, maintenance or service 77495
contract, or similar agreement, as described in division (B)(7) of 77496
section 5739.01 of the Revised Code, to repair or maintain 77497
tangible personal property, if all of the property that is the 77498
subject of the warranty, contract, or agreement would not be 77499
subject to the tax imposed by this section;77500

       (i) To use the thing transferred as qualified research and 77501
development equipment;77502

       (j) To use or consume the thing transferred primarily in 77503
storing, transporting, mailing, or otherwise handling purchased 77504
sales inventory in a warehouse, distribution center, or similar 77505
facility when the inventory is primarily distributed outside this 77506
state to retail stores of the person who owns or controls the 77507
warehouse, distribution center, or similar facility, to retail 77508
stores of an affiliated group of which that person is a member, or 77509
by means of direct marketing. This division does not apply to 77510
motor vehicles registered for operation on the public highways. As 77511
used in this division, "affiliated group" has the same meaning as 77512
in division (B)(3)(e) of section 5739.01 of the Revised Code and 77513
"direct marketing" has the same meaning as in division (B)(36)(35)77514
of this section.77515

       (k) To use or consume the thing transferred to fulfill a 77516
contractual obligation incurred by a warrantor pursuant to a 77517
warranty provided as a part of the price of the tangible personal 77518
property sold or by a vendor of a warranty, maintenance or service 77519
contract, or similar agreement the provision of which is defined 77520
as a sale under division (B)(7) of section 5739.01 of the Revised 77521
Code;77522

       (l) To use or consume the thing transferred in the production 77523
of a newspaper for distribution to the public;77524

       (m) To use tangible personal property to perform a service 77525
listed in division (B)(3) of section 5739.01 of the Revised Code, 77526
if the property is or is to be permanently transferred to the 77527
consumer of the service as an integral part of the performance of 77528
the service.77529

       As used in division (B)(43)(42) of this section, "thing" 77530
includes all transactions included in divisions (B)(3)(a), (b), 77531
and (e) of section 5739.01 of the Revised Code.77532

       (44)(43) Sales conducted through a coin operated device that 77533
activates vacuum equipment or equipment that dispenses water, 77534
whether or not in combination with soap or other cleaning agents 77535
or wax, to the consumer for the consumer's use on the premises in 77536
washing, cleaning, or waxing a motor vehicle, provided no other 77537
personal property or personal service is provided as part of the 77538
transaction.77539

       (45)(44) Sales of replacement and modification parts for 77540
engines, airframes, instruments, and interiors in, and paint for, 77541
aircraft used primarily in a fractional aircraft ownership 77542
program, and sales of services for the repair, modification, and 77543
maintenance of such aircraft, and machinery, equipment, and 77544
supplies primarily used to provide those services.77545

       (46)(45) Sales of telecommunications service that is used 77546
directly and primarily to perform the functions of a call center. 77547
As used in this division, "call center" means any physical 77548
location where telephone calls are placed or received in high 77549
volume for the purpose of making sales, marketing, customer 77550
service, technical support, or other specialized business 77551
activity, and that employs at least fifty individuals that engage 77552
in call center activities on a full-time basis, or sufficient 77553
individuals to fill fifty full-time equivalent positions.77554

       (46) Sales by a telecommunications service vendor of 900 77555
service to a subscriber. This division does not apply to 77556
information services, as defined in division (FF) of section 77557
5739.01 of the Revised Code.77558

       (47) Sales of value-added non-voice data service. This 77559
division does not apply to any similar service that is not 77560
otherwise a telecommunications service.77561

       (C) For the purpose of the proper administration of this77562
chapter, and to prevent the evasion of the tax, it is presumed77563
that all sales made in this state are subject to the tax until the 77564
contrary is established.77565

       (D)(E)(D) The levy of this tax on retail sales of recreation 77566
and sports club service shall not prevent a municipal corporation 77567
from levying any tax on recreation and sports club dues or on any77568
income generated by recreation and sports club dues.77569

       (E) The tax collected by the vendor from the consumer under 77570
this chapter is not part of the price, but is a tax collection for 77571
the benefit of the state, and of counties levying an additional 77572
sales tax pursuant to section 5739.021 or 5739.026 of the Revised 77573
Code and of transit authorities levying an additional sales tax 77574
pursuant to section 5739.023 of the Revised Code. Except for the 77575
discount authorized under section 5739.12 of the Revised Code and 77576
the effects of any rounding pursuant to section 5703.055 of the 77577
Revised Code, no person other than the state or such a county or 77578
transit authority shall derive any benefit from the collection or 77579
payment of the tax levied by this section or section 5739.021, 77580
5739.023, or 5739.026 of the Revised Code.77581

       Sec. 5739.025.  As used in this section, "local tax" means a 77582
tax imposed pursuant to section 5739.021, 5739.023, 5739.026,77583
5741.021, 5741.022, or 5741.023 of the Revised Code.77584

       (A) The taxes levied by sections 5739.02 and 5741.02 of the 77585
Revised Code shall be collected as follows:77586

       (1) On and after July 1, 2003, and on or before June 30, 77587
2005, in accordance with the following schedule:77588

If the price The amount of 77589
is at least But not more than the tax is 77590
$ .01 $ .15 No tax 77591
  .16   .16   1¢ 77592
  .17   .33   2¢ 77593
  .34   .50   3¢ 77594
  .51   .66   4¢ 77595
  .67   .83   5¢ 77596
  .84  1.00   6¢ 77597

       If the price exceeds one dollar, the tax is six cents on each 77598
one dollar. If the price exceeds one dollar or a multiple thereof 77599
by not more than seventeen cents, the amount of tax is six cents 77600
for each one dollar plus one cent. If the price exceeds one dollar 77601
or a multiple thereof by more than seventeen cents, the amount of 77602
tax is six cents for each one dollar plus the amount of tax for 77603
prices eighteen cents through ninety-nine cents in accordance with 77604
the schedule above.77605

       (2) On and after July 1, 2005, and on and before December 31, 77606
2005, in accordance with the following schedule:77607

If the price But not The amount 77608
is at least more than of the tax is 77609

$ .01 $ .15 No tax 77610
.16 .20 .18 1¢ 77611
.21 .19 .40 .36 2¢ 77612
.41 .37 .60 .54 3¢ 77613
.61 .55 .80 .72 4¢ 77614
.81 .73 1.00 .90 5¢ 77615
.91 1.09 6¢ 77616
1.10 1.27 7¢ 77617
1.28 1.46 8¢ 77618
1.47 1.64 9¢ 77619
1.65 1.82 10¢ 77620
1.83 2.00 11¢ 77621

       If the price exceeds one dollartwo dollars, the tax is five77622
eleven cents on each one dollartwo dollars. If the price exceeds 77623
one dollartwo dollars or a multiple thereof by not more than 77624
twentyeighteen cents, the amount of tax is fiveeleven cents for 77625
each one dollartwo dollars plus one cent. If the price exceeds77626
one dollartwo dollars or a multiple thereof by more than twenty77627
eighteen cents, the amount of tax is fiveeleven cents for each 77628
one dollartwo dollars plus the amount of tax for prices 77629
twenty-onenineteen cents through one dollar and ninety-nine cents 77630
in accordance with the schedule above.77631

       (B) On and after July 1, 2003, and on and before June 30, 77632
2005, the combined taxes levied by sections 5739.02 and 5741.02 77633
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021, 77634
5741.022, and 5741.023 of the Revised Code shall be collected in 77635
accordance with the following schedules:77636

       (1) When the combined rate of state and local tax is six and 77637
one-fourth per cent:77638

If the price The amount of 77639
is at least But not more than the tax is 77640
$ .01 $ .15 No tax 77641
  .16   .16   1¢ 77642
  .17   .32   2¢ 77643
  .33   .48   3¢ 77644
  .49   .64   4¢ 77645
  .65   .80   5¢ 77646
  .81   .96   6¢ 77647
  .97  1.12   7¢ 77648
 1.13  1.28   8¢ 77649
 1.29  1.44   9¢ 77650
 1.45  1.60  10¢ 77651
 1.61  1.76  11¢ 77652
 1.77  1.92  12¢ 77653
 1.93  2.08  13¢ 77654
 2.09  2.24  14¢ 77655
 2.25  2.40  15¢ 77656
 2.41  2.56  16¢ 77657
 2.57  2.72  17¢ 77658
 2.73  2.88  18¢ 77659
 2.89  3.04  19¢ 77660
 3.05  3.20  20¢ 77661
 3.21  3.36  21¢ 77662
 3.37  3.52  22¢ 77663
 3.53  3.68  23¢ 77664
 3.69  3.84  24¢ 77665
 3.85  4.00  25¢ 77666

       If the price exceeds four dollars, the tax is twenty-five 77667
cents on each four dollars. If the price exceeds four dollars or a 77668
multiple thereof by not more than sixteen cents, the amount of tax 77669
is twenty-five cents for each four dollars plus one cent. If the 77670
price exceeds four dollars or a multiple thereof by more than 77671
sixteen cents, the amount of tax is twenty-five cents for each 77672
four dollars plus the amount of tax for prices seventeen cents 77673
through three dollars and ninety-nine cents in accordance with the 77674
schedule above.77675

       (2) When the combined rate of state and local tax is six and 77676
one-half per cent:77677

If the price The amount of 77678
is at least But not more than the tax is 77679
$ .01 $ .15 No tax 77680
  .16   .30   2¢ 77681
  .31   .46   3¢ 77682
  .47   .61   4¢ 77683
  .62   .76   5¢ 77684
  .77   .92   6¢ 77685
  .93  1.07   7¢ 77686
 1.08  1.23   8¢ 77687
 1.24  1.38   9¢ 77688
 1.39  1.53  10¢ 77689
 1.54  1.69  11¢ 77690
 1.70  1.84  12¢ 77691
 1.85  2.00  13¢ 77692

       If the price exceeds two dollars, the tax is thirteen cents 77693
on each two dollars. If the price exceeds two dollars or a 77694
multiple thereof by not more than fifteen cents, the amount of tax 77695
is thirteen cents for each two dollars plus one cent. If the price 77696
exceeds two dollars or a multiple thereof by more than fifteen 77697
cents, the amount of tax is thirteen cents for each two dollars 77698
plus the amount of tax for prices sixteen cents through one dollar 77699
and ninety-nine cents in accordance with the schedule above.77700

       (3) When the combined rate of state and local tax is six and 77701
three-fourths per cent:77702

If the price The amount of 77703
is at least But not more than the tax is 77704
$ .01 $ .15 No tax 77705
  .16   .29   2¢ 77706
  .30   .44   3¢ 77707
  .45   .59   4¢ 77708
  .60   .74   5¢ 77709
  .75   .88   6¢ 77710
  .89  1.03   7¢ 77711
 1.04  1.18   8¢ 77712
 1.19  1.33   9¢ 77713
 1.34  1.48  10¢ 77714
 1.49  1.62  11¢ 77715
 1.63  1.77  12¢ 77716
 1.78  1.92  13¢ 77717
 1.93  2.07  14¢ 77718
 2.08  2.22  15¢ 77719
 2.23  2.37  16¢ 77720
 2.38  2.51  17¢ 77721
 2.52  2.66  18¢ 77722
 2.67  2.81  19¢ 77723
 2.82  2.96  20¢ 77724
 2.97  3.11  21¢ 77725
 3.12  3.25  22¢ 77726
 3.26  3.40  23¢ 77727
 3.41  3.55  24¢ 77728
 3.56  3.70  25¢ 77729
 3.71  3.85  26¢ 77730
 3.86  4.00  27¢ 77731

       If the price exceeds four dollars, the tax is twenty-seven 77732
cents on each four dollars. If the price exceeds four dollars or a 77733
multiple thereof by not more than fourteen cents, the amount of 77734
tax is twenty-seven cents for each four dollars plus one cent. If 77735
the price exceeds four dollars or a multiple thereof by more than 77736
fourteen but by not more than twenty-nine cents, the amount of tax 77737
is twenty-seven cents for each four dollars plus two cents. If the 77738
price exceeds four dollars or a multiple thereof by more than 77739
twenty-nine cents the amount of tax is twenty-seven cents for each 77740
four dollars plus the amount of tax for prices thirty cents 77741
through three dollars and ninety-nine cents in accordance with the 77742
schedule above.77743

        (4) When the combined rate of state and local tax is seven 77744
per cent:77745

If the price The amount of 77746
is at least But not more than the tax is 77747
$ .01 $ .15 No tax 77748
  .16   .28   2¢ 77749
  .29   .42   3¢ 77750
  .43   .57   4¢ 77751
  .58   .71   5¢ 77752
  .72   .85   6¢ 77753
  .86  1.00   7¢ 77754

       If the price exceeds one dollar, the tax is seven cents on 77755
each one dollar. If the price exceeds one dollar or a multiple 77756
thereof by not more than fifteen cents, the amount of tax is seven 77757
cents for each one dollar plus one cent. If the price exceeds one 77758
dollar or a multiple thereof by more than fifteen cents, the 77759
amount of tax is seven cents for each one dollar plus the amount 77760
of tax for prices sixteen cents through ninety-nine cents in 77761
accordance with the schedule above.77762

       (5) When the combined rate of state and local tax is seven 77763
and one-fourth per cent:77764

If the price The amount of 77765
is at least But not more than the tax is 77766
$ .01 $ .15 No tax 77767
  .16   .27   2¢ 77768
  .28   .41   3¢ 77769
  .42   .55   4¢ 77770
  .56   .68   5¢ 77771
  .69   .82   6¢ 77772
  .83   .96   7¢ 77773
  .97  1.10   8¢ 77774
 1.11  1.24   9¢ 77775
 1.25  1.37  10¢ 77776
 1.38  1.51  11¢ 77777
 1.52  1.65  12¢ 77778
 1.66  1.79  13¢ 77779
 1.80  1.93  14¢ 77780
 1.94  2.06  15¢ 77781
 2.07  2.20  16¢ 77782
 2.21  2.34  17¢ 77783
 2.35  2.48  18¢ 77784
 2.49  2.62  19¢ 77785
 2.63  2.75  20¢ 77786
 2.76  2.89  21¢ 77787
 2.90  3.03  22¢ 77788
 3.04  3.17  23¢ 77789
 3.18  3.31  24¢ 77790
 3.32  3.44  25¢ 77791
 3.45  3.58  26¢ 77792
 3.59  3.72  27¢ 77793
 3.73  3.86  28¢ 77794
 3.87  4.00  29¢ 77795

       If the price exceeds four dollars, the tax is twenty-nine 77796
cents on each four dollars. If the price exceeds four dollars or a 77797
multiple thereof by not more than thirteen cents, the amount of 77798
tax is twenty-nine cents for each four dollars plus one cent. If 77799
the price exceeds four dollars or a multiple thereof by more than 77800
thirteen cents but by not more than twenty-seven cents, the amount 77801
of tax is twenty-nine cents for each four dollars plus two cents. 77802
If the price exceeds four dollars or a multiple thereof by more 77803
than twenty-seven cents, the amount of tax is twenty-nine cents 77804
for each four dollars plus the amount of tax for prices 77805
twenty-eight cents through three dollars and ninety-nine cents in 77806
accordance with the schedule above.77807

       (6) When the combined rate of state and local tax is seven 77808
and one-half per cent:77809

If the price The amount of 77810
is at least But not more than the tax is 77811
$ .01 $ .15 No tax 77812
  .16   .26   2¢ 77813
  .27   .40   3¢ 77814
  .41   .53   4¢ 77815
  .54   .65   5¢ 77816
  .66   .80   6¢ 77817
  .81   .93   7¢ 77818
  .94  1.06   8¢ 77819
 1.07  1.20   9¢ 77820
 1.21  1.33  10¢ 77821
 1.34  1.46  11¢ 77822
 1.47  1.60  12¢ 77823
 1.61  1.73  13¢ 77824
 1.74  1.86  14¢ 77825
 1.87  2.00  15¢ 77826

       If the price exceeds two dollars, the tax is fifteen cents on 77827
each two dollars. If the price exceeds two dollars or a multiple 77828
thereof by not more than fifteen cents, the amount of tax is 77829
fifteen cents for each two dollars plus one cent. If the price 77830
exceeds two dollars or a multiple thereof by more than fifteen 77831
cents, the amount of tax is fifteen cents for each two dollars 77832
plus the amount of tax for prices sixteen cents through one dollar 77833
and ninety-nine cents in accordance with the schedule above.77834

       (7) When the combined rate of state and local tax is seven 77835
and three-fourths per cent:77836

If the price The amount of 77837
is at least But not more than the tax is 77838
$ .01 $ .15 No tax 77839
  .16   .25   2¢ 77840
  .26   .38   3¢ 77841
  .39   .51   4¢ 77842
  .52   .64   5¢ 77843
  .65   .77   6¢ 77844
  .78   .90   7¢ 77845
  .91  1.03   8¢ 77846
 1.04  1.16   9¢ 77847
 1.17  1.29  10¢ 77848
 1.30  1.41  11¢ 77849
 1.42  1.54  12¢ 77850
 1.55  1.67  13¢ 77851
 1.68  1.80  14¢ 77852
 1.81  1.93  15¢ 77853
 1.94  2.06  16¢ 77854
 2.07  2.19  17¢ 77855
 2.20  2.32  18¢ 77856
 2.33  2.45  19¢ 77857
 2.46  2.58  20¢ 77858
 2.59  2.70  21¢ 77859
 2.71  2.83  22¢ 77860
 2.84  2.96  23¢ 77861
 2.97  3.09  24¢ 77862
 3.10  3.22  25¢ 77863
 3.23  3.35  26¢ 77864
 3.36  3.48  27¢ 77865
 3.49  3.61  28¢ 77866
 3.62  3.74  29¢ 77867
 3.75  3.87  30¢ 77868
 3.88  4.00  31¢ 77869

       If the price exceeds four dollars, the tax is thirty-one 77870
cents on each four dollars. If the price exceeds four dollars or a 77871
multiple thereof by not more than twelve cents, the amount of tax 77872
is thirty-one cents for each four dollars plus one cent. If the 77873
price exceeds four dollars or a multiple thereof by more than 77874
twelve cents but by not more than twenty-five cents, the amount of 77875
tax is thirty-one cents for each four dollars plus two cents. If 77876
the price exceeds four dollars or a multiple thereof by more than 77877
twenty-five cents, the amount of tax is thirty-one cents for each 77878
four dollars plus the amount of tax for prices twenty-six cents 77879
through three dollars and ninety-nine cents in accordance with the 77880
schedule above.77881

        (8) When the combined rate of state and local tax is eight 77882
per cent:77883

If the price The amount of 77884
is at least But not more than the tax is 77885
$ .01 $ .15 No tax 77886
  .16   .25   2¢ 77887
  .26   .37   3¢ 77888
  .38   .50   4¢ 77889
  .51   .62   5¢ 77890
  .63   .75   6¢ 77891
  .76   .87   7¢ 77892
  .88  1.00   8¢ 77893

       If the price exceeds one dollar, the tax is eight cents on 77894
each one dollar. If the price exceeds one dollar or a multiple 77895
thereof by not more than twelve cents, the amount of tax is eight 77896
cents for each one dollar plus one cent. If the price exceeds one 77897
dollar or a multiple thereof by more than twelve cents but not 77898
more than twenty-five cents, the amount of tax is eight cents for 77899
each one dollar plus two cents. If the price exceeds one dollar or 77900
a multiple thereof by more than twenty-five cents, the amount of 77901
tax is eight cents for each one dollar plus the amount of tax for 77902
prices twenty-six cents through ninety-nine cents in accordance 77903
with the schedule above.77904

       (9) When the combined rate of state and local tax is eight 77905
and one-fourth per cent:77906

If the price The amount of 77907
is at least But not more than the tax is 77908
$ .01 $ .15 No tax 77909
  .16   .24   2¢ 77910
  .25   .36   3¢ 77911
  .37   .48   4¢ 77912
  .49   .60   5¢ 77913
  .61   .72   6¢ 77914
  .73   .84   7¢ 77915
  .85   .96   8¢ 77916
  .97  1.09   9¢ 77917
 1.10  1.21  10¢ 77918
 1.22  1.33  11¢ 77919
 1.34  1.45  12¢ 77920
 1.46  1.57  13¢ 77921
 1.58  1.69  14¢ 77922
 1.70  1.81  15¢ 77923
 1.82  1.93  16¢ 77924
 1.94  2.06  17¢ 77925
 2.07  2.18  18¢ 77926
 2.19  2.30  19¢ 77927
 2.31  2.42  20¢ 77928
 2.43  2.54  21¢ 77929
 2.55  2.66  22¢ 77930
 2.67  2.78  23¢ 77931
 2.79  2.90  24¢ 77932
 2.91  3.03  25¢ 77933
 3.04  3.15  26¢ 77934
 3.16  3.27  27¢ 77935
 3.28  3.39  28¢ 77936
 3.40  3.51  29¢ 77937
 3.52  3.63  30¢ 77938
 3.64  3.75  31¢ 77939
  3.76  3.87  32¢ 77940
 3.88  4.00  33¢ 77941

       If the price exceeds four dollars, the tax is thirty-three 77942
cents on each four dollars. If the price exceeds four dollars or a 77943
multiple thereof by not more than eleven cents, the amount of tax 77944
is thirty-three cents for each four dollars plus one cent. If the 77945
price exceeds four dollars or a multiple thereof by more than 77946
eleven cents but by not more than twenty-four cents, the amount of 77947
tax is thirty-three cents for each four dollars plus two cents. If 77948
the price exceeds four dollars or a multiple thereof by more than 77949
twenty-four cents, the amount of tax is thirty-three cents for 77950
each four dollars plus the amount of tax for prices twenty-six 77951
cents through three dollars and ninety-nine cents in accordance 77952
with the schedule above.77953

       (10) When the combined rate of state and local tax is eight 77954
and one-half per cent:77955

If the price The amount of 77956
is at least But not more than the tax is 77957
$ .01 $ .15 No tax 77958
  .16   .23   2¢ 77959
  .24   .35   3¢ 77960
  .36   .47   4¢ 77961
  .48   .58   5¢ 77962
  .59   .70   6¢ 77963
  .71   .82   7¢ 77964
  .83   .94   8¢ 77965
  .95  1.05   9¢ 77966
 1.06  1.17  10¢ 77967
 1.18  1.29  11¢ 77968
 1.30  1.41  12¢ 77969
 1.42  1.52  13¢ 77970
 1.53  1.64  14¢ 77971
 1.65  1.76  15¢ 77972
 1.77  1.88  16¢ 77973
 1.89  2.00  17¢ 77974

       If the price exceeds two dollars, the tax is seventeen cents 77975
on each two dollars. If the price exceeds two dollars or a 77976
multiple thereof by not more than eleven cents, the amount of tax 77977
is seventeen cents for each two dollars plus one cent. If the 77978
price exceeds two dollars or a multiple thereof by more than 77979
eleven cents but by not more than twenty-three cents, the amount 77980
of tax is seventeen cents for each two dollars plus two cents. If 77981
the price exceeds two dollars or a multiple thereof by more than 77982
twenty-three cents, the amount of tax is seventeen cents for each 77983
two dollars plus the amount of tax for prices twenty-four cents 77984
through one dollar and ninety-nine cents in accordance with the 77985
schedule above.77986

        (11) When the combined rate of state and local tax is eight 77987
and three-fourths per cent:77988

If the price The amount of 77989
is at least But not more than the tax is 77990
$ .01 $ .15 No tax 77991
  .16   .22   2¢ 77992
  .23   .34   3¢ 77993
  .35   .45   4¢ 77994
  .46   .57   5¢ 77995
  .58   .68   6¢ 77996
  .69   .80   7¢ 77997
  .81   .91   8¢ 77998
  .92  1.02   9¢ 77999
 1.03  1.14  10¢ 78000
 1.15  1.25  11¢ 78001
 1.26  1.37  12¢ 78002
 1.38  1.48  13¢ 78003
 1.49  1.60  14¢ 78004
 1.61  1.71  15¢ 78005
 1.72  1.82  16¢ 78006
 1.83  1.94  17¢ 78007
 1.95  2.05  18¢ 78008
 2.06  2.17  19¢ 78009
 2.18  2.28  20¢ 78010
 2.29  2.40  21¢ 78011
 2.41  2.51  22¢ 78012
 2.52  2.62  23¢ 78013
 2.63  2.74  24¢ 78014
 2.75  2.85  25¢ 78015
 2.86  2.97  26¢ 78016
 2.98  3.08  27¢ 78017
 3.09  3.20  28¢ 78018
 3.21  3.31  29¢ 78019
 3.32  3.42  30¢ 78020
 3.43  3.54  31¢ 78021
 3.55  3.65  32¢ 78022
 3.66  3.77  33¢ 78023
 3.78  3.88  34¢ 78024
 3.89  4.00  35¢ 78025

       If the price exceeds four dollars, the tax is thirty-five 78026
cents on each four dollars. If the price exceeds four dollars or a 78027
multiple thereof by not more than eleven cents, the amount of tax 78028
is thirty-five cents for each four dollars plus one cent. If the 78029
price exceeds four dollars or a multiple thereof by more than 78030
eleven cents but by not more than twenty-two cents, the amount of 78031
tax is thirty-five cents for each four dollars plus two cents. If 78032
the price exceeds four dollars or a multiple thereof by more than 78033
twenty-two cents, the amount of tax is thirty-five cents for each 78034
four dollars plus the amount of tax for prices twenty-three cents 78035
through three dollars and ninety-nine cents in accordance with the 78036
schedule above.78037

        (12) When the combined rate of state and local tax is nine 78038
per cent:78039

If the price The amount of 78040
is at least But not more than the tax is 78041
$ .01 $ .15 No tax 78042
  .16   .22   2¢ 78043
  .23   .33   3¢ 78044
  .34   .44   4¢ 78045
  .45   .55   5¢ 78046
  .56   .66   6¢ 78047
  .67   .77   7¢ 78048
  .78   .88   8¢ 78049
  .89  1.00   9¢ 78050

       If the price exceeds one dollar, the tax is nine cents on 78051
each one dollar. If the price exceeds one dollar or a multiple 78052
thereof by not more than eleven cents, the amount of tax is nine 78053
cents for each one dollar plus one cent. If the price exceeds one 78054
dollar or a multiple thereof by more than eleven cents but by not 78055
more than twenty-two cents, the amount of tax is nine cents for 78056
each one dollar plus two cents. If the price exceeds one dollar or 78057
a multiple thereof by more than twenty-two cents, the amount of 78058
tax is nine cents for each one dollar plus the amount of tax for 78059
prices twenty-three cents through ninety-nine cents in accordance 78060
with the schedule above.78061

       (C) On and after July 1, 2005, and on and before December 31, 78062
2005, the combined taxes levied by sections 5739.02 and 5741.02 78063
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021, 78064
5741.022, and 5741.023 of the Revised Code shall be collected in 78065
accordance with the following schedules:78066

       (1) When the total rate of local tax is one-fourth per cent:78067

If the price But not The amount 78068
is at least more than of the tax is 78069

$ .01 $ .15 No tax 78070
.16 .19 1¢ 78071
.20 .38 2¢ 78072
.39 .57 3¢ 78073
.58 .76 4¢ 78074
.77 .95 5¢ 78075
.96 1.14 6¢ 78076
1.15 1.33 7¢ 78077
1.34 1.52 8¢ 78078
1.53 1.71 9¢ 78079
1.72 1.90 10¢ 78080
1.91 2.09 11¢ 78081
2.10 2.28 12¢ 78082
2.29 2.47 13¢ 78083
2.48 2.66 14¢ 78084
2.67 2.85 15¢ 78085
2.86 3.04 16¢ 78086
3.05 3.23 17¢ 78087
3.24 3.42 18¢ 78088
3.43 3.61 19¢ 78089
3.62 3.80 20¢ 78090
3.81 4.00 21¢ 78091

       If the price exceeds four dollars, the tax is twenty-one78092
cents on each four dollars. If the price exceeds four dollars or a 78093
multiple thereof by not more than nineteen cents, the amount of78094
tax is twenty-one cents for each four dollars plus one cent. If78095
the price exceeds four dollars or a multiple thereof by more than78096
nineteen cents, the amount of tax is twenty-one cents for each78097
four dollars plus the amount of tax for prices twenty cents78098
through three dollars and ninety-nine cents in accordance with the 78099
schedule above.78100

       (2) When the combined rate of local tax is one-half per cent:78101

If the price But not The amount 78102
is at least more than of the tax is 78103

$ .01 $ .15 No tax 78104
.16 .18 1¢ 78105
.19 .36 2¢ 78106
.37 .54 3¢ 78107
.55 .72 4¢ 78108
.73 .90 5¢ 78109
.91 1.09 6¢ 78110
1.10 1.27 7¢ 78111
1.28 1.46 8¢ 78112
1.47 1.64 9¢ 78113
1.65 1.82 10¢ 78114
1.83 2.00 11¢ 78115

       If the price exceeds two dollars, the tax is eleven cents on 78116
each two dollars. If the price exceeds two dollars or a multiple 78117
thereof by not more than eighteen cents, the amount of tax is 78118
eleven cents for each two dollars plus one cent. If the price 78119
exceeds two dollars or a multiple thereof by more than eighteen 78120
cents, the amount of tax is eleven cents for each two dollars plus 78121
the amount of tax for prices nineteen cents through one dollar and 78122
ninety-nine cents in accordance with the schedule above.78123

       (3) When the combined rate of local tax is three-fourths per 78124
cent:78125

If the price But not The amount 78126
is at least more than of the tax is 78127

$ .01 $ .15 No tax 78128
.16 .17 1¢ 78129
.18 .34 2¢ 78130
.35 .52 3¢ 78131
.53 .69 4¢ 78132
.70 .86 5¢ 78133
.87 1.04 6¢ 78134
1.05 1.21 7¢ 78135
1.22 1.39 8¢ 78136
1.40 1.56 9¢ 78137
1.57 1.73 10¢ 78138
1.74 1.91 11¢ 78139
1.92 2.08 12¢ 78140
2.09 2.26 13¢ 78141
2.27 2.43 14¢ 78142
2.44 2.60 15¢ 78143
2.61 2.78 16¢ 78144
2.79 2.95 17¢ 78145
2.96 3.13 18¢ 78146
3.14 3.30 19¢ 78147
3.31 3.47 20¢ 78148
3.48 3.65 21¢ 78149
3.66 3.82 22¢ 78150
3.83 4.00 23¢ 78151

       If the price exceeds four dollars, the tax is twenty-three78152
cents on each four dollars. If the price exceeds four dollars or a 78153
multiple thereof by not more than seventeen cents, the amount of 78154
tax is twenty-three cents for each four dollars plus one cent. If 78155
the price exceeds four dollars or a multiple thereof by more than 78156
seventeen cents, the amount of tax is twenty-three cents for each 78157
four dollars plus the amount of tax for prices eighteen cents 78158
through three dollars and ninety-nine cents in accordance with the 78159
schedule above.78160

       (4)(2) When the combined rate of local tax is oneone-half78161
per cent:78162

If the price But not The amount 78163
is at least more than of the tax is 78164

$ .01 $ .15 No tax 78165
.16 .17 1¢ 78166
.18 .34 2¢ 78167
.35 .50 3¢ 78168
.51 .67 4¢ 78169
.68 .83 5¢ 78170
.84 1.00 6¢ 78171

       If the price exceeds one dollar, the tax is six cents on each 78172
one dollar. If the price exceeds one dollar or a multiple thereof 78173
by not more than seventeen cents, the amount of tax is six cents 78174
for each one dollar plus one cent. If the price exceeds one dollar 78175
or a multiple thereof by more than seventeen cents, the amount of 78176
tax is six cents for each one dollar plus the amount of tax for 78177
prices eighteen cents through ninety-nine cents in accordance with 78178
the schedule above.78179

       (5)(3) When the combined rate of local tax is one and78180
one-fourththree-fourths per cent:78181

If the price But not The amount 78182
is at least more than of the tax is 78183

$ .01 $ .15 No tax 78184
.16 .16 1¢ 78185
.17 .32 2¢ 78186
.33 .48 3¢ 78187
.49 .64 4¢ 78188
.65 .80 5¢ 78189
.81 .96 6¢ 78190
.97 1.12 7¢ 78191
1.13 1.28 8¢ 78192
1.29 1.44 9¢ 78193
1.45 1.60 10¢ 78194
1.61 1.76 11¢ 78195
1.77 1.92 12¢ 78196
1.93 2.08 13¢ 78197
2.09 2.24 14¢ 78198
2.25 2.40 15¢ 78199
2.41 2.56 16¢ 78200
2.57 2.72 17¢ 78201
2.73 2.88 18¢ 78202
2.89 3.04 19¢ 78203
3.05 3.20 20¢ 78204
3.21 3.36 21¢ 78205
3.37 3.52 22¢ 78206
3.53 3.68 23¢ 78207
3.69 3.84 24¢ 78208
3.85 4.00 25¢ 78209

       If the price exceeds four dollars, the tax is twenty-five78210
cents on each four dollars. If the price exceeds four dollars or a 78211
multiple thereof by not more than sixteen cents, the amount of tax 78212
is twenty-five cents for each four dollars plus one cent. If the 78213
price exceeds four dollars or a multiple thereof by more than78214
sixteen cents, the amount of tax is twenty-five cents for each78215
four dollars plus the amount of tax for prices seventeen cents78216
through three dollars and ninety-nine cents in accordance with the 78217
schedule above.78218

       (6)(4) When the combined rate of local tax is one and78219
one-half per cent:78220

If the price But not The amount 78221
is at least more than of the tax is 78222

$ .01 $ .15 No tax 78223
.16 .30 2¢ 78224
.31 .46 3¢ 78225
.47 .61 4¢ 78226
.62 .76 5¢ 78227
.77 .92 6¢ 78228
.93 1.07 7¢ 78229
1.08 1.23 8¢ 78230
1.24 1.38 9¢ 78231
1.39 1.53 10¢ 78232
1.54 1.69 11¢ 78233
1.70 1.84 12¢ 78234
1.85 2.00 13¢ 78235

       If the price exceeds two dollars, the tax is thirteen cents78236
on each two dollars. If the price exceeds two dollars or a78237
multiple thereof by not more than fifteen cents, the amount of tax 78238
is thirteen cents for each two dollars plus one cent. If the price 78239
exceeds two dollars or a multiple thereof by more than fifteen 78240
cents, the amount of tax is thirteen cents for each two dollars 78241
plus the amount of tax for prices sixteen cents through one dollar 78242
and ninety-nine cents in accordance with the schedule above.78243

       (7)(5) When the combined rate of local tax is one and78244
three-fourthsone-fourth per cent:78245

If the price But not The amount 78246
is at least more than of the tax is 78247

$ .01 $ .15 No tax 78248
.16 .29 2¢ 78249
.30 .44 3¢ 78250
.45 .59 4¢ 78251
.60 .74 5¢ 78252
.75 .88 6¢ 78253
.89 1.03 7¢ 78254
1.04 1.18 8¢ 78255
1.19 1.33 9¢ 78256
1.34 1.48 10¢ 78257
1.49 1.62 11¢ 78258
1.63 1.77 12¢ 78259
1.78 1.92 13¢ 78260
1.93 2.07 14¢ 78261
2.08 2.22 15¢ 78262
2.23 2.37 16¢ 78263
2.38 2.51 17¢ 78264
2.52 2.66 18¢ 78265
2.67 2.81 19¢ 78266
2.82 2.96 20¢ 78267
2.97 3.11 21¢ 78268
3.12 3.25 22¢ 78269
3.26 3.40 23¢ 78270
3.41 3.55 24¢ 78271
3.56 3.70 25¢ 78272
3.71 3.85 26¢ 78273
3.86 4.00 27¢ 78274

       If the price exceeds four dollars, the tax is twenty-seven78275
cents on each four dollars. If the price exceeds four dollars or a 78276
multiple thereof by not more than fourteen cents, the amount of78277
tax is twenty-seven cents for each four dollars plus one cent. If 78278
the price exceeds four dollars or a multiple thereof by more than 78279
fourteen but by not more than twenty-nine cents, the amount of tax 78280
is twenty-seven cents for each four dollars plus two cents. If the 78281
price exceeds four dollars or a multiple thereof by more than 78282
twenty-nine cents the amount of tax is twenty-seven cents for each 78283
four dollars plus the amount of tax for prices thirty cents 78284
through three dollars and ninety-nine cents in accordance with the 78285
schedule above.78286

       (8)(6) When the combined rate of local tax is twoone and 78287
one-half per cent:78288

If the price But not The amount 78289
is at least more than of the tax is 78290

$ .01 $ .15 No tax 78291
.16 .28 2¢ 78292
.29 .42 3¢ 78293
.43 .57 4¢ 78294
.58 .71 5¢ 78295
.72 .85 6¢ 78296
.86 1.00 7¢ 78297

       If the price exceeds one dollar, the tax is seven cents on78298
each one dollar. If the price exceeds one dollar or a multiple78299
thereof by not more than fifteen cents, the amount of tax is seven 78300
cents for each one dollar plus one cent. If the price exceeds one 78301
dollar or a multiple thereof by more than fifteen cents, the 78302
amount of tax is seven cents for each one dollar plus the amount 78303
of tax for prices sixteen cents through ninety-nine cents in 78304
accordance with the schedule above.78305

       (9)(7) When the combined rate of local tax is twoone and78306
one-fourththree-fourths per cent:78307

If the price But not The amount 78308
is at least more than of the tax is 78309

$ .01 $ .15 No tax 78310
.16 .27 2¢ 78311
.28 .41 3¢ 78312
.42 .55 4¢ 78313
.56 .68 5¢ 78314
.69 .82 6¢ 78315
.83 .96 7¢ 78316
.97 1.10 8¢ 78317
1.11 1.24 9¢ 78318
1.25 1.37 10¢ 78319
1.38 1.51 11¢ 78320
1.52 1.65 12¢ 78321
1.66 1.79 13¢ 78322
1.80 1.93 14¢ 78323
1.94 2.06 15¢ 78324
2.07 2.20 16¢ 78325
2.21 2.34 17¢ 78326
2.35 2.48 18¢ 78327
2.49 2.62 19¢ 78328
2.63 2.75 20¢ 78329
2.76 2.89 21¢ 78330
2.90 3.03 22¢ 78331
3.04 3.17 23¢ 78332
3.18 3.31 24¢ 78333
3.32 3.44 25¢ 78334
3.45 3.58 26¢ 78335
3.59 3.72 27¢ 78336
3.73 3.86 28¢ 78337
3.87 4.00 29¢ 78338

       If the price exceeds four dollars, the tax is twenty-nine78339
cents on each four dollars. If the price exceeds four dollars or a 78340
multiple thereof by not more than thirteen cents, the amount of78341
tax is twenty-nine cents for each four dollars plus one cent. If78342
the price exceeds four dollars or a multiple thereof by more than78343
thirteen cents but by not more than twenty-seven cents, the amount 78344
of tax is twenty-nine cents for each four dollars plus two cents. 78345
If the price exceeds four dollars or a multiple thereof by more 78346
than twenty-seven cents, the amount of tax is twenty-nine cents 78347
for each four dollars plus the amount of tax for prices78348
twenty-eight cents through three dollars and ninety-nine cents in78349
accordance with the schedule above.78350

       (10)(8) When the combined rate of local tax is two and78351
one-half per cent:78352

If the price But not The amount 78353
is at least more than of the tax is 78354

$ .01 $ .15 No tax 78355
.16 .26 2¢ 78356
.27 .40 3¢ 78357
.41 .53 4¢ 78358
.54 .65 5¢ 78359
.66 .80 6¢ 78360
.81 .93 7¢ 78361
.94 1.06 8¢ 78362
1.07 1.20 9¢ 78363
1.21 1.33 10¢ 78364
1.34 1.46 11¢ 78365
1.47 1.60 12¢ 78366
1.61 1.73 13¢ 78367
1.74 1.86 14¢ 78368
1.87 2.00 15¢ 78369

       If the price exceeds two dollars, the tax is fifteen cents on 78370
each two dollars. If the price exceeds two dollars or a multiple 78371
thereof by not more than fifteen cents, the amount of tax is 78372
fifteen cents for each two dollars plus one cent. If the price 78373
exceeds two dollars or a multiple thereof by more than fifteen 78374
cents, the amount of tax is fifteen cents for each two dollars 78375
plus the amount of tax for prices sixteen cents through one dollar 78376
and ninety-nine cents in accordance with the schedule above.78377

       (11)(9) When the combined rate of local tax is two and78378
three-fourthsone-fourth per cent:78379

If the price But not The amount 78380
is at least more than of the tax is 78381

$ .01 $ .15 No tax 78382
.16 .25 2¢ 78383
.26 .38 3¢ 78384
.39 .51 4¢ 78385
.52 .64 5¢ 78386
.65 .77 6¢ 78387
.78 .90 7¢ 78388
.91 1.03 8¢ 78389
1.04 1.16 9¢ 78390
1.17 1.29 10¢ 78391
1.30 1.41 11¢ 78392
1.42 1.54 12¢ 78393
1.55 1.67 13¢ 78394
1.68 1.80 14¢ 78395
1.81 1.93 15¢ 78396
1.94 2.06 16¢ 78397
2.07 2.19 17¢ 78398
2.20 2.32 18¢ 78399
2.33 2.45 19¢ 78400
2.46 2.58 20¢ 78401
2.59 2.70 21¢ 78402
2.71 2.83 22¢ 78403
2.84 2.96 23¢ 78404
2.97 3.09 24¢ 78405
3.10 3.22 25¢ 78406
3.23 3.35 26¢ 78407
3.36 3.48 27¢ 78408
3.49 3.61 28¢ 78409
3.62 3.74 29¢ 78410
3.75 3.87 30¢ 78411
3.88 4.00 31¢ 78412

       If the price exceeds four dollars, the tax is thirty-one78413
cents on each four dollars. If the price exceeds four dollars or a 78414
multiple thereof by not more than twelve cents, the amount of tax 78415
is thirty-one cents for each four dollars plus one cent. If the 78416
price exceeds four dollars or a multiple thereof by more than78417
twelve cents but not more than twenty-five cents, the amount of78418
tax is thirty-one cents for each four dollars plus two cents. If78419
the price exceeds four dollars or a multiple thereof by more than78420
twenty-five cents, the amount of tax is thirty-one cents for each78421
four dollars plus the amount of tax for prices twenty-six cents78422
through three dollars and ninety-nine cents in accordance with the 78423
schedule above.78424

       (12)(10) When the combined rate of local tax is threetwo and 78425
one-half per cent:78426

If the price But not The amount 78427
is at least more than of the tax is 78428

$ .01 $ .15 No tax 78429
.16 .25 2¢ 78430
.26 .37 3¢ 78431
.38 .50 4¢ 78432
.51 .62 5¢ 78433
.63 .75 6¢ 78434
.76 .87 7¢ 78435
.88 1.00 8¢ 78436

       If the price exceeds one dollar, the tax is eight cents on78437
each one dollar. If the price exceeds one dollar or a multiple78438
thereof by not more than twelve cents, the amount of tax is eight78439
cents for each one dollar plus one cent. If the price exceeds one 78440
dollar or a multiple thereof by more than twelve cents but not 78441
more than twenty-five cents, the amount of tax is eight cents for 78442
each one dollar plus two cents. If the price exceeds one dollar or 78443
a multiple thereof by more than twenty-five cents, the amount of 78444
tax is eight cents for each one dollar plus the amount of tax for 78445
prices twenty-six cents through ninety-nine cents in accordance 78446
with the schedule above.78447

       (11) When the combined rate of local tax is two and 78448
three-fourths per cent:78449

If the price But not The amount 78450
is at least more than of the tax is 78451

$ .01 $ .15 No tax 78452
.16 .24 2¢ 78453
.25 .36 3¢ 78454
.37 .48 4¢ 78455
.49 .60 5¢ 78456
.61 .72 6¢ 78457
.73 .84 7¢ 78458
.85 .96 8¢ 78459
.97 1.09 9¢ 78460
1.10 1.21 10¢ 78461
1.22 1.33 11¢ 78462
1.34 1.45 12¢ 78463
1.46 1.57 13¢ 78464
1.58 1.69 14¢ 78465
1.70 1.81 15¢ 78466
1.82 1.93 16¢ 78467
1.94 2.06 17¢ 78468
2.07 2.18 18¢ 78469
2.19 2.30 19¢ 78470
2.31 2.42 20¢ 78471
2.43 2.54 21¢ 78472
2.55 2.66 22¢ 78473
2.67 2.78 23¢ 78474
2.79 2.90 24¢ 78475
2.91 3.03 25¢ 78476
3.04 3.15 26¢ 78477
3.16 3.27 27¢ 78478
3.28 3.39 28¢ 78479
3.40 3.51 29¢ 78480
3.52 3.63 30¢ 78481
3.64 3.75 31¢ 78482
3.76 3.87 32¢ 78483
3.88 4.00 33¢ 78484

       If the price exceeds four dollars, the tax is thirty-three 78485
cents on each four dollars. If the price exceeds four dollars or a 78486
multiple thereof by not more than eleven cents, the amount of tax 78487
is thirty-three cents for each four dollars plus one cent. If the 78488
price exceeds four dollars or a multiple thereof by more than 78489
eleven cents but not more than twenty-four cents, the amount of 78490
tax is thirty-three cents for each four dollars plus two cents. If 78491
the price exceeds four dollars or a multiple thereof by more than 78492
twenty-four cents, the amount of tax is thirty-three cents for 78493
each four dollars plus the amount of tax for prices twenty-six 78494
cents through three dollars and ninety-nine cents in accordance 78495
with the schedule above.78496

       (12) When the combined rate of local tax is three per cent:78497

If the price But not The amount 78498
is at least more than of the tax is 78499

$ .01 $ .15 No tax 78500
.16 .23 2¢ 78501
.24 .35 3¢ 78502
.36 .47 4¢ 78503
.48 .58 5¢ 78504
.59 .70 6¢ 78505
.71 .82 7¢ 78506
.83 .94 8¢ 78507
.95 1.05 9¢ 78508
1.06 1.17 10¢ 78509
1.18 1.29 11¢ 78510
1.30 1.41 12¢ 78511
1.42 1.52 13¢ 78512
1.53 1.64 14¢ 78513
1.65 1.76 15¢ 78514
1.77 1.88 16¢ 78515
1.89 2.00 17¢ 78516

       If the price exceeds two dollars, the tax is seventeen cents 78517
on each two dollars. If the price exceeds two dollars or a 78518
multiple thereof by not more than eleven cents, the amount of tax 78519
is seventeen cents for each two dollars plus one cent. If the 78520
price exceeds two dollars or a multiple thereof by more than 78521
eleven cents but not more than twenty-three cents, the amount of 78522
tax is seventeen cents for each two dollars plus two cents. If the 78523
price exceeds two dollars or a multiple thereof by more than 78524
twenty-three cents, the amount of tax is seventeen cents for each 78525
two dollars plus the amount of tax for prices twenty-four cents 78526
through one dollar and ninety-nine cents in accordance with the 78527
schedule above.78528

       (D) In lieu of collecting the tax pursuant to the schedules 78529
set forth in divisions (A), (B), and (C) of this section, a vendor 78530
may compute the tax on each sale as follows:78531

       (1) On sales of fifteen cents or less, no tax shall apply.78532

       (2) On sales in excess of fifteen cents, multiply the price 78533
by the aggregate rate of taxes in effect under sections 5739.02 78534
and 5741.02 and sections 5739.021, 5739.023, 5739.026, 5741.021, 78535
5741.022, and 5741.023 of the Revised Code. The computation shall 78536
be carried out to six decimal places. If the result is a 78537
fractional amount of a cent, the calculated tax shall be increased 78538
to the next highest cent and that amount shall be collected by the 78539
vendor.78540

       (E) On and after January 1, 2006, a vendor shall compute the 78541
tax on each sale by multiplying the price by the aggregate rate of 78542
taxes in effect under sections 5739.02 and 5741.02, and sections 78543
5739.021, 5739.023, 5739.026, 5741.021, 5741.022, and 5741.023 of 78544
the Revised Code. The computation shall be carried out to three 78545
decimal places. If the result is a fractional amount of a cent, 78546
the calculated tax shall be rounded to a whole cent using a method 78547
that rounds up to the next cent whenever the third decimal place 78548
is greater than four. A vendor may elect to compute the tax due on 78549
a transaction on an item or an invoice basis.78550

       (F) In auditing a vendor, the tax commissioner shall consider 78551
the method prescribed by this section that was used by the vendor 78552
in determining and collecting the tax due under this chapter on 78553
taxable transactions. If the vendor correctly collects and remits 78554
the tax due under this chapter in accordance with the schedules in 78555
divisions (A), (B), and (C) of this section or in accordance with 78556
the computation prescribed in division (D) or (E) of this section, 78557
the commissioner shall not assess any additional tax on those 78558
transactions.78559

        (G)(1) With respect to a sale of a fractional ownership 78560
program aircraft used primarily in a fractional aircraft ownership 78561
program, including all accessories attached to such aircraft, the 78562
tax shall be calculated pursuant to divisions (A) to (E) of this 78563
section, provided that the tax commissioner shall modify those 78564
calculations so that the maximum tax on each program aircraft is 78565
eight hundred dollars. In the case of a sale of a fractional 78566
interest that is less than one hundred per cent of the program 78567
aircraft, the tax charged on the transaction shall be eight 78568
hundred dollars multiplied by a fraction, the numerator of which 78569
is the percentage of ownership or possession in the aircraft being 78570
purchased in the transaction, and the denominator of which is one 78571
hundred per cent.78572

       (2) Notwithstanding any other provision of law to the 78573
contrary, the tax calculated under division (G)(1) of this section 78574
and paid with respect to the sale of a fractional ownership 78575
program aircraft used primarily in a fractional aircraft ownership 78576
program shall be credited to the general revenue fund.78577

       Sec. 5739.026.  (A) A board of county commissioners may levy78578
a tax of one-fourth or one-half of one per cent on every retail78579
sale in the county, except sales of watercraft and outboard motors78580
required to be titled pursuant to Chapter 1548. of the Revised78581
Code and sales of motor vehicles, and may increase an existing78582
rate of one-fourth of one per cent to one-half of one per cent, to78583
pay the expenses of administering the tax and, except as provided78584
in division (A)(6) of this section, for any one or more of the78585
following purposes provided that the aggregate levy for all such78586
purposes does not exceed one-half of one per cent:78587

       (1) To provide additional revenues for the payment of bonds78588
or notes issued in anticipation of bonds issued by a convention78589
facilities authority established by the board of county78590
commissioners under Chapter 351. of the Revised Code and to78591
provide additional operating revenues for the convention78592
facilities authority;78593

       (2) To provide additional revenues for a transit authority78594
operating in the county;78595

       (3) To provide additional revenue for the county's general78596
fund;78597

       (4) To provide additional revenue for permanent improvements78598
within the county to be distributed by the community improvements78599
board in accordance with section 307.283 and to pay principal,78600
interest, and premium on bonds issued under section 307.284 of the78601
Revised Code;78602

       (5) To provide additional revenue for the acquisition,78603
construction, equipping, or repair of any specific permanent78604
improvement or any class or group of permanent improvements, which78605
improvement or class or group of improvements shall be enumerated78606
in the resolution required by division (D) of this section, and to78607
pay principal, interest, premium, and other costs associated with78608
the issuance of bonds or notes in anticipation of bonds issued78609
pursuant to Chapter 133. of the Revised Code for the acquisition,78610
construction, equipping, or repair of the specific permanent78611
improvement or class or group of permanent improvements;78612

       (6) To provide revenue for the implementation and operation78613
of a 9-1-1 system in the county. If the tax is levied or the rate78614
increased exclusively for such purpose, the tax shall not be78615
levied or the rate increased for more than five years. At the end78616
of the last year the tax is levied or the rate increased, any78617
balance remaining in the special fund established for such purpose78618
shall remain in that fund and be used exclusively for such purpose78619
until the fund is completely expended, and, notwithstanding78620
section 5705.16 of the Revised Code, the board of county78621
commissioners shall not petition for the transfer of money from78622
such special fund, and the tax commissioner shall not approve such78623
a petition.78624

       If the tax is levied or the rate increased for such purpose78625
for more than five years, the board of county commissioners also78626
shall levy the tax or increase the rate of the tax for one or more78627
of the purposes described in divisions (A)(1) to (5) of this78628
section and shall prescribe the method for allocating the revenues78629
from the tax each year in the manner required by division (C) of78630
this section.78631

       (7) To provide additional revenue for the operation or78632
maintenance of a detention facility, as that term is defined under78633
division (F) of section 2921.01 of the Revised Code;78634

       (8) To provide revenue to finance the construction or78635
renovation of a sports facility, but only if the tax is levied for78636
that purpose in the manner prescribed by section 5739.028 of the78637
Revised Code.78638

       As used in division (A)(8) of this section:78639

       (a) "Sports facility" means a facility intended to house78640
major league professional athletic teams.78641

       (b) "Constructing" or "construction" includes providing78642
fixtures, furnishings, and equipment.78643

       (9) To provide additional revenue for the acquisition of78644
agricultural easements, as defined in section 5301.67 of the78645
Revised Code; to pay principal, interest, and premium on bonds78646
issued under section 133.60 of the Revised Code; and for the78647
supervision and enforcement of agricultural easements held by the78648
county;78649

       (10) To provide revenue for the provision of ambulance, 78650
paramedic, or other emergency medical services.78651

       Pursuant to section 755.171 of the Revised Code, a board of78652
county commissioners may pledge and contribute revenue from a tax78653
levied for the purpose of division (A)(5) of this section to the78654
payment of debt charges on bonds issued under section 755.17 of78655
the Revised Code.78656

       The rate of tax shall be a multiple of one-fourth of one per78657
cent, unless a portion of the rate of an existing tax levied under78658
section 5739.023 of the Revised Code has been reduced, and the78659
rate of tax levied under this section has been increased, pursuant78660
to section 5739.028 of the Revised Code, in which case the78661
aggregate of the rates of tax levied under this section and78662
section 5739.023 of the Revised Code shall be a multiple of78663
one-fourth of one per cent. The tax shall be levied and the rate78664
increased pursuant to a resolution adopted by a majority of the78665
members of the board. The board shall deliver a certified copy of 78666
the resolution to the tax commissioner, not later than the 78667
sixty-fifth day prior to the date on which the tax is to become 78668
effective, which shall be the first day of a calendar quarter.78669

       Prior to the adoption of any resolution to levy the tax or to78670
increase the rate of tax exclusively for the purpose set forth in78671
division (A)(3) of this section, the board of county commissioners78672
shall conduct two public hearings on the resolution, the second78673
hearing to be no fewer than three nor more than ten days after the78674
first. Notice of the date, time, and place of the hearings shall78675
be given by publication in a newspaper of general circulation in78676
the county once a week on the same day of the week for two78677
consecutive weeks, the second publication being no fewer than ten78678
nor more than thirty days prior to the first hearing. Except as78679
provided in division (E) of this section, the resolution shall be 78680
subject to a referendum as provided in sections 305.31 to 305.41 78681
of the Revised Code. Unless the resolution is adopted as an 78682
emergency measure, or is to be submitted to the electors of the 78683
county under division (D)(2)(a) of this section, the resolution 78684
shall be adopted at least one hundred twenty days prior to the 78685
date on which the tax or the increased rate of tax is to go into 78686
effect. If the resolution is adopted as an emergency measure 78687
necessary for the immediate preservation of the public peace, 78688
health, or safety, it must receive an affirmative vote of all of78689
the members of the board of county commissioners and shall state78690
the reasons for the necessity.78691

       If the tax is for more than one of the purposes set forth in78692
divisions (A)(1) to (7), (9), and (10) of this section, or is78693
exclusively for one of the purposes set forth in division (A)(1), 78694
(2), (4), (5), (6), (7), (9), or (10) of this section, the 78695
resolution shall not go into effect unless it is approved by a 78696
majority of the electors voting on the question of the tax.78697

       (B) The board of county commissioners shall adopt a78698
resolution under section 351.02 of the Revised Code creating the78699
convention facilities authority, or under section 307.283 of the78700
Revised Code creating the community improvements board, before78701
adopting a resolution levying a tax for the purpose of a78702
convention facilities authority under division (A)(1) of this78703
section or for the purpose of a community improvements board under78704
division (A)(4) of this section.78705

       (C)(1) If the tax is to be used for more than one of the78706
purposes set forth in divisions (A)(1) to (7), (9), and (10) of 78707
this section, the board of county commissioners shall establish 78708
the method that will be used to determine the amount or proportion 78709
of the tax revenue received by the county during each year that 78710
will be distributed for each of those purposes, including, if78711
applicable, provisions governing the reallocation of a convention78712
facilities authority's allocation if the authority is dissolved78713
while the tax is in effect. The allocation method may provide that78714
different proportions or amounts of the tax shall be distributed78715
among the purposes in different years, but it shall clearly78716
describe the method that will be used for each year. Except as78717
otherwise provided in division (C)(2) of this section, the 78718
allocation method established by the board is not subject to78719
amendment during the life of the tax.78720

       (2) Subsequent to holding a public hearing on the proposed78721
amendment, the board of county commissioners may amend the78722
allocation method established under division (C)(1) of this78723
section for any year, if the amendment is approved by the78724
governing board of each entity whose allocation for the year would78725
be reduced by the proposed amendment. In the case of a tax that is 78726
levied for a continuing period of time, the board may not so amend 78727
the allocation method for any year before the sixth year that the 78728
tax is in effect.78729

       (a) If the additional revenues provided to the convention78730
facilities authority are pledged by the authority for the payment78731
of convention facilities authority revenue bonds for as long as78732
such bonds are outstanding, no reduction of the authority's78733
allocation of the tax shall be made for any year except to the78734
extent that the reduced authority allocation, when combined with78735
the authority's other revenues pledged for that purpose, is78736
sufficient to meet the debt service requirements for that year on78737
such bonds.78738

       (b) If the additional revenues provided to the county are78739
pledged by the county for the payment of bonds or notes described78740
in division (A)(4) or (5) of this section, for as long as such78741
bonds or notes are outstanding, no reduction of the county's or78742
the community improvements board's allocation of the tax shall be78743
made for any year, except to the extent that the reduced county or78744
community improvements board allocation is sufficient to meet the78745
debt service requirements for that year on such bonds or notes.78746

       (c) If the additional revenues provided to the transit78747
authority are pledged by the authority for the payment of revenue78748
bonds issued under section 306.37 of the Revised Code, for as long78749
as such bonds are outstanding, no reduction of the authority's78750
allocation of tax shall be made for any year, except to the extent78751
that the authority's reduced allocation, when combined with the78752
authority's other revenues pledged for that purpose, is sufficient78753
to meet the debt service requirements for that year on such bonds.78754

       (d) If the additional revenues provided to the county are78755
pledged by the county for the payment of bonds or notes issued78756
under section 133.60 of the Revised Code, for so long as the bonds78757
or notes are outstanding, no reduction of the county's allocation78758
of the tax shall be made for any year, except to the extent that78759
the reduced county allocation is sufficient to meet the debt78760
service requirements for that year on the bonds or notes.78761

       (D)(1) The resolution levying the tax or increasing the rate78762
of tax shall state the rate of the tax or the rate of the78763
increase; the purpose or purposes for which it is to be levied;78764
the number of years for which it is to be levied or that it is for78765
a continuing period of time; the allocation method required by78766
division (C) of this section; and if required to be submitted to78767
the electors of the county under division (A) of this section, the78768
date of the election at which the proposal shall be submitted to78769
the electors of the county, which shall be not less than78770
seventy-five days after the certification of a copy of the78771
resolution to the board of elections and, if the tax is to be78772
levied exclusively for the purpose set forth in division (A)(3) of78773
this section, shall not occur in February or August of any year.78774
Upon certification of the resolution to the board of elections,78775
the board of county commissioners shall notify the tax78776
commissioner in writing of the levy question to be submitted to78777
the electors. If approved by a majority of the electors, the tax78778
shall become effective on the first day of a calendar quarter next 78779
following the sixty-fifth day following the date the board of78780
county commissioners and tax commissioner receive from the board 78781
of elections the certification of the results of the election, 78782
except as provided in division (E) of this section.78783

       (2)(a) A resolution specifying that the tax is to be used78784
exclusively for the purpose set forth in division (A)(3) of this78785
section that is not adopted as an emergency measure may direct the78786
board of elections to submit the question of levying the tax or78787
increasing the rate of the tax to the electors of the county at a78788
special election held on the date specified by the board of county78789
commissioners in the resolution, provided that the election occurs78790
not less than seventy-five days after the resolution is certified78791
to the board of elections and the election is not held in February78792
or August of any year. Upon certification of the resolution to the 78793
board of elections, the board of county commissioners shall notify 78794
the tax commissioner in writing of the levy question to be78795
submitted to the electors. No resolution adopted under division78796
(D)(2)(a) of this section shall go into effect unless approved by78797
a majority of those voting upon it and, except as provided in78798
division (E) of this section, not until the first day of a78799
calendar quarter following the expiration of sixty-five days from 78800
the date the tax commissioner receives notice from the board of78801
elections of the affirmative vote.78802

       (b) A resolution specifying that the tax is to be used78803
exclusively for the purpose set forth in division (A)(3) of this78804
section that is adopted as an emergency measure shall become78805
effective as provided in division (A) of this section, but may78806
direct the board of elections to submit the question of repealing78807
the tax or increase in the rate of the tax to the electors of the78808
county at the next general election in the county occurring not78809
less than seventy-five days after the resolution is certified to78810
the board of elections. Upon certification of the resolution to78811
the board of elections, the board of county commissioners shall78812
notify the tax commissioner in writing of the levy question to be78813
submitted to the electors. The ballot question shall be the same78814
as that prescribed in section 5739.022 of the Revised Code. The78815
board of elections shall notify the board of county commissioners78816
and the tax commissioner of the result of the election immediately78817
after the result has been declared. If a majority of the qualified 78818
electors voting on the question of repealing the tax or increase 78819
in the rate of the tax vote for repeal of the tax or repeal of the 78820
increase, the board of county commissioners, on the first day of a 78821
calendar quarter following the expiration of sixty-five days after 78822
the date the board and tax commissioner received notice of the78823
result of the election, shall, in the case of a repeal of the tax,78824
cease to levy the tax, or, in the case of a repeal of an increase78825
in the rate of the tax, cease to levy the increased rate and levy78826
the tax at the rate at which it was imposed immediately prior to78827
the increase in rate.78828

       (c) A board of county commissioners, by resolution, may78829
reduce the rate of a tax levied exclusively for the purpose set78830
forth in division (A)(3) of this section to a lower rate78831
authorized by this section. Any such reduction shall be made78832
effective on the first day of the calendar quarter next following 78833
the sixty-fifth day after the tax commissioner receives a 78834
certified copy of the resolution from the board.78835

       (E) If a vendor that is registered with the central78836
electronic registration system provided for in section 5740.05 of78837
the Revised Code makes a sale in this state by printed catalog and 78838
the consumer computed the tax on the sale based on local rates78839
published in the catalog, any tax levied or repealed or rate 78840
changed under this section shall not apply to such a sale until 78841
the first day of a calendar quarter following the expiration of 78842
one hundred twenty days from the date of notice by the tax 78843
commissioner pursuant to division (G) of this section.78844

       (F) The tax levied pursuant to this section shall be in78845
addition to the tax levied by section 5739.02 of the Revised Code78846
and any tax levied pursuant to section 5739.021 or 5739.023 of the78847
Revised Code.78848

       A county that levies a tax pursuant to this section shall78849
levy a tax at the same rate pursuant to section 5741.023 of the78850
Revised Code.78851

       The additional tax levied by the county shall be collected78852
pursuant to section 5739.025 of the Revised Code.78853

       Any tax levied pursuant to this section is subject to the78854
exemptions provided in section 5739.02 of the Revised Code and in78855
addition shall not be applicable to sales not within the taxing78856
power of a county under the Constitution of the United States or78857
the Ohio Constitution.78858

       (G) Upon receipt from a board of county commissioners of a 78859
certified copy of a resolution required by division (A) of this 78860
section, or from the board of elections a notice of the results of 78861
an election required by division (D)(1), (2)(a), (b), or (c) of 78862
this section, the tax commissioner shall provide notice of a tax 78863
rate change in a manner that is reasonably accessible to all 78864
affected vendors. The commissioner shall provide this notice at 78865
least sixty days prior to the effective date of the rate change. 78866
The commissioner, by rule, may establish the method by which 78867
notice will be provided.78868

       Sec. 5739.03.  (A) Except as provided in section 5739.05 of78869
the Revised Code, the tax imposed by or pursuant to section78870
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code shall78871
be paid by the consumer to the vendor, and each vendor shall78872
collect from the consumer, as a trustee for the state of Ohio, the78873
full and exact amount of the tax payable on each taxable sale, in78874
the manner and at the times provided as follows:78875

       (1) If the price is, at or prior to the provision of the78876
service or the delivery of possession of the thing sold to the78877
consumer, paid in currency passed from hand to hand by the78878
consumer or the consumer's agent to the vendor or the vendor's78879
agent, the vendor or the vendor's agent shall collect the tax with78880
and at the same time as the price;78881

       (2) If the price is otherwise paid or to be paid, the vendor78882
or the vendor's agent shall, at or prior to the provision of the78883
service or the delivery of possession of the thing sold to the78884
consumer, charge the tax imposed by or pursuant to section78885
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code to78886
the account of the consumer, which amount shall be collected by78887
the vendor from the consumer in addition to the price. Such sale78888
shall be reported on and the amount of the tax applicable thereto78889
shall be remitted with the return for the period in which the sale78890
is made, and the amount of the tax shall become a legal charge in78891
favor of the vendor and against the consumer.78892

       (B)(1)(a) If any sale is claimed to be exempt under division78893
(E) of section 5739.01 of the Revised Code or under section78894
5739.02 of the Revised Code, with the exception of divisions78895
(B)(1) to (11) or (28) of section 5739.02 of the Revised Code, the78896
consumer must provide to the vendor, and the vendor must obtain78897
from the consumer, a certificate specifying the reason that the78898
sale is not legally subject to the tax. The certificate shall be78899
in such form, and shall be provided either in a hard copy form or 78900
electronic form, as prescribed by the tax commissioner prescribes. 78901
If the transaction is claimed to be exempt under division (B)(13) 78902
of section 5739.02 of the Revised Code, the exemption certificate 78903
shall be provided by both the contractor and the contractee. Such78904
contractee shall be deemed to be the consumer of all items78905
purchased under such claim of exemption, if it is subsequently 78906
determined that the exemption is not properly claimed. The 78907
certificate shall be in such form as the tax commissioner by 78908
regulation prescribes.78909

       (b) A vendor that obtains a fully completed exemption 78910
certificate from a consumer is relieved of liability for 78911
collecting and remitting tax on any sale covered by that 78912
certificate. If it is determined the exemption was improperly 78913
claimed, the consumer shall be liable for any tax due on that sale 78914
under section 5739.02, 5739.021, 5739.023, or 5739.026 or Chapter 78915
5741. of the Revised Code. Relief under this division from 78916
liability does not apply to any of the following:78917

       (i) A vendor that fraudulently fails to collect tax;78918

       (ii) A vendor that solicits consumers to participate in the 78919
unlawful claim of an exemption;78920

       (iii) A vendor that accepts an exemption certificate from a 78921
consumer that claims an exemption based on who purchases or who 78922
sells property or a service, when the subject of the transaction 78923
sought to be covered by the exemption certificate is actually 78924
received by the consumer at a location operated by the vendor in 78925
this state, and this state has posted to its web site an exemption 78926
certificate form that clearly and affirmatively indicates that the 78927
claimed exemption is not available in this state;78928

       (iv) A vendor that accepts an exemption certificate from a 78929
consumer who claims a multiple points of use exemption under 78930
division (B) of section 5739.033 of the Revised Code, if the item 78931
purchased is tangible personal property, other than prewritten 78932
computer software.78933

       (2) The vendor shall maintain records, including exemption78934
certificates, of all sales on which a consumer has claimed an78935
exemption, and provide them to the tax commissioner on request.78936

       (3) The tax commissioner may establish an identification78937
system whereby the commissioner issues an identification number to78938
a consumer that is exempt from payment of the tax. The consumer78939
must present the number to the vendor, if any sale is claimed to 78940
be exempt as provided in this section.78941

       (4) If no certificate is provided or obtained within the78942
period for filing the return for the period inninety days after 78943
the date on which such sale is consummated, it shall be presumed78944
that the tax applies. Failure to have so provided or obtained a78945
certificate shall not preventpreclude a vendor or consumer, 78946
within one hundred twenty days after the tax commissioner gives 78947
written notice of intent to levy an assessment, from either78948
establishing that the sale is not subject to the tax within one 78949
hundred twenty days of the giving of notice by the commissioner of 78950
intention to levy an assessment, in which event the tax shall not78951
apply, or obtaining, in good faith, a fully completed exemption 78952
certificate.78953

       (5) Certificates need not be obtained nor provided where the78954
identity of the consumer is such that the transaction is never78955
subject to the tax imposed or where the item of tangible personal78956
property sold or the service provided is never subject to the tax78957
imposed, regardless of use, or when the sale is in interstate78958
commerce.78959

       (6) If a transaction is claimed to be exempt under division 78960
(B)(13) of section 5739.02 of the Revised Code, the contractor 78961
shall obtain certification of the claimed exemption from the 78962
contractee. This certification shall be in addition to an 78963
exemption certificate provided by the contractor to the vendor. A 78964
contractee that provides a certification under this division shall 78965
be deemed to be the consumer of all items purchased by the 78966
contractor under the claim of exemption, if it is subsequently 78967
determined that the exemption is not properly claimed. The 78968
certification shall be in such form as the tax commissioner 78969
prescribes.78970

       (C) As used in this division, "contractee" means a person who 78971
seeks to enter or enters into a contract or agreement with a78972
contractor or vendor for the construction of real property or for78973
the sale and installation onto real property of tangible personal78974
property.78975

       Any contractor or vendor may request from any contractee a78976
certification of what portion of the property to be transferred78977
under such contract or agreement is to be incorporated into the78978
realty and what portion will retain its status as tangible78979
personal property after installation is completed. The contractor78980
or vendor shall request the certification by certified mail78981
delivered to the contractee, return receipt requested. Upon78982
receipt of such request and prior to entering into the contract or78983
agreement, the contractee shall provide to the contractor or78984
vendor a certification sufficiently detailed to enable the78985
contractor or vendor to ascertain the resulting classification of78986
all materials purchased or fabricated by the contractor or vendor78987
and transferred to the contractee. This requirement applies to a78988
contractee regardless of whether the contractee holds a direct78989
payment permit under section 5739.031 of the Revised Code or 78990
provides to the contractor or vendor an exemption certificate as78991
provided under this section.78992

       For the purposes of the taxes levied by this chapter and78993
Chapter 5741. of the Revised Code, the contractor or vendor may in78994
good faith rely on the contractee's certification. Notwithstanding78995
division (B) of section 5739.01 of the Revised Code, if the tax78996
commissioner determines that certain property certified by the78997
contractee as tangible personal property pursuant to this division78998
is, in fact, real property, the contractee shall be considered to78999
be the consumer of all materials so incorporated into that real79000
property and shall be liable for the applicable tax, and the79001
contractor or vendor shall be excused from any liability on those79002
materials.79003

       If a contractee fails to provide such certification upon the79004
request of the contractor or vendor, the contractor or vendor79005
shall comply with the provisions of this chapter and Chapter 5741.79006
of the Revised Code without the certification. If the tax79007
commissioner determines that such compliance has been performed in79008
good faith and that certain property treated as tangible personal79009
property by the contractor or vendor is, in fact, real property,79010
the contractee shall be considered to be the consumer of all79011
materials so incorporated into that real property and shall be79012
liable for the applicable tax, and the construction contractor or79013
vendor shall be excused from any liability on those materials.79014

       This division does not apply to any contract or agreement79015
where the tax commissioner determines as a fact that a79016
certification under this division was made solely on the decision79017
or advice of the contractor or vendor.79018

       (D) Notwithstanding division (B) of section 5739.01 of the79019
Revised Code, whenever the total rate of tax imposed under this79020
chapter is increased after the date after a construction contract79021
is entered into, the contractee shall reimburse the construction79022
contractor for any additional tax paid on tangible property79023
consumed or services received pursuant to the contract.79024

       (E) A vendor who files a petition for reassessment contesting 79025
the assessment of tax on sales for which the vendor obtained no 79026
valid exemption certificates and for which the vendor failed to 79027
establish that the sales were properly not subject to the tax 79028
during the one-hundred-twenty-day period allowed under division 79029
(B) of this section, may present to the tax commissioner79030
additional evidence to prove that the sales were properly subject79031
to a claim of exception or exemption. The vendor shall file such79032
evidence within ninety days of the receipt by the vendor of the79033
notice of assessment, except that, upon application and for79034
reasonable cause, the period for submitting such evidence shall be79035
extended thirty days.79036

       The commissioner shall consider such additional evidence in79037
reaching the final determination on the assessment and petition79038
for reassessment.79039

       (F) Whenever a vendor refunds to the consumer the full price79040
of an item of tangible personal property on which the tax imposed79041
under this chapter has been paid, the vendor shall also refund the79042
full amount of the tax paid.79043

       Sec. 5739.033.  This section applies to sales made on and 79044
after July 1, 2005. Sales made before July 1, 2005, are subject to 79045
section 5739.035 of the Revised Code. On and after January 1, 79046
2005, any vendor may irrevocably elect to comply with this section 79047
for all of the vendor's sales and places of business in this 79048
state.79049

        The amount of tax due pursuant to sections 5739.02, 5739.021, 79050
5739.023, and 5739.026 of the Revised Code is the sum of the taxes 79051
imposed pursuant to those sections at the sourcing location of the 79052
sale as determined under this section or, if applicable, under 79053
division (C) of section 5739.031 or section 5739.034 or 5739.035 79054
of the Revised Code. This section applies only to a vendor's or 79055
seller's obligation to collect and remit sales taxes under section 79056
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code or 79057
use taxes under section 5741.02, 5741.021, 5741.022, or 5741.023 79058
of the Revised Code. This section does not affect the obligation 79059
of a consumer to remit use taxes on the storage, use, or other 79060
consumption of tangible personal property or on the benefit 79061
realized of any service provided, to the jurisdiction of that 79062
storage, use, or consumption, or benefit realized.79063

       (A) Except for sales, other than leases, of titled motor 79064
vehicles, titled watercraft, or titled outboard motors as provided 79065
in section 5741.05 of the Revised Code, or as otherwise provided 79066
in this section and section 5739.034 or 5740.10 of the Revised 79067
Code, all sales shall be sourced as follows:79068

       (1) If the consumer or a donee designated by the consumer 79069
receives tangible personal property or a service at a vendor's79070
place of business, the sale shall be sourced to that place of 79071
business.79072

       (2) When the tangible personal property or service is not79073
received at a vendor's place of business, the sale shall be 79074
sourced to the location known to the vendor where the consumer or 79075
the donee designated by the consumer receives the tangible 79076
personal property or service, including the location indicated by79077
instructions for delivery to the consumer or the consumer's donee.79078

       (3) If divisions (A)(1) and (2) of this section do not apply, 79079
the sale shall be sourced to the location indicated by an address 79080
for the consumer that is available from the vendor's business 79081
records that are maintained in the ordinary course of the vendor's79082
business, when use of that address does not constitute bad faith.79083

       (4) If divisions (A)(1), (2), and (3) of this section do not79084
apply, the sale shall be sourced to the location indicated by an 79085
address for the consumer obtained during the consummation of the 79086
sale, including the address associated with the consumer's payment 79087
instrument, if no other address is available, when use of that 79088
address does not constitute bad faith.79089

       (5) If divisions (A)(1), (2), (3), and (4) of this section do 79090
not apply, including in the circumstance where the vendor is79091
without sufficient information to apply any of those divisions, 79092
the sale shall be sourced to the address from which tangible 79093
personal property was shipped, or from which the service was 79094
provided, disregarding any location that merely provided the 79095
electronic transfer of the property sold or service provided.79096

       (6) As used in division (A) of this section, "receive" means79097
taking possession of tangible personal property or making first79098
use of a service. "Receive" does not include possession by a79099
shipping company on behalf of a consumer.79100

       (B)(1)(a) Notwithstanding divisions (A)(1) to (5) of this79101
section, a business consumer that is not a holder of a direct 79102
payment permit granted under section 5739.031 of the Revised Code, 79103
that purchases a digital good, computer software delivered 79104
electronically, except computer software received in person by a 79105
business consumer at a vendor's place of business, or a service 79106
for use in business, and that knows at the time of purchase that 79107
such digital good, software, or service will be concurrently79108
available for use in more than one taxing jurisdiction shall79109
deliver to the vendor in conjunction with its purchase aan 79110
exemption certificate claiming multiple points of use exemption 79111
form prescribed by the tax commissioner disclosing this fact, or 79112
shall meet the requirements of division (B)(2) of this section. On 79113
receipt of the exemption certificate claiming multiple points of 79114
use exemption form, the vendor is relieved of its obligation to79115
collect, pay, or remit the tax due, and the business consumer must 79116
pay the tax directly to the state.79117

       (2)(b) A business consumer that delivers such formthe 79118
exemption certificate claiming multiple points of use to a vendor 79119
may use any reasonable, consistent, and uniform method of 79120
apportioning the tax due on the digital good, computer software 79121
delivered electronically, or service for use in business that is79122
supported by the consumer's business records as they existed at79123
the time of the sale. The business consumer shall report and pay 79124
the appropriate tax to each jurisdiction where concurrent use 79125
occurs. The tax due shall be calculated as if the apportioned 79126
amount of the digital good, computer software, or service had been 79127
delivered to each jurisdiction to which the sale is apportioned 79128
under this division.79129

       (3)(c) The exemption certificate claiming multiple points of 79130
use exemption form shall remain in effect for all future sales by 79131
the vendor to the business consumer until it is revoked in writing 79132
by the business consumer, except as to the business consumer's 79133
specific apportionment of a subsequent sale under division 79134
(B)(2)(1)(b) of this section and the facts existing at the time of79135
the sale.79136

       (2) When the vendor knows that a digital good, computer 79137
software, or service sold will be concurrently available for use 79138
by the business consumer in more than one jurisdiction, but the 79139
business consumer does not provide an exemption certificate 79140
claiming multiple points of use as required by division (B)(1) of 79141
this section, the vendor may work with the business consumer to 79142
produce the correct apportionment. Governed by the principles of 79143
division (B)(1)(b) of this section, the vendor and business 79144
consumer may use any reasonable, but consistent and uniform, 79145
method of apportionment that is supported by the vendor's and 79146
business consumer's books and records as they exist at the time 79147
the sale is reported for purposes of the taxes levied under this 79148
chapter. If the business consumer certifies to the accuracy of the 79149
apportionment and the vendor accepts the certification, the vendor 79150
shall collect and remit the tax accordingly. In the absence of bad 79151
faith, the vendor is relieved of any further obligation to collect 79152
tax on any transaction where the vendor has collected tax pursuant 79153
to the information certified by the business consumer.79154

        (3) When the vendor knows that the digital good, computer 79155
software, or service will be concurrently available for use in 79156
more than one jurisdiction, and the business consumer does not 79157
have a direct pay permit and does not provide to the vendor an 79158
exemption certificate claiming multiple points of use as required 79159
in division (B)(1) of this section, or certification pursuant to 79160
division (B)(2) of this section, the vendor shall collect and 79161
remit the tax based on division (A) of this section.79162

        (4) Nothing in this section shall limit a person's obligation 79163
for sales or use tax to any state in which a digital good, 79164
computer software, or service is concurrently available for use, 79165
nor limit a person's ability under local, state, or federal law, 79166
to claim a credit for sales or use taxes legally due and paid to 79167
other jurisdictions.79168

       (C) A person who holds a direct payment permit issued under79169
section 5739.031 of the Revised Code is not required to deliver a79170
an exemption certificate claiming multiple points of use exemption 79171
form to a vendor. But such permit holder shall comply with 79172
division (B)(2)(1)(b) of this section in apportioning the tax due 79173
on a digital good, computer software delivered electronically, or 79174
a service usedfor use in business that will be concurrently 79175
available for use in more than one taxing jurisdiction.79176

       (D)(1) Notwithstanding divisions (A)(1) to (5) of this 79177
section, the purchaserconsumer of direct mail that is not a 79178
holder of a direct payment permit shall provide to the vendor in 79179
conjunction with the purchasesale either aan exemption 79180
certificate claiming direct mail form prescribed by the tax 79181
commissioner, or information to show the jurisdictions to which 79182
the direct mail is delivered to recipients.79183

       (2) Upon receipt of a direct mail formsuch exemption 79184
certificate, the vendor is relieved of all obligations to collect, 79185
pay, or remit the applicable tax and the purchaserconsumer is 79186
obligated to pay that tax on a direct pay basis. AAn exemption 79187
certificate claiming direct mail form shall remain in effect for 79188
all future sales of direct mail by the vendor to the purchaser79189
consumer until it is revoked in writing.79190

       (3) Upon receipt of information from the purchaserconsumer79191
showing the jurisdictions to which the direct mail is delivered to 79192
recipients, the vendor shall collect the tax according to the 79193
delivery information provided by the purchaserconsumer. In the 79194
absence of bad faith, the vendor is relieved of any further 79195
obligation to collect tax on any transaction where the vendor has 79196
collected tax pursuant to the delivery information provided by the 79197
purchaserconsumer.79198

       (4) If the purchaserconsumer of direct mail does not have a 79199
direct payment permit and does not provide the vendor with either 79200
aan exemption certificate claiming direct mail form or delivery 79201
information as required by division (D)(1) of this section, the 79202
vendor shall collect the tax according to division (A)(5) of this 79203
section. Nothing in division (D)(4) of this section shall limit a 79204
purchaser'sconsumer's obligation to pay sales or use tax to any 79205
state to which the direct mail is delivered.79206

       (5) If a purchaserconsumer of direct mail provides the 79207
vendor with documentation of direct payment authority, the 79208
purchaserconsumer shall not be required to provide aan exemption 79209
certificate claiming direct mail form or delivery information to 79210
the vendor.79211

       (E) If the vendor provides lodging to transient guests as79212
specified in division (B)(2) of section 5739.01 of the Revised79213
Code, the sale shall be sourced to the location where the lodging 79214
is located.79215

       (F)(1) As used in this division and division (G) of this 79216
section, "transportation equipment" means any of the following:79217

        (a) Locomotives and railcars that are utilized for the 79218
carriage of persons or property in interstate commerce.79219

        (b) Trucks and truck-tractors with a gross vehicle weight 79220
rating of greater than ten thousand pounds, trailers, 79221
semi-trailers, or passenger buses that are registered through the 79222
international registration plan and are operated under authority 79223
of a carrier authorized and certificated by the United States 79224
department of transportation or another federal authority to 79225
engage in the carriage of persons or property in interstate 79226
commerce.79227

        (c) Aircraft that are operated by air carriers authorized and 79228
certificated by the United States department of transportation or 79229
another federal authority to engage in the carriage of persons or 79230
property in interstate or foreign commerce.79231

        (d) Containers designed for use on and component parts 79232
attached to or secured on the items set forth in division 79233
(F)(1)(a), (b), or (c) of this section.79234

        (2) A sale, lease, or rental of transportation equipment 79235
shall be sourced pursuant to division (A) of this section.79236

        (G)(1) A lease or rental of tangible personal property that 79237
does not require recurring periodic payments shall be sourced 79238
pursuant to division (A) of this section.79239

        (2) A lease or rental of tangible personal property that 79240
requires recurring periodic payments shall be sourced as follows:79241

        (a) In the case of a motor vehicle, other than a motor 79242
vehicle that is transportation equipment, or an aircraft, other 79243
than an aircraft that is transportation equipment, such lease or 79244
rental shall be sourced to the primary property location as 79245
follows:79246

        (i) ForAn accelerated tax payment on a lease or rental taxed 79247
pursuant to division (A)(2) of section 5739.02 of the Revised 79248
Code,shall be sourced to the primary property location is the 79249
address of the lessee or renter used for titling the motor vehicle 79250
pursuant to section 4505.06 of the Revised Code at the time the 79251
lease or rental is consummated. Any subsequent taxable charges on 79252
the lease or rental shall be sourced to the primary property 79253
location for the period in which the charges are incurred.79254

        (ii) For a lease or rental taxed pursuant to division (A)(3) 79255
of section 5739.02 of the Revised Code, the primary property 79256
location for each lease or rental installment isshall be sourced 79257
to the primary property location for the period covered by the 79258
installment.79259

       (b) In the case of an aircraft, other than an aircraft that 79260
is transportation equipment, such lease or rental shall be sourced 79261
to the primary property location as follows:79262

       (i) For a lease or rental taxed pursuant to division (A)(2) 79263
of section 5739.02 of the Revised Code, the primary property 79264
location is the primary property location at the time the lease or 79265
rental is consummated.79266

       (ii) For a lease or rental taxed pursuant to division (A)(3) 79267
of section 5739.02 of the Revised Code, the primary property 79268
location for each lease or rental installment is the primary 79269
property location for the period covered by the installment.79270

       (c) In the case of a watercraft or an outboard motor required 79271
to be titled in this state pursuant to Chapter 1548. of the 79272
Revised Code, such lease or rental shall be sourced to the primary 79273
property location as follows:79274

       (i) For a lease or rental taxed pursuant to division (A)(2) 79275
of section 5739.02 of the Revised Code, the primary property 79276
location is the address of the lessee or renter shown on the 79277
title.79278

       (ii) For a lease or rental taxed pursuant to division (A)(3) 79279
of section 5739.02 of the Revised Code, the primary property 79280
location for the initial lease or rental installment is the 79281
address of the lessee or renter shown on the title. For each 79282
subsequent installment, the primary property location is the 79283
primary property location for the period covered by the 79284
installment.79285

       (d)(b) In the case of a lease or rental of all other tangible 79286
personal property, other than transportation equipment, such lease 79287
or rental shall be sourced as follows:79288

        (i) ForAn accelerated tax payment on a lease or rental that 79289
is taxed pursuant to division (A)(2) of section 5739.02 of the 79290
Revised Code, the lease or rental shall be sourced pursuant to 79291
division (A) of this section at the time the lease or rental is 79292
consummated. Any subsequent taxable charges on the lease or rental 79293
shall be sourced to the primary property location for the period 79294
in which the charges are incurred.79295

        (ii) For a lease or rental that is taxed pursuant to division 79296
(A)(3) of section 5739.02 of the Revised Code, the initial lease 79297
or rental installment shall be sourced pursuant to division (A) of 79298
this section. Each subsequent installment shall be sourced to the 79299
primary property location for the period covered by the 79300
installment.79301

        (3) As used in division (G) of this section, "primary 79302
property location" means an address for tangible personal property 79303
provided by the lessee or renter that is available to the lessor 79304
or owner from its records maintained in the ordinary course of 79305
business, when use of that address does not constitute bad faith.79306

       Sec. 5739.034. (A) As used in this section:79307

       (1) "Air-to-ground radiotelephone service" means a radio 79308
service, as defined in 47 C.F.R. 22.99, in which common carriers 79309
are authorized to offer and provide radio telecommunications 79310
service for hire to subscribers in aircraft.79311

       (2) "Call-by-call basis" means any method of charging for 79312
telecommunications services where the price is measured by 79313
individual calls.79314

       (3) "Customer" means the person or entity that contracts with 79315
a seller of telecommunications service. If the end user of 79316
telecommunications service is not the contracting party, the end 79317
user of the telecommunications service is the customer of the 79318
telecommunications service. "Customer" does not include a reseller 79319
of telecommunications service or of mobile telecommunications 79320
service of a serving carrier under an agreement to serve the 79321
customer outside the home service provider's licensed service 79322
area.79323

       (4) "End user" means the person who utilizes the 79324
telecommunications service. In the case of a person other than an 79325
individual, "end user" means the individual who utilizes the 79326
service on behalf of the person.79327

       (5) "Home service provider" has the same meaning as in the 79328
"Mobile Telecommunications Sourcing Act," Pub. L. No. 106-252, 114 79329
Stat. 631 (2000), 4 U.S.C. 124(5), as amended.79330

       (6) "Place of primary use" means the street address 79331
representative of where the customer's use of the 79332
telecommunications service primarily occurs, which must be the 79333
residential street address or the primary business street address 79334
of the customer. In the case of mobile telecommunications 79335
services, "place of primary use" must be within the licensed 79336
service area of the home service provider.79337

       (7) "Post-paid calling service" means the telecommunications 79338
service obtained by making a payment on a call-by-call basis 79339
either through the use of a credit card or payment mechanism such 79340
as a bank card, travel card, credit card, or debit card, or by 79341
charge made to a telephone number that is not associated with the 79342
origination or termination of the telecommunications service. 79343
"Post-paid calling service" includes a telecommunications service, 79344
except a prepaid wireless calling service, that would be a prepaid 79345
calling service, but for the fact that it is not exclusively a 79346
telecommunications service.79347

       (8) "Prepaid calling service" means the right to access 79348
exclusively a telecommunications service that must be paid for in 79349
advance, that enables the origination of calls using an access 79350
number or authorization code, whether manually or electronically 79351
dialed, and that is sold in predetermined units or dollars of 79352
which the number declines with use in a known amountand "prepaid 79353
wireless calling service" have the same meanings as in section 79354
5739.01 of the Revised Code.79355

       (9) "Service address" means:79356

       (a) The location of the telecommunications equipment to which 79357
a customer's call is charged and from which the call originates or 79358
terminates, regardless of where the call is billed or paid.79359

       (b) If the location in division (A)(9)(a) of this section is 79360
not known, "service address" means the origination point of the 79361
signal of the telecommunications service first identified by 79362
either the seller's telecommunications system or in information 79363
received by the seller from its service provider, where the system 79364
used to transport such signals is not that of the seller.79365

       (c) If the locations in divisions (A)(9)(a) and (b) of this 79366
section are not known, "service address" means the location of the 79367
customer's place of primary use.79368

       (10) "Private communication service" means a 79369
telecommunications service that entitles a customer to exclusive 79370
or priority use of a communications channel or group of channels 79371
between or among termination points, regardless of the manner in 79372
which the channel or channels are connected, and includes 79373
switching capacity, extension lines, stations, and any other 79374
associated services that are provided in connection with the use 79375
of such channel or channels.79376

       (B) The amount of tax due pursuant to sections 5739.02, 79377
5739.021, 5739.023, and 5739.026 of the Revised Code on sales of 79378
telecommunications service, information service, or mobile 79379
telecommunications service, is the sum of the taxes imposed 79380
pursuant to those sections at the sourcing location of the sale as 79381
determined under this section.79382

       (C) Except for the telecommunications services described in 79383
division (E) of this section, the sale of telecommunications 79384
service sold on a call-by-call basis shall be sourced to each 79385
level of taxing jurisdiction where the call originates and 79386
terminates in that jurisdiction, or each level of taxing 79387
jurisdiction where the call either originates or terminates and in 79388
which the service address also is located.79389

       (D) Except for the telecommunications services described in 79390
division (E) of this section, a sale of telecommunications 79391
services sold on a basis other than a call-by-call basis shall be 79392
sourced to the customer's place of primary use.79393

       (E) The sale of the following telecommunications services 79394
shall be sourced to each level of taxing jurisdiction, as follows:79395

       (1) A sale of mobile telecommunications service, other than 79396
air-to-ground radiotelephone service and prepaid calling service, 79397
shall be sourced to the customer's place of primary use as 79398
required by the Mobile Telecommunications Sourcing Act.79399

       (2) A sale of post-paid calling service shall be sourced to 79400
the origination point of the telecommunications signal as first 79401
identified by the service provider's telecommunications system, or 79402
information received by the seller from its service provider, 79403
where the system used to transport such signals is not that of the 79404
seller.79405

       (3) A sale of mobile telecommunications service that is a79406
prepaid telecommunicationscalling service or prepaid wireless 79407
calling service shall be sourced under division (A) of section 79408
5739.033 of the Revised Code, but. But in the case of prepaid 79409
wireless calling service, in lieu of sourcing the sale of the 79410
service under division (A)(5) of that section 5739.033 of the 79411
Revised Code, it may be sourcedthe service provider may elect to 79412
source the sale to the location associated with the mobile 79413
telephone number.79414

       (4) A sale of a private communication service shall be 79415
sourced as follows:79416

        (a) Service for a separate charge related to a customer 79417
channel termination point shall be sourced to each level of 79418
jurisdiction in which the customer channel termination point is 79419
located;79420

        (b) Service where all customer channel termination points are 79421
located entirely within one jurisdiction or level of jurisdiction 79422
shall be sourced in the jurisdiction in which the customer channel 79423
termination points are located;79424

        (c) Service for segments of a channel between two customer 79425
channel termination points located in different jurisdictions and 79426
which segments of a channel are separately charged shall be 79427
sourced fifty per cent in each level of jurisdiction in which the 79428
customer channel termination points are located;79429

        (d) Service for segments of a channel located in more than 79430
one jurisdiction or level of jurisdiction and which segments are 79431
not separately billed shall be sourced in each jurisdiction based 79432
on the percentage determined by dividing the number of customer 79433
channel termination points in the jurisdiction by the total number 79434
of customer channel termination points.79435

       Sec. 5739.035. This section only applies to sales that are 79436
required to be sitused under this section pursuant to section 79437
5739.033 of the Revised Code.79438

       (A) Except as otherwise provided in this section, the situs 79439
of all sales is the vendor's place of business.79440

       (1) If the consumer or the consumer's agent takes possession79441
of the tangible personal property at a place of business of the79442
vendor where the purchase contract or agreement was made, the79443
situs of the sale is that place of business.79444

       (2) If the consumer or the consumer's agent takes possession79445
of the tangible personal property other than at a place of79446
business of the vendor, or takes possession at a warehouse or79447
similar facility of the vendor, the situs of the sale is the79448
vendor's place of business where the purchase contract or79449
agreement was made or the purchase order was received.79450

       (3) If the vendor provides a service specified in division79451
(B)(3)(a), (b), (c), (d), (n), (o), (q), (r), or (s), or (t) of 79452
section 5739.01 or makes a sale specified in division (B)(8) of 79453
section 5739.01 of the Revised Code, the situs of the sale is the 79454
vendor's place of business where the service is performed or the 79455
contract or agreement for the service was made or the purchase 79456
order was received.79457

       (B) If the vendor is a transient vendor as specified in79458
division (B) of section 5739.17 of the Revised Code, the situs of79459
the sale is the vendor's temporary place of business or, if the79460
transient vendor is the lessor of titled motor vehicles, titled79461
watercraft, or titled outboard motors, at the location where the79462
lessee keeps the leased property.79463

       (C) If the vendor makes sales of tangible personal property79464
from a stock of goods carried in a motor vehicle, from which the79465
purchaser makes selection and takes possession, or from which the79466
vendor sells tangible personal property the quantity of which has79467
not been determined prior to the time the purchaser takes79468
possession, the situs of the sale is the location of the motor79469
vehicle when the sale is made.79470

       (D) If the vendor is a delivery vendor as specified in79471
division (D) of section 5739.17 of the Revised Code, the situs of79472
the sale is the place where the tangible personal property is79473
delivered, where the leased property is used, or where the service79474
is performed or received.79475

       (E) If the vendor provides a service specified in division79476
(B)(3)(e), (g), (h), (j), (k), (l), (m), (q)(p), or (u)(t) of 79477
section 5739.01 of the Revised Code, the situs of the sale is the79478
location of the consumer where the service is performed or79479
received.79480

       (F) If the vendor provides lodging to transient guests as79481
specified in division (B)(2) of section 5739.01 of the Revised79482
Code, the situs of the sale is the location where the lodging is79483
located.79484

       (G) If the vendor sells a warranty, maintenance or service79485
contract, or similar agreement as specified in division (B)(7) of79486
section 5739.01 of the Revised Code and the vendor is a delivery79487
vendor, the situs of the sale is the location of the consumer. If79488
the vendor is not a delivery vendor, the situs of the sale is the79489
vendor's place of business where the contract or agreement was79490
made, unless the warranty or contract is a component of the sale79491
of a titled motor vehicle, titled watercraft, or titled outboard79492
motor, in which case the situs of the sale is the county of79493
titling.79494

       (H) Except as otherwise provided in this division, if the79495
vendor sells a prepaid authorization number or a prepaid telephone79496
calling card, the situs of the sale is the vendor's place of79497
business and shall be taxed at the time of sale. If the vendor79498
sells a prepaid authorization number or prepaid telephone calling79499
card through a telephone call, electronic commerce, or any other79500
form of remote commerce, the situs of the sale is the consumer's79501
shipping address, or, if there is no item shipped, at the79502
consumer's billing address.79503

       Sec. 5739.08. The levy of an excise tax on transactions by79504
which lodging by a hotel is or is to be furnished to transient79505
guests pursuant to section 5739.02 and division (B) of section79506
5739.01 of the Revised Code does not prevent any of the following:79507

       (A) A municipal corporation or township from levying an79508
excise tax for any lawful purpose not to exceed three per cent on79509
transactions by which lodging by a hotel is or is to be furnished79510
to transient guests in addition to the tax levied by section79511
5739.02 of the Revised Code. If a municipal corporation or79512
township repeals a tax imposed under division (A) of this section,79513
and a county in which the municipal corporation or township has79514
territory has a tax imposed under division (C) of section 5739.0979515
of the Revised Code in effect, the municipal corporation or79516
township may not reimpose its tax as long as that county tax79517
remains in effect. A municipal corporation or township in which a79518
tax is levied under division (B)(2) of section 351.021 of the79519
Revised Code may not increase the rate of its tax levied under79520
division (A) of this section to any rate that would cause the79521
total taxes levied under both of those divisions to exceed three79522
per cent on any lodging transaction within the municipal79523
corporation or township.79524

       (B) A municipal corporation or a township from levying an79525
additional excise tax not to exceed three per cent on such79526
transactions pursuant to division (B) of section 5739.09 of the79527
Revised Code. Such tax is in addition to any tax imposed under79528
division (A) of this section.79529

       (C) A county from levying an excise tax pursuant to division79530
(A) of section 5739.09 of the Revised Code;79531

       (D) A county from levying an excise tax not to exceed three79532
per cent of such transactions pursuant to division (C) of section79533
5739.09 of the Revised Code. Such a tax is in addition to any tax79534
imposed under division (C) of this section.79535

       (E) A convention facilities authority, as defined in division 79536
(A) of section 351.01 of the Revised Code, from levying the excise 79537
taxes provided for in divisiondivisions (B) and (C) of section 79538
351.021 of the Revised Code;79539

       (F) A county from levying an excise tax not to exceed one and 79540
one-half per cent of such transactions pursuant to division (D) of 79541
section 5739.09 of the Revised Code. Such tax is in addition to 79542
any tax imposed under division (C) or (D) of this section.79543

       (G) A county from levying an excise tax not to exceed one and 79544
one-half per cent of such transactions pursuant to division (E) of 79545
section 5739.09 of the Revised Code. Such a tax is in addition to 79546
any tax imposed under division (C), (D), or (F) of this section.79547

       Sec. 5739.09.  (A)(1) A board of county commissioners may, by79548
resolution adopted by a majority of the members of the board, levy 79549
an excise tax not to exceed three per cent on transactions by79550
which lodging by a hotel is or is to be furnished to transient79551
guests. The board shall establish all regulations necessary to79552
provide for the administration and allocation of the tax. The79553
regulations may prescribe the time for payment of the tax, and may79554
provide for the imposition of a penalty or interest, or both, for79555
late payments, provided that the penalty does not exceed ten per79556
cent of the amount of tax due, and the rate at which interest79557
accrues does not exceed the rate per annum prescribed pursuant to79558
section 5703.47 of the Revised Code. Except as provided in79559
divisions (A)(2), (3), (4), and (5) of this section, the79560
regulations shall provide, after deducting the real and actual79561
costs of administering the tax, for the return to each municipal79562
corporation or township that does not levy an excise tax on the79563
transactions, a uniform percentage of the tax collected in the79564
municipal corporation or in the unincorporated portion of the79565
township from each transaction, not to exceed thirty-three and79566
one-third per cent. The remainder of the revenue arising from the79567
tax shall be deposited in a separate fund and shall be spent79568
solely to make contributions to the convention and visitors'79569
bureau operating within the county, including a pledge and79570
contribution of any portion of the remainder pursuant to an79571
agreement authorized by section 307.695 of the Revised Code. 79572
Except as provided in division (A)(2), (3), (4), or (5) or (H) of79573
this section, on and after May 10, 1994, a board of county79574
commissioners may not levy an excise tax pursuant to this division79575
in any municipal corporation or township located wholly or partly79576
within the county that has in effect an ordinance or resolution79577
levying an excise tax pursuant to division (B) of this section.79578
The board of a county that has levied a tax under division (C) of79579
this section may, by resolution adopted within ninety days after79580
July 15, 1985, by a majority of the members of the board, amend79581
the resolution levying a tax under this division to provide for a79582
portion of that tax to be pledged and contributed in accordance79583
with an agreement entered into under section 307.695 of the79584
Revised Code. A tax, any revenue from which is pledged pursuant to 79585
such an agreement, shall remain in effect at the rate at which it 79586
is imposed for the duration of the period for which the revenue 79587
from the tax has been so pledged.79588

       (2) A board of county commissioners that levies an excise tax79589
under division (A)(1) of this section on June 30, 1997, at a rate 79590
of three per cent, and that has pledged revenue from the tax to an 79591
agreement entered into under section 307.695 of the Revised Code,79592
may amend the resolution levying that tax to provide for an79593
increase in the rate of the tax up to five per cent on each79594
transaction; to provide that revenue from the increase in the rate79595
shall be spent solely to make contributions to the convention and79596
visitors' bureau operating within the county to be used79597
specifically for promotion, advertising, and marketing of the79598
region in which the county is located; to provide that the rate in79599
excess of the three per cent levied under division (A)(1) of this79600
section shall remain in effect at the rate at which it is imposed79601
for the duration of the period during which any agreement is in79602
effect that was entered into under section 307.695 of the Revised79603
Code by the board of county commissioners levying a tax under79604
division (A)(1) of this section; and to provide that no portion of79605
that revenue need be returned to townships or municipal79606
corporations as would otherwise be required under division (A)(1)79607
of this section.79608

       (3) A board of county commissioners that levies a tax under79609
division (A)(1) of this section on March 18, 1999, at a rate of79610
three per cent may, by resolution adopted not later than79611
forty-five days after March 18, 1999, amend the resolution levying79612
the tax to provide for all of the following:79613

       (a) That the rate of the tax shall be increased by not more79614
than an additional four per cent on each transaction;79615

       (b) That all of the revenue from the increase in the rate79616
shall be pledged and contributed to a convention facilities79617
authority established by the board of county commissioners under79618
Chapter 351. of the Revised Code on or before November 15, 1998,79619
and used to pay costs of constructing, maintaining, operating, and79620
promoting a facility in the county, including paying bonds, or79621
notes issued in anticipation of bonds, as provided by that79622
chapter;79623

       (c) That no portion of the revenue arising from the increase79624
in rate need be returned to municipal corporations or townships as79625
otherwise required under division (A)(1) of this section;79626

       (d) That the increase in rate shall not be subject to79627
diminution by initiative or referendum or by law while any bonds,79628
or notes in anticipation of bonds, issued by the authority under79629
Chapter 351. of the Revised Code to which the revenue is pledged,79630
remain outstanding in accordance with their terms, unless79631
provision is made by law or by the board of county commissioners79632
for an adequate substitute therefor that is satisfactory to the79633
trustee if a trust agreement secures the bonds.79634

       Division (A)(3) of this section does not apply to the board79635
of county commissioners of any county in which a convention center79636
or facility exists or is being constructed on November 15, 1998,79637
or of any county in which a convention facilities authority levies79638
a tax pursuant to section 351.021 of the Revised Code on that79639
date.79640

       As used in division (A)(3) of this section, "cost" and79641
"facility" have the same meanings as in section 351.01 of the79642
Revised Code, and "convention center" has the same meaning as in79643
section 307.695 of the Revised Code.79644

       (4) A board of county commissioners that levies a tax under79645
division (A)(1) of this section on June 30, 2002, at a rate of79646
three per cent may, by resolution adopted not later than September79647
30, 2002, amend the resolution levying the tax to provide for all79648
of the following:79649

       (a) That the rate of the tax shall be increased by not more79650
than an additional three and one-half per cent on each79651
transaction;79652

       (b) That all of the revenue from the increase in rate shall79653
be pledged and contributed to a convention facilities authority79654
established by the board of county commissioners under Chapter79655
351. of the Revised Code on or before May 15, 2002, and be used to79656
pay costs of constructing, expanding, maintaining, operating, or79657
promoting a convention center in the county, including paying79658
bonds, or notes issued in anticipation of bonds, as provided by79659
that chapter;79660

       (c) That no portion of the revenue arising from the increase79661
in rate need be returned to municipal corporations or townships as79662
otherwise required under division (A)(1) of this section;79663

       (d) That the increase in rate shall not be subject to79664
diminution by initiative or referendum or by law while any bonds,79665
or notes in anticipation of bonds, issued by the authority under79666
Chapter 351. of the Revised Code to which the revenue is pledged,79667
remain outstanding in accordance with their terms, unless79668
provision is made by law or by the board of county commissioners79669
for an adequate substitute therefor that is satisfactory to the79670
trustee if a trust agreement secures the bonds.79671

       As used in division (A)(4) of this section, "cost" has the79672
same meaning as in section 351.01 of the Revised Code, and79673
"convention center" has the same meaning as in section 307.695 of79674
the Revised Code.79675

       (5)(a) As used in division (A)(5) of this section:79676

        (i) "Port authority" means a port authority created under 79677
Chapter 4582. of the Revised Code.79678

        (ii) "Port authority military-use facility" means port 79679
authority facilities on which or adjacent to which is located an 79680
installation of the armed forces of the United States, a reserve 79681
component thereof, or the national guard and at least part of 79682
which is made available for use, for consideration, by the armed 79683
forces of the United States, a reserve component thereof, or the 79684
national guard.79685

        (b) For the purpose of contributing revenue to pay operating 79686
expenses of a port authority that operates a port authority 79687
military-use facility, the board of county commissioners of a 79688
county that created, participated in the creation of, or has 79689
joined such a port authority may do one or both of the following:79690

        (i) Amend a resolution previously adopted under division 79691
(A)(1) of this section to designate some or all of the revenue 79692
from the tax levied under the resolution to be used for that 79693
purpose, notwithstanding that division;79694

       (ii) Amend a resolution previously adopted under division 79695
(A)(1) of this section to increase the rate of the tax by not more 79696
than an additional two per cent and use the revenue from the 79697
increase exclusively for that purpose.79698

        (c) If a board of county commissioners amends a resolution to 79699
increase the rate of a tax as authorized in division (A)(5)(b)(ii) 79700
of this section, the board also may amend the resolution to 79701
specify that the increase in rate of the tax does not apply to 79702
"hotels," as otherwise defined in section 5739.01 of the Revised 79703
Code, having fewer rooms used for the accommodation of guests than 79704
a number of rooms specified by the board.79705

       (B)(1) The legislative authority of a municipal corporation79706
or the board of trustees of a township that is not wholly or79707
partly located in a county that has in effect a resolution levying79708
an excise tax pursuant to division (A)(1) of this section may, by79709
ordinance or resolution, levy an excise tax not to exceed three79710
per cent on transactions by which lodging by a hotel is or is to79711
be furnished to transient guests. The legislative authority of the79712
municipal corporation or the board of trustees of the township79713
shall deposit at least fifty per cent of the revenue from the tax79714
levied pursuant to this division into a separate fund, which shall79715
be spent solely to make contributions to convention and visitors'79716
bureaus operating within the county in which the municipal79717
corporation or township is wholly or partly located, and the79718
balance of that revenue shall be deposited in the general fund.79719
The municipal corporation or township shall establish all79720
regulations necessary to provide for the administration and79721
allocation of the tax. The regulations may prescribe the time for79722
payment of the tax, and may provide for the imposition of a79723
penalty or interest, or both, for late payments, provided that the79724
penalty does not exceed ten per cent of the amount of tax due, and79725
the rate at which interest accrues does not exceed the rate per79726
annum prescribed pursuant to section 5703.47 of the Revised Code.79727
The levy of a tax under this division is in addition to any tax79728
imposed on the same transaction by a municipal corporation or a79729
township as authorized by division (A) of section 5739.08 of the79730
Revised Code.79731

       (2) The legislative authority of the most populous municipal79732
corporation located wholly or partly in a county in which the79733
board of county commissioners has levied a tax under division79734
(A)(4) of this section may amend, on or before September 30, 2002,79735
that municipal corporation's ordinance or resolution that levies79736
an excise tax on transactions by which lodging by a hotel is or is79737
to be furnished to transient guests, to provide for all of the79738
following:79739

       (a) That the rate of the tax shall be increased by not more79740
than an additional one per cent on each transaction;79741

       (b) That all of the revenue from the increase in rate shall79742
be pledged and contributed to a convention facilities authority79743
established by the board of county commissioners under Chapter79744
351. of the Revised Code on or before May 15, 2002, and be used to79745
pay costs of constructing, expanding, maintaining, operating, or79746
promoting a convention center in the county, including paying79747
bonds, or notes issued in anticipation of bonds, as provided by79748
that chapter;79749

       (c) That the increase in rate shall not be subject to79750
diminution by initiative or referendum or by law while any bonds,79751
or notes in anticipation of bonds, issued by the authority under79752
Chapter 351. of the Revised Code to which the revenue is pledged,79753
remain outstanding in accordance with their terms, unless79754
provision is made by law, by the board of county commissioners, or79755
by the legislative authority, for an adequate substitute therefor79756
that is satisfactory to the trustee if a trust agreement secures79757
the bonds.79758

       As used in division (B)(2) of this section, "cost" has the79759
same meaning as in section 351.01 of the Revised Code, and79760
"convention center" has the same meaning as in section 307.695 of79761
the Revised Code.79762

       (C) For the purpose of making the payments authorized by79763
section 307.695 of the Revised Code to construct and equip a79764
convention center in the county and to cover the costs of79765
administering the tax, a board of county commissioners of a county79766
where a tax imposed under division (A)(1) of this section is in79767
effect may, by resolution adopted within ninety days after July79768
15, 1985, by a majority of the members of the board, levy an79769
additional excise tax not to exceed three per cent on transactions79770
by which lodging by a hotel is or is to be furnished to transient79771
guests. The tax authorized by this division shall be in addition79772
to any tax that is levied pursuant to division (A) of this79773
section, but it shall not apply to transactions subject to a tax79774
levied by a municipal corporation or township pursuant to the79775
authorization granted by division (A) of section 5739.08 of the79776
Revised Code. The board shall establish all regulations necessary79777
to provide for the administration and allocation of the tax. The79778
regulations may prescribe the time for payment of the tax, and may79779
provide for the imposition of a penalty or interest, or both, for79780
late payments, provided that the penalty does not exceed ten per79781
cent of the amount of tax due, and the rate at which interest79782
accrues does not exceed the rate per annum prescribed pursuant to79783
section 5703.47 of the Revised Code. All revenues arising from the79784
tax shall be expended in accordance with section 307.695 of the79785
Revised Code. A tax imposed under this division shall remain in79786
effect at the rate at which it is imposed for the duration of the79787
period for which the revenue from the tax has been pledged79788
pursuant to that section.79789

       (D) For the purpose of providing contributions under division 79790
(B)(1) of section 307.671 of the Revised Code to enable the 79791
acquisition, construction, and equipping of a port authority79792
educational and cultural facility in the county and, to the extent79793
provided for in the cooperative agreement authorized by that79794
section, for the purpose of paying debt service charges on bonds,79795
or notes in anticipation of bonds, described in division (B)(1)(b)79796
of that section, a board of county commissioners, by resolution79797
adopted within ninety days after December 22, 1992, by a majority79798
of the members of the board, may levy an additional excise tax not79799
to exceed one and one-half per cent on transactions by which79800
lodging by a hotel is or is to be furnished to transient guests.79801
The excise tax authorized by this division shall be in addition to79802
any tax that is levied pursuant to divisions (A), (B), and (C) of79803
this section, to any excise tax levied pursuant to section 5739.08 79804
of the Revised Code, and to any excise tax levied pursuant to 79805
section 351.021 of the Revised Code. The board of county79806
commissioners shall establish all regulations necessary to provide79807
for the administration and allocation of the tax that are not79808
inconsistent with this section or section 307.671 of the Revised79809
Code. The regulations may prescribe the time for payment of the79810
tax, and may provide for the imposition of a penalty or interest,79811
or both, for late payments, provided that the penalty does not79812
exceed ten per cent of the amount of tax due, and the rate at79813
which interest accrues does not exceed the rate per annum79814
prescribed pursuant to section 5703.47 of the Revised Code. All79815
revenues arising from the tax shall be expended in accordance with79816
section 307.671 of the Revised Code and division (D) of this79817
section. The levy of a tax imposed under this division may not79818
commence prior to the first day of the month next following the79819
execution of the cooperative agreement authorized by section79820
307.671 of the Revised Code by all parties to that agreement. The79821
tax shall remain in effect at the rate at which it is imposed for79822
the period of time described in division (C) of section 307.671 of79823
the Revised Code for which the revenue from the tax has been79824
pledged by the county to the corporation pursuant to that section,79825
but, to any extent provided for in the cooperative agreement, for79826
no lesser period than the period of time required for payment of79827
the debt service charges on bonds, or notes in anticipation of 79828
bonds, described in division (B)(1)(b) of that section.79829

       (E) For the purpose of paying the costs of acquiring,79830
constructing, equipping, and improving a municipal educational and79831
cultural facility, including debt service charges on bonds79832
provided for in division (B) of section 307.672 of the Revised79833
Code, and for any additional purposes determined by the county in 79834
the resolution levying the tax or amendments to the resolution,79835
including subsequent amendments providing for paying costs of79836
acquiring, constructing, renovating, rehabilitating, equipping,79837
and improving a port authority educational and cultural performing79838
arts facility, as defined in section 307.674 of the Revised Code,79839
and including debt service charges on bonds provided for in79840
division (B) of section 307.674 of the Revised Code, the79841
legislative authority of a county, by resolution adopted within79842
ninety days after June 30, 1993, by a majority of the members of79843
the legislative authority, may levy an additional excise tax not79844
to exceed one and one-half per cent on transactions by which79845
lodging by a hotel is or is to be furnished to transient guests.79846
The excise tax authorized by this division shall be in addition to79847
any tax that is levied pursuant to divisions (A), (B), (C), and79848
(D) of this section, to any excise tax levied pursuant to section 79849
5739.08 of the Revised Code, and to any excise tax levied pursuant79850
to section 351.021 of the Revised Code. The legislative authority79851
of the county shall establish all regulations necessary to provide79852
for the administration and allocation of the tax. The regulations79853
may prescribe the time for payment of the tax, and may provide for79854
the imposition of a penalty or interest, or both, for late79855
payments, provided that the penalty does not exceed ten per cent79856
of the amount of tax due, and the rate at which interest accrues79857
does not exceed the rate per annum prescribed pursuant to section79858
5703.47 of the Revised Code. All revenues arising from the tax79859
shall be expended in accordance with section 307.672 of the79860
Revised Code and this division. The levy of a tax imposed under79861
this division shall not commence prior to the first day of the79862
month next following the execution of the cooperative agreement79863
authorized by section 307.672 of the Revised Code by all parties79864
to that agreement. The tax shall remain in effect at the rate at79865
which it is imposed for the period of time determined by the79866
legislative authority of the county, but not to exceed fifteen79867
years.79868

       (F) The legislative authority of a county that has levied a79869
tax under division (E) of this section may, by resolution adopted79870
within one hundred eighty days after January 4, 2001, by a79871
majority of the members of the legislative authority, amend the79872
resolution levying a tax under that division to provide for the79873
use of the proceeds of that tax, to the extent that it is no79874
longer needed for its original purpose as determined by the79875
parties to a cooperative agreement amendment pursuant to division79876
(D) of section 307.672 of the Revised Code, to pay costs of79877
acquiring, constructing, renovating, rehabilitating, equipping,79878
and improving a port authority educational and cultural performing79879
arts facility, including debt service charges on bonds provided79880
for in division (B) of section 307.674 of the Revised Code, and to79881
pay all obligations under any guaranty agreements, reimbursement79882
agreements, or other credit enhancement agreements described in79883
division (C) of section 307.674 of the Revised Code. The79884
resolution may also provide for the extension of the tax at the79885
same rate for the longer of the period of time determined by the79886
legislative authority of the county, but not to exceed an79887
additional twenty-five years, or the period of time required to79888
pay all debt service charges on bonds provided for in division (B)79889
of section 307.672 of the Revised Code and on port authority79890
revenue bonds provided for in division (B) of section 307.674 of79891
the Revised Code. All revenues arising from the amendment and79892
extension of the tax shall be expended in accordance with section79893
307.674 of the Revised Code, this division, and division (E) of79894
this section.79895

       (G) For purposes of a tax levied by a county, township, or79896
municipal corporation under this section or section 5739.08 of the 79897
Revised Code, a board of county commissioners, board of township79898
trustees, or the legislative authority of a municipal corporation79899
may adopt a resolution or ordinance at any time specifying that79900
"hotel," as otherwise defined in section 5739.01 of the Revised79901
Code, includes establishments in which fewer than five rooms are79902
used for the accommodation of guests. The resolution or ordinance79903
may apply to a tax imposed pursuant to this section prior to the79904
adoption of the resolution or ordinance if the resolution or79905
ordinance so states, but the tax shall not apply to transactions79906
by which lodging by such an establishment is provided to transient79907
guests prior to the adoption of the resolution or ordinance.79908

       (H)(1) As used in this division:79909

       (a) "Convention facilities authority" has the same meaning as 79910
in section 351.01 of the Revised Code.79911

       (b) "Convention center" has the same meaning as in section 79912
307.695 of the Revised Code.79913

       (2) Notwithstanding any contrary provision of division (D) of 79914
this section, the legislative authority of a county with a 79915
population of one million or more according to the most recent 79916
federal decennial census that has levied a tax under division (D) 79917
of this section may, by resolution adopted by a majority of the 79918
members of the legislative authority, provide for the extension of 79919
such levy and may provide that the proceeds of that tax, to the 79920
extent that they are no longer needed for their original purpose 79921
as defined by a cooperative agreement entered into under section 79922
307.671 of the Revised Code, shall be deposited into the county 79923
general revenue fund. The resolution shall provide for the 79924
extension of the tax at a rate not to exceed the rate specified in 79925
division (D) of this section for a period of time determined by 79926
the legislative authority of the county, but not to exceed an 79927
additional forty years.79928

       (3) The legislative authority of a county with a population 79929
of one million or more that has levied a tax under division (A)(1) 79930
of this section may, by resolution adopted by a majority of the 79931
members of the legislative authority, increase the rate of the tax 79932
levied by such county under division (A)(1) of this section to a 79933
rate not to exceed five per cent on transactions by which lodging 79934
by a hotel is or is to be furnished to transient guests. 79935
Notwithstanding any contrary provision of division (A)(1) of this 79936
section, the resolution may provide that all collections resulting 79937
from the rate levied in excess of three per cent, after deducting 79938
the real and actual costs of administering the tax, shall be 79939
deposited in the county general fund.79940

       (4) The legislative authority of a county with a population 79941
of one million or more that has levied a tax under division (A)(1) 79942
of this section may, by resolution adopted on or before August 30, 79943
2004, by a majority of the members of the legislative authority, 79944
provide that all or a portion of the proceeds of the tax levied 79945
under division (A)(1) of this section, after deducting the real 79946
and actual costs of administering the tax and the amounts required 79947
to be returned to townships and municipal corporations with 79948
respect to the first three per cent levied under division (A)(1) 79949
of this section, shall be deposited in the county general fund, 79950
provided that such proceeds shall be used to satisfy any pledges 79951
made in connection with an agreement entered into under section 79952
307.695 of the Revised Code.79953

       (5) No amount collected from a tax levied, extended, or 79954
required to be deposited in the county general fund under division 79955
(H) of this section shall be contributed to a convention 79956
facilities authority, corporation, or other entity created after 79957
July 1, 2003, for the principal purpose of constructing, 79958
improving, expanding, equipping, financing, or operating a 79959
convention center unless the mayor of the municipal corporation in 79960
which the convention center is to be operated by that convention 79961
facilities authority, corporation, or other entity has consented 79962
to the creation of that convention facilities authority, 79963
corporation, or entity. Notwithstanding any contrary provision of 79964
section 351.04 of the Revised Code, if a tax is levied by a county 79965
under division (H) of this section, the board of county 79966
commissioners of that county may determine the manner of 79967
selection, the qualifications, the number, and terms of office of 79968
the members of the board of directors of any convention facilities 79969
authority, corporation, or other entity described in division 79970
(H)(5) of this section.79971

       (6)(a) No amount collected from a tax levied, extended, or 79972
required to be deposited in the county general fund under division 79973
(H) of this section may be used for any purpose other than paying 79974
the direct and indirect costs of constructing, improving, 79975
expanding, equipping, financing, or operating a convention center 79976
and for the real and actual costs of administering the tax, 79977
unless, prior to the adoption of the resolution of the legislative 79978
authority of the county authorizing the levy, extension, increase, 79979
or deposit, the county and the mayor of the most populous 79980
municipal corporation in that county have entered into an 79981
agreement as to the use of such amounts, provided that such 79982
agreement has been approved by a majority of the mayors of the 79983
other municipal corporations in that county. The agreement shall 79984
provide that the amounts to be used for purposes other than paying 79985
the convention center or administrative costs described in 79986
division (H)(6)(a) of this section be used only for the direct and 79987
indirect costs of capital improvements, including the financing of 79988
capital improvements.79989

       (b) If the county in which the tax is levied has an 79990
association of mayors and city managers, the approval of that 79991
association of an agreement described in division (H)(6)(a) of 79992
this section shall be considered to be the approval of the 79993
majority of the mayors of the other municipal corporations for 79994
purposes of that division.79995

       (7) Each year, the auditor of state shall conduct an audit of 79996
the uses of any amounts collected from taxes levied, extended, or 79997
deposited under division (H) of this section and shall prepare a 79998
report of the auditor of state's findings. The auditor of state 79999
shall submit the report to the legislative authority of the county 80000
that has levied, extended, or deposited the tax, the speaker of 80001
the house of representatives, the president of the senate, and the 80002
leaders of the minority parties of the house of representatives 80003
and the senate.80004

       (I)(1) As used in this division:80005

       (a) "Convention facilities authority" has the same meaning as 80006
in section 351.01 of the Revised Code.80007

       (b) "Convention center" has the same meaning as in section 80008
307.695 of the Revised Code.80009

       (2) Notwithstanding any contrary provision of division (D) of 80010
this section, the legislative authority of a county with a 80011
population of one million two hundred thousand or more according 80012
to the most recent federal decennial census or the most recent 80013
annual population estimate published or released by the United 80014
States census bureau at the time the resolution is adopted placing 80015
the levy on the ballot, that has levied a tax under division (D) 80016
of this section may, by resolution adopted by a majority of the 80017
members of the legislative authority, provide for the extension of 80018
such levy and may provide that the proceeds of that tax, to the 80019
extent that the proceeds are no longer needed for their original 80020
purpose as defined by a cooperative agreement entered into under 80021
section 307.671 of the Revised Code and after deducting the real 80022
and actual costs of administering the tax, shall be used for 80023
paying the direct and indirect costs of constructing, improving, 80024
expanding, equipping, financing, or operating a convention center. 80025
The resolution shall provide for the extension of the tax at a 80026
rate not to exceed the rate specified in division (D) of this 80027
section for a period of time determined by the legislative 80028
authority of the county, but not to exceed an additional forty 80029
years.80030

       (3) The legislative authority of a county with a population 80031
of one million two hundred thousand or more that has levied a tax 80032
under division (A)(1) of this section may, by resolution adopted 80033
by a majority of the members of the legislative authority, 80034
increase the rate of the tax levied by such county under division 80035
(A)(1) of this section to a rate not to exceed five per cent on 80036
transactions by which lodging by a hotel is or is to be furnished 80037
to transient guests. Notwithstanding any contrary provision of 80038
division (A)(1) of this section, the resolution shall provide that 80039
all collections resulting from the rate levied in excess of three 80040
per cent, after deducting the real and actual costs of 80041
administering the tax, shall be used for paying the direct and 80042
indirect costs of constructing, improving, expanding, equipping, 80043
financing, or operating a convention center.80044

       (4) The legislative authority of a county with a population 80045
of one million two hundred thousand or more that has levied a tax 80046
under division (A)(1) of this section may, by resolution adopted 80047
on or before July 1, 2008, by a majority of the members of the 80048
legislative authority, provide that all or a portion of the 80049
proceeds of the tax levied under division (A)(1) of this section, 80050
after deducting the real and actual costs of administering the tax 80051
and the amounts required to be returned to townships and municipal 80052
corporations with respect to the first three per cent levied under 80053
division (A)(1) of this section, shall be used to satisfy any 80054
pledges made in connection with an agreement entered into under 80055
section 307.695 of the Revised Code or shall otherwise be used for 80056
paying the direct and indirect costs of constructing, improving, 80057
expanding, equipping, financing, or operating a convention center.80058

       (5) Any amount collected from a tax levied or extended under 80059
division (I) of this section may be contributed to a convention 80060
facilities authority created before July 1, 2005, but no amount 80061
collected from a tax levied or extended under division (I) of this 80062
section may be contributed to a convention facilities authority, 80063
corporation, or other entity created after July 1, 2005, unless 80064
the mayor of the municipal corporation in which the convention 80065
center is to be operated by that convention facilities authority, 80066
corporation. Or other entity has consented to the creation of that 80067
convention facilities authority, corporation, or entity.80068

       Sec. 5739.10.  (A) In addition to the tax levied by section 80069
5739.02 of the Revised Code and any tax levied pursuant to section 80070
5739.021, 5739.023, or 5739.026 of the Revised Code, and to secure 80071
the same objectives specified in those sections, there is hereby 80072
levied upon the privilege of engaging in the business of making 80073
retail sales, an excise tax of six per cent on and after July 1, 80074
2003, and on and before June 30, 2005, and an excise tax of five 80075
per cent on and after July 1, 2005equal to the tax levied by 80076
section 5739.02 of the Revised Code, or, in the case of retail 80077
sales subject to a tax levied pursuant to section 5739.021, 80078
5739.023, or 5739.026 of the Revised Code, a percentage equal to 80079
the aggregate rate of such taxes and the tax levied by section 80080
5739.02 of the Revised Code of the receipts derived from all 80081
retail sales, except those to which the excise tax imposed by 80082
section 5739.02 of the Revised Code is made inapplicable by 80083
division (B) of that section.80084

       (B) For the purpose of this section, no vendor shall be80085
required to maintain records of sales of food for human 80086
consumption off the premises where sold, and no assessment shall 80087
be made against any vendor for sales of food for human consumption 80088
off the premises where sold, solely because the vendor has no 80089
records of, or has inadequate records of, such sales; provided 80090
that where a vendor does not have adequate records of receipts 80091
from the vendor's sales of food for human consumption on the 80092
premises where sold, the tax commissioner may refuse to accept the 80093
vendor's return and, upon the basis of test checks of the vendor's 80094
business for a representative period, and other information 80095
relating to the sales made by such vendor, determine the 80096
proportion that taxable retail sales bear to all of the vendor's 80097
retail sales. The tax imposed by this section shall be determined 80098
by deducting from the sum representing five and one-half or six 80099
per cent, as applicable under division (A) of this section, or, in 80100
the case of retail sales subject to a tax levied pursuant to 80101
section 5739.021, 5739.023, or 5739.026 of the Revised Code, a80102
percentage equal to the aggregate rate of such taxes and the tax80103
levied by section 5739.02 of the Revised Code of the receipts from 80104
such retail sales, the amount of tax paid to the state or to a 80105
clerk of a court of common pleas. The section does not affect any 80106
duty of the vendor under sections 5739.01 to 5739.19 and 5739.26 80107
to 5739.31 of the Revised Code, nor the liability of any consumer 80108
to pay any tax imposed by or pursuant to section 5739.02, 80109
5739.021, 5739.023, or 5739.026 of the Revised Code.80110

       Sec. 5739.12. (A) Each person who has or is required to have 80111
a vendor's license, on or before the twenty-third day of each80112
month, shall make and file a return for the preceding month, on80113
forms prescribed by the tax commissioner, and shall pay the tax80114
shown on the return to be due. The commissioner may require a 80115
vendor that operates from multiple locations or has multiple 80116
vendor's licenses to report all tax liabilities on one 80117
consolidated return. The return shall show the amount of tax due80118
from the vendor to the state for the period covered by the return80119
and such other information as the commissioner deems necessary for80120
the proper administration of this chapter. The commissioner may80121
extend the time for making and filing returns and paying the tax,80122
and may require that the return for the last month of any annual80123
or semiannual period, as determined by the commissioner, be a80124
reconciliation return detailing the vendor's sales activity for80125
the preceding annual or semiannual period. The reconciliation80126
return shall be filed by the last day of the month following the80127
last month of the annual or semiannual period. The commissioner80128
may remit all or any part of amounts or penalties that may become80129
due under this chapter and may adopt rules relating thereto. Such80130
return shall be filed by mailing it to the tax commissioner,80131
together with payment of the amount of tax shown to be due thereon80132
after deduction of any discount provided for under this section.80133
Remittance shall be made payable to the treasurer of state. The80134
return shall be considered filed when received by the tax80135
commissioner, and the payment shall be considered made when80136
received by the tax commissioner or when credited to an account80137
designated by the treasurer of state or the tax commissioner.80138

       (B) If the return is filed and the amount of tax shown 80139
thereon to be due is paid on or before the date such return is 80140
required to be filed, the vendor shall be entitled to the 80141
following discount:80142

       (1) On and after July 1, 20032005, and on and before June 80143
30, 20052007, nine-tenths of one per cent of the amount shown to 80144
be due on the return;80145

       (2) On and after July 1, 20052007, three-fourths of one per 80146
cent of the amount shown to be due on the return.80147

       A vendor that has selected a certified service provider as 80148
its agent shall not be entitled to the discount. Amounts paid to 80149
the clerk of courts pursuant to section 4505.06 of the Revised 80150
Code shall be subject to the applicable discount. The discount 80151
shall be in consideration for prompt payment to the clerk of 80152
courts and for other services performed by the vendor in the80153
collection of the tax.80154

       (C)(1) Upon application to the commissioner, a vendor who is80155
required to file monthly returns may be relieved of the80156
requirement to report and pay the actual tax due, provided that80157
the vendor agrees to remit to the tax commissioner payment of not80158
less than an amount determined by the commissioner to be the80159
average monthly tax liability of the vendor, based upon a review80160
of the returns or other information pertaining to such vendor for80161
a period of not less than six months nor more than two years80162
immediately preceding the filing of the application. Vendors who80163
agree to the above conditions shall make and file an annual or80164
semiannual reconciliation return, as prescribed by the80165
commissioner. The reconciliation return shall be filed by mailing80166
or delivering it to the tax commissioner, together with payment of 80167
the amount of tax shown to be due thereon after deduction of any 80168
discount provided in this section. Remittance shall be made80169
payable to the treasurer of state. Failure of a vendor to comply80170
with any of the above conditions may result in immediate80171
reinstatement of the requirement of reporting and paying the80172
actual tax liability on each monthly return, and the commissioner80173
may at the commissioner's discretion deny the vendor the right to80174
report and pay based upon the average monthly liability for a80175
period not to exceed two years. The amount ascertained by the80176
commissioner to be the average monthly tax liability of a vendor80177
may be adjusted, based upon a review of the returns or other80178
information pertaining to the vendor for a period of not less than80179
six months nor more than two years preceding such adjustment.80180

       (2) The commissioner may authorize vendors whose tax 80181
liability is not such as to merit monthly returns, as ascertained 80182
by the commissioner upon the basis of administrative costs to the80183
state, to make and file returns at less frequent intervals. When80184
returns are filed at less frequent intervals in accordance with80185
such authorization, the vendor shall be allowed the discount 80186
provided in this section in consideration for prompt payment with 80187
the return, provided the return is filed together with payment of 80188
the amount of tax shown to be due thereon, at the time specified 80189
by the commissioner, but a vendor that has selected a certified 80190
service provider as its agent shall not be entitled to the 80191
discount.80192

       (D) Any vendor who fails to file a return or pay the full 80193
amount of the tax shown on the return to be due under this section 80194
and the rules of the commissioner may, for each such return the 80195
vendor fails to file or each such tax the vendor fails to pay in 80196
full as shown on the return within the period prescribed by this 80197
section and the rules of the commissioner, be required to forfeit 80198
and pay into the state treasury an additional charge not exceeding80199
fifty dollars or ten per cent of the tax required to be paid for80200
the reporting period, whichever is greater, as revenue arising80201
from the tax imposed by this chapter, and such sum may be80202
collected by assessment in the manner provided in section 5739.1380203
of the Revised Code. The commissioner may remit all or a portion80204
of the additional charge and may adopt rules relating to the 80205
imposition and remission of the additional charge.80206

       (E) If the amount required to be collected by a vendor from80207
consumers is in excess of the applicable percentage of the 80208
vendor's receipts from sales that are taxable under section 80209
5739.02 of the Revised Code, or in the case of sales subject to a 80210
tax levied pursuant to section 5739.021, 5739.023, or 5739.026 of 80211
the Revised Code, in excess of the percentage equal to the 80212
aggregate rate of such taxes and the tax levied by section 5739.02 80213
of the Revised Code, such excess shall be remitted along with the 80214
remittance of the amount of tax due under section 5739.10 of the 80215
Revised Code.80216

       (F) The commissioner, if the commissioner deems it necessary 80217
in order to insure the payment of the tax imposed by this chapter,80218
may require returns and payments to be made for other than monthly80219
periods. The returns shall be signed by the vendor or the vendor's 80220
authorized agent.80221

       (G) Any vendor required to file a return and pay the tax 80222
under this section, whose total payment equals or exceeds the80223
amount shown in division (A) of section 5739.122 of the Revised 80224
Code, shall make each payment required by this section in the 80225
second ensuing and each succeeding year by electronic funds 80226
transfer as prescribed by, and on or before the dates specified 80227
in, section 5739.122 of the Revised Code, except as otherwise80228
prescribed by that section. For a vendor that operates from 80229
multiple locations or has multiple vendor's licenses, in 80230
determining whether the vendor's total payment equals or exceeds 80231
the amount shown in division (A) of that section, the vendor's 80232
total payment amount shall be the amount of the vendor's total tax 80233
liability for the previous calendar year for all of the vendor's 80234
locations or licenses.80235

       Sec. 5739.16.  (A) NoExcept as otherwise provided in this 80236
section, no assessment shall be made or issued against a vendor or 80237
consumer for any tax imposed by or pursuant to section 5739.02, 80238
5739.021, 5739.023, 5739.026, or 5739.10 of the Revised Code more 80239
than four years after the return date for the period in which the 80240
sale or purchase was made, or more than four years after the 80241
return for such period is filed, whichever is later. A consumer 80242
who provides a fully completed exemption certificate pursuant to 80243
division (B) of section 5739.03 of the Revised Code may be 80244
assessed any tax imposed by or pursuant to section 5739.02, 80245
5739.021, 5739.023, or 5739.026 of the Revised Code that results 80246
from denial of the claimed exemption within the later of a period 80247
otherwise allowed by this section or one year after the date the 80248
certificate was provided. This division does not bar an 80249
assessment:80250

       (1) When the tax commissioner has substantial evidence of80251
amounts of taxes collected by a vendor from consumers on retail80252
sales, which were not returned to the state;80253

       (2) When the vendor assessed failed to file a return as80254
required by section 5739.12 of the Revised Code;80255

       (3) When the vendor or consumer and the commissioner waive in 80256
writing the time limitation.80257

       (B) No assessment shall be made or issued against a vendor or 80258
consumer for any tax imposed by or pursuant to section 5739.02, 80259
5739.021, 5739.023, 5739.026, or 5739.10 of the Revised Code for 80260
any period during which there was in full force and effect a rule 80261
of the tax commissioner under or by virtue of which the collection 80262
or payment of any such tax was not required. This division does 80263
not bar an assessment when the tax commissioner has substantial 80264
evidence of amounts of taxes collected by a vendor from consumers 80265
on retail sales which were not returned to the state.80266

       (C) No assessment shall be made or issued against a person80267
for any tax imposed pursuant to section 5739.101 of the Revised80268
Code more than four years after the return date for the period in80269
which the tax is imposed on the person's gross receipts, or more80270
than four years after the return for such period is filed,80271
whichever is later. This division does not bar an assessment when 80272
the person assessed failed to file a return as required under 80273
section 5739.102 of the Revised Code, or when the person and the 80274
commissioner waive in writing the time limitation.80275

       Sec. 5739.17.  (A) No person shall engage in making retail80276
sales subject to a tax imposed by or pursuant to section 5739.02,80277
5739.021, 5739.023, or 5739.026 of the Revised Code as a business80278
without having a license therefor, except as otherwise provided in80279
divisions (A)(1), (2), and (3) of this section.80280

       (1) In the dissolution of a partnership by death, the80281
surviving partner may operate under the license of the partnership80282
for a period of sixty days.80283

       (2) The heirs or legal representatives of deceased persons,80284
and receivers and trustees in bankruptcy, appointed by any80285
competent authority, may operate under the license of the person80286
so succeeded in possession.80287

       (3) Two or more persons who are not partners may operate a80288
single place of business under one license. In such case neither80289
the retirement of any such person from business at that place of80290
business, nor the entrance of any person, under an existing80291
arrangement, shall affect the license or require the issuance of a80292
new license, unless the person retiring from the business is the80293
individual named on the vendor's license.80294

       Except as otherwise provided in this section, each applicant80295
for a license shall make out and deliver to the county auditor of80296
each county in which the applicant desires to engage in business,80297
upon a blank to be furnished by such auditor for that purpose, a80298
statement showing the name of the applicant, each place of80299
business in the county where the applicant will make retail sales,80300
the nature of the business, and any other information the tax80301
commissioner reasonably prescribes in the form of a statement80302
prescribed by the commissioner.80303

       At the time of making the application, the applicant shall80304
pay into the county treasury a license fee in the sum of80305
twenty-five dollars for each fixed place of business in the county 80306
that will be the situs of retail sales. Upon receipt of the80307
application and exhibition of the county treasurer's receipt,80308
showing the payment of the license fee, the county auditor shall80309
issue to the applicant a license for each fixed place of business80310
designated in the application, authorizing the applicant to engage80311
in business at that location. If a vendor's identity changes, the80312
vendor shall apply for a new license. If a vendor wishes to move80313
an existing fixed place of business to a new location within the80314
same county, the vendor shall obtain a new vendor's license or80315
submit a request to the tax commissioner to transfer the existing80316
vendor's license to the new location. When the new location has80317
been verified as being within the same county, the commissioner80318
shall authorize the transfer and notify the county auditor of the80319
change of location. If a vendor wishes to move an existing fixed80320
place of business to another county, the vendor's license shall80321
not transfer and the vendor shall obtain a new vendor's license80322
from the county in which the business is to be located. The form80323
of the license shall be prescribed by the commissioner. The fees80324
collected shall be credited to the general fund of the county.80325

       The tax commissioner may establish or participate in a 80326
registration system whereby any vendor may obtain a vendor's 80327
license by submitting to the commissioner a vendor's license 80328
application and a license fee of twenty-five dollars for each 80329
fixed place of business at which the vendor intends to make retail 80330
sales. Under this registration system, the commissioner shall 80331
issue a vendor's license to the applicant on behalf of the county 80332
auditor of the county in which the applicant desires to engage in 80333
business, and shall forward a copy of the application and license 80334
fee to that county. All such license fees received by the 80335
commissioner for the issuance of vendor's licenses shall be 80336
deposited into the vendor's license application fund, which is 80337
hereby created in the state treasury. The commissioner shall 80338
certify to the director of budget and management within ten 80339
business days after the close of a month the license fees to be 80340
transmitted to each county from the vendor's license application 80341
fund for vendor's license applications received by the 80342
commissioner during that month. License fees transmitted to a 80343
county for which payment was not received by the commissioner may 80344
be netted against a future distribution to that county, including 80345
distributions made pursuant to section 5739.21 of the Revised 80346
Code.80347

       A vendor that makes retail sales subject to tax under Chapter80348
5739. of the Revised Code pursuant to a permit issued by the80349
division of liquor control shall obtain a vendor's license in the80350
identical name and for the identical address as shown on the80351
permit.80352

       Except as otherwise provided in this section, if a vendor has80353
no fixed place of business and sells from a vehicle, each vehicle80354
intended to be used within a county constitutes a place of80355
business for the purpose of this section.80356

       (B) As used in this division, "transient vendor" means any80357
person who makes sales of tangible personal property from vending80358
machines located on land owned by others, who leases titled motor80359
vehicles, titled watercraft, or titled outboard motors, who80360
effectuates leases that are taxed according to division (A)(2) of80361
section 5739.02 of the Revised Code, or who, in the usual course80362
of the person's business, transports inventory, stock of goods, or80363
similar tangible personal property to a temporary place of80364
business or temporary exhibition, show, fair, flea market, or80365
similar event in a county in which the person has no fixed place80366
of business, for the purpose of making retail sales of such80367
property. A "temporary place of business" means any public or80368
quasi-public place including, but not limited to, a hotel, rooming80369
house, storeroom, building, part of a building, tent, vacant lot,80370
railroad car, or motor vehicle that is temporarily occupied for80371
the purpose of making retail sales of goods to the public. A place 80372
of business is not temporary if the same person conducted business 80373
at the place continuously for more than six months or occupied the80374
premises as the person's permanent residence for more than six80375
months, or if the person intends it to be a fixed place of80376
business.80377

       Any transient vendor, in lieu of obtaining a vendor's license80378
under division (A) of this section for counties in which the80379
transient vendor has no fixed place of business, may apply to the80380
tax commissioner, on a form prescribed by the commissioner, for a80381
transient vendor's license. The transient vendor's license80382
authorizes the transient vendor to make retail sales in any county80383
in which the transient vendor does not maintain a fixed place of80384
business. Any holder of a transient vendor's license shall not be80385
required to obtain a separate vendor's license from the county80386
auditor in that county. Upon the commissioner's determination that 80387
an applicant is a transient vendor, the applicant shall pay a80388
license fee in the amount of twenty-five dollars, at which time80389
the tax commissioner shall issue the license. The tax commissioner 80390
may require a vendor to be licensed as a transient vendor if, in 80391
the opinion of the commissioner, such licensing is necessary for 80392
the efficient administration of the tax.80393

       Any holder of a valid transient vendor's license may make80394
retail sales at a temporary place of business or temporary80395
exhibition, show, fair, flea market, or similar event, held80396
anywhere in the state without complying with any provision of80397
section 311.37 of the Revised Code. Any holder of a valid vendor's 80398
license may make retail sales as a transient vendor at a temporary80399
place of business or temporary exhibition, show, fair, flea80400
market, or similar event held in any county in which the vendor80401
maintains a fixed place of business for which the vendor holds a80402
vendor's license without obtaining a transient vendor's license.80403

       (C) As used in this division, "service vendor" means any80404
person who, in the usual course of the person's business, sells80405
services described in division (B)(3)(e), (f), (g), (h), (i), (j),80406
(k), (l), (m), (q)(p), or (u)(t) of section 5739.01 of the Revised 80407
Code.80408

       Every service vendor shall make application to the tax80409
commissioner for a service vendor's license. Each applicant shall80410
pay a license fee in the amount of twenty-five dollars. Upon the80411
commissioner's determination that an applicant is a service vendor80412
and payment of the fee, the commissioner shall issue the applicant80413
a service vendor's license.80414

       Only sales described in division (B)(3)(e), (f), (g), (h),80415
(i), (j), (k), (l), (m), (q)(p), or (u)(t) of section 5739.01 of 80416
the Revised Code may be made under authority of a service vendor's 80417
license, and that license authorizes sales to be made at any place 80418
in this state. Any service vendor who makes sales of other 80419
services or tangible personal property subject to the sales tax 80420
also shall be licensed under division (A), (B), or (D) of this 80421
section.80422

       (D) As used in this division, "delivery vendor" means any80423
vendor who engages in one or more of the activities described in80424
divisions (D)(1) to (4) of this section, and who maintains no80425
store, showroom, or similar fixed place of business or other80426
location where merchandise regularly is offered for sale or80427
displayed or shown in catalogs for selection or pick-up by80428
consumers, or where consumers bring goods for repair or other80429
service.80430

       (1) The vendor makes retail sales of tangible personal80431
property;80432

       (2) The vendor rents or leases, at retail, tangible personal80433
property, except titled motor vehicles, titled watercraft, or80434
titled outboard motors;80435

       (3) The vendor provides a service, at retail, described in80436
division (B)(3)(a), (b), (c), or (d) of section 5739.01 of the80437
Revised Code; or80438

       (4) The vendor makes retail sales of warranty, maintenance or 80439
service contracts, or similar agreements as described in division 80440
(B)(7) of section 5739.01 of the Revised Code.80441

       A transient vendor or a seller registered pursuant to section80442
5741.17 of the Revised Code is not a delivery vendor.80443

       Delivery vendors shall apply to the tax commissioner, on a80444
form prescribed by the commissioner, for a delivery vendor's80445
license. Each applicant shall pay a license fee of twenty-five80446
dollars for each delivery vendor's license, to be credited to the80447
general revenue fund. Upon the commissioner's determination that80448
the applicant is a delivery vendor, the commissioner shall issue80449
the license. A delivery vendor's license authorizes retail sales80450
to be made throughout the state. All sales of the vendor must be80451
reported under the delivery license. The commissioner may require80452
a vendor to be licensed as a delivery vendor if, in the opinion of80453
the commissioner, such licensing is necessary for the efficient80454
administration of the tax. The commissioner shall not issue a80455
delivery vendor license to a vendor who holds a license issued80456
under division (A) of this section.80457

       (E) Any transient vendor who is issued a license pursuant to80458
this section shall display the license or a copy of it80459
prominently, in plain view, at every place of business of the80460
transient vendor. Every owner, organizer, or promoter who operates 80461
a fair, flea market, show, exhibition, convention, or similar 80462
event at which transient vendors are present shall keep a80463
comprehensive record of all such vendors, listing the vendor's80464
name, permanent address, vendor's license number, and the type of80465
goods sold. Such records shall be kept for four years and shall be 80466
open to inspection by the tax commissioner.80467

       Sec. 5739.36. (A) For the purpose of tracking the growth and 80468
overall economic impact of the travel and tourism industry in this 80469
state, the tax commissioner shall prepare a report summarizing the 80470
amount of tax revenue collected during each semiannual period 80471
ending on the last day of June or December, annually. The 80472
commissioner shall prepare the report by industry classification 80473
using business activity codes. The report shall include the 80474
combined total statewide collections from the taxes levied under 80475
sections 5739.02, 5739.021, 5739.023, 5739.026, 5741.02, 5741.021, 80476
5741.022, and 5741.023 of the Revised Code as reported by 80477
taxpayers with respect to collections during the semiannual 80478
period. The report shall reflect all industries included in the 80479
industrial classification system used by the commissioner the 80480
activities of which relate in any way to travel and tourism, 80481
including, but not limited to, industries such as bars and 80482
restaurants; hotels, motels, and other lodging establishments; and 80483
other industries related to travel and tourism. The first report 80484
shall be for the semiannual period ending December 31, 2005.80485

       (B) The tax commissioner shall file a copy of the report 80486
required under this section with the governor, the president of 80487
the senate, the speaker of the house of representatives, and the 80488
legislative service commission. The reports shall be filed on or 80489
before the first day of May or November, annually, that 80490
immediately follows the semiannual period to which the report 80491
relates. A copy of the commissioner's most recent report shall be 80492
made available to the public through the department of taxation's 80493
official internet web site.80494

       (C) The commissioner shall adopt rules that are necessary to 80495
administer this section.80496

       Sec. 5741.02.  (A)(1) For the use of the general revenue fund80497
of the state, an excise tax is hereby levied on the storage, use,80498
or other consumption in this state of tangible personal property80499
or the benefit realized in this state of any service provided. The80500
tax shall be collected as provided in section 5739.025 of the 80501
Revised Code, provided that on and after July 1, 2003, and on or 80502
before June 30, 2005, the rate of the tax shall be six per cent. 80503
On and after July 1, 2005, the rate of the tax shall be five and 80504
one-half per cent.80505

       (2) In the case of the lease or rental, with a fixed term of 80506
more than thirty days or an indefinite term with a minimum period 80507
of more than thirty days, of any motor vehicles designed by the 80508
manufacturer to carry a load of not more than one ton, watercraft, 80509
outboard motor, or aircraft, or of any tangible personal property, 80510
other than motor vehicles designed by the manufacturer to carry a 80511
load of more than one ton, to be used by the lessee or renter 80512
primarily for business purposes, the tax shall be collected by the 80513
seller at the time the lease or rental is consummated and shall be 80514
calculated by the seller on the basis of the total amount to be 80515
paid by the lessee or renter under the lease or rental agreement. 80516
If the total amount of the consideration for the lease or rental 80517
includes amounts that are not calculated at the time the lease or 80518
rental is executed, the tax shall be calculated and collected by 80519
the seller at the time such amounts are billed to the lessee or 80520
renter. In the case of an open-end lease or rental, the tax shall 80521
be calculated by the seller on the basis of the total amount to be 80522
paid during the initial fixed term of the lease or rental, and for 80523
each subsequent renewal period as it comes due. As used in this 80524
division, "motor vehicle" has the same meaning as in section 80525
4501.01 of the Revised Code, and "watercraft" includes an outdrive 80526
unit attached to the watercraft.80527

       (3) Except as provided in division (A)(2) of this section, in 80528
the case of a transaction, the price of which consists in whole or 80529
part of the lease or rental of tangible personal property, the tax 80530
shall be measured by the installments of those leases or rentals.80531

       (B) Each consumer, storing, using, or otherwise consuming in80532
this state tangible personal property or realizing in this state80533
the benefit of any service provided, shall be liable for the tax,80534
and such liability shall not be extinguished until the tax has80535
been paid to this state; provided, that the consumer shall be80536
relieved from further liability for the tax if the tax has been80537
paid to a seller in accordance with section 5741.04 of the Revised80538
Code or prepaid by the seller in accordance with section 5741.0680539
of the Revised Code.80540

       (C) The tax does not apply to the storage, use, or80541
consumption in this state of the following described tangible80542
personal property or services, nor to the storage, use, or80543
consumption or benefit in this state of tangible personal property80544
or services purchased under the following described circumstances:80545

       (1) When the sale of property or service in this state is80546
subject to the excise tax imposed by sections 5739.01 to 5739.3180547
of the Revised Code, provided said tax has been paid;80548

       (2) Except as provided in division (D) of this section,80549
tangible personal property or services, the acquisition of which,80550
if made in Ohio, would be a sale not subject to the tax imposed by80551
sections 5739.01 to 5739.31 of the Revised Code;80552

       (3) Property or services, the storage, use, or other80553
consumption of or benefit from which this state is prohibited from80554
taxing by the Constitution of the United States, laws of the80555
United States, or the Constitution of this state. This exemption80556
shall not exempt from the application of the tax imposed by this80557
section the storage, use, or consumption of tangible personal80558
property that was purchased in interstate commerce, but that has80559
come to rest in this state, provided that fuel to be used or80560
transported in carrying on interstate commerce that is stopped80561
within this state pending transfer from one conveyance to another80562
is exempt from the excise tax imposed by this section and section80563
5739.02 of the Revised Code;80564

       (4) Transient use of tangible personal property in this state 80565
by a nonresident tourist or vacationer, or a non-business use 80566
within this state by a nonresident of this state, if the property 80567
so used was purchased outside this state for use outside this 80568
state and is not required to be registered or licensed under the 80569
laws of this state;80570

       (5) Tangible personal property or services rendered, upon80571
which taxes have been paid to another jurisdiction to the extent80572
of the amount of the tax paid to such other jurisdiction. Where80573
the amount of the tax imposed by this section and imposed pursuant80574
to section 5741.021, 5741.022, or 5741.023 of the Revised Code80575
exceeds the amount paid to another jurisdiction, the difference80576
shall be allocated between the tax imposed by this section and any80577
tax imposed by a county or a transit authority pursuant to section80578
5741.021, 5741.022, or 5741.023 of the Revised Code, in proportion80579
to the respective rates of such taxes.80580

       As used in this subdivision, "taxes paid to another80581
jurisdiction" means the total amount of retail sales or use tax or80582
similar tax based upon the sale, purchase, or use of tangible80583
personal property or services rendered legally, levied by and paid80584
to another state or political subdivision thereof, or to the80585
District of Columbia, where the payment of such tax does not80586
entitle the taxpayer to any refund or credit for such payment.80587

       (6) The transfer of a used manufactured home or used mobile80588
home, as defined by section 5739.0210 of the Revised Code, made on80589
or after January 1, 2000;80590

       (7) Drugs that are or are intended to be distributed free of80591
charge to a practitioner licensed to prescribe, dispense, and80592
administer drugs to a human being in the course of a professional80593
practice and that by law may be dispensed only by or upon the80594
order of such a practitioner.80595

        (8) Computer equipment and related software leased from a 80596
lessor located outside this state and initially received in this 80597
state on behalf of the consumer by a third party that will retain 80598
possession of such property for not more than ninety days and that 80599
will, within that ninety-day period, deliver such property to the 80600
consumer at a location outside this state. Division (C)(8) of this 80601
section does not provide exemption from taxation for any otherwise 80602
taxable charges associated with such property while it is in this 80603
state or for any subsequent storage, use, or consumption of such 80604
property in this state by or on behalf of the consumer.80605

       (9) Cigarettes that have a wholesale value of three hundred 80606
dollars or less used, stored, or consumed, but not for resale, in 80607
any month.80608

       (D) The tax applies to the storage, use, or other consumption 80609
in this state of tangible personal property or services, the 80610
acquisition of which at the time of sale was excepted under 80611
division (E) of section 5739.01 of the Revised Code from the tax 80612
imposed by section 5739.02 of the Revised Code, but which has 80613
subsequently been temporarily or permanently stored, used, or 80614
otherwise consumed in a taxable manner.80615

       (E)(1)(a) If any transaction is claimed to be exempt under80616
division (E) of section 5739.01 of the Revised Code or under80617
section 5739.02 of the Revised Code, with the exception of80618
divisions (B)(1) to (11) or (28) of section 5739.02 of the Revised80619
Code, the consumer shall provide to the seller, and the seller80620
shall obtain from the consumer, a certificate specifying the80621
reason that the transaction is not subject to the tax. The80622
certificate shall be in such form, and shall be provided either in 80623
a hard copy form or electronic form, as prescribed by the tax 80624
commissioner prescribes. If the transaction is claimed to be 80625
exempt under division (B)(13) of section 5739.02 of the Revised 80626
Code, the exemption certificate shall be provided by both the 80627
contractor and contractee. Such contractee shall be deemed to be 80628
the consumer of all items purchased under the claim of exemption, 80629
if it is subsequently determined that the exemption is not 80630
properly claimed. The certificate shall be in such form as the tax 80631
commissioner by rule prescribes. The seller shall maintain 80632
records, including exemption certificates, of all sales on which a 80633
consumer has claimed an exemption, and provide them to the tax 80634
commissioner on request.80635

       (2)(b) A seller that obtains a fully completed exemption 80636
certificate from a consumer is relieved of liability for 80637
collecting and remitting tax on any sale covered by that 80638
certificate. If it is determined the exemption was improperly 80639
claimed, the consumer shall be liable for any tax due on that sale 80640
under this chapter. Relief under this division from liability does 80641
not apply to any of the following:80642

       (i) A seller that fraudulently fails to collect tax;80643

       (ii) A seller that solicits consumers to participate in the 80644
unlawful claim of an exemption; 80645

       (iii) A seller that accepts an exemption certificate from a 80646
consumer that claims an exemption based on who purchases or who 80647
sells property or a service, when the subject of the transaction 80648
sought to be covered by the exemption certificate is actually 80649
received by the consumer at a location operated by the seller in 80650
this state, and this state has posted to its web site an exemption 80651
certificate form that clearly and affirmatively indicates that the 80652
claimed exemption is not available in this state;80653

       (iv) A seller that accepts an exemption certificate from a 80654
consumer who claims a multiple points of use exemption under 80655
division (B) of section 5739.033 of the Revised Code, if the item 80656
purchased is tangible personal property, other than prewritten 80657
computer software.80658

       (2) The seller shall maintain records, including exemption 80659
certificates, of all sales on which a consumer has claimed an 80660
exemption, and provide them to the tax commissioner on request.80661

       (3) If no certificate is provided or obtained within the80662
period for filing the return for the period inninety days after 80663
the date on which the transaction is consummated, it shall be80664
presumed that the tax applies. The failureFailure to have so 80665
provided or obtained a certificate shall not preclude a seller or80666
consumer from establishing, within one hundred twenty days of the80667
giving ofafter the tax commissioner gives written notice by the 80668
commissioner of intentionintent to levy an assessment, thatfrom 80669
either establishing that the transaction is not subject to the 80670
tax, or obtaining, in good faith, a fully completed exemption 80671
certificate.80672

       (4) If a transaction is claimed to be exempt under division 80673
(B)(13) of section 5739.02 of the Revised Code, the contractor 80674
shall obtain certification of the claimed exemption from the 80675
contractee. This certification shall be in addition to an 80676
exemption certificate provided by the contractor to the seller. A 80677
contractee that provides a certification under this division shall 80678
be deemed to be the consumer of all items purchased by the 80679
contractor under the claim of exemption, if it is subsequently 80680
determined that the exemption is not properly claimed. The 80681
certification shall be in such form as the tax commissioner 80682
prescribes.80683

       (F) A seller who files a petition for reassessment contesting 80684
the assessment of tax on transactions for which the seller 80685
obtained no valid exemption certificates, and for which the seller 80686
failed to establish that the transactions were not subject to the 80687
tax during the one-hundred-twenty-day period allowed under80688
division (E) of this section, may present to the tax commissioner80689
additional evidence to prove that the transactions were exempt.80690
The seller shall file such evidence within ninety days of the80691
receipt by the seller of the notice of assessment, except that,80692
upon application and for reasonable cause, the tax commissioner80693
may extend the period for submitting such evidence thirty days.80694

       (G) For the purpose of the proper administration of sections80695
5741.01 to 5741.22 of the Revised Code, and to prevent the evasion80696
of the tax hereby levied, it shall be presumed that any use,80697
storage, or other consumption of tangible personal property in80698
this state is subject to the tax until the contrary is80699
established.80700

       (H) The tax collected by the seller from the consumer under 80701
this chapter is not part of the price, but is a tax collection for 80702
the benefit of the state, and of counties levying an additional 80703
use tax pursuant to section 5741.021 or 5741.023 of the Revised 80704
Code and of transit authorities levying an additional use tax 80705
pursuant to section 5741.022 of the Revised Code. Except for the 80706
discount authorized under section 5741.12 of the Revised Code and 80707
the effects of any rounding pursuant to section 5703.055 of the 80708
Revised Code, no person other than the state or such a county or 80709
transit authority shall derive any benefit from the collection of 80710
such tax.80711

       Sec. 5741.16. No(A) Except as provided in division (B) or 80712
(C) of this section, no assessment shall be made or issued against 80713
a seller or consumer for any tax imposed by or pursuant to section 80714
5741.02, 5741.021, 5741.022, or 5741.023 of the Revised Code more 80715
than four years after the return date for the period in which the 80716
sale or purchase was made, or more than four years after the 80717
return for such period was filed, whichever date is later. This80718

       (B) A consumer who provides a fully completed exemption 80719
certificate pursuant to division (B) of section 5739.03 or 80720
division (E) of section 5741.02 of the Revised Code may be 80721
assessed any tax imposed by or pursuant to section 5741.02, 80722
5741.021, 5741.022, or 5741.023 of the Revised Code that results 80723
from denial of the claimed exemption within the later of a period 80724
allowed by division (A) of this section or one year after the date 80725
the certificate was provided.80726

       (C) This section does not bar an assessment:80727

       (A)(1) When the tax commissioner has substantial evidence of 80728
amounts of taxes collected by a seller from consumers on 80729
purchases, which were not returned to the state by direct 80730
remittance;80731

       (B)(2) When the person assessed failed to file a return as 80732
required by section 5741.12 of the Revised Code;80733

       (C)(3) When the seller or consumer and the commissioner 80734
waiveswaive in writing the time limitation.80735

       Sec. 5743.01.  As used in this chapter:80736

       (A) "Person" includes individuals, firms, partnerships,80737
associations, joint-stock companies, corporations, combinations of 80738
individuals of any form, and the state and any of its political 80739
subdivisions.80740

       (B) "Wholesale dealer" includes only those persons:80741

       (1) Who bring in or cause to be brought into this state80742
unstamped cigarettes purchased directly from the manufacturer,80743
producer, or importer of cigarettes for sale in this state but80744
does not include persons who bring in or cause to be brought into80745
this state cigarettes with respect to which no evidence of tax80746
payment is required thereon as provided in section 5743.04 of the80747
Revised Code; or80748

       (2) Who are engaged in the business of selling cigarettes or 80749
tobacco products to others for the purpose of resale.80750

       "Wholesale dealer" does not include any cigarette 80751
manufacturer, export warehouse proprietor, or importer with a 80752
valid permit under 26 U.S.C. 5713 if that person sells cigarettes 80753
in this state only to wholesale dealers holding valid and current 80754
licenses under section 5743.15 of the Revised Code or to an export 80755
warehouse proprietor or another manufacturer.80756

       (C) "Retail dealer" includes:80757

       (1) In reference to dealers in cigarettes, every person other 80758
than a wholesale dealer engaged in the business of selling80759
cigarettes in this state, irrespectiveregardless of whether the 80760
person is located in this state or elsewhere, and regardless of 80761
quantity, amount, or number of sales;80762

       (2) In reference to dealers in tobacco products, any person 80763
in this state engaged in the business of selling tobacco products 80764
to ultimate consumers in this state, regardless of quantity, 80765
amount, or number of sales.80766

       (D) "Sale" includes exchange, barter, gift, offer for sale, 80767
and distribution, and excludesincludes transactions in interstate80768
or foreign commerce.80769

       (E) "Cigarettes" includes any roll for smoking made wholly or 80770
in part of tobacco, irrespective of size or shape, and whether or 80771
not such tobacco is flavored, adulterated, or mixed with any other 80772
ingredient, the wrapper or cover of which is made of paper,80773
reconstituted cigarette tobacco, homogenized cigarette tobacco,80774
cigarette tobacco sheet, or any similar materials other than cigar 80775
tobacco.80776

       (F) "Package" means the individual package, box, or other80777
container in or from which retail sales of cigarettes are normally 80778
made or intended to be made.80779

       (G) "Stamp" includes an impression made by a metering device 80780
as provided for in section 5743.04 of the Revised Code.80781

       (H) "Storage" includes any keeping or retention of cigarettes 80782
or tobacco products for use or consumption in this state.80783

       (I) "Use" includes the exercise of any right or power80784
incidental to the ownership of cigarettes or tobacco products.80785

       (J) "Tobacco product" means any product made from tobacco,80786
other than cigarettes, that is made for smoking or chewing, or80787
both, and snuff.80788

       (K) "Wholesale price" means the invoice price, including all 80789
federal excise taxes, at which the manufacturer of the tobacco 80790
product sells the tobacco product to unaffiliated distributors, 80791
excluding any discounts based on the method of payment of the 80792
invoice or on time of payment of the invoice. If the taxpayer buys 80793
from other than a manufacturer, "wholesale price" means the 80794
invoice price, including all federal excise taxes and excluding 80795
any discounts based on the method of payment of the invoice or on 80796
time of payment of the invoice.80797

       (L) "Distributor" means:80798

       (1) Any manufacturer who sells, barters, exchanges, or80799
distributes tobacco products to a retail dealer in the state, 80800
except when selling to a retail dealer that has filed with the 80801
manufacturer a signed statement agreeing to pay and be liable for 80802
the tax imposed by section 5743.51 of the Revised Code;80803

       (2) Any wholesale dealer located in the state who receives80804
tobacco products from a manufacturer, or who receives tobacco80805
products on which the tax imposed by this chapter has not been80806
paid;80807

       (3) Any wholesale dealer located outside the state who sells, 80808
barters, exchanges, or distributes tobacco products to a wholesale 80809
or retail dealer in the state; or80810

       (4) Any retail dealer who receives tobacco products on which 80811
the tax has not or will not be paid by another distributor, 80812
including a retail dealer that has filed a signed statement with a 80813
manufacturer in which the retail dealer agrees to pay and be 80814
liable for the tax that would otherwise be imposed on the80815
manufacturer by section 5743.51 of the Revised Code.80816

       (M) "Taxpayer" means any person liable for the tax imposed by 80817
section 5743.51, 5743.62, or 5743.63 of the Revised Code.80818

       (N) "Seller" means any person located outside this state80819
engaged in the business of selling tobacco products to consumers80820
for storage, use, or other consumption in this state.80821

       (O) "Manufacturer" means any person who manufactures and80822
sells cigarettes or tobacco products.80823

       (P) "Importer" means any person that imports is authorized, 80824
under a valid permit issued under Section 5713 of the Internal 80825
Revenue Code, to import finished cigarettes into the United 80826
States, either directly or indirectly.80827

       Sec. 5743.02.  To provide revenues for the general revenue80828
fund, an excise tax on sales of cigarettes is hereby levied at the80829
rate of twenty-seven and one-halfsixty-two and one-half mills on 80830
each cigarette.80831

       Only one sale of the same article shall be used in computing80832
the amount of tax due.80833

       The treasurer of state shall place to the credit of the tax80834
refund fund created by section 5703.052 of the Revised Code, out80835
of receipts from the tax levied by this section, amounts equal to80836
the refunds certified by the tax commissioner pursuant to section80837
5743.05 of the Revised Code. The balance of taxes collected under80838
such section, after the credits to the tax refund fund, shall be80839
paid into the general revenue fund.80840

       Sec. 5743.03. (A) Except as provided in section 5743.04 of80841
the Revised Code, the taxes imposed under sections 5743.02, 80842
5743.024, and 5743.026 of the Revised Code shall be paid by the80843
purchase of stamps. A stamp shall be affixed to each package of an 80844
aggregate denomination not less than the amount of the tax upon80845
the contents thereof. The stamp, so affixed, shall be prima-facie80846
evidence of payment of the tax. Except80847

       Except as is provided in the rules prescribed by the tax 80848
commissioner under authority of sections 5743.01 to 5743.20 of the 80849
Revised Code, and unless suchtax stamps have been previously 80850
affixed, they shall be so affixed by each wholesale dealer, and 80851
canceled by writing or stamping across the face thereof the number 80852
assigned to such wholesale dealer by the tax commissioner for that 80853
purpose, prior to the delivery of any cigarettes to any person in 80854
this state, or in the case of a tax levied pursuant to section 80855
5743.024 or 5743.026 of the Revised Code, prior to the delivery of 80856
cigarettes to any person in the county in which the tax is levied.80857

       (B) Except as provided in the rules prescribed by the80858
commissioner under authority of sections 5743.01 to 5743.20 of the80859
Revised Code, and unless such stamps have been previously affixed,80860
each retail dealer shall, within twenty-four hours after the80861
receipt of any cigarettes at the retail dealer's place of business80862
and prior to the delivery thereof, shall inspect the cigarettes to 80863
ensure that tax stamps are affixed. The inspection shall be 80864
completed before the cigarettes are delivered to any person in 80865
this state, or, in the case of a tax levied pursuant to section 80866
5743.024 or 5743.026 of the Revised Code prior to the delivery 80867
thereof, before the cigarettes are delivered to any person in the 80868
county in which the tax is levied, so affix such stamps and cancel 80869
same by writing or stamping across the face thereof the number 80870
assigned to such retail dealer by the commissioner for that 80871
purpose.80872

       (C) Whenever any cigarettes are found in the place of80873
business of any retail dealer without proper tax stamps affixed80874
thereto and canceled, it is presumed that such cigarettes are kept80875
therein in violation of sections 5743.01 to 5743.20 of the Revised80876
Code.80877

       (D) Each wholesale dealer and each retail dealer who80878
purchases cigarettes without proper tax stamps affixed thereto80879
shall, on or before the thirty-first day of the month following80880
the close of each semiannual period, which period shall end on the80881
thirtieth day of June and the thirty-first day of December of each80882
year, make and file a return of the preceding semiannual period,80883
on such form as is prescribed by the tax commissioner, showing the80884
dealer's entire purchases and sales of cigarettes and stamps or80885
impressions for such semiannual period and accurate inventories as80886
of the beginning and end of each semiannual period of cigarettes,80887
stamped or unstamped; cigarette tax stamps affixed or unaffixed80888
and unused meter impressions; and such other information as the80889
commissioner finds necessary to the proper administration of80890
sections 5743.01 to 5743.20 of the Revised Code. The commissioner80891
may extend the time for making and filing returns and may remit80892
all or any part of amounts of penalties that may become due under80893
sections 5743.01 to 5743.20 of the Revised Code. The wholesale or80894
retail dealer shall deliver the return together with a remittance80895
of the tax deficiency reported thereon to the treasurer of state.80896
The treasurer of state shall stamp or otherwise mark on the return80897
the date it was received and shall also show thereon by stamp or80898
otherwise a payment or nonpayment of the deficiency shown by the80899
return. Thereafter, the treasurer of state shall immediately80900
transmit all returns filed under this section to the commissioner.80901

       (E) Any wholesale or retail dealer who fails to file a return80902
under this section and the rules of the commissioner, other than a80903
report required pursuant to division (F) of this section, may be80904
required, for each day the dealer so fails, to forfeit and pay80905
into the state treasury the sum of one dollar as revenue arising80906
from the tax imposed by sections 5743.01 to 5743.20 of the Revised80907
Code and such sum may be collected by assessment in the manner80908
provided in section 5743.081 of the Revised Code. If the80909
commissioner finds it necessary in order to insure the payment of80910
the tax imposed by sections 5743.01 to 5743.20 of the Revised80911
Code, the commissioner may require returns and payments to be made80912
other than semiannually. The returns shall be signed by the80913
wholesale or retail dealer or an authorized agent thereof.80914

       (F) Each person required to file a tax return under section80915
5743.03, 5743.52, or 5743.62 of the Revised Code shall report to80916
the commissioner the quantity of all cigarettes and roll-your-own80917
cigarette tobacco sold in Ohio for each brand not covered by the80918
tobacco master settlement agreement for which the person is liable80919
for the taxes levied under section 5743.02, 5743.51, or 5743.62 of80920
the Revised Code.80921

       As used in this division, "tobacco master settlement80922
agreement" has the same meaning as in section 183.01 of the80923
Revised Code.80924

       (G) The report required by division (F) of this section shall 80925
be made on a form prescribed by the commissioner and shall be 80926
filed not later than the last day of each month for the previous 80927
month, except that if the commissioner determines that the 80928
quantity reported by a person does not warrant monthly reporting, 80929
the commissioner may authorize reporting at less frequent 80930
intervals. The commissioner may assess a penalty of not more than 80931
two hundred fifty dollars for each month or portion thereof that a 80932
person fails to timely file a required report, and such sum may be 80933
collected by assessment in the manner provided in section 5743.081 80934
of the Revised Code. All money collected under this division shall 80935
be considered as revenue arising from the taxes imposed by 80936
sections 5743.01 to 5743.20 of the Revised Code.80937

       Sec. 5743.031.  (A) A wholesale dealer may affix stamps only 80938
to packages of cigarettes that the dealer received directly from a 80939
manufacturer or importer of cigarettes that possesses a valid and 80940
current license under section 5743.15 of the Revised Code, or to 80941
packages of cigarettes that the dealer received from another 80942
wholesale dealer that possesses a valid and current license under 80943
section 5743.15 of the Revised Code, provided that the tax 80944
commissioner has authorized the sale of the cigarettes between 80945
those wholesale dealers and that the wholesale dealer that sells 80946
the cigarettes received them directly from a manufacturer or 80947
importer of cigarettes that possesses a valid and current license 80948
under section 5743.15 of the Revised Code.80949

       (B) Only a wholesale dealer that possesses a valid and 80950
current license under section 5743.15 of the Revised Code may 80951
purchase or obtain tax stamps. A wholesale dealer may not sell or 80952
provide such stamps to any other wholesale dealer or any other 80953
person.80954

       (C) Any person shipping unstamped packages of cigarettes into 80955
this state to a person other than a wholesale dealer licensed 80956
under section 5743.15 of the Revised Code shall, before such 80957
shipment, file notice of the shipment with the tax commissioner. 80958
Any person that transports unstamped packages of cigarettes into 80959
or within this state shall carry in the vehicle used to convey the 80960
shipment invoices or equivalent documentation of the shipment for 80961
all cigarettes in the shipment. The invoices or other 80962
documentation shall show the true name and address of the 80963
consignor or seller, the true name and address of the consignee or 80964
purchaser, and the quantity of the cigarettes being transported. 80965
This division does not apply to any common or contract carrier 80966
transporting cigarettes through this state to another location 80967
under a proper bill of lading or freight bill that states the 80968
quantity, source, and destination of the cigarettes.80969

       Sec. 5743.05.  All stamps provided for by section 5743.03 of80970
the Revised Code, when procured by the tax commissioner, shall be80971
immediately delivered to the treasurer of state, who shall execute80972
a receipt therefor showing the number and aggregate face value of80973
each denomination received by the treasurer of state and any other80974
information that the commissioner requires to enforce the80975
collection and distribution of all taxes imposed under section 80976
5743.024 or 5743.026 of the Revised Code, and deliver the receipt80977
to the commissioner. The treasurer of state shall sell the stamps80978
and, on the fifth day of each month, make a report showing all80979
sales made during the preceding month, with the names of80980
purchasers, the number of each denomination, the aggregate face80981
value purchased by each, and any other information as the80982
commissioner requires to enforce the collection and distribution80983
of all taxes imposed under section 5743.024 of the Revised Code,80984
and deliver it to the commissioner. The treasurer of state shall80985
be accountable for all stamps received and unsold. The stamps80986
shall be sold and accounted for at their face value, except the80987
commissioner shall, by rule certified to the treasurer of state,80988
authorize the sale of stamps and meter impressions to wholesale or80989
retail dealers in this state, or to wholesale dealers outside this80990
state, at a discount of not less than one and eight-tenths per80991
cent or more than ten per cent of their face value, as a80992
commission for affixing and canceling the stamps or meter80993
impressions.80994

       The commissioner, by rule certified to the treasurer of80995
state, shall authorize the delivery of stamps and meter80996
impressions to wholesale and retail dealers in this state and to80997
wholesale dealers outside this state on credit. If such a dealer 80998
has not been in good credit standing with this state for five 80999
consecutive years preceding the purchase, the tax commissioner 81000
shall require the dealer to file with the commissioner a bond to 81001
the state in the amount and in the form prescribed by the 81002
commissioner, with surety to the satisfaction of the commissioner, 81003
conditioned on payment to the treasurer of state within thirty 81004
days for stamps or meter impressions delivered within that time. 81005
If such a dealer has been in good credit standing with this state 81006
for five consecutive years preceding the purchase, the tax 81007
commissioner shall not require that the dealer file such a bond 81008
but shall require payment for the stamps and meter impressions 81009
within thirty days after purchase of the stamps and meter 81010
impressions. Stamps and meter impressions sold to a dealer not 81011
required to file a bond shall be sold at face value. The maximum 81012
amount that may be sold on credit to a dealer not required to file 81013
a bond shall equal one hundred ten per cent of the dealer's 81014
average monthly purchases over the preceding calendar year. The 81015
maximum amount shall be adjusted to reflect any changes in the tax 81016
rate and may be adjusted, upon application to the tax commissioner 81017
by the dealer, to reflect changes in the business operations of 81018
the dealer. The maximum amount shall be applicable to the period 81019
of July through April. Payment by a dealer not required to file a 81020
bond shall be remitted by electronic funds transfer as prescribed 81021
by section 5743.051 of the Revised Code. If a dealer not required 81022
to file a bond fails to make the payment in full within the 81023
thirty-day period, the treasurer of state shall not thereafter 81024
sell stamps or meter impressions to that dealer until the dealer 81025
pays the outstanding amount, including penalty and interest on 81026
that amount as prescribed in this chapter, and the commissioner 81027
thereafter may require the dealer to file a bond until the dealer 81028
is restored to good standing. The commissioner shall limit 81029
delivery of stamps and meter impressions on credit to the period 81030
running from the first day of July of the fiscal year until the 81031
first day of the following May. Any discount allowed as a81032
commission for affixing and canceling stamps or meter impressions81033
shall be allowed with respect to sales of stamps and meter81034
impressions on credit.81035

       The treasurer of state shall redeem and pay for any81036
destroyed, unused, or spoiled tax stamps and any unused meter81037
impressions at their net value, and shall refund to wholesale81038
dealers the net amount of state and county taxes paid erroneously81039
or paid on cigarettes that have been sold in interstate or foreign 81040
commerce or that have become unsalable, and the net amount of 81041
county taxes that were paid on cigarettes that have been sold at 81042
retail or for retail sale outside a taxing county.81043

       An application for a refund of tax shall be filed with the81044
tax commissioner, on the form prescribed by the commissioner for81045
that purpose, within three years from the date the tax stamps are81046
destroyed or spoiled, from the date of the erroneous payment, or81047
from the date that cigarettes on which taxes have been paid have81048
been sold in interstate or foreign commerce or have become81049
unsalable.81050

       On the filing of the application, the commissioner shall81051
determine the amount of refund to which the applicant is entitled, 81052
payable from receipts of the state tax, and, if applicable, 81053
payable from receipts of a county tax. If the amount is less than 81054
that claimed, the commissioner shall certify the amount to the 81055
director of budget and management and treasurer of state for 81056
payment from the tax refund fund created by section 5703.052 of 81057
the Revised Code. If the amount is less than that claimed, the 81058
commissioner shall proceed in accordance with section 5703.70 of 81059
the Revised Code.81060

       If a refund is granted for payment of an illegal or erroneous81061
assessment issued by the department, the refund shall include81062
interest on the amount of the refund from the date of the81063
overpayment. The interest shall be computed at the rate per annum81064
prescribed by section 5703.47 of the Revised Code.81065

       Sec. 5743.071. Each wholesale dealer and each retail dealer81066
Every person shall maintain complete and accurate records of all 81067
purchases and sales of cigarettes, and shall procure and retain 81068
all invoices, bills of lading, and other documents relating to the 81069
purchases and sales of cigarettes, except that no retail dealer81070
shall be required to issue or maintain invoices relating to his81071
the retail dealer's sales of cigarettes. The invoices or documents 81072
shall be maintained for each place of business and shall show the 81073
name and address of the other party to the purchase or sale and 81074
shall show the quantity of the cigarettes so sold or purchased.81075

       The records and documents shall be open during business hours 81076
to the inspection of the tax commissioner, and shall be preserved 81077
for a period of three years, unless the commissioner, in writing, 81078
consents to their destruction within that period, or by order 81079
requires that they be kept for a longer period. With the tax 81080
commissioner's consent, a person with multiple places of business 81081
may keep centralized records but shall transmit duplicates of the 81082
invoices or documents to each place of business within seventy-two 81083
hours after the tax commissioner or the tax commissioner's 81084
designee requests access to the records.81085

       Sec. 5743.072.  Each manufacturer and each importer shipping 81086
cigarettes into or within this state shall file a monthly report 81087
with the tax commissioner in accordance with rules adopted by the 81088
tax commissioner under Chapter 119. of the Revised Code. 81089

       Sec. 5743.08.  Whenever the tax commissioner discovers any81090
cigarettes which are being shipped, or which have been shipped, or 81091
transported in violation of section 2927.023 of the Revised Code, 81092
or discovers cigarettes, subject to the taxes levied under section 81093
5743.02, 5743.024, or 5743.026 of the Revised Code, and upon which 81094
the taxes have not been paid or that are held for sale or 81095
distribution in violation of any other provision of this chapter, 81096
the commissioner may seize and take possession of such cigarettes, 81097
which shall thereupon be forfeited to the state, and the 81098
commissioner may, within a reasonable time thereafter sell or 81099
destroy the forfeited cigarettes. From the proceeds of the sale, 81100
the tax commissioner shall pay the costs incurred in such 81101
proceedings, and any proceeds remaining after the costs are paid81102
shall be considered as revenue arising from the tax; provided that81103
the seizure and sale shall not be deemed toIf the commissioner 81104
sells cigarettes under this section, the commissioner shall use 81105
proceeds from the sale to pay the costs incurred in the 81106
proceedings. Any proceeds remaining after all costs have been paid 81107
shall be considered revenue arising from the taxes levied under 81108
this chapter. Seizure and sale shall not be deemed to relieve any81109
person from the fine or imprisonment provided for violation of81110
sections 5743.01 to 5743.20 of the Revised Code. TheA sale shall81111
be made where it is most convenient and economical. The tax81112
commissioner may order the destruction of the forfeited cigarettes81113
if the quantity or quality of the cigarettes is not sufficient to81114
warrant their sale.81115

       Sec. 5743.10.  No retail dealerperson shall have in histhe 81116
person's possession packagespacks of cigarettes not bearing the 81117
stamps required to be affixed thereto as required by Chapter 5743. 81118
of the Revised Code.81119

       Sec. 5743.111.  No person shall possess packagespacks of 81120
cigarettes not bearing the stamps required by Chapter 5743. of the 81121
Revised Code, or bearing stamps that have been affixed in 81122
violation of section 5743.21 of the Revised Code, when the81123
wholesale valuetotal number of the cigarettes exceeds sixty 81124
dollarsone thousand two hundred.81125

       Sec. 5743.112.  (A) No person shall prepare for shipment,81126
ship, transport, deliver, prepare for distribution, or distribute81127
cigarettes, or otherwise engage or participate in the wholesale or 81128
retail business of trafficking in cigarettes, with the intent to 81129
avoid payment of the tax imposed by this chapter, when the81130
wholesale valuetotal number of such cigarettes in the aggregate81131
exceeds sixty dollarsone thousand two hundred during any 81132
twelve-month period.81133

       (B) Any vending machine containing cigarettes which do not81134
have affixed the stamps or impressions provided for by sections81135
5743.03 and 5743.04 of the Revised Code shall be seized and81136
forfeited to the state in accordance with section 2933.43 of the81137
Revised Code. Forfeiture shall not affect the rights of a holder81138
of a valid lien.81139

       (C) A vehicle that is seized as contraband under section81140
2933.43 of the Revised Code because of its use in violation of81141
this chapter is subject to the procedures set forth in section81142
2933.43 of the Revised Code.81143

       Sec. 5743.14.  (A) The tax commissioner may inspect any place81144
where cigarettes subject to the tax levied under section 5743.02, 81145
5743.024, or 5743.026 of the Revised Code are sold or stored.81146

       (B)or an agent of the tax commissioner may enter and inspect 81147
the facilities and records of a person selling cigarettes or other 81148
tobacco products. Such entrance and inspection requires a properly 81149
issued search warrant if conducted outside the normal business 81150
hours of the person, but does not require a search warrant if 81151
conducted during the normal business hours of the person. No 81152
person shall prevent or hinder the tax commissioner or an agent of 81153
the tax commissioner from making a full inspection of any place 81154
where cigarettes subject to the tax levied under section 5743.02, 81155
5743.024, or 5743.026 of the Revised Code are sold or stored, or81156
prevent or hinder the full inspection of invoices, books, records,81157
or papers required to be kept by sections 5743.01 to 5743.20 of81158
the Revised Codecarrying out the authority granted under this 81159
division.81160

       (B) If a peace officer as defined in section 2935.01 of the 81161
Revised Code knows or has reasonable cause to believe that a motor 81162
vehicle is transporting cigarettes or other tobacco products in 81163
violation of this chapter or section 2927.023 of the Revised Code, 81164
the peace officer may stop the vehicle and inspect the vehicle to 81165
determine the presence of such cigarettes or other tobacco 81166
products.81167

       Sec. 5743.15.  (A) No person shall engage in this state in 81168
the wholesale or retail business of trafficking in cigarettes 81169
within this stateor in the business of a manufacturer or importer 81170
of cigarettes without having a license to do soconduct each such 81171
activity issued by a county auditor under division (B) of this 81172
section or the tax commissioner under division (E) of this 81173
section, except that on dissolution of a partnership by death, the 81174
surviving partner may operate under the license of the partnership 81175
until expiration of the license, and the heirs or legal 81176
representatives of deceased persons, and receivers and trustees in 81177
bankruptcy appointed by any competent authority, may operate under 81178
the license of the person succeeded in possession by such heir, 81179
representative, receiver, or trustee in bankruptcy.81180

       (B) Each applicant for a license to engage in the wholesale 81181
or retail business of trafficking in cigarettes under this 81182
section, annually, on or before the fourth Monday of May, shall 81183
make and deliver to the county auditor of the county in which he81184
the applicant desires to engage in the wholesale or retail 81185
business of trafficking in cigarettes, upon a blank furnished by 81186
such auditor for that purpose, a statement showing the name of the 81187
applicant, each place in the county where the applicant's business 81188
is conducted, the nature of the business, and any other 81189
information the tax commissioner requires in the form of statement 81190
prescribed by himthe commissioner. If the applicant is a firm, 81191
partnership, or association other than a corporation, the 81192
application shall state the name and address of each of its 81193
members. If the applicant is a corporation, the application shall 81194
state the name and address of each of its officers. At the time of 81195
making the application required by this section, every person81196
desiring to engage in the wholesale business of trafficking in81197
cigarettes shall pay into the county treasury a license tax in the 81198
sum of two hundred dollars, or if desiring to engage in the retail 81199
business of trafficking in cigarettes, a license tax in the sum of 81200
thirty dollars for each of the first five places where hethe 81201
person proposes to carry on such business and twenty-five dollars 81202
for each additional place. Each place of business shall be deemed81203
such space, under lease or license to, or under the control of, or 81204
under the supervision of the applicant, as is contained in one or 81205
more contiguous, adjacent, or adjoining buildings constituting an 81206
industrial plant or a place of business operated by, or under the 81207
control of, one person, or under one roof and connected by doors, 81208
halls, stairways, or elevators, which space may contain any number 81209
of points at which cigarettes are offered for sale, provided that 81210
each additional point at which cigarettes are offered for sale 81211
shall be listed in the application.81212

       Upon receipt of the application required by this section and 81213
exhibition of the county treasurer's receipt showing the payment 81214
of the tax, the county auditor shall issue to the applicant a 81215
license for each place of business designated in the application, 81216
authorizing the applicant to engage in such business at such place 81217
for one year commencing on the fourth Monday of May. Companies 81218
operating club or dining cars or other cars upon which cigarettes 81219
are sold shall obtain licenses at railroad terminals within the 81220
state, under such rules as are prescribed by the commissioner. The 81221
form of the license shall be prescribed by the commissioner. A 81222
duplicate license may be obtained from the county auditor upon 81223
payment of a fifty cent fee if the original license is lost, 81224
destroyed, or defaced. When an application is filed after the 81225
fourth Monday of May, the license tax required to be paid shall be 81226
proportioned in amount to the remainder of the license year, 81227
except that it shall not be less than one fifth of the whole 81228
amount in any one year.81229

       The holder of a wholesale or retail dealer's cigarette81230
license may transfer the license to a place of business within the 81231
same county other than that designated on the license or may81232
assign the license to another person for use in the same county on 81233
condition that the licensee or assignee, whichever is applicable, 81234
make application to the county auditor therefor, upon forms 81235
approved by the commissioner and the payment of a fee of one 81236
dollar into the county treasury.81237

       (B)(C)(1) The wholesale cigarette license tax revenue81238
collected under this section shall be distributed as follows:81239

       (a) Thirty-seven and one-half per cent shall be paid upon the 81240
warrant of the county auditor into the treasury of the municipal 81241
corporation or township in which the place of business for which 81242
the tax revenue was received is located;81243

       (b) Fifteen per cent shall be credited to the general fund of 81244
the county;81245

       (c) Forty-seven and one-half per cent shall be paid into the 81246
cigarette tax enforcement fund created by division (C) of this 81247
section.81248

       (2) The revenue collected from the thirty dollar tax imposed 81249
upon the first five places of business of a person engaged in the 81250
retail business of trafficking in cigarettes shall be distributed 81251
as follows:81252

       (a) Sixty-two and one-half per cent shall be paid upon the81253
warrant of the county auditor into the treasury of the municipal81254
corporation or township in which the places of business for which81255
the tax revenue was received are located;81256

       (b) Twenty-two and one-half per cent shall be credited to the 81257
general fund of the county;81258

       (c) Fifteen per cent shall be paid into the cigarette tax81259
enforcement fund created by division (C) of this section.81260

       (3) The remainder of the revenues and fines collected under 81261
this section and the penal laws relating to cigarettes shall be 81262
distributed as follows:81263

       (a) Three-fourths shall be paid upon the warrant of the81264
county auditor into the treasury of the municipal corporation or81265
township in which the place of business, on account of which the81266
revenues and fines were received, is located;81267

       (b) One-fourth shall be credited to the general fund of the 81268
county.81269

       (C)(D) There is hereby created within the state treasury the81270
cigarette tax enforcement fund for the purpose of providing funds81271
to assist in paying the costs of enforcing sections 1333.11 to81272
1333.21 and Chapter 5743. of the Revised Code.81273

       The portion of cigarette license tax revenues received by a81274
county auditor during the annual application period that ends81275
before the fourth Monday in May which is required to be deposited81276
in the cigarette tax enforcement fund shall be sent to the81277
treasurer of state by the thirtieth day of June each year. The81278
portion of license tax money received by each county auditor after 81279
the fourth Monday in May which is required to be deposited in the 81280
cigarette tax enforcement fund shall be sent to the treasurer of 81281
state by the thirty-first day of December.81282

       (E)(1) Every person who desires to engage in the business of 81283
a manufacturer or importer of cigarettes shall, annually, on or 81284
before the fourth Monday of May, make and deliver to the tax 81285
commissioner, upon a blank furnished by the commissioner for that 81286
purpose, a statement showing the name of the applicant, the nature 81287
of the applicant's business, and any other information required by 81288
the commissioner. If the applicant is a firm, partnership, or 81289
association other than a corporation, the applicant shall state 81290
the name and address of each of its members. If the applicant is a 81291
corporation, the applicant shall state the name and address of 81292
each of its officers.81293

       Upon receipt of the application, the commissioner shall issue 81294
to the applicant a license authorizing the applicant to engage in 81295
the business of manufacturer or importer, whichever the case may 81296
be, for one year commencing on the fourth Monday of May.81297

       (2) The issuing of a license under division (E) of this 81298
section to a manufacturer does not excuse a manufacturer from the 81299
certification process required under section 1346.05 of the 81300
Revised Code. A license issued under division (E) of this section 81301
to a manufacturer who is not listed on the directory required 81302
under section 1346.05 of the Revised Code shall cease to be valid 81303
and shall be revoked by the commissioner as provided in section 81304
5743.18 of the Revised Code.81305

       (3) The tax commissioner may adopt rules necessary to 81306
administer division (E) of this section.81307

       Sec. 5743.16.  On or before the first Monday of June, 81308
annually, each county auditor shall certify to the tax 81309
commissioner a list showing the names of all persons licensed in 81310
histhe auditor's county to engage in the business of trafficking 81311
in cigarettes, and such other information as to each, available 81312
from the records in the office of the auditor, as the commissioner 81313
prescribes. As such licenses are issued during the year, the 81314
auditor shall certify like lists and additions thereto to the 81315
commissioner. The commissioner shall keep an alphabetical index of 81316
such licenses certified to himthe commissioner, and shall update 81317
the index of valid license holders on a regular basis.81318

       Sec. 5743.18.  Upon notice and hearing in accordance with 81319
sections 119.01 to 119.13 of the Revised Code, the tax 81320
commissioner may revoke any manufacturer, importer, wholesale, or 81321
retail cigarette license for violation of sections 5743.01 to81322
5743.21 of the Revised Code. AIn the case of a wholesale or 81323
retail cigarette license, a certified copy of the order revoking 81324
such license shall be transmitted to the county auditor of the 81325
county in which the license was issued. In the case of a license 81326
issued to a manufacturer, the commissioner shall immediately 81327
revoke any such license upon the manufacturer's removal from the 81328
directory under section 1346.05 of the Revised Code.81329

       Sec. 5743.19.  No person shall engage in business as a 81330
manufacturer or importer, or in the wholesale or retail business 81331
of trafficking in cigarettes, without having a license therefor,81332
as required by section 5743.15 of the Revised Code.81333

       Sec. 5743.20.  No person shall sell any cigarettes both as a 81334
retail dealer and as a wholesale dealer at the same place of 81335
business. No wholesale dealer shall sell cigarettes to any person 81336
in this state other than to a licensed retail dealer; and noNo81337
person other than a licensed wholesale dealer shall sell81338
cigarettes to a licensed retail dealer. No retail dealer shall 81339
purchase cigarettes from any person other than a licensed 81340
wholesale dealer.81341

       Subject to section 5743.031 of the Revised Code, a licensed 81342
wholesale dealer may not sell cigarettes to any person in this 81343
state other than a licensed retail dealer, except a licensed 81344
wholesale dealer may sell cigarettes to another licensed wholesale 81345
dealer if the tax commissioner has authorized the sale of the 81346
cigarettes between those wholesale dealers and the wholesale 81347
dealer that sells the cigarettes received them directly from a 81348
licensed manufacturer or licensed importer.81349

        The tax commissioner shall adopt rules governing sales of 81350
cigarettes between licensed wholesale dealers, including rules 81351
establishing criteria for authorizing such sales. 81352

       No manufacturer or importer shall sell cigarettes to any 81353
person in this state other than to a licensed wholesale dealer or 81354
licensed importer. No importer shall purchase cigarettes from any 81355
person other than a licensed manufacturer or licensed importer.81356

       A retail dealer may purchase tobacco products only from a 81357
licensed distributor. A licensed distributor may sell tobacco 81358
products only to a retail dealer, except a licensed distributor 81359
may sell tobacco products to another licensed distributor if the 81360
tax commissioner has authorized the sale of the tobacco products 81361
between those distributors and the distributor that sells the 81362
tobacco products received them directly from a manufacturer or 81363
importer of tobacco products81364

        The tax commissioner may adopt rules governing sales of 81365
tobacco products between licensed distributors, including rules 81366
establishing criteria for authorizing such sales.81367

       The identities of licensed distributors are subject to public 81368
disclosure. The tax commissioner shall maintain an alphabetical 81369
list of all such distributors, shall post the list on a web site 81370
accessible to the public through the internet, and shall 81371
periodically update the web site posting.81372

       As used in this section, "licensed" means the manufacturer, 81373
importer, wholesale dealer, retail dealer, or distributor holds a 81374
current and valid license issued under section 5743.15 or 5743.61 81375
of the Revised Code.81376

       Sec. 5743.32.  To provide revenue for the general revenue81377
fund of the state, an excise tax is hereby levied on the use,81378
consumption, or storage for consumption of cigarettes by consumers81379
in this state at the rate of twenty-seven and one-halfsixty-two 81380
and one-half mills on each cigarette. The tax shall not apply if 81381
the tax levied by section 5743.02 of the Revised Code has been 81382
paid.81383

       The money received into the state treasury from the excise81384
tax levied by this section shall be credited to the general81385
revenue fund.81386

       Sec. 5743.33. EveryExcept as provided in section 5747.331 81387
of the Revised Code, every person who has acquired cigarettes for81388
use, storage, or other consumption subject to the tax levied under81389
section 5743.32, 5743.323, or 5743.324 of the Revised Code, shall, 81390
on or before the fifteenth day of the month following receipt of 81391
such cigarettes, file with the tax commissioner a return showing 81392
the amount of cigarettes acquired, together with remittance of the 81393
tax thereon. No such person shall transport within this state, 81394
cigarettes that have a wholesale value in excess of sixtythree 81395
hundred dollars, unless that person has obtained consent to 81396
transport the cigarettes from the department of taxation prior to81397
such transportation. Such consent shall not be required if the81398
applicable taxes levied under sections 5743.02, 5743.024, and81399
5743.026 of the Revised Code have been paid. Application for the81400
consent shall be in the form prescribed by the tax commissioner.81401

       Every person transporting such cigarettes shall possess the81402
consent while transporting or possessing the cigarettes within81403
this state and shall produce the consent upon request of any law81404
enforcement officer or authorized agent of the tax commissioner.81405

       Any person transporting such cigarettes without the consent81406
required by this section, shall be subject to the provisions of81407
this chapter, including the applicable taxes imposed by sections81408
5743.02, 5743.024, and 5743.026 of the Revised Code. 81409

       Sec. 5743.331.  Notwithstanding any other section in this 81410
chapter to the contrary, a person may use, store, or consume 81411
cigarettes with a wholesale value of not more than three hundred 81412
dollars in any month and not for resale without incurring 81413
liability for any tax levied under this chapter, and is not 81414
required to file any return that otherwise would be required under 81415
this chapter.81416

       Sec. 5743.71.  If a person seeks to obtain cigarettes that 81417
are legal for sale in this state under section 1346.05 of the 81418
Revised Code, and such cigarettes are not reasonably available to 81419
that person at a retail location in this state, the person may 81420
apply to the tax commissioner for consent for consumer shipment. 81421
The consent for consumer shipment must be obtained prior to the 81422
purchase of the cigarettes.81423

       The consent for consumer shipment shall be filed with the 81424
commissioner on a form prescribed by the commissioner showing 81425
purchase of the cigarettes as consented to, and shall be 81426
accompanied by the purchaser's proof of age and any other 81427
information required by the commissioner.81428

       Sec. 5747.01.  Except as otherwise expressly provided or81429
clearly appearing from the context, any term used in this chapter 81430
that is not otherwise defined in this section has the same meaning 81431
as when used in a comparable context in the laws of the United81432
States relating to federal income taxes or if not used in a 81433
comparable context in those laws, has the same meaning as in 81434
section 5733.40 of the Revised Code. Any reference in this chapter 81435
to the Internal Revenue Code includes other laws of the United 81436
States relating to federal income taxes.81437

       As used in this chapter:81438

       (A) "Adjusted gross income" or "Ohio adjusted gross income"81439
means federal adjusted gross income, as defined and used in the81440
Internal Revenue Code, adjusted as provided in this section:81441

       (1) Add interest or dividends on obligations or securities of 81442
any state or of any political subdivision or authority of any81443
state, other than this state and its subdivisions and authorities.81444

       (2) Add interest or dividends on obligations of any81445
authority, commission, instrumentality, territory, or possession81446
of the United States to the extent that the interest or dividends81447
are exempt from federal income taxes but not from state income81448
taxes.81449

       (3) Deduct interest or dividends on obligations of the United 81450
States and its territories and possessions or of any authority, 81451
commission, or instrumentality of the United States to the extent81452
that the interest or dividends are included in federal adjusted 81453
gross income but exempt from state income taxes under the laws of 81454
the United States.81455

       (4) Deduct disability and survivor's benefits to the extent81456
included in federal adjusted gross income.81457

       (5) Deduct benefits under Title II of the Social Security Act 81458
and tier 1 railroad retirement benefits to the extent included in 81459
federal adjusted gross income under section 86 of the Internal81460
Revenue Code.81461

       (6) In the case of a taxpayer who is a beneficiary of a trust 81462
that makes an accumulation distribution as defined in section 665 81463
of the Internal Revenue Code, add, for the beneficiary's taxable 81464
years beginning before 2002 or after 2004, the portion, if any, of81465
such distribution that does not exceed the undistributed net81466
income of the trust for the three taxable years preceding the81467
taxable year in which the distribution is made to the extent that 81468
the portion was not included in the trust's taxable income for any 81469
of the trust's taxable years beginning in 2002, 2003, or 200481470
thereafter. "Undistributed net income of a trust" means the 81471
taxable income of the trust increased by (a)(i) the additions to 81472
adjusted gross income required under division (A) of this section 81473
and (ii) the personal exemptions allowed to the trust pursuant to 81474
section 642(b) of the Internal Revenue Code, and decreased by 81475
(b)(i) the deductions to adjusted gross income required under 81476
division (A) of this section, (ii) the amount of federal income 81477
taxes attributable to such income, and (iii) the amount of taxable 81478
income that has been included in the adjusted gross income of a 81479
beneficiary by reason of a prior accumulation distribution. Any 81480
undistributed net income included in the adjusted gross income of 81481
a beneficiary shall reduce the undistributed net income of the 81482
trust commencing with the earliest years of the accumulation 81483
period.81484

       (7) Deduct the amount of wages and salaries, if any, not81485
otherwise allowable as a deduction but that would have been81486
allowable as a deduction in computing federal adjusted gross81487
income for the taxable year, had the targeted jobs credit allowed81488
and determined under sections 38, 51, and 52 of the Internal81489
Revenue Code not been in effect.81490

       (8) Deduct any interest or interest equivalent on public81491
obligations and purchase obligations to the extent that the81492
interest or interest equivalent is included in federal adjusted81493
gross income.81494

       (9) Add any loss or deduct any gain resulting from the sale,81495
exchange, or other disposition of public obligations to the extent81496
that the loss has been deducted or the gain has been included in81497
computing federal adjusted gross income.81498

       (10) Deduct or add amounts, as provided under section 5747.70 81499
of the Revised Code, related to contributions to variable college 81500
savings program accounts made or tuition creditsunits purchased81501
pursuant to Chapter 3334. of the Revised Code.81502

       (11)(a) Deduct, to the extent not otherwise allowable as a81503
deduction or exclusion in computing federal or Ohio adjusted gross81504
income for the taxable year, the amount the taxpayer paid during81505
the taxable year for medical care insurance and qualified81506
long-term care insurance for the taxpayer, the taxpayer's spouse,81507
and dependents. No deduction for medical care insurance under81508
division (A)(11) of this section shall be allowed either to any81509
taxpayer who is eligible to participate in any subsidized health81510
plan maintained by any employer of the taxpayer or of the81511
taxpayer's spouse, or to any taxpayer who is entitled to, or on81512
application would be entitled to, benefits under part A of Title81513
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.81514
301, as amended. For the purposes of division (A)(11)(a) of this81515
section, "subsidized health plan" means a health plan for which81516
the employer pays any portion of the plan's cost. The deduction81517
allowed under division (A)(11)(a) of this section shall be the net81518
of any related premium refunds, related premium reimbursements, or81519
related insurance premium dividends received during the taxable81520
year.81521

       (b) Deduct, to the extent not otherwise deducted or excluded81522
in computing federal or Ohio adjusted gross income during the81523
taxable year, the amount the taxpayer paid during the taxable81524
year, not compensated for by any insurance or otherwise, for81525
medical care of the taxpayer, the taxpayer's spouse, and81526
dependents, to the extent the expenses exceed seven and one-half81527
per cent of the taxpayer's federal adjusted gross income.81528

       (c) For purposes of division (A)(11) of this section,81529
"medical care" has the meaning given in section 213 of the81530
Internal Revenue Code, subject to the special rules, limitations,81531
and exclusions set forth therein, and "qualified long-term care"81532
has the same meaning given in section 7702(B)(b) of the Internal81533
Revenue Code.81534

       (12)(a) Deduct any amount included in federal adjusted gross81535
income solely because the amount represents a reimbursement or81536
refund of expenses that in any year the taxpayer had deducted as81537
an itemized deduction pursuant to section 63 of the Internal81538
Revenue Code and applicable United States department of the81539
treasury regulations. The deduction otherwise allowed under81540
division (A)(12)(a) of this section shall be reduced to the extent81541
the reimbursement is attributable to an amount the taxpayer81542
deducted under this section in any taxable year.81543

       (b) Add any amount not otherwise included in Ohio adjusted81544
gross income for any taxable year to the extent that the amount is81545
attributable to the recovery during the taxable year of any amount81546
deducted or excluded in computing federal or Ohio adjusted gross81547
income in any taxable year.81548

       (13) Deduct any portion of the deduction described in section 81549
1341(a)(2) of the Internal Revenue Code, for repaying previously 81550
reported income received under a claim of right, that meets both 81551
of the following requirements:81552

       (a) It is allowable for repayment of an item that was81553
included in the taxpayer's adjusted gross income for a prior81554
taxable year and did not qualify for a credit under division (A)81555
or (B) of section 5747.05 of the Revised Code for that year;81556

       (b) It does not otherwise reduce the taxpayer's adjusted81557
gross income for the current or any other taxable year.81558

       (14) Deduct an amount equal to the deposits made to, and net81559
investment earnings of, a medical savings account during the81560
taxable year, in accordance with section 3924.66 of the Revised81561
Code. The deduction allowed by division (A)(14) of this section81562
does not apply to medical savings account deposits and earnings81563
otherwise deducted or excluded for the current or any other81564
taxable year from the taxpayer's federal adjusted gross income.81565

       (15)(a) Add an amount equal to the funds withdrawn from a81566
medical savings account during the taxable year, and the net81567
investment earnings on those funds, when the funds withdrawn were81568
used for any purpose other than to reimburse an account holder81569
for, or to pay, eligible medical expenses, in accordance with81570
section 3924.66 of the Revised Code;81571

       (b) Add the amounts distributed from a medical savings81572
account under division (A)(2) of section 3924.68 of the Revised81573
Code during the taxable year.81574

       (16) Add any amount claimed as a credit under section81575
5747.059 of the Revised Code to the extent that such amount81576
satisfies either of the following:81577

       (a) The amount was deducted or excluded from the computation81578
of the taxpayer's federal adjusted gross income as required to be81579
reported for the taxpayer's taxable year under the Internal81580
Revenue Code;81581

       (b) The amount resulted in a reduction of the taxpayer's81582
federal adjusted gross income as required to be reported for any81583
of the taxpayer's taxable years under the Internal Revenue Code.81584

       (17) Deduct the amount contributed by the taxpayer to an81585
individual development account program established by a county81586
department of job and family services pursuant to sections 329.1181587
to 329.14 of the Revised Code for the purpose of matching funds81588
deposited by program participants. On request of the tax81589
commissioner, the taxpayer shall provide any information that, in81590
the tax commissioner's opinion, is necessary to establish the81591
amount deducted under division (A)(17) of this section.81592

       (18) Beginning in taxable year 2001 but not for any taxable 81593
year beginning after December 31, 2005, if the taxpayer is married81594
and files a joint return and the combined federal adjusted gross 81595
income of the taxpayer and the taxpayer's spouse for the taxable 81596
year does not exceed one hundred thousand dollars, or if the 81597
taxpayer is single and has a federal adjusted gross income for the81598
taxable year not exceeding fifty thousand dollars, deduct amounts 81599
paid during the taxable year for qualified tuition and fees paid 81600
to an eligible institution for the taxpayer, the taxpayer's 81601
spouse, or any dependent of the taxpayer, who is a resident of 81602
this state and is enrolled in or attending a program that81603
culminates in a degree or diploma at an eligible institution. The 81604
deduction may be claimed only to the extent that qualified tuition 81605
and fees are not otherwise deducted or excluded for any taxable 81606
year from federal or Ohio adjusted gross income. The deduction may 81607
not be claimed for educational expenses for which the taxpayer 81608
claims a credit under section 5747.27 of the Revised Code.81609

       (19) Add any reimbursement received during the taxable year81610
of any amount the taxpayer deducted under division (A)(18) of this81611
section in any previous taxable year to the extent the amount is81612
not otherwise included in Ohio adjusted gross income.81613

       (20)(a)(i) Add five-sixths of the amount of depreciation81614
expense allowed by subsection (k) of section 168 of the Internal81615
Revenue Code, including the taxpayer's proportionate or81616
distributive share of the amount of depreciation expense allowed81617
by that subsection to a pass-through entity in which the taxpayer81618
has a direct or indirect ownership interest.81619

       (ii) Add five-sixths of the amount of qualifying section 179 81620
depreciation expense, including a person's proportionate or 81621
distributive share of the amount of qualifying section 179 81622
depreciation expense allowed to any pass-through entity in which 81623
the person has a direct or indirect ownership. For the purposes of 81624
this division, "qualifying section 179 depreciation expense" means 81625
the difference between (I) the amount of depreciation expense 81626
directly or indirectly allowed to the taxpayer under section 179 81627
of the Internal Revenue Code, and (II) the amount of depreciation 81628
expense directly or indirectly allowed to the taxpayer under 81629
section 179 of the Internal Revenue Code as that section existed 81630
on December 31, 2002.81631

       The tax commissioner, under procedures established by the 81632
commissioner, may waive the add-backs related to a pass-through 81633
entity if the taxpayer owns, directly or indirectly, less than 81634
five per cent of the pass-through entity.81635

       (b) Nothing in division (A)(20) of this section shall be81636
construed to adjust or modify the adjusted basis of any asset.81637

       (c) To the extent the add-back required under division81638
(A)(20)(a) of this section is attributable to property generating81639
nonbusiness income or loss allocated under section 5747.20 of the81640
Revised Code, the add-back shall be sitused to the same location81641
as the nonbusiness income or loss generated by the property for81642
the purpose of determining the credit under division (A) of81643
section 5747.05 of the Revised Code. Otherwise, the add-back shall 81644
be apportioned, subject to one or more of the four alternative 81645
methods of apportionment enumerated in section 5747.21 of the 81646
Revised Code.81647

       (d) For the purposes of division (A) of this section, net 81648
operating loss carryback and carryforward shall not include 81649
five-sixths of the allowance of any net operating loss deduction 81650
carryback or carryforward to the taxable year to the extent such 81651
loss resulted from depreciation allowed by section 168(k) of the 81652
Internal Revenue Code and by the qualifying section 179 81653
depreciation expense amount.81654

       (21)(a) If the taxpayer was required to add an amount under81655
division (A)(20)(a) of this section for a taxable year, deduct81656
one-fifth of the amount so added for each of the five succeeding81657
taxable years.81658

       (b) If the amount deducted under division (A)(21)(a) of this81659
section is attributable to an add-back allocated under division81660
(A)(20)(c) of this section, the amount deducted shall be sitused81661
to the same location. Otherwise, the add-back shall be apportioned 81662
using the apportionment factors for the taxable year in which the 81663
deduction is taken, subject to one or more of the four alternative 81664
methods of apportionment enumerated in section 5747.21 of the 81665
Revised Code.81666

       (c) No deduction is available under division (A)(21)(a) of 81667
this section with regard to any depreciation allowed by section 81668
168(k) of the Internal Revenue Code and by the qualifying section 81669
179 depreciation expense amount to the extent that such 81670
depreciation resulted in or increased a federal net operating loss 81671
carryback or carryforward to a taxable year to which division 81672
(A)(20)(d) of this section does not apply.81673

       (B) "Business income" means income, including gain or loss,81674
arising from transactions, activities, and sources in the regular81675
course of a trade or business and includes income, gain, or loss81676
from real property, tangible property, and intangible property if81677
the acquisition, rental, management, and disposition of the81678
property constitute integral parts of the regular course of a81679
trade or business operation. "Business income" includes income,81680
including gain or loss, from a partial or complete liquidation of81681
a business, including, but not limited to, gain or loss from the81682
sale or other disposition of goodwill.81683

       (C) "Nonbusiness income" means all income other than business 81684
income and may include, but is not limited to, compensation, rents 81685
and royalties from real or tangible personal property, capital 81686
gains, interest, dividends and distributions, patent or copyright 81687
royalties, or lottery winnings, prizes, and awards.81688

       (D) "Compensation" means any form of remuneration paid to an81689
employee for personal services.81690

       (E) "Fiduciary" means a guardian, trustee, executor,81691
administrator, receiver, conservator, or any other person acting81692
in any fiduciary capacity for any individual, trust, or estate.81693

       (F) "Fiscal year" means an accounting period of twelve months 81694
ending on the last day of any month other than December.81695

       (G) "Individual" means any natural person.81696

       (H) "Internal Revenue Code" means the "Internal Revenue Code81697
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.81698

       (I) "Resident" means any of the following, provided that81699
division (I)(3) of this section applies only to taxable years of a81700
trust beginning in 2002, 2003, or 2004thereafter:81701

       (1) An individual who is domiciled in this state, subject to81702
section 5747.24 of the Revised Code;81703

       (2) The estate of a decedent who at the time of death was81704
domiciled in this state. The domicile tests of section 5747.24 of81705
the Revised Code and any election under section 5747.25 of the81706
Revised Code are not controlling for purposes of division (I)(2)81707
of this section.81708

       (3) A trust that, in whole or part, resides in this state. If81709
only part of a trust resides in this state, the trust is a81710
resident only with respect to that part.81711

       For the purposes of division (I)(3) of this section:81712

       (a) A trust resides in this state for the trust's current81713
taxable year to the extent, as described in division (I)(3)(d) of81714
this section, that the trust consists directly or indirectly, in 81715
whole or in part, of assets, net of any related liabilities, that 81716
were transferred, or caused to be transferred, directly or 81717
indirectly, to the trust by any of the following:81718

        (i) A person, a court, or a governmental entity or 81719
instrumentality on account of the death of a decedent, but only if 81720
the trust is described in division (I)(3)(e)(i) or (ii) of this 81721
section;81722

       (ii) A person who was domiciled in this state for the 81723
purposes of this chapter when the person directly or indirectly 81724
transferred assets to an irrevocable trust, but only if at least 81725
one of the trust's qualifying beneficiaries is domiciled in this 81726
state for the purposes of this chapter during all or some portion 81727
of the trust's current taxable year;81728

       (iii) A person who was domiciled in this state for the81729
purposes of this chapter when the trust document or instrument or81730
part of the trust document or instrument became irrevocable, but81731
only if at least one of the trust's qualifying beneficiaries is a 81732
resident domiciled in this state for the purposes of this chapter81733
during all or some portion of the trust's current taxable year. If 81734
a trust document or instrument became irrevocable upon the death 81735
of a person who at the time of death was domiciled in this state 81736
for purposes of this chapter, that person is a person described in 81737
division (I)(3)(a)(iii) of this section.81738

        (b) A trust is irrevocable to the extent that the transferor 81739
is not considered to be the owner of the net assets of the trust 81740
under sections 671 to 678 of the Internal Revenue Code.81741

       (c) With respect to a trust other than a charitable lead81742
trust, "qualifying beneficiary" has the same meaning as "potential81743
current beneficiary" as defined in section 1361(e)(2) of the81744
Internal Revenue Code, and with respect to a charitable lead trust81745
"qualifying beneficiary" is any current, future, or contingent81746
beneficiary, but with respect to any trust "qualifying81747
beneficiary" excludes a person or a governmental entity or81748
instrumentality to any of which a contribution would qualify for81749
the charitable deduction under section 170 of the Internal Revenue81750
Code.81751

        (d) For the purposes of division (I)(3)(a) of this section,81752
the extent to which a trust consists directly or indirectly, in81753
whole or in part, of assets, net of any related liabilities, that81754
were transferred directly or indirectly, in whole or part, to the81755
trust by any of the sources enumerated in that division shall be81756
ascertained by multiplying the fair market value of the trust's81757
assets, net of related liabilities, by the qualifying ratio, which81758
shall be computed as follows:81759

        (i) The first time the trust receives assets, the numerator81760
of the qualifying ratio is the fair market value of those assets81761
at that time, net of any related liabilities, from sources81762
enumerated in division (I)(3)(a) of this section. The denominator81763
of the qualifying ratio is the fair market value of all the81764
trust's assets at that time, net of any related liabilities.81765

        (ii) Each subsequent time the trust receives assets, a81766
revised qualifying ratio shall be computed. The numerator of the81767
revised qualifying ratio is the sum of (1) the fair market value81768
of the trust's assets immediately prior to the subsequent81769
transfer, net of any related liabilities, multiplied by the81770
qualifying ratio last computed without regard to the subsequent81771
transfer, and (2) the fair market value of the subsequently81772
transferred assets at the time transferred, net of any related81773
liabilities, from sources enumerated in division (I)(3)(a) of this81774
section. The denominator of the revised qualifying ratio is the81775
fair market value of all the trust's assets immediately after the81776
subsequent transfer, net of any related liabilities.81777

       (iii) Whether a transfer to the trust is by or from any of 81778
the sources enumerated in division (I)(3)(a) of this section shall 81779
be ascertained without regard to the domicile of the trust's 81780
beneficiaries.81781

        (e) For the purposes of division (I)(3)(a)(i) of this81782
section:81783

        (i) A trust is described in division (I)(3)(e)(i) of this81784
section if the trust is a testamentary trust and the testator of81785
that testamentary trust was domiciled in this state at the time of81786
the testator's death for purposes of the taxes levied under81787
Chapter 5731. of the Revised Code.81788

        (ii) A trust is described in division (I)(3)(e)(ii) of this81789
section if the transfer is a qualifying transfer described in any81790
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an81791
irrevocable inter vivos trust, and at least one of the trust's81792
qualifying beneficiaries is domiciled in this state for purposes81793
of this chapter during all or some portion of the trust's current81794
taxable year.81795

        (f) For the purposes of division (I)(3)(e)(ii) of this81796
section, a "qualifying transfer" is a transfer of assets, net of81797
any related liabilities, directly or indirectly to a trust, if the81798
transfer is described in any of the following:81799

        (i) The transfer is made to a trust, created by the decedent 81800
before the decedent's death and while the decedent was domiciled 81801
in this state for the purposes of this chapter, and, prior to the 81802
death of the decedent, the trust became irrevocable while the 81803
decedent was domiciled in this state for the purposes of this 81804
chapter.81805

        (ii) The transfer is made to a trust to which the decedent,81806
prior to the decedent's death, had directly or indirectly81807
transferred assets, net of any related liabilities, while the81808
decedent was domiciled in this state for the purposes of this81809
chapter, and prior to the death of the decedent the trust became81810
irrevocable while the decedent was domiciled in this state for the81811
purposes of this chapter.81812

        (iii) The transfer is made on account of a contractual81813
relationship existing directly or indirectly between the81814
transferor and either the decedent or the estate of the decedent81815
at any time prior to the date of the decedent's death, and the81816
decedent was domiciled in this state at the time of death for81817
purposes of the taxes levied under Chapter 5731. of the Revised81818
Code.81819

        (iv) The transfer is made to a trust on account of a81820
contractual relationship existing directly or indirectly between81821
the transferor and another person who at the time of the81822
decedent's death was domiciled in this state for purposes of this81823
chapter.81824

        (v) The transfer is made to a trust on account of the will of 81825
a testator.81826

        (vi) The transfer is made to a trust created by or caused to 81827
be created by a court, and the trust was directly or indirectly81828
created in connection with or as a result of the death of an81829
individual who, for purposes of the taxes levied under Chapter81830
5731. of the Revised Code, was domiciled in this state at the time81831
of the individual's death.81832

       (g) The tax commissioner may adopt rules to ascertain the81833
part of a trust residing in this state.81834

       (J) "Nonresident" means an individual or estate that is not a 81835
resident. An individual who is a resident for only part of a81836
taxable year is a nonresident for the remainder of that taxable81837
year.81838

       (K) "Pass-through entity" has the same meaning as in section81839
5733.04 of the Revised Code.81840

       (L) "Return" means the notifications and reports required to81841
be filed pursuant to this chapter for the purpose of reporting the81842
tax due and includes declarations of estimated tax when so81843
required.81844

       (M) "Taxable year" means the calendar year or the taxpayer's81845
fiscal year ending during the calendar year, or fractional part81846
thereof, upon which the adjusted gross income is calculated81847
pursuant to this chapter.81848

       (N) "Taxpayer" means any person subject to the tax imposed by 81849
section 5747.02 of the Revised Code or any pass-through entity81850
that makes the election under division (D) of section 5747.08 of81851
the Revised Code.81852

       (O) "Dependents" means dependents as defined in the Internal81853
Revenue Code and as claimed in the taxpayer's federal income tax81854
return for the taxable year or which the taxpayer would have been81855
permitted to claim had the taxpayer filed a federal income tax81856
return.81857

       (P) "Principal county of employment" means, in the case of a81858
nonresident, the county within the state in which a taxpayer81859
performs services for an employer or, if those services are81860
performed in more than one county, the county in which the major81861
portion of the services are performed.81862

       (Q) As used in sections 5747.50 to 5747.55 of the Revised81863
Code:81864

       (1) "Subdivision" means any county, municipal corporation,81865
park district, or township.81866

       (2) "Essential local government purposes" includes all81867
functions that any subdivision is required by general law to81868
exercise, including like functions that are exercised under a81869
charter adopted pursuant to the Ohio Constitution.81870

       (R) "Overpayment" means any amount already paid that exceeds81871
the figure determined to be the correct amount of the tax.81872

       (S) "Taxable income" or "Ohio taxable income" applies only to 81873
estates and trusts, and means federal taxable income, as defined 81874
and used in the Internal Revenue Code, adjusted as follows:81875

       (1) Add interest or dividends, net of ordinary, necessary,81876
and reasonable expenses not deducted in computing federal taxable81877
income, on obligations or securities of any state or of any81878
political subdivision or authority of any state, other than this81879
state and its subdivisions and authorities, but only to the extent 81880
that such net amount is not otherwise includible in Ohio taxable 81881
income and is described in either division (S)(1)(a) or (b) of 81882
this section:81883

        (a) The net amount is not attributable to the S portion of an 81884
electing small business trust and has not been distributed to81885
beneficiaries for the taxable year;81886

        (b) The net amount is attributable to the S portion of an81887
electing small business trust for the taxable year.81888

       (2) Add interest or dividends, net of ordinary, necessary,81889
and reasonable expenses not deducted in computing federal taxable81890
income, on obligations of any authority, commission,81891
instrumentality, territory, or possession of the United States to81892
the extent that the interest or dividends are exempt from federal81893
income taxes but not from state income taxes, but only to the81894
extent that such net amount is not otherwise includible in Ohio81895
taxable income and is described in either division (S)(1)(a) or81896
(b) of this section;81897

       (3) Add the amount of personal exemption allowed to the81898
estate pursuant to section 642(b) of the Internal Revenue Code;81899

       (4) Deduct interest or dividends, net of related expenses81900
deducted in computing federal taxable income, on obligations of81901
the United States and its territories and possessions or of any81902
authority, commission, or instrumentality of the United States to81903
the extent that the interest or dividends are exempt from state81904
taxes under the laws of the United States, but only to the extent81905
that such amount is included in federal taxable income and is81906
described in either division (S)(1)(a) or (b) of this section;81907

       (5) Deduct the amount of wages and salaries, if any, not81908
otherwise allowable as a deduction but that would have been81909
allowable as a deduction in computing federal taxable income for81910
the taxable year, had the targeted jobs credit allowed under81911
sections 38, 51, and 52 of the Internal Revenue Code not been in81912
effect, but only to the extent such amount relates either to81913
income included in federal taxable income for the taxable year or81914
to income of the S portion of an electing small business trust for81915
the taxable year;81916

       (6) Deduct any interest or interest equivalent, net of81917
related expenses deducted in computing federal taxable income, on81918
public obligations and purchase obligations, but only to the81919
extent that such net amount relates either to income included in81920
federal taxable income for the taxable year or to income of the S81921
portion of an electing small business trust for the taxable year;81922

       (7) Add any loss or deduct any gain resulting from sale,81923
exchange, or other disposition of public obligations to the extent81924
that such loss has been deducted or such gain has been included in81925
computing either federal taxable income or income of the S portion81926
of an electing small business trust for the taxable year;81927

       (8) Except in the case of the final return of an estate, add81928
any amount deducted by the taxpayer on both its Ohio estate tax81929
return pursuant to section 5731.14 of the Revised Code, and on its81930
federal income tax return in determining federal taxable income;81931

       (9)(a) Deduct any amount included in federal taxable income81932
solely because the amount represents a reimbursement or refund of81933
expenses that in a previous year the decedent had deducted as an81934
itemized deduction pursuant to section 63 of the Internal Revenue81935
Code and applicable treasury regulations. The deduction otherwise81936
allowed under division (S)(9)(a) of this section shall be reduced81937
to the extent the reimbursement is attributable to an amount the81938
taxpayer or decedent deducted under this section in any taxable81939
year.81940

       (b) Add any amount not otherwise included in Ohio taxable81941
income for any taxable year to the extent that the amount is81942
attributable to the recovery during the taxable year of any amount81943
deducted or excluded in computing federal or Ohio taxable income81944
in any taxable year, but only to the extent such amount has not81945
been distributed to beneficiaries for the taxable year.81946

       (10) Deduct any portion of the deduction described in section 81947
1341(a)(2) of the Internal Revenue Code, for repaying previously 81948
reported income received under a claim of right, that meets both 81949
of the following requirements:81950

       (a) It is allowable for repayment of an item that was81951
included in the taxpayer's taxable income or the decedent's81952
adjusted gross income for a prior taxable year and did not qualify81953
for a credit under division (A) or (B) of section 5747.05 of the81954
Revised Code for that year.81955

       (b) It does not otherwise reduce the taxpayer's taxable81956
income or the decedent's adjusted gross income for the current or81957
any other taxable year.81958

       (11) Add any amount claimed as a credit under section81959
5747.059 of the Revised Code to the extent that the amount81960
satisfies either of the following:81961

       (a) The amount was deducted or excluded from the computation81962
of the taxpayer's federal taxable income as required to be81963
reported for the taxpayer's taxable year under the Internal81964
Revenue Code;81965

       (b) The amount resulted in a reduction in the taxpayer's81966
federal taxable income as required to be reported for any of the81967
taxpayer's taxable years under the Internal Revenue Code.81968

       (12) Deduct any amount, net of related expenses deducted in81969
computing federal taxable income, that a trust is required to81970
report as farm income on its federal income tax return, but only81971
if the assets of the trust include at least ten acres of land81972
satisfying the definition of "land devoted exclusively to81973
agricultural use" under section 5713.30 of the Revised Code,81974
regardless of whether the land is valued for tax purposes as such81975
land under sections 5713.30 to 5713.38 of the Revised Code. If the81976
trust is a pass-though entity investor, section 5747.231 of the81977
Revised Code applies in ascertaining if the trust is eligible to81978
claim the deduction provided by division (S)(12) of this section81979
in connection with the pass-through entity's farm income.81980

        Except for farm income attributable to the S portion of an81981
electing small business trust, the deduction provided by division81982
(S)(12) of this section is allowed only to the extent that the81983
trust has not distributed such farm income. Division (S)(12) of81984
this section applies only to taxable years of a trust beginning in81985
2002, 2003, or 2004thereafter.81986

       (13) Add the net amount of income described in section 641(c)81987
of the Internal Revenue Code to the extent that amount is not81988
included in federal taxable income.81989

       (14) Add or deduct the amount the taxpayer would be required81990
to add or deduct under division (A)(20) or (21) of this section if81991
the taxpayer's Ohio taxable income were computed in the same81992
manner as an individual's Ohio adjusted gross income is computed81993
under this section. In the case of a trust, division (S)(14) of81994
this section applies only to any of the trust's taxable years81995
beginning in 2002, 2003, or 2004thereafter.81996

       (T) "School district income" and "school district income tax" 81997
have the same meanings as in section 5748.01 of the Revised Code.81998

       (U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)81999
of this section, "public obligations," "purchase obligations," and82000
"interest or interest equivalent" have the same meanings as in82001
section 5709.76 of the Revised Code.82002

       (V) "Limited liability company" means any limited liability82003
company formed under Chapter 1705. of the Revised Code or under82004
the laws of any other state.82005

       (W) "Pass-through entity investor" means any person who,82006
during any portion of a taxable year of a pass-through entity, is82007
a partner, member, shareholder, or equity investor in that82008
pass-through entity.82009

       (X) "Banking day" has the same meaning as in section 1304.0182010
of the Revised Code.82011

       (Y) "Month" means a calendar month.82012

       (Z) "Quarter" means the first three months, the second three82013
months, the third three months, or the last three months of the82014
taxpayer's taxable year.82015

       (AA)(1) "Eligible institution" means a state university or82016
state institution of higher education as defined in section82017
3345.011 of the Revised Code, or a private, nonprofit college,82018
university, or other post-secondary institution located in this82019
state that possesses a certificate of authorization issued by the82020
Ohio board of regents pursuant to Chapter 1713. of the Revised82021
Code or a certificate of registration issued by the state board of82022
career colleges and schools under Chapter 3332. of the Revised82023
Code.82024

       (2) "Qualified tuition and fees" means tuition and fees82025
imposed by an eligible institution as a condition of enrollment or82026
attendance, not exceeding two thousand five hundred dollars in82027
each of the individual's first two years of post-secondary82028
education. If the individual is a part-time student, "qualified82029
tuition and fees" includes tuition and fees paid for the academic82030
equivalent of the first two years of post-secondary education82031
during a maximum of five taxable years, not exceeding a total of82032
five thousand dollars. "Qualified tuition and fees" does not82033
include:82034

       (a) Expenses for any course or activity involving sports,82035
games, or hobbies unless the course or activity is part of the82036
individual's degree or diploma program;82037

       (b) The cost of books, room and board, student activity fees,82038
athletic fees, insurance expenses, or other expenses unrelated to 82039
the individual's academic course of instruction;82040

       (c) Tuition, fees, or other expenses paid or reimbursed82041
through an employer, scholarship, grant in aid, or other82042
educational benefit program.82043

       (BB)(1) "Modified business income" means the business income82044
included in a trust's Ohio taxable income after such taxable82045
income is first reduced by the qualifying trust amount, if any.82046

       (2) "Qualifying trust amount" of a trust means capital gains82047
and losses from the sale, exchange, or other disposition of equity82048
or ownership interests in, or debt obligations of, a qualifying82049
investee to the extent included in the trust's Ohio taxable 82050
income, but only if the following requirements are satisfied:82051

        (a) The book value of the qualifying investee's physical 82052
assets in this state and everywhere, as of the last day of the 82053
qualifying investee's fiscal or calendar year ending immediately 82054
prior to the date on which the trust recognizes the gain or loss, 82055
is available to the trust.82056

       (b) The requirements of section 5747.011 of the Revised Code82057
are satisfied for the trust's taxable year in which the trust82058
recognizes the gain or loss.82059

        Any gain or loss that is not a qualifying trust amount is82060
modified business income, qualifying investment income, or82061
modified nonbusiness income, as the case may be.82062

       (3) "Modified nonbusiness income" means a trust's Ohio82063
taxable income other than modified business income, other than the82064
qualifying trust amount, and other than qualifying investment82065
income, as defined in section 5747.012 of the Revised Code, to the82066
extent such qualifying investment income is not otherwise part of82067
modified business income.82068

       (4) "Modified Ohio taxable income" applies only to trusts,82069
and means the sum of the amounts described in divisions (BB)(4)(a) 82070
to (c) of this section:82071

       (a) The fraction, calculated under section 5747.013, and 82072
applying section 5747.231 of the Revised Code, multiplied by the 82073
sum of the following amounts:82074

        (i) The trust's modified business income;82075

        (ii) The trust's qualifying investment income, as defined in 82076
section 5747.012 of the Revised Code, but only to the extent the 82077
qualifying investment income does not otherwise constitute82078
modified business income and does not otherwise constitute a82079
qualifying trust amount.82080

       (b) The qualifying trust amount multiplied by a fraction, the 82081
numerator of which is the sum of the book value of the qualifying 82082
investee's physical assets in this state on the last day of the 82083
qualifying investee's fiscal or calendar year ending immediately 82084
prior to the day on which the trust recognizes the qualifying 82085
trust amount, and the denominator of which is the sum of the book 82086
value of the qualifying investee's total physical assets 82087
everywhere on the last day of the qualifying investee's fiscal or 82088
calendar year ending immediately prior to the day on which the 82089
trust recognizes the qualifying trust amount. If, for a taxable 82090
year, the trust recognizes a qualifying trust amount with respect 82091
to more than one qualifying investee, the amount described in 82092
division (BB)(4)(b) of this section shall equal the sum of the82093
products so computed for each such qualifying investee.82094

       (c)(i) With respect to a trust or portion of a trust that is 82095
a resident as ascertained in accordance with division (I)(3)(d) of 82096
this section, its modified nonbusiness income.82097

        (ii) With respect to a trust or portion of a trust that is82098
not a resident as ascertained in accordance with division82099
(I)(3)(d) of this section, the amount of its modified nonbusiness82100
income satisfying the descriptions in divisions (B)(2) to (5) of82101
section 5747.20 of the Revised Code.82102

       If the allocation and apportionment of a trust's income under82103
divisions (BB)(4)(a) and (c) of this section do not fairly82104
represent the modified Ohio taxable income of the trust in this82105
state, the alternative methods described in division (C) of82106
section 5747.21 of the Revised Code may be applied in the manner82107
and to the same extent provided in that section.82108

       (5)(a) Except as set forth in division (BB)(5)(b) of this 82109
section, "qualifying investee" means a person in which a trust has 82110
an equity or ownership interest, or a person or unit of government 82111
the debt obligations of either of which are owned by a trust. For 82112
the purposes of division (BB)(2)(a) of this section and for the 82113
purpose of computing the fraction described in division (BB)(4)(b) 82114
of this section, all of the following apply:82115

        (i) If the qualifying investee is a member of a qualifying82116
controlled group on the last day of the qualifying investee's82117
fiscal or calendar year ending immediately prior to the date on82118
which the trust recognizes the gain or loss, then "qualifying82119
investee" includes all persons in the qualifying controlled group82120
on such last day.82121

        (ii) If the qualifying investee, or if the qualifying82122
investee and any members of the qualifying controlled group of82123
which the qualifying investee is a member on the last day of the82124
qualifying investee's fiscal or calendar year ending immediately82125
prior to the date on which the trust recognizes the gain or loss,82126
separately or cumulatively own, directly or indirectly, on the82127
last day of the qualifying investee's fiscal or calendar year82128
ending immediately prior to the date on which the trust recognizes82129
the qualifying trust amount, more than fifty per cent of the82130
equity of a pass-through entity, then the qualifying investee and82131
the other members are deemed to own the proportionate share of the82132
pass-through entity's physical assets which the pass-through82133
entity directly or indirectly owns on the last day of the82134
pass-through entity's calendar or fiscal year ending within or82135
with the last day of the qualifying investee's fiscal or calendar82136
year ending immediately prior to the date on which the trust82137
recognizes the qualifying trust amount.82138

        (iii) For the purposes of division (BB)(5)(a)(iii) of this82139
section, "upper level pass-through entity" means a pass-through82140
entity directly or indirectly owning any equity of another82141
pass-through entity, and "lower level pass-through entity" means82142
that other pass-through entity.82143

        An upper level pass-through entity, whether or not it is also 82144
a qualifying investee, is deemed to own, on the last day of the 82145
upper level pass-through entity's calendar or fiscal year, the82146
proportionate share of the lower level pass-through entity's82147
physical assets that the lower level pass-through entity directly82148
or indirectly owns on the last day of the lower level pass-through82149
entity's calendar or fiscal year ending within or with the last82150
day of the upper level pass-through entity's fiscal or calendar82151
year. If the upper level pass-through entity directly and82152
indirectly owns less than fifty per cent of the equity of the82153
lower level pass-through entity on each day of the upper level82154
pass-through entity's calendar or fiscal year in which or with82155
which ends the calendar or fiscal year of the lower level82156
pass-through entity and if, based upon clear and convincing82157
evidence, complete information about the location and cost of the82158
physical assets of the lower pass-through entity is not available82159
to the upper level pass-through entity, then solely for purposes82160
of ascertaining if a gain or loss constitutes a qualifying trust82161
amount, the upper level pass-through entity shall be deemed as82162
owning no equity of the lower level pass-through entity for each82163
day during the upper level pass-through entity's calendar or82164
fiscal year in which or with which ends the lower level82165
pass-through entity's calendar or fiscal year. Nothing in division 82166
(BB)(5)(a)(iii) of this section shall be construed to provide for 82167
any deduction or exclusion in computing any trust's Ohio taxable 82168
income.82169

       (b) With respect to a trust that is not a resident for the82170
taxable year and with respect to a part of a trust that is not a82171
resident for the taxable year, "qualifying investee" for that82172
taxable year does not include a C corporation if both of the82173
following apply:82174

       (i) During the taxable year the trust or part of the trust82175
recognizes a gain or loss from the sale, exchange, or other82176
disposition of equity or ownership interests in, or debt82177
obligations of, the C corporation.82178

       (ii) Such gain or loss constitutes nonbusiness income.82179

        (6) "Available" means information is such that a person is 82180
able to learn of the information by the due date plus extensions, 82181
if any, for filing the return for the taxable year in which the 82182
trust recognizes the gain or loss.82183

        (CC) "Qualifying controlled group" has the same meaning as in 82184
section 5733.04 of the Revised Code.82185

        (DD) "Related member" has the same meaning as in section82186
5733.042 of the Revised Code.82187

       (EE) Any term used in this chapter that is not otherwise82188
defined in this section and that is not used in a comparable82189
context in the Internal Revenue Code and other statutes of the82190
United States relating to federal income taxes has the same82191
meaning as in section 5733.40 of the Revised Code(1) For the 82192
purposes of division (EE) of this section:82193

       (a) "Qualifying person" means any person other than a 82194
qualifying corporation.82195

       (b) "Qualifying corporation" means any person classified for 82196
federal income tax purposes as an association taxable as a 82197
corporation, except either of the following:82198

       (i) A corporation that has made an election under subchapter 82199
S, chapter one, subtitle A, of the Internal Revenue Code for its 82200
taxable year ending within, or on the last day of, the investor's 82201
taxable year;82202

       (ii) A subsidiary that is wholly owned by any corporation 82203
that has made an election under subchapter S, chapter one, 82204
subtitle A of the Internal Revenue Code for its taxable year 82205
ending within, or on the last day of, the investor's taxable year.82206

       (2) For the purposes of this chapter, unless expressly stated 82207
otherwise, no qualifying person indirectly owns any asset directly 82208
or indirectly owned by any qualifying corporation.82209

       (FF) For purposes of this chapter and Chapter 5751. of the 82210
Revised Code:82211

       (1) "Trust" does not include a qualified pre-income tax 82212
trust.82213

       (2) A "qualified pre-income tax trust" is any pre-income tax 82214
trust that makes a qualifying pre-income tax trust election as 82215
described in division (FF)(3) of this section.82216

       (3) A "qualifying pre-income tax trust election" is an 82217
election by a pre-income tax trust to be subject to the tax 82218
imposed by section 5751.02 of the Revised Code and to be subject 82219
to the tax imposed by section 5751.02 of the Revised Code all 82220
pass-through entities in which it owns, directly, indirectly, or 82221
constructively through related interests by common owners, five 82222
per cent or more of the ownership or equity interests. The trustee 82223
shall notify the tax commissioner in writing of the election on or 82224
before April 15, 2006. The election, if timely made, shall be 82225
effective on and after January 1, 2005, and shall apply for all 82226
tax periods and tax years until revoked by the trustee of the 82227
trust.82228

       (4) A "pre-income tax trust" is a trust that satisfies both 82229
of the following requirements:82230

       (a) The document or instrument creating the trust was 82231
executed by the grantor before January 1, 1972.82232

       (b) The trust became irrevocable upon the creation of the 82233
trust.82234

       Sec. 5747.012. This section applies for the purposes of82235
divisions (BB)(3) and (BB)(4)(a)(ii) of section 5747.01 of the82236
Revised Code.82237

        (A) As used in this section:82238

        (1)(a) Except as set forth in division (A)(1)(b) of this82239
section, "qualifying investment income" means the portion of a82240
qualifying investment pass-through entity's net income82241
attributable to transaction fees in connection with the82242
acquisition, ownership, or disposition of intangible property;82243
loan fees; financing fees; consent fees; waiver fees; application82244
fees; net management fees; dividend income; interest income; net82245
capital gains from the sale or exchange or other disposition of82246
intangible property; and all types and classifications of income82247
attributable to distributive shares of income from other82248
pass-through entities.82249

        (b)(i) Notwithstanding division (A)(1)(a) of this section,82250
"qualifying investment income" does not include any part of the82251
qualifying investment pass-through entity's net capital gain82252
which, after the application of section 5747.231 of the Revised82253
Code with respect to a trust, would also constitute a qualifying82254
trust amount.82255

        (ii) Notwithstanding division (A)(1)(a) of this section,82256
"qualifying investment income" does not include any part of the82257
qualifying investment pass-through entity's net income82258
attributable to the portion of a distributive share of income82259
directly or indirectly from another pass-through entity to the82260
extent such portion constitutes the other pass-through entity's82261
net capital gain which, after the application of section 5747.23182262
of the Revised Code with respect to a trust, would also constitute82263
a qualifying trust amount.82264

        (2) "Qualifying investment pass-through entity" means an82265
investment pass-through entity, as defined in section 5733.401 of82266
the Revised Code, subject to the following qualifications:82267

        (a) "Forty per cent" shall be substituted for "ninety per82268
cent" wherever "ninety per cent" appears in section 5733.401 of82269
the Revised Code.82270

        (b) The pass-through entity must have been formed or82271
organized as an entity prior to June 5, 2002, and must exist as a 82272
pass-through entity for all of the taxable year of the trust.82273

        (c) The qualifying section 5747.012 trust or related persons 82274
to the qualifying section 5747.012 trust must directly or82275
indirectly own at least five per cent of the equity of the82276
investment pass-through entity each day of the entity's fiscal or82277
calendar year ending within or with the last day of the qualifying82278
section 5747.012 trust's taxable year;82279

        (d) During the investment pass-through entity's calendar or82280
fiscal year ending within or with the last day of the qualifying82281
section 5747.012 trust's taxable year, related persons of or to82282
the qualifying section 5747.012 trust must, on each day of the82283
investment pass-through entity's year, own directly, or own82284
through equity investments in other pass-through entities, more82285
than sixty per cent of the equity of the investment pass-through82286
entity.82287

        (B) "Qualifying section 5747.012 trust" means a trust82288
satisfying one of the following:82289

        (1) The trust was created prior to, and was irrevocable on,82290
June 5, 2002; or82291

        (2) If the trust was created after June 4, 2002, or if the 82292
trust became irrevocable after June 4, 2002, then at least eighty 82293
per cent of the assets transferred to the trust must have been 82294
previously owned by related persons to the trust or by a trust 82295
created prior to June 5, 2002, under which the creator did not 82296
retain the power to change beneficiaries, amend the trust, or82297
revoke the trust. For purposes of division (B)(2) of this section, 82298
the power to substitute property of equal value shall not be 82299
considered to be a power to change beneficiaries, amend the trust, 82300
or revoke the trust.82301

        (C) For the purposes of this section, "related persons" means 82302
the family of a qualifying individual beneficiary, as defined in82303
division (A)(5) of section 5747.011 of the Revised Code. For the82304
purposes of this division, "family" has the same meaning as in82305
division (A)(6) of section 5747.011 of the Revised Code.82306

        (D) For the purposes of applying divisions (A)(2)(c),82307
(A)(2)(d), and (B)(2) of this section, the related persons or the82308
qualifying section 5747.012 trust, as the case may be, shall be82309
deemed to own the equity of the investment pass-through entity82310
after the application of division (B) of section 5747.011 of the82311
Revised Code.82312

        (E) "Irrevocable" has the same meaning as in division82313
(I)(3)(b) of section 5747.01 of the Revised Code.82314

        (F) Nothing in this section requires any item of income,82315
gain, or loss not satisfying the definition of qualifying82316
investment income to be treated as modified nonbusiness income.82317
Any item of income, gain, or loss that is not qualifying82318
investment income is modified business income, modified82319
nonbusiness income, or a qualifying trust amount, as the case may82320
be.82321

       Sec. 5747.02.  (A) For the purpose of providing revenue for82322
the support of schools and local government functions, to provide82323
relief to property taxpayers, to provide revenue for the general82324
revenue fund, and to meet the expenses of administering the tax82325
levied by this chapter, there is hereby levied on every82326
individual, trust, and estate residing in or earning or receiving82327
income in this state, on every individual, trust, and estate82328
earning or receiving lottery winnings, prizes, or awards pursuant82329
to Chapter 3770. of the Revised Code, and on every individual,82330
trust, and estate otherwise having nexus with or in this state82331
under the Constitution of the United States, an annual tax82332
measured in the case of individuals by Ohio adjusted gross income82333
less an exemption for the taxpayer, the taxpayer's spouse, and82334
each dependent as provided in section 5747.025 of the Revised82335
Code; measured in the case of trusts by modified Ohio taxable82336
income under division (D) of this section; and measured in the82337
case of estates by Ohio taxable income. The tax imposed by this82338
section on the balance thus obtained is hereby levied as follows:82339

       (1) For taxable years beginning in 2004:82340

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 82341
OR 82342
MODIFIED OHIO 82343
TAXABLE INCOME (TRUSTS) 82344
OR 82345
OHIO TAXABLE INCOME (ESTATES) TAX 82346

$5,000 or less .743% 82347
More than $5,000 but not more than $10,000 $37.15 plus 1.486% of the amount in excess of $5,000 82348
More than $10,000 but not more than $15,000 $111.45 plus 2.972% of the amount in excess of $10,000 82349
More than $15,000 but not more than $20,000 $260.05 plus 3.715% of the amount in excess of $15,000 82350
More than $20,000 but not more than $40,000 $445.80 plus 4.457% of the amount in excess of $20,000 82351
More than $40,000 but not more than $80,000 $1,337.20 plus 5.201% of the amount in excess of $40,000 82352
More than $80,000 but not more than $100,000 $3,417.60 plus 5.943% of the amount in excess of $80,000 82353
More than $100,000 but not more than $200,000 $4,606.20 plus 6.9% of the amount in excess of $100,000 82354
More than $200,000 $11,506.20 plus 7.5% of the amount in excess of $200,000 82355

       (2) For taxable years beginning in 2005:82356

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 82357
OR 82358
MODIFIED OHIO 82359
TAXABLE INCOME (TRUSTS) 82360
OR 82361
OHIO TAXABLE INCOME (ESTATES) TAX 82362

$5,000 or less .712% 82363
More than $5,000 but not more than $10,000 $35.60 plus 1.424% of the amount in excess of $5,000 82364
More than $10,000 but not more than $15,000 $106.80 plus 2.847% of the amount in excess of $10,000 82365
More than $15,000 but not more than $20,000 $249.15 plus 3.559% of the amount in excess of $15,000 82366
More than $20,000 but not more than $40,000 $427.10 plus 4.27% of the amount in excess of $20,000 82367
More than $40,000 but not more than $80,000 $1,281.10 plus 4.983% of the amount in excess of $40,000 82368
More than $80,000 but not more than $100,000 $3,274.30 plus 5.693% of the amount in excess of $80,000 82369
More than $100,000 but not more than $200,000 $4,412.90 plus 6.61% of the amount in excess of $100,000 82370
More than $200,000 $11,022.90 plus 7.185% of the amount in excess of $200,000 82371

       (3) For taxable years beginning in 2006:82372

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 82373
OR 82374
MODIFIED OHIO 82375
TAXABLE INCOME (TRUSTS) 82376
OR 82377
OHIO TAXABLE INCOME (ESTATES) TAX 82378

$5,000 or less .681% 82379
More than $5,000 but not more than $10,000 $34.05 plus 1.361% of the amount in excess of $5,000 82380
More than $10,000 but not more than $15,000 $102.10 plus 2.722% of the amount in excess of $10,000 82381
More than $15,000 but not more than $20,000 $238.20 plus 3.403% of the amount in excess of $15,000 82382
More than $20,000 but not more than $40,000 $408.35 plus 4.083% of the amount in excess of $20,000 82383
More than $40,000 but not more than $80,000 $1,224.95 plus 4.764% of the amount in excess of $40,000 82384
More than $80,000 but not more than $100,000 $3,130.55 plus 5.444% of the amount in excess of $80,000 82385
More than $100,000 but not more than $200,000 $4,219.35 plus 6.32% of the amount in excess of $100,000 82386
More than $200,000 $10,539.35 plus 6.87% of the amount in excess of $200,000 82387

       (4) For taxable years beginning in 2007:82388

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 82389
OR 82390
MODIFIED OHIO 82391
TAXABLE INCOME (TRUSTS) 82392
OR 82393
OHIO TAXABLE INCOME (ESTATES) TAX 82394

$5,000 or less .649% 82395
More than $5,000 but not more than $10,000 $32.45 plus 1.299% of the amount in excess of $5,000 82396
More than $10,000 but not more than $15,000 $97.40 plus 2.598% of the amount in excess of $10,000 82397
More than $15,000 but not more than $20,000 $227.30 plus 3.247% of the amount in excess of $15,000 82398
More than $20,000 but not more than $40,000 $389.65 plus 3.895% of the amount in excess of $20,000 82399
More than $40,000 but not more than $80,000 $1,168.65 plus 4.546% of the amount in excess of $40,000 82400
More than $80,000 but not more than $100,000 $2,987.05 plus 5.194% of the amount in excess of $80,000 82401
More than $100,000 but not more than $200,000 $4,025.85 plus 6.031% of the amount in excess of $100,000 82402
More than $200,000 $10,056.85 plus 6.555% of the amount in excess of $200,000 82403

       (5) For taxable years beginning in 2008:82404

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 82405
OR 82406
MODIFIED OHIO 82407
TAXABLE INCOME (TRUSTS) 82408
OR 82409
OHIO TAXABLE INCOME (ESTATES) TAX 82410

$5,000 or less .618% 82411
More than $5,000 but not more than $10,000 $30.90 plus 1.236% of the amount in excess of $5,000 82412
More than $10,000 but not more than $15,000 $92.70 plus 2.473% of the amount in excess of $10,000 82413
More than $15,000 but not more than $20,000 $216.35 plus 3.091% of the amount in excess of $15,000 82414
More than $20,000 but not more than $40,000 $370.90 plus 3.708% of the amount in excess of $20,000 82415
More than $40,000 but not more than $80,000 $1,112.50 plus 4.327% of the amount in excess of $40,000 82416
More than $80,000 but not more than $100,000 $2,843.30 plus 4.945% of the amount in excess of $80,000 82417
More than $100,000 but not more than $200,000 $3,832.30 plus 5.741% of the amount in excess of $100,000 82418
More than $200,000 $9,573.30 plus 6.24% of the amount in excess of $200,000 82419

       (6) For taxable years beginning in 2009 or thereafter:82420

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 82421
OR 82422
MODIFIED OHIO 82423
TAXABLE INCOME (TRUSTS) 82424
OR 82425
OHIO TAXABLE INCOME (ESTATES) TAX 82426

$5,000 or less .587% 82427
More than $5,000 but not more than $10,000 $29.35 plus 1.174% of the amount in excess of $5,000 82428
More than $10,000 but not more than $15,000 $88.05 plus 2.348% of the amount in excess of $10,000 82429
More than $15,000 but not more than $20,000 $205.45 plus 2.935% of the amount in excess of $15,000 82430
More than $20,000 but not more than $40,000 $352.20 plus 3.521% of the amount in excess of $20,000 82431
More than $40,000 but not more than $80,000 $1,056.40 plus 4.109% of the amount in excess of $40,000 82432
More than $80,000 but not more than $100,000 $2,700.00 plus 4.695% of the amount in excess of $80,000 82433
More than $100,000 but not more than $200,000 $3,639.00 plus 5.451% of the amount in excess of $100,000 82434
More than $200,000 $9,090.00 plus 5.925% of the amount in excess of $200,000 82435

       In July of each year, beginning in 20052010, the tax82436
commissioner shall adjust the income amounts prescribed in this82437
division by multiplying the percentage increase in the gross82438
domestic product deflator computed that year under section82439
5747.025 of the Revised Code by each of the income amounts82440
resulting from the adjustment under this division in the preceding82441
year, adding the resulting product to the corresponding income82442
amount resulting from the adjustment in the preceding year, and82443
rounding the resulting sum to the nearest multiple of fifty82444
dollars. The tax commissioner also shall recompute each of the tax 82445
dollar amounts to the extent necessary to reflect the adjustment 82446
of the income amounts. The rates of taxation shall not be 82447
adjusted.82448

       The adjusted amounts apply to taxable years beginning in the82449
calendar year in which the adjustments are made. The tax82450
commissioner shall not make such adjustments in any year in which82451
the amount resulting from the adjustment would be less than the82452
amount resulting from the adjustment in the preceding year.82453

       (B) If the director of budget and management makes a82454
certification to the tax commissioner under division (B) of82455
section 131.44 of the Revised Code, the amount of tax as82456
determined under division (A) of this section shall be reduced by82457
the percentage prescribed in that certification for taxable years82458
beginning in the calendar year in which that certification is82459
made.82460

       (C) The levy of this tax on income does not prevent a82461
municipal corporation, a joint economic development zone created82462
under section 715.691, or a joint economic development district82463
created under section 715.70 or 715.71 or sections 715.72 to82464
715.81 of the Revised Code from levying a tax on income.82465

       (D) This division applies only to taxable years of a trust 82466
beginning in 2002, 2003, or 2004thereafter.82467

       (1) The tax imposed by this section on a trust shall be82468
computed by multiplying the Ohio modified taxable income of the82469
trust by the rates prescribed by division (A) of this section.82470

       (2) A credit is allowed against the tax computed under82471
division (D) of this section equal to the lesser of (1) the tax82472
paid to another state or the District of Columbia on the trust's82473
modified nonbusiness income, other than the portion of the trust's 82474
nonbusiness income that is qualifying investment income as defined 82475
in section 5747.012 of the Revised Code, or (2) the effective tax 82476
rate, based on modified Ohio taxable income, multiplied by the82477
trust's modified nonbusiness income other than the portion of 82478
trust's nonbusiness income that is qualifying investment income. 82479
The credit applies before any other applicable credits.82480

       (3) The credits enumerated in divisions (A)(1) to (13) of82481
section 5747.98 of the Revised Code do not apply to a trust82482
subject to this division. Any credits enumerated in other82483
divisions of section 5747.98 of the Revised Code apply to a trust82484
subject to this division. To the extent that the trust distributes 82485
income for the taxable year for which a credit is available to the 82486
trust, the credit shall be shared by the trust and its 82487
beneficiaries. The tax commissioner and the trust shall be guided 82488
by applicable regulations of the United States treasury regarding 82489
the sharing of credits.82490

       (E) For the purposes of this section, "trust" means any trust 82491
described in Subchapter J of Chapter 1 of the Internal Revenue 82492
Code, excluding trusts that are not irrevocable as defined in 82493
division (I)(3)(b) of section 5747.01 of the Revised Code and that 82494
have no modified Ohio taxable income for the taxable year, 82495
charitable remainder trusts, qualified funeral trusts and preneed 82496
funeral contract trusts established pursuant to section 1111.19 of 82497
the Revised Code that are not qualified funeral trusts, endowment 82498
and perpetual care trusts, qualified settlement trusts and funds, 82499
designated settlement trusts and funds, and trusts exempted from 82500
taxation under section 501(a) of the Internal Revenue Code.82501

       Sec. 5747.05.  As used in this section, "income tax" includes82502
both a tax on net income and a tax measured by net income.82503

       The following credits shall be allowed against the income tax82504
imposed by section 5747.02 of the Revised Code on individuals and82505
estates:82506

       (A)(1) The amount of tax otherwise due under section 5747.0282507
of the Revised Code on such portion of the adjusted gross income82508
of any nonresident taxpayer that is not allocable to this state82509
pursuant to sections 5747.20 to 5747.23 of the Revised Code;82510

       (2) The credit provided under this division shall not exceed82511
the portion of the total tax due under section 5747.02 of the82512
Revised Code that the amount of the nonresident taxpayer's82513
adjusted gross income not allocated to this state pursuant to82514
sections 5747.20 to 5747.23 of the Revised Code bears to the total82515
adjusted gross income of the nonresident taxpayer derived from all82516
sources everywhere.82517

       (3) The tax commissioner may enter into an agreement with the 82518
taxing authorities of any state or of the District of Columbia82519
that imposes an income tax to provide that compensation paid in82520
this state to a nonresident taxpayer shall not be subject to the82521
tax levied in section 5747.02 of the Revised Code so long as82522
compensation paid in such other state or in the District of82523
Columbia to a resident taxpayer shall likewise not be subject to82524
the income tax of such other state or of the District of Columbia.82525

       (B) The lesser of division (B)(1) or (2) of this section:82526

       (1) The amount of tax otherwise due under section 5747.02 of82527
the Revised Code on such portion of the adjusted gross income of a82528
resident taxpayer that in another state or in the District of82529
Columbia is subjected to an income tax. The credit provided under82530
division (B)(1) of this section shall not exceed the portion of82531
the total tax due under section 5747.02 of the Revised Code that82532
the amount of the resident taxpayer's adjusted gross income82533
subjected to an income tax in the other state or in the District82534
of Columbia bears to the total adjusted gross income of the82535
resident taxpayer derived from all sources everywhere.82536

       (2) The amount of income tax liability to another state or82537
the District of Columbia on the portion of the adjusted gross82538
income of a resident taxpayer that in another state or in the82539
District of Columbia is subjected to an income tax. The credit82540
provided under division (B)(2) of this section shall not exceed82541
the amount of tax otherwise due under section 5747.02 of the82542
Revised Code.82543

       (3) If the credit provided under division (B) of this section 82544
is affected by a change in either the portion of adjusted gross 82545
income of a resident taxpayer subjected to an income tax in82546
another state or the District of Columbia or the amount of income82547
tax liability that has been paid to another state or the District82548
of Columbia, the taxpayer shall report the change to the tax82549
commissioner within sixty days of the change in such form as the82550
commissioner requires.82551

       (a) In the case of an underpayment, the report shall be82552
accompanied by payment of any additional tax due as a result of82553
the reduction in credit together with interest on the additional82554
tax and is a return subject to assessment under section 5747.13 of82555
the Revised Code solely for the purpose of assessing any82556
additional tax due under this division, together with any82557
applicable penalty and interest. It shall not reopen the82558
computation of the taxpayer's tax liability under this chapter82559
from a previously filed return no longer subject to assessment82560
except to the extent that such liability is affected by an82561
adjustment to the credit allowed by division (B) of this section.82562

       (b) In the case of an overpayment, an application for refund82563
may be filed under this division within the sixty day period82564
prescribed for filing the report even if it is beyond the period82565
prescribed in section 5747.11 of the Revised Code if it otherwise82566
conforms to the requirements of such section. An application filed 82567
under this division shall only claim refund of overpayments82568
resulting from an adjustment to the credit allowed by division (B)82569
of this section unless it is also filed within the time prescribed82570
in section 5747.11 of the Revised Code. It shall not reopen the82571
computation of the taxpayer's tax liability except to the extent82572
that such liability is affected by an adjustment to the credit82573
allowed by division (B) of this section.82574

       (4) No credit shall be allowed under division (B) of this 82575
section to the extent that for any taxable year the taxpayer has 82576
directly or indirectly deducted, or was required to directly or 82577
indirectly deduct, the amount of income tax liability to another 82578
state or the District of Columbia in computing federal adjusted 82579
gross income.82580

       (C) For a taxpayer sixty-five years of age or older during82581
the taxable year, a credit for such year equal to fifty dollars82582
for each return required to be filed under section 5747.08 of the82583
Revised Code.82584

       (D) A taxpayer sixty-five years of age or older during the82585
taxable year who has received a lump-sum distribution from a82586
pension, retirement, or profit-sharing plan in the taxable year82587
may elect to receive a credit under this division in lieu of the82588
credit to which the taxpayer is entitled under division (C) of82589
this section. A taxpayer making such election shall receive a82590
credit for the taxable year equal to fifty dollars times the82591
taxpayer's expected remaining life as shown by annuity tables82592
issued under the provisions of the Internal Revenue Code and in82593
effect for the calendar year which includes the last day of the82594
taxable year. A taxpayer making an election under this division is 82595
not entitled to the credit authorized under division (C) of this 82596
section in subsequent taxable years except that if such election 82597
was made prior to July 1, 1983, the taxpayer is entitled to 82598
one-half the credit authorized under such division in subsequent 82599
taxable years but may not make another election under this 82600
division.82601

       (E) A taxpayer who is not sixty-five years of age or older82602
during the taxable year who has received a lump-sum distribution82603
from a pension, retirement, or profit-sharing plan in a taxable82604
year ending on or before July 31, 1991, may elect to take a credit82605
against the tax otherwise due under this chapter for such year82606
equal to fifty dollars times the expected remaining life of a82607
taxpayer sixty-five years of age as shown by annuity tables issued82608
under the provisions of the Internal Revenue Code and in effect82609
for the calendar year which includes the last day of the taxable82610
year. A taxpayer making an election under this division is not82611
entitled to a credit under division (C) or (D) of this section in82612
any subsequent year except that if such election was made prior to82613
July 1, 1983, the taxpayer is entitled to one-half the credit82614
authorized under division (C) of this section in subsequent years82615
but may not make another election under this division. No taxpayer 82616
may make an election under this division for a taxable year ending 82617
on or after August 1, 1991.82618

       (F) A taxpayer making an election under either division (D)82619
or (E) of this section may make only one such election in the82620
taxpayer's lifetime.82621

       (G)(1) On a joint return filed by a husband and wife, each of 82622
whom had adjusted gross income of at least five hundred dollars, 82623
exclusive of interest, dividends and distributions, royalties, 82624
rent, and capital gains, a credit equal to the percentage shown in 82625
the table contained in this division of the amount of tax due 82626
after allowing for any other credit that precedes the credit under 82627
this division in the order required under section 5747.98 of the 82628
Revised Code.82629

       (2) The credit to which a taxpayer is entitled under this82630
division in any taxable year is the percentage shown in column B82631
that corresponds with the taxpayer's adjusted gross income, less82632
exemptions for the taxable year:82633

A. B. 82634

IF THE ADJUSTED GROSS INCOME, LESS EXEMPTIONS, FOR THE TAX YEAR IS: THE CREDIT FOR THE TAXABLE YEAR IS: 82635

$25,000 or less 20% 82636
More than $25,000 but not more than $50,000 15% 82637
More than $50,000 but not more than $75,000 10% 82638
More than $75,000 5% 82639

       (3) The credit allowed under this division shall not exceed82640
six hundred fifty dollars in any taxable year.82641

       (H) No claim for credit under this section shall be allowed82642
unless the claimant furnishes such supporting information as the82643
tax commissioner prescribes by rules. Each credit under this82644
section shall be claimed in the order required under section82645
5747.98 of the Revised Code.82646

       (I) An individual who is a resident for part of a taxable82647
year and a nonresident for the remainder of the taxable year is82648
allowed the credits under divisions (A) and (B) of this section in82649
accordance with rules prescribed by the tax commissioner. In no82650
event shall the same income be subject to both credits.82651

       (J) The credit allowed under division (A) of this section82652
shall be calculated based upon the amount of tax due under section82653
5747.02 of the Revised Code after subtracting any other credits82654
that precede the credit under that division in the order required82655
under section 5747.98 of the Revised Code. The credit allowed82656
under division (B) of this section shall be calculated based upon82657
the amount of tax due under section 5747.02 of the Revised Code82658
after subtracting any other credits that precede the credit under82659
that division in the order required under section 5747.98 of the82660
Revised Code.82661

       (K) No credit shall be allowed under division (B) of this82662
section unless the taxpayer furnishes such proof as the tax82663
commissioner shall require that the income tax liability has been82664
paid to another state or the District of Columbia.82665

       (L) No credit shall be allowed under division (B) of this82666
section for compensation that is not subject to the income tax of82667
another state or the District of Columbia as the result of an82668
agreement entered into by the tax commissioner under division82669
(A)(3) of this section.82670

       Sec. 5747.056. For taxable years beginning in 2005 or 82671
thereafter, a credit shall be allowed against the tax imposed by 82672
section 5747.02 of the Revised Code for an individual whose Ohio 82673
adjusted gross income less exemptions is ten thousand dollars or 82674
less. For taxable years beginning in 2005, the credit shall equal 82675
one hundred seven dollars. For taxable years beginning in 2006, 82676
the credit shall equal one hundred two dollars. For taxable years 82677
beginning in 2007, the credit shall equal ninety-eight dollars. 82678
For taxable years beginning in 2008, the credit shall equal 82679
ninety-three dollars. For taxable years beginning in 2009 or 82680
thereafter, the credit shall equal eighty-eight dollars. The 82681
credit shall be claimed in the order required under section 82682
5747.98 of the Revised Code.82683

       Sec. 5747.08.  An annual return with respect to the tax82684
imposed by section 5747.02 of the Revised Code and each tax82685
imposed under Chapter 5748. of the Revised Code shall be made by82686
every taxpayer for any taxable year for which the taxpayer is82687
liable for the tax imposed by that section or under that chapter,82688
unless the total credits allowed under divisions (E), (F), and (G)82689
of section 5747.05 of the Revised Code for the year are equal to82690
or exceed the tax imposed by section 5747.02 of the Revised Code,82691
in which case no return shall be required unless the taxpayer is82692
liable for a tax imposed pursuant to Chapter 5748. of the Revised82693
Code.82694

       (A) If an individual is deceased, any return or notice82695
required of that individual under this chapter shall be made and82696
filed by that decedent's executor, administrator, or other person82697
charged with the property of that decedent.82698

       (B) If an individual is unable to make a return or notice82699
required by this chapter, the return or notice required of that82700
individual shall be made and filed by the individual's duly82701
authorized agent, guardian, conservator, fiduciary, or other82702
person charged with the care of the person or property of that82703
individual.82704

       (C) Returns or notices required of an estate or a trust shall 82705
be made and filed by the fiduciary of the estate or trust.82706

       (D)(1)(a) Except as otherwise provided in division (D)(1)(b)82707
of this section, any pass-through entity may file a single return82708
on behalf of one or more of the entity's investors other than an82709
investor that is a person subject to the tax imposed under section82710
5733.06 of the Revised Code. The single return shall set forth the 82711
name, address, and social security number or other identifying82712
number of each of those pass-through entity investors and shall82713
indicate the distributive share of each of those pass-through82714
entity investor's income taxable in this state in accordance with82715
sections 5747.20 to 5747.231 of the Revised Code. Such82716
pass-through entity investors for whom the pass-through entity82717
elects to file a single return are not entitled to the exemption82718
or credit provided for by sections 5747.02 and 5747.022 of the82719
Revised Code; shall calculate the tax before business credits at82720
the highest rate of tax set forth in section 5747.02 of the82721
Revised Code for the taxable year for which the return is filed;82722
and are entitled to only their distributive share of the business82723
credits as defined in division (D)(2) of this section. A single82724
check drawn by the pass-through entity shall accompany the return82725
in full payment of the tax due, as shown on the single return, for82726
such investors, other than investors who are persons subject to82727
the tax imposed under section 5733.06 of the Revised Code.82728

       (b)(i) A pass-through entity shall not include in such a82729
single return any investor that is a trust to the extent that any82730
direct or indirect current, future, or contingent beneficiary of82731
the trust is a person subject to the tax imposed under section82732
5733.06 of the Revised Code.82733

       (ii) A pass-through entity shall not include in such a single 82734
return any investor that is itself a pass-through entity to the 82735
extent that any direct or indirect investor in the second82736
pass-through entity is a person subject to the tax imposed under82737
section 5733.06 of the Revised Code.82738

       (c) Nothing in division (D) of this section precludes the tax 82739
commissioner from requiring such investors to file the return and 82740
make the payment of taxes and related interest, penalty, and82741
interest penalty required by this section or section 5747.02,82742
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)82743
of this section shall be construed to provide to such an investor82744
or pass-through entity any additional deduction or credit, other82745
than the credit provided by division (J) of this section, solely82746
on account of the entity's filing a return in accordance with this82747
section. Such a pass-through entity also shall make the filing and 82748
payment of estimated taxes on behalf of the pass-through entity82749
investors other than an investor that is a person subject to the 82750
tax imposed under section 5733.06 of the Revised Code.82751

       (2) For the purposes of this section, "business credits"82752
means the credits listed in section 5747.98 of the Revised Code82753
excluding the following credits:82754

       (a) The retirement credit under division (B) of section82755
5747.055 of the Revised Code;82756

       (b) The senior citizen credit under division (C) of section82757
5747.05 of the Revised Code;82758

       (c) The lump sum distribution credit under division (D) of82759
section 5747.05 of the Revised Code;82760

       (d) The dependent care credit under section 5747.054 of the82761
Revised Code;82762

       (e) The lump sum retirement income credit under division (C)82763
of section 5747.055 of the Revised Code;82764

       (f) The lump sum retirement income credit under division (D)82765
of section 5747.055 of the Revised Code;82766

       (g) The lump sum retirement income credit under division (E)82767
of section 5747.055 of the Revised Code;82768

       (h) The credit for displaced workers who pay for job training 82769
under section 5747.27 of the Revised Code;82770

       (i) The twenty-dollar personal exemption credit under section 82771
5747.022 of the Revised Code;82772

       (j) The joint filing credit under division (G) of section82773
5747.05 of the Revised Code;82774

       (k) The nonresident credit under division (A) of section82775
5747.05 of the Revised Code;82776

       (l) The credit for a resident's out-of-state income under82777
division (B) of section 5747.05 of the Revised Code;82778

       (m) The low-income credit under section 5747.056 of the 82779
Revised Code.82780

       (3) The election provided for under division (D) of this82781
section applies only to the taxable year for which the election is82782
made by the pass-through entity. Unless the tax commissioner82783
provides otherwise, this election, once made, is binding and82784
irrevocable for the taxable year for which the election is made.82785
Nothing in this division shall be construed to provide for any82786
deduction or credit that would not be allowable if a nonresident82787
pass-through entity investor were to file an annual return.82788

       (4) If a pass-through entity makes the election provided for82789
under division (D) of this section, the pass-through entity shall82790
be liable for any additional taxes, interest, interest penalty, or82791
penalties imposed by this chapter if the tax commissioner finds 82792
that the single return does not reflect the correct tax due by the82793
pass-through entity investors covered by that return. Nothing in82794
this division shall be construed to limit or alter the liability,82795
if any, imposed on pass-through entity investors for unpaid or82796
underpaid taxes, interest, interest penalty, or penalties as a82797
result of the pass-through entity's making the election provided82798
for under division (D) of this section. For the purposes of82799
division (D) of this section, "correct tax due" means the tax that82800
would have been paid by the pass-through entity had the single82801
return been filed in a manner reflecting the tax commissioner's82802
findings. Nothing in division (D) of this section shall be82803
construed to make or hold a pass-through entity liable for tax82804
attributable to a pass-through entity investor's income from a82805
source other than the pass-through entity electing to file the82806
single return.82807

       (E) If a husband and wife file a joint federal income tax82808
return for a taxable year, they shall file a joint return under82809
this section for that taxable year, and their liabilities are82810
joint and several, but, if the federal income tax liability of82811
either spouse is determined on a separate federal income tax82812
return, they shall file separate returns under this section.82813

       If either spouse is not required to file a federal income tax82814
return and either or both are required to file a return pursuant82815
to this chapter, they may elect to file separate or joint returns,82816
and, pursuant to that election, their liabilities are separate or82817
joint and several. If a husband and wife file separate returns82818
pursuant to this chapter, each must claim the taxpayer's own82819
exemption, but not both, as authorized under section 5747.02 of82820
the Revised Code on the taxpayer's own return.82821

       (F) Each return or notice required to be filed under this82822
section shall contain the signature of the taxpayer or the82823
taxpayer's duly authorized agent and of the person who prepared82824
the return for the taxpayer, and shall include the taxpayer's82825
social security number. Each return shall be verified by a82826
declaration under the penalties of perjury. The tax commissioner82827
shall prescribe the form that the signature and declaration shall82828
take.82829

       (G) Each return or notice required to be filed under this82830
section shall be made and filed as required by section 5747.04 of82831
the Revised Code, on or before the fifteenth day of April of each82832
year, on forms that the tax commissioner shall prescribe, together82833
with remittance made payable to the treasurer of state in the82834
combined amount of the state and all school district income taxes82835
shown to be due on the form, unless the combined amount shown to82836
be due is one dollar or less, in which case that amount need not82837
be remitted.82838

       Upon good cause shown, the tax commissioner may extend the82839
period for filing any notice or return required to be filed under82840
this section and may adopt rules relating to extensions. If the82841
extension results in an extension of time for the payment of any82842
state or school district income tax liability with respect to82843
which the return is filed, the taxpayer shall pay at the time the82844
tax liability is paid an amount of interest computed at the rate82845
per annum prescribed by section 5703.47 of the Revised Code on82846
that liability from the time that payment is due without extension82847
to the time of actual payment. Except as provided in section82848
5747.132 of the Revised Code, in addition to all other interest82849
charges and penalties, all taxes imposed under this chapter or82850
Chapter 5748. of the Revised Code and remaining unpaid after they82851
become due, except combined amounts due of one dollar or less,82852
bear interest at the rate per annum prescribed by section 5703.4782853
of the Revised Code until paid or until the day an assessment is82854
issued under section 5747.13 of the Revised Code, whichever occurs82855
first.82856

       If the tax commissioner considers it necessary in order to 82857
ensure the payment of the tax imposed by section 5747.02 of the 82858
Revised Code or any tax imposed under Chapter 5748. of the Revised 82859
Code, the tax commissioner may require returns and payments to be 82860
made otherwise than as provided in this section.82861

       To the extent that any provision in this division conflicts 82862
with any provision in section 5747.026 of the Revised Code, the 82863
provision in that section prevails.82864

       (H) If any report, claim, statement, or other document82865
required to be filed, or any payment required to be made, within a82866
prescribed period or on or before a prescribed date under this82867
chapter is delivered after that period or that date by United82868
States mail to the agency, officer, or office with which the82869
report, claim, statement, or other document is required to be82870
filed, or to which the payment is required to be made, the date of82871
the postmark stamped on the cover in which the report, claim,82872
statement, or other document, or payment is mailed shall be deemed82873
to be the date of delivery or the date of payment.82874

       If a payment is required to be made by electronic funds82875
transfer pursuant to section 5747.072 of the Revised Code, the82876
payment is considered to be made when the payment is received by82877
the treasurer of state or credited to an account designated by the82878
treasurer of state for the receipt of tax payments.82879

       "The date of the postmark" means, in the event there is more82880
than one date on the cover, the earliest date imprinted on the82881
cover by the United States postal service.82882

       (I) The amounts withheld by the employer pursuant to section82883
5747.06 of the Revised Code shall be allowed to the recipient of82884
the compensation as credits against payment of the appropriate82885
taxes imposed on the recipient by section 5747.02 and under82886
Chapter 5748. of the Revised Code.82887

       (J) If, in accordance with division (D) of this section, a82888
pass-through entity elects to file a single return and if any82889
investor is required to file the return and make the payment of82890
taxes required by this chapter on account of the investor's other82891
income that is not included in a single return filed by a82892
pass-through entity, the investor is entitled to a refundable82893
credit equal to the investor's proportionate share of the tax paid82894
by the pass-through entity on behalf of the investor. The investor 82895
shall claim the credit for the investor's taxable year in which or 82896
with which ends the taxable year of the pass-through entity. 82897
Nothing in this chapter shall be construed to allow any credit 82898
provided in this chapter to be claimed more than once. For the 82899
purposes of computing any interest, penalty, or interest penalty, 82900
the investor shall be deemed to have paid the refundable credit 82901
provided by this division on the day that the pass-through entity 82902
paid the estimated tax or the tax giving rise to the credit.82903

       Sec. 5747.113. (A) Any taxpayer claiming a refund under82904
section 5747.11 of the Revised Code for taxable years ending on or 82905
after October 14, 1983, who wishes to contribute any part of his82906
the taxpayer's refund to the natural areas and preserves fund 82907
created in section 1517.11 of the Revised Code, the nongame and 82908
endangered wildlife fund created in section 1531.26 of the Revised 82909
Code, the military injury relief fund created in section 5101.98 82910
of the Revised Code, or bothall of those funds, may designate on82911
histhe taxpayer's income tax return the amount that hethe 82912
taxpayer wishes to contribute to the fund or funds. A designated82913
contribution is irrevocable upon the filing of the return and82914
shall be made in the full amount designated if the refund found82915
due the taxpayer upon the initial processing of histhe taxpayer's82916
return, after any deductions including those required by section 82917
5747.12 of the Revised Code, is greater than or equal to the82918
designated contribution. If the refund due as initially determined 82919
is less than the designated contribution, the contribution shall 82920
be made in the full amount of the refund. The tax commissioner 82921
shall subtract the amount of the contribution from the amount of 82922
the refund initially found due the taxpayer and shall certify the82923
difference to the director of budget and management and treasurer82924
of state for payment to the taxpayer in accordance with section82925
5747.11 of the Revised Code. For the purpose of any subsequent82926
determination of the taxpayer's net tax payment, the contribution82927
shall be considered a part of the refund paid to the taxpayer.82928

       (B) The tax commissioner shall provide a space on the income82929
tax return form in which a taxpayer may indicate that hethe82930
taxpayer wishes to make a donation in accordance with this 82931
section. The tax commissioner shall also print in the instructions 82932
accompanying the income tax return form a description of the 82933
purposes for which the natural areas and preserves fund and, the 82934
nongame and endangered wildlife fund, and the military injury 82935
relief fund were created and the use of moneys from the income tax 82936
refund contribution system established in this section. No person 82937
shall designate on histhe person's income tax return any part of 82938
a refund claimed under section 5747.11 of the Revised Code as a 82939
contribution to any fund other than the natural areas and 82940
preserves fund, the nongame and endangered wildlife fund, the 82941
military injury relief fund or bothall of those funds.82942

       (C) The money collected under the income tax refund82943
contribution system established in this section shall be deposited 82944
by the tax commissioner into the natural areas and preserves fund 82945
and, the nongame and endangered wildlife fund, and the military 82946
injury relief fund in the amounts designated on the tax returns.82947

       (D) No later than the thirtieth day of September each year, 82948
the tax commissioner shall determine the total amount contributed 82949
to each fund under this section during the preceding eight months,82950
any adjustments to prior months, and the cost to the department of82951
taxation of administering the income tax refund contribution82952
system during that eight-month period. The commissioner shall make 82953
an additional determination no later than the thirty-first day of 82954
January of each year of the total amount contributed to each fund 82955
under this section during the preceding four calendar months, any 82956
adjustments to prior years made during that four-month period, and 82957
the cost to the department of taxation of administering the income 82958
tax contribution system during that period. The cost of 82959
administering the income tax contribution system shall be 82960
certified by the tax commissioner to the director of budget and 82961
management, who shall transfer an amount equal to one-half82962
one-third of such administrative costs from the natural areas and82963
preserves fund and one-half, one-third of such costs from the 82964
nongame and endangered wildlife fund, and one-third of such costs 82965
from the military injury relief fund to the litter control and 82966
natural resource tax administration fund, which is hereby created,82967
provided that the moneys that the department receives to pay the82968
cost of administering the income tax refund contribution system in82969
any year shall not exceed two and one-half per cent of the total82970
amount contributed under that system during that year.82971

       (E)(1) The director of natural resources, in January of every82972
odd-numbered year, shall report to the general assembly on the82973
effectiveness of the income tax refund contribution system as it 82974
pertains to the natural areas and preserves fund and the nongame 82975
and endangered wildlife fund. The report shall include the amount 82976
of money contributed to the natural areas and preserves fund and 82977
the nongame and endangered wildlife fundeach fund in each of the 82978
previous five years, the amount of money contributed directly to 82979
each fund in addition to or independently of the income tax refund 82980
contribution system in each of the previous five years, and the 82981
purposes for which the money was expended.82982

       (2) The director of job and family services, in January of 82983
every odd-numbered year, shall report to the general assembly on 82984
the effectiveness of the income tax refund contribution system as 82985
it pertains to the military injury relief fund. The report shall 82986
include the amount of money contributed to the fund in each of the 82987
previous five years, the amount of money contributed directly to 82988
the fund in addition to or independently of the income tax refund 82989
contribution system in each of the previous five years, and the 82990
purposes for which the money was expended.82991

       Sec. 5747.212. (A) This section applies solely for the 82992
purpose of computing the credit allowed under division (A) of 82993
section 5747.05 of the Revised Code, computing income taxable in 82994
this state under division (D) of section 5747.08 of the Revised 82995
Code, and computing the credit allowed under section 5747.057 of 82996
the Revised Code.82997

       (B) A pass-through entity investor that ownstaxpayer, 82998
directly or indirectly, owning at any time during the three-year 82999
period ending on the last day of the taxpayer's taxable year at 83000
least twenty per cent of the pass-throughequity voting rights of 83001
a section 5747.212 entity at any time during the current taxable 83002
year or either of the two preceding taxable years shall apportion 83003
any income, including gain or loss, realized from theeach sale, 83004
exchange, or other disposition of a debt or equity interest in the83005
that entity as prescribed in this section. For such purposes, in 83006
lieu of using the method prescribed by sections 5747.20 and 83007
5747.21 of the Revised Code, the investor shall apportion the 83008
income using the average of the pass-throughsection 5747.21283009
entity's apportionment fractions otherwise applicable under 83010
section 5733.05, 5733.056, or 5747.21 of the Revised Code for the 83011
current and two preceding taxable years. If the pass-through83012
section 5747.212 entity was not in business for one or more of 83013
those years, each year that the entity was not in business shall 83014
be excluded in determining the average.83015

       (C) For the purposes of this section:83016

        (1) A "section 5747.212 entity" is any qualifying person if, 83017
on at least one day of the three-year period ending on the last 83018
day of the taxpayer's taxable year, any of the following apply:83019

        (a) The qualifying person is a pass-through entity;83020

        (b) Five or fewer persons directly or indirectly own all the 83021
equity interests, with voting rights, of the qualifying person;83022

        (c) One person directly or indirectly owns at least fifty per 83023
cent of the qualifying person's equity interests with voting 83024
rights.83025

        (2) A "qualifying person" is any person other than an 83026
individual, estate, or trust.83027

        (3) "Estate" and "trust" do not include any person classified 83028
for federal income tax purposes as an association taxable as a 83029
corporation.83030

       Sec. 5747.331. (A) As used in this section:83031

        (1) "Borrower" means any person that receives a loan from the 83032
director of development under section 166.21 of the Revised Code, 83033
regardless of whether the borrower is subject to the tax imposed 83034
by section 5747.02 of the Revised Code.83035

       (2) "Related member" has the same meaning as in section 83036
5733.042 of the Revised Code.83037

        (3) "Qualified research and development loan payments" has 83038
the same meaning as in division (D) of section 166.21 of the 83039
Revised Code.83040

        (B) Beginning inwith taxable year 2003 and ending with 83041
taxable years beginning in 2007, a nonrefundable credit is allowed 83042
against the tax imposed by section 5747.02 of the Revised Code 83043
equal to a borrower's qualified research and development loan 83044
payments made during the calendar year that includes the last day 83045
of the taxable year for which the credit is claimed. The amount of 83046
the credit for a taxable year shall not exceed one hundred fifty 83047
thousand dollars. No taxpayer is entitled to claim a credit under 83048
this section unless it has obtained a certificate issued by the 83049
director of development under division (D) of section 166.21 of 83050
the Revised Code. The credit shall be claimed in the order 83051
required under section 5747.98 of the Revised Code. The credit, to 83052
the extent it exceeds the taxpayer's tax liability for the taxable 83053
year after allowance for any other credits that precede the credit 83054
under this section in that order, shall be carried forward to the 83055
next succeeding taxable year or years until fully used. Any credit 83056
not fully utilized by the taxable year beginning in 2007 may be 83057
carried forward and applied against the tax levied by Chapter 83058
5751. of the Revised Code to the extent allowed by section 5751.52 83059
of the Revised Code.83060

        (C) A borrower entitled to a credit under this section may 83061
assign the credit, or a portion thereof, to any of the following:83062

        (1) A related member of that borrower;83063

        (2) The owner or lessee of the eligible research and 83064
development project;83065

        (3) A related member of the owner or lessee of the eligible 83066
research and development project.83067

        A borrower making an assignment under this division shall 83068
provide written notice of the assignment to the tax commissioner 83069
and the director of development, in such form as the tax 83070
commissioner prescribes, before the credit that was assigned is 83071
used. The assignor may not claim the credit to the extent it was 83072
assigned to an assignee. The assignee may claim the credit only to 83073
the extent the assignor has not claimed it.83074

       (D) If any taxpayer is a shareholder in an S corporation, a 83075
partner in a partnership, or a member in a limited liability 83076
company treated as a partnership for federal income tax purposes, 83077
the taxpayer shall be allowed the taxpayer's distributive or 83078
proportionate share of the credit available through the S 83079
corporation, partnership, or limited liability company.83080

        (E) The aggregate credit against the taxes imposed by 83081
sections 5733.06, 5733.065, 5733.066, and 5747.02 of the Revised 83082
Code that may be claimed under this section and section 5733.352 83083
of the Revised Code by a borrower as a result of qualified 83084
research and development loan payments attributable during a 83085
calendar year to any one loan shall not exceed one hundred fifty 83086
thousand dollars.83087

       Sec. 5747.70.  (A) In computing Ohio adjusted gross income, a 83088
deduction from federal adjusted gross income is allowed to a83089
contributor for the amount contributed during the taxable year to83090
a variable college savings program account and to a purchaser of83091
tuition creditsunits under the Ohio college savings program 83092
created by Chapter 3334. of the Revised Code to the extent that 83093
the amounts of such contributions and purchases were not deducted 83094
in determining the contributor's or purchaser's federal adjusted 83095
gross income for the taxable year. The combined amount of 83096
contributions and purchases deducted in any taxable year by a83097
taxpayer or the taxpayer and the taxpayer's spouse, regardless of83098
whether the taxpayer and the taxpayer's spouse file separate83099
returns or a joint return, is limited to two thousand dollars for83100
each beneficiary for whom contributions or purchases are made. If83101
the combined annual contributions and purchases for a beneficiary83102
exceed two thousand dollars, the excess may be carried forward and83103
deducted in future taxable years until the contributions and83104
purchases have been fully deducted.83105

       (B) In computing Ohio adjusted gross income, a deduction from 83106
federal adjusted gross income is allowed for:83107

       (1) Income related to tuition creditsunits and contributions 83108
that as of the end of the taxable year have not been refunded 83109
pursuant to the termination of a tuition payment contract or 83110
variable college savings program account under section 3334.10 of 83111
the Revised Code, to the extent that such income is included in83112
federal adjusted gross income.83113

       (2) The excess of the total purchase price of tuition credits83114
units refunded during the taxable year pursuant to the termination 83115
of a tuition payment contract under section 3334.10 of the Revised 83116
Code over the amount of the refund, to the extent the amount of 83117
the excess was not deducted in determining federal adjusted gross83118
income. Division (B)(2) of this section applies only to credits83119
units for which no deduction was allowable under division (A) of83120
this section.83121

       (C) In computing Ohio adjusted gross income, there shall be83122
added to federal adjusted gross income the amount of loss related83123
to tuition creditsunits and contributions that as of the end of83124
the taxable year have not been refunded pursuant to the83125
termination of a tuition payment contract or variable college 83126
savings program account under section 3334.10 of the Revised Code, 83127
to the extent that such loss was deducted in determining federal 83128
adjusted gross income.83129

       (D) For taxable years in which distributions or refunds are83130
made under a tuition payment or variable college savings program 83131
contract for any reason other than payment of tuition or other83132
higher education expenses, or the beneficiary's death, disability,83133
or receipt of a scholarship as described in section 3334.10 of the83134
Revised Code:83135

       (1) If the distribution or refund is paid to the purchaser or 83136
contributor or beneficiary, any portion of the distribution or83137
refund not included in the recipient's federal adjusted gross83138
income shall be added to the recipient's federal adjusted gross83139
income in determining the recipient's Ohio adjusted gross income,83140
except that the amount added shall not exceed amounts previously83141
deducted under division (A) of this section less any amounts added83142
under division (D)(1) of this section in a prior taxable year.83143

       (2) If amounts paid by a purchaser or contributor on or after83144
January 1, 2000, are distributed or refunded to someone other than83145
the purchaser or contributor or beneficiary, the amount of the 83146
payment not included in the recipient's federal adjusted gross 83147
income, less any amounts added under division (D) of this section 83148
in a prior taxable year, shall be added to the recipient's federal 83149
adjusted gross income in determining the recipient's Ohio adjusted 83150
gross income.83151

       Sec. 5747.80. (A) Upon the issuance of a tax credit 83152
certificate by the Ohio venture capital authority under section 83153
150.07 of the Revised Code, a credit may be claimed against the83154
tax imposed by section 5747.02 of the Revised Code. The credit83155
shall be claimed for the taxable year specified in the certificate83156
issued by the authority and in the order required under section83157
5747.98 of the Revised Code.83158

       (B) If the taxpayer elected a refundable credit under section 83159
150.07 of the Revised Code and the amount of the credit shown on 83160
the certificate does not exceed the tax otherwise due under 83161
section 5747.02 of the Revised Code after all nonrefundable 83162
credits are deducted, then the taxpayer shall claim a refundable 83163
credit equal to the amount of the credit shown on the certificate.83164

       (C) If the taxpayer elected a refundable credit under section 83165
150.07 of the Revised Code, and the amount of the credit shown on 83166
the certificate exceeds the tax otherwise due under section 83167
5747.02 of the Revised Code after all nonrefundable credits, 83168
including the credit allowed under this section, are deducted in 83169
that order, the taxpayer shall receive a refund equal to 83170
seventy-five per cent of that excess. If the taxpayer elected a 83171
nonrefundable credit, the amount of the credit, claimed in that 83172
order, shall not exceed the tax otherwise due after all the 83173
taxpayer's credits are deducted in that order. Ifclaim a 83174
refundable credit equal to the sum of the following:83175

        (1) The amount, if any, of the tax otherwise due under 83176
section 5747.02 of the Revised Code after all nonrefundable 83177
credits are deducted;83178

        (2) Seventy-five per cent of the difference between the 83179
amount of the refundable credit shown on the certificate and the 83180
tax otherwise due under section 5747.02 of the Revised Code after 83181
all nonrefundable credits are deducted.83182

       (D) If the taxpayer elected a nonrefundable credit and the 83183
credit to which the taxpayer would otherwise be entitled under 83184
this section for any taxable year is greater than the tax 83185
otherwise due under section 5747.02 of the Revised Code, after 83186
allowing for any other credits that, under section 5747.98 of the 83187
Revised Code, precede the credit allowed under this section, the 83188
excess shall be allowed as a nonrefundable credit in each of the 83189
ensuing ten taxable years, but the amount of any excess credit 83190
allowed in the ensuing taxable year shall be deducted from the 83191
balance carried forward to the next taxable year.83192

       Sec. 5747.98.  (A) To provide a uniform procedure for83193
calculating the amount of tax due under section 5747.02 of the83194
Revised Code, a taxpayer shall claim any credits to which the83195
taxpayer is entitled in the following order:83196

       (1) The retirement income credit under division (B) of83197
section 5747.055 of the Revised Code;83198

       (2) The senior citizen credit under division (C) of section83199
5747.05 of the Revised Code;83200

       (3) The lump sum distribution credit under division (D) of83201
section 5747.05 of the Revised Code;83202

       (4) The dependent care credit under section 5747.054 of the83203
Revised Code;83204

       (5) The lump sum retirement income credit under division (C)83205
of section 5747.055 of the Revised Code;83206

       (6) The lump sum retirement income credit under division (D)83207
of section 5747.055 of the Revised Code;83208

       (7) The lump sum retirement income credit under division (E)83209
of section 5747.055 of the Revised Code;83210

       (8) The low-income credit under section 5747.056 of the 83211
Revised Code;83212

       (9) The credit for displaced workers who pay for job training 83213
under section 5747.27 of the Revised Code;83214

       (9)(10) The campaign contribution credit under section83215
5747.29 of the Revised Code;83216

       (10)(11) The twenty-dollar personal exemption credit under83217
section 5747.022 of the Revised Code;83218

       (11)(12) The joint filing credit under division (G) of83219
section 5747.05 of the Revised Code;83220

       (12)(13) The nonresident credit under division (A) of section83221
5747.05 of the Revised Code;83222

       (13)(14) The credit for a resident's out-of-state income83223
under division (B) of section 5747.05 of the Revised Code;83224

       (14)(15) The credit for employers that enter into agreements83225
with child day-care centers under section 5747.34 of the Revised83226
Code;83227

       (15)(16) The credit for employers that reimburse employee83228
child care expenses under section 5747.36 of the Revised Code;83229

       (16)(17) The credit for adoption of a minor child under 83230
section 5747.37 of the Revised Code;83231

       (17)(18) The credit for purchases of lights and reflectors 83232
under section 5747.38 of the Revised Code;83233

       (18)(19) The job retention credit under division (B) of 83234
section 5747.058 of the Revised Code;83235

       (19)(20) The credit for losses on loans made under the Ohio 83236
venture capital program under sections 150.01 to 150.10 of the 83237
Revised Code if the taxpayer elected a nonrefundable credit under 83238
section 150.07 of the Revised Code;83239

       (20)(21) The credit for purchases of new manufacturing83240
machinery and equipment under section 5747.26 or section 5747.26183241
of the Revised Code;83242

       (21)(22) The second credit for purchases of new manufacturing83243
machinery and equipment and the credit for using Ohio coal under83244
section 5747.31 of the Revised Code;83245

       (22)(23) The job training credit under section 5747.39 of the83246
Revised Code;83247

       (23)(24) The enterprise zone credit under section 5709.66 of83248
the Revised Code;83249

       (24)(25) The credit for the eligible costs associated with a83250
voluntary action under section 5747.32 of the Revised Code;83251

       (25)(26) The credit for employers that establish on-site83252
child day-care centers under section 5747.35 of the Revised Code;83253

       (26)(27) The ethanol plant investment credit under section83254
5747.75 of the Revised Code;83255

       (27)(28) The credit for purchases of qualifying grape83256
production property under section 5747.28 of the Revised Code;83257

       (28)(29) The export sales credit under section 5747.057 of83258
the Revised Code;83259

       (29)(30) The credit for research and development and83260
technology transfer investors under section 5747.33 of the Revised83261
Code;83262

       (30)(31) The enterprise zone credits under section 5709.65 of83263
the Revised Code;83264

       (31)(32) The research and development credit under section 83265
5747.331 of the Revised Code;83266

       (32)(33) The refundable jobs creation credit under division83267
(A) of section 5747.058 of the Revised Code;83268

       (33)(34) The refundable credit for taxes paid by a qualifying83269
entity granted under section 5747.059 of the Revised Code;83270

       (34)(35) The refundable credits for taxes paid by a83271
qualifying pass-through entity granted under division (J) of83272
section 5747.08 of the Revised Code;83273

       (35)(36) The refundable credit for tax withheld under83274
division (B)(1) of section 5747.062 of the Revised Code;83275

       (36)(37) The credit for losses on loans made to the Ohio 83276
venture capital program under sections 150.01 to 150.10 of the 83277
Revised Code if the taxpayer elected a refundable credit under 83278
section 150.07 of the Revised Code.83279

       (B) For any credit, except the credits enumerated in 83280
divisions (A)(32)(33) to (36)(37) of this section and the credit 83281
granted under division (I) of section 5747.08 of the Revised Code, 83282
the amount of the credit for a taxable year shall not exceed the 83283
tax due after allowing for any other credit that precedes it in 83284
the order required under this section. Any excess amount of a 83285
particular credit may be carried forward if authorized under the 83286
section creating that credit. Nothing in this chapter shall be 83287
construed to allow a taxpayer to claim, directly or indirectly, a83288
credit more than once for a taxable year.83289

       Sec. 5748.01.  As used in this chapter:83290

       (A) "School district income tax" means an income tax adopted 83291
under one of the following:83292

       (1) Former section 5748.03 of the Revised Code as it existed 83293
prior to its repeal by Amended Substitute House Bill No. 291 of 83294
the 115th general assembly;83295

       (2) Section 5748.03 of the Revised Code as enacted in83296
Substitute Senate Bill No. 28 of the 118th general assembly;83297

       (3) Section 5748.08 of the Revised Code as enacted in Amended83298
Substitute Senate Bill No. 17 of the 122nd general assembly.83299

       (B) "Individual" means an individual subject to the tax83300
levied by section 5747.02 of the Revised Code.83301

       (C) "Estate" means an estate subject to the tax levied by83302
section 5747.02 of the Revised Code.83303

       (D) "Taxable year" means a taxable year as defined in83304
division (M) of section 5747.01 of the Revised Code.83305

       (E) "Taxable income" means:83306

       (1) In the case of an individual, adjustedone of the 83307
following, as specified in the resolution imposing the tax:83308

       (a) Ohio adjusted gross income for the taxable year as 83309
defined in division (A) of section 5747.01 of the Revised Code, 83310
less the exemptions provided by section 5747.02 of the Revised 83311
Code;83312

       (b) Wages, salaries, tips, and other employee compensation to 83313
the extent included in Ohio adjusted gross income as defined in 83314
section 5747.01 of the Revised Code, and net earnings from 83315
self-employment, as defined in section 1402(a) of the Internal 83316
Revenue Code, to the extent included in Ohio adjusted gross 83317
income.83318

       (2) In the case of an estate, taxable income for the taxable 83319
year as defined in division (S) of section 5747.01 of the Revised 83320
Code.83321

       (F) Except as provided in section 5747.25 of the Revised83322
Code, "resident" of the school district means:83323

       (1) An individual who is a resident of this state as defined 83324
in division (I) of section 5747.01 of the Revised Code during all 83325
or a portion of the taxable year and who, during all or a portion 83326
of such period of state residency, is domiciled in the school 83327
district or lives in and maintains a permanent place of abode in 83328
the school district;83329

       (2) An estate of a decedent who, at the time of death, was 83330
domiciled in the school district.83331

       (G) "School district income" means:83332

       (1) With respect to an individual, the portion of the taxable 83333
income of an individual that is received by the individual during 83334
the portion of the taxable year that the individual is a resident 83335
of the school district and the school district income tax is in 83336
effect in that school district. An individual may have school 83337
district income with respect to more than one school district.83338

       (2) With respect to an estate, the taxable income of the83339
estate for the portion of the taxable year that the school83340
district income tax is in effect in that school district.83341

       (H) "Taxpayer" means an individual or estate having school83342
district income upon which a school district income tax is83343
imposed.83344

       (I) "School district purposes" means any of the purposes for 83345
which a tax may be levied pursuant to section 5705.21 of the83346
Revised Code.83347

       Sec. 5748.02.  (A) The board of education of any school83348
district, except a joint vocational school district, may declare, 83349
by resolution, the necessity of raising annually a specified 83350
amount of money for school district purposes. The resolution shall 83351
specify whether the income that is to be subject to the tax is 83352
taxable income of individuals and estates as defined in divisions 83353
(E)(1)(a) and (2) of section 5748.01 of the Revised Code or 83354
taxable income of individuals as defined in division (E)(1)(b) of 83355
that section. A copy of the resolution shall be certified to the 83356
tax commissioner no later than eighty-five days prior to the date 83357
of the election at which the board intends to propose a levy under 83358
this section. Upon receipt of the copy of the resolution, the tax 83359
commissioner shall estimate both of the following:83360

       (1) The property tax rate that would have to be imposed in83361
the current year by the district to produce an equivalent amount83362
of money;83363

       (2) The income tax rate that would have had to have been in 83364
effect for the current year to produce an equivalent amount of83365
money from a school district income tax.83366

       Within ten days of receiving the copy of the board's83367
resolution, the commissioner shall prepare these estimates and83368
certify them to the board. Upon receipt of the certification, the 83369
board may adopt a resolution proposing an income tax under83370
division (B) of this section at the estimated rate contained in83371
the certification rounded to the nearest one-fourth of one per83372
cent. The commissioner's certification applies only to the board's 83373
proposal to levy an income tax at the election for which the board 83374
requested the certification. If the board intends to submit a 83375
proposal to levy an income tax at any other election, it shall 83376
request another certification for that election in the manner 83377
prescribed in this division.83378

       (B)(1) Upon the receipt of a certification from the tax83379
commissioner under division (A) of this section, a majority of the 83380
members of a board of education may adopt a resolution proposing 83381
the levy of an annual tax for school district purposes on the83382
school district income of individuals and of estates. The proposed 83383
levy may be for a continuing period of time or for a specified 83384
number of years. The resolution shall set forth the purpose for 83385
which the tax is to be imposed, the rate of the tax, which shall 83386
be the rate set forth in the commissioner's certification rounded 83387
to the nearest one-fourth of one per cent, the number of years the 83388
tax will be levied or that it will be levied for a continuing 83389
period of time, the date on which the tax shall take effect, which 83390
shall be the first day of January of any year following the year 83391
in which the question is submitted, and the date of the election 83392
at which the proposal shall be submitted to the electors of the 83393
district, which shall be on the date of a primary, general, or 83394
special election the date of which is consistent with section 83395
3501.01 of the Revised Code. The resolution shall specify whether 83396
the income that is to be subject to the tax is taxable income of 83397
individuals and estates as defined in divisions (E)(1)(a) and (2) 83398
of section 5748.01 of the Revised Code or taxable income of 83399
individuals as defined in division (E)(1)(b) of that section. The 83400
specification shall be the same as the specification in the 83401
resolution adopted and certified under division (A) of this 83402
section. If the board of education currently imposes an income tax 83403
pursuant to this chapter that is due to expire and a question is 83404
submitted under this section for a proposed income tax to take83405
effect upon the expiration of the existing tax, the board may 83406
specify in the resolution that the proposed tax renews the83407
expiring tax and is not an additional income tax, provided that 83408
the tax rate being proposed is no higher than the tax rate that is 83409
currently imposed.83410

       (2) A board of education adopting a resolution under division 83411
(B)(1) of this section proposing a school district income tax for 83412
a continuing period of time and limited to the purpose of current 83413
expenses may propose in that resolution to reduce the rate or 83414
rates of one or more of the school district's property taxes 83415
levied for a continuing period of time in excess of the ten-mill 83416
limitation for the purpose of current expenses. The reduction in 83417
the rate of a property tax may be any amount, expressed in mills 83418
per one dollar in valuation, not exceeding the rate at which the 83419
tax is authorized to be levied. The reduction in the rate of a tax 83420
shall first take effect for the tax year that includes the day on 83421
which the school district income tax first takes effect, and shall 83422
continue for each tax year that both the school district income 83423
tax and the property tax levy are in effect.83424

       In addition to the matters required to be set forth in the83425
resolution under division (B)(1) of this section, a resolution83426
containing a proposal to reduce the rate of one or more property83427
taxes shall state for each such tax the maximum rate at which it83428
currently may be levied and the maximum rate at which the tax83429
could be levied after the proposed reduction, expressed in mills83430
per one dollar in valuation, and that the tax is levied for a83431
continuing period of time.83432

       If a board of education proposes to reduce the rate of one or 83433
more property taxes under division (B)(2) of this section, the83434
board, when it makes the certification required under division (A) 83435
of this section, shall designate the specific levy or levies to be 83436
reduced, the maximum rate at which each levy currently is83437
authorized to be levied, and the rate by which each levy is83438
proposed to be reduced. The tax commissioner, when making the83439
certification to the board under division (A) of this section,83440
also shall certify the reduction in the total effective tax rate83441
for current expenses for each class of property that would have83442
resulted if the proposed reduction in the rate or rates had been83443
in effect the previous tax year. As used in this paragraph,83444
"effective tax rate" has the same meaning as in section 323.08 of83445
the Revised Code.83446

       (C) A resolution adopted under division (B) of this section 83447
shall go into immediate effect upon its passage, and no83448
publication of the resolution shall be necessary other than that83449
provided for in the notice of election. Immediately after its83450
adoption and at least seventy-five days prior to the election at83451
which the question will appear on the ballot, a copy of the83452
resolution shall be certified to the board of elections of the83453
proper county, which shall submit the proposal to the electors on83454
the date specified in the resolution. The form of the ballot shall 83455
be as provided in section 5748.03 of the Revised Code. Publication 83456
of notice of the election shall be made in one or more newspapers 83457
of general circulation in the county once a week for four 83458
consecutive weeks. The notice shall contain the time and place of 83459
the election and the question to be submitted to the electors. The 83460
question covered by the resolution shall be submitted as a 83461
separate proposition, but may be printed on the same ballot with 83462
any other proposition submitted at the same election, other than 83463
the election of officers.83464

       (D) No board of education shall submit the question of a tax 83465
on school district income to the electors of the district more 83466
than twice in any calendar year. If a board submits the question 83467
twice in any calendar year, one of the elections on the question 83468
shall be held on the date of the general election.83469

       Sec. 5748.03. (A) The form of the ballot on a question83470
submitted to the electors under section 5748.02 of the Revised83471
Code shall be as follows:83472

       "Shall an annual income tax of ....... (state the proposed83473
rate of tax) on the school district income of individuals and of83474
estates be imposed by ....... (state the name of the school83475
district), for ....... (state the number of years the tax would be83476
levied, or that it would be levied for a continuing period of83477
time), beginning ....... (state the date the tax would first take83478
effect), for the purpose of ...... (state the purpose of the tax)?83479

        83480

 FOR THE TAX 83481
 AGAINST THE TAX  " 83482

        83483

       (B)(1) If the question submitted to electors proposes a 83484
school district income tax only on the taxable income of 83485
individuals as defined in division (E)(1)(b) of section 5748.01 of 83486
the Revised Code, the form of the ballot shall be modified by 83487
stating that the tax is to be levied on the "earned income of 83488
individuals residing in the school district" in lieu of the 83489
"school district income of individuals and of estates."83490

       (2) If the question submitted to electors proposes to renew 83491
an expiring income tax, the ballot shall be modified by adding the83492
following language immediately after the name of the school83493
district that would impose the tax: "to renew an income tax83494
expiring at the end of ........ (state the last year the existing83495
income tax may be levied)."83496

       (3) If the question includes a proposal under division (B)(2) 83497
of section 5748.02 of the Revised Code to reduce the rate of one 83498
or more school district property taxes, the ballot shall state 83499
that the purpose of the school district income tax is for current83500
expenses, and the form of the ballot shall be modified by adding83501
the following language immediately after the statement of the83502
purpose of the proposed income tax: ", and shall the rate of an83503
existing tax on property, currently levied for the purpose of83504
current expenses at the rate of ....... mills, be REDUCED to83505
....... mills until any such time as the income tax is repealed."83506
In lieu of "for the tax" and "against the tax," the phrases "for83507
the issue" and "against the issue," respectively, shall be used.83508
If a board of education proposes a reduction in the rates of more83509
than one tax, the ballot language shall be modified accordingly to83510
express the rates at which those taxes currently are levied and83511
the rates to which the taxes will be reduced.83512

       (C) The board of elections shall certify the results of the83513
election to the board of education and to the tax commissioner. If83514
a majority of the electors voting on the question vote in favor of83515
it, the income tax, the applicable provisions of Chapter 5747. of83516
the Revised Code, and the reduction in the rate or rates of83517
existing property taxes if the question included such a reduction83518
shall take effect on the date specified in the resolution. If the83519
question approved by the voters includes a reduction in the rate83520
of a school district property tax, the board of education shall83521
not levy the tax at a rate greater than the rate to which the tax83522
is reduced, unless the school district income tax is repealed in83523
an election under section 5748.04 of the Revised Code.83524

       (D) If the rate at which a property tax is levied and 83525
collected is reduced pursuant to a question approved under this 83526
section, the tax commissioner shall compute the percentage 83527
required to be computed for that tax under division (D) of section 83528
319.301 of the Revised Code each year the rate is reduced as if 83529
the tax had been levied in the preceding year at the rate at which 83530
it has been reduced. If the rate of a property tax increases due 83531
to the repeal of the school district income tax pursuant to 83532
section 5748.04 of the Revised Code, the tax commissioner, for the 83533
first year for which the rate increases, shall compute the 83534
percentage as if the tax in the preceding year had been levied at 83535
the rate at which the tax was authorized to be levied prior to any 83536
rate reduction.83537

       Sec. 5748.04. (A) The question of the repeal of a school83538
district income tax levied for more than five years may be83539
initiated not more than once in any five-year period by filing83540
with the board of elections of the appropriate counties not later83541
than seventy-five days before the general election in any year83542
after the year in which it is approved by the electors a petition83543
requesting that an election be held on the question. The petition83544
shall be signed by qualified electors residing in the school83545
district levying the income tax equal in number to ten per cent of83546
those voting for governor at the most recent gubernatorial83547
election.83548

       The board of elections shall determine whether the petition83549
is valid, and if it so determines, it shall submit the question to83550
the electors of the district at the next general election. The83551
election shall be conducted, canvassed, and certified in the same83552
manner as regular elections for county offices in the county.83553
Notice of the election shall be published in a newspaper of83554
general circulation in the district once a week for four83555
consecutive weeks prior to the election, stating the purpose, the83556
time, and the place of the election. The form of the ballot cast83557
at the election shall be as follows:83558

       "Shall the annual income tax of ..... per cent, currently83559
levied on the school district income of individuals and estates by83560
.......... (state the name of the school district) for the purpose83561
of .......... (state purpose of the tax), be repealed?83562

        83563

 For repeal of the income tax 83564
 Against repeal of the income tax  " 83565

        83566

       (B)(1) If the tax is imposed on taxable income as defined in 83567
division (E)(1)(b) of section 5748.01 of the Revised Code, the 83568
form of the ballot shall be modified by stating that the tax 83569
currently is levied on the "earned income of individuals residing 83570
in the school district" in lieu of the "school district income of 83571
individuals and estates."83572

       (2) If the rate of one or more property tax levies was 83573
reduced for the duration of the income tax levy pursuant to 83574
division (B)(2) of section 5748.02 of the Revised Code, the form 83575
of the ballot shall be modified by adding the following language83576
immediately after "repealed": ", and shall the rate of an existing 83577
tax on property for the purpose of current expenses, which rate 83578
was reduced for the duration of the income tax, be INCREASED from 83579
..... mills to ..... mills per one dollar of valuation beginning 83580
in ..... (state the first year for which the rate of the property 83581
tax will increase)." In lieu of "for repeal of the income tax" and83582
"against repeal of the income tax," the phrases "for the issue" 83583
and "against the issue," respectively, shall be substituted.83584

       (3) If the rate of more than one property tax was reduced for83585
the duration of the income tax, the ballot language shall be83586
modified accordingly to express the rates at which those taxes83587
currently are levied and the rates to which the taxes would be83588
increased.83589

       (C) The question covered by the petition shall be submitted 83590
as a separate proposition, but it may be printed on the same 83591
ballot with any other proposition submitted at the same election 83592
other than the election of officers. If a majority of the 83593
qualified electors voting on the question vote in favor of it, the 83594
result shall be certified immediately after the canvass by the 83595
board of elections to the board of education of the school 83596
district and the tax commissioner, who shall thereupon, after the 83597
current year, cease to levy the tax, except that if notes have 83598
been issued pursuant to section 5748.05 of the Revised Code the 83599
tax commissioner shall continue to levy and collect under 83600
authority of the election authorizing the levy an annual amount, 83601
rounded upward to the nearest one-fourth of one per cent, as will 83602
be sufficient to pay the debt charges on the notes as they fall 83603
due.83604

       (D) If a school district income tax repealed pursuant to this83605
section was approved in conjunction with a reduction in the rate83606
of one or more school district property taxes as provided in83607
division (B)(2) of section 5748.02 of the Revised Code, then each83608
such property tax may be levied after the current year at the rate83609
at which it could be levied prior to the reduction, subject to any83610
adjustments required by the county budget commission pursuant to83611
Chapter 5705. of the Revised Code. Upon the repeal of a school83612
district income tax under this section, the board of education may83613
resume levying a property tax, the rate of which has been reduced83614
pursuant to a question approved under section 5748.02 of the83615
Revised Code, at the rate the board originally was authorized to83616
levy the tax. A reduction in the rate of a property tax under83617
section 5748.02 of the Revised Code is a reduction in the rate at83618
which a board of education may levy that tax only for the period83619
during which a school district income tax is levied prior to any83620
repeal pursuant to this section. The resumption of the authority83621
to levy the tax upon such a repeal does not constitute a tax83622
levied in excess of the one per cent limitation prescribed by83623
Section 2 of Article XII, Ohio Constitution, or in excess of the83624
ten-mill limitation.83625

       (E) This section does not apply to school district income tax83626
levies that are levied for five or fewer years.83627

       Sec. 5748.08.  (A) The board of education of a city, local,83628
or exempted village school district, at any time by a vote of83629
two-thirds of all its members, may declare by resolution that it83630
may be necessary for the school district to do all of the83631
following:83632

       (1) Raise a specified amount of money for school district83633
purposes by levying an annual tax on the school district income of83634
individuals and estates;83635

       (2) Issue general obligation bonds for permanent83636
improvements, stating in the resolution the necessity and purpose83637
of the bond issue and the amount, approximate date, estimated rate83638
of interest, and maximum number of years over which the principal83639
of the bonds may be paid;83640

       (3) Levy a tax outside the ten-mill limitation to pay debt83641
charges on the bonds and any anticipatory securities;83642

       (4) Submit the question of the school district income tax and 83643
bond issue to the electors of the district at a special election.83644

       The resolution shall specify whether the income that is to be 83645
subject to the tax is taxable income of individuals and estates as 83646
defined in divisions (E)(1)(a) and (2) of section 5748.01 of the 83647
Revised Code or taxable income of individuals as defined in 83648
division (E)(1)(b) of that section.83649

       On adoption of the resolution, the board shall certify a copy83650
of it to the tax commissioner and the county auditor no later than83651
ninety days prior to the date of the special election at which the83652
board intends to propose the income tax and bond issue. Not later83653
than ten days of receipt of the resolution, the tax commissioner,83654
in the same manner as required by division (A) of section 5748.0283655
of the Revised Code, shall estimate the rates designated in83656
division (A)(1) and (2) of that section and certify them to the83657
board. Not later than ten days of receipt of the resolution, the83658
county auditor shall estimate and certify to the board the average83659
annual property tax rate required throughout the stated maturity83660
of the bonds to pay debt charges on the bonds, in the same manner83661
as under division (C) of section 133.18 of the Revised Code.83662

       (B) On receipt of the tax commissioner's and county auditor's 83663
certifications prepared under division (A) of this section, the 83664
board of education of the city, local, or exempted village school 83665
district, by a vote of two-thirds of all its members, may adopt a 83666
resolution proposing for a specified number of years or for a 83667
continuing period of time the levy of an annual tax for school 83668
district purposes on the school district income of individuals and 83669
of estates and declaring that the amount of taxes that can be 83670
raised within the ten-mill limitation will be insufficient to 83671
provide an adequate amount for the present and future requirements 83672
of the school district; that it is necessary to issue general 83673
obligation bonds of the school district for specified permanent 83674
improvements and to levy an additional tax in excess of the 83675
ten-mill limitation to pay the debt charges on the bonds and any 83676
anticipatory securities; and that the question of the bonds and 83677
taxes shall be submitted to the electors of the school district at 83678
a special election, which shall not be earlier than seventy-five 83679
days after certification of the resolution to the board of 83680
elections, and the date of which shall be consistent with section 83681
3501.01 of the Revised Code. The resolution shall specify all of83682
the following:83683

       (1) The purpose for which the school district income tax is83684
to be imposed and the rate of the tax, which shall be the rate set83685
forth in the tax commissioner's certification rounded to the83686
nearest one-fourth of one per cent;83687

       (2) Whether the income that is to be subject to the tax is 83688
taxable income of individuals and estates as defined in divisions 83689
(E)(1)(a) and (2) of section 5748.01 of the Revised Code or 83690
taxable income of individuals as defined in division (E)(1)(b) of 83691
that section. The specification shall be the same as the 83692
specification in the resolution adopted and certified under 83693
division (A) of this section.83694

       (3) The number of years the tax will be levied, or that it83695
will be levied for a continuing period of time;83696

       (3)(4) The date on which the tax shall take effect, which83697
shall be the first day of January of any year following the year 83698
in which the question is submitted;83699

       (4)(5) The county auditor's estimate of the average annual83700
property tax rate required throughout the stated maturity of the83701
bonds to pay debt charges on the bonds.83702

       (C) A resolution adopted under division (B) of this section83703
shall go into immediate effect upon its passage, and no83704
publication of the resolution shall be necessary other than that83705
provided for in the notice of election. Immediately after its83706
adoption and at least seventy-five days prior to the election at83707
which the question will appear on the ballot, the board of83708
education shall certify a copy of the resolution, along with83709
copies of the auditor's estimate and its resolution under division83710
(A) of this section, to the board of elections of the proper83711
county. The board of education shall make the arrangements for the 83712
submission of the question to the electors of the school district, 83713
and the election shall be conducted, canvassed, and certified in 83714
the same manner as regular elections in the district for the83715
election of county officers.83716

       The resolution shall be put before the electors as one ballot83717
question, with a majority vote indicating approval of the school83718
district income tax, the bond issue, and the levy to pay debt83719
charges on the bonds and any anticipatory securities. The board of83720
elections shall publish the notice of the election in one or more 83721
newspapers of general circulation in the school district once a 83722
week for four consecutive weeks. The notice of election shall83723
state all of the following:83724

       (1) The questions to be submitted to the electors;83725

       (2) The rate of the school district income tax;83726

       (3) The principal amount of the proposed bond issue;83727

       (4) The permanent improvements for which the bonds are to be83728
issued;83729

       (5) The maximum number of years over which the principal of83730
the bonds may be paid;83731

       (6) The estimated additional average annual property tax rate 83732
to pay the debt charges on the bonds, as certified by the county 83733
auditor;83734

       (7) The time and place of the special election.83735

       (D) The form of the ballot on a question submitted to the83736
electors under this section shall be as follows:83737

       "Shall the ........ school district be authorized to do both83738
of the following:83739

       (1) Impose an annual income tax of ...... (state the proposed 83740
rate of tax) on the school district income of individuals and of 83741
estates, for ........ (state the number of years the tax would be 83742
levied, or that it would be levied for a continuing period of 83743
time), beginning ........ (state the date the tax would first take 83744
effect), for the purpose of ........ (state the purpose of the 83745
tax)?83746

       (2) Issue bonds for the purpose of ....... in the principal83747
amount of $......, to be repaid annually over a maximum period of83748
....... years, and levy a property tax outside the ten-mill83749
limitation estimated by the county auditor to average over the83750
bond repayment period ....... mills for each one dollar of tax83751
valuation, which amounts to ....... (rate expressed in cents or83752
dollars and cents, such as "36 cents" or "$1.41") for each $100 of83753
tax valuation, to pay the annual debt charges on the bonds, and to83754
pay debt charges on any notes issued in anticipation of those83755
bonds?83756

        83757

 FOR THE INCOME TAX AND BOND ISSUE 83758
 AGAINST THE INCOME TAX AND BOND ISSUE  " 83759

        83760

       (E) If the question submitted to electors proposes a school 83761
district income tax only on the taxable income of individuals as 83762
defined in division (E)(1)(b) of section 5748.01 of the Revised 83763
Code, the form of the ballot shall be modified by stating that the 83764
tax is to be levied on the "earned income of individuals residing 83765
in the school district" in lieu of the "school district income of 83766
individuals and of estates."83767

       (E)(F) The board of elections promptly shall certify the83768
results of the election to the tax commissioner and the county83769
auditor of the county in which the school district is located. If83770
a majority of the electors voting on the question vote in favor of83771
it, the income tax and the applicable provisions of Chapter 5747.83772
of the Revised Code shall take effect on the date specified in the83773
resolution, and the board of education may proceed with issuance83774
of the bonds and with the levy and collection of the property83775
taxes to pay debt charges on the bonds, at the additional rate or83776
any lesser rate in excess of the ten-mill limitation. Any83777
securities issued by the board of education under this section are83778
Chapter 133. securities, as that term is defined in section 133.0183779
of the Revised Code.83780

       (F)(G) After approval of a question under this section, the83781
board of education may anticipate a fraction of the proceeds of83782
the school district income tax in accordance with section 5748.0583783
of the Revised Code. Any anticipation notes under this division83784
shall be issued as provided in section 133.24 of the Revised Code,83785
shall have principal payments during each year after the year of83786
their issuance over a period not to exceed five years, and may83787
have a principal payment in the year of their issuance.83788

       (G)(H) The question of repeal of a school district income tax83789
levied for more than five years may be initiated and submitted in83790
accordance with section 5748.04 of the Revised Code.83791

       (H)(I) No board of education shall submit a question under 83792
this section to the electors of the school district more than 83793
twice in any calendar year. If a board submits the question twice 83794
in any calendar year, one of the elections on the question shall 83795
be held on the date of the general election.83796

       Sec. 5749.02.  (A) For the purpose of providing revenue to83797
administer the state's coal mining and reclamation regulatory83798
program, to meet the environmental and resource management needs83799
of this state, and to reclaim land affected by mining, an excise83800
tax is hereby levied on the privilege of engaging in the severance 83801
of natural resources from the soil or water of this state. The tax 83802
shall be imposed upon the severer and shall be:83803

       (1) Seven cents per ton of coal;83804

       (2) Four cents per ton of salt;83805

       (3) Two cents per ton of limestone or dolomite;83806

       (4) Two cents per ton of sand and gravel;83807

       (5) Ten cents per barrel of oil;83808

       (6) Two and one-half cents per thousand cubic feet of natural 83809
gas;83810

       (7) One cent per ton of clay, sandstone or conglomerate,83811
shale, gypsum, or quartzite.83812

       (B) Of the moneys received by the treasurer of state from the 83813
tax levied in division (A)(1) of this section, six and83814
three-tenths per cent shall be credited to the geological mapping83815
fund created in section 1505.09 of the Revised Code, fourteen and83816
two-tenths per cent shall be credited to the reclamation 83817
forfeiture fund created in section 1513.18 of the Revised Code,83818
fifty-seven and nine-tenths per cent shall be credited to the coal 83819
mining administration and reclamation reserve fund created in 83820
section 1513.181 of the Revised Code, and the remainder shall be 83821
credited to the unreclaimed lands fund created in section 1513.30 83822
of the Revised Code. When, at any time during a fiscal year, the83823
chief of the division of mineral resources management finds that 83824
the balance of the coal mining administration and reclamation 83825
reserve fund is below two million dollars, the chief shall certify 83826
that fact to the director of budget and management. Upon receipt 83827
of the chief's certification, the director shall direct the 83828
treasurer of statetax commissioner to instead credit to the coal 83829
mining administration and reclamation reserve fund during the 83830
remainder of the fiscal year for which the certification is made 83831
the fourteen and two-tenths per cent of the moneys collected from 83832
the tax levied in division (A)(1) of this section and otherwise 83833
required by this division to be credited to the reclamation 83834
forfeiture fund.83835

       Fifteen per cent of the moneys received by the treasurer of83836
state from the tax levied in division (A)(2) of this section shall 83837
be credited to the geological mapping fund and the remainder shall 83838
be credited to the unreclaimed lands fund.83839

       Of the moneys received by the treasurer of state from the tax 83840
levied in divisions (A)(3) and (4) of this section, seven and83841
five-tenths per cent shall be credited to the geological mapping83842
fund, forty-two and five-tenths per cent shall be credited to the83843
unreclaimed lands fund, and the remainder shall be credited to the 83844
surface mining fund created in section 1514.06 of the Revised 83845
Code.83846

       Of the moneys received by the treasurer of state from the tax 83847
levied in divisions (A)(5) and (6) of this section, ninety per 83848
cent shall be credited to the oil and gas well fund created in 83849
section 1509.02 of the Revised Code and ten per cent shall be 83850
credited to the geological mapping fund. All of the moneys 83851
received by the treasurer of state from the tax levied in division 83852
(A)(7) of this section shall be credited to the surface mining 83853
fund.83854

       (C) For the purpose of paying the state's expenses for83855
reclaiming mined lands that the operator failed to reclaim under a 83856
coal mining and reclamation permit issued under Chapter 1513. of 83857
the Revised Code, or under a surface mining permit issued under 83858
Chapter 1514. of the Revised Code, for which the operator's bond 83859
is not sufficient to pay the state's expense for reclamation, 83860
there is hereby levied an excise tax on the privilege of engaging 83861
in the severance of coal from the soil or water of this state in83862
addition to the taxes levied by divisions (A)(1) and (D) of this83863
section. The tax shall be imposed at the rate of one cent per ton 83864
of coal. Moneys received by the treasurer of state from the tax 83865
levied under this division shall be credited to the reclamation 83866
forfeiture fund created in section 1513.18 of the Revised Code.83867

       (D) For the purpose of paying the state's expenses for83868
reclaiming coal mined lands that the operator failed to reclaim in 83869
accordance with Chapter 1513. of the Revised Code under a coal83870
mining and reclamation permit issued after April 10, 1972, but83871
before September 1, 1981, for which the operator's bond is not83872
sufficient to pay the state's expense for reclamation and paying83873
the expenses for administering the state's coal mining and83874
reclamation regulatory program, there is hereby levied an excise83875
tax on the privilege of engaging in the severance of coal from the 83876
soil or water of this state in addition to the taxes levied by 83877
divisions (A)(1) and (C) of this section. The tax shall be imposed 83878
at the rate of one cent per ton of coal as prescribed in this 83879
division. Moneys received by the treasurer of state from the tax 83880
levied by this division shall be credited to the reclamation 83881
forfeiture fund created in section 1513.18 of the Revised Code.83882

       When, at the close of any fiscal year, the chief finds that83883
the balance of the reclamation forfeiture fund, plus estimated 83884
transfers to it from the coal mining and reclamation reserve fund 83885
under section 1513.181 of the Revised Code, plus the estimated 83886
revenues from the tax levied by this division for the remainder of 83887
the calendar year that includes the close of the fiscal year, are83888
sufficient to complete the reclamation of such lands, the purposes 83889
for which the tax under this division is levied shall be deemed 83890
accomplished at the end of that calendar year. The chief, within 83891
thirty days after the close of the fiscal year, shall certify 83892
those findings to the tax commissioner, and the tax shall cease to 83893
be imposed after the last day of that calendar year.83894

       (E) On the day fixed for the payment of the severance taxes 83895
required to be paid by this section, the taxes with any penalties 83896
or interest on them shall become a lien on all property of the 83897
taxpayer in this state whether the property is employed by the 83898
taxpayer in the prosecution of its business or is in the hands of 83899
an assignee, trustee, or receiver for the benefit of creditors or 83900
stockholders. The lien shall continue until the taxes and any 83901
penalties or interest thereon are paid.83902

       Upon failure of the taxpayer to pay a tax on the day fixed83903
for payment, the tax commissioner may file, for which no filing83904
fee shall be charged, in the office of the county recorder in each 83905
county in this state in which the taxpayer owns or has a83906
beneficial interest in real estate, notice of the lien containing83907
a brief description of the real estate. The lien shall not be83908
valid as against any mortgagee, purchaser, or judgment creditor83909
whose rights have attached prior to the time the notice is filed83910
in the county in which the real estate that is the subject of the 83911
mortgage, purchase, or judgment lien is located. The notice shall 83912
be recorded in a book kept by the recorder called the "severance 83913
tax lien record" and indexed under the name of the taxpayer 83914
charged with the tax. When the tax has been paid, the tax 83915
commissioner shall furnish to the taxpayer an acknowledgement of 83916
payment, which the taxpayer may record with the recorder of each 83917
county in which notice of the lien has been filed.83918

       Sec. 5751.01.  As used in this chapter:83919

       (A) "Person" means, but is not limited to, individuals, 83920
combinations of individuals of any form, receivers, assignees, 83921
trustees in bankruptcy, firms, companies, joint-stock companies, 83922
business trusts, estates, partnerships, limited liability 83923
partnerships, limited liability companies, associations, joint 83924
ventures, clubs, societies, for-profit corporations, S 83925
corporations, qualified subchapter S subsidiaries, qualified 83926
subchapter S trusts, trusts, entities that are disregarded for 83927
federal income tax purposes, and any other entities. "Person" does 83928
not include nonprofit organizations or the state, its agencies, 83929
its instrumentalities, and its political subdivisions.83930

       (B) "Consolidated elected taxpayer" means a group of two or 83931
more persons treated as a single taxpayer for purposes of this 83932
chapter as the result of an election made under section 5751.011 83933
of the Revised Code.83934

       (C) "Combined taxpayer" means a group of two or more persons 83935
treated as a single taxpayer for purposes of this chapter under 83936
section 5751.012 of the Revised Code.83937

       (D) "Taxpayer" means any person, or any group of persons in 83938
the case of a consolidated elected taxpayer or combined taxpayer 83939
treated as one taxpayer, required to register or pay tax under 83940
this chapter. "Taxpayer" does not include excluded persons.83941

        (E) "Excluded person" means any of the following:83942

       (1) Any person with not more than one hundred fifty thousand 83943
dollars of taxable gross receipts during the calendar year. 83944
Division (E)(1) of this section does not apply to a person that is 83945
a member of a group that is a consolidated elected taxpayer or a 83946
combined taxpayer;83947

        (2) A public utility that paid the excise tax imposed by 83948
section 5727.24 or 5727.30 of the Revised Code based on one or 83949
more measurement periods that include the entire tax period under 83950
this chapter, except that a public utility that is a combined 83951
company is a taxpayer with regard to the following gross receipts:83952

        (a) Taxable gross receipts directly attributed to a public 83953
utility activity, but not directly attributed to an activity that 83954
is subject to the excise tax imposed by section 5727.24 or 5727.30 83955
of the Revised Code;83956

        (b) Taxable gross receipts that cannot be directly attributed 83957
to any activity, multiplied by a fraction whose numerator is the 83958
taxable gross receipts described in division (E)(2)(a) of this 83959
section and whose denominator is the total taxable gross receipts 83960
that can be directly attributed to any activity;83961

        (c) Except for any differences resulting from the use of an 83962
accrual basis method of accounting for purposes of determining 83963
gross receipts under this chapter and the use of the cash basis 83964
method of accounting for purposes of determining gross receipts 83965
under section 5727.24 of the Revised Code, the gross receipts 83966
directly attributed to the activity of a natural gas company shall 83967
be determined in a manner consistent with division (D) of section 83968
5727.03 of the Revised Code.83969

        As used in division (E)(2) of this section, "combined 83970
company" and "public utility" have the same meanings as in section 83971
5727.01 of the Revised Code.83972

       (3) A financial institution, as defined in section 5725.01 of 83973
the Revised Code, that paid the corporation franchise tax charged 83974
by division (D) of section 5733.06 of the Revised Code based on 83975
one or more taxable years that include the entire tax period under 83976
this chapter;83977

       (4) A dealer in intangibles, as defined in section 5725.01 of 83978
the Revised Code, that paid the dealer in intangibles tax levied 83979
by division (D) of section 5707.03 of the Revised Code based on 83980
one or more measurement periods that include the entire tax period 83981
under this chapter;83982

       (5) A financial holding company as defined in the "Bank 83983
Holding Company Act," 12 U.S.C. 1841(p);83984

        (6) A bank holding company as defined in the "Bank Holding 83985
Company Act," 12 U.S.C. 1841(a);83986

        (7) A savings and loan holding company as defined in the 83987
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging 83988
only in activities or investments permissible for a financial 83989
holding company under 12 U.S.C. 1843(k);83990

        (8) A person directly or indirectly owned by one or more 83991
financial institutions, financial holding companies, bank holding 83992
companies, or savings and loan holding companies described in 83993
division (E)(3), (5), (6), or (7) of this section that is engaged 83994
in activities permissible for a financial holding company under 12 83995
U.S.C. 1843(k), except that any such person held pursuant to 83996
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12 83997
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person 83998
directly or indirectly owned by one or more insurance companies 83999
described in division (E)(9) of this section that is authorized to 84000
do the business of insurance in this state.84001

        For the purposes of division (E)(8) of this section, a person 84002
owns another person under the following circumstances:84003

        (a) In the case of corporations issuing capital stock, one 84004
corporation owns another corporation if it owns fifty per cent or 84005
more of the other corporation's capital stock with current voting 84006
rights;84007

        (b) In the case of a limited liability company, one person 84008
owns the company if that person's membership interest, as defined 84009
in section 1705.01 of the Revised Code, is fifty per cent or more 84010
of the combined membership interests of all persons owning such 84011
interests in the company;84012

        (c) In the case of a partnership, trust, or other 84013
unincorporated business organization other than a limited 84014
liability company, one person owns the organization if, under the 84015
articles of organization or other instrument governing the affairs 84016
of the organization, that person has a beneficial interest in the 84017
organization's profits, surpluses, losses, or distributions of 84018
fifty per cent or more of the combined beneficial interests of all 84019
persons having such an interest in the organization;84020

        (d) In the case of multiple ownership, the ownership 84021
interests of more than one person may be aggregated to meet the 84022
fifty per cent ownership tests in this division only when each 84023
such owner is described in division (E)(3), (5), (6), or (7) of 84024
this section and is engaged in activities permissible for a 84025
financial holding company under 12 U.S.C. 1843(k) or is a person 84026
directly or indirectly owned by one or more insurance companies 84027
described in division (E)(9) of this section that is authorized to 84028
do the business of insurance in this state;84029

        (9) A domestic insurance company or foreign insurance 84030
company, as defined in section 5725.01 of the Revised Code, that 84031
paid the insurance company premiums tax imposed by section 5725.18 84032
or Chapter 5729. of the Revised Code based on one or more 84033
measurement periods that include the entire tax period under this 84034
chapter;84035

       (10) A person that solely facilitates or services one or more 84036
securitizations or similar transactions for any person described 84037
in division (E)(3), (5), (6), (7), (8), or (9) of this section. 84038
For purposes of this division, "securitization" means transferring 84039
one or more assets to one or more persons and then issuing 84040
securities backed by the right to receive payment from the asset 84041
or assets so transferred.84042

       (11) Except as otherwise provided in this division, a 84043
pre-income tax trust as defined in division (FF)(4) of section 84044
5747.01 of the Revised Code and any pass-through entity in which 84045
such pre-income tax trust owns, directly, indirectly, or 84046
constructively through related interests by common owners, more 84047
than five per cent of the ownership or equity interests. If the 84048
pre-income tax trust has made a qualifying pre-income tax trust 84049
election under division (FF)(3) of section 5747.01 of the Revised 84050
Code, then the trust and the pass-through entities in which it 84051
owns, directly, indirectly, or constructively through related 84052
interests by common owners, more than five per cent of the 84053
ownership or equity interests, shall not be excluded persons for 84054
purposes of the tax imposed under section 5751.02 of the Revised 84055
Code.84056

       (F) Except as otherwise provided in divisions (F)(2), (3), 84057
(4), and (5) of this section, "gross receipts" means the total 84058
amount realized by a person, without deduction for the cost of 84059
goods sold or other expenses incurred, that contributes to the 84060
production of gross income of the person, including the fair 84061
market value of any property and any services received, and any 84062
debt transferred or forgiven as consideration.84063

       (1) The following are examples of gross receipts:84064

       (a) Amounts realized from the sale, exchange, or other 84065
disposition of the taxpayer's property to or with another;84066

       (b) Amounts realized from the taxpayer's performance of 84067
services for another;84068

       (c) Amounts realized from another's use or possession of the 84069
taxpayer's property or capital;84070

       (d) Any combination of the foregoing amounts.84071

       (2) "Gross receipts" excludes the following amounts:84072

       (a) Interest income except interest on credit sales;84073

       (b) Dividends and distributions from corporations, and 84074
distributive or proportionate shares of receipts and income from a 84075
pass-through entity as defined under section 5733.04 of the 84076
Revised Code;84077

       (c) Receipts from the sale, exchange, or other disposition of 84078
an asset described in section 1221 or 1231 of the Internal Revenue 84079
Code, without regard to the length of time the person held the 84080
asset;84081

       (d) Proceeds received attributable to the repayment, 84082
maturity, or redemption of the principal of a loan, bond, mutual 84083
fund, certificate of deposit, or marketable instrument;84084

       (e) The principal amount received under a repurchase 84085
agreement or on account of any transaction properly characterized 84086
as a loan to the person;84087

       (f) Contributions received by a trust, plan, or other 84088
arrangement, any of which is described in section 501(a) of the 84089
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter 84090
1, Subchapter (D) of the Internal Revenue Code applies;84091

       (g) Compensation, whether current or deferred, and whether in 84092
cash or in kind, received or to be received by an employee, former 84093
employee, or the employee's legal successor for services rendered 84094
to or for an employer, including reimbursements received by or for 84095
an individual for medical or education expenses, health insurance 84096
premiums, or employee expenses, or on account of a dependent care 84097
spending account, legal services plan, any cafeteria plan 84098
described in section 125 of the Internal Revenue Code, or any 84099
similar employee reimbursement;84100

       (h) Proceeds received from the issuance of the taxpayer's own 84101
stock, options, warrants, puts, or calls, or from the sale of the 84102
taxpayer's treasury stock;84103

       (i) Proceeds received on the account of payments from life 84104
insurance policies;84105

       (j) Gifts or charitable contributions received, membership 84106
dues received, and payments received for educational courses, 84107
meetings, meals, or similar payments to a trade, professional, or 84108
other similar association; fundraising receipts received by any 84109
person when any excess receipts are donated or used exclusively 84110
for charitable purposes; and proceeds received by a nonprofit 84111
organization including proceeds realized with regard to its 84112
unrelated business taxable income;84113

       (k) Damages received as the result of litigation in excess of 84114
amounts that, if received without litigation, would be gross 84115
receipts;84116

       (l) Property, money, and other amounts received or acquired 84117
by an agent on behalf of another in excess of the agent's 84118
commission, fee, or other remuneration;84119

       (m) Tax refunds and other tax benefit recoveries;84120

       (n) Pension reversions;84121

       (o) Contributions to capital;84122

       (p) Sales or use taxes collected as a vendor or an 84123
out-of-state seller on behalf of the taxing jurisdiction from a 84124
consumer;84125

       (q) In the case of receipts from the sale of cigarettes or 84126
tobacco products by a wholesale dealer, retail dealer, 84127
distributor, manufacturer, or seller, all as defined in section 84128
5743.01 of the Revised Code, an amount equal to the federal and 84129
state excise taxes paid by any person on or for such cigarettes or 84130
tobacco products under subtitle E of the Internal Revenue Code or 84131
Chapter 5743. of the Revised Code;84132

       (r) In the case of receipts from the sale of motor fuel by a 84133
licensed motor fuel dealer, licensed retail dealer, or licensed 84134
permissive motor fuel dealer, all as defined in section 5735.01 of 84135
the Revised Code, an amount equal to federal and state excise 84136
taxes paid by any person on such motor fuel under section 4081 of 84137
the Internal Revenue Code or Chapter 5735. of the Revised Code;84138

       (s) In the case of receipts from the sale of beer or 84139
intoxicating liquor, as defined in section 4301.01 of the Revised 84140
Code, by a person holding a permit issued under Chapter 4301. or 84141
4303. of the Revised Code, an amount equal to federal and state 84142
excise taxes paid by any person on or for such beer or 84143
intoxicating liquor under subtitle E of the Internal Revenue Code 84144
or Chapter 4301. or 4305. of the Revised Code;84145

        (t) Receipts realized by a new motor vehicle dealer or used 84146
motor vehicle dealer, as defined in section 4517.01 of the Revised 84147
Code, from the sale or other transfer of a motor vehicle, as 84148
defined in that section, to another motor vehicle dealer for the 84149
purpose of resale by the transferee motor vehicle dealer, but only 84150
if the sale or other transfer was based upon the transferee's need 84151
to meet a specific customer's preference for a motor vehicle;84152

       (u) Receipts from a financial institution described in 84153
division (E)(3) of this section for services provided to the 84154
financial institution in connection with the issuance, processing, 84155
servicing, and management of loans or credit accounts, if such 84156
financial institution and the recipient of such receipts have at 84157
least fifty per cent of their ownership interests owned or 84158
controlled, directly or constructively through related interests, 84159
by common owners;84160

       (v) Receipts realized from administering anti-neoplastic 84161
drugs and other cancer chemotherapy, biologicals, therapeutic 84162
agents, and supportive drugs in a physician's office to patients 84163
with cancer;84164

       (w) Funds received or used by a mortgage broker that is not a 84165
dealer in intangibles, other than fees or other consideration, 84166
pursuant to a table-funding mortgage loan or warehouse-lending 84167
mortgage loan. Terms used in division (F)(2)(x) of this section 84168
have the same meanings as in section 1322.01 of the Revised Code, 84169
except "mortgage broker" means a person assisting a buyer in 84170
obtaining a mortgage loan for a fee or other consideration paid by 84171
the buyer or a lender, or a person engaged in table-funding or 84172
warehouse-lending mortgage loans that are first lien mortgage 84173
loans.84174

        (x) Property, money, and other amounts received by a 84175
professional employer organization, as defined in 4125.01 of the 84176
Revised Code, from a client employer, as defined in that section, 84177
in excess of the administrative fee charged by the professional 84178
employer organization to the client employer;84179

       (y) In the case of amounts retained as commissions by a 84180
permit holder under Chapter 3769. of the Revised Code, an amount 84181
equal to the amounts specified under that chapter that must be 84182
paid to or collected by the tax commissioner as a tax and the 84183
amounts specified under that chapter to be used as purse money;84184

       (z) Any receipts for which the tax imposed by this chapter is 84185
prohibited by the constitution or laws of the United States or the 84186
constitution of this state.84187

        (3) In the case of a taxpayer when acting as a real estate 84188
broker, "gross receipts" includes only the portion of any fee for 84189
the service of a real estate broker, or service of a real estate 84190
salesperson associated with that broker, that is retained by the 84191
broker and not paid to an associated real estate salesperson or 84192
another real estate broker. For the purposes of this division, 84193
"real estate broker" and "real estate salesperson" have the same 84194
meanings as in section 4735.01 of the Revised Code.84195

       (4) A taxpayer's method of accounting for gross receipts for 84196
a tax period shall be the same as the taxpayer's method of 84197
accounting for federal income tax purposes for the taxpayer's 84198
federal taxable year that includes the tax period. If a taxpayer's 84199
method of accounting for federal income tax purposes changes, its 84200
method of accounting for gross receipts under this chapter shall 84201
be changed accordingly.84202

        In calculating gross receipts, the following shall be 84203
deducted:84204

       (a) Cash discounts allowed and taken;84205

       (b) Returns and allowances;84206

       (c) Bad debts from receipts upon which the tax imposed by 84207
this chapter was paid in a prior quarterly tax payment period. For 84208
the purposes of this division, "bad debts" mean any debts that 84209
have become worthless or uncollectible between the preceding and 84210
current quarterly tax payment periods, have been uncollected for 84211
at least six months, and may be claimed as a deduction under 84212
section 166 of the Internal Revenue Code and the regulations 84213
adopted pursuant thereto, or that could be claimed as such if the 84214
taxpayer kept its accounts on the accrual basis. "Bad debts" does 84215
not include uncollectible amounts on property that remains in the 84216
possession of the taxpayer until the full purchase price is paid, 84217
expenses in attempting to collect any account receivable or for 84218
any portion of the debt recovered, and repossessed property;84219

       (d) Any amount realized from the sale of an account 84220
receivable but only to the extent the receipts from the underlying 84221
transaction giving rise to the account receivable were included in 84222
the gross receipts of the taxpayer.84223

       (G) "Taxable gross receipts" means gross receipts sitused to 84224
this state under section 5751.033 of the Revised Code.84225

       (H) A person has "substantial nexus with this state" if any 84226
of the following applies. The person:84227

       (1) Owns or uses a part or all of its capital in this state;84228

       (2) Holds a certificate of compliance with the laws of this 84229
state authorizing the person to do business in this state;84230

       (3) Has bright-line presence in this state;84231

       (4) Otherwise has nexus with this state to an extent that the 84232
person can be required to remit the tax imposed under this chapter 84233
under the constitution of the United States.84234

       (I) A person has "bright-line presence" in this state for a 84235
reporting period and for the remaining portion of the calendar 84236
year if any of the following applies. The person:84237

       (1) Has at any time during the calendar year property in this 84238
state with an aggregate value of at least fifty thousand dollars. 84239
For the purpose of division (I)(1) of this section, owned property 84240
is valued at original cost and rented property is valued at eight 84241
times the net annual rental charge.84242

       (2) Has during the calendar year payroll in this state of at 84243
least fifty thousand dollars. Payroll in this state includes all 84244
of the following:84245

       (a) Any amount subject to withholding by the person under 84246
section 5747.06 of the Revised Code;84247

       (b) Any other amount the person pays as compensation to an 84248
individual under the supervision or control of the person for work 84249
done in this state; and84250

       (c) Any amount the person pays for services performed in this 84251
state on its behalf by another.84252

       (3) Has during the calendar year taxable gross receipts in 84253
this state of at least five hundred thousand dollars.84254

       (4) Has at any time during the calendar year within this 84255
state at least twenty-five per cent of the person's total 84256
property, total payroll, or total sales.84257

       (5) Is domiciled in this state as an individual or for 84258
corporate, commercial, or other business purposes.84259

       (J) "Tangible personal property" has the same meaning as in 84260
section 5739.01 of the Revised Code.84261

       (K) "Internal Revenue Code" means the Internal Revenue Code 84262
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in 84263
this chapter that is not otherwise defined has the same meaning as 84264
when used in a comparable context in the laws of the United States 84265
relating to federal income taxes unless a different meaning is 84266
clearly required. Any reference in this chapter to the Internal 84267
Revenue Code includes other laws of the United States relating to 84268
federal income taxes.84269

       (L) "Calendar quarter" means a three-month period ending on 84270
the thirty-first day of March, the thirtieth day of June, the 84271
thirtieth day of September, or the thirty-first day of December.84272

       (M) "Tax period" means the calendar quarter or calendar year 84273
on the basis of which a taxpayer is required to pay the tax 84274
imposed under this chapter.84275

       (N) "Calendar year taxpayer" means a taxpayer for which the 84276
tax period is a calendar year.84277

       (O) "Calendar quarter taxpayer" means a taxpayer for which 84278
the tax period is a calendar quarter.84279

       (P) "Agent" means a person authorized by another person to 84280
act on its behalf to undertake a transaction for the other, 84281
including any of the following:84282

        (1) A person receiving a fee to sell financial instruments;84283

        (2) A person retaining only a commission from a transaction 84284
with the other proceeds from the transaction being remitted to 84285
another person;84286

        (3) A person issuing licenses and permits under section 84287
1533.13 of the Revised Code;84288

        (4) A lottery sales agent holding a valid license issued 84289
under section 3770.05 of the Revised Code;84290

        (5) A person acting as an agent of the division of liquor 84291
control under section 4301.17 of the Revised Code.84292

       (Q) "Received" includes amounts accrued under the accrual 84293
method of accounting.84294

       Sec. 5751.011.  (A) A group of two or more persons may elect 84295
to be a consolidated elected taxpayer for the purposes of this 84296
chapter if the group satisfies all of the following requirements:84297

       (1) The group elects to include all persons, including 84298
persons enumerated in divisions (E)(2) to (10) of section 5751.01 84299
of the Revised Code, having at least eighty per cent, or having at 84300
least fifty per cent, of the value of their ownership interests 84301
owned or controlled, directly or constructively through related 84302
interests, by common owners during all or any portion of the tax 84303
period, together with the common owners. At the election of the 84304
group, all foreign corporations meeting the elected ownership test 84305
shall either be included in the group or all shall be excluded 84306
from the group. The group shall notify the tax commissioner of the 84307
foregoing elections at the time of filing the initial registration 84308
required under section 5751.04 of the Revised Code. If fifty per 84309
cent of the value of a person's ownership interests is owned or 84310
controlled by each of two consolidated elected taxpayer groups 84311
formed under the fifty per cent ownership or control test, that 84312
person is a member of each group for the purposes of this section, 84313
and each group shall include in the group's taxable gross receipts 84314
fifty per cent of that person's taxable gross receipts. Otherwise, 84315
all of that person's taxable gross receipts shall be included in 84316
the taxable gross receipts of the consolidated elected taxpayer 84317
group of which the person is a member. In no event shall the 84318
ownership or control of fifty per cent of the value of a person's 84319
ownership interests by two otherwise unrelated groups form the 84320
basis for consolidating the groups into a single consolidated 84321
elected taxpayer group or permit any exclusion under division (C) 84322
of this section of taxable gross receipts between members of the 84323
two groups. Division (A)(3) of this section applies with respect 84324
to the elections described in this division.84325

       (2) The group applies to the tax commissioner for approval to 84326
be treated as a consolidated elected taxpayer pursuant to division 84327
(D) of this section.84328

       (3) The group agrees that if the commissioner approves the 84329
election, all of the following apply:84330

       (a) The group shall file reports as a single taxpayer for at 84331
least the next eight calendar quarters following the election so 84332
long as at least two or more of the members of the group meet the 84333
requirements of division (A)(1) of this section.84334

       (b) Before the expiration of the eighth such calendar 84335
quarter, the group shall notify the commissioner if it elects to 84336
cancel its designation as a consolidated elected taxpayer. If the 84337
group does not so notify the tax commissioner, the election 84338
remains in effect for another eight calendar quarters.84339

       (c) If, at any time during any of those eight calendar 84340
quarters following the election, a former member of the group no 84341
longer meets the requirements under division (A)(1) of this 84342
section, that member shall report and pay the tax imposed under 84343
this chapter separately, as a member of a combined taxpayer, or, 84344
if the former member satisfies such requirements with respect to 84345
another consolidated elected group, as a member of that 84346
consolidated elected group.84347

       (d) The group agrees to the application of division (B) of 84348
this section.84349

       (B) A group of persons making the election under this section 84350
shall report and pay tax on all of the group's taxable gross 84351
receipts even if substantial nexus with this state does not exist 84352
for one or more persons in the group.84353

       (C)(1) A consolidated elected taxpayer shall exclude taxable 84354
gross receipts between its members and taxable gross receipts 84355
received by a person enumerated in divisions (E)(2) to (10) of 84356
section 5751.01 of the Revised Code, except for taxable gross 84357
receipts received by a member described in division (E)(4) of 84358
section 5751.01 of the Revised Code that is not a qualifying 84359
dealer as defined in section 5725.24 of the Revised Code. Except 84360
as provided in division (C)(2) of this section, nothing in this 84361
section shall have the effect of excluding taxable gross receipts 84362
received from persons that are not members of the group.84363

       (2) Gross receipts related to the sale or transmission of 84364
electricity through the use of an intermediary regional 84365
transmission organization approved by the federal energy 84366
regulatory commission shall be excluded from taxable gross 84367
receipts under division (C)(1) of this section if all other 84368
requirements of that division are met, even if the receipts are 84369
from and to the same member of the group.84370

       (D) To make the election to be a consolidated elected 84371
taxpayer, a group of persons shall apply to the tax commissioner 84372
and pay the commissioner a registration fee equal to the lesser of 84373
two hundred dollars or twenty dollars for each person in the 84374
group. No additional fee shall be imposed for the addition of new 84375
members to the group once the group has remitted a fee in the 84376
amount of two hundred dollars. The application shall be filed and 84377
the fee paid before the later of the beginning of the first 84378
calendar quarter to which the election applies or November 15, 84379
2005. The fee shall be collected and used in the same manner as 84380
provided in section 5751.04 of the Revised Code.84381

       The election shall be made on a form prescribed by the tax 84382
commissioner for that purpose and shall be signed by one or more 84383
individuals with authority, separately or together, to make a 84384
binding election on behalf of all persons in the group. The tax 84385
commissioner shall approve a group's election if the group 84386
satisfies the requirements of division (A) of this section.84387

       Any person acquired or formed after the filing of the 84388
registration shall be included in the group if the person meets 84389
the requirements of division (A)(1) of this section, and the group 84390
shall notify the tax commissioner of any additions to the group 84391
with the next tax return it files with the commissioner.84392

       (E) Each member of a consolidated elected taxpayer is jointly 84393
and severally liable for the tax imposed by this chapter and any 84394
penalties or interest thereon. The tax commissioner may require 84395
one person in the group to be the taxpayer for purposes of 84396
registration and remittance of the tax, but all members of the 84397
group are subject to assessment under section 5751.09 of the 84398
Revised Code.84399

       Sec. 5751.012.  (A) All persons, other than persons 84400
enumerated in divisions (E)(2) to (10) of section 5751.01 of the 84401
Revised Code, having more than fifty per cent of the value of 84402
their ownership interest owned or controlled, directly or 84403
constructively through related interests, by common owners during 84404
all or any portion of the tax period, together with the common 84405
owners, shall be members of a combined taxpayer if those persons 84406
are not members of a consolidated elected taxpayer pursuant to an 84407
election under section 5751.011 of the Revised Code.84408

       (B) A combined taxpayer shall register, file returns, and pay 84409
taxes under this chapter as a single taxpayer.84410

       (C) A combined taxpayer shall neither exclude taxable gross 84411
receipts between its members nor from others that are not members.84412

       (D) A combined taxpayer shall pay to the tax commissioner a 84413
registration fee equal to the lesser of two hundred dollars or 84414
twenty dollars for each person in the group. No additional fee 84415
shall be imposed for the addition of new members to the group once 84416
the group has remitted a fee in the amount of two hundred dollars. 84417
The fee shall be timely paid before the later of the beginning of 84418
the first calendar quarter or November 15, 2005. The fee shall be 84419
collected and used in the same manner as provided in section 84420
5751.04 of the Revised Code.84421

       Any person acquired or formed after the filing of the 84422
registration shall be included in the group if the person meets 84423
the requirements of division (A) of this section, and the group 84424
must notify the tax commissioner of any additions with the next 84425
quarterly tax return it files with the commissioner.84426

       (E) Each member of a combined taxpayer is jointly and 84427
severally liable for the tax imposed by this chapter and any 84428
penalties or interest thereon. The tax commissioner may require 84429
one person in the group to be the taxpayer for purposes of 84430
registration and remittance of the tax, but all members of the 84431
group are subject to assessment under section 5751.09 of the 84432
Revised Code.84433

       Sec. 5751.013. (A) Except as provided in division (B) of this 84434
section:84435

        (1) A person shall include as taxable gross receipts the 84436
value of property the person transfers into this state for the 84437
person's own use within one year after the person receives the 84438
property outside this state; and84439

        (2) In the case of an elected consolidated taxpayer or a 84440
combined taxpayer, the taxpayer shall include as taxable gross 84441
receipts the value of property that any of the taxpayer's members 84442
transferred into this state for the use of any of the taxpayer's 84443
members within one year after the taxpayer receives the property 84444
outside this state.84445

        (B) Property brought into this state within one year after it 84446
is received outside this state by a person or group described in 84447
division (A)(1) or (2) of this section shall not be included as 84448
taxable gross receipts as required under those divisions if the 84449
tax commissioner ascertains that the property's receipt outside 84450
this state by the person or group followed by its transfer into 84451
this state within one year was not intended in whole or in part to 84452
avoid in whole or in part the tax imposed under this chapter.84453

        (C) The tax commissioner may adopt rules necessary to 84454
administer this section.84455

       Sec. 5751.02.  (A) For the purpose of funding the needs of 84456
this state and its local governments beginning with the tax period 84457
that commences July 1, 2005, and continuing for every tax period 84458
thereafter, there is hereby levied a commercial activity tax on 84459
each person with taxable gross receipts for the privilege of doing 84460
business in this state. For the purposes of this chapter, "doing 84461
business" means engaging in any activity, whether legal or 84462
illegal, that is conducted for, or results in, gain, profit, or 84463
income, at any time during the calendar year. Persons on which the 84464
commercial activity tax is levied include, but are not limited to, 84465
persons with substantial nexus with this state. The tax imposed 84466
under this section is not a transactional tax and is not subject 84467
to Public Law No. 86-272, 73 Stat. 555. The tax imposed under this 84468
section is in addition to any other taxes or fees imposed under 84469
the Revised Code. The tax levied under this section is imposed on 84470
the person receiving the gross receipts and is not a tax imposed 84471
directly on a purchaser. The tax imposed by this section is an 84472
annual privilege tax for the calendar year that, in the case of 84473
calendar year taxpayers, is the annual tax period and, in the case 84474
of calendar quarter taxpayers, contains all quarterly tax periods 84475
in the calendar year. A taxpayer is subject to the annual 84476
privilege tax for doing business during any portion of such 84477
calendar year.84478

       (B) The tax imposed by this section is a tax on the taxpayer 84479
and, except as otherwise provided in this section, shall not be 84480
billed or invoiced to another person. Even if the tax or any 84481
portion thereof is billed or invoiced and separately stated, such 84482
amounts remain part of the price for purposes of the sales and use 84483
taxes levied under Chapters 5739. and 5741. of the Revised Code. 84484
Nothing in division (B) of this section prohibits a person from 84485
including in the price charged for a good or service an amount 84486
sufficient to recover the tax imposed by this section or from 84487
recovering the amount of the tax imposed by this section as a 84488
combined or separately stated overhead charge or other charge as 84489
part of any legal contract, including an existing, an amended, or 84490
a future contract.84491

       Sec. 5751.03.  (A) Except as provided in divisions (B) and 84492
(D) of this section and in sections 5751.031 and 5751.032 of the 84493
Revised Code, the tax levied under this section for each tax 84494
period shall be the product of two and six-tenths mills per dollar 84495
times the remainder of the taxpayer's taxable gross receipts for 84496
the tax period after subtracting the exclusion amount provided for 84497
in division (C) of this section.84498

       (B) Notwithstanding division (C) of this section, the tax on 84499
the first one million dollars in taxable gross receipts each 84500
calendar year shall be one hundred fifty dollars. For calendar 84501
year 2006, the tax imposed under this division shall be paid not 84502
later than May 10, 2006, by both calendar year taxpayers and 84503
calendar quarter taxpayers. For calendar year 2007 and thereafter, 84504
the tax imposed under this division shall be paid with the 84505
fourth-quarter tax return or annual tax return for the prior 84506
calendar year by both calendar year taxpayers and calendar quarter 84507
taxpayers.84508

       (C)(1) Each calendar quarter taxpayer may exclude the first 84509
two hundred fifty thousand dollars of taxable gross receipts for a 84510
calendar quarter and may carry forward and apply any unused 84511
exclusion amount to the three subsequent calendar quarters. Each 84512
calendar year taxpayer may exclude the first one million dollars 84513
of taxable gross receipts for a calendar year.84514

       (2) A taxpayer switching from a calendar year tax period to a 84515
calendar quarter tax period may, for the first quarter of the 84516
change, apply the prior calendar quarter exclusion amounts to the 84517
first calendar quarter return the taxpayer files that calendar 84518
year. The tax rate shall be based on the rate imposed that 84519
calendar quarter when the taxpayer switches from a calendar year 84520
to a calendar quarter tax period.84521

       (D) There is hereby allowed a credit against the tax imposed 84522
under this chapter for each of the following calendar years if a 84523
transfer was made in the preceding calendar year from the general 84524
revenue fund to the commercial activity tax refund fund under 84525
division (D) of section 5751.032 of the Revised Code: calendar 84526
years 2008, 2010, and 2012. The credit is allowed for taxpayers 84527
that paid in full the tax imposed under this chapter for the 84528
calendar year in which the transfer was made. The amount of a 84529
taxpayer's credit equals the amount computed under division (D) of 84530
section 5751.032 of the Revised Code.84531

       Sec. 5751.031.  This section applies only to calendar quarter 84532
taxpayers. The tax imposed per calendar quarter under division (A) 84533
of section 5751.03 of the Revised Code shall be computed as 84534
follows:84535

       (A) From January 1, 2006, to March 31, 2006, by multiplying 84536
the tax otherwise due under that division by twenty-three per 84537
cent;84538

       (B) From April 1, 2006, to March 31, 2007, by multiplying the 84539
tax otherwise due under that division by forty per cent;84540

       (C) From April 1, 2007, to March 31, 2008, by multiplying the 84541
tax otherwise due under that division by sixty per cent;84542

       (D) From April 1, 2008, to March 31, 2009, by multiplying the 84543
tax otherwise due under that division by eighty per cent;84544

       (E) After March 31, 2009, one hundred per cent of the tax due 84545
under that division.84546

       Sec. 5751.032.  As used in this section:84547

       (1) "CAT" refers to the tax levied by this chapter.84548

       (2) "CAT collected" means, with regard to a CAT test period, 84549
the net amount of CAT, exclusive of registration fees, received in 84550
the period after subtracting any CAT refunded in the period.84551

       (3) "First CAT test period" means the twenty-four month 84552
period beginning July 1, 2005, and ending June 30, 2007.84553

       (4) "Second CAT test period" means the twelve-month period 84554
beginning July 1, 2008, and ending June 30, 2009.84555

       (5) "Third CAT test period" means the twelve-month period 84556
beginning July 1, 2010, and ending June 30, 2011.84557

       (B) Not later than the last day of September immediately 84558
following the end of each CAT test period, the tax commissioner 84559
shall compute the amount of CAT collected during that test period. 84560
If the amount is less than ninety per cent or greater than one 84561
hundred ten per cent of the prescribed CAT collections for that 84562
period, the commissioner shall proceed as provided in division (C) 84563
or (D) of this section, as applicable. For the purposes of 84564
division (B) of this section, the prescribed CAT collections for 84565
the CAT test periods are as follows:84566

       (1) For the first CAT test period, eight hundred fifteen 84567
million dollars;84568

       (2) For the second CAT test period, one billion one hundred 84569
ninety million dollars less any amount credited to the commercial 84570
activity tax reduction fund with regard to the first CAT test 84571
period;84572

       (3) For the third CAT test period, one billion six hundred 84573
ten million dollars less any amount credited to the commercial 84574
activity tax reduction fund with regard to the second CAT test 84575
period.84576

       (C)(1) If the amount of CAT collected during a CAT test 84577
period is less than ninety per cent of the prescribed CAT 84578
collections for that test period, the tax commissioner shall 84579
determine a new tax rate equal to the tax rate that would have 84580
yielded the prescribed CAT collections during that test period. 84581
The tax rate shall be the rate that would have to be imposed under 84582
division (A) of section 5751.03 of the Revised Code before any 84583
applicable phase-in percentages under section 5751.031 of the 84584
Revised Code or otherwise provided by law to yield the prescribed 84585
CAT collection after applying any applicable phase-in percentages.84586

        (2) If the amount of CAT collected during a CAT test period 84587
exceeds one hundred ten per cent of the prescribed CAT collections 84588
for that test period, the tax commissioner shall determine a new 84589
tax rate equal to the tax rate that would have yielded the 84590
prescribed CAT collections during that test period less one-half 84591
of the amount of the excess that was certified to the director of 84592
budget and management for the test period under division (D) of 84593
this section. The tax rate shall be the rate that would have to be 84594
imposed under division (A) of section 5751.03 of the Revised Code 84595
before any applicable phase-in percentages under section 5751.031 84596
of the Revised Code or otherwise provided by law to yield the 84597
prescribed CAT collection after applying any applicable phase-in 84598
percentages.84599

       (3) A new tax rate computed under division (C)(1) or (2) of 84600
this section shall be expressed as a number of mills per dollar, 84601
rounded to the nearest one-hundredth of one mill. The rate shall 84602
be rounded upward by one-hundredth of one mill only if the next 84603
decimal digit is five or more.84604

       (4) Not later than the last day of September following the 84605
end of the CAT test period on the basis of which a new tax rate is 84606
computed, the tax commissioner shall certify the new tax rate to 84607
the governor, the president of the senate, the speaker of the 84608
house of representatives, and all other members of the general 84609
assembly. The commissioner shall publish the new tax rate by 84610
journal entry and provide notice of the new tax rate to taxpayers. 84611
The new tax rate shall be the rate imposed under division (A) of 84612
section 5751.03 of the Revised Code beginning with the ensuing 84613
calendar year, and is subject to any applicable phase-in 84614
percentages provided for under section 5751.031 of the Revised 84615
Code.84616

       (D) If the amount of CAT collected during a CAT test period 84617
exceeds one hundred ten per cent of the prescribed CAT collections 84618
for that test period, the tax commissioner shall certify the 84619
excess amount to the director of budget and management not later 84620
than the last day of September immediately following the end of 84621
that test period. The director shall forthwith transfer from the 84622
general revenue fund one-half of the amount of the excess so 84623
certified to the commercial activity tax refund fund, which is 84624
hereby created in the state treasury, and the remaining one-half 84625
of the amount of the excess to the budget stabilization fund. All 84626
money credited to the commercial activity tax refund fund shall be 84627
applied to reimburse the general revenue fund, school district 84628
tangible property tax replacement fund, and local government 84629
tangible property tax replacement fund for the diminution in 84630
revenue caused by the credit provided under division (D) of 84631
section 5751.03 of the Revised Code. On or before the last day of 84632
May, August, and October of the calendar year that begins after 84633
the end of the test period, and on or before the last day of 84634
February of the following calendar year, the director of budget 84635
and management shall transfer one-fourth of the amount that had 84636
been transferred to the commercial activity tax refund fund to 84637
each of those funds in the proportions specified under division 84638
(B) of section 5751.21 of the Revised Code.84639

       In the calendar year that begins immediately after the year 84640
in which a transfer is made to the commercial activity tax refund 84641
fund, the tax commissioner shall compute the amount to be 84642
credited, under division (D) of section 5751.03 of the Revised 84643
Code, to each taxpayer that paid in full the tax imposed under 84644
this chapter for the calendar year in which the transfer was made. 84645
The credit allowed to each such taxpayer shall equal the amount 84646
transferred to the commercial activity tax refund fund multiplied 84647
by a fraction, the numerator of which is the amount of tax paid by 84648
that taxpayer for that calendar year and the denominator of which 84649
is the total of the taxes paid by all such taxpayers for which the 84650
credit is allowed. The credit applies only to the calendar year 84651
that begins immediately after the year in which a transfer is made 84652
to the commercial activity tax refund fund under this division."84653

       (E) It is the intent of the General Assembly to conduct a 84654
review of the prescribed CAT collections and rate adjustments 84655
provided for under divisions (A) to (D) of this section every two 84656
years in conjunction with its biennial budget deliberations, and 84657
to establish lower prescribed CAT collections or reduce the rate 84658
of tax levied under this chapter on the basis of the following 84659
three factors:84660

       (1) The revenue yield of the tax;84661

       (2) The condition of the Ohio economy;84662

       (3) Savings realized by ongoing reform to medicaid and other 84663
policy initiatives.84664

       Sec. 5751.033.  For the purposes of this chapter, gross 84665
receipts shall be sitused to this state as follows:84666

       (A) Gross rents and royalties from real property located in 84667
this state shall be sitused to this state.84668

       (B) Gross rents and royalties from tangible personal property 84669
shall be sitused to this state to the extent the tangible personal 84670
property is located or used in this state.84671

       (C) Gross receipts from the sale of electricity and electric 84672
transmission and distribution services shall be sitused to this 84673
state in the manner provided under section 5733.059 of the Revised 84674
Code.84675

       (D) Gross receipts from the sale of real property located in 84676
this state shall be sitused to this state.84677

       (E) Gross receipts from the sale of tangible personal 84678
property shall be sitused to this state if the property is 84679
received in this state by the purchaser. In the case of delivery 84680
of tangible personal property by common carrier or by other means 84681
of transportation, the place at which such property is ultimately 84682
received after all transportation has been completed shall be 84683
considered the place where the purchaser receives the property. 84684
For purposes of this section, the phrase "delivery of tangible 84685
personal property by common carrier or by other means of 84686
transportation" includes the situation in which a purchaser 84687
accepts the property in this state and then transports the 84688
property directly or by other means to a location outside this 84689
state. Direct delivery in this state, other than for purposes of 84690
transportation, to a person or firm designated by a purchaser 84691
constitutes delivery to the purchaser in this state, and direct 84692
delivery outside this state to a person or firm designated by a 84693
purchaser does not constitute delivery to the purchaser in this 84694
state, regardless of where title passes or other conditions of 84695
sale.84696

       (F) Gross receipts from the sale, exchange, disposition, or 84697
other grant of the right to use trademarks, trade names, patents, 84698
copyrights, and similar intellectual property shall be sitused to 84699
this state to the extent that the receipts are based on the amount 84700
of use of the property in this state. If the receipts are not 84701
based on the amount of use of the property, but rather on the 84702
right to use the property, and the payor has the right to use the 84703
property in this state, then the receipts from the sale, exchange, 84704
disposition, or other grant of the right to use such property 84705
shall be sitused to this state to the extent the receipts are 84706
based on the right to use the property in this state.84707

       (G) Gross receipts from the sale of transportation services 84708
by a common or contract carrier shall be sitused to this state in 84709
proportion to the mileage traveled by the carrier during the tax 84710
period on roadways, waterways, airways, and railways in this state 84711
to the mileage traveled by the carrier during the tax period on 84712
roadways, waterways, airways, and railways everywhere. With prior 84713
written approval of the tax commissioner, a common or contract 84714
carrier may use an alternative situsing procedure for 84715
transportation services.84716

        (H) Gross receipts from dividends, interest, and other 84717
sources of income from financial instruments described in division 84718
(F)(4), (5), (6), (7), (8), (9), (10), (11), and (13) of section 84719
5733.056 of the Revised Code shall be sitused to this state in 84720
accordance with the situsing provisions set forth in those 84721
divisions. When applying the provisions of divisions (F)(6), (8), 84722
and (13) of section 5733.056 of the Revised Code, "gross receipts" 84723
shall be substituted for "net gains" wherever "net gains" appears 84724
in those divisions. Nothing in this division limits or modifies 84725
the exclusions enumerated in divisions (E) and (F)(2) of section 84726
5751.01 of the Revised Code. The tax commissioner may promulgate 84727
rules to further specify the manner in which to situs gross 84728
receipts subject to this division.84729

        (I) Gross receipts from the sale of all other services, and 84730
all other gross receipts not otherwise sitused under this section, 84731
shall be sitused to this state in the proportion that the 84732
purchaser's benefit in this state with respect to what was 84733
purchased bears to the purchaser's benefit everywhere with respect 84734
to what was purchased. The physical location where the purchaser 84735
ultimately uses or receives the benefit of what was purchased 84736
shall be paramount in determining the proportion of the benefit in 84737
this state to the benefit everywhere.84738

       (J) If the situsing provisions of divisions (A) to (H) of 84739
this section do not fairly represent the extent of a person's 84740
activity in this state, the person may request, or the tax 84741
commissioner may require or permit, an alternative method. Such 84742
request by a person must be made within the applicable statute of 84743
limitations set forth in this chapter.84744

       (K) The tax commissioner may adopt rules to provide 84745
additional guidance to the application of this section, and 84746
provide alternative methods of situsing gross receipts that apply 84747
to all persons, or subset of persons, that are engaged in similar 84748
business or trade activities.84749

       Sec. 5751.04. (A) Not later than the later of November 15, 84750
2005, or thirty days after a person first has more than one 84751
hundred fifty thousand dollars in taxable gross receipts in a 84752
calendar year, each person subject to this chapter shall register 84753
with the tax commissioner on the form prescribed by the 84754
commissioner. The form shall include the following:84755

       (1) The person's name;84756

       (2) If applicable, the name of the state or country under the 84757
laws of which the person is incorporated;84758

       (3) If applicable, the location of a person's principal 84759
office, and, in the case of a foreign corporation, the location of 84760
its principal place of business in this state and the name and 84761
address of the officer or agent of the corporation in charge of 84762
the business in this state;84763

       (4) If applicable, the names of the person's president, 84764
secretary, treasurer, and statutory agent designated pursuant to 84765
section 1703.041 of the Revised Code, with the post office address 84766
of each;84767

       (5) The kind of business in which the person is engaged, 84768
including applicable business or industry codes;84769

       (6) The date of the beginning of the person's annual 84770
accounting period that includes the first day of January of the 84771
taxable calendar year;84772

       (7) If the person is not a corporation or a sole proprietor, 84773
the names of all the person's owners and officers;84774

       (8) The person's federal employer identification number or 84775
numbers or, if those are not applicable, the person's social 84776
security number or equivalent;84777

       (9) All other information that the commissioner requires to 84778
administer and enforce this chapter.84779

       (B) Except as otherwise provided in this division, each 84780
person registering with the tax commissioner as required by 84781
division (A) of this section shall pay a registration fee. The fee 84782
shall be in the amount of fifteen dollars if a person registers 84783
electronically and twenty dollars if a person does not register 84784
electronically. The registration fee shall be paid in the manner 84785
prescribed by the tax commissioner at the same time the 84786
registration is due if a person is subject to the tax imposed 84787
under this chapter before January 1, 2006. If a person first 84788
becomes subject to the tax after that date, the registration fee 84789
is payable with the first tax period return the person is required 84790
to file as prescribed by section 5751.051 of the Revised Code. If 84791
a registration fee is not paid when due, an additional fee is 84792
imposed in the amount of one hundred dollars per month or part 84793
thereof the fee is outstanding, not to exceed one thousand 84794
dollars. The tax commissioner may abate the additional fee. The 84795
fee imposed under this division may be assessed in the same manner 84796
as the tax imposed under this chapter. Proceeds from the fee shall 84797
be credited to the commercial activity tax administrative fund, 84798
which is hereby created in the state treasury for the commissioner 84799
to use in implementing and administering the tax imposed under 84800
this chapter.84801

       No registration fee is payable by a person for a calendar 84802
year if the person first begins business operations in this state 84803
after the thirtieth day of November of that calendar year or if 84804
the person's taxable gross receipts for the calendar year exceed 84805
one hundred fifty thousand dollars but do not exceed one hundred 84806
fifty thousand dollars as of the first day of December of the 84807
calendar year.84808

       Registration fees paid under this section, excluding any 84809
additional fee imposed for late payment of the registration fee, 84810
shall be credited against the first payment of tax payable under 84811
section 5751.03 of the Revised Code after the registration fee is 84812
paid.84813

       (C) If a person that has registered under this section is no 84814
longer a taxpayer subject to this chapter, including no longer 84815
being a taxpayer because of the application of division (E)(1) of 84816
section 5751.01 of the Revised Code, the person shall notify the 84817
commissioner that the person's registration should be cancelled.84818

       Sec. 5751.05.  (A) If a person subject to this chapter 84819
anticipates that the person's taxable gross receipts will be less 84820
than one million dollars in calendar year 2006, the person may 84821
elect to be a calendar year taxpayer. If a person is not required 84822
to be registered under this section for calendar year 2006 and 84823
anticipates that the person's taxable gross receipts will be less 84824
than one million dollars in the first calendar year the person is 84825
required to register under this section, the person may elect to 84826
be a calendar year taxpayer.84827

       (B) Any person that is a calendar year taxpayer pursuant to 84828
an election under division (A) of this section shall become a 84829
calendar quarter taxpayer in the subsequent calendar year if the 84830
person's taxable gross receipts for the prior calendar year are 84831
one million dollars or more, and shall remain a calendar quarter 84832
taxpayer until the person notifies the tax commissioner, and 84833
receives approval in writing from the tax commissioner, to switch 84834
back to being a calendar year taxpayer. Nothing in this division 84835
prohibits a person that has elected to be a calendar year taxpayer 84836
from notifying the tax commissioner, using the procedures 84837
prescribed by the commissioner, that it is switching back to being 84838
a calendar quarter taxpayer.84839

       (C) Any taxpayer that is not a calendar year taxpayer 84840
pursuant to this section is a calendar quarter taxpayer. The tax 84841
commissioner may grant written approval for a calendar quarter 84842
taxpayer to use an alternative reporting schedule or estimate the 84843
amount of tax due for a calendar quarter if the taxpayer 84844
demonstrates to the commissioner the need for such a deviation. 84845
The commissioner may adopt a rule to apply division (C) of this 84846
section to a group of taxpayers without the taxpayers having to 84847
receive written approval from the commissioner.84848

       Sec. 5751.051.  (A)(1) Not later than forty days after the 84849
end of each calendar quarter, every taxpayer other than a calendar 84850
year taxpayer shall file with the tax commissioner a tax return in 84851
such form as the commissioner prescribes. The return shall 84852
include, but is not limited to, the amount of the taxpayer's 84853
taxable gross receipts for the calendar quarter and shall indicate 84854
the amount of tax due under section 5751.03 of the Revised Code 84855
for the calendar quarter.84856

       (2)(a) Subject to division (C) of section 5751.05 of the 84857
Revised Code, a calendar quarter taxpayer shall report the taxable 84858
gross receipts for that calendar quarter.84859

       (b) With respect to taxable gross receipts incorrectly 84860
reported in a calendar quarter that has a lower tax rate, the tax 84861
shall be computed at the tax rate in effect for the quarterly 84862
return in which such receipts should have been reported. Nothing 84863
in division (A)(2)(b) of this section prohibits a taxpayer from 84864
filing an application for refund under section 5751.08 of the 84865
Revised Code with regard to the incorrect reporting of taxable 84866
gross receipts discovered after filing the annual return described 84867
in division (A)(3) of this section.84868

       A tax return shall not be deemed to be an incorrect reporting 84869
of taxable gross receipts for the purposes of division (A)(2)(b) 84870
of this section if the return reflects between ninety-five and one 84871
hundred five per cent of the actual taxable gross receipts for the 84872
calendar quarter.84873

       (3) The tax return filed for the fourth calendar quarter of a 84874
calendar year is the annual return for the privilege tax imposed 84875
by this chapter. Such return shall report any additional taxable 84876
gross receipts not previously reported in the calendar year and 84877
shall adjust for any over-reported taxable gross receipts in the 84878
calendar year. If the taxpayer ceases to be a taxpayer before the 84879
end of the calendar year, the last return the taxpayer is required 84880
to file shall be the annual return for the taxpayer and the 84881
taxpayer shall report any additional taxable gross receipts not 84882
previously reported in the calendar year and shall adjust for any 84883
over-reported taxable gross receipts in the calendar year.84884

       (4) Because the tax imposed by this chapter is a privilege 84885
tax, the tax rate with respect to taxable gross receipts for a 84886
calendar quarter is not fixed until the end of the measurement 84887
period for each calendar quarter. Subject to division (A)(2)(b) of 84888
this section, the total amount of taxable gross receipts reported 84889
for a given calendar quarter shall be subject to the tax rate in 84890
effect in that quarter.84891

       (5) Not later than forty days after the end of each calendar 84892
year, every calendar year taxpayer shall file with the tax 84893
commissioner a tax return in such form as the commissioner 84894
prescribes. The return shall include, but is not limited to, the 84895
amount of the taxpayer's taxable gross receipts for the calendar 84896
year and shall indicate the amount of tax due under section 84897
5751.03 of the Revised Code for the calendar year.84898

       (B) A person that first becomes subject to this chapter 84899
during a calendar quarter on or after January 1, 2006, shall pay 84900
the minimum tax imposed under division (B) of section 5751.03 of 84901
the Revised Code along with the registration fee imposed under 84902
this section on or before the day the return is required to be 84903
filed for that quarter under division (A)(1) of this section, 84904
regardless of whether the person elects to be a calendar year 84905
taxpayer under section 5751.05 of the Revised Code.84906

       The amount of the minimum tax shall be reduced to 84907
seventy-five dollars if the registration is timely filed after the 84908
first day of May and before the first day of December of the 84909
calendar year.84910

       Sec. 5751.06.  (A) Any taxpayer that fails to file a return 84911
or pay the full amount of the tax due within the period prescribed 84912
therefor under this chapter shall pay a penalty in an amount not 84913
exceeding the greater of fifty dollars or ten per cent of the tax 84914
required to be paid for the tax period.84915

       (B)(1) If any additional tax is found to be due, the tax 84916
commissioner may impose an additional penalty of up to fifteen per 84917
cent on the additional tax found to be due.84918

       (2) Any delinquent payments of the tax made after a taxpayer 84919
is notified of an audit or a tax discrepancy by the commissioner 84920
is subject to the penalty imposed by division (B) of this section. 84921
If an assessment is issued under section 5751.10 of the Revised 84922
Code in connection with such delinquent payments, the payments 84923
shall be credited to the assessment.84924

       (C) After calendar year 2008, the tax commissioner may impose 84925
an additional penalty against a taxpayer that fails to switch to 84926
being a calendar quarter taxpayer at the time it had over two 84927
million in taxable gross receipts in the calendar year, as 84928
required under section 5751.04 of the Revised Code. The penalty 84929
may be imposed in an amount not to exceed ten per cent of the tax 84930
due above two million dollars in taxable gross receipts for the 84931
calendar year. Any penalty imposed under this division is in 84932
addition to any other penalties imposed under this section.84933

       (D) If the tax commissioner notifies a person required to 84934
register under section 5751.05 of the Revised Code of such 84935
requirement and of the requirement to remit the tax due under this 84936
chapter, and the person fails to so register and remit the tax 84937
within sixty days after such notice, the tax commissioner may 84938
impose an additional penalty of up to thirty-five per cent of the 84939
tax due. The penalty imposed under this division is in addition to 84940
any other penalties imposed under this section.84941

       (E) The tax commissioner may collect any penalty or interest 84942
imposed by this section in the same manner as the tax imposed 84943
under this chapter. Penalties and interest so collected shall be 84944
considered as revenue arising from the tax imposed under this 84945
chapter.84946

       (F) The tax commissioner may abate all or a portion of any 84947
penalties imposed under this section and may adopt rules governing 84948
such abatements.84949

       (G) If any tax due is not timely paid in accordance with this 84950
chapter, the taxpayer shall pay interest, calculated at the rate 84951
per annum prescribed by section 5703.47 of the Revised Code, from 84952
the date the tax payment was due to the date of payment or to the 84953
date an assessment was issued, whichever occurs first.84954

       (H) The tax commissioner may impose a penalty of up to ten 84955
per cent for any additional tax that is due under division 84956
(A)(2)(b) of section 5751.051 of the Revised Code from a taxpayer 84957
incorrectly reporting its taxable gross receipts.84958

       Sec. 5751.07.  (A) Any person required to file returns for a 84959
calendar quarter shall remit each tax payment, and, if required by 84960
the tax commissioner, file the tax return or the annual report, 84961
electronically. The commissioner may require taxpayers to use the 84962
Ohio business gateway as defined in section 718.051 of the Revised 84963
Code to file returns and remit the tax, or may provide another 84964
means for taxpayers to file and remit the tax electronically.84965

       (B) A person required by this section to remit taxes or file 84966
returns electronically may apply to the tax commissioner, on the 84967
form prescribed by the commissioner, to be excused from that 84968
requirement. The commissioner may excuse a person from the 84969
requirements of this division for good cause.84970

       (C)(1) If a person required to remit taxes or file a return 84971
electronically under this section fails to do so, the commissioner 84972
may impose a penalty not to exceed the following:84973

       (a) For either of the first two calendar quarters the person 84974
so fails, five per cent of the amount of the payment that was 84975
required to be remitted;84976

       (b) For the third and any subsequent calendar quarters the 84977
person so fails, ten per cent of the amount of the payment that 84978
was required to be remitted.84979

       (2) The penalty imposed under division (C)(1) of this section 84980
is in addition to any other penalty imposed under this chapter and 84981
shall be considered as revenue arising from the tax imposed under 84982
this chapter. A penalty may be collected by assessment in the 84983
manner prescribed by section 5751.09 of the Revised Code. The tax 84984
commissioner may abate all or a portion of such a penalty.84985

       Sec. 5751.08.  (A) An application for refund to the taxpayer 84986
of the amount of taxes imposed under this chapter that are 84987
overpaid, paid illegally or erroneously, or paid on any illegal or 84988
erroneous assessment shall be filed with the tax commissioner, on 84989
the form prescribed by the commissioner, within four years after 84990
the date of the illegal or erroneous payment of the tax. The 84991
applicant shall provide the amount of the requested refund along 84992
with the claimed reasons for, and documentation to support, the 84993
issuance of a refund.84994

       (B) On the filing of the refund application, the tax 84995
commissioner shall determine the amount of refund to which the 84996
applicant is entitled. If the amount is not less than that 84997
claimed, the commissioner shall certify the amount to the director 84998
of budget and management and treasurer of state for payment from 84999
the tax refund fund created under section 5703.052 of the Revised 85000
Code. If the amount is less than that claimed, the commissioner 85001
shall proceed in accordance with section 5703.70 of the Revised 85002
Code.85003

       (C) Interest on a refund applied for under this section, 85004
computed at the rate provided for in section 5703.47 of the 85005
Revised Code, shall be allowed from the later of the date the tax 85006
was paid or when the tax payment was due.85007

       (D) A calendar quarter taxpayer with more than one million 85008
dollars in taxable gross receipts in a calendar year other than 85009
calendar year 2005 and that is not able to exclude one million 85010
dollars in taxable gross receipts because of the operation of the 85011
taxpayer's business in that calendar year may file for a refund 85012
under this section to obtain the full exclusion of one million 85013
dollars in taxable gross receipts for that calendar year.85014

       (E) No person with an active registration as a taxpayer under 85015
this chapter may claim a refund under this section for the tax 85016
imposed under division (B) of section 5751.03 of the Revised Code 85017
unless the person cancelled the registration before the tenth day 85018
of February of the current calendar year pursuant to division (C) 85019
of section 5751.04 of the Revised Code.85020

       (F) Except as provided in section 5751.091 of the Revised 85021
Code, the tax commissioner may, with the consent of the taxpayer, 85022
provide for the crediting against tax due for a tax year the 85023
amount of any refund due the taxpayer under this chapter for a 85024
preceding tax year.85025

       Sec. 5751.081.  As used in this section, "debt to this state" 85026
means unpaid taxes due the state, unpaid workers' compensation 85027
premiums due under section 4123.35 of the Revised Code, unpaid 85028
unemployment compensation contributions due under section 4141.25 85029
of the Revised Code, unpaid unemployment compensation payment in 85030
lieu of contribution under section 4141.241 of the Revised Code, 85031
unpaid fee payable to the state or to the clerk of courts pursuant 85032
to section 4505.06 of the Revised Code, incorrect medical 85033
assistance payments under section 5111.02 of the Revised Code, or 85034
any unpaid charge, penalty, or interest arising from any of the 85035
foregoing.85036

       If a taxpayer entitled to a refund under section 5751.08 of 85037
the Revised Code owes any debt to this state, the amount 85038
refundable may be applied in satisfaction of the debt. If the 85039
amount refundable is less than the amount of the debt, it may be 85040
applied in partial satisfaction of the debt. If the amount 85041
refundable is greater than the amount of the debt, the amount 85042
remaining after satisfaction of the debt shall be refunded. This 85043
section applies only to debts that have become final. For the 85044
purposes of this section, a debt becomes final when, under the 85045
applicable law, any time provided for petition for reassessment, 85046
request for reconsideration, or other appeal of the legality or 85047
validity of the amount giving rise to the debt expires without an 85048
appeal having been filed in the manner provided by law.85049

       Sec. 5751.09.  (A) The tax commissioner may make an 85050
assessment, based on any information in the commissioner's 85051
possession, against any person that fails to file a return or pay 85052
any tax as required by this chapter. The commissioner shall give 85053
the person assessed written notice of the assessment as provided 85054
in section 5703.37 of the Revised Code. With the notice, the 85055
commissioner shall provide instructions on the manner in which to 85056
petition for reassessment and request a hearing with respect to 85057
the petition.85058

       (B) Unless the person assessed, within sixty days after 85059
service of the notice of assessment, files with the tax 85060
commissioner, either personally or by certified mail, a written 85061
petition signed by the person or the person's authorized agent 85062
having knowledge of the facts, the assessment becomes final, and 85063
the amount of the assessment is due and payable from the person 85064
assessed to the treasurer of state. The petition shall indicate 85065
the objections of the person assessed, but additional objections 85066
may be raised in writing if received by the commissioner prior to 85067
the date shown on the final determination.85068

       If a petition for reassessment has been properly filed, the 85069
commissioner shall proceed under section 5703.60 of the Revised 85070
Code.85071

       (C)(1) After an assessment becomes final, if any portion of 85072
the assessment, including accrued interest, remains unpaid, a 85073
certified copy of the tax commissioner's entry making the 85074
assessment final may be filed in the office of the clerk of the 85075
court of common pleas in the county in which the person resides or 85076
has its principal place of business in this state, or in the 85077
office of the clerk of court of common pleas of Franklin county.85078

       (2) Immediately upon the filing of the entry, the clerk shall 85079
enter judgment for the state against the person assessed in the 85080
amount shown on the entry. The judgment may be filed by the clerk 85081
in a loose-leaf book entitled, "special judgments for the 85082
commercial activity tax" and shall have the same effect as other 85083
judgments. Execution shall issue upon the judgment at the request 85084
of the tax commissioner, and all laws applicable to sales on 85085
execution shall apply to sales made under the judgment.85086

       (3) The portion of the assessment not paid within sixty days 85087
after the day the assessment was issued shall bear interest at the 85088
rate per annum prescribed by section 5703.47 of the Revised Code 85089
from the day the tax commissioner issues the assessment until it 85090
is paid. Interest shall be paid in the same manner as the tax and 85091
may be collected by the issuance of an assessment under this 85092
section.85093

       (D) If the tax commissioner believes that collection of the 85094
tax will be jeopardized unless proceedings to collect or secure 85095
collection of the tax are instituted without delay, the 85096
commissioner may issue a jeopardy assessment against the person 85097
liable for the tax. Immediately upon the issuance of the jeopardy 85098
assessment, the commissioner shall file an entry with the clerk of 85099
the court of common pleas in the manner prescribed by division (C) 85100
of this section. Notice of the jeopardy assessment shall be served 85101
on the person assessed or the person's authorized agent in the 85102
manner provided in section 5703.37 of the Revised Code within five 85103
days of the filing of the entry with the clerk. The total amount 85104
assessed is immediately due and payable, unless the person 85105
assessed files a petition for reassessment in accordance with 85106
division (B) of this section and provides security in a form 85107
satisfactory to the commissioner and in an amount sufficient to 85108
satisfy the unpaid balance of the assessment. Full or partial 85109
payment of the assessment does not prejudice the commissioner's 85110
consideration of the petition for reassessment.85111

       (E) The tax commissioner shall immediately forward to the 85112
treasurer of state all amounts the commissioner receives under 85113
this section, and such amounts shall be considered as revenue 85114
arising from the tax imposed under this chapter.85115

       (F) Except as otherwise provided in this division, no 85116
assessment shall be made or issued against a taxpayer for the tax 85117
imposed under this chapter more than four years after the due date 85118
for the filing of the return for the tax period for which the tax 85119
was reported, or more than four years after the return for the tax 85120
period was filed, whichever is later. Nothing in this division 85121
bars an assessment against a taxpayer that fails to file a return 85122
required by this chapter or that files a fraudulent return.85123

       (G) If the tax commissioner possesses information that 85124
indicates that the amount of tax a taxpayer is required to pay 85125
under this chapter exceeds the amount the taxpayer paid, the tax 85126
commissioner may audit a sample of the taxpayer's gross receipts 85127
over a representative period of time to ascertain the amount of 85128
tax due, and may issue an assessment based on the audit. The tax 85129
commissioner shall make a good faith effort to reach agreement 85130
with the taxpayer in selecting a representative sample. The tax 85131
commissioner may apply a sampling method only if the commissioner 85132
has prescribed the method by rule.85133

       (H) If the whereabouts of a person subject to this chapter is 85134
not known to the tax commissioner, the secretary of state is 85135
hereby deemed to be that person's agent for purposes of service of 85136
process of notice of any assessment, action, or proceedings 85137
instituted in this state against the person under this chapter. 85138
Such process or notice shall be served on such person by the 85139
commissioner or by one of the commissioner's agents by leaving at 85140
the office of the secretary of state, at least fifteen days before 85141
the return day of such process or notice, a true and attested copy 85142
of the notice, and by sending to such person by ordinary mail, 85143
with an endorsement thereon of the service upon the secretary of 85144
state, addressed to such person at the person's last known 85145
address.85146

       Sec. 5751.10.  If any person liable for the tax imposed under 85147
this chapter sells the trade or business, disposes in any manner 85148
other than in the regular course of business at least seventy-five 85149
per cent of assets of the trade or business, or quits the trade or 85150
business, any tax owed by such person shall become due and payable 85151
immediately, and the person shall pay the tax under this section, 85152
including any applicable penalties and interest, within fifteen 85153
days after the date of selling or quitting the trade or business. 85154
The person's successor shall withhold a sufficient amount of the 85155
purchase money to cover the amount due and unpaid until the former 85156
owner produces a receipt from the tax commissioner showing that 85157
the amounts are paid or a certificate indicating that no taxes are 85158
due. If a purchaser fails to withhold purchase money, that person 85159
is personally liable up to the purchase money amount, for such 85160
amounts that are unpaid during the operation of the business by 85161
the former owner.85162

       The tax commissioner may adopt rules regarding the issuance 85163
of certificates under this section, including the waiver of the 85164
need for a certificate if certain criteria are met.85165

       Sec. 5751.11.  If any person subject to this chapter fails to 85166
report or pay the tax as required under this chapter, or fails to 85167
pay any penalty imposed under this chapter within ninety days 85168
after the time prescribed for payment of the penalty, the attorney 85169
general, on the request of the tax commissioner, shall commence an 85170
action in quo warranto in the court of appeals of the county in 85171
which the person has its principal place of business to forfeit 85172
and annul its privileges or franchise within this state. If the 85173
court finds that the person is in default for the amount claimed, 85174
it shall render judgment revoking the person's privileges or 85175
franchise within this state and shall otherwise proceed as 85176
provided in Chapter 2733. of the Revised Code.85177

       Sec. 5751.12.  The tax commissioner may prescribe 85178
requirements for the keeping of records and other pertinent 85179
documents, the filing of copies of federal income tax returns and 85180
determinations, and computations reconciling federal income tax 85181
returns with the returns and reports required by section 5751.05 85182
of the Revised Code. The commissioner may require any person, by 85183
rule or notice served on that person, to keep those records that 85184
the commissioner considers necessary to show whether, and the 85185
extent to which, a person is subject to this chapter. Those 85186
records and other documents shall be open during business hours to 85187
the inspection of the commissioner, and shall be preserved for a 85188
period of four years unless the commissioner, in writing, consents 85189
to their destruction within that period, or by order requires that 85190
they be kept longer. If such records are normally kept by the 85191
person electronically, the person shall provide such records to 85192
the commissioner electronically at the commissioner's request.85193

       Any information required by the tax commissioner under this 85194
chapter is confidential as provided for in section 5703.21 of the 85195
Revised Code. However, the commissioner shall make public an 85196
electronic list of all actively registered persons required to 85197
remit the tax under this chapter, including legal names, trade 85198
names, addresses, and account numbers. In addition, such list 85199
shall include all persons that cancelled their registration at any 85200
time during the preceding four calendar years, including the date 85201
the registration was cancelled.85202

       Sec. 5751.20.  (A) As used in sections 5751.20 to 5751.22 of 85203
the Revised Code:85204

       (1) "School district," "joint vocational school district," 85205
"local taxing unit," "state education aid," "recognized 85206
valuation," "fixed-rate levy," and "fixed-sum levy" have the same 85207
meanings as used in section 5727.84 of the Revised Code.85208

       (2) "State education aid offset" means the amount determined 85209
for each school district or joint vocational school district under 85210
division (A)(1) of section 5751.21 of the Revised Code.85211

       (3) "Machinery and equipment property tax value loss" means 85212
the amount determined under division (C)(1) of this section.85213

       (4) "Inventory property tax value loss" means the amount 85214
determined under division (C)(2) of this section.85215

       (5) "Furniture and fixtures property tax value loss" means 85216
the amount determined under division (C)(3) of this section.85217

        (6) "Machinery and equipment fixed-rate levy loss" means the 85218
amount determined under division (D)(1) of this section.85219

       (7) "Inventory fixed-rate levy loss" means the amount 85220
determined under division (D)(2) of this section.85221

       (8) "Furniture and fixtures fixed-rate levy loss" means the 85222
amount determined under division (D)(3) of this section.85223

       (9) "Total fixed-rate levy loss" means the sum of the 85224
machinery and equipment fixed-rate levy loss, the inventory 85225
fixed-rate levy loss, the furniture and fixtures fixed-rate levy 85226
loss, and the telephone company fixed-rate levy loss.85227

       (10) "Fixed-sum levy loss" means the amount determined under 85228
division (E) of this section.85229

       (11) "Machinery and equipment" means personal property 85230
subject to the assessment rate specified in division (F) of 85231
section 5711.22 of the Revised Code.85232

       (12) "Inventory" means personal property subject to the 85233
assessment rate specified in division (E) of section 5711.22 of 85234
the Revised Code.85235

       (13) "Furniture and fixtures" means personal property subject 85236
to the assessment rate specified in division (G) of section 85237
5711.22 of the Revised Code.85238

       (14) "Qualifying levies" are levies in effect for tax year 85239
2004 or applicable to tax year 2005 or approved at an election 85240
conducted before September 1, 2005, and first levied in tax year 85241
2006. For the purpose of determining the rate of a qualifying levy 85242
authorized by section 5705.212 or 5705.213 of the Revised Code, 85243
the rate shall be the rate that would be in effect for tax year 85244
2010.85245

       (15) "Telephone property" means tangible personal property of 85246
a telephone, telegraph, or interexchange telecommunications 85247
company subject to an assessment rate specified in section 85248
5727.111 of the Revised Code in tax year 2004.85249

       (16) "Telephone property tax value loss" means the amount 85250
determined under division (C)(4) of this section.85251

       (17) "Telephone property fixed-rate levy loss" means the 85252
amount determined under division (D)(4) of this section.85253

       (B) The commercial activities tax receipts fund is hereby 85254
created in the state treasury and shall consist of money arising 85255
from the tax imposed under this chapter. All money in that fund 85256
shall be credited for each fiscal year in the following 85257
percentages to the general revenue fund, to the school district 85258
tangible property tax replacement fund, which is hereby created in 85259
the state treasury for the purpose of making the payments 85260
described in section 5751.21 of the Revised Code, and to the local 85261
government tangible property tax replacement fund, which is hereby 85262
created in the state treasury for the purpose of making the 85263
payments described in section 5751.22 of the Revised Code, in the 85264
following percentages:85265

Fiscal year General Revenue Fund School District Tangible Property Tax Replacement Fund Local Government Tangible Property Tax Replacement Fund 85266
2006 67.7% 22.6% 9.7% 85267
2007 0% 70.0% 30.0% 85268
2008 0% 70.0% 30.0% 85269
2009 0% 70.0% 30.0% 85270
2010 0% 70.0% 30.0% 85271
2011 0% 70.0% 30.0% 85272
2012 5.3% 70.0% 24.7% 85273
2013 19.4% 70.0% 10.6% 85274
2014 14.1% 70.0% 15.9% 85275
2015 17.6% 70.0% 12.4% 85276
2016 21.1% 70.0% 8.9% 85277
2017 24.6% 70.0% 5.4% 85278
2018 28.1% 70.0% 1.9% 85279
2019 and thereafter 100% 0% 0% 85280

       (C) Not later than September 15, 2005, the tax commissioner 85281
shall determine for each school district, joint vocational school 85282
district, and local taxing unit its machinery and equipment, 85283
inventory property, furniture and fixtures property, and telephone 85284
property tax value losses, which are the applicable amounts 85285
described in divisions (C)(1), (2), (3), and (4) of this section:85286

       (1) Machinery and equipment property tax value loss is the 85287
taxable value of machinery and equipment property as reported by 85288
taxpayers for tax year 2004 multiplied by:85289

       (a) For tax year 2006, thirty-three and eight-tenths per 85290
cent;85291

       (b) For tax year 2007, sixty-one and three-tenths per cent;85292

       (c) For tax year 2008, eighty-three per cent;85293

       (d) For tax year 2009 and thereafter, one hundred per cent.85294

       (2) Inventory property tax value loss is the taxable value of 85295
inventory property as reported by taxpayers for tax year 2004 85296
multiplied by: 85297

       (a) For tax year 2006, a fraction, the numerator of which is 85298
five and three-fourths and the denominator of which is 85299
twenty-three;85300

        (b) For tax year 2007, a fraction, the numerator of which is 85301
nine and one-half and the denominator of which is twenty-three;85302

        (c) For tax year 2008, a fraction, the numerator of which is 85303
thirteen and one-fourth and the denominator of which is 85304
twenty-three;85305

        (d) For tax year 2009 and thereafter a fraction, the 85306
numerator of which is seventeen and the denominator of which is 85307
twenty-three.85308

        (3) Furniture and fixtures property tax value loss is the 85309
taxable value of furniture and fixture property as reported by 85310
taxpayers for tax year 2004 multiplied by:85311

        (a) For tax year 2006, twenty-five per cent;85312

        (b) For tax year 2007, fifty per cent;85313

        (c) For tax year 2008, seventy-five per cent;85314

        (d) For tax year 2009 and thereafter, one hundred per cent.85315

       The taxable value of property reported by taxpayers used in 85316
divisions (C)(1), (2), and (3) of this section shall be such 85317
values as determined to be final by the tax commissioner as of 85318
August 31, 2005. Such determinations shall be final except for any 85319
correction of a clerical error that was made prior to August 31, 85320
2005, by the tax commissioner.85321

       (4) Telephone property tax value loss is the taxable value of 85322
telephone property as taxpayers would have reported that property 85323
for tax year 2004 if the assessment rate for all telephone 85324
property for that year were twenty-five per cent, multiplied by:85325

       (a) For tax year 2006, zero per cent;85326

       (b) For tax year 2007, zero per cent;85327

       (c) For tax year 2008, zero per cent;85328

       (d) For tax year 2009, sixty per cent;85329

       (e) For tax year 2010, eighty per cent;85330

       (f) For tax year 2011 and thereafter, one hundred per cent.85331

       To facilitate the calculations required under division (C) of 85332
this section, the county auditor, upon request from the tax 85333
commissioner, shall provide by August 1, 2005, the values of 85334
machinery and equipment, inventory, and furniture and fixtures for 85335
all single-county personal property taxpayers for tax year 2004.85336

       (D) Not later than September 15, 2005, the tax commissioner 85337
shall determine for each tax year from 2006 through 2009 for each 85338
school district, joint vocational school district, and local 85339
taxing unit its machinery and equipment, inventory, and furniture 85340
and fixtures fixed-rate levy losses, and for each tax year from 85341
2006 through 2011 its telephone property fixed-rate levy loss, 85342
which are the applicable amounts described in divisions (D)(1), 85343
(2), (3), and (4) of this section:85344

       (1) The machinery and equipment fixed-rate levy loss is the 85345
machinery and equipment property tax value loss multiplied by the 85346
sum of the tax rates of fixed-rate qualifying levies.85347

       (2) The inventory fixed-rate loss is the inventory property 85348
tax value loss multiplied by the sum of the tax rates of 85349
fixed-rate qualifying levies.85350

        (3) The furniture and fixtures fixed-rate levy loss is the 85351
furniture and fixture property tax value loss multiplied by the 85352
sum of the tax rates of fixed-rate qualifying levies.85353

       (4) The telephone property fixed-rate levy loss is the 85354
telephone property tax value loss multiplied by the sum of the tax 85355
rates of fixed-rate qualifying levies.85356

       (E) Not later than September 15, 2005, the tax commissioner 85357
shall determine for each school district, joint vocational school 85358
district, and local taxing unit its fixed-sum levy loss. The 85359
fixed-sum levy loss is the amount obtained by subtracting the 85360
amount described in division (E)(2) of this section from the 85361
amount described in division (E)(1) of this section:85362

       (1) The sum of the machinery and equipment property tax value 85363
loss, the inventory property tax value loss, and the furniture and 85364
fixtures property tax value loss, and, for 2008 through 2017 the 85365
telephone property tax value loss of the district or unit 85366
multiplied by the sum of the fixed-sum tax rates of qualifying 85367
levies. For 2006 through 2010, this computation shall include all 85368
qualifying levies remaining in effect for the current tax year and 85369
any school district emergency levies that are qualifying levies 85370
not remaining in effect for the current year. For 2011 through 85371
2017, this computation shall include only qualifying levies 85372
remaining in effect for the current year. For purposes of this 85373
computation, a qualifying school district emergency levy remains 85374
in effect in a year after 2010 only if, for that year, the board 85375
of education levies a school district emergency levy for an annual 85376
sum at least equal to the annual sum levied by the board in tax 85377
year 2004 less the amount of the payment certified under this 85378
division for 2006.85379

       (2) The total taxable value in tax year 2004 less the sum of 85380
the machinery and equipment, inventory, furniture and fixtures, 85381
and telephone property tax value losses in each school district, 85382
joint vocational school district, and local taxing unit multiplied 85383
by one-half of one mill per dollar.85384

       (3) For the calculations in divisions (E)(1) and (2) of this 85385
section, the tax value losses are those that would be calculated 85386
for tax year 2009 under divisions (C)(1), (2), and (3) of this 85387
section and for tax year 2011 under division (C)(4) of this 85388
section.85389

       (4) To facilitate the calculation under divisions (D) and (E) 85390
of this section, not later than September 1, 2005, any school 85391
district, joint vocational school district, or local taxing unit 85392
that has a qualifying levy that was approved at an election 85393
conducted during 2005 before September 1, 2005, shall certify to 85394
the tax commissioner a copy of the county auditor's certificate of 85395
estimated property tax millage for such levy as required under 85396
division (B) of section 5705.03 of the Revised Code, which is the 85397
rate that shall be used in the calculations under such divisions.85398

       If the amount determined under division (E) of this section 85399
for any school district, joint vocational school district, or 85400
local taxing unit is greater than zero, that amount shall equal 85401
the reimbursement to be paid pursuant to division (D) of section 85402
5751.21 or division (A)(3) of section 5751.22 of the Revised Code, 85403
and the one-half of one mill that is subtracted under division 85404
(E)(2) of this section shall be apportioned among all contributing 85405
fixed-sum levies in the proportion that each levy bears to the sum 85406
of all fixed-sum levies within each school district, joint 85407
vocational school district, or local taxing unit.85408

       (F) Not later than October 1, 2005, the tax commissioner 85409
shall certify to the department of education for every school 85410
district and joint vocational school district the machinery and 85411
equipment, inventory, furniture and fixtures, and telephone 85412
property tax value losses determined under division (C) of this 85413
section, the machinery and equipment, inventory, furniture and 85414
fixtures, and telephone fixed-rate levy losses determined under 85415
division (D) of this section, and the fixed-sum levy losses 85416
calculated under division (E) of this section. The calculations 85417
under divisions (D) and (E) of this section shall separately 85418
display the levy loss for each levy eligible for reimbursement.85419

       (G) Not later than October 1, 2005, the tax commissioner 85420
shall certify the amount of the fixed-sum levy losses to the 85421
county auditor of each county in which a school district, joint 85422
vocational school district, or local taxing unit with a fixed-sum 85423
levy loss reimbursement has territory.85424

       Sec. 5751.21.  (A) Not later than the thirty-first day of 85425
July of 2007 through 2017, the department of education shall 85426
determine the following for each school district and each joint 85427
vocational school district eligible for payment under division (B) 85428
of this section:85429

       (1) The state education aid offset, which is the difference 85430
obtained by subtracting the amount described in division (A)(1)(b) 85431
of this section from the amount described in division (A)(1)(a) of 85432
this section:85433

       (a) The state education aid computed for the school district 85434
or joint vocational school district for the current fiscal year as 85435
of the thirty-first day of July;85436

       (b) The state education aid that would be computed for the 85437
school district or joint vocational school district for the 85438
current fiscal year as of the thirty-first day of July if the 85439
recognized valuation included the machinery and equipment, 85440
inventory, furniture and fixtures, and telephone property tax 85441
value losses for the school district or joint vocational school 85442
district for the second preceding tax year.85443

       (2) The greater of zero or the difference obtained by 85444
subtracting the state education aid offset determined under 85445
division (A)(1) of this section from the sum of the machinery and 85446
equipment fixed-rate levy loss, the inventory fixed-rate levy 85447
loss, furniture and fixtures fixed-rate levy loss, and telephone 85448
property fixed-rate levy loss certified under division (F) of 85449
section 5751.20 of the Revised Code for all taxing districts in 85450
each school district and joint vocational school district for the 85451
second preceding tax year.85452

       By the fifth day of August of each such year, the department 85453
of education shall certify the amount so determined under division 85454
(A)(1) of this section to the director of budget and management.85455

       (B) The department of education shall pay from the school 85456
district tangible property tax replacement fund to each school 85457
district and joint vocational school district all of the following 85458
for fixed-rate levy losses certified under division (F) of section 85459
5751.20 of the Revised Code:85460

       (1) On or before May 31, 2006, one-seventh of the total 85461
fixed-rate levy loss for tax year 2006;85462

       (2) On or before August 31, 2006, and October 31, 2006, 85463
one-half of six-sevenths of the total fixed-rate levy loss fox tax 85464
year 2006;85465

       (3) On or before May 31, 2007, one-seventh of the total 85466
fixed-rate levy loss for tax year 2007;85467

       (4) On or before August 31, 2007, and October 31, 2007, 85468
forty-three per cent of the amount determined under division 85469
(A)(2) of this section for fiscal year 2008, but not less than 85470
zero, plus one-half of six-sevenths of the difference between the 85471
total fixed-rate levy loss for tax year 2007 and the total 85472
fixed-rate levy loss for tax year 2006.85473

       (5) On or before May 31, 2008, fourteen per cent of the 85474
amount determined under division (A)(2) of this section for fiscal 85475
year 2008, but not less than zero, plus one-seventh of the 85476
difference between the total fixed-rate levy loss for tax year 85477
2008 and the total fixed-rate levy loss for tax year 2006.85478

       (6) On or before August 31, 2008, and October 31, 2008, 85479
forty-three per cent of the amount determined under division 85480
(A)(2) of this section for fiscal year 2009, but not less than 85481
zero, plus one-half of six-sevenths of the difference between the 85482
total fixed-rate levy loss in tax year 2008 and the total 85483
fixed-rate levy loss in tax year 2007.85484

       (7) On or before May 31, 2009, fourteen per cent of the 85485
amount determined under division (A)(2) of this section for fiscal 85486
year 2009, but not less than zero, plus one-seventh of the 85487
difference between the total fixed-rate levy loss for tax year 85488
2009 and the total fixed-rate levy loss for tax year 2007.85489

       (8) On or before August 31, 2009, and October 31, 2009, 85490
forth-three per cent of the amount determined under division 85491
(A)(2) of this section for fiscal year 2010, but not less than 85492
zero, plus one-half of six-sevenths of the difference between the 85493
total fixed-rate levy loss in tax year 2009 and the total 85494
fixed-rate levy loss in tax year 2008.85495

       (9) On or before May 31, 2010, fourteen per cent of the 85496
amount determined under division (A)(2) of this section for fiscal 85497
year 2010, but not less than zero, plus one-seventh of the 85498
difference between the total fixed-rate levy loss in tax year 2010 85499
and the total fixed-rate levy loss in tax year 2008.85500

       (10) On or before August 31, 2010, and October 31, 2010, 85501
one-third of the amount determined under division (A)(2) of this 85502
section for fiscal year 2011, but not less than zero, plus 85503
one-half of six-sevenths of the difference between the telephone 85504
property fixed-rate levy loss for tax year 2010 and the telephone 85505
property fixed-rate levy loss for tax year 2009.85506

       (11) On or before May 31, 2011, fourteen per cent of the 85507
amount determined under division (A)(2) of this section for fiscal 85508
year 2011, but not less than zero, plus one-seventh of the 85509
difference between the telephone property fixed-rate levy loss for 85510
tax year 2011 and the telephone property fixed-rate levy loss for 85511
tax year 2009.85512

       (12) On or before August 31, 2011, October 31, 2011, and May 85513
31, 2012, the amount determined under division (A)(2) of this 85514
section multiplied by a fraction, the numerator of which is 85515
fourteen and the denominator of which is seventeen, but not less 85516
than zero, multiplied by one-third, plus one-half of six-sevenths 85517
of the difference between the telephone property fixed-rate levy 85518
loss for tax year 2011 and the telephone property fixed-rate levy 85519
loss for tax year 2010.85520

       (13) On or before May 31, 2012, fourteen per cent of the 85521
amount determined under division (A)(2) of this section for fiscal 85522
year 2012, multiplied by a fraction, the numerator of which is 85523
fourteen and the denominator of which is seventeen, plus 85524
one-seventh of the difference between the telephone property 85525
fixed-rate levy loss for tax year 2011 and the telephone property 85526
fixed-rate levy loss for tax year 2010.85527

       (14) On or before August 31, 2012, October 31, 2012, and May 85528
31, 2013, the amount determined under division (A)(2) of this 85529
section multiplied by a fraction, the numerator of which is eleven 85530
and the denominator of which is seventeen, but not less than zero, 85531
multiplied by one-third.85532

       (15) On or before August 31, 2013, October 31, 2013, and May 85533
31, 2014, the amount determined under division (A)(2) of this 85534
section multiplied by a fraction, the numerator of which is nine 85535
and the denominator of which is seventeen, but not less than zero, 85536
multiplied by one-third.85537

       (16) On or before August 31, 2014, October 31, 2014, and May 85538
31, 2015, the amount determined under division (A)(2) of this 85539
section multiplied by a fraction, the numerator of which is seven 85540
and the denominator of which is seventeen, but not less than zero, 85541
multiplied by one-third.85542

       (17) On or before August 31, 2015, October 31, 2015, and May 85543
31, 2016, the amount determined under division (A)(2) of this 85544
section multiplied by a fraction, the numerator of which is five 85545
and the denominator of which is seventeen, but not less than zero, 85546
multiplied by one-third.85547

       (18) On or before August 31, 2016, October 31, 2016, and May 85548
31, 2017, the amount determined under division (A)(2) of this 85549
section multiplied by a fraction, the numerator of which is three 85550
and the denominator of which is seventeen, but not less than zero, 85551
multiplied by one-third.85552

       (19) On or before August 31, 2017, October 31, 2017, and May 85553
31, 2018, the amount determined under division (A)(2) of this 85554
section multiplied by a fraction, the numerator of which is one 85555
and the denominator of which is seventeen, but not less than zero, 85556
multiplied by one-third.85557

       (20) After May 31, 2018, no payments shall be made under this 85558
section.85559

       The department of education shall report to each school 85560
district and joint vocational school district the apportionment of 85561
the payments among the school district's or joint vocational 85562
school district's funds based on the certifications under division 85563
(F) of section 5751.20 of the Revised Code.85564

       Any qualifying levy that is a fixed-rate levy that is not 85565
applicable to a tax year after 2010 does not qualify for any 85566
reimbursement after the tax year to which it is last applicable.85567

       (C) For taxes levied within the ten-mill limitation for debt 85568
purposes in tax year 2005, payments shall be made equal to one 85569
hundred per cent of the loss computed as if the tax were a 85570
fixed-rate levy, but those payments shall extend from fiscal year 85571
2006 through fiscal year 2018, as long as the qualifying levy 85572
continues to be used for debt purposes. If the purpose of such a 85573
qualifying levy is changed, that levy becomes subject to the 85574
payments determined in division (B) of this section.85575

       (D)(1) Not later than January 1, 2006, for each fixed-sum 85576
levy of each school district or joint vocational school district 85577
and for each year for which a determination is made under division 85578
(F) of section 5751.20 of the Revised Code that a fixed-sum levy 85579
loss is to be reimbursed, the tax commissioner shall certify to 85580
the department of education the fixed-sum levy loss determined 85581
under that division. The certification shall cover a time period 85582
sufficient to include all fixed-sum levies for which the 85583
commissioner made such a determination. The department shall pay 85584
from the school district property tax replacement fund to the 85585
school district or joint vocational school district one-third of 85586
the fixed-sum levy loss so certified for each year on or before 85587
the last day of May, August, and November of the current year.85588

       (2) Beginning in 2006, by the first day of January of each 85589
year, the tax commissioner shall review the certification 85590
originally made under division (D)(1) of this section. If the 85591
commissioner determines that a debt levy that had been scheduled 85592
to be reimbursed in the current year has expired, a revised 85593
certification for that and all subsequent years shall be made to 85594
the department of education.85595

       (E) Beginning in September 2007 and through June 2018, the 85596
director of budget and management shall transfer from the school 85597
district tangible property tax replacement fund to the general 85598
revenue fund each of the following:85599

       (1) On the first day of September, the lesser of one-fourth 85600
of the amount certified for that fiscal year under division (A)(1) 85601
of this section or the balance in the school district tangible 85602
property tax replacement fund;85603

       (2) On the first day of December, the lesser of one-fourth of 85604
the amount certified for that fiscal year under division (A)(1) of 85605
this section or the balance in the school district tangible 85606
property tax replacement fund;85607

       (3) On the first day of March, the lesser of one-fourth of 85608
the amount certified for that fiscal year under division (A)(1) of 85609
this section or the balance in the school district tangible 85610
property tax replacement fund;85611

       (4) On the first day of June, the lesser of one-fourth of the 85612
amount certified for that fiscal year under division (A)(1) of 85613
this section or the balance in the school district tangible 85614
property tax replacement fund.85615

       (F) For each of the fiscal years 2006 through 2018, if the 85616
total amount in the school district tangible property tax 85617
replacement fund is insufficient to make all payments under 85618
divisions (B), (C), or (D) of this section at the times the 85619
payments are to be made, the director of budget and management 85620
shall transfer from the general revenue fund to the school 85621
district tangible property tax replacement fund the difference 85622
between the total amount to be paid and the amount in the school 85623
district tangible property tax replacement fund. For each fiscal 85624
year after 2018, at the time payments under division (D) of this 85625
section are to be made, the director of budget and management 85626
shall transfer from the general revenue fund to the school 85627
district property tax replacement fund the amount necessary to 85628
make such payments.85629

       (G) On the fifteenth day of June of 2006 through 2011, the 85630
director of budget and management may transfer any balance in the 85631
school district tangible property tax replacement fund to the 85632
general revenue fund. At the end of fiscal years 2012 through 85633
2018, any balance in the school district tangible property tax 85634
replacement fund shall remain in the fund to be used in future 85635
fiscal years for school purposes.85636

       (H) If all of the territory of a school district or joint 85637
vocational school district is merged with another district, or if 85638
a part of the territory of a school district or joint vocational 85639
school district is transferred to an existing or newly created 85640
district, the department of education, in consultation with the 85641
tax commissioner, shall adjust the payments made under this 85642
section as follows:85643

       (1) For a merger of two or more districts, the machinery and 85644
equipment, inventory, furniture and fixtures, and telephone 85645
property fixed-rate levy losses and the fixed-sum levy losses of 85646
the successor district shall be equal to the sum of the machinery 85647
and equipment, inventory, furniture and fixtures, and telephone 85648
property fixed-rate levy losses and debt levy losses as determined 85649
in section 5751.20 of the Revised Code, for each of the districts 85650
involved in the merger.85651

       (2) If property is transferred from one district to a 85652
previously existing district, the amount of machinery and 85653
equipment, inventory, furniture and fixtures, and telephone 85654
property fixed-rate levy losses that shall be transferred to the 85655
recipient district shall be an amount equal to the total machinery 85656
and equipment, inventory, furniture and fixtures, and telephone 85657
property fixed-rate levy losses times a fraction, the numerator of 85658
which is the value of business tangible personal property on the 85659
land being transferred in the most recent year for which data are 85660
available, and the denominator of which is the total value of 85661
business tangible personal property in the district from which the 85662
land is being transferred in the most recent year for which data 85663
are available.85664

       (3) After December 31, 2004, if property is transferred from 85665
one or more districts to a district that is newly created out of 85666
the transferred property, the newly created district shall be 85667
deemed not to have any machinery and equipment, inventory, 85668
furniture and fixtures, or telephone property fixed-rate levy 85669
losses and the districts from which the property was transferred 85670
shall have no reduction in their machinery and equipment, 85671
inventory, furniture and fixtures, and telephone property 85672
fixed-rate levy losses.85673

       (4) If the recipient district under division (H)(2) of this 85674
section or the newly created district under divisions (H)(3) of 85675
this section is assuming debt from one or more of the districts 85676
from which the property was transferred and any of the districts 85677
losing the property had fixed-sum levy losses, the department of 85678
education, in consultation with the tax commissioner, shall make 85679
an equitable division of the fixed-sum levy loss reimbursements.85680

       Sec. 5751.22.  (A) Not later than January 1, 2006, the tax 85681
commissioner shall compute the payments to be made to each local 85682
taxing unit for each year according to divisions (A)(1), (2), (3), 85683
and (4) of this section, and shall distribute the payments in the 85684
manner prescribed by division (C) of this section. The calculation 85685
of the fixed-sum levy loss shall cover a time period sufficient to 85686
include all fixed-sum levies for which the commissioner 85687
determined, pursuant to division (E) of section 5751.20 of the 85688
Revised Code, that a fixed-sum levy loss is to be reimbursed.85689

       (1) Except as provided in division (A)(4) of this section, 85690
for machinery and equipment, inventory, and furniture and fixtures 85691
fixed-rate levy losses determined under division (D) of section 85692
5751.20 of the Revised Code, payments shall be made in an amount 85693
equal to each of those losses multiplied by the following:85694

       (a) For tax years 2006 through 2010, one hundred per cent;85695

       (b) For tax year 2011, a fraction, the numerator of which is 85696
fourteen and the denominator of which is seventeen;85697

       (c) For tax year 2012, a fraction, the numerator of which is 85698
eleven and the denominator of which is seventeen;85699

       (d) For tax year 2013, a fraction, the numerator of which is 85700
nine and the denominator of which is seventeen;85701

       (e) For tax year 2014, a fraction, the numerator of which is 85702
seven and the denominator of which is seventeen;85703

       (f) For tax year 2015, a fraction, the numerator of which is 85704
five and the denominator of which is seventeen;85705

       (g) For tax year 2016, a fraction, the numerator of which is 85706
three and the denominator of which is seventeen;85707

       (h) For tax year 2017, a fraction, the numerator of which is 85708
one and the denominator of which is seventeen;85709

       (i) For tax years 2018 and thereafter, no fixed-rate payments 85710
shall be made.85711

       Any qualifying levy that is a fixed-rate levy that is not 85712
applicable to a tax year after 2010 shall not qualify for any 85713
reimbursement after the tax year to which it is last applicable.85714

       (2) Except as provided in division (A)(4) of this section, 85715
for telephone property fixed-rate levy losses determined under 85716
division (D)(4) of section 5751.20 of the Revised Code, payments 85717
shall be made in an amount equal to each of those losses 85718
multiplied by the following:85719

       (a) For tax years 2009 through 2011, one hundred per cent;85720

       (b) For tax year 2012, seven-eighths;85721

       (c) For tax year 2013, six-eighths;85722

       (d) For tax year 2014, five-eighths;85723

       (e) For tax year 2015, four-eighths;85724

       (f) For tax year 2016, three-eighths;85725

       (g) For tax year 2017, two-eighths;85726

       (h) For tax year 2018, one-eighth;85727

       (i) For tax years 2019 and thereafter, no fixed-rate payments 85728
shall be made.85729

       Any qualifying levy that is a fixed-rate levy that is not 85730
applicable to a tax year after 2011 shall not qualify for any 85731
reimbursement after the tax year to which it is last applicable.85732

       (3) For fixed-sum levy losses determined under division (E) 85733
of section 5751.20 of the Revised Code, payments shall be made in 85734
the amount of one hundred per cent of the fixed-sum levy loss for 85735
payments required to be made in 2006 and thereafter.85736

       (4) For taxes levied within the ten-mill limitation for debt 85737
purposes in tax year 2005, payments shall be made based on the 85738
schedule in division (A)(1) of this section for each of the 85739
calendar years 2006 through 2010. For each of the calendar years 85740
2011 through 2017, the percentages for calendar year 2010 shall be 85741
used, as long as the qualifying levy continues to be used for debt 85742
purposes. If the purpose of such a qualifying levy is changed, 85743
that levy becomes subject to the payment schedules in divisions 85744
(A)(1)(a) to (h) of this section. No payments shall be made for 85745
such levies after calendar year 2017.85746

       (B) Beginning in 2007, by the thirty-first day of January of 85747
each year, the tax commissioner shall review the calculation 85748
originally made under division (A) of this section of the 85749
fixed-sum levy losses determined under division (E) of section 85750
5751.20 of the Revised Code. If the commissioner determines that a 85751
fixed-sum levy that had been scheduled to be reimbursed in the 85752
current year has expired, a revised calculation for that and all 85753
subsequent years shall be made.85754

       (C) Payments to local taxing units required to be made under 85755
division (A) of this section shall be paid from the local 85756
government tangible property tax replacement fund to the county 85757
undivided income tax fund in the proper county treasury. Beginning 85758
in May 2006, one-third of the amount certified under that division 85759
shall be paid by the last day of May, August, and October. Within 85760
forty-five days after receipt of such payments, the county 85761
treasurer shall distribute amounts determined under division (A) 85762
of this section to the proper local taxing unit as if they had 85763
been levied and collected as taxes, and the local taxing unit 85764
shall apportion the amounts so received among its funds in the 85765
same proportions as if those amounts had been levied and collected 85766
as taxes.85767

       (D) For each of the fiscal years 2006 through 2019, if the 85768
total amount in the local government tangible property tax 85769
replacement fund is insufficient to make all payments under 85770
division (C) of this section at the times the payments are to be 85771
made, the director of budget and management shall transfer from 85772
the general revenue fund to the local government tangible property 85773
tax replacement fund the difference between the total amount to be 85774
paid and the amount in the local government tangible property tax 85775
replacement fund. For each fiscal year after 2019, at the time 85776
payments under division (A)(2) of this section are to be made, the 85777
director of budget and management shall transfer from the general 85778
revenue fund to the local government property tax replacement fund 85779
the amount necessary to make such payments.85780

       (E) On the fifteenth day of June of each year from 2006 85781
through 2018, the director of budget and management may transfer 85782
any balance in the local government tangible property tax 85783
replacement fund to the general revenue fund.85784

       (F) If all or a part of the territories of two or more local 85785
taxing units are merged, or unincorporated territory of a township 85786
is annexed by a municipal corporation, the tax commissioner shall 85787
adjust the payments made under this section to each of the local 85788
taxing units in proportion to the tax value loss apportioned to 85789
the merged or annexed territory, or as otherwise provided by a 85790
written agreement between the legislative authorities of the local 85791
taxing units certified to the commissioner not later than the 85792
first day of June of the calendar year in which the payment is to 85793
be made.85794

       Sec. 5751.23.  (A) As used in this section:85795

       (1) "Administrative fees" means the dollar percentages 85796
allowed by the county auditor for services or by the county 85797
treasurer as fees, or paid to the credit of the real estate 85798
assessment fund, under divisions (A) and (B) of section 319.54 and 85799
division (A) of section 321.26 of the Revised Code.85800

       (2) "Administrative fee loss" means a county's loss of 85801
administrative fees due to its tax value loss, determined as 85802
follows:85803

       (a) For purposes of the determination made under division (B) 85804
of this section in the years 2006 through 2010, the administrative 85805
fee loss shall be computed by multiplying the amounts determined 85806
for all taxing districts in the county under divisions (D) and (E) 85807
of section 5751.20 of the Revised Code by nine thousand six 85808
hundred fifty-nine ten-thousandths of one per cent if total taxes 85809
collected in the county in 2004 exceeded one hundred fifty million 85810
dollars, or one and one thousand one hundred fifty-nine 85811
ten-thousandths of one per cent if total taxes collected in the 85812
county in 2004 were one hundred fifty million dollars or less;85813

       (b) For purposes of the determination under division (B) of 85814
this section in the years after 2010, the administrative fee 85815
losses shall be determined by multiplying the administrative fee 85816
losses calculated for 2010 by the fractions in divisions (A)(1)(b) 85817
to (i) of section 5751.22 of the Revised Code.85818

       (3) "Total taxes collected" means all money collected on any 85819
tax duplicate of the county, other than the estate tax duplicates. 85820
"Total taxes collected" does not include amounts received pursuant 85821
to divisions (F) and (G) of section 321.24 or section 323.156 of 85822
the Revised Code.85823

       (B) Not later than December 31, 2005, the tax commissioner 85824
shall certify to each county auditor the tax levy losses 85825
calculated under divisions (D) and (E) of section 5751.20 of the 85826
Revised Code for each school district, joint vocational school 85827
district, and local taxing unit in the county. Not later than the 85828
thirty-first day of January of 2006 through 2017, the county 85829
auditor shall determine the administrative fee loss for the county 85830
and apportion that loss ratably among the school districts, joint 85831
vocational school districts, and local taxing units on the basis 85832
of the tax levy losses certified under this division.85833

       (C) On or before each of the days prescribed for the 85834
settlements under divisions (A) and (C) of section 321.24 of the 85835
Revised Code in the years 2006 through 2017, the county treasurer 85836
shall deduct one-half of the amount apportioned to each school 85837
district, joint vocational school district, and local taxing unit 85838
from the portions of revenue payable to them.85839

       (D) On or before each of the days prescribed for settlements 85840
under divisions (A) and (C) of section 321.24 of the Revised Code 85841
in the years 2006 through 2017, the county auditor shall cause to 85842
be deposited an amount equal to one-half of the amount of the 85843
administrative fee loss in the same funds as if allowed as 85844
administrative fees.85845

       Sec. 5751.31.  Notwithstanding any section of law to the 85846
contrary, the tax commissioner may issue one or more final 85847
determinations under section 5703.60 of the Revised Code for which 85848
any appeal must be made directly to the supreme court within 85849
thirty days after the date the commissioner issued the 85850
determination if the primary issue raised by the petitioner is the 85851
constitutionality of division (H)(3) of section 5751.01 of the 85852
Revised Code or an issue arising under Section 3, 5a, or 13 of 85853
Article XII, Ohio Constitution. Such final determination shall 85854
clearly indicate that any appeal thereof must be made directly to 85855
the supreme court within the thirty-day period prescribed in this 85856
division.85857

       Sec. 5751.50.  (A) For tax periods beginning on or after 85858
January 1, 2008, a refundable credit granted by the tax credit 85859
authority under section 122.17 of the Revised Code may be claimed 85860
under this chapter in the order required under section 5751.98 of 85861
the Revised Code. For purposes of making tax payments under this 85862
chapter, taxes equal to the amount of the refundable credit shall 85863
be considered to be paid to this state on the first day of the tax 85864
period. A credit claimed in calendar year 2008 may not be applied 85865
against the tax otherwise due for a tax period beginning before 85866
July 1, 2008. The refundable credit shall not be claimed against 85867
the tax otherwise due for any tax period beginning after the date 85868
on which a relocation of employment positions occurs in violation 85869
of an agreement entered into under sections 122.17 or 122.171 of 85870
the Revised Code.85871

        (B) For tax periods beginning on or after January 1, 2008, a 85872
nonrefundable credit granted by the tax credit authority under 85873
section 122.171 of the Revised Code may be claimed under this 85874
chapter in the order required under section 5751.98 of the Revised 85875
Code. A credit claimed in calendar year 2008 may not be applied 85876
against the tax otherwise due under this chapter for a tax period 85877
beginning before July 1, 2008. The credit shall not be claimed 85878
against the tax otherwise due for any tax period beginning after 85879
the date on which a relocation of employment positions occurs in 85880
violation of an agreement entered into under sections 122.17 or 85881
122.171 of the Revised Code. No credit shall be allowed under this 85882
chapter if the credit was available against the tax imposed by 85883
section 5733.06 or 5747.02 of the Revised Code, except to the 85884
extent the credit was not applied against such tax.85885

       Sec. 5751.51.  (A) As used in this section, "qualified 85886
research expenses" has the same meaning as in section 41 of the 85887
Internal Revenue Code.85888

        (B)(1) For tax periods beginning on or after January 1, 2008, 85889
a nonrefundable credit may be claimed under this chapter equal to 85890
seven per cent of the excess of (a) qualified research expenses 85891
incurred in this state by the taxpayer in the tax period for which 85892
the credit is claimed over (b) the taxpayer's average annual 85893
qualified research expenses incurred in this state for the three 85894
preceding tax periods.85895

        (2) The taxpayer shall claim the credit allowed under 85896
division (B)(1) of this section in the order required by section 85897
5751.98 of the Revised Code. A credit claimed in tax year 2008 may 85898
not be applied against the tax otherwise due under this chapter 85899
for a tax period beginning before July 1, 2008. Any credit amount 85900
in excess of the tax due under section 5751.03 of the Revised 85901
Code, after allowing for any other credits that precede the credit 85902
under this section in the order required under that section, may 85903
be carried forward for seven tax years, but the amount of the 85904
excess credit claimed against the tax for any tax period shall be 85905
deducted from the balance carried forward to the next tax period.85906

        (3) No credit shall be allowed under this chapter if the 85907
credit was available against the tax imposed by section 5733.06 of 85908
the Revised Code, except to the extent the credit was not applied 85909
against such tax.85910

       Sec. 5751.52.  (A) As used in this section:85911

        (1) "Borrower" means any person that receives a loan from the 85912
director of development under section 166.21 of the Revised Code, 85913
regardless of whether the borrower is subject to the tax imposed 85914
by this chapter.85915

        (2) "Qualified research and development loan payments" has 85916
the same meaning as in section 166.21 of the Revised Code.85917

        (3) "Related member" has the same meaning as in section 85918
5733.042 of the Revised Code.85919

        (B) For tax periods beginning on or after January 1, 2008, a 85920
nonrefundable credit may be claimed under this chapter equal to a 85921
borrower's qualified research and development loan payments made 85922
during the calendar year immediately preceding the tax period for 85923
which the credit is claimed. The amount of the credit for a 85924
calendar year shall not exceed one hundred fifty thousand dollars. 85925
No taxpayer is entitled to claim a credit under this section 85926
unless the taxpayer has obtained a certificate issued by the 85927
director of development under division (D) of section 166.21 of 85928
the Revised Code. The credit shall be claimed in the order 85929
required under section 5151.98 of the Revised Code. A credit 85930
claimed in calendar year 2008 may not be applied against the tax 85931
otherwise due under this chapter for a tax period beginning before 85932
July 1, 2008. No credit shall be allowed under this chapter if the 85933
credit was available against the tax imposed by section 5733.06 or 85934
5747.02 of the Revised Code except to the extent the credit was 85935
not applied against such tax. The credit, to the extent it exceeds 85936
the taxpayer's tax liability for a tax period after allowance for 85937
any other credits that precede the credit under this section in 85938
that order, shall be carried forward to the next succeeding tax 85939
period or periods, but the amount of the excess credit claimed 85940
against the tax for any tax period shall be deducted from the 85941
balance carried forward to the next tax period.85942

        (C) A borrower entitled to a credit under this section may 85943
assign the credit, or a portion thereof, to any of the following:85944

        (1) A related member of that borrower;85945

        (2) The owner or lessee of the eligible research and 85946
development project;85947

        (3) A related member of the owner or lessee of the eligible 85948
research and development project.85949

        A borrower making an assignment under this division shall 85950
provide written notice of the assignment to the tax commissioner 85951
and the director of development, in such form as the commissioner 85952
prescribes, before the credit that was assigned is used. The 85953
assignor may not claim the credit to the extent it was assigned to 85954
an assignee. The assignee may claim the credit only to the extent 85955
the assignor has not claimed it.85956

        (D) If any taxpayer is a partner in a partnership or a member 85957
in a limited liability company treated as a partnership for 85958
federal income tax purposes, the taxpayer shall be allowed the 85959
taxpayer's distributive or proportionate share of the credit 85960
available through the partnership or limited liability company.85961

       Sec. 5751.53. (A) As used in this section:85962

        (1) "Net income" and "taxable year" have the same meanings as 85963
in section 5733.04 of the Revised Code.85964

        (2) "Franchise tax year" means "tax year" as defined in 85965
section 5733.04 of the Revised Code.85966

        (3) "Deductible temporary differences" and "taxable temporary 85967
differences" have the same meanings as those terms have for 85968
purposes of paragraph 13 of the statement of financial accounting 85969
standards, number 109.85970

        (4) "Qualifying taxpayer" means a taxpayer under this chapter 85971
that has a qualifying Ohio net operating loss carryforward equal 85972
to or greater than the qualifying amount.85973

        (5) "Qualifying Ohio net operating loss carryforward" means 85974
an Ohio net operating loss carryforward that the taxpayer could 85975
deduct in whole or in part for franchise tax year 2006 under 85976
section 5733.04 of the Revised Code but for the application of 85977
division (H) of this section. A qualifying Ohio net operating loss 85978
carryforward shall not exceed the amount of loss carryforward from 85979
franchise tax year 2005 as reported by the taxpayer either on a 85980
franchise tax report for franchise tax year 2005 pursuant to 85981
section 5733.02 of the Revised Code or on an amended franchise tax 85982
report prepared in good faith for such year and filed before July 85983
1, 2006.85984

        (6) "Disallowed Ohio net operating loss carryforward" means 85985
the lesser of the amounts described in division (A)(6)(a) or (b) 85986
of this section, but the amounts described in divisions (A)(6)(a) 85987
and (b) of this section shall each be reduced by the qualifying 85988
amount.85989

        (a) The qualifying taxpayer's qualifying Ohio net operating 85990
loss carryforward;85991

        (b) The Ohio net operating loss carryforward amount that the 85992
qualifying taxpayer used to compute the related deferred tax asset 85993
reflected on its books and records on the last day of its taxable 85994
year ending in 2004, adjusted for return to accrual, but this 85995
amount shall be reduced by the qualifying related valuation 85996
allowance amount. For the purposes of this section, the 85997
"qualifying related valuation allowance amount" is the amount of 85998
Ohio net operating loss reflected in the qualifying taxpayer's 85999
computation of the valuation allowance account, as shown on its 86000
books and records on the last day of its taxable year ending in 86001
2004, with respect to the deferred tax asset relating to its Ohio 86002
net operating loss carryforward amount.86003

        (7) "Other net deferred tax items apportioned to this state" 86004
is the product of (a) the amount of net deferred tax items and (b) 86005
the fraction described in division (B)(2) of section 5733.05 for 86006
the qualifying taxpayer's franchise tax year 2005.86007

        (8)(a) Subject to divisions (A)(8)(b) to (d) of this section, 86008
the "amount of other net deferred tax items" is the difference 86009
between (i) the qualifying taxpayer's deductible temporary 86010
differences, net of related valuation allowance amounts, shown on 86011
the qualifying taxpayer's books and records on the last day of its 86012
taxable year ending in 2004, and (ii) the qualifying taxpayer's 86013
taxable temporary differences as shown on those books and records 86014
on that date. The amount of other net deferred tax items may be 86015
less than zero.86016

        (b) For the purposes of computing the amount of the 86017
qualifying taxpayer's other net deferred tax items described in 86018
division (A)(8)(a) of this section, any credit carryforward 86019
allowed under Chapter 5733. of the Revised Code shall be excluded 86020
from the amount of deductible temporary differences to the extent 86021
such credit carryforward amount, net of any related valuation 86022
allowance amount, is otherwise included in the qualifying 86023
taxpayer's deductible temporary differences, net of related 86024
valuation allowance amounts, shown on the qualifying taxpayer's 86025
books and records on the last day of the qualifying taxpayer's 86026
taxable year ending in 2004.86027

        (c) No portion of the disallowed Ohio net operating loss 86028
carryforward shall be included in the computation of the amount of 86029
the qualifying taxpayer's net deferred tax items described in 86030
division (A)(8)(a) of this section.86031

        (d) In no event shall the amount of other net deferred tax 86032
items apportioned to this state exceed twenty-five per cent of the 86033
qualifying Ohio net operating loss carryforward.86034

        (9) "Amortizable amount" means:86035

        (a) If the qualifying taxpayer's other net deferred tax items 86036
apportioned to this state is equal to or greater than zero, eight 86037
per cent of the sum of the qualifying taxpayer's disallowed Ohio 86038
net operating loss carryforward and the qualifying taxpayer's 86039
other net deferred tax items apportioned to this state;86040

        (b) If the amount of the qualifying taxpayer's other net 86041
deferred tax items apportioned to this state is less than zero and 86042
if the absolute value of the amount of qualifying taxpayer's other 86043
net deferred tax items apportioned to this state is less than the 86044
qualifying taxpayer's disallowed net operating loss, eight per 86045
cent of the difference between the qualifying taxpayer's 86046
disallowed net operating loss carryforward and the absolute value 86047
of the qualifying taxpayer's other net deferred tax items 86048
apportioned to this state;86049

        (c) If the amount of the qualifying taxpayer's other net 86050
deferred tax items apportioned to this state is less than zero and 86051
if the absolute value of the amount of qualifying taxpayer's other 86052
net deferred tax items apportioned to this state is equal to or 86053
greater than the qualifying taxpayer's disallowed net operating 86054
loss, zero.86055

        (10) "Books and records" means the qualifying taxpayer's 86056
books, records, and all other information, all of which the 86057
qualifying taxpayer maintains and uses to prepare and issue its 86058
financial statements in accordance with generally accepted 86059
accounting principles.86060

        (11)(a) Except as modified by division (A)(11)(b) of this 86061
section, "qualifying amount" means fifty million dollars per 86062
person.86063

        (b) If for franchise tax year 2005 the person was a member of 86064
a combined franchise tax report, as provided by section 5733.052 86065
of the Revised Code, the "qualifying amount" is, in the aggregate, 86066
fifty million dollars for all members of that combined franchise 86067
tax report, and for purposes of divisions (A)(6)(a) and (b) of 86068
this section, those members shall allocate to each member any 86069
portion of the fifty million dollar amount. The total amount 86070
allocated to the members who are qualifying taxpayers shall equal 86071
fifty million dollars.86072

        (B) For each calendar period beginning prior to January 1, 86073
2030, there is hereby allowed a nonrefundable tax credit against 86074
the tax levied each year by this chapter on each qualifying 86075
taxpayer, on each consolidated elected taxpayer having one or more 86076
qualifying taxpayers as a member, and on each combined taxpayer 86077
having one or more qualifying taxpayers as a member. The credit 86078
shall be claimed in the order specified in section 5751.98 of the 86079
Revised Code and is allowed only to reduce the first one-half of 86080
any tax remaining after allowance of the credits that precede it 86081
in section 5751.98 of the Revised Code. No credit under division 86082
(B) of this section shall be allowed against the second one-half 86083
of such remaining tax.86084

        Except as otherwise limited by divisions (C) and (D) of this 86085
section, the maximum amount of the nonrefundable credit that may 86086
be used against the first one-half of the remaining tax for each 86087
calendar year is as follows:86088

        (1) For calendar year 2010, ten per cent of the amortizable 86089
amount;86090

        (2) For calendar year 2011, twenty per cent of the 86091
amortizable amount, less all amounts previously used;86092

        (3) For calendar year 2012, thirty per cent of the 86093
amortizable amount, less all amounts previously used;86094

        (4) For calendar year 2013, forty per cent of the amortizable 86095
amount, less all amounts previously used;86096

        (5) For calendar year 2014, fifty per cent of the amortizable 86097
amount, less all amounts previously used;86098

        (6) For calendar year 2015, sixty per cent of the amortizable 86099
amount, less all amounts previously used;86100

        (7) For calendar year 2016, seventy per cent of the 86101
amortizable amount, less all amounts previously used;86102

        (8) For calendar year 2017, eighty per cent of the 86103
amortizable amount, less all amounts previously used;86104

        (9) For calendar year 2018, ninety per cent of the 86105
amortizable amount, less all amounts previously used;86106

        (10) For each of calendar years 2019 through 2029, one 86107
hundred per cent of the amortizable amount, less all amounts used 86108
in all previous years.86109

        In no event shall the cumulative credit used for calendar 86110
years 2010 through 2029 exceed one hundred per cent of the 86111
amortizable amount.86112

        (C)(1) Except as otherwise set forth in division (C)(2) of 86113
this section, a refundable credit is allowed in calendar year 2030 86114
for any portion of the qualifying taxpayer's amortizable amount 86115
that is not used in accordance with division (B) of this section 86116
against the tax levied by this chapter on all taxpayers.86117

        (2) Division (C)(1) of this section shall not apply and no 86118
refundable credit shall be available to any person if during any 86119
portion of the calendar year 2030 the person is not subject to the 86120
tax imposed by this chapter.86121

        (D) Not later than June 30, 2006, each qualifying taxpayer, 86122
consolidated elected taxpayer, or combined taxpayer that will 86123
claim for any year the credit allowed in divisions (B) and (C) of 86124
this section shall file with the tax commissioner a report setting 86125
forth the amortizable amount available to such taxpayer and all 86126
other related information that the commissioner, by rule, 86127
requires. If the taxpayer does not timely file the report or fails 86128
to provide timely all information required by this division, the 86129
taxpayer is precluded from claiming any credit amounts described 86130
in divisions (B) and (C) of this section. Unless extended by 86131
mutual consent, the tax commissioner may, until June 30, 2010, 86132
audit the accuracy of the amortizable amount available to each 86133
taxpayer that will claim the credit, and adjust the amortizable 86134
amount or, if appropriate, issue any assessment necessary to 86135
correct any errors found upon audit.86136

        (E) For the purpose of calculating the amortizable amount, if 86137
the tax commissioner ascertains that any portion of that amount is 86138
the result of a sham transaction as described in section 5703.56 86139
of the Revised Code, the commissioner shall reduce the amortizable 86140
amount by two times the adjustment.86141

        (F) If one entity transfers all or a portion of its assets 86142
and equity to another entity as part of an entity organization or 86143
reorganization or subsequent entity organization or reorganization 86144
for which no gain or loss is recognized in whole or in part for 86145
federal income tax purposes under the Internal Revenue Code, the 86146
credits allowed by this section shall be computed in a manner 86147
consistent with that used to compute the portion, if any, of 86148
federal net operating losses allowed to the respective entities 86149
under the Internal Revenue Code. The tax commissioner may 86150
prescribe forms or rules for making the computations required by 86151
this division.86152

        (G)(1) Except as provided in division (F) of this section, no 86153
person shall pledge, collateralize, hypothecate, assign, convey, 86154
sell, exchange, or otherwise dispose of any or all tax credits, or 86155
any portion of any or all tax credits allowed under this section.86156

        (2) No credit allowed under this section is subject to 86157
execution, attachment, lien, levy, or other judicial proceeding.86158

        (H)(1)(a) Except as set forth in division (H)(1)(b) of this 86159
section and notwithstanding division (I)(1) of section 5733.04 of 86160
the Revised Code to the contrary, each person timely and fully 86161
complying with the reporting requirements set forth in division 86162
(D) of this section shall not claim, and shall not be entitled to 86163
claim, any deduction or adjustment for any Ohio net operating loss 86164
carried forward to any one or more franchise tax years after 86165
franchise tax year 2005.86166

        (b) Division (H)(1)(a) of this section applies only to the 86167
portion of the Ohio net operating loss represented by the 86168
disallowed Ohio net operating loss carryforward.86169

        (2) Notwithstanding division (I) of section 5733.04 of the 86170
Revised Code to the contrary, with respect to all franchise tax 86171
years after franchise tax year 2005, each person timely and fully 86172
complying with the reporting requirements set forth in division 86173
(D) of this section shall not claim, and shall not be entitled to 86174
claim, any deduction, exclusion, or adjustment with respect to 86175
deductible temporary differences reflected on the person's books 86176
and records on the last day of its taxable year ending in 2004.86177

        (3)(a) Except as set forth in division (H)(3)(b) of this 86178
section and notwithstanding division (I) of section 5733.04 of the 86179
Revised Code to the contrary, with respect to all franchise tax 86180
years after franchise tax year 2005, each person timely and fully 86181
complying with the reporting requirements set forth in division 86182
(D) of this section shall exclude from Ohio net income all taxable 86183
temporary differences reflected on the person's books and records 86184
on the last day of its taxable year ending in 2004.86185

        (b) In no event shall the exclusion provided by division 86186
(H)(3)(a) of this section for any franchise tax year exceed the 86187
amount of the taxable temporary differences otherwise included in 86188
Ohio net income for that year.86189

        (4) Divisions (H)(2) and (3) of this section shall apply only 86190
to the extent such items were used in the calculations of the 86191
credit provided by this section.86192

       Sec. 5751.98.  (A) To provide a uniform procedure for 86193
calculating the amount of tax due under this chapter, a taxpayer 86194
shall claim any credits to which it is entitled in the following 86195
order:86196

        (1) The nonrefundable jobs retention credit under division 86197
(B) of section 5751.50 of the Revised Code;86198

        (2) The nonrefundable credit for qualified research expenses 86199
under division (B) of section 5751.51 of the Revised Code;86200

        (3) The nonrefundable credit for a borrower's qualified 86201
research and development loan payments under division (B) of 86202
section 5751.52 of the Revised Code;86203

        (4) The nonrefundable credit for calendar years 2010 to 2029 86204
for unused net operating losses under division (B) of section 86205
5751.53 of the Revised Code;86206

        (5) The refundable credit for calendar year 2030 for unused 86207
net operating losses under division (C) of section 5751.53 of the 86208
Revised Code;86209

        (6) The refundable jobs creation credit under division (A) of 86210
section 5751.50 of the Revised Code.86211

        (B) For any credit except the credit enumerated in division 86212
(A)(4) of this section, the amount of the credit for a tax period 86213
shall not exceed the tax due after allowing for any other credit 86214
that precedes it in the order required under this section. Any 86215
excess amount of a particular credit may be carried forward if 86216
authorized under the section creating the credit.86217

       Sec. 5751.99.  (A) Whoever files a fraudulent refund claim 86218
under section 5751.08 of the Revised Code shall be fined the 86219
greater of not more than one thousand dollars or the amount of the 86220
fraudulent refund requested or imprisoned not more than sixty 86221
days, or both.86222

        (B) Except as provided in this section, whoever violates any 86223
section of this chapter, or any rule adopted by the tax 86224
commissioner under this chapter, shall be fined not more than five 86225
hundred dollars or imprisoned not more than thirty days, or both.86226

        (C) The penalties provided in this section are in addition to 86227
any penalties imposed by the tax commissioner under section 86228
5751.06 of the Revised Code.86229

       Sec. 5907.15.  There is hereby created in the state treasury86230
the Ohio veterans' homes rental, service, and medicare86231
reimbursement fund. Revenue generated from temporary use86232
agreements of a veterans' home, from the sale of meals at a home's 86233
dining halls, from rental, lease, or sharing agreements for the 86234
use of facilities, supplies, equipment, utilities, or services86235
provided by a home, and from medicare reimbursements shall be 86236
credited to the fund. The fund shall be used only for maintenance 86237
costs of the homes and for the purchase of medications, medication 86238
services, medical supplies, and medical equipment by the homes.86239

       Sec. 5919.31. (A) If an active duty member of the Ohio 86240
national guard chooses to purchase life insurance pursuant to the 86241
"Servicemembers' Group Life Insurance Act," 79 Stat. 880 et seq. 86242
(1965), 38 U.S.C. 1965 et seq., the adjutant general shall 86243
reimburse the member in an amount equal to the monthly premium 86244
paid for each month or part of a month by the member pursuant to 86245
the act while being an active duty member.86246

       (B) The adjutant general may request additional money from 86247
the controlling board if the adjutant general does not have 86248
sufficient available unencumbered funds to reimburse active duty 86249
members for life insurance premiums pursuant to this section.86250

       (C) The adjutant general may prescribe and enforce 86251
regulations to implement the requirements of this section. In 86252
prescribing and enforcing those regulations, the adjutant general 86253
need not comply with section 111.15 or Chapter 119. of the Revised 86254
Code.86255

       (D) As used in this section, "active duty member" means a 86256
member of the Ohio national guard on active duty pursuant to an 86257
executive order of the president of the United States, the "Act of 86258
October 28, 2004," 118 Stat. 1878, 32 U.S.C. 901 to 908, as 86259
amended, another act of the congress of the United States, or a 86260
proclamation of the governor, but does not include a member 86261
performing full-time Ohio national guard duty or performing 86262
special work active duty under the "Act of October 3, 1964," 78 86263
Stat. 999, 32 U.S.C. 502(f).86264

       Sec. 5919.33. Upon certification of availability of funds by 86265
the director of budget and management, the(A) The adjutant 86266
general shall pay a death benefit of twentyone hundred thousand 86267
dollars from the appropriations for operating expensesmade for 86268
the purpose to the beneficiary or beneficiaries of any active duty86269
member of the Ohio national guard who dies while performing state86270
active duty under orders issued by the adjutant general on behalf 86271
of the governor, if the beneficiary or beneficiaries has or have 86272
been so designated in a written statement as prescribed by the 86273
adjutant general.86274

       (B) As used in this section, "active duty member" means a 86275
member of the Ohio national guard on active duty pursuant to an 86276
executive order of the president of the United States, the "Act of 86277
October 28, 2004," 118 Stat. 1878, 32 U.S.C. 901 to 908, as 86278
amended, another act of the congress of the United States, or a 86279
proclamation of the governor, but does not include a member 86280
performing full-time Ohio natonal guard duty or performing special 86281
work active duty under the "Act of October 3, 1964," 78 Stat. 999, 86282
32 U.S.C. 502(f).86283

       Sec. 5919.341. There is hereby created in the state treasury 86284
the national guard scholarship reserve fund. Not later than the 86285
first day of July of each fiscal year, the Ohio board of regents 86286
shall certify to the director of budget and management the 86287
unencumbered balance of the general revenue fund appropriations 86288
made in the immediately preceding fiscal year for purposes of the 86289
Ohio national guard scholarship program created under division (B) 86290
of section 5919.34 of the Revised Code. Upon receipt of the 86291
certification, the director may transfer an amount not exceeding 86292
the certified amount from the general revenue fund to the national 86293
guard scholarship reserve fund. Moneys in the national guard 86294
scholarship reserve fund shall be used to pay scholarship 86295
obligations in excess of the general revenue fund appropriations 86296
made for that purpose. Upon request of the adjutant general, the 86297
Ohio board of regents shall seek controlling board approval to 86298
establish appropriations as necessary.86299

       The director may transfer any unencumbered balance from the 86300
national guard scholarship reserve fund to the general revenue 86301
fund.86302

       Sec. 5920.01. (A) The governor shall organize and maintain86303
within this state on a cadre or reserve basis military forces86304
capable of being expanded and trained to defend this state86305
whenever the Ohio national guard, or a part thereof, is employed86306
so as to leave this state without adequate defense. In case of an 86307
emergency proclaimed by the president, or the Congress of the86308
United States, or the governor, or caused by enemy action or86309
imminent danger thereof, the governor, as commander in chief,86310
shall expand such forces as the exigency of the occasion requires. 86311
Such forces shall be organized and maintained under regulations 86312
which shall not be inconsistent with such regulations as the 86313
secretary of defense prescribes for discipline and training and 86314
shall be composed of officers commissioned and assigned, and such 86315
able-bodied citizens of the state as are accepted therein. Such 86316
forces shall be equipped with suitable uniforms not in violation 86317
of federal laws or contrary to the regulations of the secretary of 86318
defense. Such forces shall be known as the Ohio military reserve. 86319
During the period of organization on a cadre or reserve basis the 86320
commander in chief may fix lesser rates of pay for armory drill 86321
purposes or for service in encampments and maneuvers. In the event 86322
that the regulations of the department of defense are modified so 86323
as to recognize the Ohio military reserve as a part of the Ohio86324
national guard not subject to induction into federal service, the86325
laws pertaining to the Ohio national guard shall apply to the Ohio 86326
military reserve and it shall be known as a component of the Ohio 86327
national guard.86328

       (B) The commander of the Ohio military reserve shall report 86329
all expenditures and the use of all funds by the Ohio military 86330
reserve to the general assembly. The commander annually shall 86331
deliver the report, in writing, within three months of the end of 86332
the state fiscal year.86333

       Sec. 6109.21.  (A) Except as provided in divisions (D) and86334
(E) of this section, on and after January 1, 1994, no person shall86335
operate or maintain a public water system in this state without a86336
license issued by the director of environmental protection. A86337
person who operates or maintains a public water system on January86338
1, 1994, shall obtain an initial license under this section in86339
accordance with the following schedule:86340

       (1) If the public water system is a community water system,86341
not later than January 31, 1994;86342

       (2) If the public water system is not a community water86343
system and serves a nontransient population, not later than86344
January 31, 1994;86345

       (3) If the public water system is not a community water86346
system and serves a transient population, not later than January86347
31, 1995.86348

       A person proposing to operate or maintain a new public water86349
system after January 1, 1994, in addition to complying with86350
section 6109.07 of the Revised Code and rules adopted under it,86351
shall submit an application for an initial license under this86352
section to the director prior to commencing operation of the86353
system.86354

       A license or license renewal issued under this section shall86355
be renewed annually. Such a license or license renewal shall86356
expire on the thirtieth day of January in the year following its86357
issuance. A license holder that proposes to continue operating the 86358
public water system for which the license or license renewal was 86359
issued shall apply for a license renewal at least thirty days86360
prior to that expiration date.86361

       The director shall adopt, and may amend and rescind, rules in86362
accordance with Chapter 119. of the Revised Code establishing86363
procedures governing and information to be included on86364
applications for licenses and license renewals under this section.86365
Through June 30, 20062008, each application shall be accompanied86366
by the appropriate fee established under division (M) of section86367
3745.11 of the Revised Code, provided that an applicant for an86368
initial license who is proposing to operate or maintain a new86369
public water system after January 1, 1994, shall submit a fee that86370
equals a prorated amount of the appropriate fee established under86371
that division for the remainder of the licensing year.86372

       (B) Not later than thirty days after receiving a completed86373
application and the appropriate license fee for an initial license86374
under division (A) of this section, the director shall issue the86375
license for the public water system. Not later than thirty days86376
after receiving a completed application and the appropriate86377
license fee for a license renewal under division (A) of this86378
section, the director shall do one of the following:86379

       (1) Issue the license renewal for the public water system;86380

       (2) Issue the license renewal subject to terms and conditions 86381
that the director determines are necessary to ensure compliance 86382
with this chapter and rules adopted under it;86383

       (3) Deny the license renewal if the director finds that the86384
public water system was not operated in substantial compliance86385
with this chapter and rules adopted under it.86386

       (C) The director may suspend or revoke a license or license86387
renewal issued under this section if the director finds that the86388
public water system was not operated in substantial compliance86389
with this chapter and rules adopted under it. The director shall86390
adopt, and may amend and rescind, rules in accordance with Chapter86391
119. of the Revised Code governing such suspensions and86392
revocations.86393

       (D)(1) As used in division (D) of this section, "church"86394
means a fellowship of believers, congregation, society,86395
corporation, convention, or association that is formed primarily86396
or exclusively for religious purposes and that is not formed or86397
operated for the private profit of any person.86398

       (2) This section does not apply to a church that operates or86399
maintains a public water system solely to provide water for that86400
church or for a campground that is owned by the church and86401
operated primarily or exclusively for members of the church and86402
their families. A church that, on or before March 5, 1996, has86403
obtained a license under this section for such a public water86404
system need not obtain a license renewal under this section.86405

       (E) This section does not apply to any public or nonpublic86406
school that meets minimum standards of the state board of86407
education that operates or maintains a public water system solely86408
to provide water for that school.86409

       Sec. 6111.30. (A) Applications for a section 401 water 86410
quality certification required under division (P) of section 86411
6111.03 of the Revised Code shall be submitted on forms provided 86412
by the director of environmental protection and shall include all 86413
information required on those forms as well as all of the 86414
following:86415

       (1) A copy of a letter from the United States army corps of 86416
engineers documenting its jurisdiction over the wetlands, streams, 86417
or other waters of the state that are the subject of the section 86418
401 water quality certification application;86419

       (2) If the project involves impacts to a wetland, a wetland 86420
characterization analysis consistent with the Ohio rapid 86421
assessment method;86422

       (3) If the project involves a stream for which a specific 86423
aquatic life use designation has not been made, a use 86424
attainability analysis;86425

       (4) A specific and detailed mitigation proposal, including 86426
the location and proposed legal mechanism for protecting the 86427
property in perpetuity;86428

       (5) Applicable fees;86429

       (6) Site photographs;86430

       (7) Adequate documentation confirming that the applicant has 86431
requested comments from the department of natural resources and 86432
the United States fish and wildlife service regarding threatened 86433
and endangered species, including the presence or absence of 86434
critical habitat;86435

       (8) Descriptions, schematics, and appropriate economic 86436
information concerning the applicant's preferred alternative, 86437
nondegradation alternatives, and minimum degradation alternatives 86438
for the design and operation of the project;86439

       (9) The applicant's investigation report of the waters of the 86440
United States in support of a section 404 permit application 86441
concerning the project;86442

       (10) A copy of the United States army corps of engineers' 86443
public notice regarding the section 404 permit application 86444
concerning the project.86445

       (B) Not later than fifteen business days after the receipt of 86446
an application for a section 401 water quality certification, the 86447
director shall review the application to determine if it is 86448
complete and shall notify the applicant in writing as to whether 86449
the application is complete. If the director fails to notify the 86450
applicant within fifteen business days regarding the completeness 86451
of the application, the application is considered complete. If the 86452
director determines that the application is not complete, the 86453
director shall include with the written notification an itemized 86454
list of the information or materials that are necessary to 86455
complete the application. If the applicant fails to provide the 86456
information or materials within sixty days after the director's 86457
receipt of the application, the director may return the incomplete 86458
application to the applicant and take no further action on the 86459
application. If the application is returned to the applicant 86460
because it is incomplete, the director shall return the review fee 86461
levied under division (A)(1), (2), or (3) of section 3745.114 of 86462
the Revised Code to the applicant, but shall retain the 86463
application fee levied under that section.86464

       (C) Not later than twenty-one days after a determination that 86465
an application is complete under division (B) of this section, the 86466
applicant shall publish public notice of the director's receipt of 86467
the complete application in a newspaper of general circulation in 86468
the county in which the project that is the subject of the 86469
application is located. The public notice shall be in a form 86470
acceptable to the director. The applicant shall promptly provide 86471
the director with proof of publication. The applicant may choose, 86472
subject to review by and approval of the director, to include in 86473
the public notice an advertisement for an antidegradation public 86474
hearing on the application pursuant to section 6111.12 of the 86475
Revised Code. There shall be a public comment period of thirty 86476
days following the publication of the public notice.86477

       (D) If the director determines that there is significant 86478
public interest in a public hearing as evidenced by the public 86479
comments received concerning the application and by other requests 86480
for a public hearing on the application, the director or the 86481
director's representative shall conduct a public hearing 86482
concerning the application. Notice of the public hearing shall be 86483
published by the applicant, subject to review and approval by the 86484
director, at least thirty days prior to the date of the hearing in 86485
a newspaper of general circulation in the county in which the 86486
project that is the subject of the application is to take place. 86487
If a public hearing is requested concerning an application, the 86488
director shall accept comments concerning the application until 86489
five business days after the public hearing. A public hearing 86490
conducted under this division shall take place not later than one 86491
hundred days after the application is determined to be complete.86492

       (E) The director shall forward all public comments concerning 86493
an application submitted under this section that are received 86494
through the public involvement process required by rules adopted 86495
under this chapter to the applicant not later than five business 86496
days after receipt of the comments by the director.86497

       (F) The applicant shall respond in writing to written 86498
comments or to deficiencies identified by the director during the 86499
course of reviewing the application not later than fifteen days 86500
after receiving or being notified of them.86501

       (G) The director shall issue or deny a section 401 water 86502
quality certification not later than one hundred eighty days after 86503
the complete application for the certification is received. The 86504
director shall provide an applicant for a section 401 water 86505
quality certification with an opportunity to review the 86506
certification prior to its issuance.86507

       (H) The director shall maintain an accessible database that 86508
includes environmentally beneficial water restoration and 86509
protection projects that may serve as potential mitigation 86510
projects for projects in the state for which a section 401 water 86511
quality certification is required. A project's inclusion in the 86512
database does not constitute an approval of the project.86513

       (I) As used in this section and sections 6111.31 and 6111.32 86514
of the Revised Code, "section 401 water quality certification" 86515
means certification pursuant to section 401 of the Federal Water 86516
Pollution Control Act and this chapter and rules adopted under it 86517
that any discharge, as set forth in section 401, will comply with 86518
sections 301, 302, 303, 306, and 307 of the Federal Water 86519
Pollution Control Act.86520

       Sec. 6111.31.  All substantive wetland, stream, or lake 86521
mitigation standards, criteria, scientific methods, processes, or 86522
other procedures or policies that are used in a uniform manner by 86523
the director of environmental protection in evaluating the 86524
adequacy of a mitigation proposal contained in an application for 86525
a section 401 water quality certification shall be adopted and 86526
reviewed in accordance with sections 119.03 and 119.032 of the 86527
Revised Code before those standards, criteria, or scientific 86528
methods have the force of law. Until that time, any such 86529
mitigation standards, criteria, scientific methods, processes, or 86530
other procedures or policies that are used by or approved for use 86531
by the director to evaluate, measure, or determine the success, 86532
approval, or denial of a mitigation proposal, but that have not 86533
been subject to review under sections 119.03 and 119.032 of the 86534
Revised Code shall not be used as the basis for any certification 86535
or permit denial or as a standard applied to mitigation unless the 86536
applicant has been notified in advance that additional mitigation 86537
standards, criteria, scientific methods, processes, or procedures 86538
will be considered as part of the review process.86539

       Sec. 6111.32.  (A) Mitigation for wetland or stream impacts 86540
for which a section 401 water quality certification has been 86541
issued under section 6111.30 of the Revised Code shall be 86542
conducted by the applicant for the certification in accordance 86543
with the following requirements:86544

       (1) For impacts to one acre or less of category 1 or category 86545
2 wetlands, the applicant shall conduct mitigation within the same 86546
United States army corps of engineers district as the impacts, 86547
provided that the mitigation is conducted within that portion of 86548
the district that is located within this state.86549

       (2) For all other wetland or stream impacts, mitigation shall 86550
occur in the following preferred order:86551

       (a) Practicable on-site mitigation;86552

       (b) Mitigation within the eight-digit United States 86553
geological survey watershed or mitigation within the service area 86554
of a wetland mitigation bank approved by a mitigation bank team;86555

       (c) Mitigation in an adjacent eight-digit United States 86556
geological survey watershed;86557

       (d) Mitigation within the same United States army corps of 86558
engineers district as the impacts, provided that the mitigation is 86559
conductd within that portion of the district that is located 86560
within this state.86561

       (B) As used in this section, "category 1 wetland" and 86562
"category 2 wetland" have the same meanings as in section 6111.02 86563
of the Revised Code.86564

       Sec. 6121.04.  The Ohio water development authority may do 86565
any or all of the following:86566

       (A) Adopt bylaws for the regulation of its affairs and the 86567
conduct of its business;86568

       (B) Adopt an official seal;86569

       (C) Maintain a principal office and suboffices at places 86570
within the state that it designates;86571

       (D) Sue and plead in its own name and be sued and impleaded 86572
in its own name with respect to its contracts or torts of its 86573
members, employees, or agents acting within the scope of their 86574
employment, or to enforce its obligations and covenants made under 86575
sections 6121.06, 6121.08, and 6121.13 of the Revised Code. Any 86576
such actions against the authority shall be brought in the court 86577
of common pleas of the county in which the principal office of the 86578
authority is located or in the court of common pleas of the county 86579
in which the cause of action arose, provided that the county is 86580
located within this state, and all summonses, exceptions, and 86581
notices of every kind shall be served on the authority by leaving 86582
a copy thereof at the principal office with the person in charge 86583
thereof or with the secretary-treasurer of the authority.86584

       (E) Make loans and grants to governmental agencies for the 86585
acquisition or construction of water development projects by any 86586
such governmental agency and adopt rules and procedures for making 86587
such loans and grants;86588

       (F) Acquire, construct, reconstruct, enlarge, improve, 86589
furnish, equip, maintain, repair, operate, or lease or rent to, or 86590
contract for operation by, a governmental agency or person, water 86591
development projects, and establish rules for the use of those 86592
projects;86593

       (G) Make available the use or services of any water 86594
development project to one or more persons, one or more 86595
governmental agencies, or any combination thereof;86596

       (H) Issue water development revenue bonds and notes and water 86597
development revenue refunding bonds of the state, payable solely 86598
from revenues as provided in section 6121.06 of the Revised Code, 86599
unless the bonds are refunded by refunding bonds, for the purpose 86600
of paying any part of the cost of one or more water development 86601
projects or parts thereof;86602

       (I) Acquire by gift or purchase, hold, and dispose of real 86603
and personal property in the exercise of its powers and the 86604
performance of its duties under this chapter;86605

       (J) Acquire, in the name of the state, by purchase or 86606
otherwise, on terms and in the manner that it considers proper, or 86607
by the exercise of the right of condemnation in the manner 86608
provided by section 6121.18 of the Revised Code, public or private 86609
lands, including public parks, playgrounds, or reservations, or 86610
parts thereof or rights therein, rights-of-way, property, rights, 86611
easements, and interests that it considers necessary for carrying 86612
out this chapter, but excluding the acquisition by the exercise of 86613
the right of condemnation of any waste water facility or water 86614
management facility owned by any person or governmental agency, 86615
and compensation shall be paid for public or private lands so 86616
taken, except that a government-owned waste water facility may be 86617
appropriated in accordance with section 6121.041 of the Revised 86618
Code;86619

       (K) Adopt rules to protect augmented flow in waters of the 86620
state, to the extent augmented by a water development project, 86621
from depletion so it will be available for beneficial use, and to 86622
provide standards for the withdrawal from waters of the state of 86623
the augmented flow created by a water development project that is 86624
not returned to the waters of the state so augmented and to86625
establish reasonable charges therefor if considered necessary by 86626
the authority;86627

       (L) Make and enter into all contracts and agreements and 86628
execute all instruments necessary or incidental to the performance 86629
of its duties and the execution of its powers under this chapter 86630
in accordance with the following requirements:86631

       (1) When the cost under any such contract or agreement, other 86632
than compensation for personal services, involves an expenditure 86633
of more than tentwenty-five thousand dollars, the authority shall 86634
make a written contract with the lowest responsive and responsible 86635
bidder, in accordance with section 9.312 of the Revised Code, 86636
after advertisement for not less than two consecutive weeks in a86637
newspaper of general circulation in Franklin county, and in other86638
publications that the authority determines, which shall state the 86639
general character of the work and the general character of the 86640
materials to be furnished, the place where plans and 86641
specifications therefor may be examined, and the time and place of 86642
receiving bids, provided that a contract or lease for the 86643
operation of a water development project constructed and owned by 86644
the authority or an agreement for cooperation in the acquisition 86645
or construction of a water development project pursuant to section 86646
6121.13 of the Revised Code or any contract for the construction 86647
of a water development project that is to be leased by the 86648
authority to, and operated by, persons who are not governmental 86649
agencies and the cost of the project is to be amortized86650
exclusively from rentals or other charges paid to the authority by 86651
persons who are not governmental agencies is not subject to the 86652
foregoing requirements and the authority may enter into such a 86653
contract or lease or such an agreement pursuant to negotiation and 86654
upon terms and conditions and for the period that it finds to be 86655
reasonable and proper in the circumstances and in the best86656
interests of proper operation or of efficient acquisition or 86657
construction of the project.86658

       (2) Each bid for a contract for the construction, demolition, 86659
alteration, repair, or reconstruction of an improvement shall 86660
contain the full name of every person interested in it and shall 86661
meet the requirements of section 153.54 of the Revised Code.86662

       (3) Each bid for a contract except as provided in division 86663
(L)(2) of this section shall contain the full name of every person 86664
or company interested in it and shall be accompanied by a 86665
sufficient bond or certified check on a solvent bank that if the 86666
bid is accepted, a contract will be entered into and the 86667
performance thereof secured.86668

       (4) The authority may reject any and all bids.86669

       (5) A bond with good and sufficient surety, approved by the 86670
authority, shall be required of every contractor awarded a 86671
contract except as provided in division (L)(2) of this section, in 86672
an amount equal to at least fifty per cent of the contract price, 86673
conditioned upon the faithful performance of the contract.86674

       (M) Employ managers, superintendents, and other employees and 86675
retain or contract with consulting engineers, financial 86676
consultants, accounting experts, architects, attorneys, and other 86677
consultants and independent contractors that are necessary in its 86678
judgment to carry out this chapter, and fix the compensation 86679
thereof. All expenses thereof shall be payable solely from the86680
proceeds of water development revenue bonds or notes issued under 86681
this chapter, from revenues, or from funds appropriated for that 86682
purpose by the general assembly.86683

       (N) Receive and accept from any federal agency, subject to 86684
the approval of the governor, grants for or in aid of the 86685
construction of any water development project or for research and 86686
development with respect to waste water or water management 86687
facilities, and receive and accept aid or contributions from any 86688
source of money, property, labor, or other things of value, to be 86689
held, used, and applied only for the purposes for which the grants 86690
and contributions are made;86691

       (O) Engage in research and development with respect to waste 86692
water or water management facilities;86693

       (P) Purchase fire and extended coverage and liability 86694
insurance for any water development project and for the principal 86695
office and suboffices of the authority, insurance protecting the 86696
authority and its officers and employees against liability for 86697
damage to property or injury to or death of persons arising from 86698
its operations, and any other insurance the authority may agree to 86699
provide under any resolution authorizing its water development 86700
revenue bonds or in any trust agreement securing the same;86701

       (Q) Charge, alter, and collect rentals and other charges for 86702
the use or services of any water development project as provided 86703
in section 6121.13 of the Revised Code;86704

       (R) Provide coverage for its employees under Chapters 145., 86705
4123., and 4141. of the Revised Code;86706

       (S) Assist in the implementation and administration of the 86707
drinking water assistance fund and program created in section 86708
6109.22 of the Revised Code and the water pollution control loan 86709
fund and program created in section 6111.036 of the Revised Code, 86710
including, without limitation, performing or providing fiscal 86711
management for the funds and investing and disbursing moneys in 86712
the funds, and enter into all necessary and appropriate agreements 86713
with the director of environmental protection for those purposes;86714

       (T) Issue water development revenue bonds and notes of the 86715
state in principal amounts that are necessary for the purpose of 86716
raising moneys for the sole benefit of the water pollution control 86717
loan fund created in section 6111.036 of the Revised Code, 86718
including moneys to meet the requirement for providing matching 86719
moneys under division (D) of that section. The bonds and notes may86720
be secured by appropriate trust agreements and repaid from moneys 86721
credited to the fund from payments of principal and interest on 86722
loans made from the fund, as provided in division (F) of section 86723
6111.036 of the Revised Code.86724

       (U) Issue water development revenue bonds and notes of the 86725
state in principal amounts that are necessary for the purpose of 86726
raising moneys for the sole benefit of the drinking water 86727
assistance fund created in section 6109.22 of the Revised Code, 86728
including moneys to meet the requirement for providing matching 86729
moneys under divisions (B) and (F) of that section. The bonds and 86730
notes may be secured by appropriate trust agreements and repaid 86731
from moneys credited to the fund from payments of principal and 86732
interest on loans made from the fund, as provided in division (F) 86733
of section 6109.22 of the Revised Code.86734

       (V) Make loans to and enter into agreements with boards of 86735
county commissioners for the purposes of section 1521.26 of the 86736
Revised Code and adopt rules establishing requirements and 86737
procedures for making the loans and entering into the agreements;86738

       (W) Do all acts necessary or proper to carry out the powers86739
expressly granted in this chapter.86740

       Any instrument by which real property is acquired pursuant to 86741
this section shall identify the agency of the state that has the 86742
use and benefit of the real property as specified in section 86743
5301.012 of the Revised Code.86744

       Sec. 6123.04.  For the purposes of this chapter, the Ohio86745
water development authority may:86746

       (A) Adopt bylaws for the regulation of its affairs and the86747
conduct of its business under this chapter;86748

       (B) Sue and plead in its own name; be sued and impleaded in 86749
its own name with respect to its contracts or torts of its86750
members, employees, or agents acting within the scope of their86751
employment, or to enforce its obligations and covenants made under 86752
sections 6123.06, 6123.08, and 6123.13 of the Revised Code. Any 86753
such actions against the authority shall be brought in the court 86754
of common pleas of the county in which the principal office of the 86755
authority is located, or in the court of common pleas of the 86756
county in which the cause of action arose, provided such county is 86757
located within this state, and all summonses, exceptions, and 86758
notices of every kind shall be served on the authority by leaving 86759
a copy thereof at the principal office with the person in charge 86760
thereof or with the secretary-treasurer of the authority.86761

       (C) Make loans and grants to governmental agencies for the86762
acquisition or construction of development projects by any such86763
governmental agency and adopt rules and procedures for making such 86764
loans and grants;86765

       (D) Acquire, construct, reconstruct, enlarge, improve,86766
furnish, equip, maintain, repair, operate, lease or rent to, or86767
contract for operation by, a person or governmental agency,86768
development projects, and establish rules for the use of such86769
projects;86770

       (E) Make available the use or services of any development86771
project to one or more persons, one or more governmental agencies, 86772
or any combination thereof;86773

       (F) Issue development revenue bonds and notes and development 86774
revenue refunding bonds of the state, payable solely from revenues 86775
as provided in section 6123.06 of the Revised Code, unless the 86776
bonds be refunded by refunding bonds, for the purpose of paying 86777
any part of the cost of one or more development projects or parts 86778
thereof;86779

       (G) Acquire by gift or purchase, hold, and dispose of real86780
and personal property in the exercise of the powers of the86781
authority and the performance of its duties under this chapter;86782

       (H) Acquire, in the name of the state, by purchase or86783
otherwise, on such terms and in such manner as the authority86784
determines proper, public or private lands, or parts thereof or86785
rights therein, rights-of-way, property, rights, easements, and86786
interests as it finds necessary for carrying out this chapter; and 86787
compensation shall be paid for public or private lands so taken;86788

       (I) Make and enter into all contracts and agreements and86789
execute all instruments necessary or incidental to the performance 86790
of its duties and the execution of its powers under this chapter:86791

       (1) When the cost under any such contract or agreement, other 86792
than compensation for personal services, involves an expenditure 86793
of more than twotwenty-five thousand dollars, the authority shall 86794
make a written contract with the lowest responsive and responsible 86795
bidder, in accordance with section 9.312 of the Revised Code, 86796
after advertisement for not less than two consecutive weeks in a 86797
newspaper of general circulation in Franklin county, and in such 86798
other publications as the authority determines, such notice shall 86799
state the general character of the work and materials to be 86800
furnished, the place where plans and specifications therefor may 86801
be examined, and the time and place of receiving bids. Provided, 86802
that a contract or lease for the operation of a development 86803
project constructed and owned by the authority or an agreement for 86804
cooperation in the acquisition or construction of a development 86805
project pursuant to section 6123.13 of the Revised Code or any 86806
contract for the construction of a development project that is to 86807
be leased by the authority to, and operated by, persons who are 86808
not governmental agencies and the cost of such project is to be 86809
amortized exclusively from rentals or other charges paid to the 86810
authority by persons who are not governmental agencies or by 86811
governmental agencies that receive the use or services of such 86812
project, including governmental agencies that are parties to an 86813
agreement for cooperation in the acquisition or construction of 86814
such development project pursuant to section 6123.13 of the 86815
Revised Code, is not subject to the foregoing requirements and the 86816
authority may enter into such contract or lease or such agreement 86817
pursuant to negotiation and upon such terms and conditions and for 86818
such period as it finds to be reasonable and proper in the 86819
circumstances and in the best interests of proper operation or of 86820
efficient acquisition or construction of such project.86821

       (2) Each bid for a contract for the construction, demolition, 86822
alteration, repair, or reconstruction of an improvement shall 86823
contain the full name of every person interested in it and who 86824
meets the requirements of section 153.54 of the Revised Code.86825

       (3) Each bid for a contract, except as provided in division 86826
(I)(2) of this section, shall contain the full name of every 86827
person or company interested in it and shall be accompanied by a 86828
sufficient bond or certified check on a solvent bank that if the 86829
bid is accepted a contract will be entered into and the86830
performance thereof secured.86831

       (4) The authority may reject any and all bids.86832

       (5) A bond with good and sufficient surety, approved by the 86833
authority, shall be required of every contractor awarded a86834
contract except as provided in division (I)(2) of this section, in 86835
an amount equal to at least fifty per cent of the contract price, 86836
conditioned upon the faithful performance of the contract.86837

       (J) Employ managers, superintendents, and other employees and 86838
retain or contract with consulting engineers, financial86839
consultants, accounting experts, architects, attorneys, and such86840
other consultants and independent contractors as are necessary in86841
its judgment to carry out this chapter, and fix the compensation86842
thereof. All expenses thereof shall be payable solely from the86843
proceeds of development revenue bonds or notes issued under this86844
chapter, from revenues, or from funds appropriated for such86845
purpose by the general assembly.86846

       (K) Receive and accept from any federal agency, subject to86847
the approval of the governor, grants for or in aid of the86848
construction of any development project or for research and86849
development with respect to solid waste facilities or energy86850
resource development facilities, and receive and accept aid or86851
contributions from any source of money, property, labor, or other86852
things of value, to be held, used, and applied only for the86853
purposes for which such grants and contributions are made;86854

       (L) Engage in research and development with respect to solid 86855
waste facilities or energy resource development facilities;86856

       (M) Purchase fire and extended coverage and liability86857
insurance for any development project and for the principal office 86858
and sub-offices of the authority, insurance protecting the86859
authority and its officers and employees against liability for86860
damage to property or injury to or death of persons arising from86861
its operations, and any other insurance the authority may agree to 86862
provide under any resolution authorizing its development revenue 86863
bonds or in any trust agreement securing the same;86864

       (N) Charge, alter, and collect rentals and other charges for 86865
the use or services of any development project as provided in86866
section 6123.13 of the Revised Code;86867

       (O) Provide coverage for its employees under Chapters 145., 86868
4123., and 4141. of the Revised Code;86869

       (P) Do all acts necessary or proper to carry out the powers 86870
expressly granted in this chapter.86871

       Any instrument by which real property is acquired pursuant to 86872
this section shall identify the agency of the state that has the 86873
use and benefit of the real property as specified in section 86874
5301.012 of the Revised Code.86875

       Section 101.02. That existing sections 9.24, 9.833, 9.90, 86876
9.981, 101.68, 102.02, 102.06, 108.05, 109.54, 109.57, 109.79, 86877
109.91, 109.98, 117.10, 120.06, 120.13, 120.23, 120.52, 120.53, 86878
121.37, 121.38, 122.011, 122.17, 122.171, 122.18, 122.40, 122.603, 86879
122.71, 122.72, 122.73, 122.74, 122.75, 122.751, 122.76, 122.77, 86880
122.78, 122.79, 122.82, 122.83, 122.95, 122.951, 123.01, 123.152, 86881
123.17, 124.07, 124.321, 124.328, 125.041, 125.05, 125.11, 86882
125.831, 125.832, 126.25, 127.16, 131.02, 131.23, 133.08, 133.081, 86883
133.09, 140.01, 141.011, 141.04, 145.01, 145.33, 147.05, 147.10, 86884
147.11, 147.12, 147.371, 149.30, 150.07, 150.10, 154.11, 173.26, 86885
173.40, 173.99, 181.251, 181.51, 181.52, 181.54, 181.55, 181.56, 86886
183.28, 184.02, 305.171, 307.37, 307.695, 307.86, 307.88, 317.08, 86887
317.36, 319.20, 319.302, 321.24, 323.01, 323.152, 325.31, 329.04, 86888
329.051, 339.72, 339.88, 340.03, 340.16, 351.01, 351.021, 351.06, 86889
351.141, 351.16, 718.09, 718.10, 731.14, 731.141, 742.59, 901.43, 86890
903.05, 905.32, 905.33, 905.331, 905.36, 905.37, 905.38, 905.381, 86891
905.50, 905.501, 905.66, 907.16, 913.02, 913.23, 915.02, 915.16, 86892
915.24, 921.02, 921.16, 923.44, 923.45, 923.46, 926.01, 927.69, 86893
1111.04, 1327.511, 1502.02, 1509.06, 1509.072, 1509.31, 1515.14, 86894
1517.02, 1521.062, 1531.27, 1533.10, 1533.11, 1533.111, 1533.112, 86895
1533.12, 1533.32, 1541.03, 1548.06, 1707.01, 1707.17, 1707.19, 86896
1707.20, 1707.22, 1707.23, 1707.25, 1707.261, 1707.431, 1707.44, 86897
1707.46, 1711.52, 1711.53, 1713.03, 1751.03, 1751.04, 1751.05, 86898
1901.26, 1901.31, 1907.24, 2113.041, 2117.061, 2151.352, 2151.416, 86899
2152.43, 2152.74, 2303.201, 2305.234, 2329.66, 2743.191, 2744.05, 86900
2744.08, 2901.07, 2913.40, 2921.13, 2923.25, 2923.35, 2923.46, 86901
2925.44, 2933.43, 2933.74, 2949.092, 2971.05, 3107.10, 3111.04, 86902
3119.54, 3121.12, 3121.50, 3125.18, 3301.079, 3301.0710, 86903
3301.0711, 3301.0714, 3301.0715, 3301.12, 3301.16, 3301.311, 86904
3301.32, 3301.56, 3301.86, 3301.88, 3302.03, 3311.19, 3313.12, 86905
3313.202, 3313.207, 3313.208, 3313.209, 3313.33, 3313.489, 86906
3313.975, 3313.976, 3313.977, 3313.978, 3313.98, 3314.013, 86907
3314.015, 3314.02, 3314.021, 3314.03, 3314.031, 3314.032, 86908
3314.034, 3314.06, 3314.074, 3314.08, 3314.13, 3315.17, 3315.18, 86909
3315.37, 3316.06, 3316.16, 3317.01, 3317.013, 3317.02, 3317.021, 86910
3317.022, 3317.023, 3317.024, 3317.026, 3317.027, 3317.028, 86911
3317.029, 3317.0216, 3317.0217, 3317.03, 3317.031, 3317.05, 86912
3317.052, 3317.053, 3317.06, 3317.063, 3317.07, 3317.081, 3317.09, 86913
3317.10, 3317.16, 3317.20, 3317.21, 3317.22, 3317.23, 3317.50, 86914
3317.51, 3318.091, 3318.33, 3319.081, 3319.17, 3319.22, 3319.235, 86915
3319.55, 3323.021, 3323.091, 3323.14, 3323.16, 3327.01, 3332.092, 86916
3333.04, 3333.044, 3333.12, 3333.121, 3333.27, 3333.28, 3333.36, 86917
3333.38, 3334.01, 3334.02, 3334.03, 3334.07, 3334.08, 3334.09, 86918
3334.10, 3334.11, 3334.12, 3334.15, 3334.16, 3334.17, 3334.18, 86919
3334.19, 3335.02, 3345.10, 3345.19, 3345.32, 3353.01, 3353.04, 86920
3353.06, 3353.07, 3362.02, 3365.01, 3365.02, 3365.04, 3365.041, 86921
3365.05, 3365.08, 3375.40, 3375.48, 3375.49, 3375.54, 3375.55, 86922
3381.02, 3381.04, 3381.05, 3381.06, 3381.07, 3381.15, 3383.02, 86923
3383.09, 3501.141, 3501.17, 3513.04, 3513.041, 3513.05, 3513.052, 86924
3513.257, 3513.259, 3513.261, 3517.13, 3517.151, 3701.023, 86925
3701.146, 3701.65, 3702.141, 3702.51, 3702.68, 3702.71, 3702.74, 86926
3703.01, 3703.03, 3703.04, 3703.05, 3703.06, 3703.07, 3703.08, 86927
3703.10, 3703.99, 3704.035, 3704.143, 3704.99, 3705.24, 3712.03, 86928
3714.07, 3721.01, 3721.011, 3721.02, 3721.03, 3721.07, 3721.121, 86929
3721.15, 3721.19, 3721.21, 3721.50, 3721.51, 3721.52, 3721.56, 86930
3721.58, 3722.01, 3722.02, 3722.04, 3734.01, 3734.20, 3734.21, 86931
3734.22, 3734.23, 3734.28, 3734.57, 3734.573, 3734.85, 3734.901, 86932
3734.9010, 3735.27, 3743.01, 3743.02, 3743.04, 3743.05, 3743.06, 86933
3743.15, 3743.17, 3743.18, 3743.19, 3743.57, 3743.59, 3743.65, 86934
3743.75, 3745.11, 3745.12, 3746.04, 3746.071, 3748.07, 3748.13, 86935
3773.34, 3773.38, 3773.39, 3773.40, 3773.57, 3781.07, 3781.10, 86936
3781.102, 3793.09, 3901.021, 3901.17, 3901.3814, 3901.78, 3903.14, 86937
3903.42, 3905.04, 3905.36, 3905.40, 3923.27, 4112.12, 4115.32, 86938
4115.34, 4117.03, 4117.08, 4117.10, 4117.24, 4121.12, 4121.121, 86939
4121.125, 4123.27, 4123.44, 4123.47, 4301.10, 4301.43, 4303.182, 86940
4501.01, 4501.37, 4503.103, 4503.471, 4503.48, 4503.50, 4503.53, 86941
4503.571, 4503.59, 4503.73, 4503.85, 4503.91, 4505.06, 4506.03, 86942
4506.07, 4511.191, 4511.75, 4517.01, 4519.01, 4519.02, 4519.09, 86943
4561.17, 4561.18, 4561.21, 4703.15, 4705.09, 4709.05, 4713.02, 86944
4717.05, 4723.32, 4723.33, 4723.34, 4723.341, 4723.63, 4731.65, 86945
4731.71, 4736.11, 4736.12, 4740.14, 4753.03, 4753.06, 4753.071, 86946
4753.08, 4753.09, 4755.03, 4755.48, 4766.09, 4905.10, 4905.54, 86947
4905.95, 4911.18, 4973.171, 5101.16, 5101.181, 5101.184, 5101.21, 86948
5101.241, 5101.26, 5101.31, 5101.35, 5101.36, 5101.46, 5101.47, 86949
5101.75, 5101.752, 5101.80, 5101.801, 5101.821, 5104.01, 5104.02, 86950
5104.32, 5107.05, 5107.10, 5107.26, 5107.30, 5107.58, 5110.01, 86951
5110.05, 5110.352, 5110.39, 5111.011, 5111.019, 5111.0112, 86952
5111.02, 5111.021, 5111.022, 5111.023, 5111.025, 5111.042, 86953
5111.06, 5111.082, 5111.11, 5111.111, 5111.112, 5111.113, 5111.16, 86954
5111.17, 5111.19, 5111.20, 5111.204, 5111.21, 5111.22, 5111.221, 86955
5111.23, 5111.231, 5111.235, 5111.241, 5111.25, 5111.251, 86956
5111.255, 5111.257, 5111.26, 5111.261, 5111.263, 5111.264, 86957
5111.27, 5111.28, 5111.29, 5111.291, 5111.30, 5111.31, 5111.32, 86958
5111.33, 5111.62, 5111.81, 5111.85, 5111.87, 5111.871, 5111.88, 86959
5111.97, 5111.99, 5112.03, 5112.08, 5112.17, 5112.30, 5112.31, 86960
5115.20, 5115.22, 5115.23, 5119.61, 5120.09, 5120.51, 5121.01, 86961
5121.02, 5121.03, 5121.04, 5121.05, 5121.06, 5121.061, 5121.07, 86962
5121.08, 5121.09, 5121.10, 5121.11, 5121.12, 5121.21, 5122.03, 86963
5122.31, 5123.01, 5123.045, 5123.046, 5123.047, 5123.049, 86964
5123.0412, 5123.34, 5123.41, 5123.701, 5123.71, 5123.76, 5126.01, 86965
5126.035, 5126.042, 5126.054, 5126.055, 5126.056, 5126.057, 86966
5126.12, 5139.01, 5139.36, 5153.16, 5502.01, 5502.03, 5531.10, 86967
5540.01, 5540.09, 5549.01, 5552.01, 5573.13, 5703.052, 5703.053, 86968
5703.47, 5703.50, 5703.70, 5703.80, 5705.091, 5705.391, 5705.40, 86969
5709.07, 5709.12, 5709.121, 5709.40, 5709.73, 5709.77, 5709.78, 86970
5711.01, 5711.16, 5711.21, 5711.22, 5711.28, 5713.01, 5715.01, 86971
5715.24, 5719.041, 5725.01, 5725.19, 5727.01, 5727.02, 5727.06, 86972
5727.08, 5727.10, 5727.11, 5727.111, 5727.12, 5727.23, 5727.84, 86973
5727.85, 5728.01, 5728.02, 5728.03, 5728.04, 5728.06, 5728.08, 86974
5729.08, 5731.01, 5731.05, 5731.131, 5731.14, 5731.18, 5731.181, 86975
5731.22, 5731.23, 5731.39, 5731.41, 5733.01, 5733.065, 5733.066, 86976
5733.33, 5733.351, 5733.352, 5733.40, 5733.41, 5733.49, 5733.98, 86977
5737.03, 5739.01, 5739.02, 5739.025, 5739.03, 5739.033, 5739.034, 86978
5739.035, 5739.08, 5739.09, 5739.10, 5739.12, 5739.16, 5739.17, 86979
5741.02, 5741.16, 5743.01, 5743.02, 5743.03, 5743.05, 5743.071, 86980
5743.08, 5743.10, 5743.111, 5743.112, 5743.14, 5743.15, 5743.16, 86981
5743.18, 5743.19, 5743.20, 5743.32, 5743.33, 5747.01, 5747.012, 86982
5747.02, 5747.05, 5747.08, 5747.113, 5747.212, 5747.331, 5747.70, 86983
5747.80, 5747.98, 5748.01, 5748.02, 5748.03, 5748.04, 5748.08, 86984
5749.02, 5907.15, 5919.33, 5920.01, 6109.21, 6121.04, and 6123.04 86985
of the Revised Code are hereby repealed. Existing Section 41.36 of 86986
Am. Sub. H.B. 95 of the 125th General Assembly is hereby repealed.86987

       Section 105.01.  That sections 181.53, 339.77, 742.36, 86988
1541.221, 3301.31, 3301.33, 3301.34, 3301.35, 3301.36, 3301.37, 86989
3301.38, 3301.80, 3301.85, 3301.87, 3311.40, 3314.15, 3317.012, 86990
3317.0212, 3317.0213, 3353.02, 3353.03, 3506.17, 3704.14, 86991
3704.142, 3704.17, 3721.511, 3901.41, 3901.781, 3901.782, 86992
3901.783, 3901.784, 4519.06, 4519.07, 5101.751, 5101.753, 86993
5101.754, 5111.041, 5111.205, 5111.24, 5111.262, 5111.34, 5115.10, 86994
5115.11, 5115.12, 5115.13, 5115.14, 5123.041, 5123.048, 5571.13, 86995
5731.20, and 5733.122 of the Revised Code are hereby repealed.86996

       Section 200.01. Except as otherwise provided, all 86997
appropriation items (AI) in this act are appropriated out of any86998
moneys in the state treasury to the credit of the designated fund86999
that are not otherwise appropriated. For all appropriations made87000
in this act, the amounts in the first column are for fiscal year87001
2006 and the amounts in the second column are for fiscal year87002
2007.87003

FND AI AI TITLE APPROPRIATIONS 87004

       Section 203.03.  ACC ACCOUNTANCY BOARD OF OHIO87005

General Services Fund Group87006

4J8 889-601 CPA Education Assistance $ 209,510 $ 209,510 87007
4K9 889-609 Operating Expenses $ 1,069,776 $ 1,069,776 87008
TOTAL GSF General Services Fund 87009
Group $ 1,279,286 $ 1,279,286 87010
TOTAL ALL BUDGET FUND GROUPS $ 1,279,286 $ 1,279,286 87011


       Section 203.06.  PAY ACCRUED LEAVE LIABILITY87013

Accrued Leave Liability Fund Group87014

806 995-666 Accrued Leave Fund $ 68,846,630 $ 77,950,372 87015
807 995-667 Disability Fund $ 48,057,723 $ 50,955,496 87016
TOTAL ALF Accrued Leave Liability 87017
Fund Group $ 116,904,353 $ 128,905,868 87018

Agency Fund Group87019

808 995-668 State Employee Health Benefit Fund $ 480,879,258 $ 550,922,742 87020
809 995-669 Dependent Care Spending Account $ 2,801,543 $ 2,969,635 87021
810 995-670 Life Insurance Investment Fund $ 1,943,789 $ 2,031,381 87022
811 995-671 Parental Leave Benefit Fund $ 4,040,434 $ 4,282,860 87023
813 995-672 Health Care Spending Account $ 8,000,000 $ 12,000,000 87024
TOTAL AGY Agency Fund Group $ 497,665,024 $ 572,206,618 87025

TOTAL ALL BUDGET FUND GROUPS $ 614,569,377 $ 701,112,486 87026

       ACCRUED LEAVE LIABILITY FUND87027

       The foregoing appropriation item 995-666, Accrued Leave Fund,87028
shall be used to make payments from the Accrued Leave Liability87029
Fund (Fund 806), pursuant to section 125.211 of the Revised Code.87030
If it is determined by the Director of Budget and Management that87031
additional amounts are necessary, the amounts are appropriated.87032

       STATE EMPLOYEE DISABILITY LEAVE BENEFIT FUND87033

       The foregoing appropriation item 995-667, Disability Fund,87034
shall be used to make payments from the State Employee Disability87035
Leave Benefit Fund (Fund 807), pursuant to section 124.83 of the87036
Revised Code. If it is determined by the Director of Budget and87037
Management that additional amounts are necessary, the amounts are87038
appropriated.87039

       STATE EMPLOYEE HEALTH BENEFIT FUND87040

       The foregoing appropriation item 995-668, State Employee87041
Health Benefit Fund, shall be used to make payments from the State87042
Employee Health Benefit Fund (Fund 808), pursuant to section87043
124.87 of the Revised Code. If it is determined by the Director of 87044
Budget and Management that additional amounts are necessary, the 87045
amounts are appropriated.87046

       Effective July 1, 2005, or as soon thereafter as possible, 87047
the Director of Budget and Management may transfer up to $70,000 87048
in cash from the General Revenue Fund to the State Employee Health 87049
Benefit Fund (Fund 808). The amount of the transfer shall not 87050
exceed the amount of cash transferred from the State Employee 87051
Health Benefit Fund to the Health Care Spending Account Fund (Fund 87052
813) during fiscal year 2005.87053

       DEPENDENT CARE SPENDING ACCOUNT87054

       The foregoing appropriation item 995-669, Dependent Care87055
Spending Account, shall be used to make payments from the87056
Dependent Care Spending Account (Fund 809) to employees eligible87057
for dependent care expenses. If it is determined by the Director87058
of Budget and Management that additional amounts are necessary,87059
the amounts are appropriated.87060

       LIFE INSURANCE INVESTMENT FUND87061

       The foregoing appropriation item 995-670, Life Insurance87062
Investment Fund, shall be used to make payments from the Life87063
Insurance Investment Fund (Fund 810) for the costs and expenses of87064
the state's life insurance benefit program pursuant to section87065
125.212 of the Revised Code. If it is determined by the Director87066
of Budget and Management that additional amounts are necessary,87067
the amounts are appropriated.87068

       PARENTAL LEAVE BENEFIT FUND87069

       The foregoing appropriation item 995-671, Parental Leave87070
Benefit Fund, shall be used to make payments from the Parental87071
Leave Benefit Fund (Fund 811) to employees eligible for parental87072
leave benefits pursuant to section 124.137 of the Revised Code. If87073
it is determined by the Director of Budget and Management that87074
additional amounts are necessary, the amounts are appropriated.87075

       HEALTH CARE SPENDING ACCOUNT87076

       There is hereby established in the State Treasury the Health 87077
Care Spending Account Fund (Fund 813). The foregoing appropriation 87078
item 995-672, Health Care Spending Account, shall be used to make 87079
payments from the fund. The fund shall be under the supervision of 87080
the Department of Administrative Services and shall be used to 87081
make payments pursuant to state employees' participation in a 87082
flexible spending account for non-reimbursed health care expenses 87083
and pursuant to Section 125 of the Internal Revenue Code. All 87084
income derived from the investment of the fund shall accrue to the 87085
fund. If it is determined by the Director of Administrative 87086
Services that additional appropriation amounts are necessary, the 87087
Director of Administrative Services may request that the Director 87088
of Budget and Management increase such amounts. Such amounts are 87089
hereby appropriated. 87090

       At the request of the Director of Administrative Services, 87091
the Director of Budget and Management shall transfer up to 87092
$400,000 from the State Employee Health Benefit Fund (Fund 808) to 87093
the Health Care Spending Account Fund during fiscal years 2006 and 87094
2007. This cash shall be transferred as needed to provide adequate 87095
cash flow for the Health Care Spending Account Fund during fiscal 87096
year 2006 and fiscal year 2007. At the end of fiscal years 2006 87097
and 2007, the Director of Budget and Management shall transfer 87098
cash up to the amount previously transferred in the respective 87099
year back from the Health Care Spending Account (Fund 813) to the 87100
State Employee Health Benefit Fund (Fund 808). If funds are not 87101
available in the Health Care Spending Account Fund, the Director 87102
of Administrative Services may request, and the Director of Budget 87103
and Management may transfer, the balance of the funds needed from 87104
the General Revenue Fund. 87105

       Section 203.09.  ADJ ADJUTANT GENERAL87106

General Revenue Fund87107

GRF 745-401 Ohio Military Reserve $ 15,188 $ 15,188 87108
GRF 745-404 Air National Guard $ 1,939,762 $ 1,939,762 87109
GRF 745-407 National Guard Benefits $ 1,400,000 $ 1,400,000 87110
GRF 745-409 Central Administration $ 3,949,590 $ 3,949,590 87111
GRF 745-499 Army National Guard $ 4,086,222 $ 4,086,222 87112
GRF 745-502 Ohio National Guard Unit Fund $ 102,973 $ 102,973 87113
TOTAL GRF General Revenue Fund $ 11,493,735 $ 11,493,735 87114

General Services Fund Group87115

534 745-612 Armory Improvements $ 534,304 $ 534,304 87116
536 745-620 Camp Perry/Buckeye Inn Operations $ 1,094,970 $ 1,094,970 87117
537 745-604 Ohio National Guard Facility Maintenance $ 219,826 $ 219,826 87118
TOTAL GSF General Services Fund Group $ 1,849,100 $ 1,849,100 87119

Federal Special Revenue Fund Group87120

3E8 745-628 Air National Guard Agreement $ 12,174,760 $ 12,174,760 87121
3R8 745-603 Counter Drug Operations $ 25,000 $ 25,000 87122
341 745-615 Air National Guard Base Security $ 2,424,740 $ 2,424,740 87123
342 745-616 Army National Guard Agreement $ 8,686,893 $ 8,686,893 87124
TOTAL FED Federal Special Revenue Fund Group $ 23,311,393 $ 23,311,393 87125

State Special Revenue Fund Group87126

5U8 745-613 Community Match Armories $ 90,000 $ 91,800 87127
528 745-605 Marksmanship Activities $ 126,078 $ 128,600 87128
TOTAL SSR State Special Revenue Fund Group $ 216,078 $ 220,400 87129

TOTAL ALL BUDGET FUND GROUPS $ 36,870,306 $ 36,874,628 87130

       NATIONAL GUARD BENEFITS87131

       The foregoing appropriation item 745-407, National Guard 87132
Benefits, shall be used for purposes of sections 5919.31 and 87133
5919.33 of the Revised Code, and for administrative costs of the 87134
associated programs.87135

       For active duty members of the Ohio National Guard who died 87136
after October 7, 2001, while performing active duty, the death 87137
benefit, pursuant to section 5919.33 of the Revised Code, shall be 87138
paid to the beneficiary or beneficiaries designated on the 87139
member's Servicemembers' Group Life Insurance Policy.87140

       STATE ACTIVE DUTY COSTS87141

       Of the foregoing appropriation item 745-409, Central 87142
Administration, $50,000 in each fiscal year shall be used for the 87143
purpose of paying expenses related to state active duty of members 87144
of the Ohio organized militia, in accordance with a proclamation 87145
of the Governor. Expenses include, but are not limited to, the 87146
cost of equipment, supplies, and services, as determined by the 87147
Adjutant General's Department.87148

       Section 203.12. DAS DEPARTMENT OF ADMINISTRATIVE SERVICES87149

General Revenue Fund87150

GRF 100-403 Public School Employee Benefits $ 1,200,000 $ 1,500,000 87151
GRF 100-404 CRP Procurement Program $ 248,040 $ 268,040 87152
GRF 100-405 Agency Audit Expenses $ 329,000 $ 329,000 87153
GRF 100-406 County & University Human Resources Services $ 60,000 $ 60,000 87154
GRF 100-410 Veterans' Records Conversion $ 69,000 $ 48,600 87155
GRF 100-418 Web Sites and Business Gateway $ 3,275,280 $ 3,275,280 87156
GRF 100-419 IT Security Infrastructure $ 1,636,247 $ 1,636,247 87157
GRF 100-421 OAKS Project Implementation $ 484,000 $ 410,839 87158
GRF 100-433 State of Ohio Computer Center $ 4,991,719 $ 4,991,719 87159
GRF 100-439 Equal Opportunity Certification Programs $ 726,481 $ 728,384 87160
GRF 100-447 OBA - Building Rent Payments $ 115,740,400 $ 116,091,300 87161
GRF 100-448 OBA - Building Operating Payments $ 25,393,250 $ 25,647,183 87162
GRF 100-449 DAS - Building Operating Payments $ 4,160,383 $ 4,170,623 87163
GRF 100-451 Minority Affairs $ 47,000 $ 47,000 87164
GRF 100-734 Major Maintenance - State Bldgs $ 50,000 $ 50,000 87165
GRF 102-321 Construction Compliance $ 1,190,959 $ 1,206,779 87166
GRF 130-321 State Agency Support Services $ 2,693,788 $ 2,668,986 87167
TOTAL GRF General Revenue Fund $ 162,295,547 $ 163,129,980 87168

General Services Fund Group87169

112 100-616 DAS Administration $ 5,221,393 $ 5,299,427 87170
115 100-632 Central Service Agency $ 466,517 $ 485,178 87171
117 100-644 General Services Division - Operating $ 6,834,247 $ 7,245,772 87172
122 100-637 Fleet Management $ 4,025,043 $ 4,032,968 87173
125 100-622 Human Resources Division - Operating $ 18,864,179 $ 19,220,614 87174
127 100-627 Vehicle Liability Insurance $ 3,344,644 $ 3,344,644 87175
128 100-620 Collective Bargaining $ 3,410,952 $ 3,410,952 87176
130 100-606 Risk Management Reserve $ 223,904 $ 223,904 87177
131 100-639 State Architect's Office $ 6,977,274 $ 7,047,427 87178
132 100-631 DAS Building Management $ 10,721,430 $ 11,066,228 87179
133 100-607 IT Services Delivery $ 81,418,432 $ 80,345,564 87180
188 100-649 Equal Opportunity Division - Operating $ 993,378 $ 1,010,256 87181
201 100-653 General Services Resale Merchandise $ 1,553,000 $ 1,553,000 87182
210 100-612 State Printing $ 5,931,421 $ 5,931,421 87183
229 100-630 IT Governance $ 18,531,812 $ 17,601,712 87184
4N6 100-617 Major IT Purchases $ 10,617,166 $ 10,617,166 87185
4P3 100-603 DAS Information Services $ 5,902,099 $ 6,117,004 87186
427 100-602 Investment Recovery $ 5,580,208 $ 5,683,564 87187
5C2 100-605 MARCS Administration $ 9,268,178 $ 9,268,178 87188
5C3 100-608 Skilled Trades $ 1,406,278 $ 1,434,982 87189
5D7 100-621 Workforce Development $ 12,000,000 $ 12,000,000 87190
5L7 100-610 Professional Development $ 2,700,000 $ 2,700,000 87191
5V6 100-619 Employee Educational Development $ 936,129 $ 936,129 87192
TOTAL GSF General Services Fund 87193
Group $ 216,927,684 $ 216,576,090 87194

Federal Special Revenue Fund Group87195

3AJ 100-623 Information Technology Grants $ 82,048 $ 82,048 87196
TOTAL FSR Federal Special Revenue Fund Group $ 82,048 $ 82,048 87197

Agency Fund Group87198

124 100-629 Payroll Deductions $ 2,050,000,000 $ 2,050,000,000 87199
TOTAL AGY Agency Fund Group $ 2,050,000,000 $ 2,050,000,000 87200

Holding Account Redistribution Fund Group87201

R08 100-646 General Services Refunds $ 20,000 $ 20,000 87202
TOTAL 090 Holding Account 87203
Redistribution Fund Group $ 20,000 $ 20,000 87204
TOTAL ALL BUDGET FUND GROUPS $ 2,429,325,279 $ 2,429,808,118 87205


       Section 203.12.01. TRANSFERS OF STATE USE PROGRAM FROM THE 87207
DEPARTMENT OF MENTAL RETARDATION AND DEVELOPMENTAL DISABILITIES87208

       Effective July 1, 2005, or the earliest date thereafter 87209
permitted by law, the State Committee for the Purchase of Products 87210
and Services Provided by Persons with Severe Disabilities created 87211
by sections 4115.31 to 4115.35 of the Revised Code is part of the 87212
Department of Administrative Services. The committee's functions, 87213
assets, and liabilities, including, but not limited to, records 87214
regardless of form or medium, are transferred to the Department of 87215
Administrative Services. The Department of Administrative Services 87216
is thereupon and thereafter successor to, assumes the obligations 87217
of, and otherwise constitutes the continuation of the State 87218
Committee for the Purchase of Products and Services Provided by 87219
Persons with Severe Disabilities. The functions of the Executive 87220
Director of the committee are thereupon and thereafter transferred 87221
to the Department of Administrative Services.87222

       Any business commenced but not completed by the committee on 87223
June 30, 2005, shall be completed by the Department of 87224
Administrative Services, in the same manner, and with the same 87225
effect, as if completed by the committee. No validation, cure, 87226
right, privilege, remedy, obligation, or liability is lost or 87227
impaired by reason of the transfer required under this section and 87228
shall be administered by the Department of Administrative 87229
Services. All of the committee's rules, orders, and determinations 87230
continue in effect as rules, orders, and determinations of the 87231
Department of Administrative Services, until modified or rescinded 87232
by the Department of Administrative Services. If necessary to 87233
ensure the integrity of the Administrative Code numbering system, 87234
the Director of the Legislative Service Commission shall renumber 87235
the committee's rules to reflect their transfer to the Department 87236
of Administrative Services.87237

       Employees of the Department of Mental Retardation and 87238
Developmental Disabilities designated as staff for the committee 87239
shall be transferred to the Department of Administrative Services 87240
as necessary. Subject to lay-off provisions of sections 124.321 to 87241
124.328 of the Revised Code, as well as provisions of the contract 87242
between the state and all bargaining units affected, those 87243
employees so transferred to the Department of Administrative 87244
Services retain their positions and all benefits accruing thereto.87245

       No judicial or administrative action or proceeding to which 87246
the committee is a party that is pending on July 1, 2005, is 87247
affected by the transfer of functions. Such action or proceeding 87248
shall be prosecuted or defended in the name of the Director of the 87249
Department of Administrative Services. On application to the court 87250
or other tribunal, the Director of Administrative Services shall 87251
be substituted for the Director of Mental Retardation and 87252
Developmental Disabilities as a party to such action or 87253
proceeding. 87254

       On and after July 1, 2005, notwithstanding any provision of 87255
law to the contrary, the Director of Budget and Management shall 87256
take the actions with respect to budget changes made necessary by 87257
the transfer, including administrative reorganization, program 87258
transfers, the creation of new funds, and the consolidation of 87259
funds as authorized by this section. The Director may cancel 87260
encumbrances and re-establish encumbrances or parts of 87261
encumbrances as needed in fiscal year 2006 in the appropriate fund 87262
and appropriation item for the same purpose and to the same 87263
vendor. The Director, as determined necessary, may re-establish 87264
such encumbrances in fiscal year 2006 in a different fund or 87265
appropriation item within an agency or between agencies. The 87266
re-established encumbrances are here by appropriated. The Director 87267
shall reduce each year's appropriation balances by the amount of 87268
the encumbrance canceled in their respective funds and 87269
appropriation item. 87270

       Not later than sixty days after the transfer of the committee 87271
to the Department of Administrative Services, the Director of 87272
Mental Retardation and Developmental Disabilities shall certify to 87273
the Director of Budget and Management the amount of any unexpended 87274
balance of General Revenue Fund appropriations made to GRF 87275
appropriation item 322-405, State Use Program. Upon receipt of the 87276
certification, the Director of Budget and Management shall 87277
transfer the appropriations from GRF appropriation item 322-405, 87278
State Use Program, to GRF appropriation item 100-404, CRP 87279
Procurement Program.87280

       Section 203.12.02. PUBLIC SCHOOL EMPLOYEE BENEFITS87281

       The foregoing appropriation item 100-403, Public School 87282
Employee Benefits, shall be used by the Director of Administrative 87283
Services to hire an executive director and an assistant 87284
responsible for providing administrative support to the School 87285
Employee Health Care Board and the public school employee health 87286
insurance program established under section 9.901 of the Revised 87287
Code.87288

       At any time during the biennium, when the Director of 87289
Administrative Services certifies that there is a sufficient 87290
reserve available from premium payments made to the School 87291
Employees Health Care Fund (Fund 815), the Director of Budget and 87292
Management shall transfer $2,700,000 from the School Employees 87293
Health Care Fund to the General Revenue Fund.87294

       Section 203.12.03.  AGENCY AUDIT EXPENSES87295

       The foregoing appropriation item 100-405, Agency Audit87296
Expenses, shall be used for auditing expenses designated in 87297
division (A)(1) of section 117.13 of the Revised Code for those 87298
state agencies audited on a biennial basis.87299

       Section 203.12.06. OHIO BUILDING AUTHORITY87300

       The foregoing appropriation item 100-447, OBA - Building Rent87301
Payments, shall be used to meet all payments at the times they are87302
required to be made during the period from July 1, 2005, to June87303
30, 2007, by the Department of Administrative Services to the Ohio87304
Building Authority pursuant to leases and agreements under Chapter87305
152. of the Revised Code, but limited to the aggregate amount of87306
$231,831,700. These appropriations are the source of funds pledged 87307
for bond service charges on obligations issued pursuant to Chapter 87308
152. of the Revised Code.87309

        The foregoing appropriation item 100-448, OBA - Building 87310
Operating Payments, shall be used to meet all payments at the 87311
times that they are required to be made during the period from87312
July 1, 2005, to June 30, 2007, by the Department of87313
Administrative Services to the Ohio Building Authority pursuant to87314
leases and agreements under Chapter 152. of the Revised Code, but87315
limited to the aggregate amount of $51,040,433.87316

       The payments to the Ohio Building Authority are for the87317
purpose of paying the expenses of agencies that occupy space in87318
the various state facilities. The Department of Administrative87319
Services may enter into leases and agreements with the Ohio87320
Building Authority providing for the payment of these expenses.87321
The Ohio Building Authority shall report to the Department of87322
Administrative Services and the Office of Budget and Management87323
not later than five months after the start of a fiscal year the87324
actual expenses incurred by the Ohio Building Authority in87325
operating the facilities and any balances remaining from payments87326
and rentals received in the prior fiscal year. The Department of87327
Administrative Services shall reduce subsequent payments by the87328
amount of the balance reported to it by the Ohio Building87329
Authority.87330

       Section 203.12.09.  DAS - BUILDING OPERATING PAYMENTS87331

       The foregoing appropriation item 100-449, DAS - Building87332
Operating Payments, shall be used to pay the rent expenses of87333
veterans organizations pursuant to section 123.024 of the Revised87334
Code in fiscal years 2006 and 2007.87335

       The foregoing appropriation item, 100-449, DAS - Building87336
Operating Payments, may be used to provide funding for the cost of87337
property appraisals or building studies that the Department of 87338
Administrative Services may be required to obtain for property 87339
that is being sold by the state or property under consideration to 87340
be renovated or purchased by the state.87341

       Notwithstanding section 125.28 of the Revised Code, the87342
remaining portion of the appropriation may be used to pay the87343
operating expenses of state facilities maintained by the87344
Department of Administrative Services that are not billed to87345
building tenants. These expenses may include, but are not limited87346
to, the costs for vacant space and space undergoing renovation,87347
and the rent expenses of tenants that are relocated due to87348
building renovations. These payments shall be processed by the87349
Department of Administrative Services through intrastate transfer87350
vouchers and placed in the Building Management Fund (Fund 132).87351

       Section 203.12.12. CENTRAL SERVICE AGENCY FUND87352

       The Director of Budget and Management may transfer up to 87353
$363,851 in fiscal year 2006 from the Occupational Licensing and 87354
Regulatory Fund (Fund 4K9) to the Central Service Agency Fund 87355
(Fund 115). The Director of Budget and Management may transfer up 87356
to $45,184 in fiscal year 2006 from the State Medical Board87357
Operating Fund (Fund 5C6) to the Central Service Agency Fund (Fund87358
115). The Director of Budget and Management may transfer up to 87359
$625 in fiscal year 2006 from the Motor Vehicle Collision Repair 87360
Registration Fund (Fund 5H9) to the Central Service Agency Fund 87361
(Fund 115). The appropriation item 100-632, Central Service87362
Agency, shall be used to purchase the necessary equipment,87363
products, and services to maintain an automated application for 87364
the professional licensing boards, and to support their licensing 87365
functions in fiscal year 2006. The amount of the cash transfers is87366
appropriated to appropriation item 100-632, Central Service87367
Agency.87368

       Section 203.12.15.  COLLECTIVE BARGAINING ARBITRATION 87369
EXPENSES87370

       With approval of the Director of Budget and Management, the87371
Department of Administrative Services may seek reimbursement from87372
state agencies for the actual costs and expenses the department87373
incurs in the collective bargaining arbitration process. The87374
reimbursements shall be processed through intrastate transfer87375
vouchers and placed in the Collective Bargaining Fund (Fund 128).87376

       Section 203.12.18.  OFFICE OF INFORMATION TECHNOLOGY87377

       The foregoing appropriation item 100-607, IT Service 87378
Delivery, shall be used by the Office of Information Technology to 87379
carry out its responsibilities under section 125.18 of the Revised 87380
Code. The foregoing appropriation item 100-630, IT Governance, 87381
shall be used by the Office of Information Technology to carry out 87382
its responsibilities under section 125.18 of the Revised Code.87383

        As soon as possible on or after July 1, 2005, the Director of 87384
Administrative Services shall certify to the Director of Budget 87385
and Management the amount of cash up to $5,000,000 to be 87386
transferred from the IT Service Delivery Fund (Fund 133) to the IT 87387
Governance Fund (Fund 229). This amount represents a portion of 87388
the cash balance in the IT Service Delivery Fund attributable to 87389
IT Governance programs. The Director of Budget and Management 87390
shall transfer the certified amount.87391

        After final payments are made from fiscal year 2005 87392
encumbrances in the IT Service Delivery Fund (Fund 133), the 87393
Department of Administrative Services shall reconcile fiscal year 87394
2005 financial activity in the IT Service Delivery Fund and 87395
determine the amount of the fund cash balance due to the IT 87396
Governance Fund (Fund 229). The reconciliation shall be done in 87397
accordance with federal cost accounting regulations. Not later 87398
than June 30, 2006, the Director of Administrative Services shall 87399
make a determination of any additional transfers of cash necessary 87400
for reconciliation purposes. Upon concurrence with this 87401
determination, the Director of Budget and Management may transfer 87402
such cash between the IT Service Delivery Fund and the IT 87403
Governance Fund.87404

       Section 203.12.21. EQUAL OPPORTUNITY PROGRAM87405

       The Department of Administrative Services, with the approval87406
of the Director of Budget and Management, shall establish charges87407
for recovering the costs of administering the activities supported87408
by the State EEO Fund (Fund 188). These charges shall be deposited 87409
to the credit of the State EEO Fund (Fund 188) upon payment made 87410
by state agencies, state-supported or state-assisted institutions 87411
of higher education, and tax-supported agencies, municipal 87412
corporations, and other political subdivisions of the state, for 87413
services rendered.87414

       Section 203.12.24. MERCHANDISE FOR RESALE87415

       The foregoing appropriation item 100-653, General Services87416
Resale Merchandise, shall be used to account for merchandise for87417
resale, which is administered by the General Services Division. 87418
Deposits to the fund may comprise the cost of merchandise for87419
resale and shipping fees.87420

       Section 203.12.27.  DAS INFORMATION SERVICES87421

       There is hereby established in the State Treasury the DAS 87422
Information Services Fund. The foregoing appropriation item 87423
100-603, DAS Information Services, shall be used to pay the costs 87424
of providing information systems and services in the Department of 87425
Administrative Services.87426

        The Department of Administrative Services shall establish 87427
user charges for all information systems and services that are 87428
allowable in the statewide indirect cost allocation plan submitted 87429
annually to the United States Department of Health and Human 87430
Services. These charges shall comply with federal regulations and 87431
shall be deposited to the credit of the DAS Information Services 87432
Fund (Fund 4P3).87433

       Section 203.12.30. INVESTMENT RECOVERY FUND87434

       Notwithstanding division (B) of section 125.14 of the Revised87435
Code, cash balances in the Investment Recovery Fund (Fund 427) may 87436
be used to support the operating expenses of the Federal Surplus 87437
Operating Program created in sections 125.84 to 125.90 of the 87438
Revised Code.87439

       Notwithstanding division (B) of section 125.14 of the Revised87440
Code, cash balances in the Investment Recovery Fund may be used to87441
support the operating expenses of the State Property Inventory and87442
Fixed Assets Management System Program.87443

       Of the foregoing appropriation item 100-602, Investment87444
Recovery, up to $2,147,024 in fiscal year 2006 and up to87445
$2,205,594 in fiscal year 2007 shall be used to pay the operating87446
expenses of the State Surplus Property Program, the Surplus87447
Federal Property Program, and the State Property Inventory and87448
Fixed Assets Management System Program under Chapter 125. of the 87449
Revised Code and this section. If additional appropriations are 87450
necessary for the operations of these programs, the Director of 87451
Administrative Services shall seek increased appropriations from 87452
the Controlling Board under section 131.35 of the Revised Code.87453

       Of the foregoing appropriation item 100-602, Investment87454
Recovery, $3,433,184 in fiscal year 2006 and $3,477,970 in fiscal87455
year 2007 shall be used to transfer proceeds from the sale of87456
surplus property from the Investment Recovery Fund to non-General87457
Revenue Funds under division (A)(2) of section 125.14 of the87458
Revised Code. If it is determined by the Director of87459
Administrative Services that additional appropriations are87460
necessary for the transfer of such sale proceeds, the Director of87461
Administrative Services may request the Director of Budget and87462
Management to increase the amounts. Such amounts are hereby87463
appropriated.87464

       Notwithstanding division (B) of section 125.14 of the Revised 87465
Code, the Director of Budget and Management, at the request of the 87466
Director of Administrative Services, shall transfer up to $500,000 87467
of the amounts held for transfer to the General Revenue Fund from 87468
the Investment Recovery Fund to the State Architect's Fund (Fund 87469
131) to provide operating cash.87470

       Section 203.12.33. MULTI-AGENCY RADIO COMMUNICATIONS SYSTEM87471

       Effective with the implementation of the Multi-Agency Radio87472
Communications System, the Director of Administrative Services87473
shall collect user fees from participants in the system. The87474
Director of Administrative Services, with the advice of the87475
Multi-Agency Radio Communications System Steering Committee and87476
the Director of Budget and Management, shall determine the amount87477
of the fees and the manner by which the fees shall be collected.87478
Such user charges shall comply with the applicable cost principles87479
issued by the federal Office of Management and Budget. All moneys87480
from user charges and fees shall be deposited in the state87481
treasury to the credit of the Multi-Agency Radio Communications87482
System Administration Fund (Fund 5C2), which is hereby established 87483
in the state treasury. All interest income derived from the 87484
investment of the fund shall accrue to the fund.87485

       Section 203.12.36. WORKFORCE DEVELOPMENT FUND87486

       There is hereby established in the state treasury the87487
Workforce Development Fund (Fund 5D7). The foregoing appropriation 87488
item 100-621, Workforce Development, shall be used to make 87489
payments from the fund. The fund shall be under the supervision of 87490
the Department of Administrative Services, which may adopt rules 87491
with regard to administration of the fund. The fund shall be used 87492
to pay the costs of the Workforce Development Program, established 87493
by Article 37 of the contract between the State of Ohio and 87494
OCSEA/AFSCME, Local 11, effective March 1, 2003, and as modified 87495
by any successor labor contract between the State of Ohio and 87496
OCSEA/AFSCME. The program shall be administered in accordance with 87497
the contract. Revenues shall accrue to the fund as specified in 87498
the contract. The fund may be used to pay direct and indirect 87499
costs of the program that are attributable to staff, consultants, 87500
and service providers. All income derived from the investment of 87501
the fund shall accrue to the fund.87502

       If it is determined by the Director of Administrative87503
Services that additional appropriation amounts are necessary, the87504
Director of Administrative Services may request that the Director87505
of Budget and Management increase such amounts. Such amounts are 87506
hereby appropriated.87507

       Section 203.12.39. PROFESSIONAL DEVELOPMENT FUND87508

       The foregoing appropriation item 100-610, Professional87509
Development, shall be used to make payments from the Professional87510
Development Fund (Fund 5L7) under section 124.182 of the Revised 87511
Code.87512

       Section  203.12.42.  EMPLOYEE EDUCATIONAL DEVELOPMENT87513

       There is hereby established in the state treasury the 87514
Employee Educational Development Fund (Fund 5V6). The foregoing 87515
appropriation item 100-619, Employee Educational Development, 87516
shall be used to make payments from the fund. The fund shall be 87517
used to pay the costs of the administration of educational 87518
programs per existing collective bargaining agreements with 87519
District 1199, the Health Care and Social Service Union; State 87520
Council of Professional Educators; Ohio Education Association and 87521
National Education Association; the Fraternal Order of Police Ohio 87522
Labor Council, Unit 2; and the Ohio State Troopers Association, 87523
Units 1 and 15. The fund shall be under the supervision of the 87524
Department of Administrative Services, which may adopt rules with 87525
regard to administration of the fund. The fund shall be 87526
administered in accordance with the applicable sections of the 87527
collective bargaining agreements between the State and the 87528
aforementioned unions. The Department of Administrative Services, 87529
with the approval of the Director of Budget and Management, shall 87530
establish charges for recovering the costs of administering the 87531
educational programs. Receipts for these charges shall be 87532
deposited into the Employee Educational Development Fund. All 87533
income derived from the investment of the funds shall accrue to 87534
the fund.87535

       If it is determined by the Director of Administrative 87536
Services that additional appropriation amounts are necessary, the 87537
Director of Administrative Services may request that the Director 87538
of Budget and Management increase such amounts. Such amounts are 87539
hereby appropriated with the approval of the Director of Budget 87540
and Management.87541

       Section 203.12.45.  MAJOR IT PURCHASES87542

       The Director of Administrative Services shall compute the87543
amount of revenue attributable to the amortization of all87544
equipment purchases and capitalized systems from appropriation 87545
item 100-607, IT Service Delivery; appropriation item 100-617, 87546
Major IT Purchases; and appropriation item CAP-837, Major IT 87547
Purchases, which is recovered by the Department of Administrative87548
Services as part of the rates charged by the IT Service Delivery 87549
Fund (Fund 133) created in section 125.15 of the Revised Code. The 87550
Director of Budget and Management may transfer cash in an amount 87551
not to exceed the amount of amortization computed from the IT 87552
Service Delivery Fund (Fund 133) to the Major IT Purchases Fund 87553
(Fund 4N6).87554

       Section 203.12.48. INFORMATION TECHNOLOGY ASSESSMENT87555

       The Director of Administrative Services, with the approval of87556
the Director of Budget and Management, may establish an87557
information technology assessment for the purpose of recovering87558
the cost of selected infrastructure and statewide programs. Such87559
assessment shall comply with applicable cost principles issued by87560
the federal Office of Management and Budget. The information 87561
technology assessment shall be charged to all organized bodies, 87562
offices, or agencies established by the laws of the state for the 87563
exercise of any function of state government except for the 87564
General Assembly, any legislative agency, the Supreme Court, the 87565
other courts of record in Ohio, or any judicial agency, the 87566
Adjutant General, the Bureau of Workers' Compensation, and 87567
institutions administered by a board of trustees. Any state-entity 87568
exempted by this section may utilize the infrastructure or 87569
statewide program by participating in the information technology 87570
assessment. All charges for the information technology assessment 87571
shall be deposited to the credit of the IT Service Delivery Fund 87572
(Fund 133) created in section 125.15 of the Revised Code.87573

       Section 203.12.51. UNEMPLOYMENT COMPENSATION FUND87574

       Within thirty days after the effective date of this section, 87575
or as soon as possible thereafter, the Director of Administrative 87576
Services shall certify the remaining cash in the Unemployment 87577
Compensation Fund (Fund 113) to the Director of Budget and 87578
Management who shall transfer that amount to the General Revenue 87579
Fund and abolish the Unemployment Compensation Fund (Fund 113).87580

       Section 203.12.54. PAYROLL WITHHOLDING FUND87581

       The foregoing appropriation item 100-629, Payroll Deductions,87582
shall be used to make payments from the Payroll Withholding Fund87583
(Fund 124). If it is determined by the Director of Budget and87584
Management that additional appropriation amounts are necessary,87585
such amounts are hereby appropriated.87586

       Section 203.12.57. GENERAL SERVICES REFUNDS87587

       The foregoing appropriation item 100-646, General Services87588
Refunds, shall be used to hold bid guarantee and building plans87589
and specifications deposits until they are refunded. The Director87590
of Administrative Services may request that the Director of Budget87591
and Management transfer cash received for the costs of providing87592
the building plans and specifications to contractors from the87593
General Services Refunds Fund to the State Architect's Office Fund 87594
(Fund 131). Prior to the transfer of cash, the Director of87595
Administrative Services shall certify that such amounts are in87596
excess of amounts required for refunding deposits and are directly87597
related to costs of producing building plans and specifications.87598
If it is determined that additional appropriations are necessary,87599
such amounts are hereby appropriated.87600

       Section 203.12.60.  MULTI-AGENCY RADIO COMMUNICATION SYSTEM 87601
DEBT SERVICE PAYMENTS87602

       The Director of Administrative Services, in consultation with87603
the Multi-Agency Radio Communication System (MARCS) Steering87604
Committee and the Director of Budget and Management, shall87605
determine the share of debt service payments attributable to87606
spending for MARCS components that are not specific to any one87607
agency and that shall be charged to agencies supported by the87608
motor fuel tax. Such share of debt service payments shall be87609
calculated for MARCS capital disbursements made beginning July 1,87610
1997. Within thirty days of any payment made from appropriation87611
item 100-447, OBA - Building Rent Payments, the Director of87612
Administrative Services shall certify to the Director of Budget87613
and Management the amount of this share. The Director of Budget87614
and Management shall transfer such amounts to the General Revenue87615
Fund from the State Highway Safety Fund (Fund 036) established in87616
section 4501.06 of the Revised Code.87617

       The Director of Administrative Services shall consider87618
renting or leasing existing tower sites at reasonable or current87619
market rates, so long as these existing sites are equipped with87620
the technical capabilities to support the MARCS project.87621

       Section 203.12.63. DIRECTOR'S DECLARATION OF PUBLIC EXIGENCY87622

       Whenever the Director of Administrative Services declares a87623
"public exigency," as provided in division (C) of section 123.1587624
of the Revised Code, the Director shall also notify the members of87625
the Controlling Board.87626

       Section 203.12.66. GENERAL SERVICE CHARGES87627

       The Department of Administrative Services, with the approval87628
of the Director of Budget and Management, shall establish charges87629
for recovering the costs of administering the programs in the87630
General Services Fund (Fund 117) and the State Printing Fund (Fund87631
210).87632

       Section 203.15.  AAM COMMISSION ON AFRICAN AMERICAN MALES87633

General Revenue Fund87634

GRF 036-100 Personal Services $ 220,091 $ 220,091 87635
GRF 036-200 Maintenance $ 39,909 $ 39,909 87636
GRF 036-300 Equipment $ 1,000 $ 1,000 87637
GRF 036-501 CAAM Awards and Scholarships $ 1,000 $ 1,000 87638
GRF 036-502 Community Projects $ 20,000 $ 20,000 87639
TOTAL GRF General Revenue Fund $ 282,000 $ 282,000 87640

State Special Revenue Fund Group87641

4H3 036-601 Commission on African American Males - Gifts/Grants $ 10,000 $ 10,000 87642
TOTAL SSR State Special Revenue Fund Group $ 10,000 $ 10,000 87643
TOTAL ALL BUDGET FUND GROUPS $ 292,000 $ 292,000 87644

       COMMISSION ON AFRICAN AMERICAN MALES PROGRESS REVIEW87645

       Annually, not later than the thirty-first day of December, 87646
the Commission on African American Males shall internally prepare 87647
and submit to the chairperson and ranking minority member of the 87648
Human Services Subcommittee of the Finance and Appropriations 87649
Committee of the House of Representatives a report that 87650
demonstrates the progress that has been made toward meeting the 87651
Commission's mission statement.87652

       Section 203.18. JCR JOINT COMMITTEE ON AGENCY RULE REVIEW87653

General Revenue Fund87654

GRF 029-321 Operating Expenses $ 379,769 $ 387,364 87655
TOTAL GRF General Revenue Fund $ 379,769 $ 387,364 87656
TOTAL ALL BUDGET FUND GROUPS $ 379,769 $ 387,364 87657

       OPERATING87658

       The Chief Administrative Officer of the House of87659
Representatives and the Clerk of the Senate shall determine, by87660
mutual agreement, which of them shall act as fiscal agent for the87661
Joint Committee on Agency Rule Review.87662

       OPERATING EXPENSES87663

       The unencumbered balance of appropriation item 029-321, 87664
Operating Expenses, at the end of fiscal year 2006 shall be 87665
transferred to fiscal year 2007 for use under the same 87666
appropriation item.87667

       Section 203.21.  AGE DEPARTMENT OF AGING87668

General Revenue Fund87669

GRF 490-321 Operating Expenses $ 2,579,867 $ 2,308,867 87670
GRF 490-403 PASSPORT $ 112,045,715 $ 121,009,372 87671
GRF 490-405 Golden Buckeye Card $ 467,614 $ 467,614 87672
GRF 490-406 Senior Olympics $ 15,638 $ 15,638 87673
GRF 490-409 Ohio Community Service Council Operations $ 203,647 $ 193,465 87674
GRF 490-410 Long-Term Care Ombudsman $ 689,437 $ 689,437 87675
GRF 490-411 Senior Community Services $ 10,630,988 $ 10,630,988 87676
GRF 490-412 Residential State Supplement $ 9,156,771 $ 9,156,771 87677
GRF 490-414 Alzheimers Respite $ 4,085,888 $ 4,085,888 87678
GRF 490-416 JCFS Elderly Transportation $ 100,000 $ 100,000 87679
GRF 490-421 PACE $ 11,354,145 $ 10,214,809 87680
GRF 490-422 Assisted Living Waiver $ 0 $ 359,919 87681
GRF 490-506 National Senior Service Corps $ 352,943 $ 352,943 87682
TOTAL GRF General Revenue Fund $ 151,682,653 $ 159,585,711 87683

General Services Fund Group87684

480 490-606 Senior Community Outreach and Education $ 372,677 $ 372,677 87685
TOTAL GSF General Services Fund 87686
Group $ 372,677 $ 372,677 87687

Federal Special Revenue Fund Group87688

3C4 490-607 PASSPORT $ 198,683,143 $ 218,196,387 87689
3C4 490-621 PACE-Federal $ 10,854,083 $ 14,586,135 87690
3C4 490-622 Assisted Living-Federal $ 0 $ 5,687,374 87691
3M3 490-611 Federal Aging Nutrition $ 27,622,693 $ 28,037,034 87692
3M4 490-612 Federal Independence Services $ 27,907,287 $ 28,325,896 87693
3R7 490-617 Ohio Community Service Council Programs $ 9,170,000 $ 9,170,000 87694
322 490-618 Federal Aging Grants $ 14,834,354 $ 15,014,494 87695
TOTAL FED Federal Special Revenue 87696
Fund Group $ 289,071,560 $ 319,017,320 87697

State Special Revenue Fund Group87698

4C4 490-609 Regional Long-Term Care Ombudsman Program $ 910,000 $ 935,000 87699
4J4 490-610 PASSPORT/Residential State Supplement $ 33,263,984 $ 33,263,984 87700
4U9 490-602 PASSPORT Fund $ 4,424,969 $ 4,424,969 87701
5BA 490-620 Ombudsman Support $ 615,000 $ 0 87702
5CE 490-624 Special Projects $ 350,000 $ 0 87703
5K9 490-613 Long Term Care Consumers Guide $ 298,400 $ 820,400 87704
5W1 490-616 Resident Services Coordinator Program $ 262,500 $ 262,500 87705
624 490-604 OCSC Community Support $ 2,500 $ 2,500 87706
TOTAL SSR State Special Revenue 87707
Fund Group $ 40,127,353 $ 39,709,353 87708
TOTAL ALL BUDGET FUND GROUPS $ 481,254,243 $ 518,685,061 87709


       Section 203.21.03. PRE-ADMISSION REVIEW FOR NURSING FACILITY87711
ADMISSION87712

       Pursuant to an interagency agreement, the Department of Job 87713
and Family Services shall designate the Department of Aging to 87714
perform assessments under sections 173.42 and 5111.204 of the 87715
Revised Code. Of the foregoing appropriation item 490-403,87716
PASSPORT, the Department of Aging may use not more than $2,586,648 87717
in fiscal year 2006 and $2,651,315 in fiscal year 2007 to perform87718
the assessments for persons not eligible for Medicaid under the 87719
department's interagency agreement with the Department of Job and 87720
Family Services and to assist individuals in planning for their 87721
long-term health care needs.87722

       Section 203.21.06.  PASSPORT87723

       Of the foregoing appropriation item 490-607, PASSPORT, Fund 87724
3C4, up to $200,000 in fiscal year 2006 shall be used for an 87725
evaluation of the PASSPORT Program.87726

       (A) There is hereby created the PASSPORT Evaluation Panel to 87727
oversee the performance of an evaluation of the PASSPORT Home and 87728
Community Based Waiver Program conducted by an independent 87729
contractor. The Panel shall be composed of the following members:87730

        (1) The Director of Aging or the Director's designee;87731

        (2) The Director of Job and Family Services or the Director's 87732
designee;87733

        (3) A representative of the Ohio Association of Area Agencies 87734
on Aging, appointed by the Association;87735

       (4) A representative of PASSPORT providers, appointed by the 87736
Director of Aging;87737

        (5) A representative of the Ohio Academy of Nursing Homes, 87738
appointed by the Academy;87739

        (6) A representative of the Ohio Health Care Association, 87740
appointed by the Association;87741

        (7) A representative of the Association for Ohio 87742
Philanthropic Homes and Housing for the Aging, appointed by the 87743
Association; 87744

       (8) A representative of the American Association of Retired 87745
Persons, appointed by the Association; 87746

       (9) A representative of Scripps Gerontology Center at Miami 87747
University, appointed by the Center.87748

        Panel members shall serve without compensation. The 87749
Department of Aging shall provide assistance to the PASSPORT 87750
Evaluation Panel, including support services and meeting space. 87751
The Panel shall convene not later than sixty days after the 87752
effective date of this section.87753

        (B) The Panel shall do all of the following:87754

        (1) Establish criteria to be used in selecting an independent 87755
contractor to evaluate the PASSPORT Program. The criteria shall 87756
specify that the independent contractor must not be affiliated 87757
with any state agency.87758

        (2) In accordance with the request for proposal process 87759
administered by the Department of Administrative Services, accept 87760
and evaluate bids from potential contractors;87761

        (3) Select to evaluate the PASSPORT Program an independent 87762
contractor that meets the criteria established by the Panel and 87763
the Department.87764

        (C) The independent contractor selected by the PASSPORT 87765
Evaluation Panel shall, in conducting the evaluation of the 87766
PASSPORT Program, do all of the following:87767

        (1) Examine the implementation by the existing PASSPORT 87768
system of the long-term care recommendations of the Ohio 87769
Commission to Reform Medicaid and coordinate the work of the 87770
PASSPORT evaluation with the Medicaid Transition Council and the 87771
Medicaid Care Management Work Group;87772

       (2) Evaluate the cost-effectiveness of services provided 87773
under the program;87774

        (3) Evaluate the population served and the appropriateness of 87775
the program for that population;87776

        (4) Evaluate program outcomes to determine the program's 87777
effectiveness in preventing nursing home admissions;87778

        (5) Evaluate the effectiveness of area agencies on aging in 87779
efficiently linking older Ohioans to the appropriate level of 87780
assistance based on the screening and assessment activities of the 87781
PASSPORT system; 87782

       (6) Examine the cost effectiveness of increasing the care 87783
management responsibilities of area agencies on aging to include 87784
the management of the Medicaid state plan services; 87785

       (7) Evaluate the effectiveness of client-to-case management 87786
ratios of area agencies on aging to assess whether clients receive 87787
quality outcomes in a cost-effective manner; 87788

       (8) Evaluate and assess the effectiveness of the PASSPORT 87789
program's authority to provide interventions that increase 87790
enrollment and decrease disenrollment and increase flexibility to 87791
provide quality, timely service to clients with special service 87792
needs; 87793

       (9) Evaluate the PASSPORT program's rate structure and 87794
contracting process to determine fair market rates and quality 87795
incentive indicators; 87796

       (10) Evaluate the effectiveness of the PASSPORT program's 87797
current provider procurement process; 87798

       (11) Determine elements of the program that may be vulnerable 87799
to fraud; 87800

       (12) Any additional action requested by the PASSPORT 87801
Evaluation Panel.87802

        The independent contractor shall issue to the Panel quarterly 87803
reports and, by not later than May 15, 2007, a final report, of 87804
its findings. By not later than June 30, 2007, the PASSPORT 87805
Evaluation Panel shall approve a final report.87806

       Appropriation item 490-403, PASSPORT, and the amounts set87807
aside for the PASSPORT Waiver Program in appropriation item87808
490-610, PASSPORT/Residential State Supplement, may be used to87809
assess clients regardless of Medicaid eligibility.87810

       The Director of Aging shall adopt rules under section 111.1587811
of the Revised Code governing the nonwaiver funded PASSPORT87812
program, including client eligibility.87813

       The Department of Aging shall administer the Medicaid87814
waiver-funded PASSPORT Home Care Program as delegated by the87815
Department of Job and Family Services in an interagency agreement. 87816
The foregoing appropriation item 490-403, PASSPORT, and the 87817
amounts set aside for the PASSPORT Waiver Program in appropriation 87818
item 490-610, PASSPORT/Residential State Supplement, shall be used 87819
to provide the required state match for federal Medicaid funds87820
supporting the Medicaid Waiver-funded PASSPORT Home Care Program.87821
Appropriation item 490-403, PASSPORT, and the amounts set aside87822
for the PASSPORT Waiver Program in appropriation item 490-610,87823
PASSPORT/Residential State Supplement, may also be used to support87824
the Department of Aging's administrative costs associated with87825
operating the PASSPORT program.87826

       The foregoing appropriation item 490-607, PASSPORT, shall be87827
used to provide the federal matching share for all PASSPORT87828
program costs determined by the Department of Job and Family87829
Services to be eligible for Medicaid reimbursement.87830

       OHIO COMMUNITY SERVICE COUNCIL87831

       The foregoing appropriation items 490-409, Ohio Community87832
Service Council Operations, and 490-617, Ohio Community Service 87833
Council Programs, shall be used in accordance with section 121.40 87834
of the Revised Code.87835

       TRANSFER OF RESIDENT PROTECTION FUNDS87836

       The Director of Budget and Management shall transfer, by 87837
intrastate transfer voucher, in fiscal year 2006, $615,000 from 87838
Fund 4E3, Resident Protection Fund, in the Department of Job and 87839
Family Services, to Fund 5BA in the Department of Aging, to be 87840
used for program management for the Office of the State Long-Term 87841
Care Ombudsman created by the Department of Aging under division 87842
(M) of section 173.01 of the Revised Code.87843

       The Director of Budget and Management shall transfer, by 87844
intrastate transfer voucher, in fiscal year 2006, $350,000 from 87845
Fund 4E3, Resident Protection Fund, in the Department of Job and 87846
Family Services to Fund 5CE in the Department of Aging to be used 87847
by the Alzheimer's Association to develop a pilot training program 87848
on person-centered dementia care for long term care staff who 87849
interact with people with dementia.87850

       SENIOR COMMUNITY SERVICES87851

       Appropriation item 490-411, Senior Community Services, shall 87852
be used for services designated by the Department of Aging,87853
including, but not limited to, home-delivered and congregate 87854
meals, transportation services, personal care services, respite 87855
services, adult day services, home repair, care coordination, and 87856
decision support systems. Service priority shall be given to low 87857
income, frail, and cognitively impaired persons 60 years of age 87858
and over. The department shall promote cost sharing by service 87859
recipients for those services funded with block grant funds, 87860
including, when possible, sliding-fee scale payment systems based 87861
on the income of service recipients.87862

       ALZHEIMERS RESPITE87863

       The foregoing appropriation item 490-414, Alzheimers Respite,87864
shall be used to fund only Alzheimer's disease services under87865
section 173.04 of the Revised Code.87866

       JCFS ELDERLY TRANSPORTATION87867

       The foregoing appropriation item 490-416, JCFS Elderly 87868
Transportation, shall be used for noncapital expenses related to87869
transportation services for the elderly that provide access to87870
such things as healthcare services, congregate meals,87871
socialization programs, and grocery shopping. The funds shall pass 87872
through and shall be administered by the Area Agencies on Aging.87873

       Agencies receiving funding from appropriation item 490-416,87874
JCFS Elderly Transportation, shall coordinate services with other87875
local service agencies. The appropriation shall be allocated to 87876
the following agencies:87877

        (A) $30,000 in both fiscal years to Cincinnati Jewish 87878
Vocational Services;87879

        (B) $20,000 in both fiscal years to Wexner Heritage Village;87880

        (C) $20,000 in both fiscal years to Yassenoff Jewish 87881
Community Center;87882

        (D) $30,000 in both fiscal years to Cleveland Jewish 87883
Community Center.87884

       RESIDENTIAL STATE SUPPLEMENT87885

       Under the Residential State Supplement Program, the amount87886
used to determine whether a resident is eligible for payment and87887
for determining the amount per month the eligible resident will87888
receive shall be as follows:87889

       (A) $900 for a residential care facility, as defined in87890
section 3721.01 of the Revised Code;87891

       (B) $900 for an adult group home, as defined in Chapter 3722. 87892
of the Revised Code;87893

       (C) $800 for an adult foster home, as defined in Chapter 173.87894
of the Revised Code;87895

       (D) $800 for an adult family home, as defined in Chapter87896
3722. of the Revised Code;87897

       (E) $800 for an adult community alternative home, as defined87898
in Chapter 3724. of the Revised Code;87899

       (F) $800 for an adult residential facility, as defined in87900
Chapter 5119. of the Revised Code;87901

       (G) $600 for adult community mental health housing services,87902
as defined in division (B)(5) of section 173.35 of the Revised87903
Code.87904

       The Departments of Aging and Job and Family Services shall87905
reflect these amounts in any applicable rules the departments 87906
adopt under section 173.35 of the Revised Code.87907

       LONG-TERM CARE OMBUDSMAN87908

       The foregoing appropriation item 490-410, Long-Term Care87909
Ombudsman, shall be used for a program to fund ombudsman program87910
activities in nursing homes, adult care facilities, boarding87911
homes, and home and community care services.87912

       TRANSFER OF RESIDENTIAL STATE SUPPLEMENT APPROPRIATIONS87913

       The Department of Aging may transfer cash by intrastate87914
transfer vouchers from the foregoing appropriation items 490-412,87915
Residential State Supplement, and 490-610, PASSPORT/Residential87916
State Supplement, to the Department of Job and Family Services'87917
Fund 4J5, Home and Community-Based Services for the Aged Fund. The 87918
funds shall be used to make benefit payments to Residential State87919
Supplement recipients.87920

       ALLOCATION OF PACE SLOTS87921

       For fiscal years 2006 and 2007, of the 880 slots approved by 87922
the Centers for Medicare and Medicaid Services for the PACE 87923
Program, the Department of Aging shall allocate, to the extent 87924
funding is available, 500 slots to Tri-Health Senior Link located 87925
in Cincinnati and 380 slots to Concordia Care located in 87926
Cleveland. In fiscal year 2007, the Department of Aging shall 87927
allocate, to the extent funding is available, up to 60 additional 87928
slots from Concordia Care to Tri-Health Senior Link if the 87929
Department projects Concordia Care will not fill all of its 87930
allotted slots.87931

       TRANSFER OF APPROPRIATIONS - FEDERAL AGING NUTRITION, FEDERAL87932
INDEPENDENCE SERVICES, AND FEDERAL AGING GRANTS87933

       Upon written request of the Director of Aging, the Director87934
of Budget and Management may transfer appropriation authority87935
among appropriation items 490-611, Federal Aging Nutrition,87936
490-612, Federal Independence Services, and 490-618, Federal Aging 87937
Grants, in amounts not to exceed 30 per cent of the appropriation 87938
from which the transfer is made. The Department of Aging shall87939
report a transfer to the Controlling Board at the next regularly 87940
scheduled meeting of the board.87941

       REGIONAL LONG-TERM CARE OMBUDSMAN PROGRAM87942

       The foregoing appropriation item 490-609, Regional Long-Term87943
Care Ombudsman Program, shall be used solely to pay the costs of87944
operating the regional long-term care ombudsman programs.87945

       PASSPORT/RESIDENTIAL STATE SUPPLEMENT87946

       Of the foregoing appropriation item 490-610,87947
PASSPORT/Residential State Supplement, up to $2,835,000 each87948
fiscal year may be used to fund the Residential State Supplement87949
Program. The remaining available funds shall be used to fund the87950
PASSPORT program.87951

       TRANSITION PLAN FOR RESIDENTIAL STATE SUPPLEMENT87952

        Subject to approval by the Social Security Administration, of 87953
the foregoing appropriation items 490-412, Residential State 87954
Supplement, and 490-610, PASSPORT/Residential State Supplement, 87955
Fund 4J4, in fiscal year 2007 the Department of Aging shall 87956
transfer to the Ohio Department of Mental Health sufficient funds 87957
to make benefit payments for all Residential State Supplement 87958
recipients who are less than 60 years of age diagnosed with mental 87959
illness, mental retardation, or a developmental disability and are 87960
enrolled in the program on June 30, 2006. Upon the request of the 87961
Directors of Aging and of Mental Health, the Director of Budget 87962
and Management may transfer appropriations from GRF appropriation 87963
item 490-412, Residential State Supplement, in the Department of 87964
Aging to GRF appropriation item 335-505, Local Mental Health 87965
Systems of Care, in the Department of Mental Health. In addition, 87966
upon the request of the Directors of Aging and Mental Health, the 87967
Director of Budget and Management may transfer cash from Fund 4J4, 87968
PASSPORT Fund, into the General Revenue Fund and increase the 87969
appropriation in Department of Mental Health GRF appropriation 87970
item 335-505, Local Mental Health Systems of Care, by an equal 87971
amount.87972

        The departments of Aging and Mental Health shall jointly 87973
petition the Social Security Administration to approve changes to 87974
the Residential State Supplement program. Changes proposed by the 87975
two departments shall ensure that Residential State Supplement 87976
program recipients on June 30, 2006, continue to receive benefit 87977
payments as long as they remain in the program. Changes proposed 87978
by the departments of Aging and Mental Health may include 87979
provisions that improve local accountability to county boards of 87980
mental health, maximize available funding, and improve the quality 87981
of residential settings approved for recipients. If the Social 87982
Security Administration does not approve these changes, the 87983
Department of Aging shall continue to be responsible for the 87984
Residential State Supplement Program.87985

       Section 203.21.09. AGING AND DISABILITY RESOURCE CENTERS87986

       The Department of Aging shall apply for the 2005 Aging and 87987
Disability Resource Center Grant Initiative of the Administration 87988
on Aging and the Centers for Medicare and Medicaid Services. If 87989
the application is accepted, the Department shall create an Aging 87990
and Disability Resource Center beginning in fiscal year 2006. The 87991
Department of Job and Family Services shall endorse the 87992
Department's application to the extent required by the invitation 87993
to apply.87994

       Section 203.24. AGR DEPARTMENT OF AGRICULTURE87995

General Revenue Fund87996

GRF 700-321 Operating Expenses $ 2,605,330 $ 2,605,330 87997
GRF 700-401 Animal Disease Control $ 3,574,506 $ 3,574,506 87998
GRF 700-403 Dairy Division $ 1,304,504 $ 1,304,504 87999
GRF 700-404 Ohio Proud $ 185,395 $ 185,395 88000
GRF 700-405 Animal Damage Control $ 60,000 $ 60,000 88001
GRF 700-406 Consumer Analytical Lab $ 819,907 $ 819,907 88002
GRF 700-407 Food Safety $ 939,099 $ 939,099 88003
GRF 700-409 Farmland Preservation $ 241,573 $ 241,573 88004
GRF 700-410 Plant Industry $ 391,216 $ 50,000 88005
GRF 700-411 International Trade and Market Development $ 617,524 $ 517,524 88006
GRF 700-412 Weights and Measures $ 1,100,000 $ 1,300,000 88007
GRF 700-413 Gypsy Moth Prevention $ 200,000 $ 200,000 88008
GRF 700-415 Poultry Inspection $ 325,000 $ 325,000 88009
GRF 700-418 Livestock Regulation Program $ 1,428,496 $ 1,428,496 88010
GRF 700-424 Livestock Testing and Inspections $ 115,946 $ 115,946 88011
GRF 700-499 Meat Inspection Program - State Share $ 4,696,889 $ 4,696,889 88012
GRF 700-501 County Agricultural Societies $ 358,226 $ 358,226 88013
TOTAL GRF General Revenue Fund $ 18,963,611 $ 18,722,395 88014

Federal Special Revenue Fund Group88015

3J4 700-607 Indirect Cost $ 1,500,027 $ 1,500,027 88016
3R2 700-614 Federal Plant Industry $ 4,800,000 $ 4,800,000 88017
326 700-618 Meat Inspection Program - Federal Share $ 5,201,291 $ 5,201,291 88018
336 700-617 Ohio Farm Loan Revolving Fund $ 43,793 $ 44,679 88019
382 700-601 Cooperative Contracts $ 4,300,000 $ 4,300,000 88020
TOTAL FED Federal Special Revenue 88021
Fund Group $ 15,845,111 $ 15,845,997 88022

State Special Revenue Fund Group88023

4C9 700-605 Feed, Fertilizer, Seed, and Lime Inspection $ 1,922,857 $ 1,891,395 88024
4D2 700-609 Auction Education $ 23,885 $ 24,601 88025
4E4 700-606 Utility Radiological Safety $ 73,059 $ 73,059 88026
4P7 700-610 Food Safety Inspection $ 816,096 $ 858,096 88027
4R0 700-636 Ohio Proud Marketing $ 38,300 $ 38,300 88028
4R2 700-637 Dairy Industry Inspection $ 1,541,466 $ 1,621,460 88029
4T6 700-611 Poultry and Meat Inspection $ 47,294 $ 47,294 88030
4T7 700-613 International Trade and Market Development $ 52,000 $ 54,000 88031
494 700-612 Agricultural Commodity Marketing Program $ 170,220 $ 170,220 88032
496 700-626 Ohio Grape Industries $ 1,071,099 $ 1,071,054 88033
497 700-627 Commodity Handlers Regulatory Program $ 515,820 $ 529,978 88034
5B8 700-629 Auctioneers $ 365,390 $ 365,390 88035
5H2 700-608 Metrology Lab and Scale Certification $ 351,526 $ 362,526 88036
5L8 700-604 Livestock Management Program $ 30,000 $ 30,000 88037
578 700-620 Ride Inspection Fees $ 1,105,436 $ 1,115,436 88038
652 700-634 Animal Health and Food Safety $ 1,876,624 $ 1,831,232 88039
669 700-635 Pesticide Program $ 2,993,232 $ 3,354,448 88040
TOTAL SSR State Special Revenue 88041
Fund Group $ 12,994,304 $ 13,438,489 88042

Clean Ohio Fund Group88043

057 700-632 Clean Ohio Agricultural Easement $ 149,000 $ 149,000 88044
TOTAL CLR Clean Ohio Fund Group $ 149,000 $ 149,000 88045

TOTAL ALL BUDGET FUND GROUPS $ 47,952,026 $ 48,155,881 88046

       OHIO - ISRAEL AGRICULTURAL INITIATIVE88047

       Of the foregoing General Revenue Fund appropriation item 88048
700-411, International Trade and Market Development, $100,000 88049
shall be used in fiscal year 2006 for the Ohio - Israel 88050
Agricultural Initiative.88051

       FAMILY FARM LOAN PROGRAM88052

       Notwithstanding Chapter 166. of the Revised Code, up to 88053
$1,000,000 in each fiscal year shall be transferred from moneys in 88054
the Facilities Establishment Fund (Fund 037) to the Family Farm 88055
Loan Fund (Fund 5H1) in the Department of Development. These 88056
moneys shall be used for loan guarantees. The transfer is subject 88057
to Controlling Board approval.88058

       Financial assistance from the Family Farm Loan Fund (Fund 88059
5H1) shall be repaid to Fund 5H1. This fund is established in 88060
accordance with sections 166.031, 901.80, 901.81, 901.82, and 88061
901.83 of the Revised Code.88062

       When the Family Farm Loan Fund (Fund 5H1) ceases to exist, 88063
all outstanding balances, all loan repayments, and any other 88064
outstanding obligations shall revert to the Facilities 88065
Establishment Fund (Fund 037).88066

       Section 203.24.03. FERTILIZER-RELATED LICENSURE AND 88067
REGISTRATION88068

       To facilitate implementation of the new schedule for 88069
fertilizer-related licensure, registration, and reporting 88070
established under sections 905.32, 905.33, 905.331, and 905.36 of 88071
the Revised Code, as amended by this act, all of the following 88072
apply:88073

        (A) With regard to licenses for which applications for the 88074
license period beginning July 1, 2005, have been submitted under 88075
sections 905.32 and 905.331 of the Revised Code as those sections 88076
existed prior to their amendment by this act, a license shall be 88077
issued for a period beginning on July 1, 2005, and ending on 88078
November 30, 2005, and shall expire on November 30, 2005.88079

        (B) With regard to registrations of a specialty fertilizer 88080
for which applications for the registration period beginning July 88081
1, 2005, have been submitted under section 905.33 of the Revised 88082
Code as that section existed prior to its amendment by this act, a 88083
registration shall be issued for the period beginning on July 1, 88084
2005, and ending on November 30, 2005, and shall expire on 88085
November 30, 2005.88086

        (C) A person who is required to submit a tonnage report 88087
within thirty days of June 30, 2005, under section 905.36 of the 88088
Revised Code as that section existed prior to its amendments by 88089
this act shall submit the report by that date. However, the person 88090
also shall submit a tonnage report by November 30, 2005, for the 88091
period beginning on July 1, 2005, and ending on October 31, 2005 88092
as required by section 905.36 of the Revised Code as amended by 88093
this act.88094

       COMMERCIAL FEED, FERTILIZER, SEED, AND LIME INSPECTION AND 88095
LABORATORY FUND88096

        The Commercial Feed, Fertilizer, Seed, and Lime Inspection 88097
and Laboratory Fund created in section 905.38 of the Revised Code, 88098
as amended by this act, is a continuation of the Commercial Feed, 88099
Fertilizer, and Lime Inspection and Laboratory Fund that was 88100
created in that section prior to its amendment by this act. 88101
Notwithstanding any other provision of law to the contrary, the 88102
Seed Fund (5Z4) created in section 907.16 of the Revised Code 88103
shall cease to exist, effective July 1, 2005. All assets, 88104
liabilities, revenues, and obligations associated with the Seed 88105
Fund (5Z4) are hereby transferred to the Commercial Feed, 88106
Fertilizer, Seed, and Lime Inspection and Laboratory Fund (Fund 88107
4C9) on July 1, 2005.88108

        Effective July 1, 2005, or as soon thereafter as possible, 88109
the Director of Agriculture shall certify to the Director of 88110
Budget and Management the cash balance in the Seed Fund (5Z4), 88111
which was merged in section 907.16 of the Revised Code, as amended 88112
by this act. The Director of Budget and Management shall transfer 88113
the certified amount to the Commercial Feed, Fertilizer, Seed, and 88114
Lime Inspection and Laboratory Fund (Fund 4C9), which is created 88115
in section 907.16 of the Revised Code, formerly named the Seed 88116
Fund. The Director shall cancel any existing encumbrances against 88117
appropriation item 700-642, Seed Program, and re-establish them 88118
against appropriation item 700-605, Feed, Fertilizer, Seed, and 88119
Lime Inspection. The amounts of the re-established encumbrances 88120
are hereby appropriated.88121

        METROLOGY LAB AND SCALE CERTIFICATION FUND88122

       The Metrology and Scale Certification Fund created in section 88123
1327.511 of the Revised Code, as amended by this act, is a 88124
continuation of the Scale Certification Fund that was created in 88125
that section prior to its amendment by this act. Notwithstanding 88126
any other provision of law to the contrary, the Scale 88127
Certification Fund (Fund 579) created in section 1327.511 of the 88128
Revised Code shall cease to exist, effective July 1, 2005. All 88129
assets, liabilities, revenues, and obligations associated with the 88130
Scale Certification Fund (Fund 579) are hereby transferred to the 88131
Metrology Lab and Scale Certification Fund (Fund 5H2) on July 1, 88132
2005.88133

       Effective July 1, 2005, or as soon thereafter as possible, 88134
the Director of Agriculture shall certify to the Director of 88135
Budget and Management the cash balance in the Scale Certification 88136
Fund (Fund 579), which was merged in section 1327.511 of the 88137
Revised Code, as amended by this act. The Director of Budget and 88138
Management shall transfer the certified amount to the Metrology 88139
Laboratory and Scale Certification Fund (Fund 5H2) which is 88140
created in section 1327.511 of the Revised Code, formerly named 88141
the Scale Certification Laboratory Fund. The Director shall cancel 88142
any existing encumbrances against appropriation item 700-630, 88143
Scale Certification, and re-establish them against appropriation 88144
item 700-608, Metrology Lab. The amounts of the re-established 88145
encumbrances are hereby appropriated.88146

       ANIMAL HEALTH AND FOOD SAFETY88147

        Notwithstanding any other provision of law to the contrary, 88148
the Animal Industry Laboratory Fees Fund (Fund 4V5) created in 88149
division (E)(1) of section 901.43 of the Revised Code shall cease 88150
to exist, effective July 1, 2005. All assets, liabilities, 88151
revenues, and obligations associated with the Animal Industry 88152
Laboratory Fund (Fund 4V5) are hereby transferred to the Animal 88153
Health and Food Safety Fund (Fund 652) on July 1, 2005.88154

        Effective July 1, 2005, or as soon thereafter as possible, 88155
the Director of Agriculture shall certify to the Director of 88156
Budget and Management the cash balance in the Animal Industry 88157
Laboratory Fund (Fund 4V5), which was merged in division (E)(1) of 88158
section 901.43 of the Revised Code, as amended by this act. The 88159
Director of Budget and Management shall transfer the certified 88160
amount to the Animal Health and Food Safety Fund (Fund 652) which 88161
is created in division (E)(2) of section 901.43 of the Revised 88162
Code, formerly named the Animal Industry Laboratory Fund. The 88163
Director of Budget and Management shall cancel any existing 88164
encumbrances against appropriation item 700-615, Animal Industry 88165
Lab Fees, and re-establish them against appropriation item 88166
700-634, Laboratory Services. The amounts of the re-established 88167
encumbrances are hereby appropriated.88168

       PESTICIDE REGISTRATION AND INSPECTION FEE88169

       The registration and inspection fee established in rules 88170
adopted under section 921.16 of Revised Code for the purposes of 88171
section 921.02 of the Revised Code, as that section existed prior 88172
to its amendment by this act, that are in effect on January 1, 88173
2005, shall remain in effect until the new fees established in 88174
section 921.02 of the Revised Code as amended by this act take 88175
effect on January 1, 2007.88176

       CLEAN OHIO AGRICULTURAL EASEMENT88177

       The foregoing appropriation item 700-632, Clean Ohio 88178
Agricultural Easement, shall be used by the Department of 88179
Agriculture in administering sections 901.21, 901.22, and 5301.67 88180
to 5301.70 of the Revised Code.88181

        TRANSFER BETWEEN FUNDS88182

        For fiscal years 2006 and 2007, if the cash credited to the 88183
Commercial Feed, Fertilizer, Seed, and Lime Inspection and 88184
Laboratory Fund (Fund 4C9) or the Pesticide Program Fund (Fund 88185
669) exceeds the amount necessary to administer the programs for 88186
which they were intended, the Director of Agriculture may certify 88187
the amount to the Director of Budget and Management. The Director 88188
of Budget and Management may transfer the cash to any other fund 88189
administered by the Director of Agriculture.88190

       UNCLAIMED FUNDS TRANSFER88191

       Notwithstanding division (A) of section 169.05 of the Revised 88192
Code, upon the request of the Director of Budget and Management, 88193
the Director of Commerce, prior to June 30, 2006, shall transfer 88194
to the Food Safety Fund (Fund 4P7) up to $21,790 of the unclaimed 88195
funds that have been reported by the holders of unclaimed funds 88196
under section 169.05 of the Revised Code, regardless of the 88197
allocation of the unclaimed funds described in that section.88198

       Notwithstanding division (A) of section 169.05 of the Revised 88199
Code, upon the request of the Director of Budget and Management, 88200
the Director of Commerce, prior to June 30, 2007, shall transfer 88201
to the Food Safety Fund (Fund 4P7) up to $21,790 of the unclaimed 88202
funds that have been reported by the holders of unclaimed funds 88203
under section 169.05 of the Revised Code, regardless of the 88204
allocation of the unclaimed funds described in that section.88205

       Section 203.27.  AIR AIR QUALITY DEVELOPMENT AUTHORITY88206

General Revenue Fund88207

GRF 898-402 Coal Development Office $ 568,814 $ 573,814 88208
GRF 898-901 Coal R&D General Obligation Debt Service $ 7,071,100 $ 8,980,800 88209
TOTAL GRF General Revenue Fund $ 7,639,914 $ 9,554,614 88210

Agency Fund Group88211

4Z9 898-602 Small Business Ombudsman $ 263,165 $ 264,196 88212
5A0 898-603 Small Business Assistance $ 71,087 $ 71,087 88213
570 898-601 Operating Expenses $ 256,875 $ 263,693 88214
TOTAL AGY Agency Fund Group $ 591,127 $ 598,976 88215

Coal Research/Development Fund88216

046 898-604 Coal Research and Development Fund $ 10,000,000 $ 10,000,000 88217
TOTAL 046 Coal Research/Development Fund $ 10,000,000 $ 10,000,000 88218
TOTAL ALL BUDGET FUND GROUPS $ 18,231,041 $ 20,153,590 88219

       COAL DEVELOPMENT OFFICE88220

        The foregoing appropriation item GRF 898-402, Coal 88221
Development Office, shall be used for the administrative costs of 88222
the Coal Development Office.88223

       COAL RESEARCH AND DEVELOPMENT GENERAL OBLIGATION DEBT SERVICE88224

        The foregoing appropriation item GRF 898-901, Coal R & D 88225
General Obligation Debt Service, shall be used to pay all debt 88226
service and related financing costs at the times they are required 88227
to be made under sections 151.01 and 151.07 of the Revised Code 88228
during the period from July 1, 2005, to June 30, 2007. The Office 88229
of the Sinking Fund or the Director of Budget and Management shall 88230
effectuate the required payments by intrastate transfer voucher.88231

       SCIENCE AND TECHNOLOGY COLLABORATION88232

        The Air Quality Development Authority shall work in close 88233
collaboration with the Department of Development, the Board of 88234
Regents, and the Third Frontier Commission in relation to 88235
appropriation items and programs referred to as Alignment Programs 88236
in the following paragraph, and other technology-related 88237
appropriations and programs in the Department of Development, Air 88238
Quality Development Authority, and the Board of Regents as those 88239
agencies may designate, to ensure implementation of a coherent 88240
state strategy with respect to science and technology.88241

       To the extent permitted by law, the Air Quality Development 88242
Authority shall assure that coal research and development 88243
programs, proposals, and projects consider or incorporate 88244
appropriate collaborations with Third Frontier Project programs 88245
and grantees and with Alignment Programs and grantees.88246

       "Alignment Programs" means: appropriation items 195-401, 88247
Thomas Edison Program; 898-402, Coal Development Office; 195-422, 88248
Third Frontier Action Fund; 898-604, Coal Research and Development 88249
Fund; 235-433, Economic Growth Challenge; 235-508, Air Force 88250
Institute of Technology; 235-510, Ohio Supercomputer Center; 88251
235-451, Eminent Scholars; 235-527, Ohio Aerospace Institute; 88252
235-535, Ohio Agricultural Research and Development Center; 88253
235-553, Dayton Area Graduate Studies Institute; 235-554, 88254
Priorities in Collaborative Graduate Education; 235-556, Ohio 88255
Academic Resources Network; and 195-435, Biomedical Research and 88256
Technology Transfer Trust.88257

       Consistent with the recommendations of the Governor's 88258
Commission on Higher Education and the Economy, Alignment Programs 88259
shall be managed and administered (1) to build on existing 88260
competitive research strengths, (2) to encourage new and emerging 88261
discoveries and commercialization of ideas and products that will 88262
benefit the Ohio economy, and (3) to assure improved collaboration 88263
among Alignment Programs, with programs administered by the Third 88264
Frontier Commission, and with other state programs that are 88265
intended to improve economic growth and job creation.88266

       As directed by the Third Frontier Commission, Alignment 88267
Program managers shall report to the Commission or to the Third 88268
Frontier Advisory Board on the contributions of their programs to 88269
achieving the objectives stated in the preceding paragraph.88270

       Each alignment program shall be reviewed annually by the 88271
Third Frontier Commission with respect to its development of 88272
complementary relationships within a combined state science and 88273
technology investment portfolio and its overall contribution to 88274
the state's science and technology strategy, including the 88275
adoption of appropriately consistent criteria for: (1) the 88276
scientific merit of activities supported by the program; (2) the 88277
relevance of the program's activities to commercial opportunities 88278
in the private sector; (3) the private sector's involvement in a 88279
process that continually evaluates commercial opportunities to use 88280
the work supported by the program; and (4) the ability of the 88281
program and recipients of grant funding from the program to engage 88282
in activities that are collaborative, complementary, and efficient 88283
with respect to the expenditure of state funds. Each alignment 88284
program shall provide annual reports to the Third Frontier 88285
Commission discussing existing, planned, or possible 88286
collaborations between programs and recipients of grant funding 88287
related to technology, development, commercialization, and 88288
supporting Ohio's economic development. The annual review by the 88289
Third Frontier Commission shall be a comprehensive review of the 88290
entire state science and technology program portfolio rather than 88291
a review of individual programs.88292

       Applicants for Third Frontier and Alignment Program funding 88293
shall identify their requirements for high-performance computing 88294
facilities and services, including both hardware and software, in 88295
all proposals. If an applicant's requirements exceed approximately 88296
$100,000 for a proposal, the Ohio Supercomputer Center shall 88297
convene a panel of experts. The panel shall review the proposal to 88298
determine whether the proposal's requirements can be met through 88299
Ohio Supercomputer Center facilities or through other means and 88300
report its conclusion to the Third Frontier Commission.88301

        To ensure that the state receives the maximum benefit from 88302
its investment in the Third Frontier Project and the Third 88303
Frontier Network, organizations receiving Third Frontier awards 88304
and Alignment Program awards shall, as appropriate, be expected to 88305
have a connection to the Third Frontier Network that enables them 88306
and their collaborators to achieve award objectives through the 88307
Third Frontier Network.88308

       Section 203.30.  ADA DEPARTMENT OF ALCOHOL AND DRUG ADDICTION 88309
SERVICES88310

General Revenue Fund88311

GRF 038-321 Operating Expenses $ 1,128,275 $ 1,128,275 88312
GRF 038-401 Treatment Services $ 37,760,215 $ 39,494,113 88313
GRF 038-404 Prevention Services $ 1,021,483 $ 1,052,127 88314
TOTAL GRF General Revenue Fund $ 39,909,973 $ 41,674,515 88315

General Services Fund88316

5T9 038-616 Problem Gambling Services $ 285,000 $ 285,000 88317
TOTAL GSF General Services Fund Group $ 285,000 $ 285,000 88318

Federal Special Revenue Fund Group88319

3G3 038-603 Drug Free Schools $ 3,500,000 $ 3,500,000 88320
3G4 038-614 Substance Abuse Block Grant $ 73,000,000 $ 73,000,000 88321
3H8 038-609 Demonstration Grants $ 7,093,075 $ 7,093,075 88322
3J8 038-610 Medicaid $ 42,000,000 $ 46,000,000 88323
3N8 038-611 Administrative Reimbursement $ 500,000 $ 500,000 88324
TOTAL FED Federal Special Revenue 88325
Fund Group $ 126,093,075 $ 130,093,075 88326

State Special Revenue Fund Group88327

475 038-621 Statewide Treatment and Prevention $ 17,500,000 $ 18,000,000 88328
5BR 038-406 Tobacco Use Prevention and Control Program $ 265,000 $ 205,000 88329
689 038-604 Education and Conferences $ 350,000 $ 350,000 88330
TOTAL SSR State Special Revenue 88331
Fund Group $ 18,115,000 $ 18,555,000 88332
TOTAL ALL BUDGET FUND GROUPS $ 184,403,048 $ 190,607,590 88333

       TREATMENT SERVICES88334

        Of the foregoing appropriation item 038-401, Treatment 88335
Services, not more than $8,190,000 shall be used by the Department 88336
of Alcohol and Drug Addiction Services for program grants for 88337
priority populations in each year of the biennium.88338

       SERVICES TO POOR MEDICATION DEPENDENT ADULTS88339

       Of the foregoing appropriation item 038-401, Treatment 88340
Services, $2,166,950 in fiscal year 2006 and $2,833,050 in fiscal 88341
year 2007 shall be used to provide services to persons who meet 88342
criteria that are consistent with the criteria for the Disability 88343
Medical Assistance Program.88344

       SUBSTANCE ABUSE SERVICES FOR FAMILIES OF AT RISK CHILDREN88345

       Of the foregoing appropriation item 038-401, Treatment88346
Services, $4 million in each fiscal year shall be used to provide 88347
substance abuse services to families involved in the child welfare 88348
system under the requirements of Am. Sub. H.B. 484 of the 122nd88349
General Assembly.88350

       SERVICES FOR TANF-ELIGIBLE INDIVIDUALS88351

       Of the foregoing appropriation item 038-401, Treatment 88352
Services, $5 million each year shall be used to fund TANF-eligible 88353
expenditures for substance abuse prevention and treatment services 88354
to children, or their families, whose income is at or below 200 88355
per cent of the official income poverty guideline. The Director of 88356
Alcohol and Drug Addiction Services and the Director of Job and 88357
Family Services shall develop operating and reporting guidelines 88358
for these programs.88359

       THERAPEUTIC COMMUNITIES88360

        Of the foregoing appropriation item 038-401, Treatment 88361
Services, $750,000 shall be used in each fiscal year for expansion 88362
of the Therapeutic Communities Program in the Department of 88363
Rehabilitation and Correction.88364

       PARENT AWARENESS TASK FORCE88365

       The Parent Awareness Task Force shall study ways to engage88366
more parents in activities, coalitions, and educational programs88367
in Ohio relating to alcohol and other drug abuse prevention. Of88368
the foregoing appropriation item 038-404, Prevention Services,88369
$30,000 in each fiscal year may be used to support the functions88370
of the Parent Awareness Task Force.88371

       Section 203.36.  ARC STATE BOARD OF EXAMINERS OF ARCHITECTS88372

General Services Fund Group88373

4K9 891-609 Operating Expenses $ 489,197 $ 489,197 88374
TOTAL GSF General Services Fund 88375
Group $ 489,197 $ 489,197 88376
TOTAL ALL BUDGET FUND GROUPS $ 489,197 $ 489,197 88377


       Section 203.39.  ART OHIO ARTS COUNCIL88379

General Revenue Fund88380

GRF 370-100 Personal Services $ 1,798,235 $ 1,798,235 88381
GRF 370-200 Maintenance $ 459,746 $ 459,746 88382
GRF 370-300 Equipment $ 4,700 $ 4,700 88383
GRF 370-502 Program Subsidies $ 8,975,480 $ 8,975,480 88384
TOTAL GRF General Revenue Fund $ 11,238,161 $ 11,238,161 88385

General Services Fund Group88386

4B7 370-603 Per Cent for Art Acquisitions $ 86,366 $ 86,366 88387
460 370-602 Gifts and Donations $ 400,000 $ 400,000 88388
TOTAL GSF General Services Fund Group $ 486,366 $ 486,366 88389

Federal Special Revenue Fund Group88390

314 370-601 Federal Programs $ 1,537,200 $ 1,537,200 88391
TOTAL FED Federal Special Revenue Fund Group $ 1,537,200 $ 1,537,200 88392
TOTAL ALL BUDGET FUND GROUPS $ 13,261,727 $ 13,261,727 88393

       PROGRAM SUBSIDIES88394

       A museum is not eligible to receive funds from appropriation88395
item 370-502, Program Subsidies, if $8,000,000 or more in capital88396
appropriations were appropriated by the state for the museum88397
between January 1, 1986, and December 31, 2002.88398

       Section 203.45. ATH ATHLETIC COMMISSION88399

General Services Fund Group88400

4K9 175-609 Operating Expenses $ 248,150 $ 0 88401
TOTAL GSF General Services Fund Group $ 248,150 $ 0 88402
TOTAL ALL BUDGET FUND GROUPS $ 248,150 $ 0 88403


       Section 203.48. AGO ATTORNEY GENERAL88405

General Revenue Fund88406

GRF 055-321 Operating Expenses $ 42,118,150 $ 52,610,156 88407
GRF 055-411 County Sheriffs' Pay Supplement $ 760,495 $ 779,509 88408
GRF 055-415 County Prosecutors' Pay Supplement $ 740,704 $ 759,222 88409
TOTAL GRF General Revenue Fund $ 43,619,349 $ 54,148,887 88410

General Services Fund Group88411

106 055-612 General Reimbursement $ 21,370,196 $ 21,370,196 88412
107 055-624 Employment Services $ 850,000 $ 850,000 88413
195 055-660 Workers' Compensation Section $ 7,769,628 $ 7,769,628 88414
4Y7 055-608 Title Defect Rescission $ 250,000 $ 250,000 88415
4Z2 055-609 BCI Asset Forfeiture and Cost Reimbursement $ 1,332,109 $ 1,332,109 88416
418 055-615 Charitable Foundations $ 4,899,066 $ 4,899,066 88417
420 055-603 Attorney General Antitrust $ 446,449 $ 446,449 88418
421 055-617 Police Officers' Training Academy Fee $ 1,693,213 $ 1,693,213 88419
5A9 055-618 Telemarketing Fraud Enforcement $ 7,500 $ 7,500 88420
590 055-633 Peace Officer Private Security Fund $ 98,370 $ 98,370 88421
629 055-636 Corrupt Activity Investigation and Prosecution $ 15,000 $ 15,000 88422
631 055-637 Consumer Protection Enforcement $ 1,373,832 $ 1,373,832 88423
TOTAL GSF General Services Fund 88424
Group $ 40,105,363 $ 40,105,363 88425

Federal Special Revenue Fund Group88426

3E5 055-638 Attorney General Pass-Through Funds $ 1,981,102 $ 1,981,102 88427
3R6 055-613 Attorney General Federal Funds $ 3,842,097 $ 3,842,097 88428
306 055-620 Medicaid Fraud Control $ 2,799,000 $ 2,799,000 88429
381 055-611 Civil Rights Legal Service $ 390,815 $ 390,815 88430
383 055-634 Crime Victims Assistance $ 18,439,313 $ 18,439,313 88431
TOTAL FED Federal Special Revenue 88432
Fund Group $ 27,452,327 $ 27,452,327 88433

State Special Revenue Fund Group88434

4L6 055-606 DARE $ 3,927,962 $ 3,927,962 88435
402 055-616 Victims of Crime $ 30,000,000 $ 30,000,000 88436
419 055-623 Claims Section $ 23,671,954 $ 15,149,954 88437
659 055-641 Solid and Hazardous Waste Background Investigations $ 621,159 $ 621,159 88438
TOTAL SSR State Special Revenue 88439
Fund Group $ 58,221,075 $ 49,699,075 88440

Holding Account Redistribution Fund Group88441

R04 055-631 General Holding Account $ 275,000 $ 275,000 88442
R05 055-632 Antitrust Settlements $ 1,000 $ 1,000 88443
R18 055-630 Consumer Frauds $ 300,000 $ 300,000 88444
R42 055-601 Organized Crime Commission Account $ 25,025 $ 25,025 88445
TOTAL 090 Holding Account 88446
Redistribution Fund Group $ 601,025 $ 601,025 88447
TOTAL ALL BUDGET FUND GROUPS $ 169,999,139 $ 172,006,677 88448

       COUNTY SHERIFFS' PAY SUPPLEMENT88449

        The foregoing appropriation item 055-411, County Sheriffs' 88450
Pay Supplement, shall be used for the purpose of supplementing the 88451
annual compensation of county sheriffs as required by section 88452
325.06 of the Revised Code.88453

       COUNTY PROSECUTORS' PAY SUPPLEMENT88454

       The foregoing appropriation item 055-415, County Prosecutors' 88455
Pay Supplement, shall be used for the purpose of supplementing the 88456
annual compensation of certain county prosecutors as required by 88457
section 325.111 of the Revised Code.88458

       WORKERS' COMPENSATION SECTION88459

       The Workers' Compensation Section Fund (Fund 195) is entitled 88460
to receive payments from the Bureau of Workers' Compensation and 88461
the Ohio Industrial Commission at the beginning of each quarter of88462
each fiscal year to fund legal services to be provided to the88463
Bureau of Workers' Compensation and the Ohio Industrial Commission88464
during the ensuing quarter. The advance payment shall be subject88465
to adjustment.88466

       In addition, the Bureau of Workers' Compensation shall88467
transfer payments at the beginning of each quarter for the support88468
of the Workers' Compensation Fraud Unit.88469

       All amounts shall be mutually agreed upon by the Attorney88470
General, the Bureau of Workers' Compensation, and the Ohio88471
Industrial Commission.88472

       CORRUPT ACTIVITY INVESTIGATION AND PROSECUTION88473

       The foregoing appropriation item 055-636, Corrupt Activity88474
Investigation and Prosecution, shall be used as provided by88475
division (D)(2) of section 2923.35 of the Revised Code to dispose88476
of the proceeds, fines, and penalties credited to the Corrupt88477
Activity Investigation and Prosecution Fund, which is created in88478
division (D)(1)(b) of section 2923.35 of the Revised Code. If it88479
is determined that additional amounts are necessary for this 88480
purpose, the amounts are hereby appropriated.88481

       ATTORNEY GENERAL PASS-THROUGH FUNDS88482

        The foregoing appropriation item 055-638, Attorney General 88483
Pass-Through Funds, shall be used to receive federal grant funds 88484
provided to the Attorney General by other state agencies, 88485
including, but not limited to, the Department of Youth Services 88486
and the Department of Public Safety.88487

        ANTITRUST SETTLEMENTS88488

       The foregoing appropriation item 055-632, Antitrust 88489
Settlements, shall be used to distribute court-ordered antitrust 88490
settlements in which the Office of Attorney General represents the 88491
state or a political subdivision under section 109.81 of the 88492
Revised Code. If it is determined that additional amounts are 88493
necessary for this purpose, the amounts are hereby appropriated.88494

       CONSUMER FRAUDS88495

        The foregoing appropriation item 055-630, Consumer Frauds, 88496
shall be used for distribution of moneys from court-ordered 88497
judgments against sellers in actions brought by the Office of 88498
Attorney General under sections 1334.08 and 4549.48 and division 88499
(B) of section 1345.07 of the Revised Code. These moneys shall be 88500
used to provide restitution to consumers victimized by the fraud 88501
that generated the court-ordered judgments. If it is determined 88502
that additional amounts are necessary for this purpose, the 88503
amounts are hereby appropriated.88504

       ORGANIZED CRIME COMMISSION ACCOUNT88505

        The foregoing appropriation item 055-601, Organized Crime 88506
Commission Account, shall be used by the Organized Crime 88507
Investigations Commission, as provided by section 177.011 of the 88508
Revised Code, to reimburse political subdivisions for the expenses 88509
the political subdivisions incur when their law enforcement 88510
officers participate in an organized crime task force. If it is 88511
determined that additional amounts are necessary for this purpose, 88512
the amounts are hereby appropriated.88513

       Section 203.51. AUD AUDITOR OF STATE88514

General Revenue Fund88515

GRF 070-321 Operating Expenses $ 29,014,425 $ 28,964,425 88516
GRF 070-403 Fiscal Watch/Emergency Technical Assistance $ 500,000 $ 500,000 88517
GRF 070-405 Electronic Data Processing - Auditing and Administration $ 823,193 $ 823,193 88518
GRF 070-406 Uniform Accounting Network/Technology Improvements Fund $ 1,588,538 $ 1,588,538 88519
TOTAL GRF General Revenue Fund $ 31,926,156 $ 31,876,156 88520

Auditor of State Fund Group88521

R06 070-604 Continuous Receipts $ 35,000 $ 35,000 88522
109 070-601 Public Audit Expense - Intra-State $ 9,300,000 $ 9,300,000 88523
422 070-601 Public Audit Expense - Local Government $ 31,104,840 $ 31,104,840 88524
584 070-603 Training Program $ 131,250 $ 131,250 88525
675 070-605 Uniform Accounting Network $ 3,317,336 $ 3,317,336 88526
TOTAL AUS Auditor of State Fund 88527
Group $ 43,888,426 $ 43,888,426 88528
TOTAL ALL BUDGET FUND GROUPS $ 75,814,582 $ 75,764,582 88529

       BILLING PRACTICES PILOT REVIEW88530

        Of the foregoing appropriation item 070-321, Operating 88531
Expenses, $50,000 shall be used by the Auditor of State to conduct 88532
a pilot review of the billing practices of facilities licensed by 88533
the Department of Mental Health and the Department of Job and 88534
Family Services that serve children in a residential setting for 88535
whom mental health treatment services are provided. In conducting 88536
this review, the Auditor of State shall have access to any 88537
information, records, or other data that would otherwise be 88538
available to any federal, state, or local public agency that 88539
provides funding to the facility.88540

        The Auditor of State shall prepare a report on the 88541
conclusions of the pilot review, and shall furnish copies of the 88542
report to the Governor, the Speaker of the House of 88543
Representatives, and the President of the Senate, as well as to 88544
the majority and minority leaders of the House of Representatives 88545
and the Senate, by June 30, 2006.88546

       FISCAL WATCH/EMERGENCY TECHNICAL ASSISTANCE88547

       The foregoing appropriation item 070-403, Fiscal88548
Watch/Emergency Technical Assistance, shall be used for all88549
expenses incurred by the Office of the Auditor of State in its88550
role relating to fiscal watch or fiscal emergency activities under88551
Chapters 118. and 3316. of the Revised Code. Expenses include, but 88552
are not limited to, the following: duties related to the 88553
determination or termination of fiscal watch or fiscal emergency 88554
of municipal corporations, counties, or townships as outlined in 88555
Chapter 118. of the Revised Code and of school districts as 88556
outlined in Chapter 3316. of the Revised Code; development of 88557
preliminary accounting reports; performance of annual forecasts; 88558
provision of performance audits; and supervisory, accounting, or 88559
auditing services for the mentioned public entities and school 88560
districts. The unencumbered balance of appropriation item 070-403, 88561
Fiscal Watch/Emergency Technical Assistance, at the end of fiscal 88562
year 2006 is transferred to fiscal year 2007 for use under the 88563
same appropriation item.88564

       ELECTRONIC DATA PROCESSING88565

       The unencumbered balance of appropriation item 070-405,88566
Electronic Data Processing - Auditing and Administration, at the88567
end of fiscal year 2006 is transferred to fiscal year 2007 for use88568
under the same appropriation item.88569

       UNIFORM ACCOUNTING NETWORK/TECHNOLOGY IMPROVEMENTS FUND88570

       The foregoing appropriation item 070-406, Uniform Accounting88571
Network/Technology Improvements Fund, shall be used to pay the88572
costs of developing and implementing the Uniform Accounting88573
Network and technology improvements for the Office of the Auditor88574
of State. The unencumbered balance of the appropriation at the end 88575
of fiscal year 2006 is transferred to fiscal year 2007 to pay the 88576
costs of developing and implementing the Uniform Accounting 88577
Network and technology improvements for the Office of the Auditor 88578
of State.88579

       Section 203.54.  BRB BOARD OF BARBER EXAMINERS88580

General Services Fund Group88581

4K9 877-609 Operating Expenses $ 568,126 $ 0 88582
TOTAL GSF General Services Fund 88583
Group $ 568,126 $ 0 88584
TOTAL ALL BUDGET FUND GROUPS $ 568,126 $ 0 88585


       Section 203.57.  OBM OFFICE OF BUDGET AND MANAGEMENT88587

General Revenue Fund88588

GRF 042-321 Budget Development and Implementation $ 2,143,886 $ 2,143,886 88589
GRF 042-410 National Association Dues $ 27,089 $ 28,173 88590
GRF 042-412 Audit of Auditor of State $ 55,900 $ 58,700 88591
GRF 042-435 Gubernatorial Transition $ 0 $ 250,000 88592
TOTAL GRF General Revenue Fund $ 2,226,875 $ 2,480,759 88593

General Services Fund Group88594

105 042-603 Accounting and Budgeting $ 9,781,085 $ 9,976,689 88595
TOTAL GSF General Services Fund Group $ 9,781,085 $ 9,976,689 88596

State Special Revenue Fund Group88597

5N4 042-602 OAKS Project Implementation $ 2,262,441 $ 2,272,595 88598
TOTAL SSR State Special Revenue Fund Group $ 2,262,441 $ 2,272,595 88599
TOTAL ALL BUDGET FUND GROUPS $ 14,270,401 $ 14,730,043 88600

       AUDIT COSTS88601

       Of the foregoing appropriation item 042-603, Accounting and 88602
Budgeting, not more than $420,000 in fiscal year 2006 and $425,00088603
in fiscal year 2007 shall be used to pay for centralized audit88604
costs associated with either Single Audit Schedules or financial 88605
statements prepared in conformance with generally accepted 88606
accounting principles for the state.88607

       OAKS PROJECT IMPLEMENTATION88608

       Notwithstanding section 126.25 of the Revised Code, in fiscal 88609
years 2006 and 2007, rebates or revenue shares received from any 88610
state payment card program established under division (B) of 88611
section 126.21 of the Revised Code may be deposited into the OAKS 88612
Project Implementation Fund (Fund 5N4).88613

       Section 203.60. CSR CAPITOL SQUARE REVIEW AND ADVISORY BOARD88614

General Revenue Fund88615

GRF 874-100 Personal Services $ 1,900,000 $ 1,900,000 88616
GRF 874-320 Maintenance and Equipment $ 992,269 $ 952,269 88617
TOTAL GRF General Revenue Fund $ 2,892,269 $ 2,852,269 88618

General Services Fund Group88619

4G5 874-603 Capitol Square Maintenance Expenses $ 15,000 $ 15,000 88620
4S7 874-602 Statehouse Gift Shop/Events $ 770,484 $ 770,484 88621
TOTAL GSF General Services 88622
Fund Group $ 785,484 $ 785,484 88623

Underground Parking Garage88624

208 874-601 Underground Parking Garage Operating $ 2,959,721 $ 2,959,721 88625
TOTAL UPG Underground Parking 88626
Garage $ 2,959,721 $ 2,959,721 88627
TOTAL ALL BUDGET FUND GROUPS $ 6,637,474 $ 6,597,474 88628

       EXPANSION OF COMMITTEE HEARING ROOMS88629

        Of the foregoing appropriation item 874-320, Maintenance and 88630
Equipment, $40,000 in fiscal year 2006 shall be used to expand the 88631
House of Representatives committee hearing rooms, numbers 119 and 88632
121.88633

       Section 203.63. SCR STATE BOARD OF CAREER COLLEGES AND 88634
SCHOOLS88635

General Services Fund Group88636

4K9 233-601 Operating Expenses $ 486,700 $ 508,600 88637
TOTAL GSF General Services Fund Group $ 486,700 $ 508,600 88638
TOTAL ALL BUDGET FUND GROUPS $ 486,700 $ 508,600 88639


       Section 203.66. CDP CHEMICAL DEPENDENCY PROFESSIONALS BOARD88641

General Services Fund Group88642

4K9 930-609 Operating Expenses $ 452,976 $ 0 88643
TOTAL GSF General Services Fund Group $ 452,976 $ 0 88644
TOTAL ALL BUDGET FUND GROUPS $ 452,976 $ 0 88645


       Section 203.69. CHR STATE CHIROPRACTIC BOARD88647

General Services Fund Group88648

4K9 878-609 Operating Expenses $ 605,278 $ 0 88649
TOTAL GSF General Services Fund 88650
Group $ 605,278 $ 0 88651
TOTAL ALL BUDGET FUND GROUPS $ 605,278 $ 0 88652


       Section 203.72. CIV OHIO CIVIL RIGHTS COMMISSION88654

General Revenue Fund88655

GRF 876-321 Operating Expenses $ 7,253,075 $ 7,470,667 88656
TOTAL GRF General Revenue Fund $ 7,253,075 $ 7,470,667 88657

Federal Special Revenue Fund Group88658

334 876-601 Investigations $ 3,760,000 $ 3,560,000 88659
TOTAL FED Federal Special Revenue 88660
Fund Group $ 3,760,000 $ 3,560,000 88661

State Special Revenue Fund Group88662

217 876-604 Operations Support $ 50,951 $ 50,951 88663
TOTAL SSR State Special 88664
Revenue Fund Group $ 50,951 $ 50,951 88665
TOTAL ALL BUDGET FUND GROUPS $ 11,064,026 $ 11,081,618 88666


       Section 203.75. COM DEPARTMENT OF COMMERCE88668

General Revenue Fund88669

GRF 800-410 Labor and Worker Safety $ 2,086,477 $ 2,032,397 88670
Total GRF General Revenue Fund $ 2,086,477 $ 2,032,397 88671

General Services Fund Group88672

163 800-620 Division of Administration $ 4,262,314 $ 4,368,037 88673
163 800-637 Information Technology $ 2,733,853 $ 2,785,045 88674
5F1 800-635 Small Government Fire Departments $ 250,000 $ 250,000 88675
543 800-602 Unclaimed Funds-Operating $ 7,351,051 $ 7,351,051 88676
543 800-625 Unclaimed Funds-Claims $ 52,000,000 $ 55,000,000 88677
TOTAL GSF General Services Fund 88678
Group $ 66,597,218 $ 69,754,133 88679

Federal Special Revenue Fund Group88680

348 800-622 Underground Storage Tanks $ 195,008 $ 195,008 88681
348 800-624 Leaking Underground Storage Tanks $ 1,850,000 $ 1,850,000 88682
TOTAL FED Federal Special Revenue 88683
Fund Group $ 2,045,008 $ 2,045,008 88684

State Special Revenue Fund Group88685

4B2 800-631 Real Estate Appraisal Recovery $ 35,000 $ 35,000 88686
4H9 800-608 Cemeteries $ 273,465 $ 273,465 88687
4X2 800-619 Financial Institutions $ 2,400,843 $ 2,400,843 88688
5K7 800-621 Penalty Enforcement $ 50,000 $ 50,000 88689
544 800-612 Banks $ 6,757,197 $ 6,759,197 88690
545 800-613 Savings Institutions $ 2,678,248 $ 2,669,774 88691
546 800-610 Fire Marshal $ 12,187,994 $ 12,292,994 88692
546 800-639 Fire Department Grants $ 1,647,140 $ 1,647,140 88693
547 800-603 Real Estate Education/Research $ 250,000 $ 250,000 88694
548 800-611 Real Estate Recovery $ 50,000 $ 50,000 88695
549 800-614 Real Estate $ 3,605,892 $ 3,605,892 88696
550 800-617 Securities $ 4,300,000 $ 4,400,000 88697
552 800-604 Credit Union $ 2,936,852 $ 2,941,852 88698
553 800-607 Consumer Finance $ 4,300,445 $ 4,300,445 88699
556 800-615 Industrial Compliance $ 25,037,257 $ 25,037,257 88700
6A4 800-630 Real Estate Appraiser-Operating $ 664,006 $ 664,006 88701
653 800-629 UST Registration/Permit Fee $ 1,249,632 $ 1,249,632 88702
TOTAL SSR State Special Revenue 88703
Fund Group $ 68,423,971 $ 68,627,497 88704

Liquor Control Fund Group88705

043 800-601 Merchandising $ 382,595,409 $ 397,839,347 88706
043 800-627 Liquor Control Operating $ 16,873,183 $ 15,981,346 88707
043 800-633 Development Assistance Debt Service $ 32,158,300 $ 39,230,000 88708
043 800-636 Revitalization Debt Service $ 9,740,500 $ 13,485,800 88709
TOTAL LCF Liquor Control 88710
Fund Group $ 441,367,392 $ 466,536,493 88711
TOTAL ALL BUDGET FUND GROUPS $ 580,520,066 $ 608,995,528 88712

       SMALL GOVERNMENT FIRE DEPARTMENTS88713

       Notwithstanding section 3737.17 of the Revised Code, the88714
foregoing appropriation item 800-635, Small Government Fire88715
Departments, may be used to provide loans to private fire88716
departments.88717

       PENALTY ENFORCEMENT88718

       The foregoing appropriation item 800-621, Penalty88719
Enforcement, shall be used to enforce sections 4115.03 to 4115.1688720
of the Revised Code.88721

       UNCLAIMED FUNDS PAYMENTS88722

       The foregoing appropriation item 800-625, Unclaimed88723
Funds-Claims, shall be used to pay claims under section 169.08 of 88724
the Revised Code. If it is determined that additional amounts are 88725
necessary, the amounts are hereby appropriated.88726

       UNCLAIMED FUNDS TRANSFERS88727

        Notwithstanding division (A) of section 169.05 of the Revised 88728
Code, prior to June 30, 2006, and upon the request of the Director 88729
of Budget and Management, the Director of Commerce shall transfer 88730
to the General Revenue Fund up to $50,000,000 of unclaimed funds 88731
that have been reported by holders of unclaimed funds under 88732
section 169.05 of the Revised Code, irrespective of the allocation 88733
of the unclaimed funds under that section.88734

        Notwithstanding division (A) of section 169.05 of the Revised 88735
Code, prior to June 30, 2007, and upon the request of the Director 88736
of Budget and Management, the Director of Commerce shall transfer 88737
to the General Revenue Fund up to $50,000,000 of unclaimed funds 88738
that have been reported by holders of unclaimed funds under 88739
section 169.05 of the Revised Code, irrespective of the allocation 88740
of the unclaimed funds under that section.88741

       CASH TRANSFER TO STATE FIRE MARSHAL FUND (FUND 546)88742

        Effective July 1, 2005, or as soon thereafter as possible, 88743
the Director of Budget and Management shall transfer the cash 88744
balance in the Fire Marshal's Fireworks Training and Education 88745
Fund (Fund 4L5), which is abolished in division (B) of section 88746
3743.57 of the Revised Code as amended by this act, to the State 88747
Fire Marshal's Fund (Fund 546), which is created in section 88748
3737.71 of the Revised Code. The director shall cancel any 88749
existing encumbrances against appropriation item 800-609, 88750
Fireworks Training and Education, in Fund 4L5, and re-establish 88751
them against appropriation item 800-610, Fire Marshal, in Fund 88752
546. The amounts of the re-established encumbrances are hereby 88753
appropriated.88754

       CASH TRANSFER TO BUDGET STABILIZATION FUND88755

        Notwithstanding any other law to the contrary, the Director 88756
of Budget and Management shall transfer up to $1,700,000 in cash 88757
in fiscal year 2006 and up to $1,600,000 in cash in fiscal year 88758
2007 from the State Fire Marshal Fund (Fund 546) to the Budget 88759
Stabilization Fund.88760

       FIRE DEPARTMENT GRANTS88761

        Of the foregoing appropriation item 800-639, Fire Department 88762
Grants, up to $760,000 in each fiscal year shall be used to make 88763
annual grants to volunteer fire departments of up to $10,000, or 88764
up to $25,000 if the volunteer fire department provides service 88765
for an area affected by a natural disaster. The grant program 88766
shall be administered by the Fire Marshal under the Department of 88767
Commerce. The Fire Marshal shall adopt rules as are necessary for 88768
the administration and operation of the grant program.88769

        Of the foregoing appropriation item 800-639, Fire Department 88770
Grants, up to $687,140 in each fiscal year shall be used as full 88771
or partial reimbursement to local units of government and fire 88772
departments for the cost of firefighter training and equipment or 88773
gear. Under rules that the department shall adopt, a local unit of 88774
government or fire department may apply to the department for a 88775
grant to cover all documented costs that are incurred to provide 88776
firefighter training and equipment or gear. The department shall 88777
make grants within the limits of the funding provided, with 88778
priority given to fire departments that serve small villages and 88779
townships.88780

        Of the foregoing appropriation item 800-639, Fire Department 88781
Grants, up to $200,000 in each fiscal year shall be used to make 88782
grants to fire departments to assist in the conversion of existing 88783
data systems to the NFIRS 5 electronic fire reporting system. 88784
Under rules that the department shall adopt, awards shall have a 88785
maximum of $50,000 per fire department and shall be based on a 88786
point system that includes factors such as consideration of the 88787
fire department's information technology and operating budgets, 88788
population and area served, number of incidents, data conversion 88789
and implementation methods, and readiness.88790

       CASH TRANSFER TO REAL ESTATE OPERATING FUND88791

        At the request of the Director of Commerce, the Director of 88792
Budget and Management may transfer up to $100,000 in cash from the 88793
Real Estate Recovery Fund (Fund 548) and up to $350,000 in cash 88794
from the Real Estate Appraiser Recovery Fund (Fund 4B2) to the 88795
Real Estate Operating Fund (Fund 549) during the 2005-2007 88796
biennium.88797

       INCREASED APPROPRIATION AUTHORITY - MERCHANDISING88798

       The foregoing appropriation item 800-601, Merchandising, 88799
shall be used under section 4301.12 of the Revised Code. If it is 88800
determined that additional amounts are necessary, the amounts are 88801
hereby appropriated.88802

        DEVELOPMENT ASSISTANCE DEBT SERVICE88803

       The foregoing appropriation item 800-633, Development 88804
Assistance Debt Service, shall be used to meet all payments at the88805
times they are required to be made during the period from July 1,88806
2005, to June 30, 2007, for bond service charges on obligations88807
issued under Chapter 166. of the Revised Code. If it is determined 88808
that additional appropriations are necessary for this purpose, 88809
such amounts are hereby appropriated, subject to the limitations 88810
set forth in section 166.11 of the Revised Code. The General 88811
Assembly acknowledges that an appropriation for this purpose is 88812
not required, but is made in this form and in this act for record 88813
purposes only.88814

       REVITALIZATION DEBT SERVICE88815

       The foregoing appropriation item 800-636, Revitalization Debt88816
Service, shall be used to pay debt service and related financing88817
costs under sections 151.01 and 151.40 of the Revised Code during 88818
the period from July 1, 2005, to June 30, 2007. If it is 88819
determined that additional appropriations are necessary for this 88820
purpose, such amounts are hereby appropriated. The General 88821
Assembly acknowledges the priority of the pledge of a portion of 88822
receipts from that source to obligations issued and to be issued 88823
under Chapter 166. of the Revised Code.88824

       ADMINISTRATIVE ASSESSMENTS88825

       Notwithstanding any other provision of law to the contrary,88826
Fund 163, Division of Administration, is entitled to receive 88827
assessments from all operating funds of the department in 88828
accordance with procedures prescribed by the Director of Commerce 88829
and approved by the Director of Budget and Management.88830

       Section 203.78. OCC OFFICE OF CONSUMERS' COUNSEL88831

General Services Fund Group88832

5F5 053-601 Operating Expenses $ 7,770,000 $ 7,770,000 88833
TOTAL GSF General Services Fund Group $ 7,770,000 $ 7,770,000 88834
TOTAL ALL BUDGET FUND GROUPS $ 7,770,000 $ 7,770,000 88835


       Section 203.81.  CEB CONTROLLING BOARD88837

General Revenue Fund88838

GRF 911-401 Emergency Purposes/Contingencies $ 5,000,000 $ 5,000,000 88839
GRF 911-404 Mandate Assistance $ 650,000 $ 650,000 88840
GRF 911-441 Ballot Advertising Costs $ 300,000 $ 300,000 88841
TOTAL GRF General Revenue Fund $ 5,950,000 $ 5,950,000 88842
TOTAL ALL BUDGET FUND GROUPS $ 5,950,000 $ 5,950,000 88843

       FEDERAL SHARE88844

       In transferring appropriations to or from appropriation items88845
that have federal shares identified in this act, the Controlling88846
Board shall add or subtract corresponding amounts of federal88847
matching funds at the percentages indicated by the state and88848
federal division of the appropriations in this act. Such changes88849
are hereby appropriated.88850

       DISASTER ASSISTANCE88851

       Pursuant to requests submitted by the Department of Public88852
Safety, the Controlling Board may approve transfers from 88853
appropriation item 911-401, Emergency Purposes/Contingencies, to 88854
Department of Public Safety appropriation items to provide funding 88855
for assistance to political subdivisions and individuals made 88856
necessary by natural disasters or emergencies. Such transfers may 88857
be requested and approved prior to or following the occurrence of 88858
any specific natural disasters or emergencies in order to 88859
facilitate the provision of timely assistance.88860

       DISASTER SERVICES88861

        Pursuant to requests submitted by the Department of Public 88862
Safety, the Controlling Board may approve transfers from the 88863
Disaster Services Fund (5E2) to a Department of Public Safety 88864
General Revenue Fund appropriation item to provide for assistance 88865
to political subdivisions made necessary by natural disasters or 88866
emergencies. These transfers may be requested and approved prior 88867
to the occurrence of any specific natural disasters or emergencies 88868
in order to facilitate the provision of timely assistance. The 88869
Emergency Management Agency of the Department of Public Safety 88870
shall use the funding for disaster aid requests that meet the 88871
Emergency Management Agency's criteria for assistance.88872

        The Disaster Services Fund (5E2) shall be used by the 88873
Controlling Board, pursuant to requests submitted by state 88874
agencies, to transfer cash and appropriation authority to any fund 88875
and appropriation item for the payment of state agency program 88876
expenses as follows:88877

        (A) The Southern Ohio flooding, referred to as 88878
FEMA-DR-1164-OH;88879

        (B) The flood and storm disaster referred to as 88880
FEMA-DR-1227-OH;88881

        (C) The Southern Ohio flooding, referred to as 88882
FEMA-DR-1321-OH;88883

        (D) The flooding referred to as FEMA-DR-1339-OH;88884

        (E) The tornado and storms referred to as FEMA-DR-1343-OH;88885

        (F) Other disasters declared by the Governor, if the Director 88886
of Budget and Management determines that sufficient funds exist 88887
beyond the expected program costs of these other disasters.88888

        The unencumbered balance of the Disaster Services Fund (5E2) 88889
at the end of fiscal year 2006 is transferred to fiscal year 2007 88890
for use for the same purposes as in fiscal year 2006.88891

       SOUTHERN OHIO CORRECTIONAL FACILITY COST88892

       The Division of Criminal Justice Services in the Department 88893
of Public Safety and the Public Defender Commission may each 88894
request, upon approval of the Director of Budget and Management, 88895
additional funds from appropriation item 911-401, Emergency 88896
Purposes/Contingencies, for costs related to the disturbance that88897
occurred on April 11, 1993, at the Southern Ohio Correctional88898
Facility in Lucasville, Ohio.88899

       MANDATE ASSISTANCE88900

       (A) The foregoing appropriation item 911-404, Mandate88901
Assistance, shall be used to provide financial assistance to local88902
units of government and school districts for the cost of the 88903
following two unfunded state mandates:88904

       (1) The cost to county prosecutors for prosecuting certain88905
felonies that occur on the grounds of state institutions operated88906
by the Department of Rehabilitation and Correction and the88907
Department of Youth Services;88908

       (2) The cost to school districts of in-service training for88909
child abuse detection.88910

       (B) The Division of Criminal Justice Services in the 88911
Department of Public Safety and the Department of Education may 88912
prepare and submit to the Controlling Board one or more requests 88913
to transfer appropriations from appropriation item 911-404, 88914
Mandate Assistance. The state agencies charged with this 88915
administrative responsibility are listed below, as well as the 88916
estimated annual amounts that may be used for each program of 88917
state financial assistance.88918

ADMINISTERING ESTIMATED ANNUAL 88919
PROGRAM AGENCY AMOUNT 88920

Prosecution Costs Division of Criminal $150,000 88921
Justice Services 88922
Child Abuse Detection Training Costs Department of Education $500,000 88923

       (C) Subject to the total amount appropriated in each fiscal88924
year for appropriation item 911-404, Mandate Assistance, the 88925
Division of Criminal Justice Services in the Department of Public 88926
Safety and the Department of Education may request from the 88927
Controlling Board that amounts smaller or larger than these 88928
estimated annual amounts be transferred to each program.88929

       (D) In addition to making the initial transfers requested by88930
the Division of Criminal Justice Services in the Department of 88931
Public Safety and the Department of Education, the Controlling 88932
Board may transfer appropriations received by a state agency under 88933
this section back to appropriation item 911-404, Mandate88934
Assistance, or to the other program of state financial assistance88935
identified under this section.88936

       (E) It is expected that not all costs incurred by local units 88937
of government and school districts under each of the two programs 88938
of state financial assistance identified in this section will be 88939
fully reimbursed by the state. Reimbursement levels may vary by 88940
program and shall be based on: the relationship between the 88941
appropriation transfers requested by the Division of Criminal88942
Justice Services in the Department of Public Safety and the 88943
Department of Education and provided by the Controlling Board for 88944
each of the programs; the rules and procedures established for88945
each program by the administering state agency; and the actual 88946
costs incurred by local units of government and school districts.88947

       (F) Each of these programs of state financial assistance88948
shall be carried out as follows:88949

       (1) PROSECUTION COSTS88950

       (a) Appropriations may be transferred to the Division of88951
Criminal Justice Services in the Department of Public Safety to 88952
cover local prosecution costs for aggravated murder, murder, 88953
felonies of the first degree, and felonies of the second degree 88954
that occur on the grounds of institutions operated by the 88955
Department of Rehabilitation and Correction and the Department of 88956
Youth Services.88957

       (b) Upon a delinquency filing in juvenile court or the return 88958
of an indictment for aggravated murder, murder, or any felony of88959
the first or second degree that was committed at a Department of88960
Youth Services or a Department of Rehabilitation and Correction88961
institution, the affected county may, in accordance with rules88962
that the Division of Criminal Justice Services in the Department 88963
of Public Safety shall adopt, apply to the Division of Criminal 88964
Justice Services for a grant to cover all documented costs that 88965
are incurred by the county prosecutor's office.88966

       (c) Twice each year, the Division of Criminal Justice 88967
Services in the Department of Public Safety shall designate88968
counties to receive grants from those counties that have submitted 88969
one or more applications in compliance with the rules that have 88970
been adopted by the Division of Criminal Justice Services for the 88971
receipt of such grants. In each year's first round of grant 88972
awards, if sufficient appropriations have been made, up to a total 88973
of $100,000 may be awarded. In each year's second round of grant88974
awards, the remaining appropriations available for this purpose88975
may be awarded.88976

       (d) If for a given round of grants there are insufficient88977
appropriations to make grant awards to all the eligible counties,88978
the first priority shall be given to counties with cases involving88979
aggravated murder and murder; second priority shall be given to 88980
counties with cases involving a felony of the first degree; and 88981
third priority shall be given to counties with cases involving a88982
felony of the second degree. Within these priorities, the grant88983
awards shall be based on the order in which the applications were 88984
received, except that applications for cases involving a felony of 88985
the first or second degree shall not be considered in more than 88986
two consecutive rounds of grant awards.88987

       (2) CHILD ABUSE DETECTION TRAINING COSTS88988

       Appropriations may be transferred to the Department of88989
Education for disbursement to local school districts as full or88990
partial reimbursement for the cost of providing in-service88991
training for child abuse detection. In accordance with rules that88992
the department shall adopt, a local school district may apply to88993
the department for a grant to cover all documented costs that are88994
incurred to provide in-service training for child abuse detection.88995
The department shall make grants within the limits of the funding88996
provided.88997

       (G) Any moneys allocated within appropriation item 911-404,88998
Mandate Assistance, not fully utilized may, upon application of88999
the Ohio Public Defender Commission, and with the approval of the89000
Controlling Board, be disbursed to boards of county commissioners89001
to provide additional reimbursement for the costs incurred by 89002
counties in providing defense to indigent defendants pursuant to 89003
Chapter 120. of the Revised Code. Application for the unutilized 89004
funds shall be made by the Ohio Public Defender Commission at the 89005
first June meeting of the Controlling Board.89006

       The amount to be disbursed to each county shall be allocated89007
proportionately on the basis of the total amount of reimbursement 89008
paid to each county as a percentage of the amount of reimbursement 89009
paid to all of the counties during the most recent state fiscal 89010
year for which data is available and as calculated by the Ohio 89011
Public Defender Commission.89012

       BALLOT ADVERTISING COSTS89013

       Pursuant to requests submitted by the Ohio Ballot Board, the89014
Controlling Board shall approve transfers from the foregoing89015
appropriation item 911-441, Ballot Advertising Costs, to an Ohio89016
Ballot Board appropriation item in order to reimburse county89017
boards of elections for the cost of public notices associated with89018
statewide ballot initiatives.89019

       Section 203.84.  COS STATE BOARD OF COSMETOLOGY89020

General Services Fund Group89021

4K9 879-609 Operating Expenses $ 2,929,630 $ 0 89022
TOTAL GSF General Services Fund 89023
Group $ 2,929,630 $ 0 89024
TOTAL ALL BUDGET FUND GROUPS $ 2,929,630 $ 0 89025


       Section 203.87.  CSW COUNSELOR, SOCIAL WORKER, AND MARRIAGE 89027
AND FAMILY THERAPIST BOARD89028

General Services Fund Group89029

4K9 899-609 Operating Expenses $ 1,058,445 $ 0 89030
TOTAL GSF General Services Fund 89031
Group $ 1,058,445 $ 0 89032
TOTAL ALL BUDGET FUND GROUPS $ 1,058,445 $ 0 89033


       Section 203.90. CLA COURT OF CLAIMS89035

General Revenue Fund89036

GRF 015-321 Operating Expenses $ 2,598,040 $ 2,678,331 89037
TOTAL GRF General Revenue Fund $ 2,598,040 $ 2,678,331 89038

State Special Revenue Fund Group89039

5K2 015-603 CLA Victims of Crime $ 1,582,684 $ 1,582,684 89040
TOTAL SSR State Special Revenue 89041
Fund Group $ 1,582,684 $ 1,582,684 89042
TOTAL ALL BUDGET FUND GROUPS $ 4,180,724 $ 4,261,015 89043


       Section 203.91.  AFC OHIO CULTURAL FACILITIES COMMISSION89045

General Revenue Fund89046

GRF 371-321 Operating Expenses $ 198,406 $ 195,707 89047
GRF 371-401 Lease Rental Payments $ 38,126,600 $ 38,246,500 89048
TOTAL GRF General Revenue Fund $ 38,325,006 $ 38,442,207 89049

State Special Revenue Fund Group89050

4T8 371-601 Riffe Theatre Equipment Maintenance $ 81,000 $ 81,000 89051
4T8 371-603 Project Administration $ 920,448 $ 983,295 89052
TOTAL SSR State Special Revenue Group $ 1,001,448 $ 1,064,295 89053
TOTAL ALL BUDGET FUND GROUPS $ 39,326,454 $ 39,506,502 89054

       LEASE RENTAL PAYMENTS89055

       The foregoing appropriation item 371-401, Lease Rental 89056
Payments, shall be used for payments to the Ohio Building89057
Authority and the Treasurer of State for the period from July 1, 89058
2005, to June 30, 2007, under the primary leases and agreements 89059
for those arts and sports facilities made under Chapters 152. and 89060
154. of the Revised Code, but limited to the aggregate amount of 89061
$76,373,100. This appropriation is the source of funds pledged for 89062
bond service charges on related obligations issued pursuant to 89063
Chapter 152. of the Revised Code.89064

       OPERATING EXPENSES89065

       The foregoing appropriation item 371-321, Operating Expenses,89066
shall be used by the Ohio Cultural Facilities Commission to carry 89067
out its responsibilities under this section and Chapter 3383. of 89068
the Revised Code.89069

       By July 10, 2005, or as soon as possible thereafter, the 89070
Director of Budget and Management shall determine the amount of 89071
cash from interest earnings to be transferred from the Ohio 89072
Cultural Facilities Building Fund (Fund 030) to the AFC 89073
Administration Fund (Fund 4T8).89074

       By July 10, 2006, or as soon as possible thereafter, the 89075
Director of Budget and Management shall determine the amount of 89076
cash from interest earnings to be transferred from the Ohio 89077
Cultural Facilities Building Fund (Fund 030) to the AFC 89078
Administration Fund (Fund 4T8).89079

       As soon as possible after each bond issuance made on behalf 89080
of the Cultural Facilities Commission, the Director of Budget and 89081
Management shall determine the amount of cash from any premium 89082
paid on each issuance that is available to be transferred after 89083
all issuance costs have been paid from the Ohio Cultural and 89084
Sports Facilities Building Fund (Fund 030) to the AFC 89085
Administration Fund (Fund 4T8).89086

       Section 203.93.  DEN STATE DENTAL BOARD89087

General Services Fund Group89088

4K9 880-609 Operating Expenses $ 1,424,791 $ 1,424,791 89089
TOTAL GSF General Services Fund 89090
Group $ 1,424,791 $ 1,424,791 89091
TOTAL ALL BUDGET FUND GROUPS $ 1,424,791 $ 1,424,791 89092


       Section 203.96.  BDP BOARD OF DEPOSIT89094

General Services Fund Group89095

4M2 974-601 Board of Deposit $ 1,676,000 $ 1,676,000 89096
TOTAL GSF General Services Fund 89097
Group $ 1,676,000 $ 1,676,000 89098
TOTAL ALL BUDGET FUND GROUPS $ 1,676,000 $ 1,676,000 89099

       BOARD OF DEPOSIT EXPENSE FUND89100

       Upon receiving certification of expenses from the Treasurer89101
of State, the Director of Budget and Management shall transfer89102
cash from the Investment Earnings Redistribution Fund (Fund 608)89103
to the Board of Deposit Expense Fund (Fund 4M2). The latter fund89104
shall be used to pay for banking charges and fees required for the89105
operation of the State of Ohio Regular Account.89106

       Section 203.99. DEV DEPARTMENT OF DEVELOPMENT89107

General Revenue Fund89108

GRF 195-321 Operating Expenses $ 2,738,908 $ 2,723,908 89109
GRF 195-401 Thomas Edison Program $ 17,554,838 $ 17,454,838 89110
GRF 195-404 Small Business Development $ 1,740,722 $ 1,740,722 89111
GRF 195-405 Minority Business Development Division $ 1,580,291 $ 1,580,291 89112
GRF 195-407 Travel and Tourism $ 6,812,845 $ 6,712,845 89113
GRF 195-410 Defense Conversion Assistance $ 300,000 $ 200,000 89114
GRF 195-412 Business Development Grants $ 11,750,000 $ 11,750,000 89115
GRF 195-415 Economic Development Division and Regional Offices $ 5,794,975 $ 5,894,975 89116
GRF 195-416 Governor's Office of Appalachia $ 4,122,372 $ 4,122,372 89117
GRF 195-422 Third Frontier Action Fund $ 16,790,000 $ 16,790,000 89118
GRF 195-426 Clean Ohio Implementation $ 300,000 $ 300,000 89119
GRF 195-432 International Trade $ 4,223,787 $ 4,223,787 89120
GRF 195-434 Investment in Training Grants $ 12,227,500 $ 12,227,500 89121
GRF 195-436 Labor/Management Cooperation $ 811,869 $ 811,869 89122
GRF 195-497 CDBG Operating Match $ 1,040,956 $ 1,040,956 89123
GRF 195-498 State Match Energy $ 94,000 $ 94,000 89124
GRF 195-501 Appalachian Local Development Districts $ 380,080 $ 380,080 89125
GRF 195-502 Appalachian Regional Commission Dues $ 246,803 $ 246,803 89126
GRF 195-507 Travel and Tourism Grants $ 1,287,500 $ 1,162,500 89127
GRF 195-515 Economic Development Contingency $ 10,000,000 $ 0 89128
GRF 195-905 Third Frontier Research & Commercialization General Obligation Debt Service $ 0 $ 13,910,000 89129
TOTAL GRF General Revenue Fund $ 99,797,446 $ 103,367,446 89130

General Services Fund Group89131

135 195-605 Supportive Services $ 7,450,000 $ 7,539,686 89132
5AD 195-667 Investment in Training Expansion $ 5,000,000 $ 5,000,000 89133
5AD 195-668 Worker Guarantee Program $ 3,000,000 $ 3,000,000 89134
5AD 195-677 Economic Development Contingency $ 0 $ 10,000,000 89135
685 195-636 General Reimbursements $ 1,000,000 $ 1,000,000 89136
TOTAL GSF General Services Fund 89137
Group $ 16,450,000 $ 26,539,686 89138

Federal Special Revenue Fund Group89139

3AE 195-643 Workforce Development Initiatives $ 5,800,000 $ 5,800,000 89140
3K8 195-613 Community Development Block Grant $ 65,000,000 $ 65,000,000 89141
3K9 195-611 Home Energy Assistance Block Grant $ 90,500,000 $ 90,500,000 89142
3K9 195-614 HEAP Weatherization $ 16,219,478 $ 16,219,478 89143
3L0 195-612 Community Services Block Grant $ 25,235,000 $ 25,235,000 89144
3V1 195-601 HOME Program $ 40,000,000 $ 40,000,000 89145
308 195-602 Appalachian Regional Commission $ 600,660 $ 600,660 89146
308 195-603 Housing and Urban Development $ 5,000,000 $ 5,000,000 89147
308 195-605 Federal Projects $ 15,300,249 $ 15,300,249 89148
308 195-609 Small Business Administration $ 4,296,381 $ 4,296,381 89149
308 195-618 Energy Federal Grants $ 3,397,659 $ 3,397,659 89150
335 195-610 Oil Overcharge $ 3,000,000 $ 3,000,000 89151
TOTAL FED Federal Special Revenue 89152
Fund Group $ 274,349,427 $ 274,349,427 89153

State Special Revenue Fund Group89154

4F2 195-639 State Special Projects $ 290,183 $ 290,183 89155
4F2 195-676 Promote Ohio $ 5,228,210 $ 5,228,210 89156
4S0 195-630 Enterprise Zone Operating $ 275,000 $ 275,000 89157
4S1 195-634 Job Creation Tax Credit Operating $ 375,800 $ 375,800 89158
4W1 195-646 Minority Business Enterprise Loan $ 2,580,597 $ 2,580,597 89159
444 195-607 Water and Sewer Commission Loans $ 523,775 $ 523,775 89160
450 195-624 Minority Business Bonding Program Administration $ 53,967 $ 53,967 89161
451 195-625 Economic Development Financing Operating $ 2,358,311 $ 2,358,311 89162
5CA 195-678 Shovel Ready Sites $ 5,000,000 $ 5,000,000 89163
5CG 195-679 Alternative Fuel Transportation $ 150,000 $ 150,000 89164
5CV 195-680 Defense Conversion Assistance $ 1,000,000 $ 0 89165
5CY 195-682 Lung Cancer and Lung Disease Research $ 10,000,000 $ 0 89166
5M4 195-659 Universal Service $ 210,000,000 $ 210,000,000 89167
5M5 195-660 Energy Efficiency Loan and Grant $ 12,000,000 $ 12,000,000 89168
5X1 195-651 Exempt Facility Inspection $ 25,000 $ 25,000 89169
611 195-631 Water and Sewer Administration $ 15,713 $ 15,713 89170
617 195-654 Volume Cap Administration $ 200,000 $ 200,000 89171
646 195-638 Low- and Moderate- Income Housing Trust Fund $ 53,000,000 $ 53,000,000 89172
TOTAL SSR State Special Revenue 89173
Fund Group $ 303,076,556 $ 292,076,556 89174

Facilities Establishment Fund Group89175

009 195-664 Innovation Ohio $ 50,000,000 $ 50,000,000 89176
010 195-665 Research and Development $ 50,000,000 $ 50,000,000 89177
037 195-615 Facilities Establishment $ 63,931,149 $ 63,931,149 89178
4Z6 195-647 Rural Industrial Park Loan $ 3,000,000 $ 3,000,000 89179
5D2 195-650 Urban Redevelopment Loans $ 5,475,000 $ 5,475,000 89180
5H1 195-652 Family Farm Loan Guarantee $ 1,000,000 $ 1,000,000 89181
5S8 195-627 Rural Development Initiative $ 3,000,000 $ 3,000,000 89182
5S9 195-628 Capital Access Loan Program $ 3,000,000 $ 3,000,000 89183
TOTAL 037 Facilities 89184
Establishment Fund Group $ 179,406,149 $ 179,406,149 89185

Clean Ohio Revitalization Fund89186

003 195-663 Clean Ohio Operating $ 350,000 $ 350,000 89187
TOTAL 003 Clean Ohio Revitalization Fund $ 350,000 $ 350,000 89188

TOTAL ALL BUDGET FUND GROUPS $ 873,429,578 $ 876,089,264 89189


       Section 203.99.01.  OPERATING EXPENSES89191

       Of the foregoing appropriation item 195-321, Operating 89192
Expenses, $50,000 in fiscal year 2006 and $35,000 in fiscal year 89193
2007 shall be used for Crawford County to hire an employee to act 89194
as a local economic development coordinator for Crawford, Hancock, 89195
Richland, and Marion Counties.89196

       Section 203.99.03. THOMAS EDISON PROGRAM89197

       The foregoing appropriation item 195-401, Thomas Edison89198
Program, shall be used for the purposes of sections 122.28 to89199
122.38 of the Revised Code in order to provide funds for89200
cooperative public and private efforts in technological innovation89201
to promote the development and transfer of technology by and to89202
Ohio businesses that will lead to the creation of jobs, and to89203
provide for the administration of the program by the Technology89204
Division.89205

       Of the foregoing appropriation item 195-401, Thomas Edison89206
Program, not more than $2,000,000 in fiscal year 2006 and89207
$2,300,000 in fiscal year 2007 shall be used for operating 89208
expenditures in administering the programs of the Technology89209
Division.89210

       The Department of Development, in consultation with the Third 89211
Frontier Commission, shall develop a plan providing for 89212
appropriate, value-added participation of Edison Centers and 89213
Incubators in Third Frontier Project proposals and grants.89214

       The Department of Development shall work with Edison Centers 89215
and Incubators and the Third Frontier Network, when appropriate, 89216
to provide for Third Frontier Network connections to Edison 89217
Centers and Incubators and their tenants and, as appropriate, 89218
clients.89219

       Of the foregoing appropriation item 195-401, Thomas Edison 89220
Program, $100,000 in fiscal year 2006 shall be used for technology 89221
recruitment, development, and construction.89222

       Section 203.99.06.  SMALL BUSINESS DEVELOPMENT89223

       The foregoing appropriation item 195-404, Small Business89224
Development, shall be used to ensure that the unique needs and89225
concerns of small businesses are addressed.89226

       The foregoing appropriation item 195-404, Small Business 89227
Development, may be used to provide grants to local organizations 89228
to support the operation of Small Business Development Centers and 89229
other local economic development activity promoting small 89230
business, and for the cost of administering the small business 89231
development center program. The centers shall provide technical,89232
financial, and management consultation for small business and 89233
shall facilitate access to state and federal programs. These funds 89234
shall be used as matching funds for grants from the United States 89235
Small Business Administration and other federal agencies, pursuant 89236
to Public Law No. 96-302 (1980) as amended by Public Law No. 89237
98-395 (1984), and regulations and policy guidelines for the 89238
programs under this law.89239

       In addition, the Office of Small Business may operate the89240
1st-Stop Business Connection and implement and coordinate the 89241
duties imposed on the Department of Development by Am. Sub. S.B. 89242
239 of the 115th General Assembly.89243

       MINORITY BUSINESS DEVELOPMENT DIVISION89244

       Of the foregoing appropriation item 195-405, Minority89245
Business Development Division, up to $1,060,000 but not less than 89246
$954,000 in each fiscal year shall be used to fund minority 89247
contractors and business assistance organizations. The Minority89248
Business Development Division shall determine which cities need 89249
minority contractors and business assistance organizations by 89250
utilizing United States Census Bureau data and zip codes to locate 89251
the highest concentrations of minority businesses. The Minority89252
Business Development Division also shall determine the numbers of89253
minority contractors and business assistance organizations89254
necessary and the amount of funding to be provided each. In89255
addition, the Minority Business Development Division shall89256
continue to plan and implement business conferences.89257

       Section 203.99.09. BUSINESS DEVELOPMENT89258

       The foregoing appropriation item 195-412, Business89259
Development Grants, shall be used as an incentive for attracting89260
and retaining business opportunities for the state. Any such89261
business opportunity, whether new, expanding, or relocating in89262
Ohio, is eligible for funding. The project must create or retain a 89263
significant number of jobs for Ohioans. Grant awards may be89264
considered only when (1) the project's viability hinges on an89265
award of funds from appropriation item 195-412, Business 89266
Development Grants; (2) all other public or private sources of 89267
financing have been considered; or (3) the funds act as a catalyst 89268
for the infusion into the project of other financing sources.89269

       The department's primary goal shall be to award funds to89270
political subdivisions of the state for off-site infrastructure89271
improvements. In order to meet the particular needs of economic89272
development in a region, the department may elect to award funds89273
directly to a business for on-site infrastructure improvements.89274
"Infrastructure improvements" mean improvements to water system89275
facilities, sewer and sewage treatment facilities, electric or gas89276
service facilities, fiber optic facilities, rail facilities, site89277
preparation, and parking facilities. The Director of Development89278
may recommend the funds be used in an alternative manner when89279
considered appropriate to meet an extraordinary economic 89280
development opportunity or need.89281

       The foregoing appropriation item 195-412, Business89282
Development Grants, may be expended only after the submission of a89283
request to the Controlling Board by the Department of Development89284
outlining the planned use of the funds, and the subsequent89285
approval of the request by the Controlling Board.89286

       The foregoing appropriation item 195-412, Business89287
Development Grants, may be used for, but is not limited to,89288
construction, rehabilitation, and acquisition projects for rail89289
freight assistance as requested by the Department of89290
Transportation. The Director of Transportation shall submit the89291
proposed projects to the Director of Development for an evaluation89292
of potential economic benefit.89293

       Section 203.99.12. ECONOMIC DEVELOPMENT DIVISION AND REGIONAL 89294
OFFICES89295

       The foregoing appropriation item 195-415, Economic89296
Development Division and Regional Offices, shall be used for the 89297
operating expenses of the Economic Development Division and the 89298
regional economic development offices and for grants for 89299
cooperative economic development ventures.89300

       Section 203.99.15.  GOVERNOR'S OFFICE OF APPALACHIA89301

       The foregoing appropriation item 195-416, Governor's Office89302
of Appalachia, shall be used for the administrative costs of89303
planning and liaison activities for the Governor's Office of89304
Appalachia. Funds not expended for planning and liaison activities 89305
may be expended for special project grants within the Appalachian 89306
Region.89307

       Of the foregoing appropriation item 195-416, Governor's89308
Office of Appalachia, up to $250,000 each fiscal year shall be89309
used to match federal funds from the Appalachian Regional89310
Commission to provide job training to impact the Appalachian89311
Region.89312

       Of the foregoing appropriation item 195-416, Governor's 89313
Office of Appalachia, up to $4,122,372 in each fiscal year shall 89314
be used in conjunction with other federal and state funds to 89315
provide financial assistance to projects in Ohio's Appalachian 89316
counties in order to further the goals of the Appalachian Regional 89317
Commission. The projects and project sponsors shall meet 89318
Appalachian Regional Commission eligibility requirements. Grants 89319
shall be administered by the Department of Development.89320

       Section 203.99.18. THIRD FRONTIER ACTION FUND89321

       The foregoing appropriation item 195-422, Third Frontier 89322
Action Fund, shall be used to make grants under sections 184.01 89323
and 184.02 of the Revised Code. Prior to the release of funds from 89324
appropriation item 195-422, Third Frontier Action Fund, each grant 89325
award shall be recommended for funding by the Third Frontier 89326
Commission and obtain approval from the Controlling Board.89327

       Of the foregoing appropriation item 195-422, Third Frontier 89328
Action Fund, not more than six per cent in each fiscal year shall 89329
be used for operating expenditures in administering the program.89330

       In addition to the six per cent for operating expenditures,89331
an additional administrative amount, not to exceed $1,500,00089332
within the biennium, shall be available for proposal evaluation, 89333
research and analyses, and marketing efforts considered necessary 89334
to receive and disseminate information about science and 89335
technology-related opportunities in the state.89336

       SCIENCE AND TECHNOLOGY COLLABORATION89337

       The Department of Development shall work in close 89338
collaboration with the Board of Regents, the Air Quality 89339
Development Authority, and the Third Frontier Commission in 89340
relation to appropriation items and programs referred to as 89341
Alignment Programs in the following paragraph, and other 89342
technology-related appropriations and programs in the Department 89343
of Development, Air Quality Development Authority, and the Board 89344
of Regents as these agencies may designate, to ensure 89345
implementation of a coherent state strategy with respect to 89346
science and technology.89347

       "Alignment Programs" means appropriation items 195-401, 89348
Thomas Edison Program; 898-402, Coal Development Office; 195-422, 89349
Third Frontier Action Fund; 898-604, Coal Research and Development 89350
Fund; 235-433, Economic Growth Challenge; 235-508, Air Force 89351
Institute of Technology; 235-510, Ohio Supercomputer Center; 89352
235-451, Eminent Scholars; 235-527, Ohio Aerospace Institute; 89353
235-535, Ohio Agricultural Research and Development Center; 89354
235-553, Dayton Area Graduate Studies Institute; 235-554, 89355
Priorities in Collaborative Graduate Education; 235-556, Ohio 89356
Academic Resources Network; and 195-435, Biomedical Research and 89357
Technology Transfer Trust.89358

       Consistent with the recommendations of the Governor's 89359
Commission on Higher Education and the Economy, Alignment Programs 89360
shall be managed and administered in accordance with the following 89361
objectives: (1) to build on existing competitive research 89362
strengths; (2) to encourage new and emerging discoveries and 89363
commercialization of products and ideas that will benefit the Ohio 89364
economy; (3) and to assure improved collaboration among Alignment 89365
Programs with programs administered by the Third Frontier 89366
Commission and with other state programs that are intended to 89367
improve economic growth and job creation. As directed by the Third 89368
Frontier Commission, Alignment Program managers shall report to 89369
the Commission or the Third Frontier Advisory Board regarding the 89370
contributions of their programs to achieving these objectives.89371

       Each Alignment Program shall be reviewed annually by the 89372
Third Frontier Commission with respect to its development of 89373
complementary relationships within a combined state science and 89374
technology investment portfolio, and with respect to its overall 89375
contribution to the state's science and technology strategy, 89376
including the adoption of appropriately consistent criteria for: 89377
(1) the scientific merit of activities supported by the program; 89378
(2) the relevance of the program's activities to commercial 89379
opportunities in the private sector; (3) the private sector's 89380
involvement in a process that continually evaluates commercial 89381
opportunities to use the work supported by the program; and (4) 89382
the ability of the program and recipients of grant funding from 89383
the program to engage in activities that are collaborative, 89384
complementary, and efficient with respect to the expenditures of 89385
state funds. Each Alignment Program shall provide an annual report 89386
to the Third Frontier Commission that discusses existing, planned, 89387
or possible collaborations between programs and between recipients 89388
of grant funding related to technology, development, 89389
commercialization, and the support of Ohio's economic development. 89390
The annual review conducted by the Third Frontier Commission shall 89391
be a comprehensive review of the entire state science and 89392
technology program portfolio rather than a review of individual 89393
programs.89394

       Applicants for Third Frontier and Alignment Programs funding 89395
shall identify their requirements for high-performance computing 89396
facilities and services, including both hardware and software, in 89397
all proposals. If an applicant's requirements exceed approximately 89398
$100,000 for a proposal, the Ohio Supercomputer Center shall 89399
convene a panel of experts. The panel shall review the proposal to 89400
determine whether the proposal's requirements can be met through 89401
Ohio Supercomputer Center facilities or through other means and 89402
report such information to the Third Frontier Commission.89403

       To ensure that the state receives the maximum benefit from 89404
its investment in the Third Frontier Project and the Third 89405
Frontier Network, organizations receiving Third Frontier awards 89406
and Alignment Programs awards shall, as appropriate, be expected 89407
to have a connection to the Third Frontier Network that enables 89408
them and their collaborators to achieve award objectives through 89409
the Third Frontier Network.89410

       Section 203.99.21.  INTERNATIONAL TRADE89411

       The foregoing appropriation item 195-432, International89412
Trade, shall be used to operate and to maintain Ohio's89413
out-of-state trade offices.89414

       The Director of Development may enter into contracts with89415
foreign nationals to staff foreign offices. The contracts may be89416
paid in local currency or United States currency and shall be89417
exempt from section 127.16 of the Revised Code. The director also 89418
may establish foreign currency accounts under section 122.05 of 89419
the Revised Code for the payment of expenses related to the 89420
operation and maintenance of the foreign trade offices.89421

       The foregoing appropriation item 195-432, International89422
Trade, shall be used to fund the International Trade Division and89423
to assist Ohio manufacturers and agricultural producers in89424
exporting to foreign countries in conjunction with the Department89425
of Agriculture.89426

       Of the foregoing appropriation item 195-432, International89427
Trade, up to $35,000 may be used to purchase gifts for89428
representatives of foreign governments or dignitaries of foreign89429
countries.89430

       Section 203.99.24.  OHIO INVESTMENT IN TRAINING PROGRAM89431

       The foregoing appropriation items 195-434, Investment in89432
Training Grants, and 195-667, Investment in Training Expansion, 89433
shall be used to promote training through grants for the 89434
reimbursement of eligible training expenses.89435

       Section 203.99.27. CDBG OPERATING MATCH89436

       The foregoing appropriation item 195-497, CDBG Operating 89437
Match, shall be used to provide matching funds as requested by the 89438
United States Department of Housing and Urban Development to 89439
administer the federally funded Community Development Block Grant 89440
(CDBG) program.89441

       STATE OPERATING MATCH89442

       The foregoing appropriation item 195-498, State Match Energy, 89443
shall be used to provide matching funds as required by the United 89444
States Department of Energy to administer the federally funded 89445
State Energy Plan.89446

       Section 203.99.30.  TRAVEL AND TOURISM GRANTS89447

       The foregoing appropriation item 195-507, Travel and Tourism89448
Grants, shall be used to provide grants to local organizations to89449
support various local travel and tourism events in Ohio.89450

       Of the foregoing appropriation item 195-507, Travel and 89451
Tourism Grants, $25,000 in each fiscal year shall be used for the 89452
Lorain County Visitors Bureau.89453

       Of the foregoing appropriation item 195-507, Travel and 89454
Tourism Grants, $25,000 in each fiscal year shall be used for the 89455
Sandusky/Erie County Visitors and Convention Bureau.89456

        Of the foregoing appropriation item 195-507, Travel and 89457
Tourism Grants, $25,000 in each fiscal year shall be used for the 89458
Ottawa County Convention and Visitors Bureau.89459

       Of the foregoing appropriation item 195-507, Travel and 89460
Tourism Grants, $50,000 in each fiscal year shall be used for the 89461
Greene County Convention and Visitors Bureau.89462

       Of the foregoing appropriation item 195-507, Travel and 89463
Tourism Grants, $45,000 in each fiscal year shall be used for the 89464
Warren County Convention and Visitors Bureau.89465

       Of the foregoing appropriation item 195-507, Travel and 89466
Tourism Grants, $25,000 in each fiscal year shall be used for 89467
grants to the Wood County Economic Development Commission.89468

       Of the foregoing appropriation item 195-507, Travel and 89469
Tourism Grants, $50,000 in each fiscal year shall be used for the 89470
Wright Dunbar Historical Site.89471

       Of the foregoing appropriation item 195-507, Travel and 89472
Tourism Grants, up to $120,000 in each fiscal year may be used to 89473
support the outdoor dramas "Trumpet in the Land," "Blue Jacket," 89474
and "Tecumseh!".89475

       Of the foregoing appropriation item 195-507, Travel and 89476
Tourism Grants, $40,000 in each fiscal year shall be used for the 89477
Cincinnati Film Commission and $40,000 in each fiscal year shall 89478
be used for the Cleveland Film Commission.89479

       Of the foregoing appropriation item 195-507, Travel and 89480
Tourism Grants, $100,000 in each fiscal year shall be used for the 89481
Cleveland Institute of Art.89482

       Of the foregoing appropriation item 195-507, Travel and 89483
Tourism Grants, up to $500,000 in each fiscal year shall be used 89484
for grants to The International Center for the Preservation of 89485
Wild Animals.89486

       Of the foregoing appropriation item 195-507, Travel and 89487
Tourism Grants, $50,000 in each fiscal year shall be used for the 89488
Lake Shore Railway Association, Inc.89489

       Of the foregoing appropriation item 195-507, Travel and 89490
Tourism Grants, $50,000 in each fiscal year shall be used for the 89491
Ohio River Trails program.89492

       Of the foregoing appropriation item 195-507, Travel and 89493
Tourism Grants, $12,500 in each fiscal year shall be used for the 89494
Morgan County Community Improvement Corporation.89495

       Of the foregoing appropriation item 195-507, Travel and 89496
Tourism Grants, $25,000 in fiscal year 2006 shall be used for the 89497
Ohio Buckeye Junior Hereford Association.89498

       Of the foregoing appropriation item 195-507, Travel and 89499
Tourism Grants, $100,000 in fiscal year 2006 shall be used for 89500
grants to the NCR U.S. Senior Open.89501

       Of the foregoing appropriation item 195-507, Travel and 89502
Tourism Grants, $5,000 in each fiscal year shall be used for the 89503
Canton Football Hall of Fame.89504

       Section 203.99.33. THIRD FRONTIER RESEARCH & 89505
COMMERCIALIZATION GENERAL OBLIGATION DEBT SERVICE89506

       The foregoing appropriation item 195-905, Third Frontier 89507
Research & Commercialization General Obligation Debt Service, 89508
shall be used to pay all debt service and related financing costs 89509
during the period from July 1, 2005, to June 30, 2007, on 89510
obligations to be issued for research and development purposes, as 89511
authorized by the Ohio Constitution and implementing statutes. The 89512
Office of the Sinking Fund or the Director of Budget and 89513
Management shall effectuate the required payments by intrastate 89514
transfer voucher.89515

       Section 203.99.36. SUPPORTIVE SERVICES89516

       The Director of Development may assess divisions of the89517
department for the cost of central service operations. An89518
assessment shall be based on a plan submitted to and approved by89519
the Office of Budget and Management by August 1, 2005, and shall 89520
contain the characteristics of administrative ease and uniform 89521
application.89522

       A division's payments shall be credited to the Supportive89523
Services Fund (Fund 135) using an intrastate transfer voucher.89524

       GENERAL REIMBURSEMENT89525

       The foregoing appropriation item 195-636, General89526
Reimbursements, shall be used for conference and subscription fees89527
and other reimbursable costs. Revenues to the General89528
Reimbursement Fund (Fund 685) shall consist of fees and other89529
moneys charged for conferences, subscriptions, and other89530
administrative costs that are not central service costs.89531

       WORKER GUARANTEE PROGRAM89532

       The foregoing appropriation item 195-668, Worker Guarantee 89533
Program, shall be used for the Worker Guarantee Program. 89534

        Benefited employers must create at least 100 high-paying, 89535
full-time jobs over a three-year period and must demonstrate prior 89536
to the commitment of state funds that the availability of those 89537
skilled workers is a major factor in the employer's decision to 89538
locate or expand in Ohio. Activities eligible for funding through 89539
the Worker Guarantee Program include job assessment services, 89540
screening and testing of potential employees, customized training 89541
activities, and any other training or related service determined 89542
by the Director.89543

       A local workforce development service provider may include, 89544
but is not limited to, a community college, technical or 89545
vocational school, one-stop center, or any other entity designated 89546
by the Director of Development to provide services under the 89547
program.89548

       State matching funds totaling one-third of a project's cost 89549
shall be provided for each approved project when an employer and 89550
any local workforce development service provider, in conjunction 89551
with the local community, contracts with the Department of 89552
Development to provide services under the program. The employer 89553
and the local community each shall provide matching funds totaling 89554
one-third of a project's cost, and each portion of the matching 89555
funds shall be equal to state funding, which also shall be 89556
one-third of a project's cost.89557

       The state shall count in-kind contributions when determining 89558
a contribution from entities associated with the local community.89559

       The Director of Development, under Chapter 119. of the 89560
Revised Code, shall adopt, and may amend or rescind, rules the 89561
Director finds necessary for the implementation and successful 89562
operation of the Worker Guarantee Program.89563

       Section 203.99.37. TRAINING SERVICES89564

        Of the foregoing appropriation item 195-605, Federal 89565
Projects, $400,000 in each fiscal year shall be used for grants to 89566
the Ohio Weatherization Training Center, administered by the 89567
Corporation for Ohio Appalachian Development, for training and 89568
technical assistance services.89569

       Section 203.99.39. HEAP WEATHERIZATION89570

       Fifteen per cent of the federal funds received by the state89571
for the Home Energy Assistance Block Grant shall be deposited in 89572
appropriation item 195-614, HEAP Weatherization (Fund 3K9), and 89573
shall be used to provide home weatherization services in the 89574
state.89575

       Of the foregoing appropriation item 195-614, HEAP 89576
Weatherization, $200,000 in each fiscal year shall be used for 89577
grants to the Ohio Weatherization Training Center, administered by 89578
the Corporation for Ohio Appalachian Development, for training and 89579
technical assistance services.89580

       STATE SPECIAL PROJECTS89581

       The foregoing fund, Fund 4F2, State Special Projects, shall 89582
be used for the deposit of private-sector funds from utility 89583
companies and for the deposit of other miscellaneous state funds. 89584
Private-sector moneys shall be used to (1) pay the expenses of 89585
verifying the income-eligibility of HEAP applicants, (2) market 89586
economic development opportunities in the state, and (3) leverage 89587
additional federal funds. State funds shall be used to match 89588
federal housing grants for the homeless and to market economic 89589
development opportunities in the state.89590

       Section 203.99.42.  MINORITY BUSINESS ENTERPRISE LOAN89591

       All repayments from the Minority Development Financing89592
Advisory Board Loan Program and the Ohio Mini-Loan Guarantee89593
Program shall be deposited in the State Treasury to the credit of89594
the Minority Business Enterprise Loan Fund (Fund 4W1).89595

       All operating costs of administering the Minority Business89596
Enterprise Loan Fund shall be paid from the Minority Business89597
Enterprise Loan Fund (Fund 4WI).89598

       MINORITY BUSINESS BONDING FUND89599

       Notwithstanding Chapters 122., 169., and 175. of the Revised89600
Code and other provisions of Am. Sub. H.B. 283 of the 123rd89601
General Assembly, the Director of Development may, upon the89602
recommendation of the Minority Development Financing Advisory89603
Board, pledge up to $10,000,000 in the FY 2006-2007 biennium of89604
unclaimed funds administered by the Director of Commerce and89605
allocated to the Minority Business Bonding Program under section 89606
169.05 of the Revised Code. The transfer of any cash by the 89607
Director of Budget and Management from the Department of89608
Commerce's Unclaimed Funds Fund (Fund 543) to the Department of89609
Development's Minority Business Bonding Fund (Fund 449) shall89610
occur, if requested by the Director of Development, only if such89611
funds are needed for payment of losses arising from the Minority89612
Business Bonding Program, and only after proceeds of the initial89613
transfer of $2,700,000 by the Controlling Board to the Minority89614
Business Bonding Program has been used for that purpose. Moneys89615
transferred by the Director of Budget and Management from the89616
Department of Commerce for this purpose may be moneys in custodial89617
funds held by the Treasurer of State. If expenditures are required 89618
for payment of losses arising from the Minority Business Bonding 89619
Program, such expenditures shall be made from appropriation item 89620
195-623, Minority Business Bonding Contingency in the Minority 89621
Business Bonding Fund, and such amounts are appropriated.89622

       Section 203.99.45. ECONOMIC DEVELOPMENT FINANCING OPERATING89623

       The foregoing appropriation item 195-625, Economic89624
Development Financing Operating, shall be used for the operating89625
expenses of financial assistance programs authorized under Chapter89626
166. of the Revised Code and under sections 122.43 and 122.45 of89627
the Revised Code.89628

       VOLUME CAP ADMINISTRATION89629

       The foregoing appropriation item 195-654, Volume Cap89630
Administration, shall be used for expenses related to the89631
administration of the Volume Cap Program. Revenues received by the 89632
Volume Cap Administration Fund (Fund 617) shall consist of89633
application fees, forfeited deposits, and interest earned from the89634
custodial account held by the Treasurer of State.89635

       UNIVERSAL SERVICE FUND89636

       The foregoing appropriation item 195-659, Universal Service,89637
shall be used to provide payments to regulated electric utility 89638
companies for low-income customers enrolled in Percentage of 89639
Income Payment Plan (PIPP) electric accounts, to fund targeted 89640
energy efficiency and customer education services to PIPP 89641
customers, and to cover the department's administrative costs89642
related to Universal Service Fund Programs.89643

       SHOVEL READY SITES89644

       The foregoing appropriation item 195-678, Shovel Ready Sites, 89645
shall be used to administer the Shovel Ready Sites Program under 89646
section 122.083 of the Revised Code.89647

       ALTERNATIVE FUEL TRANSPORTATION89648

       The foregoing appropriation item 195-679, Alternative Fuel 89649
Transportation, shall be used by the Director of Development to 89650
make grants under the Alternative Fuel Transportation Grant Fund 89651
Program in accordance with section 122.075 of the Revised Code, 89652
and for administrative costs associated with the program.89653

       TRANSFER OF UNCLAIMED FUNDS TO THE DEFENSE CONVERSION 89654
ASSISTANCE FUND FOR BASE REALIGNMENT AND CLOSURE GRANTS89655

       (A) There is hereby created in the State Treasury the Defense 89656
Conversion Assistance Fund (Fund 5CV). The fund shall consist of 89657
all cash deposited to it pursuant to division (C) of this section.89658

       (B) The foregoing appropriation item 195-680, Defense 89659
Conversion Assistance, shall be used by the Director of 89660
Development to provide grants to local communities for costs 89661
associated with the preparation and redevelopment of military 89662
installations in Ohio that are slated for realignment or closure 89663
under the United States Department of Defense Base Realignment and 89664
Closure Program.89665

       (C) Notwithstanding division (A) of section 169.05 of the 89666
Revised Code, upon the request of the Director of Budget and 89667
Management, the Director of Commerce, prior to June 30, 2006, 89668
shall transfer to the Defense Conversion Assistance Fund (Fund 89669
5CV) $1,000,000 of the unclaimed funds that have been reported by 89670
the holders of unclaimed funds under section 169.05 of the Revised 89671
Code regardless of the allocation of the unclaimed funds described 89672
in that section.89673

       (D) On or before June 30, 2006, the unencumbered balance of 89674
the foregoing appropriation item 195-680, Defense Conversion 89675
Assistance, for fiscal year 2006 is hereby appropriated for the 89676
same purpose for fiscal year 2007.89677

       LUNG CANCER AND LUNG DISEASE RESEARCH89678

       The foregoing appropriation item 195-682, Lung Cancer and 89679
Lung Disease Research, shall be used by the Director of 89680
Development to promote lung cancer and lung disease research.89681

       ENERGY EFFICIENCY REVOLVING LOAN FUND89682

       The foregoing appropriation item 195-660, Energy Efficiency 89683
Loan and Grant, shall be used to provide financial assistance to89684
customers for eligible energy efficiency projects for residential,89685
commercial and industrial business, local government, educational89686
institution, nonprofit, and agriculture customers, and to pay for89687
the program's administrative costs as provided in the Revised Code89688
and rules adopted by the Director of Development.89689

       TRANSFER FROM THE ENERGY EFFICIENCY REVOLVING LOAN FUND TO 89690
THE INDUSTRIAL SITE IMPROVEMENTS FUND89691

        Notwithstanding Chapters 122. and 4928. of the Revised Code 89692
and any other law to the contrary, the Director of Budget and 89693
Management shall transfer $2,500,000 in cash in fiscal year 2006 89694
and $2,500,000 in cash in fiscal year 2007 from the Energy 89695
Efficiency Revolving Loan Fund (Fund 5M5) to the Industrial Site 89696
Improvements Fund (Fund 5AR).89697

        Moneys in Fund 5AR, Industrial Site Improvements, shall be 89698
used by the Director of Development to make grants to eligible 89699
counties for the improvement of commercial or industrial areas 89700
within those counties under section 122.951 of the Revised Code.89701

       TRANSFER FROM THE ENERGY EFFICIENCY REVOLVING LOAN FUND TO 89702
THE RAIL TRANSLOAD FACILITIES FUND89703

       Notwithstanding Chapters 122. and 4928. of the Revised Code 89704
and any other law to the contrary, the Director of Budget and 89705
Management shall transfer $500,000 in cash in fiscal year 2006 89706
from the Energy Efficiency Revolving Loan Fund (Fund 5M5) in the 89707
Department of Development to the Rail Transload Facilities Fund 89708
(Fund 5CF) in the Department of Transportation.89709

       TRANSFER FROM THE ENERGY EFFICIENCY REVOLVING LOAN FUND TO 89710
THE ALTERNATIVE FUEL TRANSPORTATION GRANT FUND89711

       Notwithstanding Chapter 4928. of the Revised Code and any 89712
other law to the contrary, the Director of Budget and Management 89713
shall transfer $150,000 in cash in fiscal year 2006 and $150,000 89714
in cash in fiscal year 2007 from the Energy Efficiency Revolving 89715
Loan Fund (Fund 5M5) to the Alternative Fuel Transportation Grant 89716
Fund (Fund 5CG).89717

       GLOBAL ANALYST SETTLEMENT AGREEMENTS PAYMENTS89718

       All payments received by the state pursuant to a series of 89719
settlements with ten brokerage firms reached with the United 89720
States Securities and Exchange Commission, the National 89721
Association of Securities Dealers, the New York Stock Exchange, 89722
the New York Attorney General, and other state regulators 89723
(henceforth referred to as the "Global Analysts Settlement 89724
Agreements"), shall be deposited into the state treasury to the 89725
credit of the Economic Development Contingency Fund (Fund 5Y6), 89726
which is hereby created in the state treasury. The fund shall be 89727
used by the Director of Development to support economic 89728
development projects for which appropriations would not otherwise 89729
be available, and shall be subject to the submission of a request 89730
to the Controlling Board by the Director outlining the planned use 89731
of the funds, and the subsequent approval of the request by the 89732
Controlling Board.89733

       Section 203.99.46. TRANSFER FROM THE LOW- AND MODERATE-INCOME 89734
HOUSING TRUST FUND TO THE RESIDENTIAL STATE SUPPLEMENT FUND89735

        Notwithstanding Chapter 175. of the Revised Code and any 89736
other law to the contrary, the Director of Budget and Management 89737
shall transfer $1,500,000 in cash in fiscal year 2006 and 89738
$1,500,000 in cash in fiscal year 2007 from the Low- and 89739
Moderate-Income Housing Trust Fund (Fund 646) in the Department of 89740
Development to the Residential State Supplement Fund (Fund 5CH) in 89741
the Department of Mental Health.89742

       Section 203.99.48.  FACILITIES ESTABLISHMENT FUND89743

       The foregoing appropriation item 195-615, Facilities89744
Establishment (Fund 037), shall be used for the purposes of the89745
Facilities Establishment Fund under Chapter 166. of the Revised89746
Code.89747

       Notwithstanding Chapter 166. of the Revised Code, up to89748
$1,800,000 in cash each fiscal year may be transferred from the89749
Facilities Establishment Fund (Fund 037) to the Economic89750
Development Financing Operating Fund (Fund 451). The transfer is89751
subject to Controlling Board approval under division (B) of 89752
section 166.03 of the Revised Code.89753

       Notwithstanding Chapter 166. of the Revised Code, up to 89754
$5,000,000 in cash each fiscal year may be transferred from the 89755
Facilities Establishment Fund (Fund 037) to the Shovel Ready Sites 89756
Fund (Fund 5CA). The transfer is subject to Controlling Board 89757
approval under division (B) of section 166.03 of the Revised Code.89758

       Notwithstanding Chapter 166. of the Revised Code, up to89759
$10,950,000 in cash may be transferred during the biennium from 89760
the Facilities Establishment Fund (Fund 037) to the Urban89761
Redevelopment Loans Fund (Fund 5D2) for the purpose of removing89762
barriers to urban core redevelopment. The Director of Development89763
shall develop program guidelines for the transfer and release of89764
funds, including, but not limited to, the completion of all89765
appropriate environmental assessments before state assistance is89766
committed to a project.89767

       Notwithstanding Chapter 166. of the Revised Code, up to89768
$3,000,000 each fiscal year in cash may be transferred from the89769
Facilities Establishment Fund (Fund 037) to the Rural Industrial89770
Park Loan Fund (Fund 4Z6). The transfer is subject to Controlling89771
Board approval under section 166.03 of the Revised Code.89772

       FAMILY FARM LOAN PROGRAM89773

       Notwithstanding Chapter 166. of the Revised Code, up to89774
$1,000,000 in each fiscal year shall be transferred from moneys in89775
the Facilities Establishment Fund (Fund 037) to the Family Farm89776
Loan Guarantee Fund (Fund 5H1) in the Department of Development. 89777
The moneys shall be used for loan guarantees. The transfer is 89778
subject to Controlling Board approval.89779

       Financial assistance from the Family Farm Loan Guarantee Fund 89780
(Fund 5H1) shall be repaid to Fund 5H1. This fund is established 89781
under sections 166.031, 901.80, 901.81, 901.82, and 901.83 of the89782
Revised Code.89783

       When the Family Farm Loan Guarantee Fund (Fund 5H1) ceases to 89784
exist, all outstanding balances, all loan repayments, and any89785
other outstanding obligations shall revert to the Facilities89786
Establishment Fund (Fund 037).89787

       RURAL DEVELOPMENT INITIATIVE FUND89788

       (A)(1) The Rural Development Initiative Fund (Fund 5S8) is 89789
entitled to receive moneys from the Facilities Establishment Fund 89790
(Fund 037). The Director of Development may make grants from the 89791
Rural Development Initiative Fund as specified in division (A)(2) 89792
of this section to eligible applicants in Appalachian counties and 89793
in rural counties in the state that are designated as distressed 89794
under section 122.25 of the Revised Code. Preference shall be 89795
given to eligible applicants located in Appalachian counties 89796
designated as distressed by the federal Appalachian Regional 89797
Commission. The Rural Development Initiative Fund (Fund 5S8) shall 89798
cease to exist after June 30, 2007. All moneys remaining in the 89799
Fund after that date shall revert to the Facilities Establishment 89800
Fund (Fund 037).89801

       (2) The Director of Development shall make grants from the89802
Rural Development Initiative Fund (Fund 5S8) only to eligible 89803
applicants who also qualify for and receive funding under the 89804
Rural Industrial Park Loan Program as specified in sections 122.23 89805
to 122.27 of the Revised Code. Eligible applicants shall use the 89806
grants for the purposes specified in section 122.24 of the Revised 89807
Code. All projects supported by grants from the fund are subject 89808
to Chapter 4115. of the Revised Code as specified in division (E) 89809
of section 166.02 of the Revised Code. The Director shall develop 89810
program guidelines for the transfer and release of funds. The 89811
release of grant moneys to an eligible applicant is subject to 89812
Controlling Board approval.89813

       (B) Notwithstanding Chapter 166. of the Revised Code, the89814
Director of Budget and Management may transfer up to $3,000,00089815
each fiscal year in cash on an as needed basis at the request of89816
the Director of Development from the Facilities Establishment Fund89817
(Fund 037) to the Rural Development Initiative Fund (Fund 5S8).89818
The transfer is subject to Controlling Board approval under89819
section 166.03 of the Revised Code.89820

       CAPITAL ACCESS LOAN PROGRAM89821

       The foregoing appropriation item 195-628, Capital Access Loan89822
Program, shall be used for operating, program, and administrative89823
expenses of the program. Funds of the Capital Access Loan Program 89824
shall be used to assist participating financial institutions in 89825
making program loans to eligible businesses that face barriers in 89826
accessing working capital and obtaining fixed asset financing.89827

       Notwithstanding Chapter 166. of the Revised Code, the89828
Director of Budget and Management may transfer up to $3,000,00089829
each fiscal year in cash on an as needed basis at the request of89830
the Director of Development from the Facilities Establishment Fund89831
(Fund 037) to the Capital Access Loan Program Fund (Fund 5S9). The89832
transfer is subject to Controlling Board approval under section 89833
166.03 of the Revised Code.89834

        INNOVATION OHIO LOAN FUND89835

        The foregoing appropriation item 195-664, Innovation Ohio, 89836
shall be used to provide for innovation Ohio purposes, including 89837
loan guarantees and loans under Chapter 166. and particularly 89838
sections 166.12 to 166.16 of the Revised Code.89839

       RESEARCH AND DEVELOPMENT89840

       The foregoing appropriation item 195-665, Research and 89841
Development, shall be used to provide for research and development 89842
purposes, including loans, under Chapter 166. and particularly 89843
sections 166.17 to 166.21 of the Revised Code.89844

       Section 203.99.51. CLEAN OHIO OPERATING EXPENSES89845

       The foregoing appropriation item 195-663, Clean Ohio 89846
Operating, shall be used by the Department of Development in 89847
administering sections 122.65 to 122.658 of the Revised Code.89848

       Section 203.99.54. UNCLAIMED FUNDS TRANSFER89849

       (A) Notwithstanding division (A) of section 169.05 of the 89850
Revised Code, upon the request of the Director of Budget and 89851
Management, the Director of Commerce, prior to June 30, 2006, 89852
shall transfer to the Job Development Initiatives Fund (Fund 5AD) 89853
up to $8,000,000 of the unclaimed funds that have been reported by 89854
the holders of unclaimed funds under section 169.05 of the Revised 89855
Code, regardless of the allocation of the unclaimed funds 89856
described under that section.89857

       Notwithstanding division (A) of section 169.05 of the Revised 89858
Code, upon the request of the Director of Budget and Management, 89859
the Director of Commerce, prior to June 30, 2007, shall transfer 89860
to the Job Development Initiatives Fund (Fund 5AD) up to 89861
$18,000,000 of the unclaimed funds that have been reported by the 89862
holders of unclaimed funds under section 169.05 of the Revised 89863
Code, regardless of the allocation of the unclaimed funds 89864
described under that section.89865

       (B) Notwithstanding division (A) of section 169.05 of the 89866
Revised Code, upon the request of the Director of Budget and 89867
Management, the Director of Commerce, prior to June 30, 2006, 89868
shall transfer to the State Special Projects Fund (Fund 4F2) up to 89869
$5,228,210 of the unclaimed funds that have been reported by the 89870
holders of unclaimed funds under section 169.05 of the Revised 89871
Code, regardless of the allocation of the unclaimed funds 89872
described under that section.89873

       Notwithstanding division (A) of section 169.05 of the Revised 89874
Code, upon the request of the Director of Budget and Management, 89875
the Director of Commerce, prior to June 30, 2007, shall transfer 89876
to the State Special Projects Fund (Fund 4F2) up to $5,228,210 of 89877
the unclaimed funds that have been reported by the holders of 89878
unclaimed funds under section 169.05 of the Revised Code, 89879
regardless of the allocation of the unclaimed funds described 89880
under that section.89881

       Section 206.03.  OBD OHIO BOARD OF DIETETICS89882

General Services Fund Group89883

4K9 860-609 Operating Expenses $ 332,495 $ 0 89884
TOTAL GSF General Services Fund 89885
Group $ 332,495 $ 0 89886
TOTAL ALL BUDGET FUND GROUPS $ 332,495 $ 0 89887


       Section 206.06. CDR COMMISSION ON DISPUTE RESOLUTION AND 89889
CONFLICT MANAGEMENT89890

General Revenue Fund89891

GRF 145-401 Commission on Dispute Resolution/Management $ 470,000 $ 470,000 89892
TOTAL GRF General Revenue Fund $ 470,000 $ 470,000 89893

General Services Fund Group89894

4B6 145-601 Gifts and Grants $ 140,000 $ 140,000 89895
TOTAL GSF General Services Fund Group $ 140,000 $ 140,000 89896

Federal Special Revenue Fund Group89897

3S6 145-602 Dispute Resolution: Federal $ 140,000 $ 140,000 89898
TOTAL FED Federal Special Revenue Fund Group $ 140,000 $ 140,000 89899
TOTAL ALL BUDGET FUND GROUPS $ 750,000 $ 750,000 89900


       Section 206.09. EDU DEPARTMENT OF EDUCATION89902

General Revenue Fund89903

GRF 200-100 Personal Services $ 9,880,406 $ 10,880,655 89904
GRF 200-320 Maintenance and Equipment $ 4,344,235 $ 4,344,235 89905
GRF 200-408 Early Childhood Education $ 19,002,195 $ 19,002,195 89906
GRF 200-410 Educator Training $ 19,302,057 $ 19,802,057 89907
GRF 200-416 Career-Technical Education Match $ 2,233,195 $ 2,233,195 89908
GRF 200-420 Computer/Application/ Network Development $ 5,361,525 $ 5,361,525 89909
GRF 200-421 Alternative Education Programs $ 13,907,665 $ 13,732,665 89910
GRF 200-422 School Management Assistance $ 2,683,208 $ 2,710,572 89911
GRF 200-424 Policy Analysis $ 556,687 $ 556,687 89912
GRF 200-425 Tech Prep Consortia Support $ 2,069,217 $ 2,069,217 89913
GRF 200-426 Ohio Educational Computer Network $ 30,446,197 $ 30,446,197 89914
GRF 200-427 Academic Standards $ 11,607,753 $ 11,679,181 89915
GRF 200-431 School Improvement Initiatives $ 21,813,649 $ 23,842,828 89916
GRF 200-433 Reading/Writing Improvement-Professional Development $ 16,165,000 $ 16,165,000 89917
GRF 200-437 Student Assessment $ 54,445,234 $ 60,011,935 89918
GRF 200-439 Accountability/Report Cards $ 3,878,850 $ 7,457,290 89919
GRF 200-442 Child Care Licensing $ 1,302,495 $ 1,302,495 89920
GRF 200-445 OhioReads Volunteer Support $ 3,905,000 $ 3,905,000 89921
GRF 200-446 Education Management Information System $ 15,674,805 $ 15,674,805 89922
GRF 200-447 GED Testing $ 1,544,360 $ 1,544,360 89923
GRF 200-448 Educator Preparation $ 1,651,000 $ 1,651,000 89924
GRF 200-455 Community Schools $ 2,942,094 $ 2,942,094 89925
GRF 200-502 Pupil Transportation $ 412,330,728 $ 420,577,343 89926
GRF 200-503 Bus Purchase Allowance $ 8,600,000 $ 14,000,000 89927
GRF 200-505 School Lunch Match $ 8,998,025 $ 8,998,025 89928
GRF 200-509 Adult Literacy Education $ 8,669,738 $ 8,669,738 89929
GRF 200-511 Auxiliary Services $ 127,903,356 $ 127,903,356 89930
GRF 200-514 Postsecondary Adult Career-Technical Education $ 19,481,875 $ 19,481,875 89931
GRF 200-521 Gifted Pupil Program $ 46,910,068 $ 47,157,293 89932
GRF 200-532 Nonpublic Administrative Cost Reimbursement $ 56,762,916 $ 58,068,463 89933
GRF 200-540 Special Education Enhancements $ 134,169,606 $ 135,430,125 89934
GRF 200-545 Career-Technical Education Enhancements $ 10,169,442 $ 9,225,569 89935
GRF 200-550 Foundation Funding $ 5,579,031,663 $ 5,709,057,366 89936
GRF 200-558 Emergency Loan Interest Subsidy $ 1,388,164 $ 651,404 89937
GRF 200-566 Reading/Writing Improvement-Classroom Grants $ 12,062,336 $ 12,062,336 89938
GRF 200-578 Safe and Supportive Schools $ 1,218,555 $ 1,218,555 89939
GRF 200-901 Property Tax Allocation - Education $ 764,626,987 $ 728,793,318 89940
GRF 200-906 Tangible Tax Exemption - Education $ 42,830,487 $ 32,122,865 89941
TOTAL GRF General Revenue Fund $ 7,479,870,773 $ 7,590,732,819 89942

General Services Fund Group89943

138 200-606 Computer Services-Operational Support $ 7,600,091 $ 7,600,091 89944
4D1 200-602 Ohio Prevention/Education Resource Center $ 832,000 $ 832,000 89945
4L2 200-681 Teacher Certification and Licensure $ 5,497,158 $ 5,628,332 89946
452 200-638 Miscellaneous Educational Services $ 400,000 $ 400,000 89947
5H3 200-687 School District Solvency Assistance $ 18,000,000 $ 18,000,000 89948
596 200-656 Ohio Career Information System $ 529,761 $ 529,761 89949
TOTAL GSF General Services 89950
Fund Group $ 32,859,010 $ 32,990,184 89951

Federal Special Revenue Fund Group89952

3AF 200-603 Schools Medicaid Administrative Claims $ 1,000,000 $ 1,000,000 89953
3C5 200-661 Early Childhood Education $ 23,874,338 $ 23,874,338 89954
3D1 200-664 Drug Free Schools $ 13,347,966 $ 13,347,966 89955
3D2 200-667 Honors Scholarship Program $ 5,812,903 $ 5,833,965 89956
3H9 200-605 Head Start Collaboration Project $ 275,000 $ 275,000 89957
3L6 200-617 Federal School Lunch $ 220,256,132 $ 227,583,653 89958
3L7 200-618 Federal School Breakfast $ 56,382,851 $ 58,405,608 89959
3L8 200-619 Child/Adult Food Programs $ 66,590,622 $ 67,915,843 89960
3L9 200-621 Career-Technical Education Basic Grant $ 48,029,701 $ 48,029,701 89961
3M0 200-623 ESEA Title 1A $ 440,260,178 $ 461,026,070 89962
3M1 200-678 Innovative Education $ 11,800,000 $ 11,800,000 89963
3M2 200-680 Individuals with Disabilities Education Act $ 513,058,569 $ 605,581,547 89964
3S2 200-641 Education Technology $ 20,800,000 $ 20,800,000 89965
3T4 200-613 Public Charter Schools $ 22,000,000 $ 22,000,000 89966
3U2 200-662 Teacher Quality Enhancement Grants $ 795,280 $ 795,280 89967
3X5 200-684 School Renovation/IDEA $ 2,200,000 $ 0 89968
3Y2 200-688 21st Century Community Learning Centers $ 30,681,554 $ 30,681,554 89969
3Y4 200-632 Reading First $ 50,775,637 $ 31,215,798 89970
3Y5 200-634 Community Service Grants $ 1,000,000 $ 0 89971
3Y6 200-635 Improving Teacher Quality $ 107,000,000 $ 107,000,000 89972
3Y7 200-689 English Language Acquisition $ 8,500,000 $ 9,000,000 89973
3Y8 200-639 Rural and Low Income $ 1,700,000 $ 1,700,000 89974
3Z2 200-690 State Assessments $ 12,681,031 $ 12,883,799 89975
3Z3 200-645 Consolidated USDE Administration $ 9,200,000 $ 9,200,000 89976
309 200-601 Educationally Disadvantaged $ 19,658,846 $ 19,658,846 89977
366 200-604 Adult Basic Education $ 18,500,000 $ 18,500,000 89978
367 200-607 School Food Services $ 11,383,637 $ 11,666,732 89979
368 200-614 Veterans' Training $ 672,961 $ 691,130 89980
369 200-616 Career-Technical Education Federal Enhancement $ 6,500,000 $ 6,500,000 89981
370 200-624 Education of Exceptional Children $ 2,386,610 $ 2,386,610 89982
371 200-631 Immigrant Education Opportunities $ 400,000 $ 400,000 89983
374 200-647 Troops to Teachers $ 1,600,000 $ 0 89984
378 200-660 Learn and Serve $ 1,200,000 $ 1,200,000 89985
TOTAL FED Federal Special 89986
Revenue Fund Group $ 1,730,323,816 $ 1,830,953,440 89987

State Special Revenue Fund Group89988

4R7 200-695 Indirect Operational Support $ 5,382,864 $ 5,449,748 89989
4V7 200-633 Interagency Operational Support $ 500,000 $ 500,000 89990
454 200-610 Guidance and Testing $ 400,000 $ 400,000 89991
455 200-608 Commodity Foods $ 24,000,000 $ 24,000,000 89992
5BB 200-696 State Action for Education Leadership $ 1,200,000 $ 1,200,000 89993
5BJ 200-626 Half-Mill Maintenance Equalization $ 0 $ 10,700,000 89994
5U2 200-685 National Education Statistics $ 300,000 $ 300,000 89995
5W2 200-663 Early Learning Initiative $ 106,580,000 $ 127,456,000 89996
598 200-659 Auxiliary Services Reimbursement $ 1,328,910 $ 1,328,910 89997
620 200-615 Educational Improvement Grants $ 1,000,000 $ 1,000,000 89998
TOTAL SSR State Special Revenue 89999
Fund Group $ 140,691,774 $ 172,334,658 90000

Lottery Profits Education Fund Group90001

017 200-612 Foundation Funding $ 606,208,300 $ 606,296,800 90002
017 200-682 Lease Rental Payment Reimbursement $ 31,691,700 $ 31,603,200 90003
TOTAL LPE Lottery Profits 90004
Education Fund Group $ 637,900,000 $ 637,900,000 90005

Revenue Distribution Fund Group90006

047 200-909 School District Property Tax Replacement-Business $ 49,350,000 $ 369,054,000 90007
053 200-900 School District Property Tax Replacement-Utility $ 116,647,522 $ 101,647,522 90008
TOTAL RDF Revenue Distribution 90009
Fund Group $ 165,997,522 $ 470,701,522 90010
TOTAL ALL BUDGET FUND GROUPS $ 10,187,642,895 $ 10,735,612,623 90011


       Section 206.09.03. MAINTENANCE AND EQUIPMENT90013

       Of the foregoing appropriation item 200-320, Maintenance and90014
Equipment, up to $25,000 may be expended in each fiscal year for90015
State Board of Education out-of-state travel.90016

       Section 206.09.06. EARLY CHILDHOOD EDUCATION90017

       The Department of Education shall distribute the foregoing90018
appropriation item 200-408, Early Childhood Education, to pay the 90019
costs of early childhood education programs. As used in this 90020
section, "provider" means a city, local, exempted village, or 90021
joint vocational school district, or an educational service 90022
center.90023

       (A) In each fiscal year, up to two per cent of the total90024
appropriation may be used by the Department for program support 90025
and technical assistance. The Department shall distribute the 90026
remainder of the appropriation in each fiscal year to serve 90027
children from families earning not more than 200 per cent of the 90028
federal poverty guidelines.90029

       (B) The Department shall provide an annual report to the90030
Governor, the Speaker of the House of Representatives, and the90031
President of the Senate and post the report to the Department's 90032
web site, regarding early childhood education programs operated 90033
under this section and the early learning program guidelines for 90034
school readiness.90035

       (C) For purposes of this section, "eligible child" means a90036
child who is at least three years of age, is not of the age to be 90037
eligible for kindergarten, and whose family earns not more than 90038
200 per cent of the federal poverty guidelines.90039

       (D) After setting aside the amounts to make payments due from 90040
the previous fiscal year, in fiscal year 2006, the Department 90041
shall distribute funds first to recipients of funds for public 90042
preschool programs under Section 41.02 of Am. Sub. H.B. 95 of the 90043
125th General Assembly in the previous fiscal year and the balance 90044
to new providers of early childhood education programs under this 90045
section. After setting aside the amounts to make payments due from 90046
the previous fiscal year, in fiscal year 2007, the Department 90047
shall distribute funds first to providers of early childhood 90048
education programs under this section in the previous fiscal year 90049
and the balance to new providers. Awards under this section shall 90050
be distributed on a per-pupil basis, which the Department may 90051
adjust so that the per-pupil amount multiplied by the number of 90052
eligible children enrolled and receiving services, as defined by 90053
the Department, reported on the first day of December or the first 90054
business day following that date equals the amount allocated under 90055
division (A) of this section. The Department may increase the 90056
per-pupil amount by a reasonable percentage, to be determined by 90057
the Department.90058

       The Department may reallocate unobligated or unspent money to90059
participating providers for purposes of program expansion,90060
improvement, or special projects to promote quality and90061
innovation.90062

       (E) Costs for developing and administering an early childhood 90063
education program may not exceed fifteen per cent of the total 90064
approved costs of the program.90065

       All providers shall maintain such fiscal control and90066
accounting procedures as may be necessary to ensure the90067
disbursement of, and accounting for, these funds. The control of90068
funds provided in this program, and title to property obtained90069
therefrom, shall be under the authority of the approved provider90070
for purposes provided in the program unless, as described in 90071
division (I) of this section, the program waives its right for 90072
funding or a program's funding is eliminated or reduced due to its 90073
inability to meet financial or early learning program guidelines 90074
for school readiness. The approved provider shall administer and 90075
use such property and funds for the purposes specified.90076

       (F) The Department may examine a provider's financial and 90077
program records. If the financial practices of the program are not 90078
in accordance with standard accounting principles or do not meet 90079
financial standards outlined under division (E) of this section, 90080
or if the program fails to substantially meet the early learning 90081
program guidelines for school readiness or exhibits below average 90082
performance as measured against the guidelines, the early 90083
childhood education program shall propose and implement a 90084
corrective action plan that has been approved by the Department. 90085
The approved corrective action plan shall be signed by the chief 90086
executive officer and the executive of the official governing body 90087
of the provider. The corrective action plan shall include a 90088
schedule for monitoring by the Department. Such monitoring may 90089
include monthly reports, inspections, a timeline for correction of 90090
deficiencies, and technical assistance to be provided by the 90091
Department or obtained by the early childhood education program. 90092
The Department may withhold funding pending corrective action. If 90093
an early childhood education program fails to satisfactorily 90094
complete a corrective action plan, the Department may deny 90095
expansion funding to the program or withdraw all or part of the 90096
funding to the program and establish a new provider through a 90097
competitive bidding process established by the Department.90098

       (G) Each early childhood education program shall do all of 90099
the following:90100

       (1) Meet teacher qualification requirements prescribed by 90101
section 3301.311 of the Revised Code;90102

       (2) Align curriculum to the early learning content standards;90103

       (3) Meet any assessment requirements prescribed by section 90104
3301.0715 of the Revised Code that are applicable to the program;90105

       (4) Require teachers, except teachers enrolled and working to 90106
obtain a degree pursuant to section 3301.311 of the Revised Code, 90107
to attend a minimum of twenty hours per year of professional 90108
development as prescribed by the Department regarding the 90109
implementation of content standards and assessments;90110

       (5) Document and report child progress;90111

       (6) Meet and report compliance with the early learning 90112
program guidelines for school readiness.90113

       (H) Each provider shall develop a sliding fee scale based on 90114
family incomes and shall charge families who earn more than the90115
federal poverty guidelines for the early childhood education 90116
program.90117

       (I) If an early childhood education program voluntarily 90118
waives its right for funding, or has its funding eliminated for 90119
not meeting financial standards or the early learning program 90120
guidelines for school readiness, the provider shall transfer 90121
control of title to property, equipment, and remaining supplies 90122
obtained through the program to providers designated by the 90123
Department and return any unexpended funds to the Department along 90124
with any reports prescribed by the Department. The funding made 90125
available from a program that waives its right for funding or has 90126
its funding eliminated or reduced may be used by the Department 90127
for new grant awards or expansion grants. The Department may award 90128
new grants or expansion grants to eligible providers who apply. 90129
The eligible providers who apply must do so in accordance with the 90130
competitive bidding process established by the Department.90131

       (J) As used in this section, "early learning program 90132
guidelines for school readiness" means the guidelines established 90133
by the Department pursuant to division (C)(3) of Section 206.09.54 90134
of this act. 90135

       Section 206.09.09. EDUCATOR TRAINING90136

       The foregoing appropriation item 200-410, Educator Training, 90137
shall be used to fund professional development programs in Ohio. 90138
The Department of Education shall, when possible, incorporate 90139
cultural competency as a component of professional development and 90140
actively promote the development of cultural competency in the 90141
operation of its professional development programs. As used in 90142
this section, "cultural competency" has the meaning specified by 90143
the Educator Standards Board under section 3319.61 of the Revised 90144
Code.90145

       Of the foregoing appropriation item 200-410, Educator 90146
Training, up to $7,850,000 in fiscal year 2006 and up to 90147
$8,250,000 in fiscal year 2007 shall be used by the Department of 90148
Education to provide grants to pay $2,000 of the application fee 90149
in order to assist teachers from public and chartered nonpublic 90150
schools applying for the first time to the National Board for 90151
Professional Teaching Standards for professional teaching 90152
certificates or licenses that the board offers. This set aside 90153
shall also be used to recognize and reward teachers who become 90154
certified by the National Board for Professional Teaching 90155
Standards under section 3319.55 of the Revised Code. Up to 90156
$300,000 in each fiscal year of this set aside may be used by the 90157
Department to pay for costs associated with activities to support 90158
candidates through the application and certification process.90159

       These moneys shall be used to pay up to the first 40090160
applications in each fiscal year received by the Department.90161

       Of the foregoing appropriation item 200-410, Educator 90162
Training, up to $9,515,817 in each fiscal year shall be allocated 90163
for entry year programs. These funds shall be used to support 90164
mentoring services and performance assessments of beginning 90165
teachers and principals in school districts and chartered 90166
nonpublic schools.90167

       Of the foregoing appropriation item 200-410, Educator 90168
Training, up to $200,000 in each fiscal year shall be used to 90169
provide technical assistance and grants for districts to develop 90170
local knowledge/skills-based compensation systems (Teacher 90171
Advancement Program). Each district receiving grants shall issue 90172
an annual report to the Department of Education detailing the use 90173
of the funds and the impact of the system developed by the 90174
district.90175

       Of the foregoing appropriation item 200-410, Educator 90176
Training, up to $350,000 in each fiscal year shall be used for 90177
training and professional development of school administrators, 90178
school treasurers, and school business officials.90179

       Of the foregoing appropriation item 200-410, Educator 90180
Training, up to $100,000 in fiscal year 2007 shall be used by the 90181
Department of Education to develop a supply and demand report that 90182
describes the availability of quality educators and critical 90183
educator shortage areas in Ohio.90184

       Of the foregoing appropriation item 200-410, Educator 90185
Training, up to $885,740 in each fiscal year shall be used for 90186
educator recruitment programs targeting shortage areas, including 90187
recruiting highly qualified minority candidates into teaching and 90188
recruiting prospective mathematics and science teachers. The funds 90189
also may be used to provide an alternative route to licensure for 90190
principals and other administrators.90191

       Of the foregoing appropriation item 200-410, Educator 90192
Training, up to $187,500 in each fiscal year shall be used by the 90193
Department of Education to identify hard-to-staff schools and to 90194
provide incentives for highly qualified teachers to teach in these 90195
schools. Stipends shall be provided to teachers with at least 90196
three years of experience who teach in the areas of special 90197
education or middle or high school mathematics or science.90198

       Of the foregoing appropriation item 200-410, Educator 90199
Training, up to $63,000 in each fiscal year shall be used to 90200
support the Ohio University Leadership Program.90201

       Of the foregoing appropriation item 200-410, Educator 90202
Training, $250,000 in each fiscal year shall be used to support 90203
the Ohio School Leadership Institute.90204

       Section 206.09.10. CAREER-TECHNICAL EDUCATION MATCH90205

       The foregoing appropriation item 200-416, Career-Technical 90206
Education Match, shall be used by the Department of Education to 90207
provide vocational administration matching funds under 20 U.S.C. 90208
2311.90209

       Section 206.09.12. COMPUTER/APPLICATION/NETWORK DEVELOPMENT90210

       The foregoing appropriation item 200-420, 90211
Computer/Application/Network Development, shall be used to support 90212
the development and implementation of information technology 90213
solutions designed to improve the performance and services of the 90214
Department of Education. Funds may be used for personnel, 90215
maintenance, and equipment costs related to the development and 90216
implementation of these technical system projects. Implementation 90217
of these systems shall allow the Department to provide greater 90218
levels of assistance to school districts and to provide more 90219
timely information to the public, including school districts, 90220
administrators, and legislators.90221

       ALTERNATIVE EDUCATION PROGRAMS90222

       There is hereby created the Alternative Education Advisory90223
Council, which shall consist of one representative from each of90224
the following agencies: the Ohio Department of Education; the90225
Department of Youth Services; the Ohio Department of Alcohol and90226
Drug Addiction Services; the Department of Mental Health; the90227
Office of the Governor or, at the Governor's discretion, the90228
Office of the Lieutenant Governor; the Office of the Attorney90229
General; and the Office of the Auditor of State.90230

       Of the foregoing appropriation item 200-421, Alternative90231
Education Programs, up to $6,227,310 in each fiscal year shall be 90232
used for the renewal of successful implementation grants and for90233
competitive matching grants to the 21 urban school districts as90234
defined in division (O) of section 3317.02 of the Revised Code as90235
it existed prior to July 1, 1998, and up to $6,408,074 in each 90236
fiscal year shall be used for the renewal of successful 90237
implementation grants and for competitive matching grants to rural 90238
and suburban school districts for alternative educational programs 90239
for existing and new at-risk and delinquent youth. Programs shall 90240
be focused on youth in one or more of the following categories: 90241
those who have been expelled or suspended, those who have dropped 90242
out of school or who are at risk of dropping out of school, those 90243
who are habitually truant or disruptive, or those on probation or 90244
on parole from a Department of Youth Services facility. Grants 90245
shall be awarded according to the criteria established by the90246
Alternative Education Advisory Council in 1999. Grants shall be90247
awarded only to programs in which the grant will not serve as the90248
program's primary source of funding. These grants shall be90249
administered by the Department of Education.90250

       The Department of Education may waive compliance with any90251
minimum education standard established under section 3301.07 of90252
the Revised Code for any alternative school that receives a grant90253
under this section on the grounds that the waiver will enable the90254
program to more effectively educate students enrolled in the90255
alternative school.90256

       Of the foregoing appropriation item 200-421, Alternative90257
Education Programs, up to $422,281 in each fiscal year may be used90258
for program administration, monitoring, technical assistance,90259
support, research, and evaluation. Any unexpended balance may be90260
used to provide additional matching grants to urban, suburban, or90261
rural school districts as outlined above.90262

       Of the foregoing appropriation item 200-421, Alternative 90263
Education Programs, up to $675,000 in fiscal year 2006 and up to 90264
$500,000 in fiscal year 2007 may be used by the Department of 90265
Education to administer the Educational Choice Scholarship Pilot 90266
Program established under section 3310.02 of the Revised Code.90267

       Of the foregoing appropriation item 200-421, Alternative 90268
Education Programs, $75,000 in each fiscal year shall be used to 90269
support the Toledo Tech Academy.90270

       Of the foregoing appropriation item 200-421, Alternative 90271
Education Programs, $100,000 in each fiscal year shall be used for 90272
the Youth Opportunities United, Inc.90273

       SCHOOL MANAGEMENT ASSISTANCE90274

       Of the foregoing appropriation item 200-422, School90275
Management Assistance, up to $1,315,000 in each fiscal year shall 90276
be used by the Auditor of State in consultation with the 90277
Department of Education for expenses incurred in the Auditor of 90278
State's role relating to fiscal caution, fiscal watch, and fiscal 90279
emergency activities as defined in Chapter 3316. of the Revised 90280
Code and may also be used to conduct performance audits consistent 90281
with the recommendations of the Governor's Blue Ribbon Task Force 90282
on Financing Student Success, with priority given to districts in 90283
fiscal distress. Expenses include duties related to the completion 90284
of performance audits for school districts that the Superintendent 90285
of Public Instruction determines are employing fiscal practices or90286
experiencing budgetary conditions that could produce a state of90287
fiscal watch or fiscal emergency.90288

       The remainder of foregoing appropriation item 200-422, School90289
Management Assistance, shall be used by the Department of90290
Education to provide fiscal technical assistance and inservice90291
education for school district management personnel and to90292
administer, monitor, and implement the fiscal watch and fiscal90293
emergency provisions under Chapter 3316. of the Revised Code.90294

       POLICY ANALYSIS90295

       The foregoing appropriation item 200-424, Policy Analysis,90296
shall be used by the Department of Education to support a system90297
of administrative, statistical, and legislative education90298
information to be used for policy analysis. Staff supported by90299
this appropriation shall administer the development of reports,90300
analyses, and briefings to inform education policymakers of90301
current trends in education practice, efficient and effective use90302
of resources, and evaluation of programs to improve education90303
results. The database shall be kept current at all times. These90304
research efforts shall be used to supply information and analysis90305
of data to the General Assembly and other state policymakers,90306
including the Office of Budget and Management and the Legislative90307
Service Commission.90308

       The Department of Education may use funding from this90309
appropriation item to purchase or contract for the development of90310
software systems or contract for policy studies that will assist90311
in the provision and analysis of policy-related information.90312
Funding from this appropriation item also may be used to monitor90313
and enhance quality assurance for research-based policy analysis90314
and program evaluation to enhance the effective use of education90315
information to inform education policymakers.90316

       TECH PREP CONSORTIA SUPPORT90317

       The foregoing appropriation item 200-425, Tech Prep Consortia 90318
Support, shall be used by the Department of Education to support 90319
state-level activities designed to support, promote, and expand 90320
tech prep programs. Use of these funds shall include, but not be 90321
limited to, administration of grants, program evaluation,90322
professional development, curriculum development, assessment90323
development, program promotion, communications, and statewide90324
coordination of tech prep consortia.90325

       OHIO EDUCATIONAL COMPUTER NETWORK90326

       The foregoing appropriation item 200-426, Ohio Educational90327
Computer Network, shall be used by the Department of Education to90328
maintain a system of information technology throughout Ohio and to90329
provide technical assistance for such a system in support of the90330
State Education Technology Plan under section 3301.07 of the90331
Revised Code.90332

       Of the foregoing appropriation item 200-426, Ohio Educational90333
Computer Network, up to $18,136,691 in each fiscal year shall be 90334
used by the Department of Education to support connection of all 90335
public school buildings and participating chartered nonpublic 90336
schools to the state's education network, to each other, and to 90337
the Internet. In each fiscal year the Department of Education 90338
shall use these funds to assist data acquisition sites or school 90339
districts with the operational costs associated with this 90340
connectivity. The Department of Education shall develop a formula 90341
and guidelines for the distribution of these funds to the data 90342
acquisition sites or individual school districts. As used in this 90343
section, "public school building" means a school building of any 90344
city, local, exempted village, or joint vocational school 90345
district, any community school established under Chapter 3314. of 90346
the Revised Code, any educational service center building used for90347
instructional purposes, the Ohio School for the Deaf and the Ohio 90348
School for the Blind, or high schools chartered by the Ohio 90349
Department of Youth Services and high schools operated by Ohio 90350
Department of Rehabilitation and Corrections' Ohio Central School 90351
System.90352

       Of the foregoing appropriation item 200-426, Ohio Educational90353
Computer Network, up to $1,700,000 in each fiscal year shall be 90354
used for the Union Catalog and InfOhio Network.90355

       Of the foregoing appropriation item 200-426, Ohio Educational 90356
Computer Network, up to $8,338,468 in each fiscal year shall be 90357
used, through a formula and guidelines devised by the department, 90358
to subsidize the activities of designated data acquisition sites, 90359
as defined by State Board of Education rules, to provide school 90360
districts and chartered nonpublic schools with computer-based 90361
student and teacher instructional and administrative information 90362
services, including approved computerized financial accounting, 90363
and to ensure the effective operation of local automated 90364
administrative and instructional systems.90365

       Of the foregoing appropriation item 200-426, Ohio Educational 90366
Computer Network, up to $769,223 in each fiscal year shall be used 90367
for the INFOhio Network to support the provision of electronic 90368
resources with priority given to resources that support the 90369
teaching of state academic content standards to all public 90370
schools. Consideration shall be given by the Department of 90371
Education to coordinating the allocation of these moneys with the 90372
efforts of Libraries Connect Ohio, whose members include OhioLINK, 90373
the Ohio Public Information Network, and the State Library of 90374
Ohio.90375

       The remainder of appropriation item 200-426, Ohio Educational 90376
Computer Network, shall be used to support development, 90377
maintenance, and operation of a network of uniform and compatible 90378
computer-based information and instructional systems. This 90379
technical assistance shall include, but not be restricted to, 90380
development and maintenance of adequate computer software systems 90381
to support network activities. In order to improve the efficiency 90382
of network activities, the Department and data acquisition sites 90383
may jointly purchase equipment, materials, and services from funds 90384
provided under this appropriation for use by the network and, when 90385
considered practical by the Department, may utilize the services 90386
of appropriate state purchasing agencies.90387

       ACADEMIC STANDARDS90388

       Of the foregoing appropriation item 200-427, Academic 90389
Standards, up to $747,912 in each fiscal year shall be used to 90390
provide funds to school districts that have one or more teachers 90391
participating in the teachers-on-loan program.90392

       Of the foregoing appropriation item 200-427, Academic 90393
Standards, $150,000 in each fiscal year shall be used by the 90394
Department in combination with funding earmarked for this purpose 90395
in the Board of Regents' budget under appropriation item 235-321, 90396
Operating Expenses. Such funding shall be used to support Ohio's 90397
Partnership for Continued Learning at the direction of the Office 90398
of the Governor. Ohio's Partnership for Continued Learning 90399
replaces and broadens the former Joint Council of the Department 90400
of Education and the Board of Regents. The Partnership shall 90401
advise and make recommendations to promote collaboration among 90402
relevant state entities in an effort to help local communities 90403
develop coherent and successful "P-16" learning systems. The 90404
Governor, or the Governor's designee, shall serve as the 90405
chairperson.90406

        Of the foregoing appropriation item 200-427, Academic 90407
Standards, $1,000,000 in each fiscal year shall be used for 90408
Project Lead the Way leadership and management oversight and 90409
initial and continuing support of Project Lead the Way workforce 90410
development programs in participating school districts. Project 90411
Lead the Way is a program that supports students interested in 90412
pursuing engineering professions and stimulates growth of career 90413
pathways that meet business and industry workforce needs.90414

        Of the foregoing appropriation item 200-427, Academic 90415
Standards, up to $2,600,000 in each fiscal year shall be used for 90416
intensive teacher professional development institutes that focus 90417
on classroom implementation of the mathematics standards.90418

       Of the foregoing appropriation item 200-427, Academic 90419
Standards, $200,000 in each fiscal year may be used to support the 90420
Ohio Resource Center for Math and Science.90421

       Of the foregoing appropriation item 200-427, Academic 90422
Standards, up to $282,000 in each fiscal year shall be used for 90423
the JASON Expedition project that provides statewide access to 90424
JASON Expedition content. Funds shall be used to provide 90425
professional development training for teachers participating in 90426
the project, statewide management, and a seventy-five per cent 90427
subsidy for statewide licensing of JASON Expedition content with 90428
priority given to content aligned with state academic content 90429
standards for approximately 90,000 middle school students 90430
statewide.90431

       Of the foregoing appropriation item 200-427, Academic 90432
Standards, $285,000 in each fiscal year shall be used for the Ohio 90433
Science Institute (OSCI).90434

       The remainder of appropriation item 200-427, Academic 90435
Standards, shall be used by the Department of Education to develop 90436
and communicate to school districts academic content standards and 90437
curriculum models.90438

       Section 206.09.15. SCHOOL IMPROVEMENT INITIATIVES90439

       Of the foregoing appropriation item 200-431, School 90440
Improvement Initiatives, $300,000 in fiscal year 2006 and $450,000 90441
in fiscal year 2007 shall be used for Ohio's Rural Appalachian 90442
Leadership Development Initiative.90443

       Of the foregoing appropriation item 200-431, School 90444
Improvement Initiatives, up to $601,165 in each fiscal year shall 90445
be used by the Department of Education to contract with 90446
educational media centers to provide Ohio public schools with 90447
instructional resources and services with priority given to 90448
resources and services aligned with state academic content 90449
standards.90450

       Of the foregoing appropriation item 200-431, School90451
Improvement Initiatives, up to $13,972,949 in fiscal year 2006 and 90452
$13,672,678 in fiscal year 2007 shall be used to provide technical90453
assistance to school districts that are declared to be in a state90454
of academic watch or academic emergency under section 3302.03 of90455
the Revised Code, to provide support to districts in the 90456
development and implementation of their continuous improvement 90457
plans as required in section 3302.04 of the Revised Code, to 90458
support a statewide comprehensive system of field relations that 90459
support local educators' abilities to foster academic achievement 90460
in the students they serve, and to provide technical assistance 90461
and support in accordance with Title I of the "No Child Left 90462
Behind Act of 2001," 115 Stat. 1425, 20 U.S.C. 6317. The field 90463
relations system shall include training that assists educators, 90464
school leadership, and technical assistance providers in 90465
understanding and implementing standards-based education, data 90466
analysis, and development of assessment systems for quality 90467
instruction.90468

       Of the foregoing appropriation item 200-431, School 90469
Improvement Initiatives, up to $315,000 in each fiscal year shall 90470
be used to reduce the dropout rate by addressing the academic and 90471
social problems of inner-city students through Project GRAD.90472

       Of the foregoing appropriation item 200-431, School 90473
Improvement Initiatives, $1,574,535 in fiscal year 2006 and 90474
$2,753,985 in fiscal year 2007 shall be used in conjunction with 90475
funding provided in the Board of Regents' budget under 90476
appropriation item 235-434, College Readiness and Access, to 90477
create early college high schools, which are small, autonomous 90478
schools that blend high school and college into a coherent 90479
educational program.90480

        Of the foregoing appropriation item 200-431, School 90481
Improvement Initiatives, up to $2,935,000 in fiscal year 2006 and 90482
up to $4,935,000 in fiscal year 2007 shall be used in partnership 90483
with nonprofit groups with expertise in converting existing large 90484
urban high schools into small, personalized high schools. 90485
Districts eligible for such funding include the Urban 21 high 90486
schools, as defined in division (O) of section 3317.02 of the 90487
Revised Code as it existed prior to July 1, 1998.90488

       Of the foregoing appropriation item 200-431, School 90489
Improvement Initiatives, up to $65,000 in each fiscal year shall 90490
be provided to Southern State Community College for the Pilot 90491
Post-Secondary Enrollment Options Program with Miami Trace High 90492
School.90493

       Of the foregoing appropriation item 200-431, School 90494
Improvement Initiatives, $1,000,000 in each fiscal year shall be 90495
used to support Jobs for Ohio Graduates (JOG). The Department of 90496
Education shall require a two-to-one match of local funding to 90497
state funding before releasing these funds to JOG.90498

       Of the foregoing appropriation item 200-431, School 90499
Improvement Initiatives, $50,000 in each fiscal year shall be used 90500
for the Big City Schools Program in Cincinnati.90501

       Of the foregoing appropriation item 200-431, School 90502
Improvement Initiatives, $1,000,000 shall be used in fiscal year 90503
2006 to support Improved Solutions for Urban Students (ISUS) in 90504
Dayton.90505

       READING/WRITING IMPROVEMENT-PROFESSIONAL DEVELOPMENT90506

       Of the foregoing appropriation item 200-433, Reading/Writing90507
Improvement-Professional Development, up to $9,790,000 in each 90508
fiscal year shall be used for educator training in literacy for 90509
classroom teachers, administrators, and literacy specialists.90510

       Of the foregoing appropriation item 200-433, Reading/Writing 90511
Improvement-Professional Development, up to $5,000,000 in each 90512
fiscal year shall be used to support literacy professional 90513
development partnerships between the Department of Education, 90514
higher education institutions, literacy networks, and school 90515
districts.90516

       Of the foregoing appropriation item 200-433, Reading/Writing 90517
Improvement–Professional Development, up to $900,000 in each 90518
fiscal year shall be used by the Department of Education to fund 90519
the Reading Recovery Training Network, to cover the cost of 90520
release time for the teacher trainers, and to provide grants to 90521
districts to implement other reading improvement programs on a 90522
pilot basis. Funds from this set-aside also may be used to conduct 90523
evaluations of the impact and effectiveness of Reading Recovery 90524
and other reading improvement programs.90525

       Of the foregoing appropriation item 200-433, Reading/Writing 90526
Improvement-Professional Development, up to $250,000 in each 90527
fiscal year shall be used for the Waterford Early Reading Program.90528

       The remainder of appropriation item 200-433, Reading/Writing 90529
Improvement-Professional Development, shall be used by the 90530
Department of Education to provide administrative support of 90531
literacy professional development programs.90532

       STUDENT ASSESSMENT90533

       The foregoing appropriation item 200-437, Student Assessment,90534
shall be used to develop, field test, print, distribute, score,90535
report results, and support other associated costs for the tests 90536
required under sections 3301.0710 and 3301.0711 of the Revised 90537
Code and for similar purposes as required by section 3301.27 of 90538
the Revised Code.90539

       ACCOUNTABILITY/REPORT CARDS90540

       Of the foregoing appropriation item 200-439, 90541
Accountability/Report Cards, up to $200,100 in fiscal year 2006 90542
and up to $3,778,540 in fiscal year 2007 shall be used by the 90543
Department of Education to incorporate a statewide pilot 90544
value-added progress dimension into performance ratings for school 90545
districts and to train regional specialists. This funding shall be 90546
used in consultation with a credible nonprofit organization with 90547
expertise in value-added progress dimensions.90548

       The remainder of the appropriation item 200-439, 90549
Accountability/Report Cards, shall be used for the development of 90550
an accountability system that includes the preparation and 90551
distribution of school report cards under section 3302.03 of the 90552
Revised Code.90553

       CHILD CARE LICENSING90554

       The foregoing appropriation item 200-442, Child Care90555
Licensing, shall be used by the Department of Education to license90556
and to inspect preschool and school-age child care programs under 90557
sections 3301.52 to 3301.59 of the Revised Code.90558

       OHIOREADS VOLUNTEER SUPPORT90559

       The foregoing appropriation item 200-445, OhioReads Volunteer 90560
Support, may be allocated by the Department of Education for 90561
volunteer coordinators in public school buildings, for background 90562
checks for volunteers, to evaluate programs, and to develop, 90563
implement, and support literacy improvement activities and 90564
interventions for students in grades kindergarten through twelve.90565

       Section 206.09.18. EDUCATION MANAGEMENT INFORMATION SYSTEM90566

       The foregoing appropriation item 200-446, Education90567
Management Information System, shall be used by the Department of90568
Education to improve the Education Management Information System 90569
(EMIS).90570

       Of the foregoing appropriation item 200-446, Education90571
Management Information System, up to $1,295,857 in each fiscal 90572
year shall be distributed to designated data acquisition sites for 90573
costs relating to processing, storing, and transferring data for 90574
the effective operation of the EMIS. These costs may include, but 90575
are not limited to, personnel, hardware, software development,90576
communications connectivity, professional development, and support90577
services, and to provide services to participate in the State90578
Education Technology Plan pursuant to section 3301.07 of the90579
Revised Code.90580

       Of the foregoing appropriation item 200-446, Education90581
Management Information System, up to $8,055,189 in each fiscal 90582
year shall be distributed on a per-pupil basis to school 90583
districts, community schools established under Chapter 3314. of 90584
the Revised Code, educational service centers, joint vocational 90585
school districts, and any other education entity that reports data 90586
through EMIS. From this funding, each school district or community 90587
school established under Chapter 3314. of the Revised Code with 90588
enrollment greater than 100 students and each vocational school 90589
district shall receive a minimum of $5,000 in each fiscal year. 90590
Each school district or community school established under Chapter90591
3314. of the Revised Code with enrollment between one and one90592
hundred and each educational service center and each county board 90593
of MR/DD that submits data through EMIS shall receive $3,000 in 90594
each fiscal year. This subsidy shall be used for costs relating to 90595
reporting, processing, storing, transferring, and exchanging data 90596
necessary to meet requirements of the Department of Education's 90597
data system.90598

       The remainder of appropriation item 200-446, Education 90599
Management Information System, shall be used to develop and 90600
support a common core of data definitions and standards as adopted 90601
by the Education Data Advisory Council, including the ongoing 90602
development and maintenance of the data dictionary and data 90603
warehouse. In addition, such funds shall be used to support the 90604
development and implementation of data standards and the design, 90605
development, and implementation of a new data exchange system.90606

       Any provider of software meeting the standards approved by 90607
the Education Data Advisory Council shall be designated as an 90608
approved vendor and may enter into contracts with local school 90609
districts, community schools, data acquisition centers, or other 90610
educational entities for the purpose of collecting and managing 90611
data required under Ohio's education management information system 90612
(EMIS) laws. On an annual basis, the Department of Education shall 90613
convene an advisory group of school districts, community schools, 90614
and other education-related entities to review the Education 90615
Management Information System data definitions and data format 90616
standards. The advisory group shall recommend changes and 90617
enhancements based upon surveys of its members, education agencies 90618
in other states, and current industry practices, to reflect best 90619
practices, align with federal initiatives, and meet the needs of 90620
school districts.90621

       School districts and community schools not implementing a 90622
common and uniform set of data definitions and data format 90623
standards for Education Management Information System purposes 90624
shall have all EMIS funding withheld until they are in compliance.90625

       GED TESTING90626

       The foregoing appropriation item 200-447, GED Testing, shall 90627
be used to provide General Educational Development (GED) testing 90628
at no cost to applicants, under rules adopted by the State Board 90629
of Education. The Department of Education shall reimburse school 90630
districts and community schools, created under Chapter 3314. of 90631
the Revised Code, for a portion of the costs incurred in providing 90632
summer instructional or intervention services to students who have 90633
not graduated because of their inability to pass one or more parts 90634
of the state's Ohio Graduation Test or ninth grade proficiency90635
test. School districts shall also provide such services to 90636
students who are residents of the district under section 3313.64 90637
of the Revised Code, but who are enrolled in chartered, nonpublic 90638
schools. The services shall be provided in the public school, in 90639
nonpublic schools, in public centers, or in mobile units located 90640
on or off the nonpublic school premises. No school district shall 90641
provide summer instructional or intervention services to nonpublic 90642
school students as authorized by this section unless such services90643
are available to students attending the public schools within the 90644
district. No school district shall provide services for use in 90645
religious courses, devotional exercises, religious training, or 90646
any other religious activity. Chartered, nonpublic schools shall 90647
pay for any unreimbursed costs incurred by school districts for 90648
providing summer instruction or intervention services to students 90649
enrolled in chartered, nonpublic schools. School districts may 90650
provide these services to students directly or contract with 90651
postsecondary or nonprofit community-based institutions in90652
providing instruction.90653

       EDUCATOR PREPARATION90654

       Of the foregoing appropriation item 200-448, Educator 90655
Preparation, $100,000 in each fiscal year shall be provided in 90656
conjunction with funding in the Board of Regents' budget under 90657
appropriation item 235-435, Teacher Improvement Initiatives, to 90658
the Teacher Quality Partnership project. The Teacher Quality 90659
Partnership is a research consortium of Ohio's fifty colleges and 90660
universities providing teacher preparation programs. Funds shall 90661
be used to support a comprehensive longitudinal study of the 90662
preparation, in-school support, and effectiveness of Ohio 90663
teachers.90664

        Of the foregoing appropriation item 200-448, Educator 90665
Preparation, up to $1,551,000 in each fiscal year shall be used by 90666
the Department to support the Educator Standards Board under 90667
section 3319.61 of the Revised Code as it develops and recommends 90668
to the State Board of Education standards for educator training 90669
and standards for teacher and other school leadership positions.90670

       COMMUNITY SCHOOLS90671

       Of the foregoing appropriation item 200-455, Community90672
Schools, up to $1,308,661 in each fiscal year may be used by the 90673
Department of Education for additional services and 90674
responsibilities under section 3314.11 of the Revised Code.90675

       Of the foregoing appropriation item 200-455, Community 90676
Schools, up to $225,000 in each fiscal year may be used by the 90677
Department of Education for developing and conducting training 90678
sessions for sponsors and prospective sponsors of community 90679
schools as prescribed in division (A)(1) of section 3314.015 of 90680
the Revised Code. In developing the training sessions, the 90681
Department shall collect and disseminate examples of best 90682
practices used by sponsors of independent charter schools in Ohio 90683
and other states.90684

       The remaining appropriation may be used by the Department of90685
Education to make grants of up to $50,000 to each proposing group 90686
with a preliminary agreement obtained under division (C)(2) of 90687
section 3314.02 of the Revised Code in order to defray planning90688
and initial start-up costs. In the first year of operation of a 90689
community school, the Department of Education may make a grant of 90690
not more than $100,000 to the governing authority of the school to 90691
partially defray additional start-up costs. The amount of the 90692
grant shall be based on a thorough examination of the needs of the 90693
community school. The Department of Education shall not utilize 90694
moneys received under this section for any other purpose other 90695
than those specified under this section.90696

       A community school awarded start-up grants from appropriation90697
item 200-613, Public Charter Schools (Fund 3T4), shall not be90698
eligible for grants under this section.90699

       Section 206.09.21.  PUPIL TRANSPORTATION90700

       Of the foregoing appropriation item 200-502, Pupil90701
Transportation, up to $822,400 in each fiscal year may be used by 90702
the Department of Education for training prospective and 90703
experienced school bus drivers in accordance with training 90704
programs prescribed by the Department. Up to $58,115,428 in fiscal 90705
year 2006 and up to $59,277,737 in fiscal year 2007 may be used by 90706
the Department of Education for special education transportation90707
reimbursements to school districts and county MR/DD boards for 90708
transportation operating costs as provided in division (M) of 90709
section 3317.024 of the Revised Code. The remainder of 90710
appropriation item 200-502, Pupil Transportation, shall be used 90711
for the state reimbursement of public school districts' costs in 90712
transporting pupils to and from the school they attend in 90713
accordance with the district's policy, State Board of Education 90714
standards, and the Revised Code.90715

       Notwithstanding the distribution formula outlined in division 90716
(D) of section 3317.022 of the Revised Code, each school district 90717
shall receive an additional two per cent in state funding for 90718
transportation in fiscal year 2006 over what was received in 90719
fiscal year 2005, and the local share of transportation costs that 90720
is used in the calculation of the charge-off supplement and excess 90721
cost supplement for each school district in fiscal year 2006 shall 90722
be increased by two per cent from that used in calculations in 90723
fiscal year 2005.90724

        Notwithstanding the distribution formula outlined in division 90725
(D) of section 3317.022 of the Revised Code, each school district 90726
shall receive an additional two per cent in state funding for 90727
transportation in fiscal year 2007 over what was received in 90728
fiscal year 2006, and the local share of transportation costs that 90729
is used in the calculation of the charge-off supplement and excess 90730
cost supplement for each school district in fiscal year 2007 shall 90731
be increased by two per cent from that used in calculations in 90732
fiscal year 2006.90733

        The Department of Education shall recommend a new formula for 90734
allocating state funds for transportation costs. The Department 90735
shall submit the recommendation to the Director of Budget and 90736
Management, the Speaker of the House of Representatives, and the 90737
President of the Senate not later than July 1, 2006.90738

        School districts not receiving state funding for 90739
transportation in fiscal year 2005 under division (D) of section 90740
3317.022 of the Revised Code shall not receive state funding for 90741
transportation in fiscal year 2006 or fiscal year 2007.90742

       BUS PURCHASE ALLOWANCE90743

       The foregoing appropriation item 200-503, Bus Purchase90744
Allowance, shall be distributed to school districts, educational 90745
service centers, and county MR/DD boards pursuant to rules adopted 90746
under section 3317.07 of the Revised Code. Up to 28 per cent of 90747
the amount appropriated may be used to reimburse school districts 90748
and educational service centers for the purchase of buses to90749
transport handicapped and nonpublic school students and to county 90750
MR/DD boards, the Ohio School for the Deaf, and the Ohio School 90751
for the Blind for the purchase of buses to transport handicapped 90752
students.90753

       SCHOOL LUNCH MATCH90754

       The foregoing appropriation item 200-505, School Lunch Match,90755
shall be used to provide matching funds to obtain federal funds90756
for the school lunch program.90757

       Section 206.09.24.  ADULT LITERACY EDUCATION90758

       The foregoing appropriation item 200-509, Adult Literacy90759
Education, shall be used to support adult basic and literacy90760
education instructional programs and the State Literacy Resource90761
Center Program.90762

       Of the foregoing appropriation item 200-509, Adult Literacy90763
Education, up to $488,037 in each fiscal year shall be used for 90764
the support and operation of the State Literacy Resource Center.90765

       Of the foregoing appropriation item 200-509, Adult Literacy 90766
Education, up to $175,000 in each fiscal year shall be used for 90767
state reimbursement to school districts for adult high school 90768
continuing education programs under section 3313.531 of the 90769
Revised Code or for costs associated with awarding adult high 90770
school diplomas under section 3313.611 of the Revised Code.90771

       Of the foregoing appropriation item 200-509, Adult Literacy 90772
Education, $130,000 in each fiscal year shall be used to support 90773
initiatives for English as a Second Language programs. Funding 90774
shall be distributed as follows: $60,000 in each fiscal year for 90775
Jewish Community Federation of Cleveland, $25,000 in each fiscal 90776
year for Yassenoff Jewish Community Center of Columbus, $30,000 in 90777
each fiscal year for Jewish Family Services of Cincinnati, and 90778
$15,000 in each fiscal year for Jewish Family Services of Dayton.90779

       The remainder of the appropriation shall be used to continue 90780
to satisfy the state match and maintenance of effort requirements 90781
for the support and operation of the Department of 90782
Education-administered instructional grant program for adult basic 90783
and literacy education in accordance with the Department's state 90784
plan for adult basic and literacy education as approved by the 90785
State Board of Education and the Secretary of the United States 90786
Department of Education.90787

       AUXILIARY SERVICES90788

       The foregoing appropriation item 200-511, Auxiliary Services,90789
shall be used by the Department of Education for the purpose of90790
implementing section 3317.06 of the Revised Code. Of the90791
appropriation, up to $2,000,000 in each fiscal year may be used 90792
for payment of the Post-Secondary Enrollment Options Program for 90793
nonpublic students under section 3365.10 of the Revised Code.90794

       POSTSECONDARY ADULT CAREER-TECHNICAL EDUCATION90795

       Of the foregoing appropriation item 200-514, Postsecondary 90796
Adult Career-Technical Education, $40,000 in each fiscal year 90797
shall be used for statewide coordination of the activities of the 90798
Ohio Young Farmers.90799

       The remainder of appropriation item 200-514, Postsecondary 90800
Adult Career-Technical Education, shall be used by the State Board 90801
of Education to provide postsecondary adult career-technical 90802
education under sections 3313.52 and 3313.53 of the Revised Code.90803

       Section 206.09.27.  GIFTED PUPIL PROGRAM90804

       The foregoing appropriation item 200-521, Gifted Pupil90805
Program, shall be used for gifted education units not to exceed 90806
1,110 in each fiscal year under division (P) of section 3317.024 90807
and division (F) of section 3317.05 of the Revised Code.90808

       Of the foregoing appropriation item 200-521, Gifted Pupil90809
Program, up to $4,700,000 in each fiscal year may be used as an 90810
additional supplement for identifying gifted students under 90811
Chapter 3324. of the Revised Code.90812

       Of the foregoing appropriation item 200-521, Gifted Pupil90813
Program, the Department of Education may expend up to $940,000 in 90814
each fiscal year for the Summer Honors Institute for gifted 90815
freshman and sophomore high school students. Up to $65,800 in each 90816
fiscal year shall be used for the Ohio Summer School for the90817
Gifted (Martin Essex Program).90818

       NONPUBLIC ADMINISTRATIVE COST REIMBURSEMENT90819

       The foregoing appropriation item 200-532, Nonpublic90820
Administrative Cost Reimbursement, shall be used by the Department 90821
of Education for the purpose of implementing section 3317.063 of 90822
the Revised Code.90823

       Section 206.09.30. SPECIAL EDUCATION ENHANCEMENTS90824

       Of the foregoing appropriation item 200-540, Special90825
Education Enhancements, up to $2,906,875 in each fiscal year shall 90826
be used for home instruction for children with disabilities; up to90827
$1,462,500 in each fiscal year shall be used for parent mentoring 90828
programs; and up to $2,783,396 in each fiscal year may be used for 90829
school psychology interns.90830

       Of the foregoing appropriation item 200-540, Special 90831
Education Enhancements, $750,000 in each fiscal year shall be used 90832
for the Out of School Initiative of Sinclair Community College.90833

       Of the foregoing appropriation item 200-540, Special 90834
Education Enhancements, $200,000 shall be used for a preschool 90835
special education pilot program in Bowling Green City School 90836
District.90837

       Of the foregoing appropriation item 200-540, Special 90838
Education Enhancements, $200,000 in each fiscal year shall be used 90839
to support the Bellefaire Jewish Children's Bureau.90840

        Of the foregoing appropriation item 200-540, Special90841
Education Enhancements, up to $79,194,060 in fiscal year 2006 and90842
up to $79,986,001 in fiscal year 2007 shall be distributed by the90843
Department of Education to county boards of mental retardation and90844
developmental disabilities, educational service centers, and90845
school districts for preschool special education units and90846
preschool supervisory units under section 3317.052 of the Revised 90847
Code. The Department may reimburse county boards of mental 90848
retardation and developmental disabilities, educational service 90849
centers, and school districts for related services as defined in 90850
rule 3301-51-11 of the Administrative Code, for preschool90851
occupational and physical therapy services provided by a physical90852
therapy assistant and certified occupational therapy assistant,90853
and for an instructional assistant. To the greatest extent 90854
possible, the Department of Education shall allocate these units 90855
to school districts and educational service centers.90856

       No physical therapy assistant who provides services under 90857
this section shall fail to practice in accordance with the 90858
requirements of Chapter 4755. of the Revised Code and rules 90859
4755-27-02 and 4755-27-03 of the Administrative Code. No 90860
occupational therapy assistant who provides services under this 90861
section shall fail to practice in accordance with the requirements 90862
of Chapter 4755. of the Revised Code and rules 4755-7-01 and 90863
4755-7-03 of the Administrative Code.90864

       The Department of Education shall require school districts,90865
educational service centers, and county MR/DD boards serving90866
preschool children with disabilities to document child progress90867
using research-based indicators prescribed by the Department and 90868
report results annually. The reporting dates and method shall be90869
determined by the Department.90870

       Of the foregoing appropriation item 200-540, Special 90871
Education Enhancements, up to $315,000 in each fiscal year shall 90872
be used for the Collaborative Language and Literacy Instruction 90873
Project.90874

       The remainder of appropriation item 200-540, Special90875
Education Enhancements, shall be used to fund special education 90876
and related services at county boards of mental retardation and 90877
developmental disabilities for eligible students under section 90878
3317.20 of the Revised Code and at institutions for eligible 90879
students under section 3317.201 of the Revised Code.90880

       Section 206.09.33. CAREER-TECHNICAL EDUCATION ENHANCEMENTS90881

       Of the foregoing appropriation item 200-545, Career-Technical90882
Education Enhancements, up to $2,436,070 in each fiscal year shall90883
be used to fund career-technical education units at institutions.90884

       Of the foregoing appropriation item 200-545, Career-Technical90885
Education Enhancements, up to $2,621,507 in each fiscal year shall 90886
be used by the Department of Education to fund competitive grants 90887
to tech prep consortia that expand the number of students enrolled 90888
in tech prep programs. These grant funds shall be used to directly90889
support expanded tech prep programs, including equipment, provided90890
to students enrolled in school districts, including joint90891
vocational school districts, and affiliated higher education90892
institutions.90893

       Of the foregoing appropriation item 200-545, Career-Technical90894
Education Enhancements, $943,873 in fiscal year 2006 shall be used 90895
to provide an amount to each eligible school district for the90896
replacement or updating of equipment essential for the instruction90897
of students in job skills taught as part of a career-technical90898
program or programs approved for such instruction by the State90899
Board of Education. School districts replacing or updating90900
career-technical education equipment may purchase or lease such90901
equipment. The Department of Education shall review and approve90902
all equipment requests and may allot appropriated funds to90903
eligible school districts on the basis of the number of full-time90904
equivalent workforce development teachers in all eligible90905
districts making application for funds.90906

        The State Board of Education may adopt standards of need for90907
equipment allocation. Pursuant to the adoption of any such90908
standards of need by the State Board of Education, appropriated90909
funds may be allotted to eligible districts according to such90910
standards. Equipment funds allotted under either process shall be90911
provided to a school district at 30, 40, or 50 per cent of cost on 90912
the basis of a rating developed by the Department of Education 90913
using the state share percentage as provided in division (B)(2) of 90914
section 3317.022 of the Revised Code.90915

       Of the foregoing appropriation item 200-545, Career-Technical90916
Education Enhancements, up to $3,401,000 in each fiscal year shall90917
be used by the Department of Education to support existing High 90918
Schools That Work (HSTW) sites, develop and support new sites,90919
fund technical assistance, and support regional centers and middle90920
school programs. The purpose of HSTW is to combine challenging90921
academic courses and modern career-technical studies to raise the 90922
academic achievement of students. HSTW provides intensive90923
technical assistance, focused staff development, targeted90924
assessment services, and ongoing communications and networking90925
opportunities.90926

       Of the foregoing appropriation item 200-545, Career-Technical 90927
Education Enhancements, up to $466,992 in each fiscal year shall 90928
be allocated for the Ohio Career Information System (OCIS) and 90929
used for the dissemination of career information data to public 90930
schools, libraries, rehabilitation centers, two- and four-year 90931
colleges and universities, and other governmental units.90932

       Of the foregoing appropriation item 200-545, Career-Technical90933
Educational Enhancements, up to $300,000 in each fiscal year shall 90934
be used by the Department of Education to enable students in90935
agricultural programs to enroll in a fifth quarter of instruction 90936
based on the agricultural education model of delivering work-based90937
learning through supervised agricultural experience. The90938
Department of Education shall determine eligibility criteria and 90939
the reporting process for the Agriculture 5th Quarter Project and 90940
shall fund as many programs as possible given the set aside.90941

       Section 206.09.36. FOUNDATION FUNDING90942

       The foregoing appropriation item 200-550, Foundation Funding,90943
includes $85,000,000 in each fiscal year for the state education90944
aid offset due to the change in public utility valuation as a90945
result of Am. Sub. S.B. 3 and Am. Sub. S.B. 287, both of the 123rd90946
General Assembly. This amount represents the total state education 90947
aid offset due to the valuation change for school districts and 90948
joint vocational school districts from all relevant appropriation90949
line item sources. Upon certification by the Department of 90950
Education, in consultation with the Department of Taxation, to the 90951
Director of Budget and Management of the actual state aid offset, 90952
the cash transfer from fund 053, appropriation item 200-900, 90953
School District Property Tax Replacement - Utility, shall be 90954
decreased or increased by the Director of Budget and Management to 90955
match the certification in accordance with section 5727.84 of the 90956
Revised Code.90957

       Of the foregoing appropriation item 200-550, Foundation90958
Funding, up to $425,000 shall be expended in each fiscal year for90959
court payments under section 2151.357 of the Revised Code; an 90960
amount shall be available in each fiscal year for the cost of 90961
reappraisal guarantee under section 3317.04 of the Revised Code; 90962
an amount shall be available in each fiscal year to fund up to 225 90963
full-time equivalent approved GRADS teacher grants under division 90964
(R) of section 3317.024 of the Revised Code; an amount shall be90965
available in each fiscal year to make payments to school districts 90966
under division (A)(3) of section 3317.022 of the Revised Code; an 90967
amount shall be available in each fiscal year to make payments to 90968
school districts under division (F) of section 3317.022 of the 90969
Revised Code; an amount shall be available in each fiscal year to 90970
make payments to school districts under division (C) of section 90971
3317.0212 of the Revised Code; and up to $30,000,000 in each 90972
fiscal year shall be reserved for payments under sections 90973
3317.026, 3317.027, and 3317.028 of the Revised Code except that 90974
the Controlling Board may increase the $30,000,000 amount if 90975
presented with such a request from the Department of Education. Of 90976
the foregoing appropriation item 200-550, Foundation Funding, up 90977
to $18,000,000 in fiscal year 2006 and up to $19,000,000 in fiscal 90978
year 2007 shall be used to provide additional state aid to school 90979
districts for special education students under division (C)(3) of 90980
section 3317.022 of the Revised Code; up to $2,000,000 in each 90981
fiscal year shall be reserved for Youth Services tuition payments90982
under section 3317.024 of the Revised Code; and up to $52,000,000 90983
in each fiscal year shall be reserved to fund the state 90984
reimbursement of educational service centers under section 3317.11 90985
of the Revised Code and the section of this act entitled 90986
"EDUCATIONAL SERVICE CENTERS FUNDING." An amount shall be 90987
available for special education weighted funding under division 90988
(C)(1) of section 3317.022 and division (D)(1) of section 3317.16 90989
of the Revised Code.90990

       Of the foregoing appropriation item 200-550, Foundation 90991
Funding, an amount shall be available in each fiscal year to be 90992
used by the Department of Education for transitional aid for 90993
school districts and joint vocational school districts. Funds 90994
shall be distributed under the sections of this act entitled 90995
"TRANSITIONAL AID FOR CITY, LOCAL, AND EXEMPTED VILLAGE SCHOOL 90996
DISTRICTS" AND "TRANSITIONAL AID FOR JOINT VOCATIONAL SCHOOL 90997
DISTRICTS."90998

       Of the foregoing appropriation item 200-550, Foundation90999
Funding, up to $1,000,000 in each fiscal year shall be used by the91000
Department of Education for a program to pay for educational91001
services for youth who have been assigned by a juvenile court or91002
other authorized agency to any of the facilities described in91003
division (A) of the section of this act entitled "PRIVATE 91004
TREATMENT FACILITY PROJECT."91005

       Of the foregoing appropriation item 200-550, Foundation91006
Funding, up to $3,700,000 in each fiscal year shall be used for 91007
school breakfast programs. Of this amount, up to $900,000 shall be 91008
used in each fiscal year by the Department of Education to 91009
contract with the Children's Hunger Alliance to expand access to 91010
child nutrition programs consistent with the organization's 91011
continued ability to meet specified performance measures as 91012
detailed in the contract. Of this amount, the Children's Hunger 91013
Alliance shall use at least $150,000 in each fiscal year to 91014
subcontract with an appropriate organization or organizations to 91015
expand summer food participation in underserved areas of the 91016
state, consistent with those organizations' continued ability to 91017
meet specified performance measures as detailed in the 91018
subcontracts. The remainder of the appropriation shall be used to 91019
partially reimburse school buildings within school districts that 91020
are required to have a school breakfast program under section 91021
3313.813 of the Revised Code, at a rate decided by the Department.91022

       Of the foregoing appropriation item 200-550, Foundation 91023
Funding, up to $8,800,000 in fiscal year 2006 and up to $8,600,000 91024
in fiscal year 2007 shall be used to operate the school choice 91025
program in the Cleveland Municipal School District under sections 91026
3313.974 to 3313.979 of the Revised Code.91027

       Of the portion of the funds distributed to the Cleveland 91028
Municipal School District under this section, up to $10,401,887 in 91029
fiscal year 2006 and up to $11,901,887 in fiscal year 2007 shall 91030
be used to operate the school choice program in the Cleveland 91031
Municipal School District under sections 3313.974 to 3313.979 of 91032
the Revised Code.91033

       The remaining portion of appropriation item 200-550, 91034
Foundation Funding, shall be expended for the public schools of 91035
city, local, exempted village, and joint vocational school 91036
districts, including base cost funding, special education speech 91037
service enhancement funding, career-technical education weight91038
funding, career-technical education associated service funding,91039
guarantee funding, teacher training and experience funding, 91040
poverty-based assistance, parity aid, charge-off supplement, and 91041
excess cost supplement under sections 3317.022, 3317.023, 91042
3317.029, 3317.0212, 3317.0216, 3317.0217, and 3317.16 of the 91043
Revised Code.91044

       Appropriation items 200-502, Pupil Transportation, 200-521, 91045
Gifted Pupil Program, 200-540, Special Education Enhancements, and 91046
200-550, Foundation Funding, other than specific set-asides, are 91047
collectively used in each fiscal year to pay state formula aid 91048
obligations for school districts and joint vocational school 91049
districts under Chapter 3317. of the Revised Code. The first 91050
priority of these appropriation items, with the exception of 91051
specific set-asides, is to fund state formula aid obligations 91052
under Chapter 3317. of the Revised Code. It may be necessary to 91053
reallocate funds among these appropriation items or use excess 91054
funds from other general revenue fund appropriation items in the 91055
Department of Education's budget in each fiscal year, in order to 91056
meet state formula aid obligations. If it is determined that it is 91057
necessary to transfer funds among these appropriation items or to 91058
transfer funds from other General Revenue Fund appropriations in 91059
the Department of Education's budget to meet state formula aid 91060
obligations, the Department of Education shall seek approval from 91061
the Controlling Board to transfer funds as needed.91062

       Section 206.09.37. DISTRICT SPENDING REQUIREMENTS91063

       The Department of Education shall review district spending 91064
requirements as specified in section 3317.029 of the Revised Code 91065
and shall submit a report recommending modifications by March 31, 91066
2007. Copies of the report shall be provided to the Director of 91067
Budget and Management, the Speaker of the House of 91068
Representatives, and the President of the Senate. The 91069
recommendations shall include decreasing degrees of flexibility of 91070
spending for districts not meeting adequate progress standards as 91071
defined by the Department of Education. Recommendations shall also 91072
specifically review the definition of class size reduction in 91073
division (J)(7) of section 3317.029 of the Revised Code. The 91074
reports submitted by school districts under the section of this 91075
act entitled "INTERVENTION FUNDING" shall be used to inform these 91076
recommendations.91077

       Section 206.09.39. TRANSITIONAL AID FOR CITY, LOCAL, AND 91078
EXEMPTED VILLAGE SCHOOL DISTRICTS91079

       (A) The Department of Education shall distribute funds within 91080
appropriation item 200-550, Foundation Funding, for transitional 91081
aid in each fiscal year to each qualifying city, local, and 91082
exempted village school district.91083

        In fiscal years 2006 and 2007, the Department shall pay 91084
transitional aid to each city, local, or exempted village school 91085
district that experiences any decrease in its SF-3 funding plus 91086
charge-off supplement for the current fiscal year from its SF-3 91087
funding plus charge-off supplement for the previous fiscal year. 91088
The amount of the transitional aid payment shall equal the 91089
difference between the district's SF-3 funding plus charge-off 91090
supplement for the current fiscal year and its SF-3 funding plus 91091
charge-off supplement for the previous fiscal year.91092

        (B)(1) Subject to divisions (B)(2) and (3) of this section, 91093
the "SF-3 funding plus charge-off supplement" for each city, 91094
local, and exempted village school district in fiscal years 2006 91095
and 2007 equals the sum of the following:91096

        (a) Base-cost funding under division (A) of section 3317.022 91097
of the Revised Code;91098

        (b) Special education and related services additional 91099
weighted funding under division (C)(1) of section 3317.022 of the 91100
Revised Code;91101

        (c) Speech services funding under division (C)(4) of section 91102
3317.022 of the Revised Code;91103

        (d) Vocational education additional weighted funding under 91104
division (E) of section 3317.022 of the Revised Code;91105

        (e) GRADS funding under division (R) of section 3317.024 of 91106
the Revised Code;91107

        (f) Adjustments for classroom teachers and educational 91108
service personnel under divisions (B), (C), and (D) of section 91109
3317.023 of the Revised Code;91110

        (g) Poverty-Based Assistance under section 3317.029 of the 91111
Revised Code;91112

        (h) Gifted education units under section 3317.05 of the 91113
Revised Code;91114

        (i) Transportation under the section of this act entitled 91115
"PUPIL TRANSPORTATION";91116

        (j) The excess cost supplement under division (F) of section 91117
3317.022 of the Revised Code;91118

        (k) Parity aid under section 3317.0217 of the Revised Code;91119

        (l) The reappraisal guarantee under division (C) of section 91120
3317.04 of the Revised Code;91121

        (m) The charge-off supplement under section 3317.0216 of the 91122
Revised Code.91123

        (2) For purposes of calculating transitional aid in fiscal 91124
year 2006, a district's fiscal year 2005 SF-3 funding plus 91125
charge-off supplement is the difference of (a) the sum of the 91126
amounts described in divisions (A) to (O) of Section 41.37 of Am. 91127
Sub. H.B. 95 of the 125th General Assembly, as amended, plus any 91128
transitional aid paid to the district under that section, that the 91129
district actually received in fiscal year 2005 minus (b) the 91130
amount of parity aid and the amount of disadvantaged pupil impact 91131
aid deducted that year under division (C)(6) of section 3314.08 of 91132
the Revised Code, as that section existed that year, and Section 91133
16 of Am. Sub. S.B. 2 of the 125th General Assembly on behalf of 91134
students entitled to attend school in the district who were 91135
enrolled in Internet- and computer-based community schools. For 91136
purposes of calculating transitional aid in fiscal year 2007, a 91137
district's fiscal year 2006 SF-3 funding plus charge-off 91138
supplement is the sum of the amounts described in divisions 91139
(B)(1)(a) to (n) of this section, plus any transitional aid paid 91140
to the district under this section, that the district actually 91141
received in fiscal year 2006.91142

        (3) The SF-3 funding plus charge-off supplement in each 91143
fiscal year for each district is the sum of the amounts specified 91144
in divisions (B)(1)(a) to (n) and (B)(2) of this section less any 91145
general revenue fund spending reductions ordered by the Governor 91146
under section 126.05 of the Revised Code.91147

        (C)(1) When calculating the reappraisal guarantee under 91148
division (C) or (D) of section 3317.04 of the Revised Code in 91149
fiscal year 2006, the Department shall:91150

       (a) Include in a school district's fiscal year 2005 payments 91151
any transitional aid paid to the district in fiscal year 2005 91152
under Section 41.37 of Am. Sub. H.B. 95 of the 125th General 91153
Assembly, as amended;91154

       (b) Subtract from a school district's fiscal year 2005 91155
payments the amount of parity aid and the amount of disadvantaged 91156
pupil impact aid deducted that year under division (C)(6) of 91157
section 3314.08 of the Revised Code, as that section existed that 91158
year, and Section 16 of Am. Sub. S.B. 2 of the 125th General 91159
Assembly on behalf of students entitled to attend school in the 91160
district who were enrolled in Internet- and computer-based 91161
community schools.91162

        (2) When calculating the reappraisal guarantee under division 91163
(C) or (D) of section 3317.04 of the Revised Code in fiscal year 91164
2007, the Department shall include in a school district's fiscal 91165
year 2006 payments any transitional aid paid to the district in 91166
fiscal year 2006 under this section.91167

        (3) When calculating the reappraisal guarantee under division 91168
(C) or (D) of section 3317.04 of the Revised Code in fiscal year 91169
2008, the Department shall include in a school district's fiscal 91170
year 2007 payments any transitional aid paid to the district in 91171
fiscal year 2007 under this section. 91172

       Section 206.09.42. TRANSITIONAL AID FOR JOINT VOCATIONAL 91173
SCHOOL DISTRICTS91174

        (A) The Department of Education shall distribute funds within 91175
appropriation item 200-550, Foundation Funding, for transitional 91176
aid in each fiscal year to each joint vocational school district 91177
that experiences a decrease in its joint vocational funding for 91178
the current fiscal year from the previous fiscal year. The 91179
Department shall distribute to each such district transitional aid 91180
in an amount equal to the decrease in the district's joint 91181
vocational funding from the previous fiscal year.91182

        (B)(1) Subject to divisions (B)(2) and (3) of this section, a 91183
district's joint vocational funding equals the sum of the 91184
following:91185

        (a) Base-cost funding under division (B) of section 3317.16 91186
of the Revised Code;91187

        (b) Special education and related services additional 91188
weighted funding under division (D)(1) of section 3317.16 of the 91189
Revised Code;91190

        (c) Speech services funding under division (D)(2) of section 91191
3317.16 of the Revised Code;91192

        (d) Vocational education additional weighted funding under 91193
division (C) of section 3317.16 of the Revised Code;91194

        (e) GRADS funding under division (R) of section 3317.024 of 91195
the Revised Code;91196

        (f) The state aid guarantee under division (H) of section 91197
3317.16 of the Revised Code.91198

        (2) For purposes of calculating transitional aid in fiscal 91199
year 2007, a district's fiscal year 2006 joint vocational funding 91200
is the sum of the amounts described in divisions (B)(1)(a) to (f) 91201
of this section, plus any transitional aid paid to the district 91202
under this section, that the district actually received in fiscal 91203
year 2006.91204

        (3) The joint vocational funding in each fiscal year for each 91205
district is the sum of the amounts specified in divisions 91206
(B)(1)(a) to (f) and (B)(2) of this section less any general 91207
revenue fund spending reductions ordered by the Governor under 91208
section 126.05 of the Revised Code.91209

       EMERGENCY LOAN INTEREST SUBSIDY91210

       The foregoing appropriation item 200-558, Emergency Loan91211
Interest Subsidy, shall be used to provide a subsidy to school91212
districts receiving emergency school loans pursuant to section91213
3313.484 of the Revised Code. The subsidy shall be used to pay91214
these districts the difference between the amount of interest the91215
district is paying on an emergency loan, and the interest that the91216
district would have paid if the interest rate on the loan had been91217
two per cent.91218

       Section 206.09.45. READING/WRITING IMPROVEMENT-CLASSROOM 91219
GRANTS91220

        The foregoing appropriation item 200-566, Reading/Writing 91221
Improvement-Classroom Grants, shall be disbursed by the Department 91222
of Education to provide reading improvement grants to public 91223
schools in city, local, and exempted village school districts;91224
community schools; and educational service centers serving 91225
kindergarten through twelfth grade students to help struggling 91226
students improve their reading skills, improve reading outcomes in 91227
low-performing schools, and help close achievement gaps.91228

       SAFE AND SUPPORTIVE SCHOOLS91229

       Of the foregoing appropriation item 200-578, Safe and 91230
Supportive Schools, up to $224,250 in each fiscal year shall be 91231
used to fund a safe school center to provide resources for parents 91232
and for school and law enforcement personnel.91233

       The remainder of the appropriation shall be distributed based 91234
on guidelines developed by the Department of Education to enhance 91235
school safety. The guidelines shall provide a list of 91236
research-based best practices and programs from which local 91237
grantees shall select based on local needs. These practices shall 91238
include, but not be limited to, school resource officers and safe 91239
and drug free school coordinators and social-emotional development 91240
programs. 91241

       Section 206.09.48. PROPERTY TAX ALLOCATION - EDUCATION91242

       The Superintendent of Public Instruction shall not request,91243
and the Controlling Board shall not approve, the transfer of funds91244
from appropriation item 200-901, Property Tax Allocation - 91245
Education, to any other appropriation item.91246

       The appropriation item 200-901, Property Tax Allocation -91247
Education, is appropriated to pay for the state's costs incurred91248
because of the homestead exemption and the property tax rollback. 91249
In cooperation with the Department of Taxation, the Department of91250
Education shall distribute these funds directly to the appropriate91251
school districts of the state, notwithstanding sections 321.24 and91252
323.156 of the Revised Code, which provide for payment of the91253
homestead exemption and property tax rollback by the Tax91254
Commissioner to the appropriate county treasurer and the91255
subsequent redistribution of these funds to the appropriate local91256
taxing districts by the county auditor.91257

       Appropriation item 200-906, Tangible Tax Exemption -91258
Education, is appropriated to pay for the state's costs incurred 91259
because of the tangible personal property tax exemption required 91260
by division (C)(3) of section 5709.01 of the Revised Code. In91261
cooperation with the Department of Taxation, the Department of91262
Education shall distribute to each county treasurer the total91263
amount appearing in the notification from the county treasurer91264
under division (G) of section 321.24 of the Revised Code, for all91265
school districts located in the county, notwithstanding section 91266
321.24 of the Revised Code insofar as it provides for payment of 91267
the $10,000 tangible personal property tax exemption by the Tax91268
Commissioner to the appropriate county treasurer for all local 91269
taxing districts located in the county. Pursuant to division (G) 91270
of section 321.24 of the Revised Code, the county auditor shall 91271
distribute the amount paid by the Department of Education among 91272
the appropriate school districts.91273

       Upon receipt of these amounts, each school district shall91274
distribute the amount among the proper funds as if it had been91275
paid as real or tangible personal property taxes. Payments for the 91276
costs of administration shall continue to be paid to the county 91277
treasurer and county auditor as provided for in sections 319.54, 91278
321.26, and 323.156 of the Revised Code.91279

       Any sums, in addition to the amounts specifically91280
appropriated in appropriation items 200-901, Property Tax91281
Allocation - Education, for the homestead exemption and the91282
property tax rollback payments, and 200-906, Tangible Tax91283
Exemption - Education, for the $10,000 tangible personal property91284
tax exemption payments, which are determined to be necessary for91285
these purposes, are hereby appropriated.91286

       Section 206.09.51.  TEACHER CERTIFICATION AND LICENSURE91287

       The foregoing appropriation item 200-681, Teacher91288
Certification and Licensure, shall be used by the Department of91289
Education in each year of the biennium to administer and support 91290
teacher certification and licensure activities.91291

       SCHOOL DISTRICT SOLVENCY ASSISTANCE91292

       Of the foregoing appropriation item 200-687, School District91293
Solvency Assistance, $9,000,000 in each fiscal year shall be91294
allocated to the School District Shared Resource Account and91295
$9,000,000 in each fiscal year shall be allocated to the91296
Catastrophic Expenditures Account. These funds shall be used to91297
provide assistance and grants to school districts to enable them91298
to remain solvent under section 3316.20 of the Revised Code.91299
Assistance and grants shall be subject to approval by the91300
Controlling Board. Any required reimbursements from school91301
districts for solvency assistance shall be made to the appropriate91302
account in the School District Solvency Assistance Fund (Fund 91303
5H3).91304

       Notwithstanding any provision of law to the contrary, upon 91305
the request of the Superintendent of Public Instruction, the 91306
Director of Budget and Management may make transfers to the School 91307
District Solvency Assistance Fund (Fund 5H3) from any Department 91308
of Education-administered fund or the General Revenue Fund to 91309
maintain sufficient cash balances in the School District Solvency 91310
Assistance Fund (Fund 5H3) in fiscal years 2006 and 2007. Any 91311
funds transferred are hereby appropriated. The transferred funds 91312
may be used by the Department of Education to provide assistance 91313
and grants to school districts to enable them to remain solvent 91314
and to pay unforeseeable expenses of a temporary or emergency 91315
nature that the school district is unable to pay from existing 91316
resources. The Director of Budget and Management shall notify the 91317
members of the Controlling Board of any such transfers.91318

        READING FIRST91319

        The foregoing appropriation item 200-632, Reading First, 91320
shall be used by school districts to administer federal diagnostic 91321
tests as well as other functions permitted by federal statute. 91322
Notwithstanding section 3301.079 of the Revised Code, federal 91323
diagnostic tests may be recognized as meeting the state diagnostic 91324
testing requirements outlined in section 3301.079 of the Revised 91325
Code.91326

        HALF-MILL MAINTENANCE EQUALIZATION91327

        The foregoing appropriation item 200-626, Half-Mill 91328
Maintenance Equalization, shall be used in fiscal year 2007 to 91329
make payments pursuant to section 3318.18 of the Revised Code.91330

       Section 206.09.54. EARLY LEARNING INITIATIVE91331

       (A) As used in this section:91332

       (1) "Title IV-A services" means benefits and services that 91333
are allowable under Title IV-A of the "Social Security Act," as 91334
specified in 42 U.S.C. 604(a), except that they shall not be 91335
benefits and services included in the term "assistance" as defined 91336
in 45 C.F.R. 260.31(a) and shall be benefits and services that are 91337
excluded from the definition of the term "assistance" under 45 91338
C.F.R. 260.31(b).91339

       (2) "Title IV-A funds" means funds provided under the 91340
temporary assistance for needy families block grant established by 91341
Title IV-A of the "Social Security Act," 110 Stat. 2113 (1996), 42 91342
U.S.C. 601, as amended.91343

       (3) "Child care" has the same meaning as in section 5104.01 91344
of the Revised Code.91345

       (4) "Eligible child" means a child who is at least three 91346
years of age but not of compulsory school age or enrolled in 91347
kindergarten, is eligible for Title IV-A services, and whose 91348
family income does not exceed one hundred eighty-five per cent of 91349
the federal poverty line at application. If the family income of a 91350
child receiving early learning services under this section exceeds 91351
one hundred ninety-five per cent of the federal poverty line, the 91352
child ceases to be eligible for an early learning program.91353

       (5) "Early learning program" means a program for eligible 91354
children that is funded with Title IV-A funds and provides Title 91355
IV-A services that are both of the following:91356

       (a) Early learning services, as defined by the Department of 91357
Education pursuant to division (C)(1) of this section;91358

       (b) Child care.91359

       (6) "Early learning provider" means an entity that is 91360
receiving Title IV-A funds to operate an early learning program.91361

       (7) "Early learning agency" means an early learning provider 91362
or an entity that has entered into an agreement with an early 91363
learning provider requiring the early learning provider to operate 91364
an early learning program on behalf of the entity.91365

       (8) "Federal poverty line" has the same meaning as in section 91366
5104.01 of the Revised Code.91367

       (9) "Of compulsory school age" has the same meaning as in 91368
section 3321.01 of the Revised Code.91369

       (B) The Early Learning Initiative is hereby established. The 91370
Initiative shall be administered by the Department of Education 91371
and the Department of Job and Family Services in accordance with 91372
sections 5101.80 and 5101.801 of the Revised Code. The Initiative 91373
shall provide early learning programs and child care to eligible 91374
children. Early learning programs may provide early learning 91375
services on a full-day basis, a part-day basis, or both a full-day 91376
and part-day basis.91377

       (C) The Department of Education shall do all of the 91378
following:91379

       (1) Define the early learning services that will be provided 91380
to eligible children through the Early Learning Initiative;91381

       (2) In consultation with the Department of Job and Family 91382
Services, develop an application form and criteria for the 91383
selection of early learning agencies. The criteria shall require 91384
an early learning agency, or each early learning provider with 91385
which the agency has entered into an agreement for the operation 91386
of an early learning program on the agency's behalf, to be 91387
licensed or certified by the Department of Education under 91388
sections 3301.52 to 3301.59 of the Revised Code or by the 91389
Department of Job and Family Services under Chapter 5104. of the 91390
Revised Code.91391

       (3) Establish early learning program guidelines for school 91392
readiness to assess the operation of early learning programs.91393

       (D) Any entity that seeks to be an early learning agency 91394
shall apply to the Department of Education by a deadline 91395
established by the Department. The Department of Education shall 91396
select entities that meet the criteria established under division 91397
(C)(2) of this section to be early learning agencies. Upon 91398
selection of an entity to be an early learning agency, the 91399
Department of Education shall designate the number of eligible 91400
children the agency will serve. The Department of Education shall 91401
notify the Office of Budget and Management and the Department of 91402
Job and Family Services of the number so designated.91403

       (E) The Department of Education and the Department of Job and 91404
Family Services shall enter into a contract with each early 91405
learning agency selected under division (D) of this section. The 91406
contract shall outline the terms and conditions applicable to the 91407
provision of Title IV-A services for eligible children and shall 91408
include at least the following:91409

       (1) The respective duties of the early learning agency, the 91410
Department of Education, and the Department of Job and Family 91411
Services;91412

       (2) Requirements applicable to the allowable use of and 91413
accountability for Title IV-A funds;91414

       (3) A requirement that the amount used by the early learning 91415
agency for development and administrative costs shall not exceed 91416
fifteen per cent of the total approved costs for the early 91417
learning program;91418

       (4) Reporting requirements, including a requirement that the 91419
early learning provider inform the Department of Education when 91420
the provider learns that a kindergarten eligible child will not be 91421
enrolled in kindergarten;91422

       (5) The reimbursement methodology, including a requirement 91423
that reimbursement shall be based upon the weekly attendance rate 91424
of each eligible child, which shall be consistent with the rules 91425
adopted pursuant to division (C)(3) of Section 206.67.12 of this 91426
act;91427

       (6) Audit requirements;91428

       (7) Provisions for suspending, modifying, or terminating the 91429
contract;91430

       (8) A requirement that a child enrolled in a Head Start Plus 91431
program during fiscal year 2005 be given higher priority if the 91432
child is an eligible child and enrolls in an early learning 91433
program.91434

       The requirements of section 127.16 of the Revised Code do not 91435
apply to contracts entered into under this section.91436

       (F) If an early learning agency, or an early learning 91437
provider operating an early learning program on the agency's 91438
behalf, substantially fails to meet the early learning program 91439
guidelines for school readiness or exhibits below average 91440
performance, as determined by the Department of Education, the 91441
agency shall develop and implement a corrective action plan. The 91442
Department of Education shall approve the corrective action plan 91443
prior to implementation.91444

       (G) If an early learning agency fails to implement a 91445
corrective action plan under division (F) of this section, the 91446
Department of Education may direct the Department of Job and 91447
Family Services to withhold funding from the agency or either the 91448
Department of Education or the Department of Job and Family 91449
Services may suspend or terminate the contract with the agency.91450

       (H) Each early learning program shall do all of the 91451
following:91452

        (1) Meet teacher qualification requirements prescribed by 91453
section 3301.311 of the Revised Code;91454

        (2) Align curriculum to the early learning content standards;91455

        (3) Meet any assessment requirements prescribed by section 91456
3301.0715 of the Revised Code that apply to the program;91457

        (4) Require teachers, except teachers enrolled and working to 91458
obtain a degree pursuant to section 3301.311 of the Revised Code, 91459
to attend a minimum of twenty hours per year of professional 91460
development as prescribed by the Department of Education regarding 91461
the implementation of content standards and assessments;91462

        (5) Document and report child progress;91463

        (6) Meet and report compliance with the early learning 91464
program guidelines for school success.91465

       (I) Of the foregoing appropriation item 200-663, Early 91466
Learning Initiative, up to $2,200,000 in each fiscal year may be 91467
used by the Department of Education to perform administrative 91468
functions for the Early Learning Initiative. The Director of 91469
Budget and Management may transfer appropriation, as needed, from 91470
the Department of Education, appropriation item 200-663, Early 91471
Learning Initiative in Fund 5W2, to the Department of Job and 91472
Family Services, appropriation item 600-689, TANF Block Grant in 91473
Fund 3V6, for the successful operation of the Early Learning 91474
Initiative. This transfer shall take place not less than fifteen 91475
days after the Department of Education has provided the Office of 91476
Budget and Management and the Department of Job and Family 91477
Services its determination as to the number of children to be 91478
served by each early learning agency under division (D) of this 91479
section. The appropriation transferred is hereby authorized.91480

       START-UP FUNDS91481

        Funds appropriated for the purpose of providing start-up 91482
grants to Title IV-A Head Start and Title IV-A Head Start Plus 91483
agencies in fiscal year 2004 and fiscal year 2005 for the 91484
provision of services to children eligible for Title IV-A services 91485
under the Title IV-A Head Start or Title IV-A Head Start Plus 91486
programs shall be reimbursed to the General Revenue Fund as 91487
follows:91488

        (A) If, for fiscal year 2006, an entity that was a Title IV-A 91489
Head Start or Title IV-A Head Start Plus agency will not be an 91490
early learning agency or early learning provider, the entity shall 91491
repay the entire amount of the start-up grant it received in 91492
fiscal year 2004 and fiscal year 2005 not later than June 30, 91493
2007, in accordance with a payment schedule agreed to by the 91494
Department of Education.91495

        (B) If, for fiscal year 2006, an entity that was a Title IV-A 91496
Head Start or Title IV-A Head Start Plus agency will be an early 91497
learning agency or early learning provider and the number of 91498
eligible children served beginning in fiscal year 2006 is less 91499
than the number for which the start-up grant was based, the amount 91500
of reimbursement shall be adjusted based on the number of eligible 91501
children who will be served by the entity in fiscal year 2006 and 91502
the rate of reimbursement for the early learning program set by 91503
the Department of Job and Family Services. The entity shall repay 91504
the amount determined pursuant to this division by not later than 91505
June 30, 2007, in accordance with a payment schedule agreed to by 91506
the Department of Education.91507

        (C) If, for fiscal year 2006, an entity that was a Title IV-A 91508
Head Start or Title IV-A Head Start Plus agency will be an early 91509
learning agency or early learning provider and the number of 91510
eligible children served beginning in fiscal year 2006 is greater 91511
than or equal to the number for which the start-up grants were 91512
based, the entity shall be allowed to retain the total amount of 91513
the start-up grant it received.91514

        (D) Within ninety days after the effective date of this 91515
section, the Title IV-A Head Start agencies, Title IV-A Head Start 91516
Plus agencies, and the Department of Education shall determine the 91517
amounts of the start-up grants to be repaid and within thirty days 91518
thereafter determine the repayment schedule for such amounts. The 91519
Department of Education shall refer any amounts remaining due and 91520
payable to the state after June 30, 2007, to the Attorney General 91521
for collection under section 131.02 of the Revised Code.91522

        (E) Any start-up grants that are retained by early learning 91523
agencies or early learning providers pursuant to this section 91524
shall be reimbursed to the General Revenue Fund when the early 91525
learning program ceases or is no longer funded from Title IV-A or 91526
if an early learning agency's or early learning provider's 91527
participation in the early learning program ceases.91528

       Section 206.09.55. AUXILIARY SERVICES REIMBURSEMENT91529

       Notwithstanding section 3317.064 of the Revised Code, if the91530
unobligated cash balance is sufficient, the Treasurer of State91531
shall transfer $1,500,000 in fiscal year 2006 within thirty days91532
after the effective date of this section, and $1,500,000 in fiscal91533
year 2007 by August 1, 2006, from the Auxiliary Services Personnel91534
Unemployment Compensation Fund to the Department of Education's91535
Auxiliary Services Reimbursement Fund (Fund 598).91536

       Section 206.09.57.  LOTTERY PROFITS EDUCATION FUND91537

       Appropriation item 200-612, Foundation Funding (Fund 017),91538
shall be used in conjunction with appropriation item 200-550, 91539
Foundation Funding (GRF), to provide payments to school districts91540
under Chapter 3317. of the Revised Code.91541

       The Department of Education, with the approval of the91542
Director of Budget and Management, shall determine the monthly91543
distribution schedules of appropriation item 200-550, Foundation91544
Funding (GRF), and appropriation item 200-612, Foundation Funding91545
(Fund 017). If adjustments to the monthly distribution schedule91546
are necessary, the Department of Education shall make such91547
adjustments with the approval of the Director of Budget and91548
Management.91549

       The Director of Budget and Management shall transfer via91550
intrastate transfer voucher the amount appropriated under the91551
Lottery Profits Education Fund for appropriation item 200-682,91552
Lease Rental Payment Reimbursement, to the General Revenue Fund on91553
a schedule determined by the director. These funds shall support91554
the appropriation item 230-428, Lease Rental Payments (GRF), of91555
the School Facilities Commission.91556

       Section 206.09.60.  LOTTERY PROFITS EDUCATION RESERVE FUND91557

       (A) There is hereby created the Lottery Profits Education91558
Reserve Fund (Fund 018) in the State Treasury. Investment earnings91559
of the Lottery Profits Education Reserve Fund shall be credited to91560
the fund. The Superintendent of Public Instruction may certify 91561
cash balances exceeding $75,000,000 in the Lottery Profits 91562
Education Reserve Fund (Fund 018) to the Director of Budget and 91563
Management in June of any given fiscal year. Prior to making the 91564
certification, the Superintendent of Public Instruction shall 91565
determine whether the funds above the $75,000,000 threshold are 91566
needed to help pay for foundation program obligations for that 91567
fiscal year under Chapter 3317. of the Revised Code. If those 91568
funds are needed for the foundation program, the Superintendent of 91569
Public Instruction shall notify and consult with the Director of 91570
Budget and Management to determine the amount that may be 91571
transferred to the Public School Building Fund (Fund 021). Upon 91572
this determination, the Director of Budget and Management shall 91573
transfer the amount from the Lottery Profits Education Reserve 91574
Fund (Fund 018) to the Public School Building Fund (Fund 021). The 91575
amount transferred is hereby appropriated to appropriation item 91576
CAP-622, Public School Buildings.91577

        For fiscal years 2006 and 2007, notwithstanding any 91578
provisions of law to the contrary, amounts necessary to make loans91579
authorized by sections 3317.0210, 3317.0211, and 3317.62 of the91580
Revised Code are hereby appropriated to the Lottery Profits91581
Education Reserve Fund (Fund 018). Loan repayments from loans made 91582
in previous years shall be deposited to the fund.91583

       (B) On July 15, 2005, or as soon as possible thereafter, the 91584
Director of the Ohio Lottery Commission shall certify to the 91585
Director of Budget and Management the amount by which lottery 91586
profit transfers received by the Lottery Profits Education Fund 91587
(Fund 017) exceeded $637,900,000 in fiscal year 2005. The Director 91588
of Budget and Management shall transfer the amount so certified, 91589
plus the cash balance in Fund 017, to the Lottery Profits 91590
Education Reserve Fund (Fund 018).91591

       (C) On July 15, 2006, or as soon as possible thereafter, the 91592
Director of the Ohio Lottery Commission shall certify to the 91593
Director of Budget and Management the amount by which lottery 91594
profit transfers received by the Lottery Profits Education Fund 91595
(Fund 017) exceeded $637,900,000 in fiscal year 2006. The Director 91596
of Budget and Management shall transfer the amount so certified, 91597
plus the cash balance in Fund 017, to the Lottery profits 91598
Education Reserve Fund (Fund 018).91599

       (D) Any amounts transferred under division (B) or (C) of this 91600
section may be made available by the Controlling Board in fiscal 91601
years 2006 or 2007, at the request of the Superintendent of Public 91602
Instruction, to provide assistance and grants to school districts 91603
to enable them to remain solvent and to pay unforeseeable expenses 91604
of a temporary or emergency nature that they are unable to pay 91605
from existing resources under section 3316.20 of the Revised Code, 91606
and to provide payments to school districts under Chapter 3317. of 91607
the Revised Code.91608

       Section 206.09.61. GENERAL REVENUE FUND TRANSFERS TO SCHOOL 91609
DISTRICT PROPERTY TAX REPLACEMENT – BUSINESS (FUND 047)91610

       Notwithstanding any provision of law to the contrary, the 91611
Director of Budget and Management shall transfer $10,010,000 in 91612
fiscal year 2006 and $70,210,000 in fiscal year 2007 from the 91613
General Revenue Fund to appropriation item 200-909, School 91614
District Property Tax Replacement – Business (Fund 047) in the 91615
Department of Education. The funds shall be used to reimburse 91616
school districts and joint vocational districts under section 91617
5751.21 of the Revised Code.91618

       Section 206.09.63. SCHOOL DISTRICT PROPERTY TAX REPLACEMENT - 91619
BUSINESS91620

       The foregoing appropriation item, 200-909, School District 91621
Property Tax Replacement – Business, in Fund 047, shall be used by 91622
the Department of Education, in consultation with the Department 91623
of Taxation, to make payments to school districts and joint 91624
vocational school districts under section 5751.21 of the Revised 91625
Code.91626

       SCHOOL DISTRICT PROPERTY TAX REPLACEMENT - UTILITY91627

       The foregoing appropriation item 200-900, School District91628
Property Tax Replacement-Utility, in Fund 053, shall be used by 91629
the Department of Education, in consultation with the Department 91630
of Taxation, to make payments to school districts and joint 91631
vocational school districts under section 5727.85 of the Revised 91632
Code.91633

       *       Section 206.09.66. DISTRIBUTION FORMULAS91634

       The Department of Education shall report the following to the91635
Director of Budget and Management, the Legislative Office of91636
Education Oversight, and the Legislative Service Commission:91637

       (A) Changes in formulas for distributing state91638
appropriations, including administratively defined formula91639
factors;91640

       (B) Discretionary changes in formulas for distributing91641
federal appropriations;91642

       (C) Federally mandated changes in formulas for distributing91643
federal appropriations.91644

       Any such changes shall be reported two weeks prior to the91645
effective date of the change.91646

       Section 206.09.69.  EDUCATIONAL SERVICE CENTERS FUNDING91647

       (A) As used in this section:91648

       (1) "Internet- or computer-based community school" has the 91649
same meaning as in section 3314.02 of the Revised Code.91650

       (2) "Service center ADM" has the same meaning as in section 91651
3317.11 of the Revised Code.91652

        (B) Notwithstanding division (F) of section 3317.11 of the91653
Revised Code, no funds shall be provided under that division to an 91654
educational service center in either fiscal year for any pupils of 91655
a city or exempted village school district unless an agreement to 91656
provide services under section 3313.843 of the Revised Code was 91657
entered into by January 1, 1997, except that funds shall be 91658
provided to an educational service center for any pupils of a city 91659
school district if the agreement to provide services was entered 91660
into within one year of the date upon which such district changed 91661
from a local school district to a city school district. 91662

       (C) Notwithstanding any provision of the Revised Code to the 91663
contrary, an educational service center that sponsors a community 91664
school under Chapter 3314. of the Revised Code in either fiscal 91665
year may include the students of that community school in its 91666
service center ADM for purposes of state funding under division 91667
(F) of section 3317.11 of the Revised Code, unless the community 91668
school is an Internet- or computer-based community school. A 91669
service center shall include the community school students in its 91670
service center ADM only to the extent that the students are not 91671
already so included, and only in accordance with guidelines issued 91672
by the Department of Education. If the students of a community 91673
school sponsored by an educational service center are included in 91674
the service center ADM of another educational service center, 91675
those students shall be removed from the service center ADM of the 91676
other educational service center and added to the service center 91677
ADM of the community school's sponsoring service center. The 91678
General Assembly authorizes this procedure as an incentive for 91679
educational service centers to take over sponsorship of community 91680
schools from the State Board of Education as the State Board's 91681
sponsorship is phased out in accordance with Sub. H.B. 364 of the 91682
124th General Assembly. No student of an Internet- or 91683
computer-based community school shall be counted in the service 91684
center ADM of any educational service center. The Department shall 91685
pay educational service centers under division (F) of section 91686
3317.11 of the Revised Code for community school students included 91687
in their service center ADMs under this division only if 91688
sufficient funds earmarked within appropriation item 200-550, 91689
Foundation Funding, for payments under that division remain after 91690
first paying for students attributable to their local and client 91691
school districts, in accordance with divisions (B) and (D) of this 91692
section.91693

       (D) If insufficient funds are earmarked within appropriation 91694
item 200-550, Foundation Funding, for payments under division (F) 91695
of section 3317.11 of the Revised Code and division (C) of this 91696
section in fiscal year 2006 or fiscal year 2007, the Department 91697
shall prioritize the distribution of the earmarked funds as 91698
follows:91699

       (1) The Department shall first distribute to each educational 91700
service center the per-student amount specified in division (F) of 91701
section 3317.11 of the Revised Code for each student in its91702
service center ADM attributable to the local school districts 91703
within the service center's territory.91704

       (2) The Department shall distribute the remaining funds in 91705
each fiscal year to each educational service center for the 91706
students in its service center ADM attributable to each city and91707
exempted village school district that had entered into an91708
agreement with an educational service center for that fiscal year91709
under section 3313.843 of the Revised Code by January 1, 1997, up 91710
to the per-student amount specified in division (F) of section 91711
3317.11 of the Revised Code. If insufficient funds remain to pay 91712
each service center the full amount specified in division (F) of 91713
that section for each such student, the Department shall 91714
distribute the remaining funds to each service center 91715
proportionally, on a per-student basis for each such student, 91716
unless that proportional per-student amount exceeds the amount 91717
specified in division (F)(1) of that section. In that case, the 91718
Department shall distribute the per-student amount specified in 91719
division (F)(1) of that section to each service center for each 91720
such student and shall distribute the remainder proportionally, on 91721
a per-student basis for each such student, to the multi-county 91722
service centers described in division (F)(2) of that section.91723

       (3) If the Department has paid each service center under 91724
divisions (D)(1) and (2) of this section, the full amount 91725
specified in division (F) of section 3317.11 of the Revised Code 91726
for each student attributable to its local school districts and 91727
its client school districts described in division (D)(2) of this 91728
section the Department shall distribute any remaining funds 91729
proportionally, on a per-student basis, to each service center 91730
that sponsors a community school, other than an Internet- or 91731
computer-based community school, for the students included in the 91732
service center ADM under division (C) of this section. These 91733
payments shall not exceed per student the amount specified in 91734
division (F) of section 3317.11 of the Revised Code.91735

       *       Section 206.09.72. For the school year commencing July 1,91736
2005, or the school year commencing July 1, 2006, or both, the91737
Superintendent of Public Instruction may waive for the board of91738
education of any school district the ratio of teachers to pupils91739
in kindergarten through fourth grade required under paragraph91740
(A)(3) of rule 3301-35-05 of the Administrative Code if the91741
following conditions apply:91742

       (A) The board of education requests the waiver.91743

       (B) After the Department of Education conducts an on-site91744
evaluation of the district related to meeting the required ratio,91745
the board of education demonstrates to the satisfaction of the91746
Superintendent of Public Instruction that providing the facilities91747
necessary to meet the required ratio during the district's regular91748
school hours with pupils in attendance would impose an extreme91749
hardship on the district.91750

       (C) The board of education provides assurances that are91751
satisfactory to the Superintendent of Public Instruction that the91752
board will act in good faith to meet the required ratio as soon as91753
possible.91754

       Section 206.09.75.  PRIVATE TREATMENT FACILITY PROJECT91755

       (A) As used in this section:91756

       (1) The following are "participating residential treatment91757
centers":91758

       (a) Private residential treatment facilities that have91759
entered into a contract with the Department of Youth Services to91760
provide services to children placed at the facility by the91761
Department and which, in fiscal year 2006 or fiscal year 2007 or 91762
both, the Department pays through appropriation item 470-401, Care 91763
and Custody;91764

       (b) Abraxas, in Shelby;91765

       (c) Paint Creek, in Bainbridge;91766

       (d) Act One, in Akron;91767

       (e) Friars Club, in Cincinnati.91768

       (2) "Education program" means an elementary or secondary91769
education program or a special education program and related91770
services.91771

       (3) "Served child" means any child receiving an education91772
program pursuant to division (B) of this section.91773

       (4) "School district responsible for tuition" means a city,91774
exempted village, or local school district that, if tuition91775
payment for a child by a school district is required under law91776
that existed in fiscal year 1998, is the school district required91777
to pay that tuition.91778

       (5) "Residential child" means a child who resides in a91779
participating residential treatment center and who is receiving an91780
educational program under division (B) of this section.91781

       (B) A youth who is a resident of the state and has been91782
assigned by a juvenile court or other authorized agency to a91783
residential treatment facility specified in division (A) of this91784
section shall be enrolled in an approved educational program91785
located in or near the facility. Approval of the educational91786
program shall be contingent upon compliance with the criteria91787
established for such programs by the Department of Education. The91788
educational program shall be provided by a school district or91789
educational service center, or by the residential facility itself.91790
Maximum flexibility shall be given to the residential treatment91791
facility to determine the provider. In the event that a voluntary91792
agreement cannot be reached and the residential facility does not91793
choose to provide the educational program, the educational service91794
center in the county in which the facility is located shall91795
provide the educational program at the treatment center to91796
children under twenty-two years of age residing in the treatment91797
center.91798

       (C) Any school district responsible for tuition for a91799
residential child shall, notwithstanding any conflicting provision91800
of the Revised Code regarding tuition payment, pay tuition for the91801
child for fiscal year 2006 and fiscal year 2007 to the education 91802
program provider and in the amount specified in this division. If 91803
there is no school district responsible for tuition for a 91804
residential child and if the participating residential treatment 91805
center to which the child is assigned is located in the city, 91806
exempted village, or local school district that, if the child were 91807
not a resident of that treatment center, would be the school 91808
district where the child is entitled to attend school under 91809
sections 3313.64 and 3313.65 of the Revised Code, that school 91810
district, notwithstanding any conflicting provision of the Revised91811
Code, shall pay tuition for the child for fiscal year 2006 and 91812
fiscal year 2007 under this division unless that school district 91813
is providing the educational program to the child under division 91814
(B) of this section.91815

       A tuition payment under this division shall be made to the91816
school district, educational service center, or residential91817
treatment facility providing the educational program to the child.91818

       The amount of tuition paid shall be:91819

       (1) The amount of tuition determined for the district under91820
division (A) of section 3317.08 of the Revised Code;91821

       (2) In addition, for any student receiving special education91822
pursuant to an individualized education program as defined in91823
section 3323.01 of the Revised Code, a payment for excess costs.91824
This payment shall equal the actual cost to the school district,91825
educational service center, or residential treatment facility of91826
providing special education and related services to the student91827
pursuant to the student's individualized education program, minus91828
the tuition paid for the child under division (C)(1) of this91829
section.91830

       A school district paying tuition under this division shall91831
not include the child for whom tuition is paid in the district's91832
average daily membership certified under division (A) of section91833
3317.03 of the Revised Code.91834

       (D) In each of fiscal years 2006 and 2007, the Department of91835
Education shall reimburse, from appropriations made for the91836
purpose, a school district, educational service center, or91837
residential treatment facility, whichever is providing the91838
service, that has demonstrated that it is in compliance with the91839
funding criteria for each served child for whom a school district91840
must pay tuition under division (C) of this section. The amount of91841
the reimbursement shall be the formula amount specified in section91842
3317.022 of the Revised Code, except that the department shall91843
proportionately reduce this reimbursement if sufficient funds are 91844
not available to pay this amount to all qualified providers.91845

       (E) Funds provided to a school district, educational service91846
center, or residential treatment facility under this section shall91847
be used to supplement, not supplant, funds from other public91848
sources for which the school district, service center, or91849
residential treatment facility is entitled or eligible.91850

       (F) The Department of Education shall track the utilization91851
of funds provided to school districts, educational service91852
centers, and residential treatment facilities under this section91853
and monitor the effect of the funding on the educational programs91854
they provide in participating residential treatment facilities.91855
The department shall monitor the programs for educational91856
accountability.91857

       Section 206.09.78.  SCHOOL DISTRICT PARTICIPATION IN NATIONAL91858
ASSESSMENT OF EDUCATION PROGRESS91859

       The General Assembly intends for the Superintendent of Public91860
Instruction to provide for school district participation in the91861
administration of the National Assessment of Education Progress in 91862
accordance with section 3301.27 of the Revised Code. Each school 91863
and school district selected for participation by the 91864
Superintendent of Public Instruction shall participate.91865

       Section 206.09.81. DEPARTMENT OF EDUCATION APPROPRIATION 91866
TRANSFERS FOR STUDENT ASSESSMENT91867

       In fiscal year 2006 and fiscal year 2007, if the 91868
Superintendent of Public Instruction determines that additional 91869
funds are needed to fully fund the requirements of Am. Sub. H.B. 3 91870
of the 125th General Assembly and this act for assessments of 91871
student performance, the Superintendent of Public Instruction may 91872
recommend the reallocation of unspent and unencumbered 91873
appropriations within the Department of Education to the General 91874
Revenue Fund appropriation item 200-437, Student Assessment, to 91875
the Director of Budget and Management. If the Director of Budget 91876
and Management determines that such a reallocation is required, 91877
the Director of Budget and Management may transfer unspent and 91878
unencumbered funds within the Department of Education as necessary 91879
to appropriation item 200-437, Student Assessment. If these 91880
unspent and unencumbered funds are not sufficient to fully fund 91881
the assessment requirements in fiscal year 2007, the 91882
Superintendent of Public Instruction may request that the 91883
Controlling Board transfer up to $5,000,000 cash from the Lottery 91884
Profits Education Reserve Fund (Fund 018) to the General Revenue 91885
Fund and appropriate these transfered funds to appropriation item 91886
200-437, Student Assessment.91887

       Section 206.09.82.  (A) As used in this section:91888

       (1) "IEP" has the same meaning as in section 3314.08 of the 91889
Revised Code.91890

       (2) "SBH student" means a student receiving special education 91891
and related services for severe behavior handicap conditions 91892
pursuant to an IEP.91893

       (B) This section applies only to a community school 91894
established under Chapter 3314. of the Revised Code that in each 91895
of fiscal years 2006 and 2007 enrolls a number of SBH students 91896
equal to at least fifty per cent of the total number of students 91897
enrolled in the school in the applicable fiscal year.91898

       (C) In addition to any payments made under section 3314.08 of 91899
the Revised Code, in each of fiscal years 2006 and 2007, the 91900
Department of Education shall pay to a community school to which 91901
this section applies a subsidy equal to the difference between the 91902
aggregate amount calculated and paid in that fiscal year to the 91903
community school for special education and related services 91904
additional weighted costs for the SBH students enrolled in the 91905
school and the aggregate amount that would have been calculated 91906
for the school for special education and related services 91907
additional weighted costs for those same students in fiscal year 91908
2001. If the difference is a negative number, the amount of the 91909
subsidy shall be zero.91910

       (D) The amount of any subsidy paid to a community school 91911
under this section shall not be deducted from the school district 91912
in which any of the students enrolled in the community school are 91913
entitled to attend school under section 3313.64 or 3313.65 of the 91914
Revised Code. The amount of any subsidy paid to a community school 91915
under this section shall be paid from funds appropriated to the 91916
Department of Education in appropriation item 200-550, Foundation 91917
Funding.91918

       Section 206.09.84. (A) As used in this section:91919

       (1) "Entitled to attend school" means entitled to attend 91920
school in a school district under section 3313.64 and 3313.65 of 91921
the Revised Code. 91922

       (2) "Formula ADM" and "category six special education ADM" 91923
have the same meanings as in section 3317.02 of the Revised Code.91924

       (3) "Individualized education program" has the same meaning 91925
as in section 3323.01 of the Revised Code.91926

       (4) "Parent" has the same meaning as in section 3313.64 of 91927
the Revised Code.91928

       (5) "Qualified special education child" is a child for whom 91929
all of the following conditions apply:91930

       (a) The school district in which the child is entitled to 91931
attend school has identified the child as autistic.91932

       (b) The school district in which the child is entitled to 91933
attend school has developed an individualized education program 91934
under Chapter 3323. of the Revised Code for the child.91935

       (c) The child either:91936

       (i) Was enrolled in the school district in which the child is 91937
entitled to attend school in any grade from preschool through 91938
twelve in the school year prior to the year in which a scholarship 91939
under this section is first sought for the child; or91940

       (ii) Is eligible to enter school in any grade preschool 91941
through twelve in the school district in which the child is 91942
entitled to attend school in the school year in which a 91943
scholarship under this section is first sought for the child.91944

       (6) "Registered private provider" means a nonpublic school or 91945
other nonpublic entity that has been approved by the Department of 91946
Education to participate in the program established under this 91947
section.91948

       (B) There is hereby established the Pilot Project Special 91949
Education Scholarship Program. Under the program, in fiscal years 91950
2006 and 2007, the Department of Education shall pay a scholarship 91951
to the parent of each qualified special education child upon 91952
application of that parent pursuant to procedures and deadlines 91953
established by rule of the State Board of Education. Each 91954
scholarship shall be used only to pay tuition for the child on 91955
whose behalf the scholarship is awarded to attend a special 91956
education program that implements the child's individualized 91957
education program and that is operated by a school district other 91958
than the school district in which the child is entitled to attend 91959
school, by another public entity, or by a registered private 91960
provider. Each scholarship shall be in an amount not to exceed the 91961
lesser of the tuition charged for the child by the special 91962
education program or twenty thousand dollars. The purpose of the 91963
scholarship is to permit the parent of a qualified special 91964
education child the choice to send the child to a special 91965
education program, instead of the one operated by or for the 91966
school district in which the child is entitled to attend school, 91967
to receive the services prescribed in the child's individualized 91968
education program once the individualized education program is 91969
finalized. A scholarship under this section shall not be awarded 91970
to the parent of a child while the child's individualized 91971
education program is being developed by the school district in 91972
which the child is entitled to attend school, or while any 91973
administrative or judicial mediation or proceedings with respect 91974
to the content of the child's individualized education program are 91975
pending. A scholarship under this section shall not be used for a 91976
child to attend a public special education program that operates 91977
under a contract, compact, or other bilateral agreement between 91978
the school district in which the child is entitled to attend 91979
school and another school district or other public provider, or 91980
for a child to attend a community school established under Chapter 91981
3314. of the Revised Code. However, nothing in this section or in 91982
any rule adopted by the State Board of Education shall prohibit a 91983
parent whose child attends a public special education program 91984
under a contract, compact, or other bilateral agreement, or a 91985
parent whose child attends a community school, from applying for 91986
and accepting a scholarship under this section so that the parent 91987
may withdraw the child from that program or community school and 91988
use the scholarship for the child to attend a special education 91989
program for which the parent is required to pay for services for 91990
the child. A child attending a special education program with a 91991
scholarship under this section shall continue to be entitled to 91992
transportation to and from that program in the manner prescribed 91993
by law.91994

       (C)(1) Notwithstanding anything to the contrary in the 91995
Revised Code, a child for whom a scholarship is awarded under this 91996
section shall be counted in the formula ADM and the category six 91997
special education ADM of the district in which the child is 91998
entitled to attend school and not in the formula ADM and the 91999
category six special education ADM of any other school district.92000

       (2) In each fiscal year, the Department shall deduct from the 92001
amounts paid to each school district under Chapter 3317. of the 92002
Revised Code, and, if necessary, sections 321.24 and 323.156 of 92003
the Revised Code, the aggregate amount of scholarships awarded 92004
under this section for qualified special education children 92005
included in the formula ADM and category six special education ADM 92006
of that school district as provided in division (C)(1) of this 92007
section. The scholarships deducted shall be considered as an 92008
approved special education and related services expense for the 92009
purpose of the school district's compliance with division (C)(5) 92010
of section 3317.022 of the Revised Code.92011

       (3) From time to time, the Department shall make a payment to 92012
the parent of each qualified special education child for whom a 92013
scholarship has been awarded under this section. The scholarship 92014
amount shall be proportionately reduced in the case of any such 92015
child who is not enrolled in the special education program for 92016
which a scholarship was awarded under this section for the entire 92017
school year. The Department shall make no payments to the parent 92018
of a child while any administrative or judicial mediation or 92019
proceedings with respect to the content of the child's 92020
individualized education program are pending.92021

       (D) A scholarship shall not be paid to a parent for payment 92022
of tuition owed to a nonpublic entity unless that entity is a 92023
registered private provider. The Department shall approve entities 92024
that meet the standards established by rule of the State Board for 92025
the program established under this section.92026

        (E) The State Board shall adopt rules under Chapter 119. of 92027
the Revised Code prescribing procedures necessary to implement 92028
this section, including, but not limited to, procedures and 92029
deadlines for parents to apply for scholarships, standards for 92030
registered private providers, and procedures for approval of 92031
entities as registered private providers. The Board shall adopt 92032
the rules so that the program established under this section is 92033
operational by January 1, 2004.92034

       Section 206.09.90. INTERVENTION FUNDING92035

        No later than September 30, 2006, each school district shall 92036
report, in a manner defined by the Department of Education, how 92037
state intervention funding provided under division (B)(1) of 92038
section 3317.012 and division (C) of section 3317.029 of the 92039
Revised Code in fiscal year 2006 was deployed. To the degree that 92040
school districts do not meet adequate progress standards as 92041
defined by the Department of Education, the Department shall use 92042
the reported information to intervene at the district and building 92043
levels to make recommendations on how state funding for 92044
intervention should be deployed in a more effective manner. This 92045
information shall also be used by the Department to inform its 92046
recommendations required in the section of this act entitled 92047
"DISTRICT SPENDING REQUIREMENTS."92048

       Section 206.09.93. EARMARK ACCOUNTABILITY92049

       At the request of the Superintendent of Public Instruction, 92050
any entity that receives a budget earmark under the Department of 92051
Education shall submit annually to the chairpersons of the 92052
committees of the House of Representatives and the Senate 92053
primarily concerned with education and to the Department of 92054
Education a report that includes a description of the services 92055
supported by the funds, a description of the results achieved by 92056
those services, an analysis of the effectiveness of the program, 92057
and an opinion as to the program's applicability to other school 92058
districts. For an earmarked entity that received state funds from 92059
an earmark in the prior fiscal year, no funds shall be provided by 92060
the Department of Education to an earmarked entity for a fiscal 92061
year until its report for the prior fiscal year has been 92062
submitted.92063

       Section 206.09.99. The revisions by this act to the 92064
Post-Secondary Enrollment Options Program established under 92065
Chapter 3365. of the Revised Code shall apply as follows:92066

       (A) The amendment to the definition of "tuition base" in 92067
section 3365.01 of the Revised Code, as amended by this act, shall 92068
apply to payments for courses taken beginning in the 2005-2006 92069
school year.92070

       (B) The requirement that a secondary grade student be a 92071
resident of this state in order to participate in the 92072
Post-Secondary Enrollment Options Program as specified in section 92073
3365.02 of the Revised Code, as amended by this act, shall not 92074
apply to students participating in the program during fiscal year 92075
2005. That requirement applies to students participating in the 92076
program after July 1, 2005, regardless of whether they 92077
participated in the program prior to that date.92078

       (C) The statement in section 3365.02 of the Revised Code, as 92079
amended by this act, concerning the purpose of the program applies 92080
to courses taken beginning in the 2005-2006 school year.92081

       (D) The requirement to seek reimbursement for college courses 92082
that a student failed, as specified in section 3365.02 of the 92083
Revised Code, as amended by this act, and section 3365.11 of the 92084
Revised Code, shall apply to courses taken beginning in the 92085
2005-2006 school year.92086

        (E) The opportunity to elect high school credit under Option 92087
A of the program, as specified in sections 3365.04, 3365.041, 92088
3365.05, and 3365.08 of the Revised Code, as amended by this act, 92089
shall apply beginning in the 2005-2006 academic year.92090

       Section 206.10.03. Not later than September 1, 2005, the 92091
Superintendent of Public Instruction shall begin preparations to 92092
implement the Educational Choice Scholarship Pilot Program 92093
established by sections 3310.01 to 3310.17 of the Revised Code. 92094
The Superintendent shall ensure that school districts, chartered 92095
nonpublic schools, students, and parents are informed of the 92096
Educational Choice Scholarship Pilot Program and how the Program 92097
may affect them. The Superintendent shall provide such information 92098
in sufficient time for affected parties to meet all deadlines 92099
imposed for participation in the Educational Choice Scholarship 92100
Pilot Program in the 2006-2007 school year. The State Board of 92101
Education shall adopt the rules required by section 3310.16 of the 92102
Revised Code so that those rules are in effect and the Educational 92103
Choice Scholarship Pilot Program is operational in the school year 92104
that commences July 1, 2006.92105

       The Superintendent shall select not more than 14,000 students 92106
in fiscal year 2007 to be awarded scholarships under the 92107
Educational Choice Scholarship Pilot Program.92108

       Section 206.10.05. There is hereby established a committee to 92109
study the consolidation of school districts. The committee shall 92110
consist of three members of the House of Representatives, 92111
appointed by the Speaker of the House of Representatives, and 92112
three members of the Senate, appointed by the President of the 92113
Senate. From each house, two members shall be of the majority 92114
party and one member shall be of the minority party. The Speaker 92115
of the House of Representatives shall designate the chairman of 92116
the committee. Members shall not receive compensation for their 92117
services.92118

       The committee shall study the feasibility of city, local, and 92119
exempted village school district consolidation and the economic 92120
impact, including possible cost savings, of consolidation for the 92121
state and school districts. If the committee determines school 92122
district consolidation is feasible, the committee shall recommend 92123
legislation to accomplish the consolidation.92124

       The committee shall report its findings to the General 92125
Assembly not later than one year after the effective date of this 92126
section. Copies of the findings shall be provided to the Governor, 92127
the President and Minority Leader of the Senate, the Speaker and 92128
Minority Leader of the House of Representatives, and the 92129
chairpersons, vice-chairpersons, and ranking minority members of 92130
the education committees of the House of Representatives and the 92131
Senate. Following its report of findings, the committee shall 92132
cease to exist.92133

       Section 206.10.09. Within thirty days after the effective 92134
date of this section, the Department of Education shall notify 92135
each entity approved to be a sponsor of community schools pursuant 92136
to division (B)(1) of section 3314.015 of the Revised Code prior 92137
to the effective date of this section and each entity that is not 92138
required to be so approved by section 3314.021 of the Revised Code 92139
or Section 6 of Sub. H.B. 364 of the 124th General Assembly of the 92140
number of schools the entity may sponsor under that division.92141

       Section 206.10.10.  (A) Within thirty days after the 92142
effective date of this section, the Department of Education shall 92143
do both of the following:92144

       (1) Conduct a random lottery to determine thirty community 92145
schools sponsored by entities described in division (C)(1)(b) to 92146
(f) of section 3314.02 of the Revised Code that will be permitted 92147
to open for operation in order to reach the limit on such schools 92148
prescribed by division (A)(4) of section 3314.013 of the Revised 92149
Code, as enacted by this act;92150

       (2) Conduct a random lottery to determine thirty community 92151
schools sponsored by the school districts in which the schools are 92152
proposed to be located that will be permitted to open for 92153
operation in order to reach the limit on such schools prescribed 92154
by division (A)(5) of section 3314.013 of the Revised Code, as 92155
enacted by this act.92156

       (B) Sponsors of community schools shall apply to the 92157
Department to include a community school in the lottery conducted 92158
under division (A)(1) or (2) of this section, as applicable. A 92159
sponsor may make application for any community school it sponsors 92160
for which the following conditions are met:92161

       (1) The sponsor has entered into a contract with the 92162
governing authority of the school under section 3314.03 of the 92163
Revised Code.92164

       (2) The school is prepared to open for its initial year of 92165
operation in the 2005-2006 school year.92166

       However, no sponsor may apply to include a community school 92167
in a lottery if the selection of the school would cause the 92168
sponsor to exceed the sponsor's limit on the number of schools it 92169
may sponsor as prescribed by division (B)(1) of section 3314.015 92170
of the Revised Code, as amended by this act.92171

       (C) The Department shall establish the application method and 92172
deadline for sponsors to apply for the lotteries conducted under 92173
this section. The Department shall allow sufficient time between 92174
the date on which sponsors are notified of the number of schools 92175
they may sponsor, as required by Section 206.10.09 of this act, 92176
and the deadline for lottery applications to enable sponsors to 92177
complete the application process.92178

       Section 206.10.11.  No community school established under 92179
Chapter 3314. of the Revised Code that was not open for operation 92180
as of May 1, 2005, shall operate from a home, as defined in 92181
section 3313.64 of the Revised Code.92182

       Section 206.10.12. (A) The School Physical Fitness and 92183
Wellness Advisory Council is hereby established. The Council shall 92184
consist of the following members:92185

       (1) A representative of the Ohio Association for Health, 92186
Physical Education, Recreation and Dance, appointed by the 92187
Association;92188

       (2) A school food service director, appointed by the Ohio 92189
School Food Service Association;92190

       (3) A representative of the Ohio School Boards Association, 92191
appointed by the Association;92192

       (4) A registered dietician, appointed by the Ohio Dietetic 92193
Association;92194

       (5) A representative of the Ohio State Medical Association, 92195
appointed by the Association;92196

       (6) A representative of the food industry, appointed by the 92197
Ohio Chamber of Commerce;92198

       (7) A representative of the Ohio Parent Teacher Association, 92199
appointed by the Association;92200

       (8) A representative of the Ohio Soft Drink Association, 92201
appointed by the Association;92202

       (9) A representative of the Department of Education, 92203
appointed by the Superintendent of Public Instruction;92204

       (10) A representative of the Ohio Parks and Recreation 92205
Association, appointed by the Association;92206

       (11) The Director of Health;92207

        (12) A representative of the Ohio Children's Hunger Alliance, 92208
appointed by the Alliance.92209

       (B) Appointments to the Council shall be made within thirty 92210
days after the effective date of this section. The representative 92211
of the Department of Education shall be the chairperson of the 92212
Council. The Council shall meet at least every two months. The 92213
Department of Education shall provide administrative support to 92214
the Council in the performance of its duties.92215

       (C) The Council shall develop guidelines for best practices 92216
regarding nutrition education, physical activity for students, and 92217
school-based activities and school-business partnerships that 92218
promote student wellness. For this purpose, the Council shall 92219
examine research concerning these issues and review existing 92220
guidelines and best practices established by associations or 92221
governmental entities at the national, state, and local levels. 92222
The best practices guidelines developed by the Council shall 92223
provide information that school districts participating in a 92224
school lunch program under the "National School Lunch Act," 60 92225
Stat. 230 (1946), 42 U.S.C. 1751, as amended, may use when 92226
adopting local wellness policies as required by the "Child 92227
Nutrition Act of 1966," 80 Stat. 885, 42 U.S.C. 1771, as amended. 92228
The Council also shall develop strategies for districts to use in 92229
evaluating the implementation of their local wellness policies to 92230
determine if the goals and objectives described in those policies 92231
are being met.92232

       (D) Not later than December 31, 2005, the Council shall 92233
compile a written report containing its best practices guidelines 92234
and evaluation strategies. Copies of the report shall be provided 92235
to each school district participating in a school lunch program as 92236
described in division (C) of this section, the Governor, the 92237
Speaker of the House of Representatives, and the President of the 92238
Senate. Upon submission of its report, the Council shall cease to 92239
exist.92240

       Section 206.10.15. For fiscal years 2006 and 2007, the 92241
Department of Education shall provide funding to the Ohio Wyami 92242
Appalachian Teacher Cohorts Program under the Columbiana County 92243
Educational Service Center to provide teacher professional 92244
development in Ohio's Appalachian counties. The program shall 92245
provide professional development that is based on a review of 92246
scientifically based research and is expected to improve student 92247
academic achievement as required by Title II of the "No Child Left 92248
Behind Act of 2001," 115 Stat. 1425, 20 U.S.C. 6612 et seq., for 92249
approximately eighty public and charter nonpublic teachers from 92250
Ohio's Appalachian counties each year. The Department of Education 92251
shall provide $1,500,000 each fiscal year in federal grant funds 92252
from the State Grants For Improving Teacher Quality Program to the 92253
Columbiana County Educational Service Center for this purpose. The 92254
Center shall not expend these funds outside of Ohio.92255

       Section 206.10.21. (A) Notwithstanding section 3313.41 of the 92256
Revised Code, a school district board of education in support of 92257
economic development within the territory of the district may 92258
dispose of real property that it owns in its corporate capacity, 92259
and that exceeds in value ten thousand dollars, by direct sale in 92260
lieu of offering the property for sale at public auction as 92261
provided in division (A) of that section, in lieu of offering the 92262
property for sale to an entity listed in division (C) of that 92263
section, or in lieu of offering the property for sale to a 92264
community school as provided in division (G) of that section, if 92265
all of the following conditions are satisfied:92266

        (1) The real property is encumbered by easements, liens, or 92267
other use restrictions that benefit the person acquiring the 92268
property under this section;92269

        (2) The real property was part of or adjacent to real 92270
property previously disposed of by the board of education;92271

        (3) The real property when sold will be used for commercial 92272
development.92273

        (B) This section expires December 31, 2005.92274

       Section 206.10.24. Regardless of the changes made by this act 92275
regarding the reporting of formula ADM by school districts, not 92276
later than July 1, 2006, the Superintendent of Public Instruction 92277
shall recommend to the General Assembly a plan whereby:92278

        (A) School districts make a second annual certification of 92279
formula ADM in the second half of each fiscal year, prior to the 92280
first day of April;92281

        (B) This second annual certification of formula ADM may be 92282
used to guarantee a minimum level of state funding to each school 92283
district for the next fiscal year, with sufficient notice so that 92284
the districts may prepare in advance of each school year.92285

        The recommended plan shall include methods to accommodate 92286
enrollment growth trends in fast-growing districts.92287

       Section 206.13.  ELC OHIO ELECTIONS COMMISSION92288

General Revenue Fund92289

GRF 051-321 Operating Expenses $ 411,623 $ 411,623 92290
TOTAL GRF General Revenue Fund $ 411,623 $ 411,623 92291

General Services Fund Group92292

4P2 051-601 Ohio Elections 92293
Commission Fund $ 225,000 $ 225,000 92294
TOTAL GSF General Services Fund Group $ 225,000 $ 225,000 92295
TOTAL ALL BUDGET FUND GROUPS $ 636,623 $ 636,623 92296


       Section 206.16.  FUN STATE BOARD OF EMBALMERS AND FUNERAL92298
DIRECTORS92299

General Services Fund Group92300

4K9 881-609 Operating Expenses $ 598,933 $ 0 92301
TOTAL GSF General Services 92302
Fund Group $ 598,933 $ 0 92303
TOTAL ALL BUDGET FUND GROUPS $ 598,933 $ 0 92304


       Section 206.19.  ERB STATE EMPLOYMENT RELATIONS BOARD92306

General Revenue Fund92307

GRF 125-321 Operating Expenses $ 3,265,397 $ 3,363,359 92308
TOTAL GRF General Revenue Fund $ 3,265,397 $ 3,363,359 92309

General Services Fund Group92310

572 125-603 Training and Publications $ 75,541 $ 75,541 92311
TOTAL GSF General Services 92312
Fund Group $ 75,541 $ 75,541 92313
TOTAL ALL BUDGET FUND GROUPS $ 3,340,938 $ 3,438,900 92314


       Section 206.24. ENG STATE BOARD OF ENGINEERS AND SURVEYORS92316

General Services Fund Group92317

4K9 892-609 Operating Expenses $ 1,058,881 $ 1,058,881 92318
TOTAL GSF General Services 92319
Fund Group $ 1,058,881 $ 1,058,881 92320
TOTAL ALL BUDGET FUND GROUPS $ 1,058,881 $ 1,058,881 92321


       Section 206.27. EPA ENVIRONMENTAL PROTECTION AGENCY92323

General Revenue Fund92324

GRF 715-403 Clean Ohio $ 92,707 $ 0 92325
GRF 715-501 Local Air Pollution Control $ 128,297 $ 0 92326
GRF 717-321 Surface Water $ 1,112,342 $ 0 92327
GRF 718-321 Groundwater $ 136,719 $ 0 92328
GRF 719-321 Air Pollution Control $ 311,494 $ 0 92329
GRF 721-321 Drinking Water $ 318,783 $ 0 92330
GRF 723-321 Hazardous Waste $ 12,606 $ 0 92331
GRF 724-321 Pollution Prevention $ 87,538 $ 0 92332
GRF 725-321 Laboratory $ 152,043 $ 0 92333
GRF 726-321 Corrective Actions $ 147,473 $ 0 92334
TOTAL GRF General Revenue Fund $ 2,500,002 $ 0 92335

General Services Fund Group92336

199 715-602 Laboratory Services $ 1,078,348 $ 1,083,574 92337
219 715-604 Central Support Indirect $ 15,804,913 $ 16,345,805 92338
4A1 715-640 Operating Expenses $ 3,369,731 $ 3,369,731 92339
TOTAL GSF General Services 92340
Fund Group $ 20,252,992 $ 20,799,110 92341

Federal Special Revenue Fund Group92342

3F2 715-630 Revolving Loan Fund - Operating $ 152,021 $ 293,129 92343
3F3 715-632 Fed Supported Cleanup and Response $ 2,792,648 $ 2,777,648 92344
3F4 715-633 Water Quality Management $ 710,000 $ 710,000 92345
3F5 715-641 Nonpoint Source Pollution Management $ 7,815,000 $ 7,810,000 92346
3J1 715-620 Urban Stormwater $ 706,000 $ 710,000 92347
3K2 715-628 Clean Water Act 106 $ 4,723,845 $ 5,023,846 92348
3K4 715-634 DOD Monitoring and Oversight $ 1,450,333 $ 1,450,333 92349
3K6 715-639 Remedial Action Plan $ 320,000 $ 319,000 92350
3N4 715-657 DOE Monitoring and Oversight $ 3,181,736 $ 3,231,963 92351
3V7 715-606 Agencywide Grants $ 458,115 $ 479,115 92352
352 715-611 Wastewater Pollution $ 525,000 $ 530,000 92353
353 715-612 Public Water Supply $ 3,384,959 $ 3,388,619 92354
354 715-614 Hazardous Waste Management - Federal $ 4,203,891 $ 4,203,891 92355
357 715-619 Air Pollution Control - Federal $ 6,966,337 $ 7,243,950 92356
362 715-605 Underground Injection Control - Federal $ 111,874 $ 111,874 92357
TOTAL FED Federal Special Revenue 92358
Fund Group $ 37,501,759 $ 38,283,368 92359

State Special Revenue Fund Group92360

3T3 715-669 Drinking Water SRF $ 2,411,614 $ 2,482,910 92361
4J0 715-638 Underground Injection Control $ 438,285 $ 458,418 92362
4K2 715-648 Clean Air - Non Title V $ 3,234,278 $ 3,178,062 92363
4K3 715-649 Solid Waste $ 13,800,377 $ 14,282,845 92364
4K4 715-650 Surface Water Protection $ 11,606,000 $ 12,420,000 92365
4K5 715-651 Drinking Water Protection $ 7,202,901 $ 7,492,035 92366
4P5 715-654 Cozart Landfill $ 149,728 $ 149,728 92367
4R5 715-656 Scrap Tire Management $ 6,000,000 $ 6,000,000 92368
4R9 715-658 Voluntary Action Program $ 1,008,765 $ 1,032,098 92369
4T3 715-659 Clean Air - Title V Permit Program $ 16,960,373 $ 17,180,980 92370
4U7 715-660 Construction & Demolition Debris $ 586,797 $ 582,305 92371
5BC 715-617 Clean Ohio $ 648,939 $ 741,646 92372
5BC 715-622 Local Air Pollution Control $ 898,072 $ 1,026,369 92373
5BC 715-624 Surface Water $ 7,685,071 $ 8,797,413 92374
5BC 715-667 Groundwater $ 957,022 $ 1,093,741 92375
5BC 715-672 Air Pollution Control $ 4,234,681 $ 5,199,290 92376
5BC 715-673 Drinking Water $ 2,231,467 $ 2,550,250 92377
5BC 715-675 Hazardous Waste $ 88,241 $ 100,847 92378
5BC 715-676 Assistance and Prevention $ 612,764 $ 700,302 92379
5BC 715-677 Laboratory $ 1,064,290 $ 1,216,333 92380
5BC 715-678 Corrective Action $ 1,032,302 $ 1,179,775 92381
5CD 715-682 Clean Diesel School Buses $ 650,000 $ 850,000 92382
5H4 715-664 Groundwater Support $ 2,325,922 $ 2,408,871 92383
5N2 715-613 Dredge and Fill $ 30,000 $ 30,000 92384
500 715-608 Immediate Removal Special Account $ 482,000 $ 482,000 92385
503 715-621 Hazardous Waste Facility Management $ 11,270,231 $ 11,711,473 92386
505 715-623 Hazardous Waste Cleanup $ 11,482,988 $ 11,482,988 92387
505 715-674 Clean Ohio Environmental Review $ 104,500 $ 109,725 92388
541 715-670 Site Specific Cleanup $ 33,000 $ 34,650 92389
542 715-671 Risk Management Reporting $ 146,188 $ 146,188 92390
592 715-627 Anti Tampering Settlement $ 17,203 $ 9,707 92391
6A1 715-645 Environmental Education $ 1,500,000 $ 1,500,000 92392
602 715-626 Motor Vehicle Inspection and Maintenance $ 1,190,944 $ 250,000 92393
644 715-631 ER Radiological Safety $ 286,114 $ 286,114 92394
660 715-629 Infectious Waste Management $ 160,000 $ 100,000 92395
676 715-642 Water Pollution Control Loan Administration $ 4,964,625 $ 4,964,625 92396
678 715-635 Air Toxic Release $ 210,621 $ 210,622 92397
679 715-636 Emergency Planning $ 2,828,647 $ 2,828,647 92398
696 715-643 Air Pollution Control Administration $ 750,000 $ 750,000 92399
699 715-644 Water Pollution Control Administration $ 750,000 $ 750,000 92400
TOTAL SSR State Special Revenue Fund Group $ 122,034,950 $ 126,770,957 92401

Clean Ohio Revitalization Fund Group92402

5S1 715-607 Clean Ohio - Operating $ 208,174 $ 208,174 92403
TOTAL CLF Clean Ohio Revitalization Fund Group $ 208,174 $ 208,174 92404
TOTAL ALL BUDGET FUND GROUPS $ 182,497,877 $ 186,061,609 92405

       AUTOMOBILE EMISSIONS TESTING PROGRAM OPERATION AND OVERSIGHT92406

        (A) There is hereby created the Auto Emissions Test Fund 92407
(Fund 5BY). When renewing a contract to continue the E-check 92408
program after December 31, 2005, the Ohio Environmental Protection 92409
Agency (EPA) shall use the foregoing appropriation item 715-681, 92410
Auto Emissions Test in the Auto Emissions Test Fund (Fund 5BY), to 92411
pay the contracted amount per test for the operation, and Ohio 92412
EPA's costs for oversight, of the auto emissions testing programs 92413
in counties still designated as non-attainment or designated by 92414
the General Assembly to continue such tests under mandate of the 92415
federal Clean Air Act. These amounts are hereby appropriated.92416

       (B)(1) Not later than July 1, 2005, the Director of 92417
Environmental Protection, in conjunction with the Office of Budget 92418
and Management, shall estimate the amount necessary for operation 92419
of the Auto Emissions Testing Program for the period beginning 92420
January 1, 2006, and ending June 30, 2006. Notwithstanding section 92421
183.02 of the Revised Code, of the tobacco revenue that is 92422
credited to the Tobacco Master Settlement Agreement Fund (Fund 92423
087) in fiscal year 2005, the Director of Budget and Management 92424
shall withhold from the share that is determined pursuant to 92425
section 183.02 of the Revised Code to be the amount to be 92426
transferred from the Tobacco Master Settlement Agreement Fund 92427
(Fund 086) to the Tobacco Use Prevention and Cessation Trust Fund 92428
(Fund H87) an amount equal to the estimate determined pursuant to 92429
this division.92430

        (2) Not later than December 31, 2005, the Director of 92431
Environmental Protection shall certify to the Director of Budget 92432
and Management the actual amount, not to exceed the estimated 92433
amount, necessary for the Auto Emissions Testing Program for the 92434
period beginning January 1, 2006, and ending June 30, 2006. 92435
Notwithstanding section 183.02 of the Revised Code, on January 1, 92436
2006, or as soon as possible thereafter, the Director of Budget 92437
and Management shall transfer the amount certified pursuant to 92438
this division from the Tobacco Master Settlement Agreement Fund 92439
(Fund 087) to the Auto Emissions Test Fund (Fund 5BY). Amounts 92440
transferred are hereby appropriated to appropriation item 715-681, 92441
Auto Emissions Test, in the Environmental Protection Agency.92442

        (3) On January 1, 2006, or as soon as possible thereafter, 92443
the Director of Budget and Management shall transfer to the 92444
Tobacco Use Prevention and Cessation Trust Fund (Fund H87) any 92445
amount withheld from being transferred to the Tobacco Use 92446
Prevention and Cessation Trust Fund pursuant to division (B)(1) of 92447
this section that is greater than the amount that is transferred 92448
under division (B)(2) of this section.92449

        (C) An amount equal to the remaining balance in appropriation 92450
item 715-681, Auto Emissions Test, from fiscal year 2006 is hereby 92451
appropriated for fiscal year 2007 into appropriation item 715-681, 92452
Auto Emissions Test.92453

        (D) Not later than June 30, 2006, the Director of 92454
Environmental Protection shall certify to the Director of Budget 92455
and Management the amount needed for the Auto Emissions Testing 92456
Program for fiscal year 2007 taking into account the amounts 92457
appropriated for fiscal year 2007 pursuant to division (C) of this 92458
section.92459

        Notwithstanding section 183.02 of the Revised Code, on July 92460
1, 2006, or as soon as possible thereafter, the Director of Budget 92461
and Management shall transfer cash equal to the amount certified 92462
pursuant to this division from the Tobacco Master Settlement 92463
Agreement Fund (Fund 087) to the Auto Emissions Test Fund (Fund 92464
5BY) in the Environmental Protection Agency. Of the tobacco 92465
revenue that is credited to the Tobacco Master Settlement 92466
Agreement Fund (Fund 087) in fiscal year 2006, the share that is 92467
determined pursuant to section 183.02 of the Revised Code to be 92468
the amount transferred by the Director of Budget and Management 92469
from the Tobacco Master Settlement Agreement Fund (Fund 087) to 92470
the Tobacco Use Prevention and Cessation Trust Fund (Fund H87) 92471
shall be reduced by the amount that is transferred from the 92472
Tobacco Master Settlement Agreement Fund (Fund 087) to the Auto 92473
Emissions Test Fund (Fund 5BY) under this division. Amounts 92474
transferred are hereby appropriated to appropriation item 715-681, 92475
Auto Emissions Test, in the Environmental Protection Agency.92476

        (E) Not later than July 31, 2007, the Director of Budget and 92477
Management shall transfer the unencumbered cash balance of the 92478
Auto Emissions Test Fund (Fund 5BY) to the Tobacco Use Prevention 92479
and Cessation Trust Fund (Fund H87).92480

        (F) The funds identified in this section shall not be used to 92481
cover the testing costs of any dealers that are required to 92482
provide passing certificates under section 3704.14 of the Revised 92483
Code or to provide more than two free tests for any vehicle in a 92484
three-hundred-sixty-five-day period. The cost of testing and 92485
retesting for any vehicle shall not exceed the contracted amount 92486
per test.92487

       NPDES TRANSFER TO AGRICULTURE92488

        On or after the date on which the United States Environmental 92489
Protection Agency approves the state program submitted under 92490
division (A)(1) of section 903.08 of the Revised Code, the 92491
Director of Environmental Protection, the Director of Agriculture, 92492
and the Director of Budget and Management shall calculate the 92493
amount of compensation to be made to the Environmental Protection 92494
Agency and to the Department of Agriculture from federal moneys 92495
disbursed and received for purposes of administering the National 92496
Pollutant Discharge Elimination System (NPDES) Program and shall 92497
calculate the amount of state matching funding that is required 92498
for administering that program. The Environmental Protection 92499
Agency and the Department of Agriculture may apply separately to 92500
the United States Environmental Protection Agency for each 92501
agency's respective share of the federal moneys. If the United 92502
States Environmental Protection Agency awards all federal moneys 92503
for administration of the NPDES program to one agency, that agency 92504
shall transfer the appropriate amount of moneys to the other 92505
agency in accordance with the calculations of compensation made 92506
pursuant to these provisions.92507

       CASH TRANSFER FOR ENVIRONMENTAL PROTECTION FUND92508

       On July 1, 2005, or as soon as possible thereafter, the 92509
Director of Budget and Management may transfer $1,000,000 in cash 92510
from the Central Support Indirect Fund (Fund 219) into the 92511
Environmental Protection Fund (Fund 5BC).92512

       On July 1, 2005, or as soon as possible thereafter, the 92513
Director of Budget and Management may transfer $6,000,000 in cash 92514
from the Hazardous Waste Facility Management Fund (Fund 503) into 92515
the Environmental Protection Fund (Fund 5BC).92516

       On July 1, 2005, or as soon as possible thereafter, the 92517
Director of Budget and Management may transfer $3,000,000 in cash 92518
from the Solid Waste Fund (Fund 4K3) into the Environmental 92519
Protection Fund (Fund 5BC).92520

       On July 1, 2005, or as soon as possible thereafter, the 92521
Director of Budget and Management may transfer $1,000,000 in cash 92522
from the Hazardous Waste Cleanup Fund (Fund 505) into the 92523
Environmental Protection Fund (Fund 5BC).92524

       Section 206.30. EBR ENVIRONMENTAL REVIEW APPEALS COMMISSION92525

General Revenue Fund92526

GRF 172-321 Operating Expenses $ 479,161 $ 483,859 92527
TOTAL GRF General Revenue Fund $ 479,161 $ 483,859 92528
TOTAL ALL BUDGET FUND GROUPS $ 479,161 $ 483,859 92529


       Section 206.31. ETC ETECH OHIO92531

General Revenue Fund92532

GRF 935-321 Operations $ 7,174,453 $ 6,830,918 92533
GRF 935-401 Statehouse News Bureau $ 244,400 $ 244,400 92534
GRF 935-402 Ohio Government Telecommunications Studio $ 716,417 $ 716,417 92535
GRF 935-403 Technical Operations $ 1,768,150 $ 1,768,150 92536
GRF 935-404 Telecommunications Operating Subsidy $ 3,632,413 $ 3,632,413 92537
GRF 935-406 Technical and Instructional Professional Development $ 6,484,763 $ 6,607,144 92538
GRF 935-539 Educational Technology $ 5,968,791 $ 5,968,791 92539
TOTAL GRF General Revenue Fund $ 25,989,387 $ 25,768,233 92540

General Services Fund Group92541

4F3 935-603 Affiliate Services $ 2,000,000 $ 2,000,000 92542
4T2 935-605 Government Television/Telecommunications Operating $ 150,000 $ 150,000 92543
5D4 935-640 Conference/Special Purposes $ 1,600,645 $ 1,821,817 92544
TOTAL GSF General Services Fund Group $ 3,750,645 $ 3,971,817 92545

Federal Special Revenue Fund Group92546

3S3 935-606 Enhancing Education Technology $ 589,363 $ 589,363 92547
TOTAL FED Federal Special Revenue Fund Group $ 589,363 $ 589,363 92548

State Special Revenue Fund Group92549

4W9 935-630 Telecommunity $ 50,000 $ 25,000 92550
4X1 935-634 Distance Learning $ 250,000 $ 100,000 92551
5T3 935-607 Gates Foundation Grants $ 600,000 $ 200,000 92552
TOTAL SSR State Special Revenue Fund Group $ 900,000 $ 325,000 92553
TOTAL ALL BUDGET FUND GROUPS $ 31,229,395 $ 30,654,413 92554


       Section 206.31.03. OPERATIONS92556

       eTech Ohio shall enter into an agreement with the Department 92557
of Administrative Services to provide for the maintenance of all 92558
of its towers. eTech Ohio and the Department of Administrative 92559
Services shall develop a plan to address the best method for 92560
transferring ownership and control of all the towers to the 92561
Department of Administrative Services. This plan shall be 92562
submitted to the Office of Budget and Management by July 1, 2006.92563

       Section 206.31.06. TELECOMMUNICATIONS92564

       STATEHOUSE NEWS BUREAU92565

       The foregoing appropriation item 935-401, Statehouse News 92566
Bureau, shall be used solely to support the operations of the Ohio 92567
Statehouse News Bureau.92568

       OHIO GOVERNMENT TELECOMMUNICATIONS STUDIO92569

       The foregoing appropriation item 935-402, Ohio Government 92570
Telecommunications Studio, shall be used solely to support the 92571
operations of the Ohio Government Telecommunications Studio.92572

       TECHNICAL OPERATIONS92573

       The foregoing appropriation item 935-403, Technical 92574
Operations, shall be used by eTech Ohio to pay expenses of the 92575
television and radio transmission infrastructure.92576

       TELECOMMUNICATIONS OPERATING SUBSIDY92577

       Of the foregoing appropriation item 935-404, 92578
Telecommunications Operating Subsidy, $45,000 in each fiscal year 92579
shall be used to contract for dial-up newspaper reading services 92580
for the blind and physically handicapped. The contract shall be 92581
awarded through a competitive bidding process. eTech Ohio shall 92582
not disburse these funds without prior approval of the Controlling 92583
Board.92584

       The remainder of appropriation item 935-404, 92585
Telecommunications Operating Subsidy, shall be distributed by 92586
eTech Ohio to Ohio's qualified public educational television 92587
stations, radio reading services, and educational radio stations 92588
to support their operations. The funds shall be distributed 92589
pursuant to an allocation formula used by the Ohio Educational 92590
Telecommunications Network Commission unless and until a 92591
substitute formula is developed by eTech Ohio in consultation with 92592
Ohio's qualified public educational television stations, radio 92593
reading services, and educational radio stations.92594

       Section 206.31.09. TECHNICAL AND INSTRUCTIONAL PROFESSIONAL 92595
DEVELOPMENT92596

       The foregoing appropriation item 935-406, Technical and 92597
Instructional Professional Development, shall be used by eTech 92598
Ohio to make grants or provide services to qualifying public 92599
schools, including the State School for the Blind and the State 92600
School for the Deaf, and the Ohio Department of Youth Services, 92601
for the provision of hardware, software, telecommunications 92602
services, and staff development to support educational uses of 92603
technology in the classroom. eTech Ohio shall consider the 92604
professional development needs associated with the OhioReads 92605
Program when making funding allocations and program decisions.92606

       Of the foregoing appropriation item 935-406, Technical and 92607
Instructional Professional Development, up to $200,000 in each 92608
fiscal year shall be used by eTech Ohio to provide competitive 92609
professional development grants to school districts. Grant 92610
proposals shall focus on developing innovative programs that 92611
enhance the abilities of teachers to use innovative methods for 92612
integrating technology to implement state academic content 92613
standards in classroom lessons. Grant requirements and awards 92614
shall be approved by eTech Ohio, with priority given to school 92615
districts designated in academic emergency, academic watch, or 92616
continuous improvement. eTech Ohio shall develop a website to 92617
share information learned through these programs with school 92618
districts statewide. The website shall be linked with the Ohio 92619
Department of Education's Instructional Management System.92620

       Of the foregoing appropriation item 935-406, Technical and 92621
Instructional Professional Development, up to $1,260,000 in each 92622
fiscal year shall be allocated equally among the 12 Ohio 92623
educational television stations and used with the advice and 92624
approval of eTech Ohio. Funds shall be used for the production of 92625
interactive instructional programming series with priority given 92626
to resources aligned with state academic content standards in 92627
consultation with the Ohio Department of Education and for 92628
teleconferences to support eTech Ohio. The programming shall be 92629
targeted to the needs of the poorest two hundred school districts 92630
as determined by the district's adjusted valuation per pupil as 92631
defined in section 3317.0213 of the Revised Code as that section 92632
existed prior to the effective date of this section.92633

       The remainder of appropriation item 935-406, Technical and 92634
Instructional Professional Development, shall be used by eTech 92635
Ohio for professional development for teachers and administrators 92636
for the use of educational technology. eTech Ohio may make grants 92637
to provide technical assistance and professional development on 92638
the use of educational technology to school districts.92639

       Eligible recipients of grants include regional training 92640
centers, educational service centers, data acquisition sites, 92641
educational technology centers, institutions of higher education, 92642
public television stations, special education resource centers, 92643
area media centers, or other nonprofit educational organizations. 92644
In addition, services provided through these grants may include 92645
use of private entities subcontracting through the grant 92646
recipient.92647

       Grants shall be made to entities on a contractual basis with 92648
eTech Ohio. Contracts shall include provisions that demonstrate 92649
how services will benefit technology use in the public schools, 92650
and in particular how services will support eTech Ohio's efforts 92651
to integrate technology in the public schools. Contracts shall 92652
specify the scope of assistance being offered and the potential 92653
number of professionals who will be served. Contracting entities 92654
may be awarded more than one grant at a time. Grants shall be 92655
awarded in a manner consistent with the goals and priorities of 92656
eTech Ohio. Special emphasis in the award of grants shall be 92657
placed on collaborative efforts among service providers.92658

       Application for grants from appropriation item 935-406, 92659
Technical and Instructional Professional Development, shall be 92660
consistent with a school district's technology plan that shall 92661
meet the minimum specifications for school district technology 92662
plans as prescribed by eTech Ohio. Funds allocated through these 92663
grants may be combined with funds received through other state or 92664
federal grants for technology so long as the school district's 92665
technology plan specifies the use of these funds.92666

       Section 206.31.12. EDUCATION TECHNOLOGY92667

       The foregoing appropriation item 935-539, Education 92668
Technology, shall be used to provide funding to suppliers of 92669
information services to school districts for the provision of 92670
hardware, software, and staff development in support of 92671
educational uses of technology in the classroom as prescribed by 92672
the State Plan for Technology pursuant to section 3301.07 of the 92673
Revised Code, and to support assistive technology for children and 92674
youth with disabilities.92675

       Of the foregoing appropriation item 935-539, Education 92676
Technology, up to $1,829,240 in each fiscal year shall be used by 92677
eTech Ohio to link all public K-12 classrooms to each other and 92678
the Internet, and to provide access to voice, video, and data 92679
educational resources for students and teachers through the OneNet 92680
Ohio Program.92681

       Up to $4,139,551 in each fiscal year shall be used by eTech 92682
Ohio to contract with educational television to provide Ohio 92683
public schools with instructional resources and services with 92684
priority given to resources and services aligned with state 92685
academic content standards and such resources and services shall 92686
be based upon the advice and approval of eTech Ohio, based on a 92687
formula used by the Ohio SchoolNet Commission unless and until a 92688
substitute formula is developed by eTech Ohio in consultation with 92689
Ohio's educational technology agencies and noncommercial 92690
educational television stations.92691

       Resources may include, but not be limited to, the following: 92692
prerecorded video materials (including videotape, laser discs, and 92693
CD-ROM discs); computer software for student use or student access 92694
to electronic communication, databases, spreadsheet, and word 92695
processing capability; live student courses or courses delivered 92696
electronically; automated media systems; and instructional and 92697
professional development materials for teachers. eTech Ohio shall 92698
collaborate with public television stations and cooperate with 92699
education technology agencies in the acquisition, development, and 92700
delivery of such educational resources to ensure high-quality and 92701
educational soundness at the lowest possible cost. Delivery of 92702
such resources may utilize a variety of technologies, with a 92703
preference given to a high speed integrated information network 92704
that can transport video, voice, data, and graphics 92705
simultaneously.92706

       Services shall include presentations and technical assistance 92707
that will help students and teachers integrate educational 92708
materials that support curriculum objectives, match specific 92709
learning styles, and are appropriate for individual interests and 92710
ability levels.92711

       Such instructional resources and services shall be made 92712
available for purchase by chartered nonpublic schools or by school 92713
districts for the benefit of pupils attending chartered nonpublic 92714
schools.92715

       eTech Ohio shall monitor the developments of technology, 92716
coordinate with the Office of Information Technology, and assure 92717
the most effective and highest quality operation of eTech Ohio 92718
networks. All efforts may be aligned with the State's ongoing 92719
efforts to coordinate appropriate network operations through the 92720
Office of Information Technology and through the Third Frontier 92721
Network.92722

       Section 206.31.15. TELECOMMUNITY92723

       The foregoing appropriation item 935-630, Telecommunity, 92724
shall be distributed by eTech Ohio on a grant basis to eligible 92725
school districts to establish "distance learning" through 92726
interactive video technologies in the school district. Per 92727
agreements with eight Ohio local telephone companies: ALLTEL Ohio, 92728
CENTURY Telephone of Ohio, Chillicothe Telephone Company, 92729
Cincinnati Bell Telephone Company, Orwell Telephone Company, 92730
Sprint North Central Telephone, VERIZON, and Western Reserve 92731
Telephone Company, school districts are eligible for funds if they 92732
are within one of the listed telephone company service areas. 92733
Funds to administer the program shall be expended by eTech Ohio up 92734
to the amount specified in agreements with the listed telephone 92735
companies.92736

       Within thirty days after the effective date of this section, 92737
the Director of Budget and Management shall transfer to Fund 4W9 92738
in the state special revenue fund group any investment earnings 92739
from moneys paid by any telephone company as part of any 92740
settlement agreement between the listed companies and the Public 92741
Utilities Commission in fiscal years 1996 and beyond.92742

       DISTANCE LEARNING92743

       The foregoing appropriation item 935-634, Distance Learning, 92744
shall be distributed by eTech Ohio on a grant basis to eligible 92745
school districts to establish "distance learning" in the school 92746
district. Per the agreement with Ameritech, school districts are 92747
eligible for funds if they are within an Ameritech service area. 92748
Funds to administer the program shall be expended by eTech Ohio up 92749
to the amount specified in the agreement with Ameritech.92750

       Within thirty days after the effective date of this section, 92751
the Director of Budget and Management shall transfer to fund 4X1 92752
in the State Special Revenue Fund Group any investment earnings 92753
from moneys paid by any telephone company as part of a settlement 92754
agreement between the company and the Public Utilities Commission 92755
in fiscal year 1995.92756

       GATES FOUNDATION GRANTS92757

       The foregoing appropriation item 935-607, Gates Foundation 92758
Grants, shall be used by eTech Ohio to provide professional 92759
development to school district principals, superintendents, and 92760
other administrative staff for the use of education technology.92761

       Section 206.33.  ETH OHIO ETHICS COMMISSION92762

General Revenue Fund92763

GRF 146-321 Operating Expenses $ 1,536,213 $ 1,536,213 92764
TOTAL GRF General Revenue Fund $ 1,536,213 $ 1,536,213 92765

General Services Fund Group92766

4M6 146-601 Operating Expenses $ 502,543 $ 432,543 92767
TOTAL GSF General Services 92768
Fund Group $ 502,543 $ 432,543 92769
TOTAL ALL BUDGET FUND GROUPS $ 2,038,756 $ 1,968,756 92770


       Section 206.36. EXP OHIO EXPOSITIONS COMMISSION92772

General Revenue Fund92773

GRF 723-403 Junior Fair Subsidy $ 400,000 $ 400,000 92774
TOTAL GRF General Revenue Fund $ 400,000 $ 400,000 92775

State Special Revenue Fund Group92776

4N2 723-602 Ohio State Fair Harness Racing $ 520,000 $ 520,000 92777
506 723-601 Operating Expenses $ 13,643,315 $ 13,643,315 92778
TOTAL SSR State Special Revenue 92779
Fund Group $ 14,163,315 $ 14,163,315 92780
TOTAL ALL BUDGET FUND GROUPS $ 14,563,315 $ 14,563,315 92781


       Section 206.39.  GOV OFFICE OF THE GOVERNOR92783

General Revenue Fund92784

GRF 040-321 Operating Expenses $ 3,981,582 $ 3,981,582 92785
GRF 040-403 Federal Relations $ 422,760 $ 422,760 92786
GRF 040-408 Office of Veterans' Affairs $ 292,923 $ 267,923 92787
TOTAL GRF General Revenue Fund $ 4,697,265 $ 4,672,265 92788

General Services Fund Group92789

5AK 040-607 Federal Relations $ 354,514 $ 354,514 92790
TOTAL GSF General Services Fund Group $ 354,514 $ 354,514 92791

TOTAL ALL BUDGET FUND GROUPS $ 5,051,779 $ 5,026,779 92792

       APPOINTMENT OF LEGAL COUNSEL FOR THE GOVERNOR92793

       The Governor may expend a portion of the foregoing92794
appropriation item 040-321, Operating Expenses, to hire or appoint92795
legal counsel to be used in proceedings involving the Governor in92796
the Governor's official capacity or the Governor's office only,92797
without the approval of the Attorney General, notwithstanding92798
sections 109.02 and 109.07 of the Revised Code.92799

       OHIO VETERANS' HALL OF FAME92800

       Of the foregoing appropriation item 040-408, Office of 92801
Veterans' Affairs, $25,000 shall be used in fiscal year 2006 to 92802
fund Ohio Veterans' Hall of Fame expenses.92803

       FEDERAL RELATIONS92804

       A portion of the foregoing appropriation items 040-403, 92805
Federal Relations, and 040-607, Federal Relations, may be used to 92806
support Ohio's membership in national or regional associations.92807

       The Office of the Governor may charge any state agency of the 92808
executive branch using an intrastate transfer voucher such amounts 92809
necessary to defray the costs incurred for the conduct of federal 92810
relations associated with issues that can be attributed to the 92811
agency. Amounts collected shall be deposited to the Office of the 92812
Governor Federal Relations Fund (Fund 5AK).92813

       Section 206.42.  DOH DEPARTMENT OF HEALTH92814

General Revenue Fund92815

GRF 440-407 Animal Borne Disease and Prevention $ 2,452,101 $ 2,452,101 92816
GRF 440-412 Cancer Incidence Surveillance System $ 1,002,619 $ 1,002,619 92817
GRF 440-413 Local Health Department Support $ 3,786,794 $ 3,786,794 92818
GRF 440-416 Child and Family Health Services $ 9,682,874 $ 9,582,874 92819
GRF 440-418 Immunizations $ 8,600,615 $ 9,400,615 92820
GRF 440-431 Free Clinic Liability Insurance $ 275,000 $ 325,000 92821
GRF 440-444 AIDS Prevention and Treatment $ 7,158,127 $ 7,158,127 92822
GRF 440-446 Infectious Disease Prevention $ 200,000 $ 200,000 92823
GRF 440-451 Lab and Public Health Prevention Programs $ 6,085,250 $ 6,085,250 92824
GRF 440-452 Child and Family Health Services Match $ 1,024,017 $ 1,024,017 92825
GRF 440-453 Health Care Quality Assurance $ 10,253,728 $ 10,253,728 92826
GRF 440-454 Local Environmental Health $ 889,752 $ 889,752 92827
GRF 440-459 Help Me Grow $ 9,323,797 $ 9,323,797 92828
GRF 440-461 Center for Vital and Health Stats $ 3,629,535 $ 3,629,535 92829
GRF 440-505 Medically Handicapped Children $ 9,591,784 $ 8,791,784 92830
GRF 440-507 Targeted Health Care Services Over 21 $ 1,631,023 $ 1,631,023 92831
TOTAL GRF General Revenue Fund $ 75,587,016 $ 75,537,016 92832

General Services Fund Group92833

142 440-618 Agency Health Services $ 2,461,915 $ 2,561,915 92834
211 440-613 Central Support Indirect Costs $ 26,584,707 $ 26,584,707 92835
473 440-622 Lab Operating Expenses $ 4,154,045 $ 4,154,045 92836
683 440-633 Employee Assistance Program $ 1,208,214 $ 1,208,214 92837
698 440-634 Nurse Aide Training $ 170,000 $ 170,000 92838
TOTAL GSF General Services 92839
Fund Group $ 34,578,881 $ 34,678,881 92840

Federal Special Revenue Fund Group92841

320 440-601 Maternal Child Health Block Grant $ 28,779,322 $ 29,025,635 92842
387 440-602 Preventive Health Block Grant $ 7,755,005 $ 7,826,659 92843
389 440-604 Women, Infants, and Children $ 219,920,083 $ 230,077,451 92844
391 440-606 Medicaid/Medicare $ 24,211,198 $ 24,850,959 92845
392 440-618 Federal Public Health Programs $ 126,678,202 $ 127,677,458 92846
TOTAL FED Federal Special Revenue 92847
Fund Group $ 407,343,810 $ 419,458,162 92848

State Special Revenue Fund Group92849

4D6 440-608 Genetics Services $ 2,617,000 $ 2,617,000 92850
4F9 440-610 Sickle Cell Disease Control $ 1,035,344 $ 1,035,344 92851
4G0 440-636 Heirloom Birth Certificate $ 5,000 $ 5,000 92852
4G0 440-637 Birth Certificate Surcharge $ 5,000 $ 5,000 92853
4L3 440-609 Non-Governmental Grants and Awards $ 144,119 $ 144,119 92854
4T4 440-603 Child Highway Safety $ 233,894 $ 233,894 92855
4V6 440-641 Save Our Sight $ 1,767,994 $ 1,767,994 92856
470 440-618 Fee Supported Programs $ 16,025,194 $ 16,025,194 92857
471 440-619 Certificate of Need $ 581,572 $ 594,572 92858
477 440-627 Medically Handicapped Children Audit $ 3,800,000 $ 3,693,016 92859
5BL 440-638 Healthy Ohioans $ 5,000,000 $ 0 92860
5B5 440-616 Quality, Monitoring, and Inspection $ 838,479 $ 838,479 92861
5CB 440-640 Poison Control Centers $ 200,000 $ 200,000 92862
5C0 440-615 Alcohol Testing and Permit $ 1,455,405 $ 1,455,405 92863
5D6 440-620 Second Chance Trust $ 1,054,951 $ 1,054,951 92864
5G4 440-639 Adoption Services $ 20,000 $ 20,000 92865
5L1 440-623 Nursing Facility Technical Assistance Program $ 617,517 $ 617,517 92866
610 440-626 Radiation Emergency Response $ 850,000 $ 850,000 92867
666 440-607 Medically Handicapped Children - County Assessments $ 14,320,687 $ 14,320,687 92868
TOTAL SSR State Special Revenue 92869
Fund Group $ 50,572,156 $ 45,478,172 92870

Holding Account Redistribution Fund Group92871

R14 440-631 Vital Statistics $ 70,000 $ 70,000 92872
R48 440-625 Refunds, Grants Reconciliation, and Audit Settlements $ 20,000 $ 20,000 92873
TOTAL 090 Holding Account 92874
Redistribution Fund Group $ 90,000 $ 90,000 92875
TOTAL ALL BUDGET FUND GROUPS $ 568,171,863 $ 575,242,231 92876


       Section 206.42.03. CHILD AND FAMILY HEALTH SERVICES92878

       Of the foregoing appropriation item 440-416, Child and Family92879
Health Services, not more than $1,700,000 in each fiscal year 92880
shall be used for women's health services.92881

       Of the foregoing appropriation item 440-416, Child and Family92882
Health Services, not more than $270,000 shall be used in each 92883
fiscal year for the OPTIONS dental care access program.92884

       Of the foregoing appropriation item 440-416, Child and Family92885
Health Services, not more than $900,000 in each fiscal year shall 92886
be used by federally qualified health centers and federally 92887
designated look-alikes to provide services to uninsured low-income 92888
persons.92889

       Of the foregoing appropriation item 440-416, Child and Family 92890
Health Services, not more than $500,000 in each fiscal year shall 92891
be used for abstinence-only education. The Director of Health 92892
shall develop guidelines for the establishment of abstinence 92893
programs for teenagers with the purpose of decreasing unplanned 92894
pregnancies and abortion. The guidelines shall be developed 92895
pursuant to Title V of the "Social Security Act," 42 U.S.C. 510, 92896
and shall include, but are not limited to, advertising campaigns 92897
and direct training in schools and other locations.92898

       Of the foregoing appropriation item 440-416, Child and Family 92899
Health Services, $10,000 in each fiscal year shall be allocated to 92900
the Jewish Family Services in Cleveland, $10,000 in each fiscal 92901
year shall be allocated to the Jewish Family Services in 92902
Cincinnati, $10,000 shall be allocated in each fiscal year to the 92903
Jewish Family Services in Columbus, and $10,000 in each fiscal 92904
year shall be allocated to the Wexner Heritage Village in Columbus 92905
for interpreters for health care.92906

       Of the foregoing appropriation item 440-416, Child and Family 92907
Health Services, $10,000 in each fiscal year shall be provided to 92908
the Jewish Family Services in Dayton, $5,000 in each fiscal year 92909
shall be provided to the Jewish Community Center in Akron, $5,000 92910
in each fiscal year shall be provided to the Jewish Community 92911
Center in Sylvania, $2,500 in each fiscal year shall be provided 92912
to the Jewish Community Center in Youngstown, and $2,500 in each 92913
fiscal year shall be provided to the Jewish Community Center in 92914
Canton.92915

       Of the foregoing appropriation item 440-416, Child and Family 92916
Health Services, $450,000 in each fiscal year shall be allocated 92917
to the Visiting Nurse Association.92918

       Of the foregoing appropriation item 440-416, Child and Family 92919
Health Services, $16,667 in each fiscal year shall be allocated to 92920
the Yassenoff Jewish Community Center, $16,667 in each fiscal year 92921
shall be allocated to the Jewish Community Center in Cincinnati, 92922
and $16,666 in each fiscal year shall be allocated to the Jewish 92923
Community Center in Cleveland for children's health and nutrition 92924
camp programs.92925

       Of the foregoing appropriation item 440-416, Child and Family 92926
Health Services, $25,000 in each fiscal year shall be allocated to 92927
Clermont County's Comprehensive Community Suicide Prevention 92928
Program.92929

       Of the foregoing appropriation item 440-416, Child and Family 92930
Health Services, $100,000 in fiscal year 2006 shall be allocated 92931
to People Working Cooperatively in Cincinnati.92932

       Of the foregoing appropriation item 440-416, Child and Family 92933
Health Services, $50,000 in each fiscal year shall be allocated to 92934
the Mayerson Inclusion Project.92935

       Section 206.42.06.  WOMEN'S HEALTH SERVICES92936

       None of the funds received through grants for women's health 92937
services under this section from the foregoing appropriation item 92938
440-416, Child and Family Health Services, shall be used to 92939
provide abortion services. None of the funds received through 92940
these grants shall be used for counseling for or referrals for92941
abortion, except in the case of a medical emergency. These funds92942
shall be distributed by the Director of Health to programs that 92943
the Department of Health determines will provide services that are92944
physically and financially separate from abortion-providing and92945
abortion-promoting activities, and that do not include counseling92946
for or referrals for abortion, other than in the case of medical92947
emergency.92948

       These women's health services include and are limited to the 92949
following: pelvic examinations and laboratory testing; breast 92950
examinations and patient education on breast cancer; screening for 92951
cervical cancer; screening and treatment for Sexually Transmitted 92952
Diseases (STDs) and HIV screening; voluntary choice of 92953
contraception, including abstinence and natural family planning; 92954
patient education and pre-pregnancy counseling on the dangers of 92955
smoking, alcohol, and drug use during pregnancy; education on 92956
sexual coercion and violence in relationships; and prenatal care 92957
or referral for prenatal care. These health care services shall be 92958
provided by licensed doctors, licensed nurses, licensed medical 92959
assistants, licensed counselors, and licensed social workers in a 92960
medical clinic setting.92961

       The Director of Health shall adopt rules under Chapter 119. 92962
of the Revised Code specifying reasonable eligibility standards 92963
that must be met to receive the state funding and provide 92964
reasonable methods by which a grantee wishing to be eligible for 92965
federal funding may comply with these requirements for state 92966
funding without losing its eligibility for federal funding.92967

       Each applicant for these funds shall provide sufficient 92968
assurance to the Director of Health of all of the following:92969

        (A) The program shall not discriminate in the provision of 92970
services based on an individual's religion, race, national origin, 92971
handicapping condition, age, sex, number of pregnancies, or 92972
marital status;92973

        (B) The program shall provide services without subjecting 92974
individuals to any coercion to accept services or to employ any 92975
particular methods of family planning;92976

        (C) Acceptance of services shall be solely on a voluntary 92977
basis and may not be made a prerequisite to eligibility for, or 92978
receipt of, any other service, assistance from, or participation 92979
in, any other program of the service provider;92980

        (D) The costs for services provided by the program, if any 92981
are charged, shall be based on the patient's ability to pay and 92982
priority in the provision of services shall be given to persons 92983
from low-income families.92984

       In distributing these grant funds, the Director of Health 92985
shall give priority to grant requests from local departments of 92986
health for women's health services to be provided directly by 92987
personnel of the local department of health. The Director of 92988
Health shall issue a single request for proposals for all grants 92989
under this set-aside. The Director of Health shall send a 92990
notification of this request for proposals to every local 92991
department of health in this state and shall place a notification 92992
on the department's web site. The Director shall allow at least 30 92993
days after issuing this notification before closing the period to 92994
receive applications.92995

        After the closing date for receiving grant applications, the 92996
Director of Health shall first consider grant applications from 92997
local departments of health that apply for grants for women's 92998
health services to be provided directly by personnel of the local 92999
department of health. Local departments of health that apply for 93000
grants for women's health services to be provided directly by 93001
personnel of the local department of health need not provide all 93002
the listed women's health services in order to qualify for a 93003
grant. However, in prioritizing awards among local departments of 93004
health that qualify for funding under this paragraph, the Director 93005
of Health may consider, among other reasonable factors, the 93006
comprehensiveness of the women's health services to be offered, 93007
provided that no local department of health shall be discriminated 93008
against in the process of awarding these grant funds because the 93009
applicant does not provide contraception.93010

       If funds remain after awarding grants to all local 93011
departments of health that qualify for the priority, the Director 93012
of Health may make grants to other applicants. Awards to other 93013
applicants may be made to those applicants that will offer all 93014
eight of the listed women's health services or that will offer all 93015
of the services except contraception. No applicant shall be 93016
discriminated against in the process of awarding these grant funds 93017
because the applicant does not provide contraception.93018

       Section 206.42.09. IMMUNIZATIONS93019

       Of the foregoing appropriation item 440-418, Immunizations, 93020
$800,000 in fiscal year 2007 shall be used for the purchase of 93021
varicella vaccines.93022

       FREE CLINIC LIABILITY INSURANCE93023

        Of the foregoing appropriation item 440-431, Free Clinic 93024
Liability Insurance, up to $20,000 in each fiscal year may be used 93025
by the Department of Health for administrative expenses related to 93026
the Medical Liability Insurance Reimbursement Program. The 93027
remainder in each fiscal year shall be used to pay for medical 93028
liability insurance for free clinics, including the clinics' staff 93029
and volunteer health care professionals and volunteer health care 93030
workers. The necessity and feasibility of the program shall be 93031
reviewed as part of the next biennial budget.93032

       HIV/AIDS PREVENTION/TREATMENT93033

       Of the foregoing appropriation item 440-444, AIDS Prevention93034
and Treatment, not more than $6.7 million per fiscal year shall be 93035
used to assist persons with HIV/AIDS in acquiring HIV-related 93036
medications.93037

       INFECTIOUS DISEASE PREVENTION93038

       The foregoing appropriation item 440-446, Infectious Disease 93039
Prevention, shall be used for the purchase of drugs for sexually 93040
transmitted diseases.93041

       HELP ME GROW93042

       The foregoing appropriation item 440-459, Help Me Grow, shall93043
be used by the Department of Health to distribute subsidies to93044
counties to implement the Help Me Grow Program. Appropriation item 93045
440-459, Help Me Grow, may be used in conjunction with Temporary 93046
Assistance for Needy Families from the Department of Job and 93047
Family Services, Early Intervention funding from the Department of 93048
Mental Retardation and Developmental Disabilities, and in 93049
conjunction with other early childhood funds and services to 93050
promote the optimal development of young children. Local contracts 93051
shall be developed between local departments of job and family 93052
services and family and children first councils for the93053
administration of TANF funding for the Help Me Grow Program. The93054
Department of Health shall enter into an interagency agreement93055
with the Department of Education, Department of Mental Retardation 93056
and Developmental Disabilities, Department of Job and Family 93057
Services, and Department of Mental Health to ensure that all early 93058
childhood programs and initiatives are coordinated and school 93059
linked.93060

       TARGETED HEALTH CARE SERVICES OVER 2193061

       In each fiscal year, of the foregoing appropriation item 93062
440-507, Targeted Health Care Services Over 21, $731,023 shall be 93063
used to administer the cystic fibrosis program and implement the 93064
Hemophilia Insurance Premium Payment Program.93065

       Of the foregoing appropriation item 440-507, Targeted Health 93066
Care Services Over 21, $900,000 in each fiscal year shall be used 93067
to provide essential medications for the cystic fibrosis program.93068

       MATERNAL CHILD HEALTH BLOCK GRANT93069

       Of the foregoing appropriation item 440-601, Maternal Child93070
Health Block Grant (Fund 320), $2,091,299 shall be used in each93071
fiscal year for the purposes of abstinence-only education. The93072
Director of Health shall develop guidelines for the establishment93073
of abstinence programs for teenagers with the purpose of93074
decreasing unplanned pregnancies and abortion. The guidelines93075
shall be developed under Title V of the "Social Security Act," 4293076
U.S.C. 510, and shall include, but are not limited to, advertising93077
campaigns and direct training in schools and other locations.93078

       GENETICS SERVICES93079

       The foregoing appropriation item 440-608, Genetics Services93080
(Fund 4D6), shall be used by the Department of Health to93081
administer programs authorized by sections 3701.501 and 3701.50293082
of the Revised Code. None of these funds shall be used to counsel93083
or refer for abortion, except in the case of a medical emergency.93084

       SAFETY AND QUALITY OF CARE STANDARDS93085

       The Department of Health may use Fund 471, Certificate of93086
Need, for administering sections 3702.11 to 3702.20 and 3702.30 of93087
the Revised Code in each fiscal year.93088

       MEDICALLY HANDICAPPED CHILDREN AUDIT93089

       The Medically Handicapped Children Audit Fund (Fund 477)93090
shall receive revenue from audits of hospitals and recoveries from93091
third-party payers. Moneys may be expended for payment of audit93092
settlements and for costs directly related to obtaining recoveries93093
from third-party payers and for encouraging Medically Handicapped93094
Children's Program recipients to apply for third-party benefits.93095
Moneys also may be expended for payments for diagnostic and93096
treatment services on behalf of medically handicapped children, as93097
defined in division (A) of section 3701.022 of the Revised Code,93098
and Ohio residents who are twenty-one or more years of age and who93099
are suffering from cystic fibrosis or hemophilia. Moneys may also 93100
be expended for administrative expenses incurred in operating the 93101
Medically Handicapped Children's Program.93102

       CASH TRANSFER FROM LIQUOR CONTROL FUND TO ALCOHOL TESTING AND93103
PERMIT FUND93104

       The Director of Budget and Management, pursuant to a plan93105
submitted by the Department of Health, or as otherwise determined93106
by the Director of Budget and Management, shall set a schedule to93107
transfer cash from the Liquor Control Fund (Fund 043) to the93108
Alcohol Testing and Permit Fund (Fund 5C0) to meet the operating93109
needs of the Alcohol Testing and Permit program.93110

       The Director of Budget and Management shall transfer to the93111
Alcohol Testing and Permit Fund (Fund 5C0) from the Liquor Control93112
Fund (Fund 043) created in section 4301.12 of the Revised Code93113
such amounts at such times as determined by the transfer schedule.93114

       MEDICALLY HANDICAPPED CHILDREN - COUNTY ASSESSMENTS93115

       The foregoing appropriation item 440-607, Medically93116
Handicapped Children - County Assessments (Fund 666), shall be93117
used to make payments under division (E) of section 3701.023 of 93118
the Revised Code.93119

       Section 206.42.12. MEDICALLY HANDICAPPED CHILDREN - FUTURE 93120
FUNDING93121

       (A) There is hereby created the Legislative Committee on the 93122
Future Funding of the Bureau for Children with Medical Handicaps. 93123
The Speaker of the House of Representatives shall appoint three 93124
members of the House of Representatives, not more than two of whom 93125
shall belong to the same political party as the Speaker. The 93126
President of the Senate shall appoint three members of the Senate, 93127
not more than two of whom shall belong to the same political party 93128
as the President. The Speaker of the House of Representatives and 93129
the President of the Senate shall each appoint three members of 93130
the general public who each suffer from a different disease or 93131
disorder covered by the Program for Medically Handicapped Children 93132
(otherwise known as the Bureau for Children with Medical 93133
Handicaps) in the Ohio Department of Health, or family members of 93134
such individuals. The following also shall serve on the Committee:93135

       (1) The Director of Health, or the Director's designee;93136

       (2) The Superintendent of Insurance, or the Superintendent's 93137
designee;93138

       (3) The Director of Job and Family Services, or the 93139
Director's designee;93140

       (4) One person designated by the County Commissioners 93141
Association of Ohio;93142

       (5) One person designated by the Ohio Children's Hospital 93143
Association;93144

       (6) One person designated by the Ohio Association of Health 93145
Plans;93146

       (7) One person designated by the American Academy of 93147
Pediatrics;93148

       (8) One person designated by the Ohio hospital association;93149

        (9) One person designated by the Ohio association of health 93150
commissioners;93151

        (10) One person designated by the Ohio nurses association.93152

       Members of the Committee shall elect a chairperson. A 93153
majority of the members of the Committee constitutes a quorum for 93154
the conduct of Committee meetings.93155

        (B) Members of the Committee shall receive no compensation.93156

        (C) The Committee shall do all of the following:93157

        (1) Examine the current status of the Program and recommend 93158
best practices to be used in assisting working parents who have 93159
children with special health needs;93160

        (2) Review all existing statutes and rules in Ohio pertaining 93161
to the Program;93162

        (3) Review payment strategies in other states that facilitate 93163
adequate care for children with chronic conditions and support 93164
their families;93165

        (4) Review all funding sources for the Program, including 93166
funding received from county levies, the General Revenue Fund and 93167
other state-based sources, and the Maternal and Child Health Block 93168
Grant of Title V of the "Social Security Act," 40 Stat. 620 93169
(1935), 42 U.S.C. 301;93170

        (5) Request testimony from parents of children with special 93171
health needs and the children themselves and from health care 93172
professionals and other individuals who provide services to Bureau 93173
patients;93174

        (D) Not later than December 31, 2006, the Committee shall 93175
make recommendations and submit a report to the Governor, the 93176
President and Minority Leader of the Senate, and the Speaker and 93177
Minority Leader of the House of Representatives. The report shall 93178
include an analysis of the current system of services covered by 93179
the Program and may include determinations and recommendations 93180
regarding how the state can best address the current and future 93181
needs of patients served by the Program. On submission of the 93182
report, the Committee shall cease to exist.93183

       Section 206.42.13. REVISION OF RULES GOVERNING PROGRAM FOR 93184
MEDICALLY HANDICAPPED CHILDREN93185

       Not later than December 1, 2005, the Public Health Council 93186
shall revise rule 3701-43-16 of the Administrative Code regarding 93187
financial eligibility for payment for treatment under the Program 93188
for Medically Handicapped Children. As part of the revision, the 93189
Public Health Council shall return the financial eligibility 93190
levels for fiscal years 2006 and 2007 to the levels in effect 93191
prior to October 13, 2003.93192

       Beginning July 1, 2005, the Department of Health shall 93193
contact all persons who lost eligibility for the Program for 93194
Medically Handicapped Children or their parents or guardians to 93195
inform them of revisions made to the Program's eligibility rules.93196

       Section 206.42.16. NURSING FACILITY TECHNICAL ASSISTANCE 93197
PROGRAM93198

       The Director of Budget and Management shall transfer, by 93199
intrastate transfer voucher, each fiscal year, cash from Fund 4E3, 93200
Resident Protection Fund, in the Ohio Department of Job and Family 93201
Services, to Fund 5L1, Nursing Facility Technical Assistance 93202
Program Fund, in the Ohio Department of Health, to be used under 93203
section 3721.026 of the Revised Code. The transfers shall equal 93204
$183,843 in fiscal year 2006 and $617,517 in fiscal year 2007.93205

       Section 206.42.19. TRANSFER FROM STATE FIRE MARSHAL'S FUND 93206
(FUND 546) TO THE POISON CONTROL FUND (FUND 5CB) IN THE DEPARTMENT 93207
OF HEALTH93208

        Notwithstanding section 3737.71 of the Revised Code, on July 93209
1, 2005, or as soon as possible thereafter, the Director of Budget 93210
and Management shall transfer $200,000 cash from the State Fire 93211
Marshal's Fund (Fund 546) in the Department of Commerce to the 93212
Poison Control Fund (Fund 5CB) in the Department of Health, which 93213
is hereby created. Notwithstanding section 3737.71 of the Revised 93214
Code, on July 1, 2006, or as soon as possible thereafter, the 93215
Director of Budget and Management shall transfer $200,000 cash 93216
from the State Fire Marshal's Fund (Fund 546) in the Department of 93217
Commerce to the Poison Control Fund (Fund 5CB) in the Department 93218
of Health.93219

        POISON CONTROL CENTERS93220

        Of the foregoing appropriation item 440-640, Poison Control 93221
Centers, in each fiscal year, the poison control centers in the 93222
municipal corporations of Cleveland, Cincinnati, and Columbus 93223
shall each receive on allocation of $50,000, and the Greater 93224
Dayton Area Hospital Association shall also receive an allocation 93225
of $50,000 for poison control purposes.93226

       Section 206.45. HEF HIGHER EDUCATIONAL FACILITY COMMISSION93227

Agency Fund Group93228

461 372-601 Operating Expenses $ 16,819 $ 16,819 93229
TOTAL AGY Agency Fund Group $ 16,819 $ 16,819 93230
TOTAL ALL BUDGET FUND GROUPS $ 16,819 $ 16,819 93231


       Section 206.48.  SPA COMMISSION ON HISPANIC/LATINO AFFAIRS93233

General Revenue Fund93234

GRF 148-100 Personal Services $ 145,880 $ 145,880 93235
GRF 148-200 Maintenance $ 35,901 $ 35,901 93236
TOTAL GRF General Revenue Fund $ 181,781 $ 181,781 93237

General Services Fund Group93238

601 148-602 Gifts and Miscellaneous $ 20,000 $ 20,000 93239
TOTAL GSF General Services 93240
Fund Group $ 20,000 $ 20,000 93241
TOTAL ALL BUDGET FUND GROUPS $ 201,781 $ 201,781 93242


       Section 206.51. OHS OHIO HISTORICAL SOCIETY93244

General Revenue Fund93245

GRF 360-501 Operating Subsidy $ 3,288,274 $ 3,288,274 93246
GRF 360-502 Site Operations $ 8,388,725 $ 8,388,725 93247
GRF 360-504 Ohio Preservation Office $ 281,041 $ 281,041 93248
GRF 360-505 Afro-American Museum $ 754,884 $ 754,884 93249
GRF 360-506 Hayes Presidential Center $ 509,231 $ 509,231 93250
GRF 360-508 Historical Grants $ 1,097,500 $ 1,072,500 93251
TOTAL GRF General Revenue Fund $ 14,319,655 $ 14,294,655 93252
TOTAL ALL BUDGET FUND GROUPS $ 14,319,655 $ 14,294,655 93253

       SUBSIDY APPROPRIATION93254

       Upon approval by the Director of Budget and Management, the93255
foregoing appropriation items shall be released to the Ohio93256
Historical Society in quarterly amounts that in total do not93257
exceed the annual appropriations. The funds and fiscal records of93258
the society for fiscal years 2006 and 2007 shall be examined by93259
independent certified public accountants approved by the Auditor93260
of State, and a copy of the audited financial statements shall be93261
filed with the Office of Budget and Management. The society shall93262
prepare and submit to the Office of Budget and Management the93263
following:93264

       (A) An estimated operating budget for each fiscal year of the 93265
biennium. The operating budget shall be submitted at or near the 93266
beginning of each calendar year.93267

       (B) Financial reports, indicating actual receipts and93268
expenditures for the fiscal year to date. These reports shall be93269
filed at least semiannually during the fiscal biennium.93270

       The foregoing appropriations shall be considered to be the93271
contractual consideration provided by the state to support the93272
state's offer to contract with the Ohio Historical Society under93273
section 149.30 of the Revised Code.93274

       HAYES PRESIDENTIAL CENTER93275

       If a United States government agency, including, but not93276
limited to, the National Park Service, chooses to take over the93277
operations or maintenance of the Hayes Presidential Center, in93278
whole or in part, the Ohio Historical Society shall make93279
arrangements with the National Park Service or other United States93280
government agency for the efficient transfer of operations or93281
maintenance.93282

       HISTORICAL GRANTS93283

        Of the foregoing appropriation item 360-508, Historical 93284
Grants, $250,000 in each fiscal year shall be distributed to the 93285
Western Reserve Historical Society in Cleveland.93286

        Of the foregoing appropriation item 360-508, Historical 93287
Grants, $225,000 in each fiscal year shall be distributed to the 93288
Great Lakes Historical Society in Vermilion.93289

        Of the foregoing appropriation item 360-508, Historical 93290
Grants, $75,000 in each fiscal year shall be distributed to the 93291
Hebrew Union College in Cincinnati for the Center for Holocaust 93292
and Humanity Education, $100,000 in each fiscal year shall be 93293
distributed to Art Academy of Cincinnati, and $250,000 in each 93294
fiscal year shall be distributed to the Cincinnati Museum Center.93295

       Of the foregoing appropriation item 360-508, Historical 93296
Grants, $12,500 in each fiscal year shall be distributed to the 93297
Roseville Historical Society.93298

        Of the foregoing appropriation item 360-508, Historical 93299
Grants, $125,000 in each fiscal year shall be distributed to the 93300
Harbor Heritage Society Steamship Mather in Cleveland.93301

        Of the foregoing appropriation item 360-508, Historical 93302
Grants, $35,000 in each fiscal year shall be distributed to the 93303
Castle Farm project in the City of Mason.93304

       PROCESSING FEES 93305

       The Ohio Historical Society shall not charge or retain an 93306
administrative, service, or processing fee for distributing money 93307
that the General Assembly appropriates to the Society for grants 93308
or subsidies that the Society provides to other entities for their 93309
site-related programs.93310

       Of the foregoing appropriation item 360-508, Historical 93311
Grants, $25,000 in fiscal year 2006 shall be distributed to the 93312
Springboro Historical Society Heritage Triangle.93313

       Section 206.54.  REP OHIO HOUSE OF REPRESENTATIVES93314

General Revenue Fund93315

GRF 025-321 Operating Expenses $ 20,169,168 $ 20,370,859 93316
TOTAL GRF General Revenue Fund $ 20,169,168 $ 20,370,859 93317

General Services Fund Group93318

103 025-601 House Reimbursement $ 1,419,469 $ 1,419,469 93319
4A4 025-602 Miscellaneous Sales $ 37,474 $ 37,474 93320
TOTAL GSF General Services 93321
Fund Group $ 1,456,943 $ 1,456,943 93322
TOTAL ALL BUDGET FUND GROUPS $ 21,626,111 $ 21,827,802 93323

        OPERATING EXPENSES93324

       On July 1, 2005, or as soon as possible thereafter, the Chief 93325
Administrative Officer of the House of Representatives shall 93326
certify to the Director of Budget and Management the total fiscal 93327
year 2005 unencumbered appropriations in appropriation item 93328
025-321, Operating Expenses. The Chief Administrative Officer may 93329
direct the Director of Budget and Management to transfer an amount 93330
not to exceed the total fiscal year 2005 unencumbered 93331
appropriations to fiscal year 2006 for use within appropriation 93332
item 025-321, Operating Expenses. Additional appropriation 93333
authority equal to the amount certified by the Chief 93334
Administrative Officer is hereby appropriated to appropriation 93335
item 025-321, Operating Expenses, in fiscal year 2006.93336

        On July 1, 2006, or as soon as possible thereafter, the Chief 93337
Administrative Officer of the House of Representatives shall 93338
certify to the Director of Budget and Management the total fiscal 93339
year 2006 unencumbered appropriations in appropriation item 93340
025-321, Operating Expenses. The Chief Administrative Officer may 93341
direct the Director of Budget and Management to transfer an amount 93342
not to exceed the total fiscal year 2006 unencumbered 93343
appropriations to fiscal year 2007 for use within appropriation 93344
item 025-321, Operating Expenses. Additional appropriation 93345
authority equal to the amount certified by the Chief 93346
Administrative Officer is hereby appropriated to appropriation 93347
item 025-321, Operating Expenses, in fiscal year 2007.93348

       Section 206.57. HFA OHIO HOUSING FINANCE AGENCY93349

General Services Fund Group93350

5AZ 997-601 Housing Finance Agency Personal Services $ 8,100,000 $ 8,100,000 93351
TOTAL GSF General Services Fund Group $ 8,100,000 $ 8,100,000 93352
TOTAL ALL BUDGET FUND GROUPS $ 8,100,000 $ 8,100,000 93353


       Section 206.60.  IGO OFFICE OF THE INSPECTOR GENERAL93355

General Revenue Fund93356

GRF 965-321 Operating Expenses $ 1,700,868 $ 979,085 93357
TOTAL GRF General Revenue Fund $ 1,700,868 $ 979,085 93358

General Services Fund Group93359

4Z3 965-602 Special Investigations $ 100,000 $ 100,000 93360
TOTAL GSF General Services Fund Group $ 100,000 $ 100,000 93361
TOTAL ALL BUDGET FUND GROUPS $ 1,800,868 $ 1,079,085 93362

       BUREAU OF WORKERS' COMPENSATION FIDUCIARY REVIEW93363

       Of the foregoing appropriation item 965-321, Operating 93364
Expenses, up to $750,000 in fiscal year 2006 shall be used to 93365
contract with an independent firm to conduct a fiduciary review of 93366
assets invested pursuant to the Administrator of Workers' 93367
Compensation's authority under Chapters 4121., 4123., 4127., and 93368
4131. of the Revised Code.93369

       SPECIAL INVESTIGATIONS93370

       Of the foregoing appropriation item 965-602, Special93371
Investigations, up to $100,000 in each fiscal year may be used for93372
investigative costs, pursuant to section 121.481 of the Revised93373
Code.93374

       Section 206.63.  INS DEPARTMENT OF INSURANCE93375

Federal Special Revenue Fund Group93376

3U5 820-602 OSHIIP Operating Grant $ 1,080,000 $ 1,080,000 93377
3AV 820-604 Federal Grant - Special Project $ 55,000 $ 0 93378
TOTAL FED Federal Special 93379
Revenue Fund Group $ 1,135,000 $ 1,080,000 93380

State Special Revenue Fund Group93381

554 820-601 Operating Expenses - OSHIIP $ 564,754 $ 571,772 93382
554 820-606 Operating Expenses $ 22,654,232 $ 22,832,214 93383
555 820-605 Examination $ 7,639,581 $ 7,639,581 93384
TOTAL SSR State Special Revenue 93385
Fund Group $ 30,858,567 $ 31,043,567 93386
TOTAL ALL BUDGET FUND GROUPS $ 31,993,567 $ 32,123,567 93387

       MARKET CONDUCT EXAMINATION93388

       When conducting a market conduct examination of any insurer93389
doing business in this state, the Superintendent of Insurance may93390
assess the costs of the examination against the insurer. The93391
superintendent may enter into consent agreements to impose93392
administrative assessments or fines for conduct discovered that93393
may be violations of statutes or rules administered by the93394
superintendent. All costs, assessments, or fines collected shall93395
be deposited to the credit of the Department of Insurance93396
Operating Fund (Fund 554).93397

       EXAMINATIONS OF DOMESTIC FRATERNAL BENEFIT SOCIETIES93398

       The Director of Budget and Management, at the request of the 93399
Superintendent of Insurance, may transfer funds from the93400
Department of Insurance Operating Fund (Fund 554), created by93401
section 3901.021 of the Revised Code, to the Superintendent's93402
Examination Fund (Fund 555), created by section 3901.071 of the93403
Revised Code, only for expenses incurred in examining domestic93404
fraternal benefit societies as required by section 3921.28 of the93405
Revised Code.93406

       Section 206.66.  JFS DEPARTMENT OF JOB AND FAMILY SERVICES93407

General Revenue Fund93408

GRF 600-321 Support Services 93409
State $ 63,797,907 $ 60,565,397 93410
Federal $ 8,114,493 $ 8,454,541 93411
Support Services Total $ 71,912,400 $ 69,019,938 93412
GRF 600-410 TANF State $ 272,619,061 $ 272,619,061 93413
GRF 600-413 Child Care Match/Maintenance of Effort $ 84,120,596 $ 84,120,596 93414
GRF 600-416 Computer Projects 93415
State $ 114,516,710 $ 117,226,021 93416
Federal $ 37,579,198 $ 34,255,465 93417
Computer Projects Total $ 152,095,908 $ 151,481,486 93418
GRF 600-420 Child Support Administration $ 5,091,446 $ 5,091,446 93419
GRF 600-421 Office of Family Stability $ 4,864,932 $ 4,864,932 93420
GRF 600-423 Office of Children and Families $ 5,408,020 $ 5,431,690 93421
GRF 600-425 Office of Ohio Health Plans 93422
State $ 24,803,631 $ 24,054,873 93423
Federal $ 26,539,544 $ 25,810,409 93424
Office of Ohio Health Plans Total $ 51,343,175 $ 49,865,282 93425
GRF 600-502 Child Support Match $ 16,814,103 $ 16,814,103 93426
GRF 600-511 Disability Financial Assistance $ 22,839,371 $ 22,839,371 93427
GRF 600-512 Non-TANF Disaster Assistance $ 1,000,000 $ 1,000,000 93428
GRF 600-513 Disability Medical Assistance $ 19,500,000 $ 25,500,000 93429
GRF 600-521 Entitlement Administration - Local $ 151,206,401 $ 151,206,401 93430
GRF 600-523 Children and Families Subsidy $ 69,438,543 $ 69,438,543 93431
GRF 600-525 Health Care/Medicaid 93432
State $ 3,751,848,959 $ 3,795,940,675 93433
Federal $ 5,612,109,788 $ 5,731,692,576 93434
Health Care Total $ 9,363,958,747 $ 9,527,633,251 93435
GRF 600-526 Medicare Part D $ 155,349,266 $ 339,578,325 93436
GRF 600-528 Adoption Services 93437
State $ 33,698,298 $ 35,516,130 93438
Federal $ 40,331,807 $ 43,022,485 93439
Adoption Services Total $ 74,030,105 $ 78,538,615 93440
TOTAL GRF General Revenue Fund 93441
State $ 4,777,417,244 $ 5,006,307,564 93442
Federal $ 5,744,174,880 $ 5,868,735,476 93443
GRF Total $ 10,521,592,074 $ 10,875,043,040 93444

General Services Fund Group93445

4A8 600-658 Child Support Collections $ 26,680,794 $ 26,680,794 93446
4R4 600-665 BCII Services/Fees $ 36,974 $ 36,974 93447
5C9 600-671 Medicaid Program Support $ 73,015,021 $ 63,947,536 93448
5N1 600-677 County Technologies $ 1,000,000 $ 1,000,000 93449
613 600-645 Training Activities $ 135,000 $ 135,000 93450
TOTAL GSF General Services 93451
Fund Group $ 100,867,789 $ 91,800,304 93452

Federal Special Revenue Fund Group93453

3AW 600-675 Faith Based Initiatives $ 750,000 $ 750,000 93454
3A2 600-641 Emergency Food Distribution $ 2,600,000 $ 2,800,000 93455
3BB 600-635 Children's Hospitals - Federal $ 9,000,000 $ 9,000,000 93456
3D3 600-648 Children's Trust Fund Federal $ 2,040,524 $ 2,040,524 93457
3F0 600-623 Health Care Federal $ 616,011,784 $ 771,889,193 93458
3F0 600-650 Hospital Care Assurance Match $ 343,239,047 $ 343,239,047 93459
3G5 600-655 Interagency Reimbursement $ 1,364,802,369 $ 1,426,954,440 93460
3H7 600-617 Child Care Federal $ 208,000,000 $ 208,000,000 93461
3N0 600-628 IV-E Foster Care Maintenance $ 153,963,142 $ 153,963,142 93462
3S5 600-622 Child Support Projects $ 534,050 $ 534,050 93463
3V0 600-688 Workforce Investment Act $ 208,322,037 $ 208,097,948 93464
3V4 600-678 Federal Unemployment Programs $ 153,435,545 $ 157,202,750 93465
3V4 600-679 Unemployment Compensation Review Commission - Federal $ 3,829,430 $ 3,800,573 93466
3V6 600-689 TANF Block Grant $ 767,104,142 $ 792,483,200 93467
3W3 600-659 TANF/Title XX Transfer $ 8,000,000 $ 5,400,000 93468
327 600-606 Child Welfare $ 33,160,190 $ 33,090,786 93469
331 600-686 Federal Operating $ 43,966,134 $ 44,929,546 93470
384 600-610 Food Stamps and State Administration $ 188,238,706 $ 181,250,799 93471
385 600-614 Refugee Services $ 6,083,829 $ 6,542,439 93472
395 600-616 Special Activities/Child and Family Services $ 4,567,112 $ 4,564,877 93473
396 600-620 Social Services Block Grant $ 120,993,012 $ 121,004,222 93474
397 600-626 Child Support $ 287,468,576 $ 287,468,576 93475
398 600-627 Adoption Maintenance/ Administration $ 314,639,519 $ 314,639,519 93476
TOTAL FED Federal Special Revenue 93477
Fund Group $ 4,840,749,148 $ 5,079,645,631 93478

State Special Revenue Fund Group93479

198 600-647 Children's Trust Fund $ 6,788,522 $ 6,788,522 93480
4A9 600-607 Unemployment Compensation Administration Fund $ 10,811,527 $ 10,811,527 93481
4A9 600-694 Unemployment Compensation Review Commission $ 3,188,473 $ 3,188,473 93482
4E3 600-605 Nursing Home Assessments $ 4,759,914 $ 4,759,914 93483
4E7 600-604 Child and Family Services Collections $ 1,237,500 $ 300,000 93484
4F1 600-609 Foundation Grants/Child and Family Services $ 61,420 $ 61,420 93485
4J5 600-613 Nursing Facility Bed Assessments $ 34,613,984 $ 34,613,984 93486
4J5 600-618 Residential State Supplement Payments $ 15,700,000 $ 15,700,000 93487
4K1 600-621 ICF/MR Bed Assessments $ 20,074,255 $ 20,064,131 93488
4R3 600-687 Banking Fees $ 800,000 $ 800,000 93489
4Z1 600-625 HealthCare Compliance $ 10,000,000 $ 10,000,000 93490
5AA 600-673 Ohio's Best Rx Administration $ 5,000,000 $ 5,000,000 93491
5AX 600-697 Public Assistance Reconciliation $ 60,000,000 $ 0 93492
5BE 600-693 Child Support Operating $ 5,000,000 $ 5,000,000 93493
5BG 600-653 Managed Care Assessment $ 18,795,483 $ 99,410,121 93494
5CR 600-636 Children's Hospitals - State $ 6,000,000 $ 6,000,000 93495
5F2 600-667 Building Consolidation $ 250,000 $ 250,000 93496
5F3 600-668 Building Consolidation $ 1,000,000 $ 1,000,000 93497
5P5 600-692 Health Care Services $ 828,587,776 $ 538,301,761 93498
5Q9 600-619 Supplemental Inpatient Hospital Payments $ 56,125,998 $ 56,125,998 93499
5R2 600-608 Medicaid-Nursing Facilities $ 160,192,055 $ 176,632,090 93500
5S3 600-629 MR/DD Medicaid Administration and Oversight $ 1,620,960 $ 1,620,960 93501
5U3 600-654 Health Care Services Administration $ 10,115,870 $ 15,474,709 93502
5U6 600-663 Children and Family Support $ 4,929,717 $ 4,929,717 93503
5Z9 600-672 TANF Quality Control Reinvestments $ 647,409 $ 688,421 93504
651 600-649 Hospital Care Assurance Program Fund $ 231,893,404 $ 231,893,404 93505
TOTAL SSR State Special Revenue 93506
Fund Group $ 1,498,194,267 $ 1,249,415,152 93507

Agency Fund Group93508

192 600-646 Support Intercept - Federal $ 110,000,000 $ 110,000,000 93509
5B6 600-601 Food Stamp Intercept $ 2,000,000 $ 2,000,000 93510
583 600-642 Support Intercept - State $ 16,000,000 $ 16,000,000 93511
TOTAL AGY Agency Fund Group $ 128,000,000 $ 128,000,000 93512

Holding Account Redistribution Fund Group93513

R12 600-643 Refunds and Audit Settlements $ 3,600,000 $ 3,600,000 93514
R13 600-644 Forgery Collections $ 10,000 $ 10,000 93515
TOTAL 090 Holding Account Redistribution Fund Group $ 3,610,000 $ 3,610,000 93516
TOTAL ALL BUDGET FUND GROUPS $ 17,093,013,278 $ 17,427,514,127 93517


       Section 206.66.03.  APPROPRIATION ITEM RESTRUCTURING93519

       (A) If the Directors of Job and Family Services and Budget 93520
and Management agree, the Director of Budget and Management may, 93521
in fiscal years 2006 and 2007, reduce appropriations in 93522
appropriation items 600-321, Support Services, and 600-416, 93523
Computer Projects, by amounts equal to the federal share in each 93524
appropriation item. The total amount by which these appropriation 93525
items are reduced in accordance with this division is hereby 93526
appropriated to appropriation item 600-651, Federal General 93527
Operating (Fund 3AX).93528

       (B) The Department of Job and Family Services may submit to 93529
the Office of Budget and Management a plan to realign 93530
appropriation items 600-321, Support Services, and 600-416, 93531
Computer Projects. The plan may include a request for the Director 93532
of Budget and Management to transfer appropriations from 93533
appropriation items 600-321, Support Services, and 600-416, 93534
Computer Projects, to any other General Revenue Fund appropriation 93535
items in Section 312.03 of this act. If the plan is approved by 93536
the Office of Budget and Management, the Director of Budget and 93537
Management shall transfer appropriations as requested in the plan. 93538
Dollars spent pursuant to appropriations transferred in accordance 93539
with this division shall be for the same purposes for which the 93540
original appropriations were made.93541

       (C) In fiscal year 2007, the Department of Job and Family 93542
Services, with the approval of the Office of Budget and 93543
Management, shall utilize a method for determining the payments 93544
from applicable appropriation items into the Support Services 93545
State Operating Fund (Fund 230). The method shall contain 93546
characteristics of administrative ease and uniform application. 93547
Payments to the Support Services State Operating Fund (Fund 230) 93548
shall be made by intrastate transfer voucher. Amounts transferred 93549
in accordance with this division are hereby appropriated to 93550
appropriation item 600-661, Support Services State Operating (Fund 93551
230).93552

       Section 206.66.06. GOVERNOR'S OFFICE OF FAITH-BASED AND 93553
COMMUNITY INITIATIVES93554

       Of the foregoing appropriation item 600-321, Support 93555
Services, up to $312,500 per fiscal year may be used to support 93556
the activities of the Governor's Office of Faith-Based and 93557
Community Initiatives.93558

        MEDICAID ADMINISTRATIVE STUDY COUNCIL FUNDING93559

       Of the foregoing appropriation item 600-321, Support 93560
Services, $1,000,000 in fiscal year 2006 and $500,000 in fiscal 93561
year 2007 shall be provided to the Medicaid Administrative Study 93562
Council to carry out the duties of the Council as specified under 93563
the section of this act entitled "MEDICAID ADMINISTRATIVE STUDY 93564
COUNCIL."93565

       Section 206.66.09. TANF OHIO WORKS FIRST CASH ASSISTANCE 93566
PAYMENTS93567

       The Department of Job and Family Services shall use a portion 93568
of the moneys appropriated for the TANF program in appropriation 93569
items 600-410, TANF State; 600-658, Child Support Collections; and 93570
600-689, TANF Block Grant, to increase the cash assistance 93571
provided to recipients of benefits under the TANF Ohio Works First 93572
program by up to 10 per cent as compared to the cash assistance 93573
provided prior to July 1, 2005. The increased TANF cash assistance 93574
benefit shall be effective October 1, 2005.93575

       Section 206.66.10. MEDICAID DATA SYSTEM93576

       The Department of Job and Family Services shall fund the cost 93577
of the assessment specified in division (A) of section 5111.915 of 93578
the Revised Code and upon receipt of federal approval and assured 93579
ninety per cent reimbursement for the project fund the development 93580
or enhancement of a data collection or data warehouse system 93581
specified in division (B) of section 5111.915 of the Revised Code.93582

       Section 206.66.12.  OHIO'S BEST RX START-UP COSTS93583

       An amount equal to the remaining unencumbered balance in 93584
appropriation item 600-440, Ohio's Best Rx Start-Up Costs, from 93585
fiscal year 2005 is hereby appropriated for fiscal year 2006 into 93586
appropriation item 600-440, Ohio's Best Rx Start-Up Costs. An 93587
amount equal to the remaining unencumbered balance in 93588
appropriation item 600-440, Ohio's Best Rx Start-Up Costs, from 93589
fiscal year 2006 is hereby appropriated for fiscal year 2007 into 93590
appropriation item 600-440, Ohio's Best Rx Start-up Costs. The 93591
appropriation item 600-440, Ohio's Best Rx Start-Up Costs, shall 93592
be used by the Department of Job and Family Services to pay for 93593
the administrative and operational expenses for the Ohio's Best Rx 93594
Program in accordance with Chapter 5110. of the Revised Code, 93595
including costs associated with the duties assigned by the 93596
Department to the Ohio's Best Rx Program Administrator and for 93597
making payments to participating terminal distributors until 93598
sufficient cash exists to make payments from the accounts created 93599
in sections 5110.32 and 5110.33 of the Revised Code. Of 93600
appropriation item 600-440, Ohio's Best Rx Start-Up Costs, not 93601
more than $750,000 per fiscal year may be used by the department 93602
for administrative and operational costs, excluding outreach, that 93603
are not associated with the Ohio's Best Rx Program Administrator 93604
or the payments to participating terminal distributors.93605

       If the Director of Job and Family Services estimates that the 93606
appropriation is insufficient to fully cover start-up costs, the 93607
Director shall, in consultation with the Director of Budget and 93608
Management, submit a letter to the Governor, President of the 93609
Senate, Speaker of the House of Representatives, and the minority 93610
leaders of the Senate and House of Representatives. The letter 93611
shall declare the additional appropriation estimated to be needed 93612
and shall show a breakdown of how the additional appropriation 93613
will be used. The Director of Job and Family Services shall obtain 93614
the approval of the Controlling Board for any supplemental 93615
appropriation, if required. The amount approved by the Controlling 93616
Board is hereby appropriated. The use of state funds for program 93617
costs as provided in this section shall in no way obligate the 93618
state to fund further program costs, as the program is a discount 93619
program, not an entitlement program.93620

       OHIO'S BEST RX ADMINISTRATION93621

       The foregoing appropriation item 600-673, Ohio's Best Rx 93622
Administration, shall be used on an ongoing basis to cover 93623
expenses associated with the Ohio's Best Rx Program defined in 93624
section 5110.33 of the Revised Code. If receipts to the fund 93625
exceed the appropriated amount, the Director of Job and Family 93626
Services may request that the Director of Budget and Management 93627
increase the appropriation of this fund. Upon approval from the 93628
Director of Budget and Management, the additional amounts are 93629
hereby appropriated. 93630

       Section 206.66.21.  TANF TRANSFERS93631

       (A) Notwithstanding any provision of law to the contrary, 93632
through June 30, 2007, if the Director of Budget and Management 93633
determines that the estimated ending fund balance of the General 93634
Revenue Fund will be greater than the amounts assumed in this act 93635
for either fiscal year, the director may transfer the excess 93636
balance, up to a total of $96,000,000 to Fund 5AX, Public 93637
Assistance Reconciliation Fund, to pay the state's outstanding 93638
TANF liability to the federal government. Upon transfer, these 93639
amounts are hereby appropriated. This division does not apply to 93640
division (A) of Section 312.09, Budget Stabilization Fund 93641
Transfers, of this act.93642

       (B) In executing division (A) of this section and division 93643
(A) of Section 312.09, Budget Stabilization Fund Transfers, it is 93644
intended that these divisions be applied and construed so that 93645
both of the transfers authorized under these divisions may be made 93646
through June 30, 2007.93647

       Section 206.66.22.  FISCAL YEAR 2006 MEDICAID REIMBURSEMENT 93648
SYSTEM FOR NURSING FACILITIES93649

        (A) As used in this section:93650

        "2003 cost report" means a complete and adequate Medicaid 93651
cost report covering calendar year 2003 filed with the Department 93652
of Job and Family Services under section 5111.26 of the Revised 93653
Code.93654

       "Change of operator," "entering operator," and "exiting 93655
operator" have the same meanings as in section 5111.65 of the 93656
Revised Code.93657

       "Franchise permit fee" means the fee imposed by sections 93658
3721.50 to 3721.58 of the Revised Code.93659

        "Nursing facility" and "provider" have the same meaning as in 93660
section 5111.20 of the Revised Code.93661

        "Nursing facility services" means nursing facility services 93662
covered by the Medicaid program that a nursing facility provides 93663
to a resident of the nursing facility who is a Medicaid recipient 93664
eligible for Medicaid-covered nursing facility services.93665

       "Reviewable activity" has the same meaning as in section 93666
3702.51 of the Revised Code.93667

        (B) Except as otherwise provided in this section, the 93668
provider of a nursing facility that has a valid Medicaid provider 93669
agreement on June 30, 2005, and a valid Medicaid provider 93670
agreement for fiscal year 2006 shall be paid, for nursing facility 93671
services the nursing facility provides during fiscal year 2006, 93672
the sum of the following:93673

       (1) The rate the provider is paid for nursing facility 93674
services the nursing facility provides on June 30, 2005;93675

       (2) Unless the nursing facility is exempt from paying the 93676
franchise permit fee, one dollar and ninety-five cents.93677

       (C) If a nursing facility undergoes a change of operator on 93678
July 1, 2005, the entering operator shall be paid, for nursing 93679
facility services the nursing facility provides during fiscal year 93680
2006, the rate paid to the exiting operator for nursing facility 93681
services that the nursing facility provided on June 30, 2005, 93682
plus, if the entering operator pays the franchise permit fee, one 93683
dollar and ninety-five cents. If a nursing facility undergoes a 93684
change of operator during the period beginning July 2, 2005, and 93685
ending June 30, 2006, the entering operator shall be paid, for 93686
nursing facility services the nursing facility provides during the 93687
period beginning on the effective date of the change of operator 93688
and ending June 30, 2006, the rate paid to the exiting operator 93689
for nursing facility services that the nursing facility provided 93690
on the day immediately before the effective date of the change of 93691
operator.93692

        (D) If, during fiscal year 2006, a nursing facility obtains 93693
certification as a nursing facility from the Director of Health 93694
and begins participation in the Medicaid program, the provider of 93695
the nursing facility shall be paid, for nursing facility services 93696
the nursing facility provides during the period beginning on the 93697
date the nursing facility begins participation in the Medicaid 93698
program and ending June 30, 2006, a rate that is the median of all 93699
rates paid to providers of nursing facilities on July 1, 2005.93700

        (E) If, during fiscal year 2007, one or more Medicaid 93701
certified beds are added to a nursing facility with a valid 93702
Medicaid provider agreement for fiscal year 2006, the provider of 93703
the nursing facility shall be paid a rate for the new beds that is 93704
the same as the nursing facility's rate for the Medicaid certified 93705
beds that are in the nursing facility on the day before the new 93706
beds are added.93707

       (F) If the United States Centers for Medicare and Medicaid 93708
Services requires that the franchise permit fee be reduced or 93709
eliminated, the Department of Job and Family Services shall reduce 93710
the amount it pays providers of nursing facilities under this 93711
section as necessary to reflect the loss to the state of the 93712
revenue and federal financial participation generated from the 93713
franchise permit fee.93714

       (G)(1) A nursing facility's rate established under this 93715
section shall not be subject to any adjustments except as follows:93716

       (a) An adjustment resulting from an audit of the nursing 93717
facility's 2003 cost report may be applied to a rate established 93718
under this section for the nursing facility not later than three 93719
years after the first day of the fiscal year for which the rate is 93720
established.93721

       (b) Subject to division (G)(2) of this section, the nursing 93722
facility's rate established under this section may be adjusted 93723
pursuant to a process established in rules adopted under section 93724
5111.02 of the Revised Code to reflect a change in the nursing 93725
facility's capital costs due to any of the following:93726

       (i) A change of provider agreement that goes into effect 93727
before July 1, 2005, and for which a rate adjustment is not 93728
implemented before June 30, 2005;93729

       (ii) A reviewable activity for which a certificate of need 93730
application is filed with the Director of Health before July 1, 93731
2005, costs are incurred before June 30, 2005, and a rate 93732
adjustment is not implemented before June 30, 2005;93733

       (iii) An activity that the Director of Health, before July 1, 93734
2005, rules is not a reviewable activity and for which costs are 93735
incurred before June 30, 2005, and a rate adjustment is not 93736
implemented before June 30, 2005.93737

       (2) A nursing facility's rate established under this section 93738
may be adjusted pursuant to division (G)(1)(b)(ii) or (iii) of 93739
this section only if, after all other Medicaid obligations have 93740
been met, there are appropriations in appropriation item 600-525, 93741
Health Care/Medicaid, that would otherwise lapse to the General 93742
Revenue Fund. The Department of Job and Family Services may make 93743
adjustments pursuant to division (G)(1)(b)(ii) and (iii) of this 93744
section to the extent possible using the remaining appropriations 93745
that would otherwise lapse.93746

       (H) The Department of Job and Family Services shall follow 93747
this section in determining the rate to be paid to the provider of 93748
a nursing facility under the Medicaid program for nursing facility 93749
services provided during fiscal year 2006 notwithstanding anything 93750
to the contrary in sections 5111.20 to 5111.33 of the Revised 93751
Code.93752

       Section 206.66.23. FISCAL YEAR 2007 MEDICAID REIMBURSEMENT 93753
SYSTEM FOR NURSING FACILITIES93754

       (A) As used in this section:93755

       "Franchise permit fee" means the fee imposed by sections 93756
3721.50 to 3721.58 of the Revised Code.93757

       "Nursing facility" and "provider" have the same meanings as 93758
in section 5111.20 of the Revised Code.93759

       "Nursing facility services" means nursing facility services 93760
covered by the Medicaid program that a nursing facility provides 93761
to a resident of the nursing facility who is a Medicaid recipient 93762
eligible for Medicaid-covered nursing facility services.93763

       (B) Except as provided in division (C) of this section, the 93764
provider of a nursing facility that has a valid Medicaid provider 93765
agreement on June 30, 2006, and a valid Medicaid provider 93766
agreement for fiscal year 2007 shall be paid, for nursing facility 93767
services the nursing facility provides during fiscal year 2007, 93768
the rate determined for the nursing facility under sections 93769
5111.20 to 5111.33 of the Revised Code.93770

       (C) If the rate determined for a nursing facility under 93771
sections 5111.20 to 5111.33 of the Revised Code for nursing 93772
facility services provided during fiscal year 2007 is more than 93773
one hundred two per cent of the rate the provider is paid for 93774
nursing facility services the nursing facility provides on June 93775
30, 2006, the Department of Job and Family Services shall reduce 93776
the nursing facility's fiscal year 2007 rate so that the rate is 93777
no more than one hundred two per cent of the nursing facility's 93778
rate for June 30, 2006. If the rate determined for a nursing 93779
facility under sections 5111.20 to 5111.33 of the Revised Code for 93780
nursing facility services provided during fiscal year 2007 is less 93781
than ninety-eight per cent of the rate the provider was paid for 93782
nursing facility services the nursing facility provides on June 93783
30, 2006, the Department shall increase the nursing facility's 93784
fiscal year 2007 rate so that the rate is no less than 93785
ninety-eight per cent of the nursing facility's rate for June 30, 93786
2006. 93787

       (D) If the United States Centers for Medicare and Medicaid 93788
Services requires that the franchise permit fee be reduced or 93789
eliminated, the Department of Job and Family Services shall reduce 93790
the amount it pays providers of nursing facilities under this 93791
section as necessary to reflect the loss to the state of the 93792
revenue and federal financial participation generated from the 93793
franchise permit fee.93794

       (E) The Department of Job and Family Services shall follow 93795
this section in determining the rate to be paid to the provider of 93796
a nursing facility that has a valid Medicaid provider agreement on 93797
June 30, 2006, and a valid Medicaid provider agreement for fiscal 93798
year 2007 notwithstanding anything to the contrary in sections 93799
5111.20 to 5111.33 of the Revised Code.93800

       Section 206.66.24. TRANSITION METHODOLOGY FOR MEDICAID 93801
REIMBURSEMENT FOR NURSING FACILITIES93802

       (A) There is hereby created the Nursing Facility Rate 93803
Transition Advisory Council. The Council shall consist of all of 93804
the following:93805

        (1) The Director of Job and Family Services or the Director's 93806
designee;93807

        (2) The Deputy Director of the Office of Ohio Health Plans of 93808
the Department of Job and Family Services or the Deputy Director's 93809
designee;93810

        (3) The Director of Health or the Director's designee;93811

        (4) One representative of Medicaid recipients residing in 93812
nursing facilities appointed by the Governor;93813

        (5) One representative of each of the following organizations 93814
appointed by the organization:93815

        (a) The Ohio Academy of Nursing Homes;93816

        (b) The Association of Ohio Philanthropic Homes and Housing 93817
for the Aging;93818

        (c) The Ohio Health Care Association.93819

        (B) Members of the Nursing Facility Rate Transition Advisory 93820
Council shall receive no compensation for serving on the Council.93821

        (C) The Director of Job and Family Services shall serve as 93822
chair of the Nursing Facility Rate Transition Advisory Council.93823

        (D) The Nursing Facility Rate Transition Advisory Council 93824
shall develop recommendations on the methodology to be used to 93825
phase in the nursing facility reimbursement formula established 93826
under sections 5111.20 to 5111.33 of the Revised Code. The Council 93827
shall prepare quarterly progress reports and, not later than nine 93828
months after the effective date of this section, a final report. 93829
The Council shall submit copies of the report to the Governor, the 93830
President and Minority Leader of the Senate, and the Speaker and 93831
Minority Leader of the House of Representatives. The Council shall 93832
cease to exist on the issuance of the final report.93833

       Section 206.66.25. FISCAL YEAR 2006 AND FISCAL YEAR 2007 93834
MEDICAID REIMBURSEMENT SYSTEM FOR ICFs/MR93835

        (A) As used in this section:93836

        "2003 cost report" means a complete and adequate Medicaid 93837
cost report covering calendar year 2003 filed with the Department 93838
of Job and Family Services under section 5111.26 of the Revised 93839
Code.93840

       "Change of operator," "entering operator," and "exiting 93841
operator" have the same meanings as in section 5111.65 of the 93842
Revised Code.93843

        "Intermediate care facility for the mentally retarded" and 93844
"provider" home have the same meanings as in section 5111.20 of 93845
the Revised Code.93846

        "ICF/MR services" means intermediate care facility for the 93847
mentally retarded services covered by the Medicaid program that an 93848
intermediate care facility for the mentally retarded provides to a 93849
resident of the facility who is a Medicaid recipient eligible for 93850
Medicaid-covered intermediate care facility for the mentally 93851
retarded services.93852

        (B) Except as otherwise provided in this section, the 93853
provider of an intermediate care facility for the mentally 93854
retarded that has a valid Medicaid provider agreement on June 30, 93855
2005, and a valid Medicaid provider agreement for fiscal years 93856
2006 and 2007 shall be paid, for ICF/MR services the facility 93857
provides during fiscal years 2006 and 2007, the rate the provider 93858
is paid for ICF/MR services the facility provides on June 30, 93859
2005.93860

        (C) If an intermediate care facility for the mentally 93861
retarded undergoes a change of operator during fiscal year 2006 or 93862
2007, the entering operator shall be paid, for ICF/MR services the 93863
facility provides during the period beginning on the effective 93864
date of the change of provider and ending June 30, 2007, the rate 93865
paid to the exiting operator for ICF/MR services that the facility 93866
provided on the day immediately before the effective date of the 93867
change of operator.93868

        (D) If, during fiscal year 2006 or 2007, an intermediate care 93869
facility for the mentally retarded obtains certification as an 93870
intermediate care facility for the mentally retarded from the 93871
Director of Health and begins participation in the Medicaid 93872
program, the provider of the facility shall be paid, for ICF/MR 93873
services the facility provides during the period beginning on the 93874
date the facility begins participation in the Medicaid program and 93875
ending June 30, 2007, a rate that is the median of all rates paid 93876
to intermediate care facilities for the mentally retarded on July 93877
1, 2005.93878

        (E) If, during fiscal year 2006 or 2007, one or more Medicaid 93879
certified beds are added to an intermediate care facility for the 93880
mentally retarded with a valid Medicaid provider agreement for the 93881
time that the beds are added, the provider of the facility shall 93882
be paid a rate for the new beds that is the same as the facility's 93883
rate for the Medicaid certified beds that are in the facility on 93884
the day before the new beds are added.93885

        (F) An adjustment necessitated by an audit of an intermediate 93886
care facility for the mentally retarded's 2003 cost report may be 93887
applied to a rate established under this section for the facility.93888

       (G) The Department of Job and Family Services shall follow 93889
this section in determining the rate to be paid to the provider of 93890
an intermediate care facility for the mentally retarded under the 93891
Medicaid program for ICF/MR services provided during fiscal years 93892
2006 and 2007 notwithstanding anything to the contrary in sections 93893
5111.20 to 5111.33 of the Revised Code.93894

       Section 206.66.27. FISCAL YEARS 2006 AND 2007 INCREASED 93895
PAYMENT TO ICFs/MR93896

       (A) As used in this section:93897

        "Active treatment" has the same meaning as in section 5126.12 93898
of the Revised Code.93899

        "Community alternative funding system" means the former 93900
system under which habilitation center services were reimbursed 93901
under the Medicaid program pursuant to former section 5111.041 of 93902
the Revised Code and former rules adopted under that section.93903

        (B) The Director of Job and Family Services may increase the 93904
rate paid to intermediate care facilities for the mentally 93905
retarded for fiscal years 2006 and 2007 under the section of this 93906
act entitled "FISCAL YEAR 2006 AND FISCAL YEAR 2007 MEDICAID 93907
REIMBURSEMENT SYSTEM FOR ICFs/MR" by an amount specified in rules 93908
adopted under section 5111.02 of the Revised Code to reimburse the 93909
facilities for active treatment day programming because of the 93910
termination of the community alternative funding system.93911

       *       Section 206.66.36. ASSISTED LIVING MEDICAID WAIVER PROGRAM93912

       (A) As used in this section, "Assisted Living Program" has 93913
the same meaning as in section 5111.89 of the Revised Code.93914

       (B) After the Department of Job and Family Services enters 93915
into a contract with the Department of Aging under section 5111.91 93916
of the Revised Code for the Department of Aging to administer the 93917
Assisted Living Program, the Director of Job and Family Services 93918
shall quarterly certify to the Director of Budget and Management 93919
the estimated costs of the Assisted Living Program for the 93920
upcoming quarter. The estimate shall include the state and federal 93921
share of the costs. On receipt of the certified estimated costs 93922
for an upcoming quarter, the Director of Budget and Management 93923
shall do all of the following:93924

       (1) Transfer the state share of the amount of the estimated 93925
costs from GRF appropriation item 600-525, Health Care/Medicaid, 93926
to GRF appropriation item 490-422, Assisted Living;93927

       (2) Transfer the federal share of the amount of the estimated 93928
costs from GRF appropriation item 600-525, Health Care/Medicaid, 93929
to Fund 3C4, appropriation item 490-622, Assisted Living - 93930
Federal;93931

       (3) Increase the appropriation in JFS Fund 3G5, appropriation 93932
item 600-655, Interagency Reimbursement, by the federal share of 93933
the amount of the estimated costs.93934

       (C) The funds that the Director of Budget and Management 93935
transfers and increases under this section are hereby 93936
appropriated.93937

       *       Section 206.66.37. Section 206.66.36 of this act takes 93938
effect October 1, 2005.93939

       Section 206.66.38. MEDICAID PILOT PROGRAM93940

       Each quarter, the Department of Aging shall certify to the 93941
Director of Budget and Management the estimated costs of the 93942
Medicaid pilot program created under section 5111.971 of the 93943
Revised Code.93944

       On a quarterly basis, on receipt of the certified costs, the 93945
Director of Budget and Management shall do all of the following:93946

       (1) Transfer the state share of the amount of the estimated 93947
costs from the GRF appropriation item 600-525, Health 93948
Care/Medicaid, to GRF appropriation item 490-403, PASSPORT, for 93949
the remainder of the biennium;93950

       (2) Increase the appropriation in Department of Aging Fund 93951
3C4, appropriation item 490-607, PASSPORT, by the federal share of 93952
the amount of the estimated costs;93953

       (3) Reduce the federal share of GRF appropriation item 93954
600-525, Health Care/Medicaid, by the federal share of the amount 93955
of the estimated costs;93956

       (4) Increase the appropriation in Department of Job and 93957
Family Services Fund 3G5, appropriation item 600-655, Interagency 93958
Reimbursement, by the federal share of the amount of the estimated 93959
costs.93960

       The funds that the Director of Budget and Management 93961
transfers and increases under this section are hereby 93962
appropriated.93963

       Section 206.66.39. MEDICAID ELIGIBILITY REDUCTIONS93964

       The Director of Job and Family Services shall, not later than 93965
ninety days after the effective date of this section, submit to 93966
the United States Secretary of Health and Human Services an 93967
amendment to the state Medicaid plan to reduce to ninety per cent 93968
of the federal poverty guidelines the amount specified in division 93969
(A)(2) of section 5111.019 of the Revised Code as it existed 93970
immediately prior to the amendment made by this act. The reduction 93971
shall be implemented not earlier than ninety days after the 93972
effective date of this section and not later than the effective 93973
date of federal approval.93974

       Section 206.66.41.  MEDICAID MANAGED CARE COVERAGE OF 93975
RESPIRATORY ANTI-VIRAL DRUGS FOR FY 2006 AND 200793976

       For fiscal years 2006 and 2007, the Department of Job and 93977
Family Services shall require a health insuring corporation with 93978
which the Department contracts under section 5111.17 of the 93979
Revised Code to provide coverage of prescription drugs that 93980
protect against respiratory syncytial virus for Medicaid 93981
recipients enrolled in the health insuring corporation who, as an 93982
infant born premature or other pediatric patient, are at risk for 93983
respiratory syncytial virus. In covering the drugs for these 93984
Medicaid recipients, the health insuring corporation shall do both 93985
of the following:93986

       (A) Cover the drugs in at least the same amount, duration, 93987
and scope as the Medicaid program's coverage of the drugs for 93988
Medicaid recipients who receive state Medicaid plan services under 93989
the fee-for-service system;93990

       (B) Establish access requirements for the drugs that are less 93991
or no more restrictive than the access requirements for the drugs 93992
under the fee-for-service system.93993

       Section 206.66.42. DISABILITY MEDICAL ASSISTANCE PROGRAM93994

        (A) The foregoing appropriation item 600-513, Disability 93995
Medical Assistance, shall be used by the Department of Job and 93996
Family Services to operate a Disability Medical Assistance Program 93997
before or after October 1, 2005, to replace the Disability Medical 93998
Assistance program established in Chapter 5115. of the Revised 93999
Code. The Department of Job and Family Services shall terminate 94000
the Disability Medical Assistance Program effective October 1, 94001
2005. All rules, standards, guidelines, or orders adopted or 94002
issued by the Director of Job and Family Services to govern the 94003
Disability Medical Assistance Program before its termination shall 94004
remain in effect on and after October 1, 2005, for the following 94005
purposes:94006

        (1) To establish the legal obligations of the Department for 94007
claims arising from the Program;94008

       (2) To determine an individual's previous eligibility for the 94009
Program;94010

        (3) To determine the validity of a claim for services under 94011
the Program;94012

        (4) To recover erroneous payments, as defined in section 94013
5115.23 of the Revised Code, made before October 1, 2005.94014

        (B) The Department may use funds appropriated to it to 94015
satisfy Program claims or contingent claims existing before 94016
October 1, 2005. The Department shall not pay claims for services 94017
rendered on or after October 1, 2005.94018

       (C) The Department shall pay a claim for services rendered by 94019
a medical provider to a Disability Medical Assistance Program 94020
recipient before October 1, 2005, only if the claim is received by 94021
the Department not later than April 1, 2006.94022

       (D) A judge or other person designated to make a decision in 94023
a state hearing, administrative appeal, or judicial proceeding 94024
initiated under section 5101.35 of the Revised Code may adjudicate 94025
an appeal of a determination made by the Department under the 94026
Program before October 1, 2005. No person may adjudicate an appeal 94027
of a determination made by the Department under the Program on or 94028
after October 1, 2005.94029

        (E) Notwithstanding the termination of the Disability Medical 94030
Assistance Program, the following remain effective on and after 94031
October 1, 2005:94032

        (1) As described in section 5101.58 of the Revised Code, the 94033
Department's and a county's right of recovery against the 94034
liability of a third party for the cost of medical services and 94035
care;94036

        (2) As described in section 5101.59 of the Revised Code, the 94037
assignment of a Program recipient's right to medical support made 94038
by court or administrative order or payments from a third party.94039

        (F) The Department may take reasonable steps to inform 94040
Program recipients about the termination of the Program. A county 94041
department of job and family services shall take action with 94042
respect to these activities when requested by the Department.94043

        (G) An action taken under division (F) of this section shall 94044
not be the basis for requiring the Department to extend the 94045
Program or to approve or extend a person's eligibility for the 94046
Program on or after October 1, 2005.94047

       (H) The Director may adopt rules in accordance with section 94048
111.15 of the Revised Code to implement this section.94049

       Section 206.66.43.  DISABILITY MEDICAL ASSISTANCE COUNCIL94050

       (A) There is hereby established the Disability Medical 94051
Assistance Council, composed of the following individuals:94052

       (1) The Director of Job and Family Services or the Director's 94053
designee;94054

       (2) The Director of the Rehabilitative Services Commission or 94055
the Director's designee;94056

       (3) The Director of Rehabilitation and Correction or the 94057
Director's designee;94058

       (4) The Director of Mental Health or the Director's designee;94059

       (5) The Director of Alcohol and Drug Addiction Services or 94060
the Director's designee;94061

       (6) Two individuals appointed by the Director of Job and 94062
Family Services to represent health care and behavioral health 94063
care trade associations, one of whom shall represent county 94064
behavioral health boards;94065

       (7) Three members of the Medicaid Care Advisory Committee in 94066
the Department of Job and Family Services;94067

       (8) Three individuals appointed by the Director of Job and 94068
Family Services to represent low-income disabled individuals;94069

       (9) An individual appointed by the Director of Job and Family 94070
Services to represent county boards of job and family services;94071

       (10) An individual appointed by the Director of Job and 94072
Family Services to represent hospitals;94073

       (11) Two individuals appointed by the Director of Job and 94074
Family Services to represent the pharmaceutical industry.94075

       (B) By not later than September 1, 2005, the Council shall 94076
submit to the Governor, the Speaker of the House of 94077
Representatives, and the President of the Senate a written report 94078
to propose a program to replace the Disability Medical Assistance 94079
Program when that program terminates. The report shall include 94080
recommendations for the program regarding all of the following:94081

       (1) The type, scope, and duration of services to be covered;94082

       (2) Delivery system options;94083

       (3) Eligibility criteria;94084

       (4) Measures that can be taken to assist individuals who 94085
received benefits from the Disability Medical Assistance Program 94086
but do not meet the eligibility criteria of the new program to 94087
transition to other government or private medical assistance 94088
programs;94089

       (5) A disability advocacy program to assist applicants for 94090
and recipients of assistance under the new program in the same 94091
manner as the disability advocacy program established under 94092
section 5115.20 of the Revised Code assisted Disability Medical 94093
Assistance Program applicants and recipients prior to October 1, 94094
2005;94095

       (6) Any other recommendations the Council considers necessary 94096
and appropriate.94097

       (C) The program proposed by the Council in the report 94098
described in division (B) of this section shall be implemented by 94099
not later than October 1, 2005.94100

       Section 206.66.44.  MEDICAID COVERAGE OF DENTAL SERVICES94101

        For fiscal years 2006 and 2007, the Medicaid program shall do 94102
the following:94103

        (A) For Medicaid recipients under twenty-one years of age, 94104
the Medicaid program shall cover dental services. This section 94105
does not limit the ability of the Department of Job and Family 94106
Services to adopt, amend, or rescind rules applicable to dental 94107
services, including rules that limit or reduce covered services, 94108
reduce reimbursement levels, or subject covered services to 94109
co-payments.94110

        (B) For Medicaid recipients twenty-one years of age or older, 94111
the Medicaid program shall cover dental services in an amount, 94112
duration, and scope specified in rules that the Director of Job 94113
and Family Services shall adopt under section 5111.02 of the 94114
Revised Code but shall be less in amount, duration, and scope than 94115
the Medicaid program covered those services immediately before the 94116
effective date of this amendment.94117

       Section 206.66.45. MEDICAID COVERAGE OF VISION SERVICES94118

        For fiscal years 2006 and 2007, the Medicaid program shall 94119
cover vision services. This section does not limit the ability of 94120
the Department of Job and Family Services to adopt, amend, or 94121
rescind rules applicable to vision services, including rules that 94122
limit or reduce covered services, reduce reimbursement levels, or 94123
subject covered services to copayments.94124

       Section 206.66.46.  DISABILITY DETERMINATIONS94125

       (A) A study shall be conducted by the state and local 94126
government entities actively engaged in providing programs or 94127
services for which disability is an eligibility requirement, 94128
including the Department of Job and Family Services, county 94129
departments of job and family services, and Rehabilitation 94130
Services Commission. The study shall consider all of the 94131
following:94132

        (1) The feasibility of an interagency agreement among the 94133
state and local government entities actively engaged in providing 94134
programs or services for which disability is an eligibility 94135
requirement, including the Department of Job and Family Services, 94136
county departments of job and family services, and the 94137
Rehabilitation Services Commission whereby one of these state or 94138
local government entities would perform disability determinations 94139
for all programs and services provided by a state or local 94140
government entity in which disability is an eligibility 94141
requirement;94142

        (2) Which of the state and local government entities engaged 94143
in providing programs or services for which disability is an 94144
eligibility requirement should perform disability determinations 94145
under an interagency agreement described in division (A)(1) of 94146
this section.94147

       (3) Potential cost-savings and other advantages, as well as 94148
any potential disadvantages, that might result from the 94149
interagency agreement;94150

        (4) Processes by which the interagency agreement could be 94151
implemented, including an estimate of the approximate time needed 94152
to implement it.94153

        (B) Not later than six months after the effective date of 94154
this section, a written report of the results of the study shall 94155
be prepared and submitted to the Speaker of the House of 94156
Representatives, President of the Senate, the Minority Leader of 94157
the House of Representatives, and the Minority Leader of the 94158
Senate.94159

       Section 206.66.47. HEALTH CARE/MEDICAID94160

       The foregoing appropriation item 600-525, Health 94161
Care/Medicaid, shall not be limited by section 131.33 of the 94162
Revised Code.94163

       The Director of Job and Family Services may request that the 94164
Director of Budget and Management increase the appropriation in 94165
appropriation item 600-525, Health Care/Medicaid, by up to 94166
$107,272,266 state share in fiscal year 2007. If the Director of 94167
Budget and Management approves the request, the Director of Budget 94168
and Management shall also increase the appropriation in 94169
appropriation item 600-525, Health Care/Medicaid, by the 94170
appropriate corresponding federal share. The increased amounts are 94171
hereby appropriated. The Department of Job and Family Services 94172
shall use this appropriation to pay for Medicaid services.94173

       The Director of Budget and Management may consider the 94174
appropriation authorized in this section for the purposes of the 94175
calculations required in section 131.44 of the Revised Code.94176

       Section 206.66.48. STATE MEDICAID PLAN AMENDMENT REGARDING 94177
ESTATE RECOVERY94178

       The Director of Job and Family Services shall submit a state 94179
Medicaid plan amendment to the United States Secretary of Health 94180
and Human Services as necessary for the implementation of the 94181
amendments by this act to sections 5111.11 and 5111.111 of the 94182
Revised Code.94183

       Section 206.66.49. SINGLE AUDIT OF MEDICAID DURING FY 2006 94184
AND 200794185

        The Auditor of State may, during fiscal years 2006 and 2007, 94186
conduct a single performance audit of the Medicaid program, as 94187
defined in section 5111.01 of the Revised Code, to determine ways 94188
of reducing or eliminating fraud, waste, and abuse in the program, 94189
making the program more efficient, and enhancing the program's 94190
results. An audit conducted under this section shall be conducted 94191
in accordance with generally accepted government auditing 94192
standards. Expenses incurred by the Auditor of State to conduct 94193
the performance audit shall be reimbursed by the Department of Job 94194
and Family Services.94195

       Section 206.66.51. MEDICAID PAYMENT FOR GRADUATE MEDICAL 94196
EDUCATION COSTS94197

        The Director of Job and Family Service may submit to the 94198
United States Secretary of Health and Human Services an amendment 94199
to the state Medicaid plan to implement section 5111.191 of the 94200
Revised Code. The Department may implement that section upon the 94201
Secretary's approval of the amendment.94202

        MEDICARE PART D94203

       The foregoing appropriation item 600-526, Medicare Part D, 94204
may be used by the Department of Job and Family Services for the 94205
implementation and operation of the Medicare Part D requirements 94206
contained in the "Medicare Prescription Drug, Improvement, and 94207
Modernization Act of 2003," Pub. L. No. 108-173, as amended. Upon 94208
the request of the Department of Job and Family Services, the 94209
Director of Budget and Management may increase the state share of 94210
appropriations in either appropriation item 600-525, Health 94211
Care/Medicaid, or appropriation item 600-526, Medicare Part D, 94212
with a corresponding decrease in the state share of the other 94213
appropriation item to allow the Department of Job and Family 94214
Services to implement and operate the new Medicare Part D 94215
requirements. If the state share of appropriation item 600-525, 94216
Health Care/Medicaid, is adjusted, the Director of Budget and 94217
Management shall adjust the federal share accordingly.94218

       Section 206.66.52. LEGISLATIVE INTENT TO CREATE NEW MEDICAID 94219
DEPARTMENT94220

       It is the intent of the General Assembly that a new cabinet 94221
level department to administer the Medicaid program is to be 94222
established by July 1, 2007.94223

       Section 206.66.53.  MEDICAID ADMINISTRATIVE STUDY COUNCIL94224

       (A) There is hereby created the Medicaid Administrative Study 94225
Council composed of the following:94226

       (1) One member of the Ohio Commission to Reform Medicaid, 94227
appointed by the Governor;94228

       (2) One member of the staff of the Governor's office, 94229
appointed by the Governor;94230

       (3) One individual with expertise in health-care finance, 94231
appointed by the Governor;94232

       (4) One individual with expertise in health-care management, 94233
appointed by the Governor;94234

       (5) One individual with expertise in health-care information 94235
technology, appointed by the Governor;94236

       (6) One individual with expertise in health insurance, 94237
appointed by the Governor;94238

       (7) One individual with expertise in health care quality 94239
assurance, appointed by the Governor;94240

       (8) Two individuals with expertise in organizational change 94241
representing the business community, one appointed by the 94242
President of the Senate and one appointed by the Speaker of the 94243
House of Representatives;94244

       (9) The Director of Budget and Management or the Director's 94245
designee;94246

       (10) The State Chief Information Officer or the Officer's 94247
designee;94248

       (11) The Administrator of Workers' Compensation or the 94249
Administrator's designee;94250

       (12) The following non-voting members:94251

        (a) The Director of Job and Family Services or the Director's 94252
designee;94253

        (b) The Director of Aging or the Director's designee;94254

        (c) The Director of Drug and Alcohol Addiction Services or 94255
the Director's designee;94256

        (d) The Director of Health or the Director's designee;94257

        (e) The Director of Mental Health or the Director's designee;94258

        (f) The Director of Mental Retardation and Developmental 94259
Disabilities or the Director's designee.94260

       (B) The Governor shall appoint a member of the Council to 94261
serve as the chairperson of the Council.94262

       (C) The Council shall study the administration of the 94263
Medicaid program. In conducting the study, the Council shall 94264
operate under the assumption that the General Assembly will enact 94265
by July 1, 2007, a law establishing a new cabinet level department 94266
to administer the program. The Council shall examine and consider 94267
all of the following as part of the study:94268

       (1) Structuring the program's administration in a manner that 94269
optimizes the program's fiscal and operational objectives;94270

       (2) Centralizing financing and information technology 94271
functions to coordinate the new department's activities with other 94272
state agencies, if any, that assist in the program's 94273
administration;94274

       (3) Creating a unified budget for Medicaid-funded long-term 94275
care services;94276

       (4) The fiscal and operating impact that a new administrative 94277
structure for the program would have on the Department of Job and 94278
Family Services and other state agencies that currently assist in 94279
the program's administration;94280

       (5) The role of government entities that administer the 94281
Medicaid program on the local level and the fiscal and operating 94282
impact that a new administrative structure for the program would 94283
have on those entities;94284

       (6) The recommendations of the Ohio Commission to Reform 94285
Medicaid.94286

       (D) Beginning ninety days after the effective date of this 94287
section, the Council shall submit written, quarterly reports on 94288
the Council's progress to the Governor, the President of the 94289
Senate, and the Speaker of the House of Representatives. The 94290
Council shall submit a final written report of its study to the 94291
Governor, the President of the Senate, and the Speaker of the 94292
House of Representatives not later than December 31, 2006. The 94293
final report shall include all of the following:94294

       (1) Recommendations regarding the scope and structure of the 94295
new department;94296

       (2) A business plan that directs the transition of the 94297
Medicaid program's administration from the Department of Job and 94298
Family Services and the other state agencies that assist the 94299
Department to the new department and addresses the transition's 94300
fiscal and operational impact;94301

       (3) Identification of the resources needed to implement the 94302
business plan.94303

       (E) The Council may hire staff, enter into contracts, and 94304
take other actions the Council deems necessary to fulfill its 94305
duties.94306

       Section 206.66.57. ODJFS FUNDS94307

       AGENCY FUND GROUP94308

       The Agency Fund Group and Holding Account Redistribution Fund 94309
Group shall be used to hold revenues until the appropriate fund is 94310
determined or until the revenues are directed to the appropriate94311
governmental agency other than the Department of Job and Family 94312
Services. If it is determined that additional appropriation 94313
authority is necessary, such amounts are hereby appropriated.94314

       Section 206.66.60. EMPLOYER SURCHARGE94315

       The surcharge and the interest on the surcharge amounts due94316
for calendar years 1988, 1989, and 1990 as required by Am. Sub.94317
H.B. 171 of the 117th General Assembly, Am. Sub. H.B. 111 of the94318
118th General Assembly, and section 4141.251 of the Revised Code94319
as it existed prior to its repeal by Sub. H.B. 478 of the 122nd94320
General Assembly, again shall be assessed and collected by, 94321
accounted for, and made available to the Department of Job and94322
Family Services in the same manner as set forth in section 94323
4141.251 of the Revised Code as it existed prior to its repeal by 94324
Sub. H.B. 478 of the 122nd General Assembly, notwithstanding the 94325
repeal of the surcharge for calendar years after 1990, pursuant to 94326
Sub. H.B. 478 of the 122nd General Assembly, except that amounts 94327
received by the Director on or after July 1, 2001, shall be 94328
deposited into the Unemployment Compensation Special 94329
Administrative Fund (Fund 4A9) established pursuant to section 94330
4141.11 of the Revised Code.94331

       Section 206.66.63.  TRANSFER OF FUNDS TO THE DEPARTMENT OF 94332
AGING94333

       The Department of Job and Family Services shall transfer,94334
through intrastate transfer vouchers, cash from Fund 4J5, Home and 94335
Community-Based Services for the Aged, to Fund 4J4, PASSPORT, in 94336
the Department of Aging. The sum of the transfers shall be 94337
$33,268,052 in fiscal year 2006 and $33,263,984 in fiscal year 94338
2007. The transfer may occur on a quarterly basis or on a schedule 94339
developed and agreed to by both departments.94340

       Section 206.66.64.  INDIVIDUALS MOVED FROM NURSING FACILITIES 94341
TO PASSPORT94342

       (A) As used in this section:94343

       (1) "Area agency on aging" has the same meaning as in section 94344
173.14 of the Revised Code. 94345

       (2) "Long-Term Care Consultation Program" means the program 94346
the Department of Aging is required to develop under section 94347
173.42 of the Revised Code.94348

       (3) "Long-Term Care Consultation Program administrator" or 94349
"administrator" means the Department of Aging or, if the 94350
Department contracts with an area agency on aging or other entity 94351
to administer the Long-Term Care Consultation Program for a 94352
particular area, that agency or entity.94353

       (4) "Nursing facility" has the same meaning as in section 94354
5111.20 of the Revised Code.94355

       (5) "PASSPORT program" means the program created under 94356
section 173.40 of the Revised Code.94357

       (B) Each month during fiscal years 2006 and 2007, each area 94358
agency on aging shall determine whether individuals who reside in 94359
the area that the area agency on aging serves and are on a waiting 94360
list for the PASSPORT program have been admitted to a nursing 94361
facility. If an area agency on aging determines that such an 94362
individual has been admitted to a nursing facility, the agency 94363
shall notify the Long-Term Care Consultation Program administrator 94364
serving the area in which the individual resides about the 94365
determination. The administrator shall determine whether the 94366
PASSPORT program is appropriate for the individual and whether the 94367
individual would rather participate in the PASSPORT program than 94368
continue residing in the nursing facility. If the administrator 94369
determines that the PASSPORT program is appropriate for the 94370
individual and the individual would rather participate in the 94371
PASSPORT program than continue residing in the nursing facility, 94372
the administrator shall so notify the Department of Aging. On 94373
receipt of the notice from the administrator, the Department of 94374
Aging shall approve the enrollment of the individual in the 94375
PASSPORT program regardless of whether other individuals who are 94376
not in a nursing facility are ahead of the individual on the 94377
PASSPORT program's waiting list. Each quarter, the Department of 94378
Aging shall certify to the Director of Budget and Management the 94379
estimated increase in costs of the PASSPORT program for the 94380
individuals enrolled in the PASSPORT program pursuant to this 94381
section.94382

       (C) On a quarterly basis, on receipt of the certified costs, 94383
the Director of Budget and Management shall do all of the 94384
following:94385

       (1) Transfer the state share of the amount of the estimated 94386
costs from GRF appropriation item 600-525, Health Care/Medicaid, 94387
to GRF appropriation item 490-403, PASSPORT, for the remainder of 94388
the biennium;94389

       (2) Increase the appropriation in Ohio Department of Aging 94390
Fund 3C4, appropriation item 490-607, PASSPORT, by the federal 94391
share of the amount of the estimated costs;94392

       (3) Increase the appropriation in JFS Fund 3G5, appropriation 94393
item 600-655, Interagency Reimbursement, by the federal share of 94394
the amount of the estimated costs.94395

       The funds that the Director of Budget and Management 94396
transfers and increases under this division are hereby 94397
appropriated.94398

       (D) The individuals placed in the PASSPORT program pursuant 94399
to this section shall be in addition to the individuals placed in 94400
the PASSPORT program during fiscal years 2006 and 2007 based on 94401
the amount of money that is in GRF appropriation item 490-403, 94402
PASSPORT; Fund 4J4, appropriation item 490-610, 94403
PASSPORT/Residential State Supplement; Fund 4U9, appropriation 94404
item 490-602, PASSPORT Fund; and Fund 3C4, appropriation item 94405
490-607, PASSPORT, before any transfers to GRF appropriation item 94406
490-403, PASSPORT, and Fund 3C4, appropriation item 490-607, 94407
PASSPORT, are made under this section.94408

       (E) The Director of Job and Family Services shall do both of 94409
the following:94410

       (1) Submit to the United States Secretary of Health and Human 94411
Services an amendment to the Medicaid waiver authorizing the 94412
PASSPORT program as necessary for the implementation of this 94413
section;94414

       (2) By not later than December 31, 2006, submit to the 94415
General Assembly a report regarding the number of individuals 94416
placed in the PASSPORT program pursuant to this section and the 94417
costs incurred and savings achieved as a result of the individuals 94418
being placed in the PASSPORT program.94419

       Section 206.66.66. OHIO ACCESS SUCCESS PROJECT94420

       Notwithstanding any limitations in sections 3721.51 and94421
3721.56 of the Revised Code, in each fiscal year, cash from Fund 94422
4J5, Home and Community-Based Services for the Aged, in excess of 94423
the amounts needed for the transfers may be used by the Department 94424
of Job and Family Services for the following purposes: (A) up to 94425
$1.0 million in each fiscal year to fund the state share of audits 94426
of Medicaid cost reports filed with the Department of Job and 94427
Family Services by nursing facilities and intermediate care 94428
facilities for the mentally retarded; and (B) up to $350,000 in 94429
fiscal year 2006 and up to $350,000 in fiscal year 2007 to provide 94430
one-time transitional benefits under the Ohio Access Success 94431
Project that the Director of Job and Family Services may establish 94432
under section 5111.88 of the Revised Code.94433

       Section 206.66.69. OHIO ASSOCIATION OF SECOND HARVEST FOOD 94434
BANKS94435

       As used in this section, "federal poverty guidelines" has the 94436
same meaning as in section 5101.46 of the Revised Code.94437

       Notwithstanding section 5101.46 of the Revised Code, and 94438
prior to making any allocation to county departments of job and 94439
family services, the Department of Job and Family Services shall 94440
provide $5,500,000 in each fiscal year from the foregoing 94441
appropriation item 600-620, Social Services Block Grant, for use 94442
in funding a grant agreement with the Ohio Association of Second 94443
Harvest Food Banks. The Department shall enter into a grant 94444
agreement with the Ohio Association of Second Harvest Food Banks 94445
to reimburse it for costs incurred in the purchase of food 94446
products and the distribution of those food products to agencies 94447
participating in the emergency food distribution program. 94448
Notwithstanding section 5101.46 of the Revised Code, the grant may 94449
permit the Ohio Association of Second Harvest Food Banks to use up 94450
to 5 per cent of the annual funding for administrative costs. The 94451
Department may advance funds to the grantee under section 5101.10 94452
of the Revised Code.94453

       Prior to entering into the grant agreement, the Ohio 94454
Association of Second Harvest Food Banks shall submit to the 94455
Department for approval a plan for the distribution of the food 94456
products to local food distribution agencies. If the plan meets 94457
the requirements and conditions established by the Department, the 94458
plan shall be incorporated into the grant agreement. The grant 94459
agreement shall also require the Ohio Association of Second 94460
Harvest Food Banks to ensure that local agencies will limit 94461
participation of individuals and families who receive any of the 94462
food products purchased with these funds to those who have an 94463
income at or below 200 per cent of the federal poverty guidelines. 94464
The Department and the Ohio Association of Second Harvest Food 94465
Banks shall agree on reporting requirements to be incorporated 94466
into the grant agreement, including a statement of expected 94467
performance outcomes from the Ohio Association of Second Harvest 94468
Food Banks and a requirement for their evaluation of their success 94469
in achieving those outcomes.94470

       Section 206.66.72. TRANSFER OF FUNDS TO THE DEPARTMENT OF 94471
MENTAL RETARDATION AND DEVELOPMENTAL DISABILITIES94472

       The Department of Job and Family Services shall transfer,94473
through intrastate transfer vouchers, cash from Fund 4K1, ICF/MR94474
Bed Assessments, to Fund 4K8, Home and Community-Based Services, 94475
in the Department of Mental Retardation and Developmental94476
Disabilities. The amount transferred shall equal $12,000,000 in 94477
fiscal year 2006 and $12,000,000 in fiscal year 2007. The transfer 94478
may occur on a quarterly basis or on a schedule developed and 94479
agreed to by both departments.94480

       Section 206.66.75. FUNDING FOR HABILITATIVE SERVICES94481

       Notwithstanding any limitations contained in sections 5112.3194482
and 5112.37 of the Revised Code, in each fiscal year, cash from 94483
Fund 4K1, ICF/MR Bed Assessments, in excess of the amounts needed 94484
for transfers to Fund 4K8, Home and Community-Based Services, in 94485
the Department of Mental Retardation and Developmental 94486
Disabilities, may be used by the Department of Job and Family 94487
Services to cover costs of care provided to participants in a94488
waiver with an ICF/MR level of care requirement administered by 94489
the Department of Job and Family Services.94490

       Section 206.66.78.  COMMUNITY ALTERNATIVE FUNDING SYSTEM94491

       (A) As used in this section, "habilitation center services" 94492
has the same meaning as in former section 5111.041 of the Revised 94493
Code as that section existed on June 30, 2005.94494

        (B) The Director of Job and Family Services may adopt rules 94495
under section 111.15 of the Revised Code as necessary to terminate 94496
the community alternative funding system on July 1, 2005.94497

        (C) The Department of Job and Family Services may inform 94498
individuals who received habilitation center services under the 94499
community alternative funding system on June 30, 2005, and such 94500
individuals' representatives about alternative services that may 94501
be available for the individuals. The Department may require 94502
county departments of job and family services to provide such 94503
information to the individuals and their representatives.94504

        (D) Habilitation center services provided before July 1, 94505
2005, are subject to the laws, rules, standards, guidelines, and 94506
orders regarding habilitation center services that were in effect 94507
at the time the services were provided. This includes such laws, 94508
rules, standards, guidelines, and orders regarding the 94509
responsibility for the nonfederal share of the services, the fee 94510
assessed under division (D) of section 5123.041 of the Revised 94511
Code as that section existed on the day the services were 94512
provided, cost reports, audits, and the recovery of erroneous 94513
payments.94514

        (E) The Department of Job and Family Services may use funds 94515
appropriated to the Department for the purpose of habilitation 94516
center services to satisfy a claim or contingent claim for 94517
habilitation center services provided before July 1, 2005, if the 94518
Department receives the claim or contingent claim before July 1, 94519
2006. The Department has no liability to satisfy either of the 94520
following:94521

        (1) A claim for habilitation center services provided before 94522
July 1, 2005, if the Department receives the claim on or after 94523
July 1, 2006.94524

        (2) A claim for habilitation center services provided on or 94525
after July 1, 2005.94526

        (F) To the extent authorized by section 5101.35 of the 94527
Revised Code, an individual may initiate or continue a state 94528
hearing, administrative appeal, or appeal to a court of common 94529
pleas regarding a decision or order concerning habilitation center 94530
services that were available before July 1, 2005. A decision 94531
resulting from a state hearing, administrative appeal, or appeal 94532
to a court of common pleas may not extend an individual's 94533
eligibility for habilitation center services beyond June 30, 2005. 94534
No individual may utilize section 5101.35 of the Revised Code to 94535
contest the July 1, 2005, termination of the community alternative 94536
funding system.94537

        (G) Neither of the following are abrogated by the termination 94538
of the community alternative funding system:94539

        (1) The right of recovery given to the Department of Job and 94540
Family Services or a county department of job and family services 94541
under section 5101.58 of the Revised Code for habilitation center 94542
services provided before July 1, 2005.94543

        (2) The right to medical support or payments from a third 94544
party that is assigned to the Department under section 5101.59 of 94545
the Revised Code for habilitation center services provided before 94546
July 1, 2005.94547

       Section 206.66.79. CHILDREN'S HOSPITALS94548

       The foregoing appropriation items 600-635, Children's 94549
Hospitals – Federal, and 600-636, Children's Hospitals – State, 94550
shall be used by the Department of Job and Family Services to 94551
create a program under which it makes supplemental Medicaid 94552
payments to children's hospitals for inpatient services based on 94553
federal upper payment limits for children's hospitals. The 94554
Department shall submit to the United States Secretary of Health 94555
and Human Services an amendment to the State Medicaid Plan for the 94556
purpose of requesting federal approval to implement the program. 94557
On receipt of federal approval, the Department shall implement the 94558
program. Under the program, the Department shall pay children's 94559
hospitals the federally allowable supplemental payment for 94560
hospital discharges qualifying for the program and occurring in 94561
fiscal year 2006 and fiscal year 2007, except that the amount used 94562
for the program shall not exceed $6 million (state share) in each 94563
fiscal year plus the corresponding federal match, if available, 94564
for the qualifying discharges in fiscal year 2006 and fiscal year 94565
2007.94566

       Section 206.66.84. CHILDREN'S TRUST FUND94567

       Notwithstanding sections 3109.13 to 3109.18 of the Revised 94568
Code, in fiscal year 2006, the Director of Budget and Management 94569
shall transfer $1,500,000 cash from the Children's Trust Fund 94570
(Fund 198 in the Department of Job and Family Services) to the 94571
Partnerships for Success Fund (Fund 5BH in the Department of Youth 94572
Services). On or before January 1, 2007, the Director of Budget 94573
and Management shall transfer to the Children's Trust Fund (Fund 94574
198) any amount of cash that remains unspent in the Partnerships 94575
for Success Fund (Fund 5BH).94576

       Section 206.66.85. HOSPITAL CARE ASSURANCE MATCH FUND94577

       Appropriation item 600-650, Hospital Care Assurance Match,94578
shall be used by the Department of Job and Family Services in94579
accordance with division (B) of section 5112.18 of the Revised94580
Code.94581

       Section 206.66.87. HEALTH CARE SERVICES ADMINISTRATION94582

       The foregoing appropriation item 600-654, Health Care94583
Services Administration, shall be used by the Department of Job94584
and Family Services for costs associated with the administration94585
of the Medicaid program.94586

       Section 206.66.90. HEALTH CARE SERVICES ADMINISTRATION FUND94587

       Of the amount received by the Department of Job and Family94588
Services during fiscal year 2006 and fiscal year 2007 from the 94589
first installment of assessments paid under section 5112.06 of the 94590
Revised Code and intergovernmental transfers made under section 94591
5112.07 of the Revised Code, the Director of Job and Family 94592
Services shall deposit $350,000 in each fiscal year into the state 94593
treasury to the credit of the Health Care Services Administration 94594
Fund (Fund 5U3).94595

       Section 206.66.91. The Department of Job and Family Services 94596
shall retain $1,500,000 of the federal incentives that are 94597
described in division (A) of section 3125.19 of the Revised Code 94598
and authorized by 42 U.S.C. 658a that the Department of Job and 94599
Family Services receives from the United States Department of 94600
Human Services to reimburse the Department of Job and Family 94601
Services for the state share of payments made by the Department of 94602
Job and Family Services for mandatory contracts utilized by county 94603
child support enforcement agencies in the program of child support 94604
enforcement authorized by sections 3125.03 and 3125.11 of the 94605
Revised Code. This revenue shall be deposited in the Child Support 94606
Operating Fund (Fund 5BE in the Department of Job and Family 94607
Services).94608

       Section 206.66.92. Based on the actual usage of optional 94609
contracts by each county, the Department of Job and Family 94610
Services shall retain a portion of the federal incentives 94611
described in division (A) of section 3125.19 of the Revised Code 94612
and authorized by 42 U.S.C. 658a that the Department of Job and 94613
Family Services receives from the United States Department of 94614
Human Services that are paid to the county child support 94615
enforcement agencies each month based on the Department's estimate 94616
of what the county child support enforcement agency will earn in 94617
federal incentives. The portion retained by the Department of Job 94618
and Family Services shall reimburse the Department for the state 94619
share of the contractual obligation for the monthly utilization of 94620
optional contracts by each county child support enforcement agency 94621
in the program of child support enforcement authorized by sections 94622
3125.03 and 3125.11 of the Revised Code. This revenue shall be 94623
deposited in the Child Support Operating Fund (Fund 5BE in the 94624
Department of Job and Family Services).94625

       Section 206.66.93. CHILD SUPPORT COLLECTIONS/TANF MOE94626

       The foregoing appropriation item 600-658, Child Support94627
Collections, shall be used by the Department of Job and Family94628
Services to meet the TANF maintenance of effort requirements of94629
Pub. L. No. 104-193. Once the state is assured that it will meet 94630
the maintenance of effort requirement, the Department of Job and 94631
Family Services may use funds from appropriation item 600-658, 94632
Child Support Collections, to support public assistance94633
activities.94634

       Section 206.66.96. MEDICAID PROGRAM SUPPORT FUND - STATE94635

       The foregoing appropriation item 600-671, Medicaid Program94636
Support, shall be used by the Department of Job and Family94637
Services to pay for Medicaid services and contracts. The 94638
Department may also deposit to Fund 5C9 revenues received from 94639
other state agencies for Medicaid services under the terms of 94640
interagency agreements between the Department and other state 94641
agencies, and all funds the Department recovers because the 94642
benefits a person received under the disability medical assistance 94643
program established in section 5115.10 of the Revised Code were 94644
determined to be covered by the medical assistance program 94645
established under Chapter 5111. of the Revised Code.94646

       Section 206.66.99. TRANSFERS OF IMD/DSH CASH TO THE 94647
DEPARTMENT OF MENTAL HEALTH94648

       The Department of Job and Family Services shall transfer,94649
through intrastate transfer voucher, cash from Fund 5C9, Medicaid94650
Program Support, to the Department of Mental Health's Fund 4X5,94651
OhioCare, in accordance with an interagency agreement that94652
delegates authority from the Department of Job and Family Services94653
to the Department of Mental Health to administer specified94654
Medicaid services.94655

       Section 206.67.03.  FEDERAL UNEMPLOYMENT PROGRAMS94656

       All unexpended funds remaining at the end of fiscal year 2005 94657
that were appropriated and made available to the state under 94658
section 903(d) of the Social Security Act, as amended, in the 94659
foregoing appropriation item 600-678, Federal Unemployment 94660
Programs (Fund 3V4), are hereby appropriated to the Department of 94661
Job and Family Services. Upon the request of the Director of Job 94662
and Family Services, the Director of Budget and Management shall 94663
increase the appropriation for fiscal year 2006 by the amount 94664
remaining unspent from the fiscal year 2005 appropriation and 94665
shall increase the appropriation for fiscal year 2007 by the 94666
amount remaining unspent from the fiscal year 2006 appropriation. 94667
The appropriation shall be used under the direction of the 94668
Department of Job and Family Services to pay for administrative 94669
activities for the Unemployment Insurance Program, employment 94670
services, and other allowable expenditures under section 903(d) of 94671
the Social Security Act, as amended.94672

       The amounts obligated pursuant to this section shall not 94673
exceed at any time the amount by which the aggregate of the 94674
amounts transferred to the account of the state under section 94675
903(d) of the Social Security Act, as amended, exceeds the 94676
aggregate of the amounts obligated for administration and paid out 94677
for benefits and required by law to be charged against the amounts 94678
transferred to the account of the state.94679

       Section 206.67.06. WORKFORCE DEVELOPMENT GRANT AGREEMENT94680

       The Department of Job and Family Services may use 94681
appropriations from appropriation item 600-688, Workforce 94682
Investment Act, to provide financial assistance for workforce 94683
development activities included in a grant agreement entered into 94684
by the department in accordance with section 5101.20 of the 94685
Revised Code.94686

       Section 206.67.07.  ACCOUNTABILITY AND CREDIBILITY TOGETHER94687

        Of the foregoing appropriation item 600-689, TANF Block 94688
Grant, up to $1 million in each fiscal year shall be reimbursed to 94689
Accountability and Credibility Together (ACT) to continue its 94690
welfare diversion program for TANF eligible individuals pursuant 94691
to section 5101.801 of the Revised Code.94692

       Section 206.67.08. KINSHIP PERMANENCY INCENTIVE PROGRAM94693

       Of the foregoing appropriation item 600-689, TANF Block Grant 94694
(Fund 3V6), $10 million per fiscal year shall be used to support 94695
the activities of the Kinship Permanency Incentive Program created 94696
under section 5101.802 of the Revised Code.94697

       The Department of Job and Family Services shall prepare 94698
reports concerning both of the following:94699

        (A) Stability and permanency outcomes for children for whom 94700
incentive payments are made under the Kinship Permanency Incentive 94701
Program;94702

        (B) The total amount of payments made under the Program, 94703
patterns of expenditures made per child under the Program, and 94704
cost savings realized through the Program from placement with 94705
kinship caregivers rather than other out-of-home placements.94706

        The Department shall submit a report to the Governor, the 94707
Speaker and Minority Leader of the House of Representatives, and 94708
the President and Minority Leader of the Senate not later than 94709
December 31, 2008, and December 31, 2010.94710

       Section 206.67.09.  OHIO ALLIANCE OF BOYS AND GIRLS CLUBS94711

        Of the foregoing appropriation item 600-689, TANF Block Grant 94712
(Fund 3V6), the Department of Job and Family Services shall use up 94713
to $600,000 in each fiscal year to support expenditures of the 94714
Ohio Alliance of Boys and Girls Clubs pursuant to section 5101.801 94715
of the Revised Code to provide after-school programs that protect 94716
at-risk children and enable youth to become responsible adults. 94717
The Ohio Alliance of Boys and Girls Clubs shall provide 94718
nutritional meals, snacks, and educational, youth development, and 94719
career development services to TANF eligible children 94720
participating in programs and activities operated by eligible Boys 94721
and Girls Clubs.94722

        The Department shall provide an annual grant of $600,000 in 94723
each fiscal year to the Ohio Alliance of Boys and Girls Clubs. The 94724
Department of Job and Family Services and the Ohio Alliance of 94725
Boys and Girls Clubs shall agree on reporting requirements to be 94726
incorporated into the grant agreement.94727

       CHILD WELFARE TRAINING INITIATIVE94728

        In each fiscal year, the Department of Job and Family 94729
Services shall grant $50,000 from appropriation item 600-528, 94730
Adoption Services, and $150,000 from appropriation item 600-606, 94731
Child Welfare (Fund 327), to the National Center for Adoption Law 94732
and Policy to fund a multi-disciplinary child welfare training 94733
initiative. The Department of Job and Family Services shall 94734
coordinate with the National Center for Adoption Law and Policy to 94735
determine the focus of the training provided each year.94736

       TALBERT HOUSE94737

       Of the foregoing appropriation item 600-689, TANF Block Grant 94738
(Fund 3V6), up to $75,000 in each fiscal year shall be reimbursed 94739
to the Talbert House pursuant to section 5101.801 of the Revised 94740
Code to provide TANF eligible non-medical substance or alcohol 94741
abuse services.94742

       CHILDREN'S HUNGER ALLIANCE94743

       Of the foregoing appropriation item 600-689, TANF Block Grant 94744
(Fund 3V6), up to $500,000 in each fiscal year shall be reimbursed 94745
to the Children's Hunger Alliance pursuant to section 5101.801 of 94746
the Revised Code for Child Nutrition Program outreach efforts.94747

       PROJECT GRAD94748

        Of the foregoing appropriation item 600-689, TANF Block Grant 94749
(Fund 3V6), up to $185,000 in each fiscal year shall be reimbursed 94750
for TANF eligible activities pursuant to section 5101.801 of the 94751
Revised Code to reduce the dropout rate by addressing the academic 94752
and social problems of inner-city students through Project GRAD.94753

       *       Section 206.67.10. EMPLOYMENT RETENTION INCENTIVE PROGRAM94754

       (A) As used in this section: 94755

       (1) "Assistance group" has the same meaning as in section 94756
5107.02 of the Revised Code.94757

       (2) "Ohio Works First" means the program established under 94758
Chapter 5107. of the Revised Code.94759

       (B) Subject to section 5101.801 of the Revised Code, in 94760
fiscal year 2007 the Department of Job and Family Services may 94761
establish and administer the Employment Retention Incentive 94762
Program under which the Department provides cash payments to 94763
eligible assistance groups. The Department shall use the foregoing 94764
appropriation item 600-689, TANF Block Grant, to fund the program.94765

       To be eligible for the Employment Retention Incentive 94766
Program, an assistance group must meet all of the following 94767
requirements:94768

       (1) The assistance group must apply using an application that 94769
contains all of the information that rules specified in this 94770
section require in accordance with the application process 94771
established in those rules;94772

       (2) The assistance group must have ceased to participate in 94773
Ohio Works First in accordance with rules specified in this 94774
section;94775

       (3) The assistance group must include a member who was 94776
employed during the last month the assistance group participated 94777
in Ohio Works First in accordance with rules specified in this 94778
section;94779

       (4) That member of the assistance group must remain employed 94780
in accordance with rules specified in this section;94781

       (5) The assistance group must meet all other eligibility 94782
requirements established in rules specified in this section.94783

       (C) If the Department establishes the Employment Retention 94784
Incentive Program, the Department shall provide cash payments 94785
under the program in a manner that enables the cash payments to be 94786
excluded from the definition of "assistance" in 45 C.F.R. 94787
260.31(a) and instead be benefits that 45 C.F.R. 260.31(b) 94788
excludes from the definition of assistance. Each county Department 94789
of Job and Family Services shall make eligibility determinations 94790
for the program and perform other administrative duties for the 94791
program in accordance with rules specified in this section. 94792

       (D) If the Department establishes the Employment Retention 94793
Incentive Program, the Department shall adopt rules under division 94794
(C) of section 5101.801 of the Revised Code to establish all of 94795
the following for the program:94796

       (1) The information that an application for the program must 94797
contain;94798

       (2) The application process for the program, including the 94799
process to verify eligibility for the program;94800

       (3) The manner in which an assistance group must have ceased 94801
to participate in Ohio Works First for the assistance group to 94802
qualify for the program;94803

       (4) The manner in which an assistance group member must have 94804
been employed during the last month the assistance group 94805
participated in Ohio Works First for the assistance group to 94806
qualify for the program;94807

       (5) The manner in which an assistance group member must 94808
remain employed for the assistance group to qualify for the 94809
program;94810

       (6) Other eligibility requirements for the program;94811

       (7) The amounts that eligible assistance groups are to 94812
receive as cash payments under the program;94813

       (8) The frequency and duration that eligible assistance 94814
groups are to receive cash payments under the program;94815

       (9) Requirements governing county departments' administrative 94816
duties regarding the program.94817

       (E) In adopting rules under division (D)(2) of this section 94818
establishing the application process for the Employment Retention 94819
Incentive Program, the director may not require that application 94820
be submitted to county departments of job and family services.94821

       *       Section 206.67.11. Section 206.67.10 of this act takes 94822
effect July 1, 2006.94823

       Section 206.67.12. EARLY LEARNING INITIATIVE94824

       (A) As used in this section:94825

       (1) "Title IV-A services" means benefits and services that 94826
are allowable under Title IV-A of the "Social Security Act," as 94827
specified in 42 U.S.C. 604(a), except that they shall not be 94828
benefits and services included in the term "assistance" as defined 94829
in 45 C.F.R. 260.31(a) and shall be benefits and services that are 94830
excluded from the definition of the term "assistance" under 45 94831
C.F.R. 260.31(b).94832

       (2) "Title IV-A funds" means funds provided under the 94833
temporary assistance for needy families block grant established by 94834
Title IV-A of the "Social Security Act," 110 Stat. 2113 (1996), 42 94835
U.S.C. 601, as amended.94836

       (3) "Child care" has the same meaning as in section 5104.01 94837
of the Revised Code.94838

       (4) "Eligible child" means a child who is at least three 94839
years of age but not of compulsory school age or enrolled in 94840
kindergarten, is eligible for Title IV-A services, and whose 94841
family income does not exceed one hundred eighty-five per cent of 94842
the federal poverty line at application. If the family income of a 94843
child receiving early learning services under this section exceeds 94844
one hundred ninety-five per cent of the federal poverty line, the 94845
child ceases to be eligible for an early learning program.94846

       (5) "Early learning program" means a program for eligible 94847
children that is funded with Title IV-A funds and provides Title 94848
IV-A services that are both of the following:94849

        (a) Early learning services, as defined by the Department of 94850
Education pursuant to division (C)(1) of Section 206.09.54 of this 94851
act;94852

       (b) Child care.94853

       (6) "Early learning provider" means an entity that is 94854
receiving Title IV-A funds to operate an early learning program.94855

       (7) "Early learning agency" means an early learning provider 94856
or an entity that has entered into an agreement with an early 94857
learning provider requiring the early learning provider to operate 94858
an early learning program on behalf of the entity.94859

       (8) "Federal poverty line" has the same meaning as in section 94860
5104.01 of the Revised Code.94861

       (9) "Of compulsory school age" has the same meaning as in 94862
section 3321.01 of the Revised Code.94863

       (B) The Department of Job and Family Services and the 94864
Department of Education shall administer the Early Learning 94865
Initiative, established under Section 206.09.54 of this act, in 94866
accordance with sections 5101.80 and 5101.801 of the Revised Code. 94867
The Initiative shall provide early learning programs and child 94868
care to eligible children. Early learning programs may provide 94869
early learning services on a full-day basis, a part-day basis, or 94870
both a full-day and part-day basis.94871

       (C) The Department of Job and Family Services shall do all of 94872
the following:94873

       (1) Enter into a contract with each early learning agency in 94874
accordance with Section 206.09.54 of this act;94875

       (2) Reimburse early learning agencies for Title IV-A services 94876
provided to eligible children according to the terms of the 94877
contract and the rules adopted under division (C)(3) of this 94878
section;94879

       (3) In consultation with the Department of Education, adopt 94880
rules in accordance with Chapter 119. of the Revised Code to 94881
implement the Early Learning Initiative. The rules shall include 94882
all of the following:94883

       (a) Provisions regarding the establishment of co-payments for 94884
families of eligible children whose family income is more than one 94885
hundred sixty-five per cent of the federal poverty line but equal 94886
to or less than one hundred ninety-five per cent of the federal 94887
poverty line;94888

       (b) An exemption from co-payment requirements for families 94889
whose family income is equal to or less than one hundred 94890
sixty-five per cent of the federal poverty line;94891

       (c) A definition of "weekly attendance rate" for the purpose 94892
of reimbursing early learning agencies;94893

       (d) Provisions that establish the following reimbursement 94894
rates for early learning agencies based on the attendance of 94895
eligible children:94896

       (i) If an eligible child attends twenty-five or more hours in 94897
a given week, the weekly reimbursement shall not be less than two 94898
hundred dollars and seventy-three cents;94899

       (ii) If an eligible child attends fifteen or more hours but 94900
less than twenty-five hours in a given week, the weekly 94901
reimbursement rate shall not be less than one hundred sixty 94902
dollars and fifty-eight cents;94903

       (iii) If an eligible child attends less than fifteen hours in 94904
a given week, the hourly reimbursement rate shall not be less than 94905
eight dollars and three cents.94906

       (4) If, on the effective date of this section and Section 94907
206.09.54 of this act, no early learning agencies have been 94908
approved for a given county, the Department of Job and Family 94909
Services, in consultation with the Department of Education, shall 94910
establish a deadline for the submission of applications to be an 94911
early learning agency that occurs after the effective date of this 94912
section.94913

       (5)(a) Subject to division (C)(6)(b) of this Section and in 94914
consultation with the Department of Education, establish a 94915
caretaker employment eligibility requirement for participation in 94916
the Early Learning Initiative that specifies the minimum number of 94917
hours that the caretaker of the eligible child must be employed 94918
and the time period over which the minimum number of hours is to 94919
be measured. These minimum hours may, but are not required to, 94920
overlap the period during the day or week in which the child 94921
participates in the early learning program. This caretaker 94922
employment eligibility requirement shall permit the child to be 94923
determined to be, and to remain, an eligible child for up to 94924
thirty days if the county department of job and family services 94925
determines that the caretaker is expected to begin engaging in an 94926
approved activity within that thirty-day period. The county 94927
department of job and family services shall inform both the early 94928
learning provider and the Department of Job and Family Services of 94929
this determination. The Department of Job and Family Services 94930
shall designate by rule the activities that constitute approved 94931
activities for purposes of this requirement.94932

       (b) The Department shall periodically review the requirement 94933
described in division (C)(6)(a) of this Section to ensure that it 94934
complies with federal law and regulations.94935

       (D) Each county department of job and family services shall 94936
determine eligibility for Title IV-A services for children seeking 94937
to enroll in an early learning program within fifteen days after 94938
receipt of a completed application and establish co-payment 94939
requirements in accordance with the rules adopted under division 94940
(C)(3) of this section.94941

       (E)(1) The Department of Job and Family Services shall ensure 94942
that all reimbursements paid to an early learning agency under 94943
this section are only for Title IV-A services provided to eligible 94944
children.94945

       (2) In calculating reimbursements, the Department shall 94946
reimburse the early learning agency for up to twenty-five days per 94947
year in which an eligible child is absent from the early learning 94948
program on a day the child is scheduled to attend the program.94949

       (F) The provision of early learning services in an early 94950
learning program shall not prohibit or otherwise prevent an 94951
individual from obtaining certificates for payment under division 94952
(C) of section 5104.32 of the Revised Code that the individual may 94953
use to purchase services from any provider qualified to provide 94954
publicly funded child care under section 5104.31 of the Revised 94955
Code.94956

       (G) Upon the transfer of appropriation from Department of 94957
Education appropriation line 200-663, Early Learning Initiative 94958
(Fund 5W2), to Department of Job and Family Services appropriation 94959
item 600-689, TANF Block Grant (Fund 3V6), up to $104,380,000 in 94960
fiscal year 2006 and up to $125,256,000 in fiscal year 2007 shall 94961
be used to reimburse early learning agencies under this section. 94962
The Department of Job and Family Services shall provide up to 94963
10,000 slots of services for eligible children in fiscal year 2006 94964
and up to 12,000 slots of services for eligible children in fiscal 94965
year 2007 through the Early Learning Initiative. In each fiscal 94966
year, the Department shall allocate at least seventeen slots of 94967
services to each county in the state.94968

       If, on or after the thirty-first day of December of each 94969
fiscal year, the Director of Budget and Management, in 94970
consultation with the Director of Job and Family Services and the 94971
Superintendent of Public Instruction, determines that there is a 94972
balance of funds in the Early Learning Initiative in either fiscal 94973
year 2006 or fiscal year 2007, the Director of Budget and 94974
Management may approve the use of the funds by the Department of 94975
Job and Family Services to provide publicly funded child care, as 94976
defined in section 5104.01 of the Revised Code.94977

       Of the foregoing appropriation item 600-689, TANF Block Grant 94978
(Fund 3V6), up to $800,000 in each fiscal year may be used by the 94979
Department of Job and Family Services for administration of the 94980
Early Learning Initiative. 94981

       The Director of Budget and Management, at the request of the 94982
Director of Job and Family Services, may transfer in each fiscal 94983
year up to $2,200,000 cash from the Temporary Assistance for Needy 94984
Families Federal Fund (Fund 3V6) to the Early Learning Initiative 94985
(Fund 5W2) for administration of the Early Learning Initiative by 94986
the Department of Education.94987

       (H) Any contract executed prior to July 1, 2005, between an 94988
early learning agency, the Department of Job and Family Services, 94989
and the Department of Education shall be deemed to be effective as 94990
of July 1, 2005, upon issuance of a state purchase order even if 94991
such purchase order is approved at some later date, unless the 94992
executed contract expressly provides for a start date after July 94993
1, 2005.94994

       Section 206.67.13. PUBLICLY FUNDED CHILD CARE94995

       (A) The Department of Job and Family Services shall increase, 94996
for fiscal years 2006 and 2007, the reimbursement ceilings for 94997
providers of publicly funded child care to sixty-five per cent of 94998
the market's usual and customary cost to the public based on the 94999
most recently conducted market rate survey required by 45 C.F.R. 95000
98.16.95001

       (B) The Department shall estimate the monthly average of 95002
children the Department expects to enroll in publicly funded child 95003
care from December 2005 through March 2006. The Department shall 95004
then determine the actual monthly average of children enrolled in 95005
publicly funded child care for that period. If the monthly average 95006
of children expected to enroll exceeds the monthly average of 95007
children actually enrolled by at least two thousand children, the 95008
Department may increase, for fiscal year 2007, the reimbursement 95009
ceilings for providers of publicly funded child care to not more 95010
than seventy per cent of the market's usual and customary cost to 95011
the public based on the most recently conducted market rate survey 95012
required by 45 C.F.R. 98.16.95013

       (C) The Department of Job and Family Services shall conduct a 95014
study of the market rates for the provision of child care to 95015
establish new rates for the funding of publicly funded child care. 95016
The Department shall complete this study and establish new rates 95017
for reimbursement not later than July 1, 2006.95018

       Each child care provider shall cooperate with the Department 95019
on this study.95020

       Section 206.67.15. PRESCRIPTION DRUG REBATE FUND95021

       The foregoing appropriation item 600-692, Health Care95022
Services, shall be used by the Department of Job and Family95023
Services in accordance with section 5111.081 of the Revised Code. 95024
Moneys recovered by the Department for either hospital settlements 95025
or pursuant to the Department's rights of recovery under section 95026
5101.58 of the Revised Code, that are not directed to the Health 95027
Care Services Administration Fund (Fund 5U3) under section 5111.94 95028
of the Revised Code, shall also be deposited into Fund 5P5.95029

       Section 206.67.18. COMMUNITY BEHAVIORAL HEALTH MEDICAID 95030
BUSINESS PLAN95031

       (A) As used in this section, "State of Ohio Community 95032
Behavioral Health Medicaid Business Plan" means the plan of that 95033
title finalized in August 2004, by the Departments of Job and 95034
Family Services, Mental Health, and Alcohol and Drug Addiction 95035
Services and the Ohio Association of Behavioral Health 95036
Authorities.95037

       (B) As soon as practicable, the Departments of Job and Family 95038
Services, Mental Health, and Alcohol and Drug Addiction Services, 95039
in conjunction with behavioral health providers and boards of 95040
alcohol, drug addiction, and mental health services, shall specify 95041
procedures that are consistent with federal law for implementation 95042
of the State of Ohio Community Behavioral Health Medicaid Business 95043
Plan. If it is determined that any portion of the Plan does not 95044
comply with federal law, the Departments, in conjunction with the 95045
providers and boards, shall specify procedures to work toward 95046
implementation of that portion of the Plan.95047

       A report on the progress being made in implementing the Plan 95048
shall be submitted to the Speaker of the House of Representatives, 95049
the President of the Senate, the Minority Leader of the House of 95050
Representatives, and the Minority Leader of the Senate not later 95051
than the first day of March and first day of October of each year 95052
until all components of the Plan have been fully implemented.95053

       Section 206.67.21.  TRANSFER OF TOBACCO MASTER SETTLEMENT 95054
AGREEMENT FUNDS TO SUPPORT THE AGED, BLIND, AND DISABLED MANAGED 95055
CARE PROGRAM95056

        (A) Not later than June 30, 2006, the Director of Job and 95057
Family Services, in conjunction with the Office of Budget and 95058
Management, shall determine the amount necessary to implement the 95059
Aged, Blind, and Disabled Managed Care Program established under 95060
section 5111.16 of the Revised Code.95061

        (B) Notwithstanding section 183.02 of the Revised Code, on 95062
July 1, 2006, or as soon as possible thereafter, the Director of 95063
Budget and Management shall transfer cash equal to the state share 95064
of the amount determined pursuant to division (A) of this section 95065
from the Tobacco Master Settlement Agreement Fund (Fund 087) to 95066
the ABD Managed Care Program – State Fund (Fund 5BZ in the 95067
Department of Job and Family Services), which is hereby created. 95068
Of the tobacco revenue that is credited to the Tobacco Master 95069
Settlement Agreement Fund (Fund 087) in fiscal year 2006, the 95070
share that is determined pursuant to section 183.02 of the Revised 95071
Code to be the amount transferred by the Director of Budget and 95072
Management from the Tobacco Master Settlement Agreement Fund (Fund 95073
087) to the Tobacco Use Prevention and Cessation Trust Fund (Fund 95074
H87) shall be reduced by the amount that is transferred from the 95075
Tobacco Master Settlement Agreement Fund (Fund 087) to the ABD 95076
Managed Care Program – State Fund (Fund 5BZ) in accordance with 95077
this section. The amount transferred under this division is hereby 95078
appropriated to appropriation item 600-698, ABD Managed Care 95079
Program – State.95080

        (C) The Department of Job and Family Services shall deposit 95081
federal reimbursement received for the Aged, Blind, and Disabled 95082
Managed Care Program into the ABD Managed Care Program – Federal 95083
Fund (Fund 3AZ), which is hereby created. Amounts deposited into 95084
Fund 3AZ are hereby appropriated to appropriation item 600-699, 95085
ABD Managed Care Program – Federal.95086

       Section 206.67.24. WAIVER OF FOOD STAMP WORK REQUIREMENTS95087

        Pursuant to 7 U.S.C. 2015(o)(4)(A)(i), the Department of Job 95088
and Family Services shall request that the United States Secretary 95089
of Agriculture waive the applicability of the work requirement of 95090
7 U.S.C. 2015(o)(2) during fiscal years 2006 and 2007 to food 95091
stamp benefit recipients who reside in a county of this state that 95092
the Department determines has an unemployment rate of over 10 per 95093
cent or does not have a sufficient number of jobs to provide 95094
employment for the recipients. The Department shall make monthly 95095
determinations of which counties the waiver shall be in effect in. 95096
No individual may be exempted from the work requirements for more 95097
than a total of twelve months beginning July 1, 2005, and ending 95098
June 30, 2007.95099

        The Department shall report to the Speaker and Minority 95100
Leader of the House of Representatives and President and Minority 95101
Leader of the Senate on receipt or rejection of the waiver sought 95102
under this section.95103

       Section 206.72.  JCO JUDICIAL CONFERENCE OF OHIO95104

General Revenue Fund95105

GRF 018-321 Operating Expenses $ 957,000 $ 957,000 95106
TOTAL GRF General Revenue Fund $ 957,000 $ 957,000 95107

General Services Fund Group95108

403 018-601 Ohio Jury Instructions $ 225,000 $ 225,000 95109
TOTAL GSF General Services Fund Group $ 225,000 $ 225,000 95110
TOTAL ALL BUDGET FUND GROUPS $ 1,182,000 $ 1,182,000 95111

       STATE COUNCIL OF UNIFORM STATE LAWS95112

       Notwithstanding section 105.26 of the Revised Code, of the95113
foregoing appropriation item 018-321, Operating Expenses, up to95114
$66,000 in fiscal year 2006 and up to $68,000 in fiscal year 200795115
may be used to pay the expenses of the State Council of Uniform95116
State Laws, including membership dues to the National Conference95117
of Commissioners on Uniform State Laws.95118

       OHIO JURY INSTRUCTIONS FUND95119

       The Ohio Jury Instructions Fund (Fund 403) shall consist of95120
grants, royalties, dues, conference fees, bequests, devises, and95121
other gifts received for the purpose of supporting costs incurred95122
by the Judicial Conference of Ohio in dispensing educational and95123
informational data to the state's judicial system. Fund 403 shall95124
be used by the Judicial Conference of Ohio to pay expenses95125
incurred in dispensing educational and informational data to the95126
state's judicial system. All moneys accruing to Fund 403 in excess 95127
of $225,000 in fiscal year 2006 and in excess of $225,000 in 95128
fiscal year 2007 are hereby appropriated for the purposes95129
authorized.95130

       No money in the Ohio Jury Instructions Fund shall be95131
transferred to any other fund by the Director of Budget and95132
Management or the Controlling Board.95133

       Section 206.75.  JSC THE JUDICIARY/SUPREME COURT95134

General Revenue Fund95135

GRF 005-321 Operating Expenses - Judiciary/Supreme Court $ 118,855,655 $ 121,441,259 95136
GRF 005-401 State Criminal Sentencing Council $ 328,676 $ 343,730 95137
GRF 005-406 Law-Related Education $ 216,131 $ 222,615 95138
GRF 005-502 Commission for Legal Education Opportunity $ 435,000 $ 875,000 95139
TOTAL GRF General Revenue Fund $ 119,835,462 $ 122,882,604 95140

General Services Fund Group95141

672 005-601 Continuing Judicial Education $ 130,000 $ 130,000 95142
TOTAL GSF General Services Fund Group $ 130,000 $ 130,000 95143

Federal Special Revenue Fund Group95144

3J0 005-603 Federal Grants $ 848,070 $ 861,382 95145
TOTAL FED Federal Special Revenue Fund Group $ 848,070 $ 861,382 95146

State Special Revenue Fund Group95147

4C8 005-605 Attorney Registration $ 3,169,774 $ 3,264,867 95148
5T8 005-609 Grants and Awards $ 10,000 $ 10,000 95149
6A8 005-606 Supreme Court Admissions $ 1,410,718 $ 1,453,042 95150
643 005-607 Commission on Continuing Legal Education $ 569,203 $ 586,261 95151
TOTAL SSR State Special Revenue Fund Group $ 5,159,695 $ 5,314,170 95152
TOTAL ALL BUDGET FUND GROUPS $ 125,973,227 $ 129,188,156 95153

       LAW-RELATED EDUCATION95154

        The foregoing appropriation item 005-406, Law-Related 95155
Education, shall be distributed directly to the Ohio Center for 95156
Law-Related Education for the purposes of providing continuing 95157
citizenship education activities to primary and secondary 95158
students, expanding delinquency prevention programs, increasing 95159
activities for at-risk youth, and accessing additional public and 95160
private money for new programs.95161

       COMMISSION FOR LEGAL EDUCATION OPPORTUNITY95162

        The foregoing appropriation item 005-502, Commission for 95163
Legal Education Opportunity, shall be used to fund activities of 95164
the Commission for Legal Education Opportunity created by the 95165
Chief Justice of the Supreme Court of Ohio for purposes of 95166
assisting minority, low-income, and educationally disadvantaged 95167
college graduates in transition to legal education. Moneys 95168
appropriated to the Commission for Legal Education Opportunity may 95169
be used to establish and provide intensive course study designed 95170
to prepare eligible college graduates for law education, provide 95171
annual stipends for students who successfully complete the course 95172
of study and are admitted to and maintain satisfactory academic 95173
standing in an Ohio law school, and pay the administrative costs 95174
associated with the program.95175

       CONTINUING JUDICIAL EDUCATION95176

       The Continuing Judicial Education Fund (Fund 672) shall95177
consist of fees paid by judges and court personnel for attending95178
continuing education courses and other gifts and grants received95179
for the purpose of continuing judicial education. The foregoing95180
appropriation item 005-601, Continuing Judicial Education, shall95181
be used to pay expenses for continuing education courses for95182
judges and court personnel. If it is determined by the95183
Administrative Director of the Supreme Court that additional95184
appropriations are necessary, the amounts are hereby appropriated.95185

       No money in the Continuing Judicial Education Fund shall be95186
transferred to any other fund by the Director of Budget and95187
Management or the Controlling Board. Interest earned on moneys in95188
the Continuing Judicial Education Fund shall be credited to the95189
fund.95190

       FEDERAL GRANTS95191

       The Federal Grants Fund (Fund 3J0) shall consist of grants95192
and other moneys awarded to the Supreme Court (The Judiciary) by 95193
the United States Government or other entities that receive the95194
moneys directly from the United States Government and distribute 95195
those moneys to the Supreme Court (The Judiciary). The foregoing 95196
appropriation item 005-603, Federal Grants, shall be used in a 95197
manner consistent with the purpose of the grant or award. If it is 95198
determined by the Administrative Director of the Supreme Court 95199
that additional appropriations are necessary, the amounts are 95200
hereby appropriated.95201

       No money in the Federal Grants Fund shall be transferred to 95202
any other fund by the Director of Budget and Management or the 95203
Controlling Board. However, interest earned on moneys in the 95204
Federal Grants Fund shall be credited or transferred to the 95205
General Revenue Fund.95206

       ATTORNEY REGISTRATION95207

       In addition to funding other activities considered95208
appropriate by the Supreme Court, the foregoing appropriation item95209
005-605, Attorney Registration, may be used to compensate95210
employees and to fund appropriate activities of the following95211
offices established by the Supreme Court under the Rules for the 95212
Government of the Bar of Ohio: the Office of Disciplinary Counsel, 95213
the Board of Commissioners on Grievances and Discipline, the 95214
Clients' Security Fund, the Board of Commissioners on the95215
Unauthorized Practice of Law, and the Office of Attorney95216
Registration. If it is determined by the Administrative Director95217
of the Supreme Court that additional appropriations are necessary,95218
the amounts are hereby appropriated.95219

       No moneys in the Attorney Registration Fund shall be95220
transferred to any other fund by the Director of Budget and95221
Management or the Controlling Board. Interest earned on moneys in95222
the Attorney Registration Fund shall be credited to the fund.95223

       GRANTS AND AWARDS95224

       The Grants and Awards Fund (Fund 5T8) shall consist of grants 95225
and other moneys awarded to the Supreme Court (The Judiciary) by 95226
the State Justice Institute, the Division of Criminal Justice 95227
Services, or other entities. The foregoing appropriation item 95228
005-609, Grants and Awards, shall be used in a manner consistent 95229
with the purpose of the grant or award. If it is determined by the 95230
Administrative Director of the Supreme Court that additional 95231
appropriations are necessary, the amounts are hereby appropriated.95232

       No moneys in the Grants and Awards Fund shall be transferred 95233
to any other fund by the Director of Budget and Management or the 95234
Controlling Board. However, interest earned on moneys in the 95235
Grants and Awards Fund shall be credited or transferred to the 95236
General Revenue Fund.95237

       SUPREME COURT ADMISSIONS95238

       The foregoing appropriation item 005-606, Supreme Court95239
Admissions, shall be used to compensate Supreme Court employees95240
who are primarily responsible for administering the attorney95241
admissions program under the Rules for the Government of the Bar 95242
of Ohio, and to fund any other activities considered appropriate 95243
by the court. Moneys shall be deposited into the Supreme Court95244
Admissions Fund (Fund 6A8) under the Supreme Court Rules for the95245
Government of the Bar of Ohio. If it is determined by the 95246
Administrative Director of the Supreme Court that additional 95247
appropriations are necessary, the amounts are hereby appropriated.95248

       No moneys in the Supreme Court Admissions Fund shall be95249
transferred to any other fund by the Director of Budget and95250
Management or the Controlling Board. Interest earned on moneys in95251
the Supreme Court Admissions Fund shall be credited to the fund.95252

       CONTINUING LEGAL EDUCATION95253

       The foregoing appropriation item 005-607, Commission on95254
Continuing Legal Education, shall be used to compensate employees95255
of the Commission on Continuing Legal Education established under 95256
the Supreme Court Rules for the Government of the Bar of Ohio, and 95257
to fund other activities of the commission considered appropriate 95258
by the court. If it is determined by the Administrative Director 95259
of the Supreme Court that additional appropriations are necessary, 95260
the amounts are hereby appropriated.95261

       No moneys in the Continuing Legal Education Fund shall be95262
transferred to any other fund by the Director of Budget and95263
Management or the Controlling Board. Interest earned on moneys in95264
the Continuing Legal Education Fund shall be credited to the fund.95265

       Section 206.78.  LEC LAKE ERIE COMMISSION95266

State Special Revenue Fund Group95267

4C0 780-601 Lake Erie Protection Fund $ 875,000 $ 875,000 95268
5D8 780-602 Lake Erie Resources Fund $ 486,072 $ 492,794 95269
TOTAL SSR State Special Revenue 95270
Fund Group $ 1,361,072 $ 1,367,794 95271
TOTAL ALL BUDGET FUND GROUPS $ 1,361,072 $ 1,367,794 95272

       CASH TRANSFER95273

       Not later than the thirtieth day of November of each fiscal95274
year, the Executive Director of the Ohio Lake Erie Office, with95275
the approval of the Lake Erie Commission, shall certify to the95276
Director of Budget and Management the cash balance in the Lake95277
Erie Resources Fund (Fund 5D8) in excess of amounts needed to meet95278
operating expenses of the Lake Erie Office. The Lake Erie Office 95279
may request the Director of Budget and Management to transfer up 95280
to the certified amount from the Lake Erie Resources Fund (Fund 95281
5D8) to the Lake Erie Protection Fund (Fund 4C0). The Director of 95282
Budget and Management may transfer the requested amount, or the 95283
Director may transfer a different amount up to the certified 95284
amount. Cash transferred shall be used for the purposes described 95285
in division (A) of section 1506.23 of the Revised Code. The amount 95286
transferred by the director is hereby appropriated to the95287
foregoing appropriation item 780-601, Lake Erie Protection Fund,95288
which shall be increased by the amount transferred.95289

       Section 206.81.  LRS LEGAL RIGHTS SERVICE95290

General Revenue Fund95291

GRF 054-100 Personal Services $ 162,281 $ 162,281 95292
GRF 054-200 Maintenance $ 33,938 $ 33,938 95293
GRF 054-300 Equipment $ 1,856 $ 1,856 95294
GRF 054-401 Ombudsman $ 291,247 $ 291,247 95295
TOTAL GRF General Revenue Fund $ 489,322 $ 489,322 95296

General Services Fund Group95297

416 054-601 Gifts and Donations $ 1,352 $ 1,352 95298
5M0 054-610 Settlements $ 75,000 $ 75,000 95299
TOTAL GSF General Services 95300
Fund Group $ 76,352 $ 76,352 95301

Federal Special Revenue Fund Group95302

3AG 054-613 Protection and Advocacy - Voter Accessibility $ 114,089 $ 114,089 95303
3B8 054-603 Protection and Advocacy - Mentally Ill $ 1,059,041 $ 1,059,041 95304
3N3 054-606 Protection and Advocacy - Individual Rights $ 550,283 $ 550,283 95305
3N9 054-607 Assistive Technology $ 141,686 $ 141,686 95306
3R9 054-604 Family Support Collaborative $ 50,000 $ 50,000 95307
3T2 054-609 Client Assistance Program $ 400,553 $ 400,553 95308
3X1 054-611 Protection and Advocacy for Beneficiaries of Social Security $ 187,784 $ 187,784 95309
3Z6 054-612 Traumatic Brain Injury $ 65,138 $ 65,138 95310
305 054-602 Protection and Advocacy - Developmentally Disabled $ 1,369,082 $ 1,369,082 95311
TOTAL FED Federal Special Revenue 95312
Fund Group $ 3,937,656 $ 3,937,656 95313

State Special Revenue Fund Group95314

5AE 054-614 Grants and Contracts $ 75,000 $ 75,000 95315
TOTAL SSR State Special Revenue Fund Group $ 75,000 $ 75,000 95316
TOTAL ALL BUDGET FUND GROUPS $ 4,578,330 $ 4,578,330 95317


       Section 206.84.  JLE JOINT LEGISLATIVE ETHICS COMMITTEE95319

General Revenue Fund95320

GRF 028-321 Legislative Ethics Committee $ 550,000 $ 550,000 95321
TOTAL GRF General Revenue Fund $ 550,000 $ 550,000 95322

TOTAL ALL BUDGET FUND GROUPS $ 550,000 $ 550,000 95323


       Section 206.87. LSC LEGISLATIVE SERVICE COMMISSION95325

General Revenue Fund95326

GRF 035-321 Operating Expenses $ 15,398,213 $ 16,026,427 95327
GRF 035-402 Legislative Interns $ 1,012,000 $ 1,012,000 95328
GRF 035-404 Legislative Office of Education Oversight $ 628,214 $ 0 95329
GRF 035-405 Correctional Institution Inspection Committee $ 375,000 $ 390,000 95330
GRF 035-409 National Associations $ 445,000 $ 456,000 95331
GRF 035-410 Legislative Information Systems $ 3,625,000 $ 3,625,000 95332
TOTAL GRF General Revenue Fund $ 21,483,427 $ 21,509,427 95333

General Services Fund Group95334

4F6 035-603 Legislative Budget Services $ 152,000 $ 152,500 95335
410 035-601 Sale of Publications $ 25,000 $ 25,000 95336
TOTAL GSF General Services 95337
Fund Group $ 177,000 $ 177,500 95338
TOTAL ALL BUDGET FUND GROUPS $ 21,660,427 $ 21,686,927 95339

       JOINT LEGISLATIVE COMMITTEE ON MEDICAID TECHNOLOGY AND REFORM95340

        Of the foregoing appropriation item 035-321, Operating 95341
Expenses, $100,000 in each fiscal year shall be used for costs 95342
associated with employing an executive director for the Joint 95343
Legislative Committee on Medicaid Technology and Reform as 95344
authorized by division (C) of section 101.391 of the Revised Code.95345

       ELIMINATION OF LEGISLATIVE OFFICE OF EDUCATION OVERSIGHT95346

       The Legislative Office of Education Oversight shall complete 95347
statutorily required studies by December 31, 2005. On January 1, 95348
2006, the Director of Budget and Management shall transfer the 95349
unencumbered cash balance from GRF appropriation item 035-404, 95350
Legislative Office of Education Oversight, to GRF appropriation 95351
item 035-321, Operating Expenses.95352

       It is the intent of the General Assembly to reconstitute the 95353
Legislative Budget Office within the Legislative Service 95354
Commission to focus on revenue forecasting. The Legislative 95355
Service Commission shall employ a Legislative Budget Officer. The 95356
Legislative Service Commission shall also employ a person to focus 95357
on Medicaid, TANF, and other federally-funded, caseload-driven 95358
programs. It is the intent of the General Assembly to retain 95359
current fiscal staff within the Legislative Service Commission.95360

       Section 206.90.  LIB STATE LIBRARY BOARD95361

General Revenue Fund95362

GRF 350-321 Operating Expenses $ 6,298,677 $ 6,298,677 95363
GRF 350-400 Ohio Public Library Information Network $ 4,330,000 $ 4,330,000 95364
GRF 350-401 Ohioana Rental Payments $ 124,816 $ 124,816 95365
GRF 350-501 Library for the Blind-Cincinnati $ 535,615 $ 535,615 95366
GRF 350-502 Regional Library Systems $ 1,010,441 $ 1,010,441 95367
GRF 350-503 Library for the Blind-Cleveland $ 805,642 $ 805,642 95368
TOTAL GRF General Revenue Fund $ 13,105,191 $ 13,105,191 95369

General Services Fund Group95370

139 350-602 Intra-Agency Service Charges $ 9,000 $ 9,000 95371
4S4 350-604 OPLIN Technology $ 3,000,000 $ 3,000,000 95372
459 350-602 Interlibrary Service Charges $ 2,469,925 $ 2,708,092 95373
TOTAL GSF General Services 95374
Fund Group $ 5,478,925 $ 5,717,092 95375

Federal Special Revenue Fund Group95376

313 350-601 LSTA Federal $ 5,643,905 $ 5,643,905 95377
TOTAL FED Federal Special Revenue 95378
Fund Group $ 5,643,905 $ 5,643,905 95379
TOTAL ALL BUDGET FUND GROUPS $ 24,228,021 $ 24,466,188 95380

       OHIOANA RENTAL PAYMENTS95381

       The foregoing appropriation item 350-401, Ohioana Rental95382
Payments, shall be used to pay the rental expenses of the Martha95383
Kinney Cooper Ohioana Library Association pursuant to section95384
3375.61 of the Revised Code.95385

       LIBRARY FOR THE BLIND-CINCINNATI95386

        The foregoing appropriation item 350-501, Library for the 95387
Blind-Cincinnati, shall be used for the Talking Book program, 95388
which assists the blind and disabled.95389

       REGIONAL LIBRARY SYSTEMS95390

       The foregoing appropriation item 350-502, Regional Library95391
Systems, shall be used to support regional library systems95392
eligible for funding under sections 3375.83 and 3375.90 of the 95393
Revised Code.95394

       LIBRARY FOR THE BLIND-CLEVELAND95395

        The foregoing appropriation item 350-503, Library for the 95396
Blind-Cleveland, shall be used for the Talking Book program, which 95397
assists the blind and disabled.95398

       OHIO PUBLIC LIBRARY INFORMATION NETWORK95399

       The foregoing appropriation items 350-604, OPLIN Technology, 95400
and 350-400, Ohio Public Library Information Network, shall be95401
used for an information telecommunications network linking public95402
libraries in the state and such others as may be certified as95403
participants by the Ohio Public Library Information Network Board.95404

       The Ohio Public Library Information Network Board shall95405
consist of eleven members appointed by the State Library Board95406
from among the staff of public libraries and past and present95407
members of boards of trustees of public libraries, based on the95408
recommendations of the Ohio library community. The Ohio Public95409
Library Information Network Board, in consultation with the State95410
Library, shall develop a plan of operations for the network. The95411
board may make decisions regarding use of the foregoing 95412
appropriation items 350-400, Ohio Public Library Information 95413
Network, and 350-604, OPLIN Technology, may receive and expend 95414
grants to carry out the operations of the network in accordance 95415
with state law, and may appoint and fix the compensation of a 95416
director and necessary staff. The State Library shall be the 95417
fiscal agent for the network and shall have fiscal accountability 95418
for the expenditure of funds. The Ohio Public Library Information 95419
Network Board members shall be reimbursed for actual travel and95420
necessary expenses incurred in carrying out their 95421
responsibilities.95422

       In order to limit access to obscene and illegal materials95423
through internet use at Ohio Public Library Information Network95424
(OPLIN) terminals, local libraries with OPLIN computer terminals95425
shall adopt and implement policies that control access to obscene 95426
and illegal materials. These policies may include use of95427
technological systems to select or block certain internet access. 95428
The OPLIN shall condition provision of its funds, goods, and 95429
services on compliance with these policies. The OPLIN Board shall 95430
also adopt and communicate specific recommendations, including 95431
recommendations related to computer filtering, to local libraries 95432
on methods to control such improper usage. These methods may 95433
include each library implementing a written policy controlling 95434
such improper use of library terminals and requirements for95435
parental involvement or written authorization for juvenile 95436
internet usage.95437

       Of the foregoing appropriation item 350-400, Ohio Public 95438
Library Information Network, up to $100,000 in each fiscal year 95439
shall be used to help local libraries purchase or maintain filters 95440
to screen out obscene and illegal internet materials. At least 50 95441
per cent of the funds used for these purposes in each fiscal year 95442
shall be used for the purchase of filters.95443

       The OPLIN Board shall research and assist or advise local95444
libraries with regard to emerging technologies and methods that 95445
may be effective means to control access to obscene and illegal95446
materials. The OPLIN Executive Director shall biannually provide95447
written reports to the Governor, the Speaker and Minority Leader95448
of the House of Representatives, and the President and Minority95449
Leader of the Senate on any steps being taken by OPLIN and public95450
libraries in the state to limit and control such improper usage as95451
well as information on technological, legal, and law enforcement 95452
trends nationally and internationally affecting this area of 95453
public access and service.95454

       The Ohio Public Library Information Network, INFOhio, and95455
OhioLINK shall, to the extent feasible, coordinate and cooperate95456
in their purchase or other acquisition of the use of electronic95457
databases for their respective users and shall contribute funds in95458
an equitable manner to such effort.95459

       Section 206.93.  LCO LIQUOR CONTROL COMMISSION95460

Liquor Control Fund Group95461

043 970-321 Operating Expenses $ 781,181 $ 803,348 95462
TOTAL LCF Liquor Control Fund Group $ 781,181 $ 803,348 95463
TOTAL ALL BUDGET FUND GROUPS $ 781,181 $ 803,348 95464


       Section 206.96.  LOT STATE LOTTERY COMMISSION95466

General Services Fund Group95467

231 950-604 Charitable Gaming Oversight $ 1,200,000 $ 1,200,000 95468
TOTAL GSF General Services Fund Group $ 1,200,000 $ 1,200,000 95469

State Lottery Fund Group95470

044 950-100 Personal Services $ 24,969,422 $ 25,457,016 95471
044 950-200 Maintenance $ 17,642,894 $ 17,954,156 95472
044 950-300 Equipment $ 2,517,533 $ 2,494,718 95473
044 950-402 Game and Advertising Contracts $ 70,524,000 $ 70,024,000 95474
044 950-500 Problem Gambling Subsidy $ 335,000 $ 335,000 95475
044 950-601 Prizes, Bonuses, and Commissions $ 150,952,466 $ 147,716,286 95476
871 950-602 Annuity Prizes $ 148,680,031 $ 138,918,557 95477
TOTAL SLF State Lottery Fund 95478
Group $ 415,621,346 $ 402,899,733 95479
TOTAL ALL BUDGET FUND GROUPS $ 416,821,346 $ 404,099,733 95480

       OPERATING EXPENSES95481

       Notwithstanding sections 127.14 and 131.35 of the Revised 95482
Code, the Controlling Board may, at the request of the State 95483
Lottery Commission, authorize additional appropriations for 95484
operating expenses of the State Lottery Commission from the State 95485
Lottery Fund up to a maximum of 15 per cent of anticipated total 95486
revenue accruing from the sale of lottery tickets.95487

       PRIZES, BONUSES, AND COMMISSIONS95488

       Any amounts, in addition to the amounts appropriated in95489
appropriation item 950-601, Prizes, Bonuses, and Commissions, that95490
the Director of the State Lottery Commission determines to be 95491
necessary to fund prizes, bonuses, and commissions are hereby 95492
appropriated.95493

       ANNUITY PRIZES95494

       With the approval of the Office of Budget and Management, the95495
State Lottery Commission shall transfer cash from the State95496
Lottery Fund Group (Fund 044) to the Deferred Prizes Trust Fund95497
(Fund 871) in an amount sufficient to fund deferred prizes. The95498
Treasurer of State, from time to time, shall credit the Deferred95499
Prizes Trust Fund (Fund 871) the pro rata share of interest earned95500
by the Treasurer of State on invested balances.95501

       Any amounts, in addition to the amounts appropriated in95502
appropriation item 950-602, Annuity Prizes, that the Director of 95503
the State Lottery Commission determines to be necessary to fund 95504
deferred prizes and interest earnings are hereby appropriated.95505

       TRANSFERS TO THE LOTTERY PROFITS EDUCATION FUND95506

       The Ohio Lottery Commission shall transfer an amount greater95507
than or equal to $637,900,000 in fiscal year 2006 and $637,900,00095508
in fiscal year 2007 to the Lottery Profits Education Fund.95509
Transfers from the Commission to the Lottery Profits Education95510
Fund shall represent the estimated net income from operations for95511
the Commission in fiscal year 2006 and fiscal year 2007. Transfers 95512
by the Commission to the Lottery Profits Education Fund shall be 95513
administered as the statutes direct.95514

       Section 206.99.  MHC MANUFACTURED HOMES COMMISSION95515

General Services Fund Group95516

4K9 996-609 Operating Expenses $ 272,500 $ 0 95517
TOTAL GSF General Services 95518
Fund Group $ 272,500 $ 0 95519
TOTAL ALL BUDGET FUND GROUPS $ 272,500 $ 0 95520

       INCREASED APPROPRIATION THROUGH CONTROLLING BOARD95521

        The Manufactured Homes Commission shall seek Controlling 95522
Board approval in fiscal year 2006 for a planned increase of at 95523
least $356,250 in appropriation item 996-609, Operating Expenses.95524

       Section 209.03. MED STATE MEDICAL BOARD95525

General Services Fund Group95526

5C6 883-609 Operating Expenses $ 7,467,317 $ 7,467,317 95527
TOTAL GSF General Services 95528
Fund Group $ 7,467,317 $ 7,467,317 95529
TOTAL ALL BUDGET FUND GROUPS $ 7,467,317 $ 7,467,317 95530


       Section 209.04.  AMB MEDICAL TRANSPORTATION BOARD95532

General Services Fund Group95533

4N1 915-601 Operating Expenses $ 388,450 $ 0 95534
TOTAL GSF General Services 95535
Fund Group $ 388,450 $ 0 95536
TOTAL ALL BUDGET FUND GROUPS $ 388,450 $ 0 95537


       Section 209.06.  DMH DEPARTMENT OF MENTAL HEALTH95539

General Services Fund Group95540

151 235-601 General Administration $ 89,614,180 $ 93,898,713 95541
TOTAL ISF Intragovernmental 95542
Service Fund Group $ 89,614,180 $ 93,898,713 95543

Division of Mental Health--
95544

Psychiatric Services to Correctional Facilities
95545

General Revenue Fund95546

GRF 332-401 Forensic Services $ 4,338,858 $ 4,338,858 95547
TOTAL GRF General Revenue Fund $ 4,338,858 $ 4,338,858 95548

       FORENSIC SERVICES95549

       The foregoing appropriation item 332-401, Forensic Services,95550
shall be used to provide psychiatric services to courts of common95551
pleas. The appropriation shall be allocated through community95552
mental health boards to certified community agencies and shall be95553
distributed according to the criteria delineated in rule95554
5122:4-1-01 of the Administrative Code. These community forensic95555
funds may also be used to provide forensic training to community95556
mental health boards and to forensic psychiatry residency programs95557
in hospitals operated by the Department of Mental Health and to95558
provide evaluations of patients of forensic status in facilities95559
operated by the Department of Mental Health prior to conditional95560
release to the community.95561

       In addition, appropriation item 332-401, Forensic Services,95562
may be used to support projects involving mental health, substance95563
abuse, courts, and law enforcement to identify and develop95564
appropriate alternative services to institutionalization for95565
nonviolent mentally ill offenders, and to provide linkage to95566
community services for severely mentally disabled offenders95567
released from institutions operated by the Department of95568
Rehabilitation and Correction. Funds may also be utilized to95569
provide forensic monitoring and tracking in addition to community95570
programs serving persons of forensic status on conditional release95571
or probation.95572

Division of Mental Health--
95573

Administration and Statewide Programs
95574

General Revenue Fund95575

GRF 333-321 Central Administration $ 23,853,669 $ 23,853,669 95576
GRF 333-402 Resident Trainees $ 1,364,919 $ 1,364,919 95577
GRF 333-403 Pre-Admission Screening Expenses $ 650,135 $ 650,135 95578
GRF 333-415 Lease-Rental Payments $ 23,296,200 $ 23,833,600 95579
GRF 333-416 Research Program Evaluation $ 1,001,551 $ 1,001,551 95580
TOTAL GRF General Revenue Fund $ 50,166,474 $ 50,703,874 95581

General Services Fund Group95582

149 333-609 Central Office Rotary - Operating $ 883,773 $ 893,786 95583
232 333-621 Family and Children First Administration $ 625,000 $ 625,000 95584
TOTAL General Services Fund Group $ 1,508,773 $ 1,518,786 95585

Federal Special Revenue Fund Group95586

3A6 333-608 Community & Hospital Services $ 65,000 $ 0 95587
3A8 333-613 Federal Grant - Administration $ 562,417 $ 512,417 95588
3A9 333-614 Mental Health Block Grant $ 748,740 $ 748,470 95589
3B1 333-635 Community Medicaid Expansion $ 3,671,537 $ 3,691,683 95590
324 333-605 Medicaid/Medicare $ 150,000 $ 150,000 95591
TOTAL Federal Special Revenue 95592
Fund Group $ 5,197,694 $ 5,102,570 95593

State Special Revenue Fund Group95594

4X5 333-607 Behavioral Health Medicaid Services $ 3,000,634 $ 3,000,634 95595
5V2 333-611 Non-Federal Miscellaneous $ 35,000 $ 35,000 95596
485 333-632 Mental Health Operating $ 134,233 $ 134,233 95597
TOTAL State Special Revenue 95598
Fund Group $ 3,169,867 $ 3,169,867 95599
TOTAL ALL BUDGET FUND GROUPS $ 60,042,808 $ 60,495,097 95600

       RESIDENCY TRAINEESHIP PROGRAMS95601

       The foregoing appropriation item 333-402, Resident Trainees,95602
shall be used to fund training agreements entered into by the95603
Department of Mental Health for the development of curricula and95604
the provision of training programs to support public mental health95605
services.95606

       PRE-ADMISSION SCREENING EXPENSES95607

       The foregoing appropriation item 333-403, Pre-Admission95608
Screening Expenses, shall be used to pay for costs to ensure that95609
uniform statewide methods for pre-admission screening are in place95610
to perform assessments for persons in need of mental health95611
services or for whom institutional placement in a hospital or in95612
another inpatient facility is sought. Pre-admission screening95613
includes the following activities: pre-admission assessment,95614
consideration of continued stay requests, discharge planning and95615
referral, and adjudication of appeals and grievance procedures.95616

       LEASE-RENTAL PAYMENTS95617

       The foregoing appropriation item 333-415, Lease-Rental95618
Payments, shall be used to meet all payments at the times they are95619
required to be made during the period from July 1, 2005, to June95620
30, 2007, by the Department of Mental Health under leases and 95621
agreements made under section 154.20 of the Revised Code, but95622
limited to the aggregate amount of $47,129,800. Nothing in this95623
act shall be deemed to contravene the obligation of the state to95624
pay, without necessity for further appropriation, from the sources95625
pledged thereto, the bond service charges on obligations issued95626
under section 154.20 of the Revised Code.95627

       BEHAVIORAL HEALTH MEDICAID SERVICES95628

       The Department of Mental Health shall administer specified95629
Medicaid Services as delegated by the Department of Job and Family95630
Services in an interagency agreement. The foregoing appropriation95631
item 333-607, Behavioral Health Medicaid Services, may be used to95632
make payments for free-standing psychiatric hospital inpatient95633
services as defined in an interagency agreement with the95634
Department of Job and Family Services.95635

       Section 209.06.03. DIVISION OF MENTAL HEALTH - HOSPITALS95636

General Revenue Fund95637

GRF 334-408 Community and Hospital Mental Health Services $ 390,424,545 $ 400,324,545 95638
GRF 334-506 Court Costs $ 976,652 $ 976,652 95639
TOTAL GRF General Revenue Fund $ 391,401,197 $ 401,301,197 95640

General Services Fund Group95641

149 334-609 Hospital Rotary - Operating Expenses $ 24,408,053 $ 24,408,053 95642
150 334-620 Special Education $ 120,930 $ 120,930 95643
TOTAL GSF General Services 95644
Fund Group $ 24,528,983 $ 24,528,983 95645

Federal Special Revenue Fund Group95646

3A6 334-608 Subsidy for Federal Grants $ 586,224 $ 586,224 95647
3A8 334-613 Federal Letter of Credit $ 200,000 $ 200,000 95648
3B0 334-617 Elementary and Secondary Education Act $ 171,930 $ 178,807 95649
3B1 334-635 Hospital Medicaid Expansion $ 2,000,000 $ 2,000,000 95650
324 334-605 Medicaid/Medicare $ 11,764,280 $ 11,873,408 95651
TOTAL FED Federal Special Revenue 95652
Fund Group $ 14,722,434 $ 14,838,439 95653

State Special Revenue Fund Group95654

485 334-632 Mental Health Operating $ 2,476,297 $ 2,476,297 95655
692 334-636 Community Mental Health Board Risk Fund $ 80,000 $ 80,000 95656
TOTAL SSR State Special Revenue 95657
Fund Group $ 2,556,297 $ 2,556,297 95658
TOTAL ALL BUDGET FUND GROUPS $ 433,208,911 $ 443,224,916 95659

       COMMUNITY MENTAL HEALTH BOARD RISK FUND95660

       The foregoing appropriation item 334-636, Community Mental95661
Health Board Risk Fund, shall be used to make payments under95662
section 5119.62 of the Revised Code.95663

       Section 209.06.06. DIVISION OF MENTAL HEALTH - COMMUNITY 95664
SUPPORT SERVICES95665

General Revenue Fund95666

GRF 335-404 Behavioral Health Services-Children $ 5,865,265 $ 6,865,265 95667
GRF 335-405 Family & Children First $ 2,260,000 $ 2,260,000 95668
GRF 335-419 Community Medication Subsidy $ 12,292,848 $ 13,626,748 95669
GRF 335-505 Local Mental Health Systems of Care $ 94,687,868 $ 99,687,868 95670
TOTAL GRF General Revenue Fund $ 115,105,981 $ 122,439,881 95671

General Services Fund Group95672

4P9 335-604 Community Mental Health Projects $ 250,000 $ 250,000 95673
TOTAL GSF General Services 95674
Fund Group $ 250,000 $ 250,000 95675

Federal Special Revenue Fund Group95676

3A6 335-608 Federal Miscellaneous $ 1,089,699 $ 678,699 95677
3A7 335-612 Social Services Block Grant $ 8,657,288 $ 8,657,288 95678
3A8 335-613 Federal Grant - Community Mental Health Board Subsidy $ 2,407,040 $ 2,407,040 95679
3A9 335-614 Mental Health Block Grant $ 14,969,400 $ 14,969,400 95680
3B1 335-635 Community Medicaid Expansion $ 264,088,404 $ 282,807,902 95681
TOTAL FED Federal Special Revenue Fund Group $ 291,211,831 $ 309,520,329 95682

State Special Revenue Fund Group95683

5AU 335-615 Behavioral Healthcare $ 4,690,000 $ 4,690,000 95684
5CH 335-622 Residential State Supplement $ 1,500,000 $ 1,500,000 95685
632 335-616 Community Capital Replacement $ 350,000 $ 350,000 95686
TOTAL SSR State Special Revenue Fund Group $ 6,540,000 $ 6,540,000 95687

TOTAL ALL BUDGET FUND GROUPS $ 413,107,812 $ 438,750,210 95688
DEPARTMENT TOTAL 95689
GENERAL REVENUE FUND $ 561,012,510 $ 578,783,810 95690
DEPARTMENT TOTAL 95691
GENERAL SERVICES FUND GROUP $ 115,901,936 $ 120,196,482 95692
DEPARTMENT TOTAL 95693
FEDERAL SPECIAL REVENUE 95694
FUND GROUP $ 311,131,959 $ 329,461,338 95695
DEPARTMENT TOTAL 95696
STATE SPECIAL REVENUE FUND GROUP $ 12,266,164 $ 12,266,164 95697
DEPARTMENT TOTAL 95698
TOTAL DEPARTMENT OF MENTAL HEALTH $ 1,000,312,569 $ 1,040,707,794 95699


       Section 209.06.09.  COMMUNITY MEDICATION SUBSIDY95701

       The foregoing appropriation item 335-419, Community95702
Medication Subsidy, shall be used to provide subsidized support95703
for psychotropic medication needs of indigent citizens in the95704
community to reduce unnecessary hospitalization because of lack of95705
medication and to provide subsidized support for methadone costs.95706

       Of the foregoing appropriation item 335-419, Community 95707
Medication Subsidy, $4,333,050 in fiscal year 2006 and $5,666,950 95708
in fiscal year 2007 shall be used to provide services to persons 95709
who meet criteria that is consistent with the criteria for the 95710
Disability Medical Assistance Program.95711

       LOCAL MENTAL HEALTH SYSTEMS OF CARE95712

       The foregoing appropriation item 335-505, Local Mental Health 95713
Systems of Care, shall be used for mental health services provided 95714
by community mental health boards in accordance with a community 95715
mental health plan submitted under section 340.03 of the Revised 95716
Code and as approved by the Department of Mental Health.95717

       Of the foregoing appropriation, not less than $34,818,917 in 95718
fiscal year 2006 and not less than $34,818,917 in fiscal year 2007 95719
shall be distributed by the Department of Mental Health on a per 95720
capita basis to community mental health boards.95721

       Of the foregoing appropriation, $100,000 in each fiscal year 95722
shall be used to fund family and consumer education and support.95723

       BEHAVIORAL HEALTH - CHILDREN95724

       The foregoing appropriation item 335-404, Behavioral Health 95725
Services-Children, shall be used to provide behavioral health 95726
services for children and their families. Behavioral health 95727
services include mental health and alcohol and other drug 95728
treatment services and other necessary supports.95729

       Of the foregoing appropriation item 335-404, Behavioral 95730
Health Services-Children, an amount up to $4.5 million in fiscal 95731
year 2006 and $5.5 million in fiscal year 2007 shall be 95732
distributed to local Alcohol, Drug Addiction, and Mental Health 95733
Boards; Community Mental Health Boards; and Alcohol and Drug 95734
Addiction Boards, based upon a formula and an approved children's 95735
behavioral health transformation plan developed and endorsed by 95736
the local Family and Children First Council with the leadership 95737
from the Alcohol, Drug Addiction, and Mental Health Board, or the 95738
Community Mental Health Board, and the Alcohol and Drug Addiction 95739
Services Board. The use of these funds shall be approved by a team 95740
of state and local stakeholders appointed by the Ohio Family and 95741
Children First Cabinet Council. This team shall be appointed not 95742
later than July 1, 2005, and shall include, but not be limited to, 95743
all of the following: 95744

       (A) At least one representative from each of the Departments 95745
of Alcohol and Drug Addiction Services, Mental Health, Education, 95746
Health, Job and Family Services, Mental Retardation and 95747
Developmental Disabilities, and the Department of Youth Services; 95748

       (B) At least one person representing local public children's 95749
services agencies; 95750

       (C) At least one person representing juvenile courts; 95751

       (D) At least one person representing local Alcohol, Drug 95752
Addiction, and Mental Health Boards; Community Mental Health 95753
Boards; and Alcohol and Drug Addiction Boards; 95754

       (E) At least one person representing local Family and 95755
Children First Council Coordinators; 95756

       (F) At least one family representative.95757

       Children's behavioral health transformation plans shall be 95758
congruent with the development and implementation of the process 95759
described in division (B)(2)(b) of section 121.37 of the Revised 95760
Code and shall address all of the following as determined by a 95761
team of state and local stakeholders appointed by the Ohio Family 95762
and Children First Cabinet Council: 95763

       (A) Specific strategies and actions for use of all funds 95764
allocated for the Access to Better Care Initiative by all Ohio 95765
Family and Children First Cabinet Council agencies that will 95766
further the transformation of the local Children's Behavioral 95767
Health Care System;95768

       (B) Providing services to children with behavioral health 95769
disorders, particularly those with intensive needs, and their 95770
families, across all child-serving systems, including child 95771
welfare and juvenile justice and for those youth whose parents 95772
would otherwise have to relinquish custody to obtain needed 95773
behavioral health services;95774

       (C) Assuring that families are included in all service 95775
planning activities and have access to advocates to assist them if 95776
they choose;95777

       (D) Implementation of home-based services and other 95778
alternatives to out-of-home placement;95779

       (E) Assuring that all individual service plans for children 95780
and their families address the academic achievement of the child;95781

       (F) Coordinating the most efficient and effective use of 95782
federal, state, and local funds to meet the needs of children and 95783
their families.95784

       Funds may be used to support the following services and 95785
activities: 95786

       (A) Mental health services provided by the Ohio Department of 95787
Mental Health certified agencies and alcohol and other drug 95788
services provided by Department of Alcohol and Drug Addiction 95789
Services certified agencies;95790

       (B) Services and supports for children and their families 95791
that further the implementation of their individual service plans;95792

       (C) Treatment services in out-of-home settings, including 95793
residential facilities, when other alternatives are not available 95794
or feasible;95795

       (D) Administrative support for efforts associated with this 95796
initiative;95797

       (E) These funds shall not be used to supplant existing 95798
efforts.95799

       The Ohio Family and Children First Cabinet Council appointed 95800
team shall approve the plans for local behavioral health services 95801
and ensure the plans are components of and properly coordinated 95802
with the county service coordination plan as defined in section 95803
121.37 of the Revised Code. In addition to approving the plans for 95804
new behavioral health funding, this team shall design a mechanism 95805
to provide technical assistance to local communities, monitor the 95806
plans, and may, as part of the monitoring role, conduct site 95807
visits.95808

       Of the foregoing appropriation item 335-404, Behavioral 95809
Health Services-Children, an amount up to $1.0 million in fiscal 95810
year 2006 and $1.0 million in fiscal year 2007 shall be used to 95811
support projects, as determined by the Ohio Family and Children 95812
First Cabinet Council, in select areas around the state to focus 95813
on improving behavioral health services for children involved in 95814
the child welfare and juvenile justice systems. At least one of 95815
these projects shall focus on services for adolescent girls that 95816
are involved in or at risk of involvement with the juvenile 95817
justice system. 95818

       Of the foregoing appropriation item 335-405, Family & 95819
Children First, an amount up to $500,000 in fiscal year 2006 and 95820
$500,000 in fiscal year 2007 shall be used for children who do not 95821
have behavioral health disorders but require assistance through 95822
the County Family and Children First Council.95823

       RESIDENTIAL STATE SUPPLEMENT95824

       The foregoing appropriation item 335-622, Residential State 95825
Supplement, shall be used to provide subsidized support for 95826
licensed adult care facilities which serve individuals with mental 95827
illness.95828

       Section 209.06.15. The Department of Mental Health, with the 95829
Bureau of Workers' Compensation, Department of Rehabilitation and 95830
Correction, the Department of Youth Services, and any other state 95831
or local government agency that purchases prescription drugs, 95832
other than the Department of Job and Family Services for the 95833
purposes of the Medicaid program shall do all of the following:95834

       (A) Study intrastate consolidated prescription drug 95835
purchasing systems currently in effect in other states under which 95836
a single entity administers the state's prescription drug 95837
purchases;95838

       (B) Estimate potential cost-savings and other advantages, as 95839
well as any potential disadvantages, that might result if Ohio 95840
were to consolidate its executive agencies' prescription drug 95841
purchases under a prescription drug purchasing program;95842

       (C) Design a consolidated prescription drug purchasing 95843
program appropriate to the prescription drug purchasing needs of 95844
the state, including the following elements:95845

       (1) The scope and structure of the consolidated prescription 95846
drug purchasing program;95847

       (2) A business plan to direct the implementation of the 95848
program and the transition of prescription drug purchasing from 95849
the state's executive agencies to the consolidated prescription 95850
drug purchasing program;95851

       (3) Identification of the resources required to implement the 95852
business plan described in division (C)(2) of this section;95853

       (4) A schedule of the amount of time required to implement 95854
the business plan described in division (C)(2) of this section.95855

       (D) By not later than January 1, 2006, prepare and submit a 95856
written report of its findings to the Governor, the Speaker and 95857
Minority Leader of the House of Representatives, and the President 95858
and Minority Leader of the Senate. The report shall include an 95859
analysis of any costs Ohio may incur in creating a consolidated 95860
prescription drug purchasing program.95861

       Section 209.09.  DMR DEPARTMENT OF MENTAL RETARDATION AND95862
DEVELOPMENTAL DISABILITIES95863

       Section 209.09.03.  GENERAL ADMINISTRATION AND STATEWIDE 95864
SERVICES95865

General Revenue Fund95866

GRF 320-321 Central Administration $ 9,357,877 $ 9,357,874 95867
GRF 320-412 Protective Services $ 2,463,000 $ 2,463,000 95868
GRF 320-415 Lease-Rental Payments $ 23,296,200 $ 23,833,600 95869
TOTAL GRF General Revenue Fund $ 35,117,077 $ 35,654,474 95870

General Services Fund Group95871

4B5 320-640 Conference/Training $ 300,000 $ 300,000 95872
TOTAL GSF General Services 95873
Fund Group $ 300,000 $ 300,000 95874

Federal Special Revenue Fund Group95875

3A4 320-605 Administrative Support $ 13,492,892 $ 13,492,892 95876
3A5 320-613 DD Council Operating $ 895,440 $ 895,440 95877
Expenses 95878
325 320-634 Protective Services $ 100,000 $ 100,000 95879
TOTAL FED Federal Special Revenue 95880
Fund Group $ 14,488,332 $ 14,488,332 95881

State Special Revenue Fund Group 95882
5S2 590-622 Medicaid Administration & Oversight $ 8,000,000 $ 8,000,000 95883
TOTAL SSR State Special Revenue 95884
Fund Group $ 8,000,000 $ 8,000,000 95885
TOTAL ALL GENERAL ADMINISTRATION 95886
AND STATEWIDE SERVICES 95887
BUDGET FUND GROUPS $ 57,905,409 $ 58,442,806 95888

       LEASE-RENTAL PAYMENTS95889

       The foregoing appropriation item 320-415, Lease-Rental95890
Payments, shall be used to meet all payments at the times they are95891
required to be made during the period from July 1, 2005, to June95892
30, 2007, by the Department of Mental Retardation and95893
Developmental Disabilities under leases and agreements made under 95894
section 154.20 of the Revised Code, but limited to the aggregate 95895
amount of $47,129,800. Nothing in this act shall be deemed to 95896
contravene the obligation of the state to pay, without necessity 95897
for further appropriation, from the sources pledged thereto, the 95898
bond service charges on obligations issued under section 154.20 of 95899
the Revised Code.95900

       Section 209.09.06.  COMMUNITY SERVICES95901

General Revenue Fund95902

GRF 322-405 State Use Program $ 20,000 $ 0 95903
GRF 322-413 Residential and Support Services $ 7,423,021 $ 7,423,021 95904
GRF 322-416 Waiver State Match $ 103,090,738 $ 104,397,504 95905
GRF 322-417 Supported Living $ 43,160,198 $ 43,160,198 95906
GRF 322-451 Family Support Services $ 6,938,898 $ 6,938,898 95907
GRF 322-452 Service and Support Administration $ 8,672,730 $ 8,672,730 95908
GRF 322-501 County Boards Subsidies $ 32,193,542 $ 32,193,542 95909
GRF 322-503 Tax Equity $ 14,500,000 $ 14,500,000 95910
TOTAL GRF General Revenue Fund $ 215,999,127 $ 217,285,893 95911

General Services Fund Group95912

4J6 322-645 Intersystem Services for Children $ 300,000 $ 0 95913
4U4 322-606 Community MR and DD Trust $ 300,000 $ 50,000 95914
4V1 322-611 Family and Children First $ 40,000 $ 0 95915
488 322-603 Provider Audit Refunds $ 350,000 $ 350,000 95916
TOTAL GSF General Services 95917
Fund Group $ 990,000 $ 400,000 95918

Federal Special Revenue Fund Group95919

3A4 322-605 Community Program Support $ 1,500,000 $ 1,500,000 95920
3A5 322-613 DD Council Grants $ 3,204,240 $ 3,204,240 95921
3G6 322-639 Medicaid Waiver $ 373,772,814 $ 373,772,814 95922
3M7 322-650 CAFS Medicaid $ 125,924,299 $ 103,773,730 95923
325 322-608 Grants for Infants and Families with Disabilities $ 1,763,165 $ 1,763,165 95924
325 322-612 Community Social Service Programs $ 11,500,000 $ 11,500,000 95925
TOTAL FED Federal Special Revenue 95926
Fund Group $ 517,664,518 $ 495,513,949 95927

State Special Revenue Fund Group95928

4K8 322-604 Waiver - Match $ 12,000,000 $ 12,000,000 95929
5H0 322-619 Medicaid Repayment $ 25,000 $ 25,000 95930
5Z1 322-624 County Board Waiver Match $ 82,000,000 $ 82,000,000 95931
TOTAL SSR State Special Revenue 95932
Fund Group $ 94,025,000 $ 94,025,000 95933
TOTAL ALL COMMUNITY SERVICES 95934
BUDGET FUND GROUPS $ 828,678,645 $ 807,224,842 95935

       RESIDENTIAL AND SUPPORT SERVICES95936

       The Department of Mental Retardation and Developmental 95937
Disabilities may designate a portion of appropriation item 95938
322-413, Residential and Support Services, for the following:95939

       (A) Sermak Class Services used to implement the requirements95940
of the agreement settling the consent decree in Sermak v. Manuel, 95941
Case No. c-2-80-220, United States District Court for the Southern 95942
District of Ohio, Eastern Division;95943

       (B) Medicaid-reimbursed programs other than home and 95944
community-based waiver services, in an amount not to exceed 95945
$1,000,000 in each fiscal year, that enable persons with mental 95946
retardation and developmental disabilities to live in the95947
community.95948

       WAIVER STATE MATCH95949

       The purposes for which the foregoing appropriation item 95950
322-416, Waiver State Match, shall be used include the following:95951

       (A) Home and community-based waiver services under Title XIX 95952
of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, 95953
as amended.95954

       (B) Services contracted by county boards of mental 95955
retardation and developmental disabilities.95956

       (C) To pay the nonfederal share of the cost of one or more 95957
new intermediate-care-facility-for-the-mentally-retarded certified 95958
beds in a county where the county board of mental retardation and 95959
developmental disabilities does not initiate or support the 95960
development or certification of such beds, if the Director of 95961
Mental Retardation and Developmental Disabilities is required by 95962
this act to transfer to the Director of Job and Family Services 95963
funds to pay such nonfederal share.95964

       The Department of Mental Retardation and Developmental 95965
Disabilities may designate a portion of appropriation item 95966
322-416, Waiver State Match, to county boards of mental 95967
retardation and developmental disabilities that have greater need 95968
for various residential and support services because of a low 95969
percentage of residential and support services development in 95970
comparison to the number of individuals with mental retardation or 95971
developmental disabilities in the county.95972

       Of the foregoing appropriation item 322-416, Waiver State 95973
Match, $9,850,000 in each year of the biennium shall be 95974
distributed by the Department to county boards of mental 95975
retardation and developmental disabilities to support existing 95976
residential facilities waiver and individual options waiver 95977
related to Medicaid activities provided for in the component of a 95978
county board's plan developed under division (A)(2) of section 95979
5126.054 of the Revised Code and approved under section 5123.046 95980
of the Revised Code. Up to $3,000,000 of these funds in each 95981
fiscal year may be used to implement day-to-day program management 95982
services under division (A)(2) of section 5126.054 of the Revised 95983
Code. Up to $4,200,000 in each fiscal year may be used to 95984
implement the program and health and welfare requirements of 95985
division (A)(2) of section 5126.054 of the Revised Code.95986

        In fiscal years 2006 and 2007 not less than $2,650,000 of 95987
these funds shall be used to recruit and retain, under division 95988
(A)(2) of section 5126.054 of the Revised Code, the direct care 95989
staff necessary to implement the services included in an 95990
individualized service plan in a manner that ensures the health 95991
and welfare of the individuals being served.95992

        The method utilized by the department to determine each 95993
residential facilities wavier and individual options provider's 95994
allocation of such funds in fiscal year 2005 shall be used for 95995
allocation purposes to such providers in fiscal years 2006 and 95996
2007, respectively.95997

       SUPPORTED LIVING95998

       The purposes for which the foregoing appropriation item 95999
322-417, Supported Living, shall be used include supported living 96000
services contracted by county boards of mental retardation and 96001
developmental disabilities under sections 5126.40 to 5126.47 of 96002
the Revised Code and paying the nonfederal share of the cost of 96003
one or more new 96004
intermediate-care-facility-for-the-mentally-retarded certified 96005
beds in a county where the county board of mental retardation and 96006
developmental disabilities does not initiate or support the 96007
development or certification of such beds, if the Director of 96008
Mental Retardation and Developmental Disabilities is required by 96009
this act to transfer to the Director of Job and Family Services 96010
funds to pay such nonfederal share.96011

       OTHER RESIDENTIAL AND SUPPORT SERVICE PROGRAMS96012

       Notwithstanding Chapters 5123. and 5126. of the Revised Code, 96013
the Department of Mental Retardation and Developmental 96014
Disabilities may develop residential and support service programs 96015
funded by appropriation item 322-413, Residential and Support 96016
Services; appropriation item 322-416, Waiver State Match; or 96017
appropriation item 322-417, Supported Living, that enable persons 96018
with mental retardation and developmental disabilities to live in 96019
the community. Notwithstanding Chapter 5121. and section 5123.122 96020
of the Revised Code, the Department may waive the support 96021
collection requirements of those statutes for persons in community 96022
programs developed by the Department under this section. The 96023
Department shall adopt rules under Chapter 119. of the Revised 96024
Code or may use existing rules for the implementation of these 96025
programs.96026

       FAMILY SUPPORT SERVICES96027

       Notwithstanding sections 5123.171, 5123.19, 5123.20, and96028
5126.11 of the Revised Code, the Department of Mental Retardation96029
and Developmental Disabilities may implement programs funded by96030
appropriation item 322-451, Family Support Services, to provide96031
assistance to persons with mental retardation or developmental96032
disabilities and their families who are living in the community.96033
The department shall adopt rules to implement these programs. The 96034
department may also use the foregoing appropriation item 322-451, 96035
Family Support Services, to pay the nonfederal share of the cost 96036
of one or more new 96037
intermediate-care-facility-for-the-mentally-retarded certified 96038
beds in a county where the county board of mental retardation and 96039
developmental disabilities initiates or supports the development 96040
or certification of such beds, if the Director of Mental 96041
Retardation and Developmental Disabilities is required by this act 96042
to transfer to the Director of Job and Family Services funds to 96043
pay such nonfederal share.96044

       SERVICE AND SUPPORT ADMINISTRATION96045

       The foregoing appropriation item 322-452, Service and Support 96046
Administration, shall be allocated to county boards of mental 96047
retardation and developmental disabilities for the purpose of96048
providing service and support administration services and to 96049
assist in bringing state funding for all department-approved96050
service and support administrators within county boards of mental 96051
retardation and developmental disabilities to the level authorized 96052
in division (C) of section 5126.15 of the Revised Code. The 96053
department may request approval from the Controlling Board to96054
transfer any unobligated appropriation authority from other state96055
General Revenue Fund appropriation items within the department's96056
budget to appropriation item 322-452, Service and Support 96057
Administration, to be used to meet the statutory funding level in 96058
division (C) of section 5126.15 of the Revised Code.96059

       Notwithstanding division (C) of section 5126.15 of the96060
Revised Code and subject to funding in appropriation item 322-452,96061
Service and Support Administration, no county may receive less 96062
than its allocation in fiscal year 1995. Wherever case management 96063
services are referred to in any law, contract, or other document, 96064
the reference shall be deemed to refer to service and support 96065
administration. No action or proceeding pending on the effective 96066
date of this section is affected by the renaming of case 96067
management services as service and support administration.96068

       The Department of Mental Retardation and Developmental 96069
Disabilities shall adopt, amend, and rescind rules as necessary to 96070
reflect the renaming of case management services as service and 96071
support administration. All boards of mental retardation and 96072
developmental disabilities and the entities with which they 96073
contract for services shall rename the titles of their employees 96074
who provide service and support administration. All boards and 96075
contracting entities shall make corresponding changes to all 96076
employment contracts.96077

       The Department also may use the foregoing appropriation item 96078
322-452, Service and Support Administration, to pay the nonfederal 96079
share of the cost of one or more new 96080
intermediate-care-facility-for-the-mentally-retarded certified 96081
beds in a county where the county board of mental retardation and 96082
developmental disabilities initiates or supports the development 96083
or certification of such beds, if the Director of Mental 96084
Retardation and Developmental Disabilities is required by this act 96085
to transfer to the Director of Job and Family Services funds to 96086
pay such nonfederal share.96087

       STATE SUBSIDIES TO MR/DD BOARDS96088

       Notwithstanding section 5126.12 of the Revised Code, for 96089
fiscal year 2006, the Department shall, if sufficient funds as 96090
determined by the Department are available, use the foregoing 96091
appropriation item 322-501, County Boards Subsidies, to pay each 96092
county board of mental retardation and developmental disabilities 96093
an amount that is equal to the amount such board received in 96094
fiscal year 2005. If the Department determines that there are not 96095
sufficient funds available in appropriation item 322-501, County 96096
Boards Subsidies, for this purpose, the Department shall pay to 96097
each county board an amount that is proportionate to the amount 96098
such board received in fiscal year 2005. Proportionality shall be 96099
determined by comparing the payment a county board received in a 96100
category in fiscal year 2005 to the total payments distributed to 96101
all county boards for such category in fiscal year 2005. For 96102
fiscal year 2007, the Department shall pay to each county board an 96103
amount that is determined by an allocation formula to be developed 96104
by the Department that considers the applicable factors in section 96105
5126.12 of the Revised Code.96106

       The Department also may use the foregoing appropriation item 96107
322-501, County Boards Subsidies, to pay the nonfederal share of 96108
the cost of one or more new 96109
intermediate-care-facility-for-the-mentally-retarded certified 96110
beds in a county where the county board of mental retardation and 96111
developmental disabilities initiates or supports the development 96112
or certification of such beds, if the Director of Mental 96113
Retardation and Developmental Disabilities is required by this act 96114
to transfer to the Director of Job and Family Services funds to 96115
pay such nonfederal share.96116

       NONFEDERAL MATCH FOR ACTIVE TREATMENT SERVICES96117

       Pursuant to an agreement between the county board and the 96118
Director of Mental Retardation and Developmental Disabilities, a 96119
county may pledge funds from its state allocation from GRF 96120
appropriation item 322-501, County Boards Subsidies, to cover the 96121
cost of providing the nonfederal match for active treatment 96122
services that the county provides to residents of the Department's 96123
developmental centers. The Director of Mental Retardation and 96124
Developmental Disabilities is authorized to transfer, through 96125
intrastate transfer vouchers, cash from these pledges from GRF 96126
appropriation item 322-501, County Boards Subsidies, to Fund 489, 96127
Mental Retardation Operating. Any other county funds received by 96128
the Department from county boards for active treatment shall be 96129
deposited in Fund 489, Mental Retardation Operating.96130

       WAIVER - MATCH96131

       The foregoing appropriation item 322-604, Waiver - Match 96132
(Fund 4K8), shall be used as state matching funds for the home and96133
community-based waivers.96134

       COUNTY BOARD WAIVER MATCH96135

       The Director of Mental Retardation and Developmental 96136
Disabilities shall transfer, through intrastate transfer vouchers, 96137
cash from any allowable General Revenue Fund appropriation item to 96138
Fund 5Z1, appropriation item 322-624, County Board Waiver Match. 96139
(The amounts being transferred reflect the amounts that county 96140
boards pledge from their state General Revenue Funds allocations 96141
to cover the cost of providing the non-federal match for waiver 96142
services.)96143

       TRANSFER OF FUNDS FOR THE FAMILY AND CHILDREN FIRST CABINET 96144
COUNCIL TO THE DEPARTMENT OF MENTAL HEALTH96145

       On July 1, 2005, or as soon as possible thereafter, the 96146
Director of Mental Retardation and Developmental Disabilities 96147
shall certify the remaining cash balance in Fund 4V1, 96148
Miscellaneous Use, to the Director of Budget and Management. Upon 96149
receipt of the certification, the Director of Budget and 96150
Management shall transfer that amount and re-establish existing 96151
encumbrances in the Department of Mental Health, Fund 232, Family 96152
and Children First Administration Fund. When this transfer has 96153
been completed, Fund 4V1 shall be abolished.96154

        On November 1, 2005, or as soon as possible thereafter, the 96155
Director of Mental Retardation and Developmental Disabilities 96156
shall certify the remaining cash balance in Fund 4J6, Youth 96157
Cluster, to the Director of Budget and Management, who upon 96158
receipt shall transfer that amount to the General Revenue Fund and 96159
increase the Department of Mental Health's GRF appropriation item 96160
335-404, Behavioral Health Services-Children, by the same amount. 96161
When this transfer has been completed, Fund 4J6 shall be 96162
abolished.96163

       Section 209.09.09.  COMMUNITY ALTERNATIVE FUNDING SYSTEM96164

       (A) As used in this section, "habilitation center services" 96165
has the same meaning as in former section 5111.041 of the Revised 96166
Code as that section existed on June 30, 2005.96167

        (B) The Department of Mental Retardation and Developmental 96168
Disabilities may use funds appropriated to the Department for the 96169
purpose of habilitation center services to satisfy a claim or 96170
contingent claim for habilitation center services provided before 96171
July 1, 2005, if the Department receives the claim or contingent 96172
claim before July 1, 2006. The Department has no liability to 96173
satisfy either of the following:96174

        (1) A claim for habilitation center services provided before 96175
July 1, 2005, if the Department receives the claim on or after 96176
July 1, 2006.96177

        (2) A claim for habilitation center services provided on or 96178
after July 1, 2005.96179

        (C) The Department of Mental Retardation and Developmental 96180
Disabilities may inform individuals who received habilitation 96181
center services under the community alternative funding system on 96182
June 30, 2005, and such individuals' representatives about 96183
alternative services that may be available for the individuals. 96184
The Department may require county boards of mental retardation and 96185
developmental disabilities to provide such information to the 96186
individuals and their representatives.96187

       Section 209.09.12.  DEVELOPMENTAL CENTER PROGRAM TO DEVELOP A96188
MODEL BILLING FOR SERVICES RENDERED96189

       Developmental centers of the Department of Mental Retardation96190
and Developmental Disabilities may provide services to persons96191
with mental retardation or developmental disabilities living in96192
the community or to providers of services to these persons. The96193
department may develop a method for recovery of all costs96194
associated with the provisions of these services.96195

       Section 209.09.15. TRANSFER OF FUNDS FOR DEVELOPMENTAL CENTER 96196
PHARMACY PROGRAMS96197

       The Department of Mental Retardation and Developmental 96198
Disabilities shall pay the Department of Job and Family Services 96199
quarterly, through intrastate transfer voucher, the nonfederal 96200
share of Medicaid prescription drug claim costs for all 96201
developmental centers paid by the Department of Job and Family 96202
Services.96203

       Section 209.09.16. TRANSFER OF ADMINISTRATION OF FAMILY AND 96204
CHILDREN FIRST96205

       The Department of Mental Retardation and Developmental 96206
Disabilities shall transfer the administrative duties related to 96207
the operation of the Ohio Family and Children First Cabinet 96208
Council to the Department of Mental Health. As part of the 96209
transfer, all of the following shall occur on July 1, 2005, or as 96210
soon as possible thereafter as the Departments of Mental 96211
Retardation and Developmental Disabilities and Mental Health are 96212
able to make the transfers:96213

       (A) Individuals employed by the Department of Mental 96214
Retardation and Developmental Disabilities on June 30, 2005, to 96215
perform administrative functions for the Ohio Family and Children 96216
First Cabinet Council shall be transferred to the Department of 96217
Mental Health.96218

       (B) The assets, liabilities, equipment, and records, 96219
irrespective of form or medium, related to the administrative 96220
duties of the Ohio Family and Children First Cabinet Council shall 96221
transfer or be transferred to the Department of Mental Health;96222

       (C) The Department of Mental Health shall assume the 96223
obligations of the Ohio Family and Children First Cabinet 96224
Council's administrative duties.96225

       Section 209.09.18.  RESIDENTIAL FACILITIES96226

General Revenue Fund96227

GRF 323-321 Residential Facilities $ 101,764,366 $ 100,457,600 96228
Operations 96229
TOTAL GRF General Revenue Fund $ 101,764,366 $ 100,457,600 96230

General Services Fund Group96231

152 323-609 Residential Facilities $ 912,177 $ 912,177 96232
Support 96233
TOTAL GSF General Services 96234
Fund Group $ 912,177 $ 912,177 96235

Federal Special Revenue Fund Group96236

3A4 323-605 Developmental Center Operation Expenses $ 120,000,000 $ 120,000,000 96237
325 323-608 Foster Grandparent Program $ 575,000 $ 575,000 96238
TOTAL FED Federal Special Revenue 96239
Fund Group $ 120,575,000 $ 120,575,000 96240

State Special Revenue Fund Group96241

221 322-620 Supplement Service Trust $ 150,000 $ 150,000 96242
489 323-632 Developmental Center Direct Care Support $ 12,125,628 $ 12,125,628 96243
TOTAL SSR State Special Revenue 96244
Fund Group $ 12,275,628 $ 12,275,628 96245
TOTAL ALL RESIDENTIAL FACILITIES 96246
BUDGET FUND GROUPS $ 235,527,171 $ 234,220,405 96247

DEPARTMENT TOTAL 96248
GENERAL REVENUE FUND $ 352,880,570 $ 353,397,967 96249
DEPARTMENT TOTAL 96250
GENERAL SERVICES FUND GROUP $ 2,202,177 $ 1,612,177 96251
DEPARTMENT TOTAL 96252
FEDERAL SPECIAL REVENUE FUND GROUP $ 652,727,850 $ 630,577,281 96253
DEPARTMENT TOTAL 96254
STATE SPECIAL REVENUE FUND GROUP $ 114,300,628 $ 114,300,628 96255
TOTAL DEPARTMENT OF MENTAL 96256
RETARDATION AND DEVELOPMENTAL 96257
DISABILITIES $ 1,122,111,225 $ 1,099,888,053 96258


       Section 209.09.21. (A) As used in this section:96260

       (1) "Family support services," "home and community-based 96261
services," "service and support administration," and "supported 96262
living" have the same meaning as in section 5126.01 of the Revised 96263
Code.96264

       (2) "Intermediate care facility for the mentally retarded" 96265
has the same meaning as in section 5111.20 of the Revised Code.96266

       (B) If one or more new beds obtain certification as an 96267
intermediate-care-facility-for-the-mentally-retarded bed on or 96268
after the effective date of this section, the Director of Mental 96269
Retardation and Developmental Disabilities shall transfer funds to 96270
the Department of Job and Family Services to pay the nonfederal 96271
share of the cost under the Medicaid Program for those beds. The 96272
Director shall use only the following funds for the transfer:96273

       (1) If the beds are located in a county served by a county 96274
board of mental retardation and developmental disabilities that 96275
does not initiate or support the beds' certification, funds 96276
appropriated to the Department of Mental Retardation and 96277
Developmental Disabilities for home and community-based services 96278
and supported living for which the Director is authorized to make 96279
allocations to county boards;96280

       (2) If the beds are located in a county served by a county 96281
board that initiates or supports the beds' certification, funds 96282
appropriated to the Department for family support services, 96283
service and support administration, and other services for which 96284
the Director is authorized to make allocations to counties.96285

       (C) The funds that the Director transfers under division 96286
(B)(2) of this section shall be funds that the Director has 96287
allocated to the county board serving the county in which the beds 96288
are located unless the amount of the allocation is insufficient to 96289
pay the entire nonfederal share of the cost under the Medicaid 96290
Program for those beds. If the allocation is insufficient, the 96291
Director shall use as much of such funds allocated to other 96292
counties as is needed to make up the difference.96293

       Section 209.09.24.  HABILITATION CENTERS PROVIDING MEDICAID 96294
CASE MANAGEMENT SERVICES96295

       A habilitation center holding on June 30, 2005, a valid 96296
certificate issued under former section 5123.041 of the Revised 96297
Code may provide Medicaid case management services until the 96298
earlier of the following:96299

        (A) The date the United States Secretary of Health and Human 96300
Services approves an amendment to the state Medicaid plan that 96301
provides that only county boards of mental retardation and 96302
developmental disabilities may provide Medicaid case management 96303
services;96304

        (B) The habilitation center ceases to meet the requirements 96305
that were in effect on June 30, 2005, for the certificate issued 96306
under former section 5123.041 of the Revised Code.96307

       Section 209.09.27. INTENT OF SECTION 5123.045 OF THE REVISED 96308
CODE96309

       (A) A person or government entity described in division (A) 96310
of section 5123.045 of the Revised Code shall not receive payment 96311
for home and community-based services unless both of the following 96312
are the case:96313

       (1) The individuals who receive the services reside with not 96314
more than three other individuals with mental retardation or an 96315
other developmental disability unless the individuals are related 96316
by blood or marriage. 96317

       (2) Except as provided in division (B) of this section, the 96318
person or government entity does not provide to the individuals 96319
who receive the services a residence and home and community-based 96320
services.96321

       (B) A person described in division (A) of section 5123.045 of 96322
the Revised Code may receive payment for home and community-based 96323
services and provide a residence to the individuals who receive 96324
the services if one of the following is the case:96325

       (1) The person lives in the residence and provides the 96326
services to not more than three individuals who reside in the 96327
residence at any one time.96328

       (2) The person is an association of family members related to 96329
two or more of the individuals who reside in the residence and 96330
provides the services to not more than four individuals who reside 96331
in the residence at any one time.96332

       Section 209.12.  MIH COMMISSION ON MINORITY HEALTH96333

General Revenue Fund96334

GRF 149-321 Operating Expenses $ 539,319 $ 539,319 96335
GRF 149-501 Minority Health Grants $ 670,965 $ 670,965 96336
GRF 149-502 Lupus Program $ 136,126 $ 136,126 96337
TOTAL GRF General Revenue Fund $ 1,346,410 $ 1,346,410 96338

Federal Special Revenue Fund Group96339

3J9 149-602 Federal Grants $ 150,000 $ 150,000 96340
TOTAL FED Federal Special Revenue 96341
Fund Group $ 150,000 $ 150,000 96342

State Special Revenue Fund Group96343

4C2 149-601 Minority Health Conference $ 250,000 $ 150,000 96344
TOTAL SSR State Special Revenue 96345
Fund Group $ 250,000 $ 150,000 96346
TOTAL ALL BUDGET FUND GROUPS $ 1,746,410 $ 1,646,410 96347

       LUPUS PROGRAM96348

       The foregoing appropriation item 149-502, Lupus Program,96349
shall be used to provide grants for programs in patient, public,96350
and professional education on the subject of systemic lupus96351
erythemtosus; to encourage and develop local centers on lupus96352
information gathering and screening; and to provide outreach to96353
minority women.96354

       Section 209.15.  CRB MOTOR VEHICLE COLLISION REPAIR96355
REGISTRATION BOARD96356

General Service Fund Group96357

5H9 865-609 Operating Expenses - CRB $ 325,047 $ 0 96358
TOTAL GSF General Services 96359
Fund Group $ 325,047 $ 0 96360
TOTAL ALL BUDGET FUND GROUPS $ 325,047 $ 0 96361


       Section 209.18.  DNR DEPARTMENT OF NATURAL RESOURCES96363

General Revenue Fund96364

GRF 725-401 Wildlife-GRF Central Support $ 1,000,000 $ 1,000,000 96365
GRF 725-404 Fountain Square Rental Payments - OBA $ 1,025,300 $ 1,092,000 96366
GRF 725-407 Conservation Reserve Enhancement Program $ 1,000,000 $ 1,000,000 96367
GRF 725-413 OPFC Lease Rental Payments $ 18,699,100 $ 20,962,800 96368
GRF 725-423 Stream and Ground Water Gauging $ 311,910 $ 311,910 96369
GRF 725-425 Wildlife License Reimbursement $ 646,319 $ 646,319 96370
GRF 725-456 Canal Lands $ 332,859 $ 332,859 96371
GRF 725-502 Soil and Water Districts $ 9,836,436 $ 9,836,436 96372
GRF 725-903 Natural Resources General Obligation Debt Service $ 25,866,000 $ 24,359,100 96373
GRF 727-321 Division of Forestry $ 8,541,511 $ 8,541,511 96374
GRF 728-321 Division of Geological Survey $ 1,630,000 $ 1,630,000 96375
GRF 729-321 Office of Information Technology $ 440,895 $ 440,895 96376
GRF 730-321 Division of Parks and Recreation $ 37,874,841 $ 39,874,841 96377
GRF 731-321 Office of Coastal Management $ 259,707 $ 259,707 96378
GRF 733-321 Division of Water $ 3,257,619 $ 3,207,619 96379
GRF 736-321 Division of Engineering $ 3,118,703 $ 3,118,703 96380
GRF 737-321 Division of Soil and Water $ 4,074,788 $ 4,074,788 96381
GRF 738-321 Division of Real Estate and Land Management $ 2,291,874 $ 2,291,874 96382
GRF 741-321 Division of Natural Areas and Preserves $ 3,009,505 $ 3,009,505 96383
GRF 744-321 Division of Mineral Resources Management $ 3,068,167 $ 3,068,167 96384
TOTAL GRF General Revenue Fund $ 126,285,534 $ 129,059,034 96385

General Services Fund Group96386

155 725-601 Departmental Projects $ 3,135,821 $ 3,011,726 96387
157 725-651 Central Support Indirect $ 6,528,675 $ 6,528,675 96388
204 725-687 Information Services $ 4,676,627 $ 4,676,627 96389
206 725-689 REALM Support Services $ 475,000 $ 475,000 96390
207 725-690 Real Estate Services $ 64,000 $ 64,000 96391
223 725-665 Law Enforcement Administration $ 2,096,225 $ 2,096,225 96392
227 725-406 Parks Projects Personnel $ 175,000 $ 110,000 96393
4D5 725-618 Recycled Materials $ 50,000 $ 50,000 96394
4S9 725-622 NatureWorks Personnel $ 472,648 $ 307,648 96395
4X8 725-662 Water Resources Council $ 125,000 $ 125,000 96396
430 725-671 Canal Lands $ 797,582 $ 847,582 96397
508 725-684 Natural Resources Publications $ 157,792 $ 157,792 96398
510 725-631 Maintenance - State-owned Residences $ 260,849 $ 260,849 96399
516 725-620 Water Management $ 2,442,956 $ 2,459,120 96400
635 725-664 Fountain Square Facilities Management $ 3,182,223 $ 3,190,223 96401
697 725-670 Submerged Lands $ 542,011 $ 542,011 96402
TOTAL GSF General Services 96403
Fund Group $ 25,182,409 $ 24,902,478 96404

Federal Special Revenue Fund Group96405

3B3 725-640 Federal Forest Pass-Thru $ 150,000 $ 150,000 96406
3B4 725-641 Federal Flood Pass-Thru $ 350,000 $ 350,000 96407
3B5 725-645 Federal Abandoned Mine Lands $ 14,310,497 $ 14,307,666 96408
3B6 725-653 Federal Land and Water Conservation Grants $ 5,000,000 $ 5,000,000 96409
3B7 725-654 Reclamation - Regulatory $ 2,107,292 $ 2,107,291 96410
3P0 725-630 Natural Areas and Preserves - Federal $ 315,000 $ 315,000 96411
3P1 725-632 Geological Survey - Federal $ 479,651 $ 479,651 96412
3P2 725-642 Oil and Gas-Federal $ 362,933 $ 367,912 96413
3P3 725-650 Coastal Management - Federal $ 1,592,923 $ 1,607,686 96414
3P4 725-660 Water - Federal $ 419,766 $ 420,525 96415
3R5 725-673 Acid Mine Drainage Abatement/Treatment $ 2,225,000 $ 2,225,000 96416
3Z5 725-657 REALM-Federal $ 1,578,871 $ 1,578,871 96417
328 725-603 Forestry Federal $ 1,813,827 $ 2,228,081 96418
332 725-669 Federal Mine Safety Grant $ 258,102 $ 258,102 96419
TOTAL FED Federal Special Revenue 96420
Fund Group $ 30,963,862 $ 31,395,785 96421

State Special Revenue Fund Group96422

4J2 725-628 Injection Well Review $ 93,957 $ 79,957 96423
4M7 725-631 Wildfire Suppression $ 100,000 $ 100,000 96424
4U6 725-668 Scenic Rivers Protection $ 407,100 $ 407,100 96425
5B3 725-674 Mining Regulation $ 28,850 $ 28,850 96426
5BV 725-683 Soil and Water Districts $ 1,850,000 $ 1,850,000 96427
5P2 725-634 Wildlife Boater Angler Administration $ 4,200,000 $ 3,500,000 96428
509 725-602 State Forest $ 2,291,664 $ 2,591,664 96429
511 725-646 Ohio Geological Mapping $ 549,310 $ 549,310 96430
512 725-605 State Parks Operations $ 26,814,288 $ 26,814,288 96431
512 725-680 Parks Facilities Maintenance $ 2,576,240 $ 2,576,240 96432
514 725-606 Lake Erie Shoreline $ 612,075 $ 657,113 96433
518 725-643 Oil and Gas Permit Fees $ 2,674,377 $ 2,674,378 96434
518 725-677 Oil and Gas Well Plugging $ 1,200,000 $ 1,200,000 96435
521 725-627 Off-Road Vehicle Trails $ 143,490 $ 143,490 96436
522 725-656 Natural Areas Checkoff Funds $ 1,550,670 $ 1,550,670 96437
526 725-610 Strip Mining Administration Fee $ 1,932,492 $ 1,932,492 96438
527 725-637 Surface Mining Administration $ 2,312,815 $ 2,322,702 96439
529 725-639 Unreclaimed Land Fund $ 623,356 $ 631,257 96440
531 725-648 Reclamation Forfeiture $ 2,061,861 $ 2,062,237 96441
532 725-644 Litter Control and Recycling $ 7,100,000 $ 7,100,000 96442
586 725-633 Scrap Tire Program $ 1,000,000 $ 1,000,000 96443
615 725-661 Dam Safety $ 365,223 $ 365,223 96444
TOTAL SSR State Special Revenue 96445
Fund Group $ 60,487,768 $ 60,136,971 96446

Clean Ohio Fund Group96447

061 725-405 Clean Ohio Operating $ 155,000 $ 155,000 96448
TOTAL CLF Clean Ohio Fund Group $ 155,000 $ 155,000 96449

Wildlife Fund Group96450

015 740-401 Division of Wildlife Conservation $ 49,447,500 $ 50,447,500 96451
815 725-636 Cooperative Management Projects $ 120,449 $ 120,449 96452
816 725-649 Wetlands Habitat $ 966,885 $ 966,885 96453
817 725-655 Wildlife Conservation Checkoff Fund $ 5,000,000 $ 5,000,000 96454
818 725-629 Cooperative Fisheries Research $ 1,500,000 $ 1,500,000 96455
819 725-685 Ohio River Management $ 128,584 $ 128,584 96456
TOTAL WLF Wildlife Fund Group $ 57,163,418 $ 58,163,418 96457

Waterways Safety Fund Group96458

086 725-414 Waterways Improvement $ 3,792,343 $ 3,792,343 96459
086 725-418 Buoy Placement $ 52,182 $ 52,182 96460
086 725-501 Waterway Safety Grants $ 137,867 $ 137,867 96461
086 725-506 Watercraft Marine Patrol $ 576,153 $ 576,153 96462
086 725-513 Watercraft Educational Grants $ 366,643 $ 366,643 96463
086 739-401 Division of Watercraft $ 20,027,909 $ 20,086,681 96464
5AW 725-682 Watercraft Revolving Loans $ 3,000,000 $ 1,000,000 96465
TOTAL WSF Waterways Safety Fund 96466
Group $ 27,953,097 $ 26,011,869 96467

Holding Account Redistribution Fund Group96468

R17 725-659 Performance Cash Bond Refunds $ 374,263 $ 374,263 96469
R43 725-624 Forestry $ 2,500,000 $ 1,500,000 96470
TOTAL 090 Holding Account 96471
Redistribution Fund Group $ 2,874,263 $ 1,874,263 96472

Accrued Leave Liability Fund Group96473

4M8 725-675 FOP Contract $ 20,844 $ 20,844 96474
TOTAL ALF Accrued Leave 96475
Liability Fund Group $ 20,844 $ 20,844 96476
TOTAL ALL BUDGET FUND GROUPS $ 331,086,195 $ 331,719,662 96477


       Section 209.18.03.  CENTRAL SUPPORT INDIRECT96479

        With the exception of the Division of Wildlife, whose direct 96480
and indirect central support charges shall be paid out of the 96481
General Revenue Fund from the foregoing appropriation item 96482
725-401, Wildlife-GRF Central Support, the Department of Natural 96483
Resources, with approval of the Director of Budget and Management, 96484
shall utilize a methodology for determining each division's 96485
payments into the Central Support Indirect Fund (Fund 157). The 96486
methodology used shall contain the characteristics of 96487
administrative ease and uniform application in compliance with 96488
federal grant requirements. It may include direct cost charges for 96489
specific services provided. Payments to the Central Support 96490
Indirect Fund (Fund 157) shall be made using an intrastate 96491
transfer voucher.96492

       Section 209.18.06. FOUNTAIN SQUARE96493

       The foregoing appropriation item 725-404, Fountain Square96494
Rental Payments - OBA, shall be used by the Department of Natural96495
Resources to meet all payments required to be made to the Ohio96496
Building Authority during the period from July 1, 2005, to June96497
30, 2007, pursuant to leases and agreements with the Ohio Building96498
Authority under section 152.241 of the Revised Code, but limited96499
to the aggregate amount of $2,117,300.96500

       The Director of Natural Resources, using intrastate transfer96501
vouchers, shall make payments to the General Revenue Fund from96502
funds other than the General Revenue Fund to reimburse the General96503
Revenue Fund for the other funds' shares of the lease rental96504
payments to the Ohio Building Authority. The transfers from the96505
non-General Revenue funds shall be made within 10 days of the96506
payment to the Ohio Building Authority for the actual amounts96507
necessary to fulfill the leases and agreements pursuant to section96508
152.241 of the Revised Code.96509

       The foregoing appropriation item 725-664, Fountain Square96510
Facilities Management (Fund 635), shall be used for payment of96511
repairs, renovation, utilities, property management, and building96512
maintenance expenses for the Fountain Square Complex. Cash96513
transferred by intrastate transfer vouchers from various96514
department funds and rental income received by the Department of96515
Natural Resources shall be deposited into the Fountain Square96516
Facilities Management Fund (Fund 635).96517

       LEASE RENTAL PAYMENTS96518

       The foregoing appropriation item 725-413, OPFC Lease Rental96519
Payments, shall be used to meet all payments at the times they are96520
required to be made during the period from July 1, 2005, to June96521
30, 2007, by the Department of Natural Resources pursuant to96522
leases and agreements made under section 154.22 of the Revised96523
Code, but limited to the aggregate amount of $50,375,100. Nothing96524
in this act shall be deemed to contravene the obligation of the96525
state to pay, without necessity for further appropriation, from96526
the sources pledged thereto, the bond service charges on96527
obligations issued pursuant to section 154.22 of the Revised Code.96528

       NATURAL RESOURCES GENERAL OBLIGATION DEBT SERVICE96529

       The foregoing appropriation item 725-903, Natural Resources96530
General Obligation Debt Service, shall be used to pay all debt96531
service and related financing costs at the times they are required 96532
to be made pursuant to sections 151.01 and 151.05 of the Revised 96533
Code during the period from July 1, 2005, to June 30, 2007. The 96534
Office of the Sinking Fund or the Director of Budget and 96535
Management shall effectuate the required payments by an intrastate 96536
transfer voucher.96537

       Section 209.18.09. WILDLIFE LICENSE REIMBURSEMENT96538

       Notwithstanding the limits of the transfer from the General96539
Revenue Fund to the Wildlife Fund, as adopted in section 1533.1596540
of the Revised Code, up to the amount available in appropriation96541
item 725-425, Wildlife License Reimbursement, may be transferred96542
from the General Revenue Fund to the Wildlife Fund (Fund 015).96543
Pursuant to the certification of the Director of Budget and96544
Management of the amount of foregone revenue in accordance with96545
section 1533.15 of the Revised Code, the foregoing appropriation96546
item in the General Revenue Fund, appropriation item 725-425,96547
Wildlife License Reimbursement, shall be used to reimburse the96548
Wildlife Fund (Fund 015) for the cost of hunting and fishing96549
licenses and permits issued after June 30, 1990, to individuals96550
who are exempted under the Revised Code from license, permit, and96551
stamp fees.96552

       CANAL LANDS96553

       The foregoing appropriation item 725-456, Canal Lands, shall96554
be used to transfer funds to the Canal Lands Fund (Fund 430) to96555
provide operating expenses for the State Canal Lands Program. The96556
transfer shall be made using an intrastate transfer voucher and96557
shall be subject to the approval of the Director of Budget and96558
Management.96559

       SOIL AND WATER DISTRICTS96560

       In addition to state payments to soil and water conservation96561
districts authorized by section 1515.10 of the Revised Code, the96562
Department of Natural Resources may pay to any soil and water96563
conservation district, from authority in appropriation item96564
725-502, Soil and Water Districts, an annual amount not to exceed96565
$30,000, upon receipt of a request and justification from the96566
district and approval by the Ohio Soil and Water Conservation96567
Commission. The county auditor shall credit the payments to the96568
special fund established under section 1515.10 of the Revised Code96569
for the local soil and water conservation district. Moneys96570
received by each district shall be expended for the purposes of96571
the district. The foregoing appropriation item 725-683, Soil and 96572
Water Districts, shall be expended for the purposes described 96573
above, except that the funding source for this appropriation shall 96574
be a fee applied on the disposal of construction and demolition 96575
debris as provided in section 1515.14 of the Revised Code, as 96576
amended by this act.96577

       Of the foregoing appropriation item 725-502, Soil and Water 96578
Districts, $25,000 in each fiscal year shall be used for the 96579
Conservation Action Project.96580

       Of the foregoing appropriation item, 725-683, Soil and Water 96581
Districts, $200,000 in each fiscal year shall be used to support 96582
the Heidelberg College Water Quality Laboratory.96583

       Of the foregoing appropriation item 725-683, Soil and Water 96584
Districts, $100,000 in each fiscal year shall be used to support 96585
the Muskingum Watershed Conservancy District.96586

       Of the foregoing appropriation item 725-683, Soil and Water 96587
Districts, $100,000 in each fiscal year shall be used to support 96588
the Indian Lake Watershed in Logan County.96589

       DIVISION OF WATER96590

       Of the foregoing appropriation item 733-321, Division of 96591
Water, $50,000 in fiscal year 2006 shall be used for the Fairport 96592
Harbor Port Authority boat launch in Lake County.96593

       FUND CONSOLIDATION96594

       The Director of Budget and Management shall transfer an 96595
amount certified by the Director of Natural Resources from the 96596
Central Support Indirect Fund (Fund 157) to the Law Enforcement 96597
Administration Fund (Fund 223) and the Information Services Fund 96598
(Fund 204) to implement a direct cost recovery plan.96599

       STATE PARK DEPRECIATION RESERVE96600

        The foregoing appropriation item 725-680, Parks Facilities 96601
Maintenance, shall be used by the Division of Parks and Recreation 96602
to maintain state park revenue producing facilities in the best 96603
economic operating condition and to repair and replace equipment 96604
used in the operation of state park revenue producing facilities.96605

        Upon certification of the Director of Natural Resources, the 96606
Director of Budget and Management shall transfer the cash balance 96607
in the Depreciation Reserve Fund (Fund 161), which is abolished in 96608
section 1541.221 of the Revised Code, as amended by this act, to 96609
the State Park Fund (Fund 512), which is created in section 96610
1541.22 of the Revised Code. All outstanding encumbrances shall be 96611
cancelled on October 1, 2005.96612

       OIL AND GAS WELL PLUGGING96613

       The foregoing appropriation item 725-677, Oil and Gas Well96614
Plugging, shall be used exclusively for the purposes of plugging96615
wells and to properly restore the land surface of idle and orphan96616
oil and gas wells pursuant to section 1509.071 of the Revised96617
Code. No funds from the appropriation item shall be used for96618
salaries, maintenance, equipment, or other administrative96619
purposes, except for those costs directly attributed to the96620
plugging of an idle or orphan well. Appropriation authority from96621
this appropriation item shall not be transferred to any other fund 96622
or line item.96623

       LITTER CONTROL AND RECYCLING96624

       Of the foregoing appropriation item, 725-644, Litter Control 96625
and Recycling, not more than $1,500,000 may be used in each fiscal 96626
year for the administration of the Recycling and Litter Prevention 96627
program.96628

       CLEAN OHIO OPERATING EXPENSES96629

       The foregoing appropriation item 725-405, Clean Ohio 96630
Operating, shall be used by the Department of Natural Resources in 96631
administering section 1519.05 of the Revised Code.96632

       WATERCRAFT MARINE PATROL96633

       Of the foregoing appropriation item 739-401, Division of96634
Watercraft, not more than $200,000 in each fiscal year shall be96635
expended for the purchase of equipment for marine patrols96636
qualifying for funding from the Department of Natural Resources96637
pursuant to section 1547.67 of the Revised Code. Proposals for96638
equipment shall accompany the submission of documentation for96639
receipt of a marine patrol subsidy pursuant to section 1547.67 of96640
the Revised Code and shall be loaned to eligible marine patrols96641
pursuant to a cooperative agreement between the Department of96642
Natural Resources and the eligible marine patrol.96643

       WATERCRAFT REVOLVING LOAN PROGRAM96644

        Upon certification by the Director of Natural Resources, the 96645
Director of Budget and Management shall transfer an amount not to 96646
exceed $3,000,000 in fiscal year 2006 and not to exceed $1,000,000 96647
in fiscal year 2007 so certified from the Waterways Safety Fund 96648
(Fund 086) to the Watercraft Revolving Loans Fund (Fund 5AW). The 96649
moneys shall be used pursuant to section 1547.721 of the Revised 96650
Code.96651

       PARKS CAPITAL EXPENSES FUND96652

        There is hereby created in the state treasury the Parks 96653
Capital Expenses Fund (Fund 227). The fund shall be used to pay 96654
for design, engineering, and planning costs incurred by the 96655
Department of Natural Resources for capital parks projects.96656

        The Director of Natural Resources shall submit to the 96657
Director of Budget and Management the estimated design, 96658
engineering, and planning costs of capital-related work to be done 96659
by Department of Natural Resources staff for parks projects. If 96660
the Director of Budget and Management approves the estimated 96661
costs, the Director may release appropriations from appropriation 96662
item 725-406, Parks Projects Personnel, for those purposes. Upon 96663
release of the appropriations, the Department of Natural Resources 96664
shall pay for these expenses from the Parks Capital Expenses Fund 96665
(Fund 227). Expenses paid from Fund 227 shall be reimbursed by the 96666
Parks and Recreation Improvement Fund (Fund 035) using an 96667
intrastate transfer voucher. 96668

       Section 209.21.  NUR STATE BOARD OF NURSING96669

General Services Fund Group96670

4K9 884-609 Operating Expenses $ 5,661,280 $ 5,661,280 96671
5P8 884-601 Nursing Special Issues $ 5,000 $ 5,000 96672
TOTAL GSF General Services 96673
Fund Group $ 5,666,280 $ 5,666,280 96674
TOTAL ALL BUDGET FUND GROUPS $ 5,666,280 $ 5,666,280 96675

       NURSING SPECIAL ISSUES96676

       The foregoing appropriation item 884-601, Nursing Special96677
Issues (Fund 5P8), shall be used to pay the costs the Board of96678
Nursing incurs in implementing section 4723.062 of the Revised96679
Code.96680

       Section 209.24. PYT OCCUPATIONAL THERAPY, PHYSICAL THERAPY, 96681
AND ATHLETIC TRAINERS BOARD96682

General Services Fund Group96683

4K9 890-609 Operating Expenses $ 824,057 $ 0 96684
TOTAL GSF General Services Fund Group $ 824,057 $ 0 96685
TOTAL ALL BUDGET FUND GROUPS $ 824,057 $ 0 96686


       Section 209.27. OLA OHIOANA LIBRARY ASSOCIATION96688

General Revenue Fund96689

GRF 355-501 Library Subsidy $ 200,000 $ 200,000 96690
TOTAL GRF General Revenue Fund $ 200,000 $ 200,000 96691
TOTAL ALL BUDGET FUND GROUPS $ 200,000 $ 200,000 96692


       Section 209.30.  ODB OHIO OPTICAL DISPENSERS BOARD96694

General Services Fund Group96695

4K9 894-609 Operating Expenses $ 316,517 $ 0 96696
TOTAL GSF General Services 96697
Fund Group $ 316,517 $ 0 96698
TOTAL ALL BUDGET FUND GROUPS $ 316,517 $ 0 96699


       Section 209.33.  OPT STATE BOARD OF OPTOMETRY96701

General Services Fund Group96702

4K9 885-609 Operating Expenses $ 336,771 $ 0 96703
TOTAL GSF General Services 96704
Fund Group $ 336,771 $ 0 96705
TOTAL ALL BUDGET FUND GROUPS $ 336,771 $ 0 96706


       Section 209.36.  OPP STATE BOARD OF ORTHOTICS, PROSTHETICS, 96708
AND PEDORTHICS96709

General Services Fund Group96710

4K9 973-609 Operating Expenses $ 99,571 $ 0 96711
TOTAL GSF General Services 96712
Fund Group $ 99,571 $ 0 96713
TOTAL ALL BUDGET FUND GROUPS $ 99,571 $ 0 96714

       Section 209.39.  PBR STATE PERSONNEL BOARD OF REVIEW96715

General Revenue Fund96716

GRF 124-321 Operating $ 1,116,170 $ 1,148,000 96717
TOTAL GRF General Revenue Fund $ 1,116,170 $ 1,148,000 96718

General Services Fund Group96719

636 124-601 Transcript and Other $ 12,000 $ 15,000 96720
TOTAL GSF General Services 96721
Fund Group $ 12,000 $ 15,000 96722
TOTAL ALL BUDGET FUND GROUPS $ 1,128,170 $ 1,163,000 96723

       TRANSCRIPT AND OTHER96724

       The foregoing appropriation item 124-601, Transcript and96725
Other, may be used to defray the costs of producing an 96726
administrative record.96727

       Section 209.42.  PRX STATE BOARD OF PHARMACY96728

General Services Fund Group96729

4A5 887-605 Drug Law Enforcement $ 75,550 $ 75,550 96730
4K9 887-609 Operating Expenses $ 5,650,537 $ 5,400,537 96731
TOTAL GSF General Services 96732
Fund Group $ 5,726,087 $ 5,476,087 96733
TOTAL ALL BUDGET FUND GROUPS $ 5,726,087 $ 5,476,087 96734


       Section 209.45.  PSY STATE BOARD OF PSYCHOLOGY96736

General Services Fund Group96737

4K9 882-609 Operating Expenses $ 566,112 $ 0 96738
TOTAL GSF General Services 96739
Fund Group $ 566,112 $ 0 96740
TOTAL ALL BUDGET FUND GROUPS $ 566,112 $ 0 96741


       Section 209.48.  PUB OHIO PUBLIC DEFENDER COMMISSION96743

General Revenue Fund96744

GRF 019-321 Public Defender Administration $ 1,295,570 $ 1,262,439 96745
GRF 019-401 State Legal Defense Services $ 5,744,601 $ 5,704,117 96746
GRF 019-403 Multi-County: State Share $ 823,620 $ 823,620 96747
GRF 019-404 Trumbull County - State Share $ 256,380 $ 256,380 96748
GRF 019-405 Training Account $ 31,324 $ 31,324 96749
GRF 019-501 County Reimbursement $ 30,000,000 $ 30,000,000 96750
TOTAL GRF General Revenue Fund $ 38,151,495 $ 38,077,880 96751

General Services Fund Group96752

101 019-602 Inmate Legal Assistance $ 53,086 $ 32,338 96753
406 019-603 Training and Publications $ 16,000 $ 16,000 96754
407 019-604 County Representation $ 186,146 $ 188,810 96755
408 019-605 Client Payments $ 614,027 $ 762,106 96756
TOTAL GSF General Services 96757
Fund Group $ 869,259 $ 999,254 96758

Federal Special Revenue Fund Group96759

3S8 019-608 Federal Representation $ 380,484 $ 315,287 96760
TOTAL FED Federal Special Revenue 96761
Fund Group $ 380,484 $ 315,287 96762

State Special Revenue Fund Group96763

4C7 019-601 Multi-County: County Share $ 2,028,309 $ 2,104,367 96764
4X7 019-610 Trumbull County - County Share $ 642,106 $ 665,860 96765
574 019-606 Legal Services Corporation $ 16,575,000 $ 21,300,000 96766
5CX 019-617 Civil Case Filing Fee $ 417,600 $ 556,800 96767
TOTAL SSR State Special Revenue 96768
Fund Group $ 19,663,015 $ 24,627,027 96769
TOTAL ALL BUDGET FUND GROUPS $ 59,064,253 $ 64,019,448 96770

       INDIGENT DEFENSE OFFICE96771

       The foregoing appropriation items 019-404, Trumbull County -96772
State Share, and 019-610, Trumbull County - County Share, shall be96773
used to support an indigent defense office for Trumbull County.96774

       MULTI-COUNTY OFFICE96775

       The foregoing appropriation items 019-403, Multi-County:96776
State Share, and 019-601, Multi-County: County Share, shall be96777
used to support the Office of the Ohio Public Defender's96778
Multi-County Branch Office Program.96779

       TRAINING ACCOUNT96780

       The foregoing appropriation item 019-405, Training Account,96781
shall be used by the Ohio Public Defender to provide legal96782
training programs at no cost for private appointed counsel who96783
represent at least one indigent defendant at no cost and for state 96784
and county public defenders and attorneys who contract with the 96785
Ohio Public Defender to provide indigent defense services.96786

       FEDERAL REPRESENTATION96787

       The foregoing appropriation item 019-608, Federal96788
Representation, shall be used to receive reimbursements from the96789
federal courts when the Ohio Public Defender provides96790
representation in federal court cases and to support 96791
representation in such cases.96792

       Section 209.51. DHS DEPARTMENT OF PUBLIC SAFETY96793

General Revenue Fund96794

GRF 763-403 Operating Expenses - EMA $ 4,164,697 $ 4,164,697 96795
GRF 763-507 Individual and Households Program - State $ 650,000 $ 650,000 96796
GRF 768-424 Operating Expenses - CJS $ 965,899 $ 1,276,192 96797
GRF 769-321 Food Stamp Trafficking Enforcement Operations $ 752,000 $ 752,000 96798
TOTAL GRF General Revenue Fund $ 6,532,596 $ 6,842,889 96799

General Services Fund Group96800

4P6 768-601 Justice Program Services $ 100,000 $ 100,000 96801
TOTAL GSF General Services Fund Group $ 100,000 $ 100,000 96802

Federal Special Revenue Fund Group96803

3AY 768-606 Federal Justice Grants $ 11,200,000 $ 11,500,000 96804
3L5 768-604 Justice Program $ 31,019,750 $ 25,214,623 96805
3V8 768-605 Federal Program Purposes FFY01 $ 50,000 $ 0 96806
TOTAL FED Federal Special Revenue Fund Group $ 42,269,750 $ 36,714,623 96807

State Special Revenue Fund Group96808

5BK 768-689 Family Violence Shelter Programs $ 500,000 $ 650,000 96809
5B9 766-632 PI & Security Guard Provider $ 1,188,716 $ 1,188,716 96810
5CC 768-607 Public Safety Services $ 375,000 $ 325,000 96811
TOTAL SSR State Special Revenue Fund Group $ 2,063,716 $ 2,163,716 96812

TOTAL ALL BUDGET FUND GROUPS $ 50,966,062 $ 45,821,228 96813

       OHIO TASK FORCE ONE - URBAN SEARCH AND RESCUE UNIT96814

       Of the foregoing appropriation item 763-403, Operating96815
Expenses - EMA, $200,000 in each fiscal year shall be used to fund96816
the Ohio Task Force One - Urban Search and Rescue Unit and other96817
urban search and rescue programs around the state to create a96818
stronger search and rescue capability statewide.96819

       INDIVIDUAL AND HOUSEHOLDS GRANTS STATE MATCH96820

       The foregoing appropriation item 763-507, Individual and96821
Households Program - State, shall be used to fund the state share 96822
of costs to provide grants to individuals and households in cases 96823
of disaster.96824

       TRANSFER OF THE OFFICE OF CRIMINAL JUSTICE SERVICES TO THE 96825
DEPARTMENT OF PUBLIC SAFETY96826

        (A) On July 1, 2005:96827

       (1) The Office of Criminal Justice Services shall cease to 96828
exist. Subject to the layoff provisions of sections 124.321 to 96829
124.328 of the Revised Code, the employees of the Office of 96830
Criminal Justice Services who were employed by that Office on June 96831
30, 2005, are transferred on that date to the Department of Public 96832
Safety. The vehicles and equipment assigned to those employees are 96833
transferred to the Department of Public Safety.96834

       (2) The assets, liabilities, other equipment not provided 96835
for, and records, irrespective of form or medium, of the Office of 96836
Criminal Justice Services are transferred to the Division of 96837
Criminal Justice Services. The Division of Criminal Justice 96838
Services is the successor to, assumes the obligations of, and 96839
otherwise constitutes the continuation of the Office of Criminal 96840
Justice Services.96841

       (3) Business commenced but not completed by the Office of 96842
Criminal Justice Services on July 1, 2005, shall be completed by 96843
the Division of Criminal Justice Services, in the same manner, and 96844
with the same effect, as if completed by the Office of Criminal 96845
Justice Services. No validation, cure, right, privilege, remedy, 96846
obligation, or liability is lost or impaired by reason of the 96847
transfer required by this section but shall be administered by the 96848
Division of Criminal Justice Services.96849

       (4) The rules, orders, and determinations pertaining to the 96850
Office of Criminal Justice Services continue in effect as rules, 96851
orders, and determinations of the Division of Criminal Justice 96852
Services until modified or rescinded by that Division.96853

       (5) No judicial or administrative action or proceeding 96854
pending on July 1, 2005, is affected by the transfer of functions 96855
from the Office of Criminal Justice Services to the Division of 96856
Criminal Justice Services and shall be prosecuted or defended in 96857
the name of the Executive Director or Division of Criminal Justice 96858
Services. On application to the court or other tribunal, the 96859
Executive Director or Division of Criminal Justice Services shall 96860
be substituted as a party in those actions and proceedings.96861

       (6) When the Director or Office of Criminal Justice Services 96862
is referred to in any statute, rule, contract, grant, or other 96863
document, the reference is hereby deemed to refer to the Executive 96864
Director or Division of Criminal Justice Services.96865

       (B) On and after July 1, 2005, if necessary to ensure the 96866
integrity of the numbering of the Administrative Code, the 96867
Director of the Legislative Service Commission shall renumber the 96868
rules of the Office of Criminal Justice Services to reflect their 96869
transfer to the Division of Criminal Justice Services in the 96870
Department of Public Safety.96871

       (C) On and after July 1, 2005, notwithstanding any provision 96872
of law to the contrary, the Director of Budget and Management is 96873
authorized to take the actions described in this section with 96874
respect to budget changes made necessary by administrative 96875
reorganization, program transfers, the creation of new funds, and 96876
the consolidation of funds as authorized by this act. The Director 96877
may make any transfer of cash balances between funds. At the 96878
request of the Director of Budget and Management, the 96879
administering agency head shall certify to the Director an 96880
estimate of the amount of the cash balance to be transferred to 96881
the receiving fund. The Director may transfer the estimated amount 96882
when needed to make payments. Not more than thirty days after 96883
certifying the estimated amount, the administering agency head 96884
shall certify the final amount to the Director. The Director shall 96885
transfer the difference between any amount previously transferred 96886
and the certified final amount. The Director may cancel 96887
encumbrances and re-establish encumbrances or parts of 96888
encumbrances as needed in fiscal year 2006 in the appropriate fund 96889
and appropriation item for the same purpose and to the same 96890
vendor. As determined by the Director, the appropriation authority 96891
necessary to re-establish those encumbrances in fiscal year 2006 96892
in a different fund or appropriation item within an agency or 96893
between agencies is hereby authorized. The Director shall reduce 96894
each year's appropriation balances by the amount of the 96895
encumbrances canceled in their respective funds and appropriation 96896
items. Any fiscal year 2005 unencumbered or unallocated 96897
appropriation balances may be transferred to the appropriate item 96898
to be used for the same purposes, as determined by the Director.96899

       (D) Any advisory committees appointed by the Governor to 96900
assist the Office of Criminal Justice Services pursuant to section 96901
181.53 and existing on June 30, 2005, shall continue to exist as 96902
advisory committees to the Division of Criminal Justice Services 96903
in the Department of Public Safety beginning on July 1, 2005, 96904
subject to section 121.13 of the Revised Code.96905

       TRANSFER OF FAMILY VIOLENCE PREVENTION CENTER96906

       The Family Violence Prevention Center is transferred from the 96907
Office of Criminal Justice Services to the Department of Public 96908
Safety. The Family Violence Prevention Center shall operate as 96909
part of the Division of Criminal Justice Services in the 96910
Department of Public Safety in the same manner as it operated 96911
under the Office of Criminal Justice Services.96912

       STATE FIRE MARSHAL'S FUND CASH TRANSFERS FOR PUBLIC SAFETY 96913
SERVICES96914

        Notwithstanding section 3737.71 of the Revised Code, in 96915
fiscal year 2006, the Director of Budget and Management shall 96916
transfer $375,000 in cash from the Department of Commerce's State 96917
Fire Marshal's Fund (Fund 546) to the Department of Public 96918
Safety's Public Safety Services Fund (Fund 5CC), which is hereby 96919
created in the state treasury, and in fiscal year 2007, the 96920
Director of Budget and Management shall transfer $325,000 in cash 96921
from the Department of Commerce's State Fire Marshal's Fund (Fund 96922
546) to the Department of Public Safety's Public Safety Services 96923
Fund (Fund 5CC).96924

        Of the foregoing appropriation item 768-607, Public Safety 96925
Services, $100,000 in fiscal year 2006 and $200,000 in fiscal year 96926
2007 shall be distributed by the Department of Public Safety's 96927
Division of Criminal Justice Services to the City of Warren to 96928
assist the city in providing essential public safety services to 96929
its citizens.96930

       Of the foregoing appropriation item 768-607, Public Safety 96931
Services, $125,000 in each fiscal year shall be distributed by the 96932
Department of Public Safety's Division of Criminal Justice 96933
Services directly to the Southern Ohio Drug Task Force.96934

       Of the foregoing appropriation item 768-607, Public Safety 96935
Services, $150,000 in fiscal year 2006 shall be distributed by the 96936
Department of Public Safety's Division of Criminal Justice 96937
Services to the City of Eastlake to assist the city in providing 96938
essential public safety services to its citizens.96939

       Section 209.54.  PUC PUBLIC UTILITIES COMMISSION OF OHIO96940

General Services Fund Group96941

5F6 870-622 Utility and Railroad Regulation $ 31,272,222 $ 31,272,223 96942
5F6 870-624 NARUC/NRRI Subsidy $ 167,233 $ 167,233 96943
5F6 870-625 Motor Transportation Regulation $ 5,361,239 $ 5,361,238 96944
TOTAL GSF General Services 96945
Fund Group $ 36,800,694 $ 36,800,694 96946

Federal Special Revenue Fund Group96947

3V3 870-604 Commercial Vehicle Information Systems/Networks $ 300,000 $ 300,000 96948
333 870-601 Gas Pipeline Safety $ 597,957 $ 597,957 96949
350 870-608 Motor Carrier Safety $ 7,027,712 $ 7,027,712 96950
TOTAL FED Federal Special Revenue 96951
Fund Group $ 7,925,669 $ 7,925,669 96952

State Special Revenue Fund Group96953

4A3 870-614 Grade Crossing Protection Devices-State $ 1,349,757 $ 1,349,757 96954
4L8 870-617 Pipeline Safety-State $ 187,621 $ 187,621 96955
4S6 870-618 Hazardous Material Registration $ 464,325 $ 464,325 96956
4S6 870-621 Hazardous Materials Base State Registration $ 373,346 $ 373,346 96957
4U8 870-620 Civil Forfeitures $ 284,986 $ 284,986 96958
5BP 870-623 Wireless 911 Administration $ 650,000 $ 375,000 96959
559 870-605 Public Utilities Territorial Administration $ 4,000 $ 4,000 96960
560 870-607 Special Assessment $ 100,000 $ 100,000 96961
561 870-606 Power Siting Board $ 337,210 $ 337,210 96962
638 870-611 Biomass Energy Program $ 40,000 $ 40,000 96963
661 870-612 Hazardous Materials Transportation $ 900,000 $ 900,000 96964
TOTAL SSR State Special Revenue 96965
Fund Group $ 4,691,245 $ 4,416,245 96966

Agency Fund Group96967

4G4 870-616 Base State Registration Program $ 5,600,000 $ 5,600,000 96968
TOTAL AGY Agency Fund Group $ 5,600,000 $ 5,600,000 96969
TOTAL ALL BUDGET FUND GROUPS $ 55,017,608 $ 54,742,608 96970

       COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS PROJECT96971

       The Commercial Vehicle Information Systems and Networks Fund 96972
is hereby created in the state treasury. The fund shall receive 96973
funding from the United States Department of Transportation's 96974
Commercial Vehicle Intelligent Transportation System 96975
Infrastructure Deployment Program and shall be used to deploy the 96976
Ohio Commercial Vehicle Information Systems and Networks Project 96977
and to expedite and improve the safety of motor carrier operations 96978
through electronic exchange of data by means of on-highway 96979
electronic systems.96980

       ENHANCED AND WIRELESS ENHANCED 9-1-196981

       The foregoing appropriation item 870-623, Wireless 911 96982
Administration, shall be used pursuant to section 4931.63 of the 96983
Revised Code.96984

       Section 209.57. PWC PUBLIC WORKS COMMISSION96985

General Revenue Fund96986

GRF 150-904 Conservation General Obligation Debt Service $ 13,687,300 $ 17,168,800 96987
GRF 150-907 State Capital Improvements $ 160,731,400 $ 172,145,100 96988
General Obligation Debt Service 96989
TOTAL GRF General Revenue Fund $ 174,418,700 $ 189,313,900 96990

Clean Ohio Fund Group96991

056 150-403 Clean Ohio Operating Expenses $ 298,245 $ 311,509 96992
TOTAL 056 Clean Ohio Fund Group $ 298,245 $ 311,509 96993
TOTAL ALL BUDGET FUND GROUPS $ 174,716,945 $ 189,625,409 96994

       CONSERVATION GENERAL OBLIGATION DEBT SERVICE96995

       The foregoing appropriation item 150-904, Conservation96996
General Obligation Debt Service, shall be used to pay all debt96997
service and related financing costs at the times they are required 96998
to be made under sections 151.01 and 151.09 of the Revised Code 96999
during the period from July 1, 2005, to June 30, 2007. The Office 97000
of the Sinking Fund or the Director of Budget and Management shall 97001
effectuate the required payments by intrastate transfer voucher.97002

       STATE CAPITAL IMPROVEMENTS GENERAL OBLIGATION DEBT SERVICE97003

       The foregoing appropriation item 150-907, State Capital97004
Improvements General Obligation Debt Service, shall be used to pay97005
all debt service and related financing costs at the times they are97006
required to be made under sections 151.01 and 151.08 of the 97007
Revised Code during the period from July 1, 2005, to June 30, 97008
2007. The Office of the Sinking Fund or the Director of Budget and 97009
Management shall effectuate the required payments by intrastate 97010
transfer voucher.97011

       REIMBURSEMENT TO THE GENERAL REVENUE FUND97012

        (A) On or before June 1, 2007, the Director of the Public 97013
Works Commission shall certify to the Director of Budget and 97014
Management the following:97015

        (1) The total amount disbursed from appropriation item 97016
700-409, Farmland Preservation, during the 2005-2007 biennium; and97017

        (2) The amount of interest earnings that have been credited 97018
to the Clean Ohio Conservation Fund (Fund 056) that are in excess 97019
of the amount needed for other purposes as calculated by the 97020
Director of the Public Works Commission.97021

        (B) If the Director of Budget and Management determines under 97022
division (A)(2) of this section that there are excess interest 97023
earnings, the Director of Budget and Management shall, on or 97024
before June 1, 2007, transfer the excess interest earnings to the 97025
General Revenue Fund in an amount equal to the total amount 97026
disbursed under division (A)(1) of this section from the Clean 97027
Ohio Conservation Fund.97028

       CLEAN OHIO OPERATING EXPENSES97029

       The foregoing appropriation item 150-403, Clean Ohio 97030
Operating Expenses, shall be used by the Ohio Public Works 97031
Commission in administering sections 164.20 to 164.27 of the 97032
Revised Code.97033

       Section 209.60.  RAC STATE RACING COMMISSION97034

State Special Revenue Fund Group97035

5C4 875-607 Simulcast Horse Racing Purse $ 17,061,489 $ 17,063,948 97036
562 875-601 Thoroughbred Race Fund $ 4,642,378 $ 4,642,378 97037
563 875-602 Standardbred Development Fund $ 3,161,675 $ 3,161,675 97038
564 875-603 Quarterhorse Development Fund $ 2,000 $ 2,000 97039
565 875-604 Racing Commission Operating $ 4,000,000 $ 4,000,000 97040
TOTAL SSR State Special Revenue 97041
Fund Group $ 28,867,542 $ 28,870,001 97042

Holding Account Redistribution Fund Group97043

R21 875-605 Bond Reimbursements $ 212,900 $ 212,900 97044
TOTAL 090 Holding Account Redistribution 97045
Fund Group $ 212,900 $ 212,900 97046
TOTAL ALL BUDGET FUND GROUPS $ 29,080,442 $ 29,082,901 97047


       Section 209.63.  BOR BOARD OF REGENTS97049

General Revenue Fund97050

GRF 235-321 Operating Expenses $ 2,897,659 $ 2,966,351 97051
GRF 235-401 Lease Rental Payments $ 200,619,200 $ 200,795,300 97052
GRF 235-402 Sea Grants $ 231,925 $ 231,925 97053
GRF 235-406 Articulation and Transfer $ 2,900,000 $ 2,900,000 97054
GRF 235-408 Midwest Higher Education Compact $ 90,000 $ 90,000 97055
GRF 235-409 Information System $ 1,146,510 $ 1,175,172 97056
GRF 235-414 State Grants and Scholarship Administration $ 1,352,811 $ 1,382,881 97057
GRF 235-415 Jobs Challenge $ 9,348,300 $ 9,348,300 97058
GRF 235-417 Ohio Learning Network $ 3,119,496 $ 3,119,496 97059
GRF 235-418 Access Challenge $ 73,513,302 $ 73,004,671 97060
GRF 235-420 Success Challenge $ 52,601,934 $ 52,601,934 97061
GRF 235-428 Appalachian New Economy Partnership $ 1,176,068 $ 1,176,068 97062
GRF 235-433 Economic Growth Challenge $ 20,343,097 $ 23,186,194 97063
GRF 235-434 College Readiness and Access $ 6,375,975 $ 7,655,425 97064
GRF 235-435 Teacher Improvement Initiatives $ 2,697,506 $ 2,697,506 97065
GRF 235-451 Eminent Scholars $ 0 $ 1,370,988 97066
GRF 235-455 EnterpriseOhio Network $ 1,373,941 $ 1,373,941 97067
GRF 235-474 Area Health Education Centers Program Support $ 1,571,756 $ 1,571,756 97068
GRF 235-501 State Share of Instruction $ 1,559,096,031 $ 1,589,096,031 97069
GRF 235-502 Student Support Services $ 795,790 $ 795,790 97070
GRF 235-503 Ohio Instructional Grants $ 121,151,870 $ 92,496,969 97071
GRF 235-504 War Orphans Scholarships $ 4,672,321 $ 4,672,321 97072
GRF 235-507 OhioLINK $ 6,887,824 $ 6,887,824 97073
GRF 235-508 Air Force Institute of Technology $ 1,925,345 $ 1,925,345 97074
GRF 235-510 Ohio Supercomputer Center $ 4,271,195 $ 4,271,195 97075
GRF 235-511 Cooperative Extension Service $ 25,644,863 $ 25,644,863 97076
GRF 235-513 Ohio University Voinovich Center $ 336,082 $ 336,082 97077
GRF 235-515 Case Western Reserve University School of Medicine $ 3,011,271 $ 3,011,271 97078
GRF 235-518 Capitol Scholarship Program $ 125,000 $ 125,000 97079
GRF 235-519 Family Practice $ 4,548,470 $ 4,548,470 97080
GRF 235-520 Shawnee State Supplement $ 1,918,830 $ 1,822,889 97081
GRF 235-521 The Ohio State University Glenn Institute $ 286,082 $ 286,082 97082
GRF 235-524 Police and Fire Protection $ 171,959 $ 171,959 97083
GRF 235-525 Geriatric Medicine $ 750,110 $ 750,110 97084
GRF 235-526 Primary Care Residencies $ 2,245,688 $ 2,245,688 97085
GRF 235-527 Ohio Aerospace Institute $ 1,764,957 $ 1,764,957 97086
GRF 235-530 Academic Scholarships $ 7,800,000 $ 7,800,000 97087
GRF 235-531 Student Choice Grants $ 50,853,276 $ 52,985,376 97088
GRF 235-534 Student Workforce Development Grants $ 2,137,500 $ 2,137,500 97089
GRF 235-535 Ohio Agricultural Research and Development Center $ 35,955,188 $ 35,955,188 97090
GRF 235-536 The Ohio State University Clinical Teaching $ 13,565,885 $ 13,565,885 97091
GRF 235-537 University of Cincinnati Clinical Teaching $ 11,157,756 $ 11,157,756 97092
GRF 235-538 Medical University of Ohio at Toledo Clinical Teaching $ 8,696,866 $ 8,696,866 97093
GRF 235-539 Wright State University Clinical Teaching $ 4,225,107 $ 4,225,107 97094
GRF 235-540 Ohio University Clinical Teaching $ 4,084,540 $ 4,084,540 97095
GRF 235-541 Northeastern Ohio Universities College of Medicine Clinical Teaching $ 4,200,945 $ 4,200,945 97096
GRF 235-543 Ohio College of Podiatric Medicine Clinic Subsidy $ 250,000 $ 250,000 97097
GRF 235-547 School of International Business $ 450,000 $ 450,000 97098
GRF 235-549 Part-time Student Instructional Grants $ 14,457,721 $ 10,534,617 97099
GRF 235-552 Capital Component $ 19,058,863 $ 19,058,863 97100
GRF 235-553 Dayton Area Graduate Studies Institute $ 2,806,599 $ 2,806,599 97101
GRF 235-554 Priorities in Collaborative Graduate Education $ 2,355,548 $ 2,355,548 97102
GRF 235-555 Library Depositories $ 1,696,458 $ 1,696,458 97103
GRF 235-556 Ohio Academic Resources Network $ 3,727,223 $ 3,727,223 97104
GRF 235-558 Long-term Care Research $ 211,047 $ 211,047 97105
GRF 235-561 Bowling Green State University Canadian Studies Center $ 100,015 $ 100,015 97106
GRF 235-563 Ohio College Opportunity Grant $ 0 $ 58,144,139 97107
GRF 235-572 The Ohio State University Clinic Support $ 1,277,019 $ 1,277,019 97108
GRF 235-583 Urban University Program $ 4,992,937 $ 4,992,937 97109
GRF 235-587 Rural University Projects $ 1,147,889 $ 1,147,889 97110
GRF 235-596 Hazardous Materials Program $ 360,435 $ 360,435 97111
GRF 235-599 National Guard Scholarship Program $ 15,128,472 $ 16,611,063 97112
GRF 235-909 Higher Education General Obligation Debt Service $ 137,600,300 $ 152,114,100 97113
TOTAL GRF General Revenue Fund $ 2,469,260,757 $ 2,548,147,869 97114

General Services Fund Group97115

220 235-614 Program Approval and Reauthorization $ 400,000 $ 400,000 97116
456 235-603 Sales and Services $ 700,000 $ 900,000 97117
TOTAL GSF General Services 97118
Fund Group $ 1,100,000 $ 1,300,000 97119

Federal Special Revenue Fund Group97120

3H2 235-608 Human Services Project $ 1,500,000 $ 1,500,000 97121
3H2 235-622 Medical Collaboration Network $ 3,346,143 $ 3,346,143 97122
3N6 235-605 State Student Incentive Grants $ 2,196,680 $ 2,196,680 97123
3T0 235-610 National Health Service Corps - Ohio Loan Repayment $ 150,001 $ 150,001 97124
312 235-609 Tech Prep $ 183,850 $ 183,850 97125
312 235-611 Gear-up Grant $ 1,370,691 $ 1,370,691 97126
312 235-612 Carl D. Perkins Grant/Plan Administration $ 112,960 $ 112,960 97127
312 235-615 Professional Development $ 523,129 $ 523,129 97128
312 235-617 Improving Teacher Quality Grant $ 2,900,000 $ 2,900,000 97129
312 235-619 Ohio Supercomputer Center $ 6,000,000 $ 6,000,000 97130
312 235-621 Science Education Network $ 1,686,970 $ 1,686,970 97131
312 235-631 Federal Grants $ 250,590 $ 250,590 97132
TOTAL FED Federal Special Revenue 97133
Fund Group $ 20,221,014 $ 20,221,014 97134

State Special Revenue Fund Group97135

4E8 235-602 Higher Educational Facility Commission Administration $ 55,000 $ 55,000 97136
4P4 235-604 Physician Loan Repayment $ 476,870 $ 476,870 97137
649 235-607 The Ohio State University Highway/Transportation Research $ 760,000 $ 760,000 97138
682 235-606 Nursing Loan Program $ 893,000 $ 893,000 97139
TOTAL SSR State Special Revenue 97140
Fund Group $ 2,184,870 $ 2,184,870 97141
TOTAL ALL BUDGET FUND GROUPS $ 2,492,766,641 $ 2,571,853,753 97142


       Section 209.63.03. OPERATING EXPENSES97144

       Of the foregoing appropriation item 235-321, Operating 97145
Expenses, up to $150,000 in each fiscal year shall be used in 97146
conjunction with funding provided in the Department of Education 97147
budget under appropriation item 200-427, Academic Standards, to 97148
create Ohio's Partnership for Continued Learning, in consultation 97149
with the Governor's Office. The Partnership, which replaces and 97150
broadens the former Joint Council of the Department of Education 97151
and the Board of Regents, shall advise and make recommendations to 97152
promote collaboration among relevant state entities in an effort 97153
to help local communities develop coherent and successful "P-16" 97154
learning systems. The Director of Budget and Management may 97155
transfer any unencumbered fiscal year 2006 balance to fiscal year 97156
2007 to support the activities of the Partnership.97157

       Section 209.63.06. LEASE RENTAL PAYMENTS97158

       The foregoing appropriation item 235-401, Lease Rental97159
Payments, shall be used to meet all payments at the times they are97160
required to be made during the period from July 1, 2005, to June97161
30, 2007, by the Board of Regents under leases and agreements made 97162
under section 154.21 of the Revised Code, but limited to the 97163
aggregate amount of $401,414,500. Nothing in this act shall be 97164
deemed to contravene the obligation of the state to pay, without97165
necessity for further appropriation, from the sources pledged97166
thereto, the bond service charges on obligations issued pursuant97167
to section 154.21 of the Revised Code.97168

       Section 209.63.09. SEA GRANTS97169

       The foregoing appropriation item 235-402, Sea Grants, shall97170
be disbursed to the Ohio State University and shall be used to97171
conduct research on fish in Lake Erie.97172

       Section 209.63.12. ARTICULATION AND TRANSFER97173

       The foregoing appropriation item 235-406, Articulation and 97174
Transfer, shall be used by the Board of Regents to maintain and 97175
expand the work of the Articulation and Transfer Council to 97176
develop a system of transfer policies to ensure that students at 97177
state institutions of higher education can transfer and have 97178
coursework apply to their majors and degrees at any other state 97179
institution of higher education without unnecessary duplication or 97180
institutional barriers under sections 3333.16, 3333.161, and 97181
3333.162 of the Revised Code.97182

       Of the foregoing appropriation item 235-406, Articulation and 97183
Transfer, $200,000 in each fiscal year shall be used to support 97184
the work of the Articulation and Transfer Council under division 97185
(B) of section 3333.162 of the Revised Code.97186

       Section 209.63.15. MIDWEST HIGHER EDUCATION COMPACT97187

       The foregoing appropriation item 235-408, Midwest Higher97188
Education Compact, shall be distributed by the Board of Regents97189
under section 3333.40 of the Revised Code.97190

       Section 209.63.18. INFORMATION SYSTEM97191

       The foregoing appropriation item 235-409, Information System,97192
shall be used by the Board of Regents to operate the higher97193
education information data system known as the Higher Education97194
Information System.97195

       Section 209.63.21. STATE GRANTS AND SCHOLARSHIP 97196
ADMINISTRATION97197

       The foregoing appropriation item 235-414, State Grants and 97198
Scholarship Administration, shall be used by the Board of Regents 97199
to administer the following student financial aid programs: Ohio 97200
Instructional Grant, Part-time Student Instructional Grant, Ohio 97201
College Opportunity Grant, Ohio Student Choice Grant, Ohio 97202
Academic Scholarship, Ohio War Orphans' Scholarship, Nurse 97203
Education Assistance Loan Program, Student Workforce Development 97204
Grant, Regents Graduate/Professional Fellowship, Ohio Safety 97205
Officers College Memorial Fund, Capitol Scholarship Program, and 97206
any other student financial aid programs created by the General 97207
Assembly. The appropriation item also shall be used to administer 97208
the federal Leveraging Educational Assistance Partnership (LEAP) 97209
and Special Leveraging Educational Assistance Partnership (SLEAP) 97210
programs and other student financial aid programs created by 97211
Congress and to provide fiscal services for the Ohio National 97212
Guard Scholarship Program and the Physician Loan Repayment 97213
Program.97214

       Section 209.63.24. JOBS CHALLENGE97215

       Funds appropriated to the foregoing appropriation item 97216
235-415, Jobs Challenge, shall be distributed to state-assisted 97217
community and technical colleges, regional campuses of 97218
state-assisted universities, and other organizationally distinct 97219
and identifiable member campuses of the EnterpriseOhio Network in 97220
support of noncredit job-related training. In each fiscal year, 97221
$2,770,773 shall be distributed as performance grants to 97222
EnterpriseOhio Network campuses based upon each campus's 97223
documented performance according to criteria established by the 97224
Board of Regents for increasing training and related services to 97225
businesses, industries, and public sector organizations.97226

       Of the foregoing appropriation item 235-415, Jobs Challenge,97227
$2,819,345 in each fiscal year shall be allocated to the Targeted97228
Industries Training Grant Program to attract, develop, and retain97229
business and industry strategically important to the state's97230
economy.97231

       Also, in each fiscal year, $3,758,182 shall be allocated to 97232
the Higher Skills Incentives Program to promote and deliver 97233
coordinated, comprehensive training to local employers and to 97234
reward EnterpriseOhio Network campuses for increasing the amount 97235
of non-credit skill upgrading services provided to Ohio employers 97236
and employees. The funds shall be distributed to campuses in 97237
proportion to each campus's share of noncredit job-related 97238
training revenues received by all campuses for the previous fiscal 97239
year. It is the intent of the General Assembly that this Higher 97240
Skills Incentives component of the Jobs Challenge Program reward 97241
campus noncredit job-related training efforts in the same manner 97242
that the Research Incentive Program rewards campuses for their 97243
ability to obtain sponsored research revenues.97244

       Section 209.63.27. OHIO LEARNING NETWORK97245

       The foregoing appropriation item 235-417, Ohio Learning 97246
Network, shall be used by the Board of Regents to support the 97247
continued implementation of the Ohio Learning Network, a statewide97248
electronic collaborative effort designed to promote degree97249
completion of students, workforce training of employees, and97250
professional development through the use of advanced97251
telecommunications and distance education initiatives.97252

       Section 209.63.30. ACCESS CHALLENGE97253

       In each fiscal year, the foregoing appropriation item97254
235-418, Access Challenge, shall be distributed to Ohio's97255
state-assisted access colleges and universities. For the purposes 97256
of this allocation, "access campuses" includes state-assisted 97257
community colleges, state community colleges, technical colleges, 97258
Shawnee State University, Central State University, Cleveland 97259
State University, the regional campuses of state-assisted 97260
universities, and, where they are organizationally distinct and97261
identifiable, the community-technical colleges located at the 97262
University of Cincinnati, Youngstown State University, and the97263
University of Akron.97264

       The purpose of Access Challenge is to reduce the student 97265
share of costs for resident undergraduates enrolled in lower 97266
division undergraduate courses at Ohio's access campuses. The 97267
long-term goal is to make the student share of costs for these 97268
students equivalent to the student share of costs for resident 97269
undergraduate students enrolled throughout Ohio's public colleges 97270
and universities. Access Challenge appropriations shall be used in 97271
both years of the biennium to sustain, as much as possible, the 97272
tuition restraint or tuition reduction that was achieved with 97273
Access Challenge allocations in prior years.97274

       In fiscal year 2006, Access Challenge subsidies shall be 97275
distributed by the Board of Regents to eligible access campuses on 97276
the basis of the average of each campus's share of fiscal year 97277
2003 and 2004 all-terms subsidy-eligible General Studies FTEs. In 97278
fiscal year 2007, Access Challenge subsidies shall be distributed 97279
by the Board of Regents to eligible access campuses on the basis 97280
of the average of each campus's share of fiscal year 2004 and 2005 97281
all-terms subsidy-eligible General Studies FTEs.97282

       For purposes of this calculation, Cleveland State97283
University's enrollments shall be adjusted by the ratio of the sum97284
of subsidy-eligible lower-division FTE student enrollments97285
eligible for access funding to the sum of subsidy-eligible General97286
Studies FTE student enrollments at Central State University and97287
Shawnee State University, and for the following universities and97288
their regional campuses: the Ohio State University, Ohio 97289
University, Kent State University, Bowling Green State University, 97290
Miami University, the University of Cincinnati, the University of 97291
Akron, and Wright State University.97292

       Of the foregoing appropriation item 235-418, Access 97293
Challenge, $10,172,626 in fiscal year 2006 and $9,663,995 in 97294
fiscal year 2007 shall be used by Central State University to keep97295
undergraduate fees below the statewide average, consistent with97296
its mission of service to many first-generation college students97297
from groups historically underrepresented in higher education and97298
from families with limited incomes.97299

       Section 209.63.33. SUCCESS CHALLENGE97300

       The foregoing appropriation item 235-420, Success Challenge,97301
shall be used by the Board of Regents to promote degree completion 97302
by students enrolled at a main campus of a state-assisted97303
university.97304

       Of the foregoing appropriation item 235-420, Success 97305
Challenge, 66.67 per cent of the appropriation in each fiscal year 97306
shall be distributed to state-assisted university main campuses in97307
proportion to each campus's share of the total statewide97308
bachelor's degrees granted by university main campuses to97309
"at-risk" students. In fiscal years 2006 and 2007, an "at-risk"97310
student means any undergraduate student who was eligible to 97311
receive an Ohio need-based financial aid award during the past ten 97312
years. An eligible institution shall not receive its share of this97313
distribution until it has submitted a plan that addresses how the97314
subsidy will be used to better serve at-risk students and increase97315
their likelihood of successful completion of a bachelor's degree97316
program. The Board of Regents shall disseminate to all97317
state-supported institutions of higher education all such plans97318
submitted by institutions that received Success Challenge funds.97319

       Of the foregoing appropriation item 235-420, Success 97320
Challenge, 33.33 per cent of the appropriation in each fiscal year 97321
shall be distributed to university main campuses in proportion to 97322
each campus's share of the total bachelor's degrees granted by97323
university main campuses to undergraduate students who completed97324
their bachelor's degrees in a "timely manner" in the previous97325
fiscal year. For purposes of this section, "timely manner" means 97326
the normal time it would take for a full-time degree-seeking97327
undergraduate student to complete the student's degree. Generally,97328
for such students pursuing a bachelor's degree, "timely manner"97329
means four years. Exceptions to this general rule shall be97330
permitted for students enrolled in programs specifically designed97331
to be completed in a longer time period. The Board of Regents97332
shall collect data to assess the timely completion statistics by97333
university main campuses.97334

       Section 209.63.36. APPALACHIAN NEW ECONOMY PARTNERSHIP97335

       The foregoing appropriation item 235-428, Appalachian New97336
Economy Partnership, shall be distributed to Ohio University to97337
continue a multi-campus and multi-agency coordinated effort to 97338
link Appalachia to the new economy. Ohio University shall use 97339
these funds to provide leadership in the development and 97340
implementation of initiatives in the areas of entrepreneurship, 97341
management, education, and technology.97342

       Section 209.63.39. ECONOMIC GROWTH CHALLENGE97343

       The foregoing appropriation item 235-433, Economic Growth 97344
Challenge, shall be used to enhance the basic research 97345
capabilities of Ohio's public and private institutions of higher 97346
education, support improved graduate programs throughout the 97347
state, and promote the transfer of technology developed by 97348
colleges and universities to private industry to further the 97349
economic goals of the state.97350

       Of the foregoing appropriation item 235-433, Economic Growth97351
Challenge, $18,000,000 in each fiscal year shall be used for the 97352
Research Incentive Program to enhance the basic research97353
capabilities of public colleges and universities and accredited97354
Ohio institutions of higher education holding certificates of97355
authorization issued under section 1713.02 of the Revised Code, in 97356
order to strengthen academic research for pursuing Ohio's economic97357
development goals. The Board of Regents, in consultation with the 97358
colleges and universities, shall administer the Research Incentive 97359
Program and utilize a means of matching, on a fractional basis, 97360
external funds attracted in the previous year by institutions for 97361
basic research. The program may include incentives for increasing 97362
the amount of external research funds coming to eligible 97363
institutions and for focusing research efforts upon critical state 97364
needs. Colleges and universities shall submit for review and 97365
approval to the Board of Regents plans for the institutional 97366
allocation of state dollars received through the program. The 97367
institutional plans shall provide the rationale for the allocation 97368
in terms of the strategic targeting of funds for academic and 97369
state purposes, for strengthening research programs, for 97370
increasing the amount of external research funds, and shall 97371
include an evaluation process to provide results of the increased 97372
support. Institutional plans for the use of Research Incentive 97373
funding must demonstrate a significant investment in Third 97374
Frontier activities funded at the institution. For a college or 97375
university with multiple Third Frontier grants, as much as ten per 97376
cent of that institution's Research Incentive funding may be 97377
invested in Third Frontier Project-related activities. Each 97378
institutional plan for the investment of Research Incentive moneys 97379
shall report on existing, planned, or possible relationships with 97380
other state science and technology programs and funding recipients 97381
in order to further ongoing statewide science and technology 97382
collaboration objectives. The Board of Regents shall submit a 97383
biennial report of progress to the General Assembly.97384

       In fiscal year 2006, both those state-assisted doctoral 97385
degree-granting universities and those accredited Ohio 97386
institutions of higher education holding certificates of 97387
authorization under section 1713.02 of the Revised Code electing 97388
to participate in the Innovation Incentive Program shall initiate 97389
a comprehensive Innovation Incentive Plan designed to enhance 97390
doctoral programs and areas of research that have the greatest 97391
potential to attract preeminent researchers and build research 97392
capacity; enhance regional or state economic growth by creating 97393
new products and services to be commercialized; and complement 97394
Ohio's Third Frontier Project.97395

        Funding for the Innovation Incentive Program shall be 97396
generated from those state-assisted universities electing to set 97397
aside a portion of their allocation of the current doctoral 97398
reserve as provided in appropriation item 235-501, State Share of 97399
Instruction, and state matching funds provided in appropriation 97400
item 235-433, Economic Growth Challenge. Additionally, those 97401
accredited Ohio institutions of higher education holding 97402
certificates of authorization under section 1713.02 of the Revised 97403
Code electing to participate in the Innovation Incentive Program 97404
shall be required to set aside an amount comparable to the 97405
state-assisted universities. The criteria for the determination of 97406
this amount shall be developed by the Board of Regents.97407

       Of the foregoing appropriation item 235-433, Economic Growth 97408
Challenge, $2,343,097 in fiscal year 2006 and $4,686,194 in fiscal 97409
year 2007 shall match funds set aside by the state-assisted 97410
universities for the Innovation Incentive Program. The set aside 97411
begins in fiscal year 2006 and is intended to increase 97412
incrementally over a period of ten years with the goal of setting 97413
aside a total of fifteen per cent of the doctoral reserve from 97414
appropriation item 235-501, State Share of Instruction, by 2016.97415

        The Board of Regents shall use the combined amount of each 97416
participating state-assisted university's set aside of the 97417
doctoral reserve that has been withheld, the state matching funds 97418
earmarked under appropriation item 235-433, Economic Growth 97419
Challenge, and the amount set aside by each accredited Ohio 97420
institution of higher education holding a certificate of 97421
authorization under section 1713.02 of the Revised Code electing 97422
to participate in the Innovation Incentive Program to make awards 97423
through a competitive process under the Innovation Incentive 97424
Program. Only universities electing to set aside the prescribed 97425
amount shall be eligible to compete for and receive Innovation 97426
Incentive awards. The participating universities shall use these 97427
awards to restructure their array of doctoral programs.97428

       Of the foregoing appropriation item 235-433, Economic Growth 97429
Challenge, $500,000 in fiscal year 2007 shall be distributed for 97430
the Technology Commercialization Incentive. The purpose of the 97431
Technology Commercialization Incentive is to reward public and 97432
private colleges and universities for successful technology 97433
transfer to Ohio-based business and industry resulting in the 97434
commercialization of new products, processes, and services and the 97435
establishment of new business start-ups within the state. The 97436
Third Frontier Commission, with counsel from the Third Frontier 97437
Advisory Board, shall establish the eligibility criteria for 97438
public and private colleges and universities interested in 97439
applying for Technology Commercialization Incentive funding. To 97440
qualify for the funds, public and private colleges and 97441
universities must maintain a significant investment in their own 97442
technology-transfer and commercialization operation and 97443
capabilities, and possess a significant history of successful 97444
research partnerships with Ohio-based business and industry.97445

       Section 209.63.42. COLLEGE READINESS AND ACCESS97446

       Appropriation item 235-434, College Readiness and Access,97447
shall be used by the Board of Regents to support programs designed 97448
to improve the academic preparation and increase the number of 97449
students that enroll and succeed in higher education such as the 97450
Ohio College Access Network, the state match for the federal 97451
Gaining Early Awareness and Readiness for Undergraduate Program, 97452
and early awareness initiatives. The appropriation item shall also 97453
be used to support innovative statewide strategies to increase 97454
student access and retention for specialized populations, and to 97455
provide for pilot projects that will contribute to improving 97456
access to higher education by specialized populations. The funds 97457
may be used for projects that improve access for nonpublic 97458
secondary students.97459

        Of the foregoing appropriation item 235-434, College 97460
Readiness and Access, $798,684 in fiscal year 2006 and $822,645 in 97461
fiscal year 2007 shall be distributed to the Ohio Appalachian 97462
Center for Higher Education at Shawnee State University. The board 97463
of directors of the Center shall consist of the presidents of 97464
Shawnee State University, Ohio University, Belmont Technical 97465
College, Hocking College, Jefferson Community College, Zane State 97466
College, Rio Grande Community College, Southern State Community 97467
College, and Washington State Community College; the dean of one 97468
of the Salem, Tuscarawas, and East Liverpool regional campuses of 97469
Kent State University, as designated by the president of Kent 97470
State University; and a representative of the Board of Regents 97471
designated by the Chancellor.97472

        Of the foregoing appropriation item 235-434, College 97473
Readiness and Access, $169,553 in fiscal year 2006 and $174,640 in 97474
fiscal year 2007 shall be distributed to Miami University for the 97475
Student Achievement in Research and Scholarship (STARS) Program.97476

        Of the foregoing appropriation item 235-434, College 97477
Readiness and Access, $1,574,535 in fiscal year 2006 and 97478
$2,753,985 in fiscal year 2007 shall be used in conjunction with 97479
funding provided in the Ohio Department of Education budget under 97480
appropriation item 200-431, School Improvement Initiatives, to 97481
support the Early College High School Pilot Program.97482

       Section 209.63.45.  TEACHER IMPROVEMENT INITIATIVES97483

       Appropriation item 235-435, Teacher Improvement Initiatives, 97484
shall be used by the Board of Regents to support programs such as 97485
OSI - Discovery and the Centers of Excellence in Mathematics and 97486
Science designed to raise the quality of mathematics and science97487
teaching in primary and secondary education.97488

       Of the foregoing appropriation item 235-435, Teacher 97489
Improvement Initiatives, $204,049 in each fiscal year shall be 97490
distributed to the Mathematics and Science Center in Lake County.97491

       Of the foregoing appropriation item 235-435, Teacher 97492
Improvement Initiatives, $106,619 in each fiscal year shall be 97493
distributed to the Ohio Mathematics and Science Coalition.97494

       Of the foregoing appropriation item 234-435, Teacher 97495
Improvement Initiatives, $100,000 in each fiscal year shall be 97496
distributed to the Teacher Quality Partnerships study.97497

        Of the foregoing appropriation item 235-435, Teacher 97498
Improvement Initiatives, $874,871 in each fiscal year shall be 97499
distributed to the Ohio Resource Center for Mathematics, Science, 97500
and Reading. The funds shall be used to support a resource center 97501
for mathematics, science, and reading to be located at a 97502
state-assisted university for the purpose of identifying best 97503
educational practices in primary and secondary schools and 97504
establishing methods for communicating them to colleges of 97505
education and school districts. The Ohio Resource Center for 97506
Mathematics, Science, and Reading shall not make available 97507
resources that are inconsistent with the K-12 science standards 97508
and policies as adopted by the State Board of Education.97509

       Section 209.63.48. EMINENT SCHOLARS97510

       The foregoing appropriation item 235-451, Eminent Scholars,97511
shall be used by the Ohio Board of Regents to continue the Ohio97512
Eminent Scholars Program, the purpose of which is to invest97513
educational resources to address problems that are of vital97514
statewide significance while fostering the growth in eminence of97515
Ohio's academic programs. Ohio Eminent Scholars endowed chairs 97516
shall allow Ohio universities to recruit senior faculty members 97517
from outside Ohio who are nationally and internationally 97518
recognized scholars in areas of science and technology that 97519
provide the basic research platforms on which the state's 97520
technology and commercialization efforts are built. Endowment 97521
grants of approximately $685,494 to state colleges and 97522
universities and nonprofit Ohio institutions of higher education 97523
holding certificates of authorization issued under section 1713.02 97524
of the Revised Code to match endowment gifts from nonstate sources 97525
may be made in accordance with a plan established by the Ohio 97526
Board of Regents. Matching nonstate endowment gifts shall be equal 97527
to the state's endowment grant of approximately $685,494. The 97528
grants shall have as their purpose attracting and sustaining in 97529
Ohio scholar-leaders of national or international prominence; each 97530
grant shall assist in accelerating state economic growth through 97531
research that provides an essential basic science platform for 97532
commercialization efforts. Such scholar-leaders shall, among their 97533
duties, share broadly the benefits and knowledge unique to their 97534
fields of scholarship to the betterment of Ohio and its people and 97535
collaborate with other state technology programs and program 97536
recipients.97537

       All new Eminent Scholar awards made by the Board of Regents 97538
shall be associated with a Wright Center of Innovation, a 97539
Partnership Award from the Biomedical Research and Technology 97540
Transfer Trust Fund, or a Wright Capital Project.97541

       Section 209.63.51. ENTERPRISEOHIO NETWORK97542

       The foregoing appropriation item 235-455, EnterpriseOhio 97543
Network, shall be allocated by the Board of Regents to continue 97544
increasing the capabilities of the EnterpriseOhio Network to meet 97545
the ongoing training needs of Ohio employers. Funds shall support 97546
multicampus collaboration, best practice dissemination, and 97547
capacity building projects. The Regents Advisory Committee for 97548
Workforce Development, in its advisory role, shall advise in the 97549
development of plans and activities.97550

       Of the foregoing appropriation item 235-455, EnterpriseOhio 97551
Network, $165,300 in each fiscal year shall be used by the Dayton 97552
Business/Sinclair College Jobs Profiling Program.97553

       Section 209.63.54. AREA HEALTH EDUCATION CENTERS97554

       The foregoing appropriation item 235-474, Area Health97555
Education Centers Program Support, shall be used by the Board of97556
Regents to support the medical school regional area health97557
education centers' educational programs for the continued support97558
of medical and other health professions education and for support97559
of the Area Health Education Center Program.97560

       Of the foregoing appropriation item 235-474, Area Health97561
Education Centers Program Support, $159,158 in each fiscal year 97562
shall be disbursed to the Ohio University College of Osteopathic97563
Medicine to operate a mobile health care unit to serve the97564
southeastern area of the state.97565

        Of the foregoing appropriation item 235-474, Area Health 97566
Education Centers Program Support, $119,369 in each fiscal year 97567
shall be used to support the Ohio Valley Community Health97568
Information Network (OVCHIN) project.97569

       Section 209.63.57. STATE SHARE OF INSTRUCTION97570

       As soon as practicable during each fiscal year of the97571
biennium ending June 30, 2007, in accordance with instructions of 97572
the Board of Regents, each state-assisted institution of higher97573
education shall report its actual enrollment to the Board of97574
Regents.97575

       The Board of Regents shall establish procedures required by97576
the system of formulas set out below and for the assignment of97577
individual institutions to categories described in the formulas.97578
The system of formulas establishes the manner in which aggregate97579
expenditure requirements shall be determined for each of the three97580
components of institutional operations. In addition to other97581
adjustments and calculations described below, the subsidy97582
entitlement of an institution shall be determined by subtracting97583
from the institution's aggregate expenditure requirements income97584
to be derived from the local contributions assumed in calculating97585
the subsidy entitlements. The local contributions for purposes of97586
determining subsidy support shall not limit the authority of the97587
individual boards of trustees to establish fee levels.97588

       The General Studies and Technical models shall be adjusted by97589
the Board of Regents so that the share of state subsidy earned by97590
those models is not altered by changes in the overall local share.97591
A lower-division fee differential shall be used to maintain the97592
relationship that would have occurred between these models and the97593
baccalaureate models had an assumed share of 37.5 per cent been 97594
funded.97595

       In defining the number of full-time equivalent (FTE) students97596
for state subsidy purposes, the Board of Regents shall exclude all 97597
undergraduate students who are not residents of Ohio, except those 97598
charged in-state fees in accordance with reciprocity agreements 97599
made under section 3333.17 of the Revised Code or employer 97600
contracts entered into under section 3333.32 of the Revised Code.97601

       (A) AGGREGATE EXPENDITURE PER FULL-TIME EQUIVALENT STUDENT97602

       (1) INSTRUCTION AND SUPPORT SERVICES97603

MODEL FY 2006 FY 2007 97604
General Studies I $ 4,655 $ 4,655 97605
General Studies II $ 5,135 $ 5,135 97606
General Studies III $ 6,365 $ 6,365 97607
Technical I $ 5,926 $ 5,926 97608
Technical III $ 9,107 $ 9,107 97609
Baccalaureate I $ 7,160 $ 7,160 97610
Baccalaureate II $ 8,235 $ 8,235 97611
Baccalaureate III $ 11,841 $ 11,841 97612
Masters and Professional I $ 19,088 $ 19,088 97613
Masters and Professional II $ 20,984 $ 20,984 97614
Masters and Professional III $ 27,234 $ 27,234 97615
Medical I $ 29,143 $ 29,143 97616
Medical II $ 37,172 $ 37,172 97617
MPD I $ 13,645 $ 13,645 97618

       (2) STUDENT SERVICES97619

       For this purpose, FTE counts shall be weighted to reflect97620
differences among institutions in the numbers of students enrolled97621
on a part-time basis. The student services subsidy per FTE shall 97622
be $890 in each fiscal year for all models.97623

       (B) PLANT OPERATION AND MAINTENANCE (POM)97624

       (1) DETERMINATION OF THE SQUARE-FOOT-BASED POM SUBSIDY97625

       Space undergoing renovation shall be funded at the rate97626
allowed for storage space.97627

       In the calculation of square footage for each campus, square97628
footage shall be weighted to reflect differences in space97629
utilization.97630

       The space inventories for each campus shall be those97631
determined in the fiscal year 2003 state share of instruction 97632
calculation, adjusted for changes attributable to the construction 97633
or renovation of facilities for which state appropriations were97634
made or local commitments were made prior to January 1, 1995.97635

       Only 50 per cent of the space permanently taken out of97636
operation in fiscal year 2006 or fiscal year 2007 that is not97637
otherwise replaced by a campus shall be deleted from the plant 97638
operation and maintenance space inventory.97639

       The square-foot-based plant operation and maintenance subsidy97640
for each campus shall be determined as follows:97641

       (a) For each standard room type category shown below, the97642
subsidy-eligible net assignable square feet (NASF) for each campus97643
shall be multiplied by the following rates, and the amounts summed97644
for each campus to determine the total gross square-foot-based POM97645
expenditure requirement:97646

FY 2006 FY 2007 97647
Classrooms $5.86 $5.86 97648
Laboratories $7.31 $7.31 97649
Offices $5.86 $5.86 97650
Audio Visual Data Processing $7.31 $7.31 97651
Storage $2.59 $2.59 97652
Circulation $7.39 $7.39 97653
Other $5.86 $5.86 97654

       (b) The total gross square-foot POM expenditure requirement97655
shall be allocated to models in proportion to each campus's 97656
activity-based POM weight multiplied by the two- or five-year 97657
average subsidy-eligible FTEs for all models.97658

       (c) The amounts allocated to models in division (B)(1)(b) of97659
this section shall be multiplied by the ratio of subsidy-eligible97660
FTE students to total FTE students reported in each model, and the97661
amounts summed for all models. To this total amount shall be added 97662
an amount to support roads and grounds expenditures, which shall 97663
also be multiplied by the ratio of subsidy-eligible FTE students 97664
to total FTEs reported for each model. From this total amount, the 97665
amounts for Doctoral I and Doctoral II shall be subtracted to97666
produce the square-foot-based POM subsidy.97667

       (2) DETERMINATION OF THE ACTIVITY-BASED POM SUBSIDY97668

       (a) The number of subsidy-eligible FTE students in each model 97669
shall be multiplied by the following rates for each campus for 97670
each fiscal year.97671

FY 2006 FY 2007 97672
General Studies I $ 512 $ 512 97673
General Studies II $ 662 $ 662 97674
General Studies III $1,464 $1,464 97675
Technical I $ 752 $ 752 97676
Technical III $1,343 $1,343 97677
Baccalaureate I $ 639 $ 639 97678
Baccalaureate II $1,149 $1,149 97679
Baccalaureate III $1,262 $1,262 97680
Masters and Professional I $1,258 $1,258 97681
Masters and Professional II $2,446 $2,446 97682
Masters and Professional III $3,276 $3,276 97683
Medical I $1,967 $1,967 97684
Medical II $3,908 $3,908 97685
MPD I $1,081 $1,081 97686

       (b) The sum of the products for each campus determined in97687
division (B)(2)(a) of this section for all models except Doctoral97688
I and Doctoral II for each fiscal year shall be weighted by a97689
factor to reflect sponsored research activity and job97690
training-related public services expenditures to determine the97691
total activity-based POM subsidy.97692

       (C) CALCULATION OF CORE SUBSIDY ENTITLEMENTS AND ADJUSTMENTS97693

       (1) CALCULATION OF CORE SUBSIDY ENTITLEMENTS97694

       The calculation of the core subsidy entitlement shall consist97695
of the following components:97696

       (a) For each campus in each fiscal year, the core subsidy 97697
entitlement shall be determined by multiplying the amounts listed 97698
above in divisions (A)(1) and (2) and (B)(2) of this section less 97699
assumed local contributions, by (i) average subsidy-eligible FTEs 97700
for the two-year period ending in the prior year for all models 97701
except Doctoral I and Doctoral II; and (ii) average97702
subsidy-eligible FTEs for the five-year period ending in the prior 97703
year for all models except Doctoral I and Doctoral II.97704

       (b) In calculating the core subsidy entitlements for Medical97705
II models only, the Board of Regents shall use the following count97706
of FTE students:97707

       (i) For those medical schools whose current year enrollment, 97708
including students repeating terms, is below the base enrollment, 97709
the Medical II FTE enrollment shall equal: 65 per cent of the base97710
enrollment plus 35 per cent of the current year enrollment 97711
including students repeating terms, where the base enrollment is:97712

The Ohio State University 1010 97713
University of Cincinnati 833 97714
Medical University of Ohio at Toledo 650 97715
Wright State University 433 97716
Ohio University 433 97717
Northeastern Ohio Universities College of Medicine 433 97718

       (ii) For those medical schools whose current year enrollment, 97719
excluding students repeating terms, is equal to or greater than 97720
the base enrollment, the Medical II FTE enrollment shall equal the97721
base enrollment plus the FTE for repeating students.97722

       (iii) Students repeating terms may be no more than five per 97723
cent of current year enrollment.97724

       (c) The Board of Regents shall compute the sum of the two97725
calculations listed in division (C)(1)(a) of this section and use97726
the greater sum as the core subsidy entitlement.97727

       The POM subsidy for each campus shall equal the greater of97728
the square-foot-based subsidy or the activity-based POM subsidy97729
component of the core subsidy entitlement.97730

       (d) The state share of instruction provided for doctoral97731
students shall be based on a fixed percentage of the total97732
appropriation. In each fiscal year of the biennium not more than97733
10.34 per cent of the total state share of instruction shall be97734
reserved to implement the recommendations of the Graduate Funding97735
Commission. It is the intent of the General Assembly that the97736
doctoral reserve not exceed 10.34 per cent of the total state97737
share of instruction to implement the recommendations of the97738
Graduate Funding Commission. The Board of Regents may reallocate 97739
up to two per cent in each fiscal year of the reserve among the97740
state-assisted universities on the basis of a quality review as97741
specified in the recommendations of the Graduate Funding97742
Commission. No such reallocation shall occur unless the Board of 97743
Regents, in consultation with representatives of state-assisted 97744
universities, determines that sufficient funds are available for 97745
this purpose.97746

       The amount so reserved shall be allocated to universities in97747
proportion to their share of the total number of Doctoral I97748
equivalent FTEs as calculated on an institutional basis using the97749
greater of the two-year or five-year FTEs for the period fiscal97750
year 1994 through fiscal year 1998 with annualized FTEs for fiscal97751
years 1994 through 1997 and all-term FTEs for fiscal year 1998 as97752
adjusted to reflect the effects of doctoral review and subsequent 97753
changes in Doctoral I equivalent enrollments. For the purposes of 97754
this calculation, Doctoral I equivalent FTEs shall equal the sum 97755
of Doctoral I FTEs plus 1.5 times the sum of Doctoral II FTEs.97756

       If a university participates in the Innovation Incentive 97757
Program outlined in appropriation item 235-433, Economic Growth 97758
Challenge, then the Board of Regents shall withhold 1.5 per cent 97759
in fiscal year 2006 and three per cent in fiscal year 2007 of the 97760
participating university's allocation of the doctoral reserve. 97761
This withholding is intended to increase incrementally with a goal 97762
of setting aside 15 per cent of the total doctoral reserve by 97763
fiscal year 2016.97764

        The Board of Regents shall use the combined amount of each 97765
participating state-assisted university's set aside of the 97766
doctoral reserve that has been withheld, the state matching funds 97767
earmarked under appropriation item 235-433, Economic Growth 97768
Challenge, and the amount set aside by each accredited Ohio 97769
institution of higher education holding a certificate of 97770
authorization under section 1713.02 of the Revised Code electing 97771
to participate in the Innovation Incentive Program to make awards 97772
through a competitive process under the Innovation Incentive 97773
Program. Only universities electing to set aside the prescribed 97774
amount shall be eligible to compete for and receive Innovation 97775
Incentive awards. The participating universities shall use these 97776
awards to restructure their array of doctoral programs.97777

       (2) ANNUAL STATE SHARE OF INSTRUCTION FUNDING STOP LOSS97778

       In addition to and after the other adjustment noted above, in 97779
each fiscal year, no campus shall receive a state share of 97780
instruction allocation that is less than 97 per cent of the prior 97781
year's state share of instruction amount.97782

       (3) REDUCTIONS IN EARNINGS97783

       If the total state share of instruction earnings in any 97784
fiscal year exceeds the total appropriations available for such97785
purposes, the Board of Regents shall proportionately reduce the97786
state share of instruction earnings for all campuses by a uniform97787
percentage so that the system wide sum equals available97788
appropriations.97789

       (4) CAPITAL COMPONENT DEDUCTION97790

       After all other adjustments have been made, state share of 97791
instruction earnings shall be reduced for each campus by the 97792
amount, if any, by which debt service charged in Am. H.B. No. 748 97793
of the 121st General Assembly, Am. Sub. H.B. No. 850 of the 122nd97794
General Assembly, Am. Sub. H.B. No. 640 of the 123rd General 97795
Assembly, and H.B. No. 675 of the 124th General Assembly, and Am. 97796
Sub. H.B. 16 of the 126th General Assembly for that campus exceeds97797
that campus's capital component earnings. The sum of the amounts 97798
deducted shall be transferred to appropriation item 235-552, 97799
Capital Component, in each fiscal year.97800

       (D) EXCEPTIONAL CIRCUMSTANCES97801

       Adjustments may be made to the state share of instruction97802
payments and other subsidies distributed by the Board of Regents97803
to state-assisted colleges and universities for exceptional97804
circumstances. No adjustments for exceptional circumstances may be 97805
made without the recommendation of the Chancellor and the approval 97806
of the Controlling Board.97807

       (E) MID-YEAR APPROPRIATION REDUCTIONS TO THE STATE SHARE OF 97808
INSTRUCTION97809

       The standard provisions of the state share of instruction 97810
calculation as described in the preceding sections of temporary 97811
law shall apply to any reductions made to appropriation item 97812
235-501, State Share of Instruction, before the Board of Regents 97813
has formally approved the final allocation of the state share of 97814
instruction funds for any fiscal year.97815

       Any reductions made to appropriation item 235-501, State 97816
Share of Instruction, after the Board of Regents has formally 97817
approved the final allocation of the state share of instruction 97818
funds for any fiscal year, shall be uniformly applied to each 97819
campus in proportion to its share of the final allocation.97820

       (F) DISTRIBUTION OF STATE SHARE OF INSTRUCTION97821

       The state share of instruction payments to the institutions97822
shall be in substantially equal monthly amounts during the fiscal97823
year, unless otherwise determined by the Director of Budget and97824
Management pursuant to section 126.09 of the Revised Code.97825
Payments during the first six months of the fiscal year shall be97826
based upon the state share of instruction appropriation estimates97827
made for the various institutions of higher education according to97828
Board of Regents enrollment estimates. Payments during the last97829
six months of the fiscal year shall be distributed after approval97830
of the Controlling Board upon the request of the Board of Regents.97831

       (G) LAW SCHOOL SUBSIDY97832

       The state share of instruction to state-supported97833
universities for students enrolled in law schools in fiscal year97834
2006 and fiscal year 2007 shall be calculated by using the number97835
of subsidy-eligible FTE law school students funded by state97836
subsidy in fiscal year 1995 or the actual number of97837
subsidy-eligible FTE law school students at the institution in the97838
fiscal year, whichever is less.97839

       (H) FUNDS REQUIRING CONTROLLING BOARD APPROVAL97840

       Of the foregoing appropriation item 235-501, State Share of 97841
Instruction, $30,000,000 in fiscal year 2007 shall not be 97842
disbursed without approval of the Controlling Board. Within ten 97843
days after the issuance of the report of the Higher Education 97844
Funding Study Council required by Section 209.63.58 of this act, 97845
the Board of Regents shall seek the Controlling Board's approval 97846
to disburse the $30,000,000 appropriation.97847

       Section 209.63.58. HIGHER EDUCATION FUNDING STUDY COUNCIL97848

       (A) The Higher Education Funding Study Council is hereby 97849
created, consisting of the following members:97850

       (1) The Chancellor of the Ohio Board of Regents;97851

       (2) One member of the Ohio Board of Regents, appointed by the 97852
chairperson of the Board;97853

       (3) The Vice-Chancellor of Finance of the Ohio Board of 97854
Regents;97855

       (4) Three members of the House of Representatives, not more 97856
than two of whom are members of the same political party, 97857
appointed by the Speaker of the House of Representatives;97858

       (5) Three members of the Senate, not more than two of whom 97859
are members of the same political party, appointed by the 97860
President of the Senate;97861

       (6) A student attending a state institution of higher 97862
education as defined in section 3345.011 of the Revised Code, 97863
appointed by the Governor;97864

       (7) An employee of the Governor's office, appointed by the 97865
Governor;97866

       (8) One representative from each of the following 97867
organizations, appointed by their respective governing bodies:97868

       (a) The Inter-University Council of Ohio;97869

       (b) The Ohio Association of Community Colleges;97870

       (c) The Ohio Council of Medical School Deans;97871

       (d) The Association of Independent Colleges and Universities 97872
of Ohio.97873

       (B) Initial appointment of members shall be made not later 97874
than thirty days after the effective date of this section. The 97875
Speaker of the House of Representatives and the President of the 97876
Senate shall jointly appoint the chairperson of the Council. 97877
Members of the Council shall serve without compensation. The 97878
Council's first meeting shall be not later than August 15, 2005. 97879
Subsequent meetings shall be conducted at the discretion of the 97880
chair.97881

       (C) The Council shall review all aspects of higher education 97882
funding contained in this act, including all appropriation items, 97883
and shall recommend any changes it determines are necessary. The 97884
Council shall also review the instructional and general fees as 97885
well as the room and board charges at the thirteen state 97886
universities, with the intent of setting limits on future 97887
increases in these fees and charges. The Council shall issue a 97888
report of its activities, findings, and recommendations to the 97889
Governor, the Speaker of the House of Representatives, and the 97890
President of the Senate not later than May 31, 2006.97891

       (D) The Council shall cease to exist January 1, 2007.97892

       Section 209.63.60.  HIGHER EDUCATION - BOARD OF TRUSTEES97893

       Funds appropriated for instructional subsidies at colleges97894
and universities may be used to provide such branch or other97895
off-campus undergraduate courses of study and such master's degree97896
courses of study as may be approved by the Board of Regents.97897

       In providing instructional and other services to students,97898
boards of trustees of state-assisted institutions of higher97899
education shall supplement state subsidies by income from charges97900
to students. Each board shall establish the fees to be charged to97901
all students, including an instructional fee for educational and97902
associated operational support of the institution and a general97903
fee for noninstructional services, including locally financed97904
student services facilities used for the benefit of enrolled97905
students. The instructional fee and the general fee shall97906
encompass all charges for services assessed uniformly to all97907
enrolled students. Each board may also establish special purpose97908
fees, service charges, and fines as required; such special purpose97909
fees and service charges shall be for services or benefits97910
furnished individual students or specific categories of students97911
and shall not be applied uniformly to all enrolled students. 97912
Except for the board of trustees of Miami University, in 97913
implementing the pilot tuition restructuring plan recognized in 97914
Section 89.05 of Am. Sub. H.B. 95 of the 125th General Assembly 97915
and again recognized by this act, a tuition surcharge shall be 97916
paid by all students who are not residents of Ohio.97917

       The boards of trustees of each state institution of higher 97918
education as defined in section 3345.011 of the Revised Code shall 97919
limit in-state undergraduate instructional and general fee 97920
increases for an academic year over the amounts charged in the 97921
prior academic year to not more than the lesser of six per cent 97922
or, for a full-time student, five hundred dollars. A board of 97923
trustees shall not authorize combined instructional and general 97924
fee increases of more than six per cent in a single vote. The 97925
limitations on fee increases prescribed in this section apply to 97926
an academic year even if, prior to the effective date of this 97927
section, a board of trustees has voted to increase fees beyond the 97928
amount permitted under this section. In such case, the board shall 97929
reduce the fees in an amount that results in combined in-state 97930
undergraduate instructional and general fees that comply with this 97931
section. These limitations shall not apply to increases required 97932
to comply with institutional covenants related to their 97933
obligations or to meet unfunded legal mandates or legally binding 97934
obligations incurred or commitments made prior to the effective 97935
date of this section with respect to which the institution had 97936
identified such fee increases as the source of funds. Any increase 97937
required by such covenants and any such mandates, obligations, or 97938
commitments shall be reported by the Board of Regents to the 97939
Controlling Board. These limitations may also be modified by the 97940
Board of Regents, with the approval of the Controlling Board, to 97941
respond to exceptional circumstances as identified by the Board of 97942
Regents.97943

       The board of trustees of a state-assisted institution of97944
higher education shall not authorize a waiver or nonpayment of97945
instructional fees or general fees for any particular student or97946
any class of students other than waivers specifically authorized97947
by law or approved by the Chancellor. This prohibition is not97948
intended to limit the authority of boards of trustees to provide97949
for payments to students for services rendered the institution,97950
nor to prohibit the budgeting of income for staff benefits or for97951
student assistance in the form of payment of such instructional97952
and general fees. This prohibition is not intended to limit the 97953
authority of the board of trustees of Miami University in 97954
providing financial assistance to students in implementing the 97955
pilot tuition restructuring plan recognized in Section 89.05 of 97956
Am. Sub. H.B. 95 of the 125th General Assembly and again 97957
recognized by this act.97958

       Except for Miami University, in implementing the pilot 97959
tuition restructuring plan recognized in Section 89.05 of Am. Sub. 97960
H.B. 95 of the 125th General Assembly and again recognized by this 97961
act, each state-assisted institution of higher education in its97962
statement of charges to students shall separately identify the97963
instructional fee, the general fee, the tuition charge, and the97964
tuition surcharge. Fee charges to students for instruction shall97965
not be considered to be a price of service but shall be considered97966
to be an integral part of the state government financing program97967
in support of higher educational opportunity for students.97968

       In providing the appropriations in support of instructional97969
services at state-assisted institutions of higher education and97970
the appropriations for other instruction it is the intent of the97971
General Assembly that faculty members shall devote a proper and97972
judicious part of their work week to the actual instruction of97973
students. Total class credit hours of production per quarter per97974
full-time faculty member is expected to meet the standards set97975
forth in the budget data submitted by the Board of Regents.97976

       The authority of government vested by law in the boards of97977
trustees of state-assisted institutions of higher education shall97978
in fact be exercised by those boards. Boards of trustees may97979
consult extensively with appropriate student and faculty groups.97980
Administrative decisions about the utilization of available97981
resources, about organizational structure, about disciplinary97982
procedure, about the operation and staffing of all auxiliary97983
facilities, and about administrative personnel shall be the97984
exclusive prerogative of boards of trustees. Any delegation of97985
authority by a board of trustees in other areas of responsibility97986
shall be accompanied by appropriate standards of guidance97987
concerning expected objectives in the exercise of such delegated97988
authority and shall be accompanied by periodic review of the97989
exercise of this delegated authority to the end that the public97990
interest, in contrast to any institutional or special interest,97991
shall be served.97992

       Section 209.63.63. STUDENT SUPPORT SERVICES97993

       The foregoing appropriation item 235-502, Student Support97994
Services, shall be distributed by the Board of Regents to Ohio's97995
state-assisted colleges and universities that incur97996
disproportionate costs in the provision of support services to97997
disabled students.97998

       Section 209.63.66. OHIO INSTRUCTIONAL GRANTS97999

       In fiscal year 2006, instructional grants for all eligible 98000
full-time students shall be made using the tables under section 98001
3333.12 of the Revised Code. In fiscal year 2007, instructional 98002
grants for all eligible full-time students who have attended a 98003
college, university, or proprietary school and have completed 98004
coursework for college credit, excluding early college high school 98005
and post-secondary enrollment option students, prior to academic 98006
year 2006-2007, shall be made using the tables under section 98007
3333.12 of the Revised Code.98008

       Of the foregoing appropriation item 235-503, Ohio 98009
Instructional Grants, an amount in each fiscal year shall be used 98010
to make the payments authorized by division (C) of section 3333.26 98011
of the Revised Code to the institutions described in that 98012
division. In addition, an amount in each fiscal year shall be used 98013
to reimburse the institutions described in division (B) of section 98014
3333.26 of the Revised Code for the cost of the waivers required 98015
by that division.98016

       The unencumbered balance of appropriation item 235-503, Ohio 98017
Instructional Grants, at the end of fiscal year 2006 shall be 98018
transferred to fiscal year 2007 for use under the same 98019
appropriation item. The amounts transferred are hereby 98020
appropriated.98021

       Section 209.63.69.  WAR ORPHANS SCHOLARSHIPS98022

       The foregoing appropriation item 235-504, War Orphans98023
Scholarships, shall be used to reimburse state-assisted98024
institutions of higher education for waivers of instructional fees98025
and general fees provided by them, to provide grants to98026
institutions that have received a certificate of authorization98027
from the Ohio Board of Regents under Chapter 1713. of the Revised98028
Code, in accordance with the provisions of section 5910.04 of the98029
Revised Code, and to fund additional scholarship benefits provided98030
by section 5910.032 of the Revised Code.98031

       Section 209.63.72. OHIOLINK98032

       The foregoing appropriation item 235-507, OhioLINK, shall be 98033
used by the Board of Regents to support OhioLINK, the state's 98034
electronic library information and retrieval system, which 98035
provides access statewide to the library holdings of all of Ohio's 98036
public colleges and universities, 40 private colleges, and the 98037
State Library of Ohio.98038

       Section 209.63.75. AIR FORCE INSTITUTE OF TECHNOLOGY98039

       The foregoing appropriation item 235-508, Air Force Institute 98040
of Technology, shall be used to strengthen the research and 98041
educational linkages between the Wright Patterson Air Force Base 98042
and institutions of higher education in Ohio. Of the foregoing 98043
appropriation item 235-508, Air Force Institute of Technology, 98044
$1,233,588 in each fiscal year shall be used for research projects 98045
that connect the Air Force Research Laboratories with university 98046
partners. The institute shall provide annual reports to the Third 98047
Frontier Commission, that discuss existing, planned, or possible 98048
collaborations between programs and funding recipients related to 98049
technology, research development, commercialization, and support 98050
for Ohio's economic development.98051

       Of the foregoing appropriation item 235-508, Air Force 98052
Institute of Technology, $691,757 in each fiscal year shall be 98053
used to match federal dollars to support technology 98054
commercialization and job creation. The Development Research 98055
Corporation shall use the funds to create or expand Ohio-based 98056
technology and commercial development collaborations in areas that 98057
are a priority in Ohio's third frontier initiative between 98058
industry, academia, and government.98059

       Section 209.63.78.  OHIO SUPERCOMPUTER CENTER98060

       The foregoing appropriation item 235-510, Ohio Supercomputer98061
Center, shall be used by the Board of Regents to support the98062
operation of the Ohio Super Computer Center, located at The Ohio 98063
State University, as a statewide resource available to Ohio 98064
research universities both public and private. It is also intended 98065
that the center be made accessible to private industry as 98066
appropriate. Policies of the center shall be established by a98067
governance committee, representative of Ohio's research98068
universities and private industry, to be appointed by the98069
Chancellor of the Board of Regents and established for this98070
purpose.98071

       The Ohio Supercomputer Center shall report on expanding 98072
solutions-oriented, computational science services to industrial 98073
and other customers, including alignment programs and recipients, 98074
and develop a plan for a computational science initiative in 98075
collaboration with the Wright Centers of Innovation Program.98076

       Of the foregoing appropriation item 235-510, Ohio 98077
Supercomputer Center, $250,000 in each fiscal year shall be used 98078
to support the Super Computer Center in Beavercreek.98079

       Section 209.63.81.  COOPERATIVE EXTENSION SERVICE98080

       The foregoing appropriation item 235-511, Cooperative 98081
Extension Service, shall be disbursed through the Board of Regents 98082
to The Ohio State University in monthly payments, unless otherwise 98083
determined by the Director of Budget and Management under section 98084
126.09 of the Revised Code.98085

       Of the foregoing appropriation item 235-511, Cooperative98086
Extension Service, $178,271 in each fiscal year shall be used for98087
additional staffing for county agents for expanded 4-H activities.98088
Of the foregoing appropriation item 235-511, Cooperative Extension98089
Service, $178,271 in each fiscal year shall be used by the98090
Cooperative Extension Service, through the Enterprise Center for98091
Economic Development in cooperation with other agencies, for a98092
public-private effort to create and operate a small business98093
economic development program to enhance the development of98094
alternatives to the growing of tobacco, and implement, through98095
applied research and demonstration, the production and marketing98096
of other high-value crops and value-added products. Of the98097
foregoing appropriation item 235-511, Cooperative Extension98098
Service, $55,179 in each fiscal year shall be used for farm labor98099
mediation and education programs, $182,515 in each fiscal year 98100
shall be used to support the Ohio State University Marion 98101
Enterprise Center, and $772,931 in each fiscal year shall be used 98102
to support the Ohio Watersheds Initiative.98103

       Section 209.63.84.  OHIO UNIVERSITY VOINOVICH CENTER98104

       The foregoing appropriation item 235-513, Ohio University 98105
Voinovich Center, shall be used by the Board of Regents to support 98106
the operations of Ohio University's Voinovich Center.98107

       Section 209.63.90. PERFORMANCE STANDARDS FOR MEDICAL 98108
EDUCATION98109

       The Board of Regents, in consultation with the state-assisted 98110
medical colleges, shall develop performance standards for medical98111
education. Special emphasis in the standards shall be placed on 98112
attempting to ensure that at least 50 per cent of the aggregate 98113
number of students enrolled in state-assisted medical colleges 98114
continue to enter residency as primary care physicians. Primary 98115
care physicians are general family practice physicians, general 98116
internal medicine practitioners, and general pediatric care98117
physicians. The Board of Regents shall monitor medical school98118
performance in relation to their plans for reaching the 50 per98119
cent systemwide standard for primary care physicians.98120

       Section 209.63.93. CASE WESTERN RESERVE UNIVERSITY SCHOOL OF 98121
MEDICINE98122

       The foregoing appropriation item 235-515, Case Western98123
Reserve University School of Medicine, shall be disbursed to Case98124
Western Reserve University through the Board of Regents in98125
accordance with agreements entered into under section 3333.10 of 98126
the Revised Code, provided that the state support per full-time 98127
medical student shall not exceed that provided to full-time 98128
medical students at state universities.98129

       Section 209.63.94.  CAPITOL SCHOLARSHIP PROGRAM98130

        The foregoing appropriation item 235-518, Capitol Scholarship 98131
Program, shall be used by the Board of Regents to provide 98132
scholarships to undergraduates of Ohio's four-year public and 98133
private institutions of higher education participating in the 98134
Washington Center Internship Program. A scholarship of $1,800 98135
shall be awarded to students enrolled in an institution operating 98136
on a quarter system, and a scholarship of $2,300 shall be awarded 98137
to students enrolled in an institution operating on a semester 98138
system. The number of scholarships awarded shall be limited by the 98139
amounts appropriated in fiscal years 2006 and 2007. The Washington 98140
Center shall match the scholarships awarded to students as 98141
follows: $1,200 for students enrolled in an institution operating 98142
on a quarter system, and $1,700 for students enrolled in an 98143
institution operating on a semester system.98144

       Section 209.63.95. FAMILY PRACTICE98145

       The Board of Regents shall develop plans consistent with 98146
existing criteria and guidelines as may be required for the 98147
distribution of appropriation item 235-519, Family Practice.98148

       Section 209.63.96. SHAWNEE STATE SUPPLEMENT98149

       The foregoing appropriation item 235-520, Shawnee State98150
Supplement, shall be used by Shawnee State University as detailed98151
by both of the following:98152

       (A) To allow Shawnee State University to keep its98153
undergraduate fees below the statewide average, consistent with98154
its mission of service to an economically depressed Appalachian98155
region;98156

       (B) To allow Shawnee State University to employ new faculty98157
to develop and teach in new degree programs that meet the needs of98158
Appalachians.98159

       Section 209.63.99.  OSU GLENN INSTITUTE98160

       The foregoing appropriation item 235-521, The Ohio State 98161
University Glenn Institute, shall be used by the Board of Regents 98162
to support the operations of the Ohio State University's Glenn 98163
Institute.98164

       Section 209.64.03. POLICE AND FIRE PROTECTION98165

       The foregoing appropriation item 235-524, Police and Fire98166
Protection, shall be used for police and fire services in the98167
municipalities of Kent, Athens, Oxford, Fairborn, Bowling Green,98168
Portsmouth, Xenia Township (Greene County), Rootstown Township, 98169
and the City of Nelsonville that may be used to assist these local 98170
governments in providing police and fire protection for the 98171
central campus of the state-affiliated university located therein. 98172
Each participating municipality and township shall receive at 98173
least $5,000 in each fiscal year. Funds shall be distributed 98174
according to the method employed by the Board of Regents in the 98175
previous biennium.98176

       Section 209.64.06.  GERIATRIC MEDICINE98177

       The Board of Regents shall develop plans consistent with98178
existing criteria and guidelines as may be required for the98179
distribution of appropriation item 235-525, Geriatric Medicine.98180

       Section 209.64.07.  PRIMARY CARE RESIDENCIES98181

       The Board of Regents shall develop plans consistent with 98182
existing criteria and guidelines as may be required for the 98183
distribution of appropriation item 235-526, Primary Care 98184
Residencies.98185

       The foregoing appropriation item 235-526, Primary Care 98186
Residencies, shall be distributed in each fiscal year of the 98187
biennium, based on whether or not the institution has submitted 98188
and gained approval for a plan. If the institution does not have 98189
an approved plan, it shall receive five per cent less funding per 98190
student than it would have received from its annual allocation. 98191
The remaining funding shall be distributed among those 98192
institutions that meet or exceed their targets.98193

       Section 209.64.09. OHIO AEROSPACE INSTITUTE98194

       The foregoing appropriation item 235-527, Ohio Aerospace98195
Institute, shall be distributed by the Board of Regents under98196
section 3333.042 of the Revised Code.98197

       The Board of Regents, in consultation with the Third Frontier 98198
Commission, shall develop a plan for providing for appropriate, 98199
value-added participation of the Ohio Aerospace Institute in Third 98200
Frontier Project proposals and grants.98201

       Section 209.64.12. ACADEMIC SCHOLARSHIPS98202

       The foregoing appropriation item 235-530, Academic98203
Scholarships, shall be used to provide academic scholarships to98204
students under section 3333.22 of the Revised Code.98205

       Section 209.64.15. STUDENT CHOICE GRANTS98206

       The foregoing appropriation item 235-531, Student Choice98207
Grants, shall be used to support the Student Choice Grant Program98208
created by section 3333.27 of the Revised Code. The unencumbered 98209
balance of appropriation item 235-531, Student Choice Grants, at 98210
the end of fiscal year 2006 shall be transferred to fiscal year 98211
2007 for use under the same appropriation item to maintain grant 98212
award amounts in fiscal year 2007 equal to the awards provided in 98213
fiscal year 2006. The amounts transferred are hereby appropriated.98214

       Section 209.64.18. STUDENT WORKFORCE DEVELOPMENT GRANTS98215

       The foregoing appropriation item 235-534, Student Workforce98216
Development Grants, shall be used to support the Student Workforce98217
Development Grant Program. The Board of Regents shall distribute 98218
grants to each eligible student in an academic year. The size of 98219
each grant award shall be determined by the Board of Regents based 98220
on the amount of funds available for the program. The unencumbered 98221
balance of appropriation item 235-534, Student Workforce 98222
Development Grants, at the end of fiscal year 2006 shall be 98223
transferred to fiscal year 2007 for use under the same 98224
appropriation item. The amounts transferred are hereby 98225
appropriated.98226

       Section 209.64.21. OHIO AGRICULTURAL RESEARCH AND DEVELOPMENT 98227
CENTER98228

       The foregoing appropriation item 235-535, Ohio Agricultural 98229
Research and Development Center, shall be disbursed through the 98230
Board of Regents to The Ohio State University in monthly payments, 98231
unless otherwise determined by the Director of Budget and 98232
Management under section 126.09 of the Revised Code. The Ohio 98233
Agricultural Research and Development Center shall not be required 98234
to remit payment to The Ohio State University during the biennium 98235
ending June 30, 2007, for cost reallocation assessments. The cost 98236
reallocation assessments include, but are not limited to, any 98237
assessment on state appropriations to the Center.98238

       The Ohio Agricultural Research and Development Center, an 98239
entity of the College of Food, Agricultural, and Environmental 98240
Sciences of The Ohio State University, shall further its mission 98241
of enhancing Ohio's economic development and job creation by 98242
continuing to internally allocate on a competitive basis 98243
appropriated funding of programs based on demonstrated 98244
performance. Academic units, faculty, and faculty-driven programs 98245
shall be evaluated and rewarded consistent with agreed-upon 98246
performance expectations as called for in the College's 98247
Expectations and Criteria for Performance Assessment.98248

       Of the foregoing appropriation item 235-535, Ohio 98249
Agricultural Research and Development Center, $458,410 in each 98250
fiscal year shall be used to purchase equipment.98251

       Of the foregoing appropriation item 235-535, Ohio98252
Agricultural Research and Development Center, $806,463 in each 98253
fiscal year shall be distributed to the Piketon Agricultural98254
Research and Extension Center.98255

       Of the foregoing appropriation item 235-535, Ohio98256
Agricultural Research and Development Center, $212,227 in each 98257
fiscal year shall be distributed to the98258
Raspberry/Strawberry-Ellagic Acid Research program at The Ohio98259
State University Medical College in cooperation with The Ohio98260
State University College of Agriculture.98261

       Of the foregoing appropriation item 235-535, Ohio98262
Agricultural Research and Development Center, $42,445 in each 98263
fiscal year shall be used to support the Ohio Berry Administrator.98264

       Of the foregoing appropriation item 235-535, Ohio98265
Agricultural Research and Development Center, $84,890 in each 98266
fiscal year shall be used for the development of agricultural98267
crops and products not currently in widespread production in Ohio,98268
in order to increase the income and viability of family farmers.98269

       Of the foregoing appropriation item 235-535, Ohio 98270
Agricultural Research and Development Center, $125,000 in each 98271
fiscal year shall be distributed to Wilmington College for the 98272
commercialization of agricultural products.98273

       Section 209.64.22. STATE UNIVERSITY CLINICAL TEACHING98274

       The foregoing appropriation items 235-536, The Ohio State 98275
University Clinical Teaching; 235-537, University of Cincinnati 98276
Clinical Teaching; 235-538, Medical University of Ohio at Toledo 98277
Clinical Teaching; 235-539, Wright State University Clinical 98278
Teaching; 235-540, Ohio University Clinical Teaching; and 235-541, 98279
Northeastern Ohio Universities College of Medicine Clinical 98280
Teaching, shall be distributed through the Board of Regents.98281

       Of the foregoing appropriation item 235-539, Wright State 98282
University Clinical Teaching, $124,644 in each fiscal year of the 98283
biennium shall be for the use of Wright State University's Ellis 98284
Institute for Clinical Teaching Studies to operate the clinical 98285
facility to serve the Greater Dayton area.98286

       The Board of Regents, in consultation with representatives of 98287
each of the six state-assisted colleges of medicine, shall study 98288
and propose recommendations for a formula to allocate 98289
appropriations for clinical teaching support. The consultation 98290
shall consider factors that reward medical schools for serving 98291
Ohio's health care needs in an equitable and efficient manner. 98292
Recommendations shall be submitted to the Office of Budget and 98293
Management and the General Assembly for consideration by November 98294
15, 2006. A new method, approved by the Office of Budget and 98295
Management and the General Assembly, shall be implemented in 98296
fiscal years 2008 and 2009 for distributing funds for clinical 98297
teaching support.98298

       Section 209.64.23. SCHOOL OF INTERNATIONAL BUSINESS98299

       Of the foregoing appropriation item 235-547, School of98300
International Business, $250,000 in each fiscal year shall be used 98301
for the continued development and support of the School of98302
International Business of the state universities of northeast98303
Ohio. The money shall go to the University of Akron. These funds98304
shall be used by the university to establish a School of98305
International Business located at the University of Akron. It may98306
confer with Kent State University, Youngstown State University,98307
and Cleveland State University as to the curriculum and other98308
matters regarding the school.98309

       Of the foregoing appropriation item 235-547, School of98310
International Business, $100,000 in each fiscal year shall be used98311
by the University of Toledo College of Business for expansion of98312
its international business programs.98313

       Of the foregoing appropriation item 235-547, School of98314
International Business, $100,000 in each fiscal year shall be used 98315
to support the Ohio State University BioMEMS program.98316

       Section 209.64.24. PART-TIME STUDENT INSTRUCTIONAL GRANTS98317

       The foregoing appropriation item 235-549, Part-time Student98318
Instructional Grants, shall be used to support a grant program for98319
part-time undergraduate students who are Ohio residents and who98320
were enrolled in degree granting programs prior to academic year 98321
2006-2007.98322

       Eligibility for participation in the program shall include98323
degree granting educational institutions that hold a certificate98324
of registration from the State Board of Career Colleges and 98325
Schools, and nonprofit institutions that have a certificate of 98326
authorization issued under Chapter 1713. of the Revised Code, as 98327
well as state-assisted colleges and universities. Grants shall be 98328
given to students on the basis of need, as determined by the 98329
college, which, in making these determinations, shall give special 98330
consideration to single-parent heads-of-household and displaced 98331
homemakers who enroll in an educational degree program that 98332
prepares the individual for a career. In determining need, the 98333
college also shall consider the availability of educational98334
assistance from a student's employer. It is the intent of the98335
General Assembly that these grants not supplant such assistance.98336

       Section 209.64.27. CAPITAL COMPONENT98337

       The foregoing appropriation item 235-552, Capital Component,98338
shall be used by the Board of Regents to implement the capital98339
funding policy for state-assisted colleges and universities98340
established in Am. H.B. No. 748 of the 121st General Assembly.98341
Appropriations from this item shall be distributed to all campuses98342
for which the estimated campus debt service attributable to new98343
qualifying capital projects is less than the campus's98344
formula-determined capital component allocation. Campus98345
allocations shall be determined by subtracting the estimated98346
campus debt service attributable to new qualifying capital98347
projects from the campus's formula-determined capital component98348
allocation. Moneys distributed from this appropriation item shall98349
be restricted to capital-related purposes.98350

       Any campus for which the estimated campus debt service 98351
attributable to qualifying capital projects is greater than the 98352
campus's formula-determined capital component allocation shall 98353
have the difference subtracted from its State Share of Instruction 98354
allocation in each fiscal year. The sum of all such amounts shall 98355
be transferred from appropriation item 235-501, State Share of 98356
Instruction, to appropriation item 235-552, Capital Component.98357

       Section 209.64.30. DAYTON AREA GRADUATE STUDIES INSTITUTE98358

       The foregoing appropriation item 235-553, Dayton Area98359
Graduate Studies Institute, shall be used by the Board of Regents98360
to support the Dayton Area Graduate Studies Institute, an98361
engineering graduate consortium of three universities in the98362
Dayton area: Wright State University, the University of Dayton,98363
and the Air Force Institute of Technology, with the participation98364
of the University of Cincinnati and The Ohio State University.98365

       Of the foregoing appropriation item 235-553, Dayton Area 98366
Graduate Studies Institute, $350,000 in each fiscal year shall be 98367
used by the Development Research Corporation to support 98368
collaborative research and technology commercialization 98369
initiatives in Ohio.98370

       Section 209.64.33. PRIORITIES IN COLLABORATIVE GRADUATE 98371
EDUCATION98372

       The foregoing appropriation item 235-554, Priorities in 98373
Collaborative Graduate Education, shall be used by the Board of 98374
Regents to support improvements in graduate programs at98375
state-assisted universities that the Board of Regents identifies 98376
as vital to the state's economic strategy. Up to $169,782 in each 98377
fiscal year shall be used to support collaborative efforts in 98378
graduate education in this program area. The collaborative program 98379
shall be coordinated by the Board of Regents.98380

       Section 209.64.36. OHIO ACADEMIC RESOURCES NETWORK (OARNET)98381

       The foregoing appropriation item 235-556, Ohio Academic98382
Resources Network, shall be used to support the operations of the98383
Ohio Academic Resources Network, which shall include support for98384
Ohio's state-assisted colleges and universities in maintaining and98385
enhancing network connections. The network shall give priority to 98386
supporting the Third Frontier Network and allocating bandwidth to 98387
programs directly supporting Ohio's economic development.98388

       Section 209.64.39. LONG-TERM CARE RESEARCH98389

       The foregoing appropriation item 235-558, Long-term Care98390
Research, shall be disbursed to Miami University for long-term98391
care research.98392

       Section 209.64.45. BOWLING GREEN STATE UNIVERSITY CANADIAN 98393
STUDIES CENTER98394

       The foregoing appropriation item 235-561, Bowling Green State98395
University Canadian Studies Center, shall be used by the Canadian98396
Studies Center at Bowling Green State University to study98397
opportunities for Ohio and Ohio businesses to benefit from the98398
Free Trade Agreement between the United States and Canada.98399

       Section 209.64.51.  OHIO COLLEGE OPPORTUNITY GRANT PHASE-IN98400

       The foregoing appropriation item 235-563, Ohio College 98401
Opportunity Grant, shall be used by the Board of Regents to begin 98402
to award needs-based financial aid to students based on the United 98403
States Department of Education's method of determining financial 98404
need. Beginning in fiscal year 2007, students who enrolled in a 98405
public, private, or proprietary post-secondary institution of 98406
higher education for the first time in academic year 2006-2007, 98407
excluding early college high school and post-secondary enrollment 98408
option participants, shall be eligible to receive aid based on 98409
their expected family contributions as calculated by the United 98410
State Department of Education, according to section 3333.122 of 98411
the Revised Code.98412

       Section 209.64.54. THE OHIO STATE UNIVERSITY CLINIC SUPPORT98413

       The foregoing appropriation item 235-572, The Ohio State98414
University Clinic Support, shall be distributed through the Board98415
of Regents to The Ohio State University for support of dental and98416
veterinary medicine clinics.98417

       Section 209.64.57. URBAN UNIVERSITY PROGRAM98418

       Universities receiving funds from the foregoing appropriation 98419
item 235-583, Urban University Program, that are used to support98420
an ongoing university unit shall certify periodically in a manner98421
approved by the Board of Regents that program funds are being98422
matched on a one-to-one basis with equivalent resources. Overhead98423
support may not be used to meet this requirement. Where Urban98424
University Program funds are being used to support an ongoing98425
university unit, matching funds shall come from continuing rather98426
than one-time sources. At each participating state-assisted98427
institution of higher education, matching funds shall be within 98428
the substantial control of the individual designated by the98429
institution's president as the Urban University Program98430
representative.98431

       Of the foregoing appropriation item 235-583, Urban University98432
Program, $117,215 in each fiscal year shall be used to support the 98433
Center for the Interdisciplinary Study of Education and the Urban 98434
Child at Cleveland State University. These funds shall be98435
distributed according to rules adopted by the Board of Regents and98436
shall be used by the center for interdisciplinary activities98437
targeted toward increasing the chance of lifetime success of the98438
urban child, including interventions beginning with the prenatal98439
period. The primary purpose of the center is to study issues in98440
urban education and to systematically map directions for new98441
approaches and new solutions by bringing together a cadre of98442
researchers, scholars, and professionals representing the social,98443
behavioral, education, and health disciplines.98444

       Of the foregoing appropriation item 235-583, Urban University98445
Program, $1,433,037 in each fiscal year shall be distributed by98446
the Board of Regents to Cleveland State University in support of98447
the Maxine Goodman Levin College of Urban Affairs.98448

       Of the foregoing appropriation item 235-583, Urban University98449
Program, $1,433,037 in each fiscal year shall be distributed to98450
the Northeast Ohio Research Consortium, the Urban Linkages98451
Program, and the Urban Research Technical Assistance Grant98452
Program. The distribution among the three programs shall be98453
determined by the chair of the Urban University Program.98454

       Of the foregoing appropriation item 235-583, Urban University98455
Program, $247,453 in each fiscal year shall be used to support a98456
public communication outreach program (WCPN). The primary purpose98457
of the program shall be to develop a relationship between98458
Cleveland State University and nonprofit communications entities.98459

       Of the foregoing appropriation item 235-583, Urban University98460
Program, $169,310 in each fiscal year shall be used to support the 98461
Kent State University Learning and Technology Project. This98462
project is a kindergarten through university collaboration between98463
schools surrounding Kent State University's eight campuses in 98464
northeast Ohio and corporate partners who will assist in 98465
development and delivery.98466

       The Kent State University Project shall provide a faculty98467
member who has a full-time role in the development of98468
collaborative activities and teacher instructional programming98469
between Kent State University and the K-12th grade schools that 98470
surround its eight campuses; appropriate student support staff to 98471
facilitate these programs and joint activities; and hardware and 98472
software to schools that will make possible the delivery of 98473
instruction to pre-service and in-service teachers, and their 98474
students, in their own classrooms or school buildings. This shall 98475
involve the delivery of low-bandwidth streaming video and 98476
web-based technologies in a distributed instructional model.98477

       Of the foregoing appropriation item 235-583, Urban University98478
Program, $65,119 in each fiscal year shall be used to support the98479
Ameritech Classroom/Center for Research at Kent State University.98480

       Of the foregoing appropriation item 235-583, Urban University98481
Program, $723,547 in each fiscal year shall be used to support the 98482
Polymer Distance Learning Project at the University of Akron.98483

       Of the foregoing appropriation item 235-583, Urban University98484
Program, $32,560 in each fiscal year shall be distributed to the98485
Kent State University/Cleveland Design Center program.98486

       Of the foregoing appropriation item 235-583, Urban University98487
Program, $180,886 in each fiscal year shall be used to support the 98488
Bliss Institute of Applied Politics at the University of Akron.98489

       Of the foregoing appropriation item 235-583, Urban University98490
Program, $10,851 in each fiscal year shall be used for the98491
Advancing-Up Program at the University of Akron.98492

       Of the foregoing appropriation item 235-583, Urban University 98493
Program, $139,777 in each fiscal year shall be used to support the 98494
Strategic Economic Research Collaborative at the University of 98495
Toledo Urban Affairs Center.98496

        Of the foregoing appropriation item 235-583, Urban University 98497
Program, $139,777 in each fiscal year shall be used to support the 98498
Institute for Collaborative Research and Public Humanities at The 98499
Ohio State University.98500

       Of the foregoing appropriation item 235-583, Urban University 98501
Program, $300,368 in each fiscal year shall be used to support the 98502
Medina County University Center.98503

       Section 209.64.60. RURAL UNIVERSITY PROJECTS98504

       Of the foregoing appropriation item 235-587, Rural University98505
Projects, Bowling Green State University shall receive $263,783 in 98506
each fiscal year, Miami University shall receive $245,320 in each 98507
fiscal year, and Ohio University shall receive $575,015 in each 98508
fiscal year. These funds shall be used to support the Institute98509
for Local Government Administration and Rural Development at Ohio98510
University, the Center for Public Management and Regional Affairs98511
at Miami University, and the Center for Policy Analysis and Public98512
Service at Bowling Green State University.98513

       A small portion of the funds provided to Ohio University98514
shall also be used for the Institute for Local Government98515
Administration and Rural Development State and Rural Policy98516
Partnership with the Governor's Office of Appalachia and the98517
Appalachian delegation of the General Assembly.98518

       Of the foregoing appropriation item 235-587, Rural University 98519
Projects, $15,942 in each fiscal year shall be used to support the 98520
Washington State Community College day care center.98521

        Of the foregoing appropriation item 235-587, Rural University 98522
Projects, $47,829 in each fiscal year shall be used to support the 98523
COAD/ILGARD/GOA Appalachian Leadership Initiative.98524

       Section 209.64.63. HAZARDOUS MATERIALS PROGRAM98525

       The foregoing appropriation item 235-596, Hazardous Materials98526
Program, shall be disbursed to Cleveland State University for the98527
operation of a program to certify firefighters for the handling of98528
hazardous materials. Training shall be available to all Ohio98529
firefighters.98530

       Of the foregoing appropriation item 235-596, Hazardous98531
Materials Program, $177,337 in each fiscal year shall be used to98532
support the Center for the Interdisciplinary Study of Education98533
and Leadership in Public Service at Cleveland State University.98534
These funds shall be distributed by the Board of Regents and shall98535
be used by the center targeted toward increasing the role of98536
special populations in public service and not-for-profit98537
organizations. The primary purpose of the center is to study98538
issues in public service and to guide strategies for attracting98539
new communities into public service occupations by bringing98540
together a cadre of researchers, scholars, and professionals98541
representing the public administration, social behavioral, and98542
education disciplines.98543

       Section 209.64.66. NATIONAL GUARD SCHOLARSHIP PROGRAM98544

       The Board of Regents shall disburse funds from appropriation98545
item 235-599, National Guard Scholarship Program, at the direction98546
of the Adjutant General. During each fiscal year, the Board of 98547
Regents, within ten days of cancellation, may certify to the 98548
Director of Budget and Management the amount of canceled 98549
prior-year encumbrances in appropriation item 235-599, National 98550
Guard Scholarship Program. Upon receipt of the certification, the 98551
Director of Budget and Management may transfer an amount up to the 98552
certified amount from the General Revenue Fund to the National 98553
Guard Scholarship Reserve Fund (Fund 5BM). Upon the request of the 98554
Adjutant General, the Board of Regents shall seek Controlling 98555
Board approval to establish appropriations in item 235-623, 98556
National Guard Scholarship Reserve Fund. The Board of Regents 98557
shall disburse funds from appropriation item 235-623, National 98558
Guard Scholarship Reserve Fund, at the direction of the Adjutant 98559
General.98560

       *       Section 209.64.69. PLEDGE OF FEES98561

       Any new pledge of fees, or new agreement for adjustment of98562
fees, made in the biennium ending June 30, 2007, to secure bonds 98563
or notes of a state-assisted institution of higher education for a 98564
project for which bonds or notes were not outstanding on the 98565
effective date of this section shall be effective only after 98566
approval by the Board of Regents, unless approved in a previous 98567
biennium.98568

       Section 209.64.72. HIGHER EDUCATION GENERAL OBLIGATION DEBT 98569
SERVICE98570

       The foregoing appropriation item 235-909, Higher Education98571
General Obligation Debt Service, shall be used to pay all debt98572
service and related financing costs at the times they are required 98573
to be made under sections 151.01 and 151.04 of the Revised Code98574
during the period from July 1, 2005, to June 30, 2007. The Office98575
of the Sinking Fund or the Director of Budget and Management shall98576
effectuate the required payments by intrastate transfer voucher.98577

       Section 209.64.75. SALES AND SERVICES98578

        The Board of Regents is authorized to charge and accept 98579
payment for the provision of goods and services. Such charges 98580
shall be reasonably related to the cost of producing the goods and 98581
services. No charges may be levied for goods or services that are 98582
produced as part of the routine responsibilities or duties of the 98583
Board. All revenues received by the Board of Regents shall be 98584
deposited into Fund 456, and may be used by the Board of Regents 98585
to pay for the costs of producing the goods and services.98586

       Section 209.64.76.  OHIO HIGHER EDUCATIONAL FACILITY 98587
COMMISSION SUPPORT98588

       The foregoing appropriation item 235-602, Higher Educational 98589
Facility Commission Administration, shall be used by the Board of 98590
Regents for operating expenses related to the Board of Regents' 98591
support of the activities of the Ohio Higher Educational Facility98592
Commission. Upon the request of the chancellor, the Director of98593
Budget and Management shall transfer up to $55,000 cash from Fund98594
461 to Fund 4E8 in each fiscal year of the biennium.98595

       Section 209.64.78. PHYSICIAN LOAN REPAYMENT98596

       The foregoing appropriation item 235-604, Physician Loan98597
Repayment, shall be used in accordance with sections 3702.71 to98598
3702.81 of the Revised Code.98599

       Section 209.64.81. NURSING LOAN PROGRAM98600

       The foregoing appropriation item 235-606, Nursing Loan98601
Program, shall be used to administer the nurse education98602
assistance program. Up to $159,600 in fiscal year 2006 and98603
$167,580 in fiscal year 2007 may be used for operating expenses98604
associated with the program. Any additional funds needed for the98605
administration of the program are subject to Controlling Board98606
approval.98607

       Section 209.64.84. SCIENCE AND TECHNOLOGY COLLABORATION98608

       The Board of Regents shall work in close collaboration with 98609
the Department of Development, the Air Quality Development 98610
Authority, and the Third Frontier Commission in relation to 98611
appropriation items and programs referred to as Alignment Programs 98612
in the following paragraph, and other technology-related98613
appropriations and programs in the Department of Development, Air 98614
Quality Development Authority, and the Board of Regents as these 98615
agencies may designate, to ensure implementation of a coherent 98616
state strategy with respect to science and technology.98617

       "Alignment Programs" means: appropriation items 195-401, 98618
Thomas Edison Program; 898-402, Coal Development Office; 195-422, 98619
Third Frontier Action Fund; 898-604, Coal Research and Development 98620
Fund; 235-433, Economic Growth Challenge; 235-451, Eminent 98621
Scholars; 235-508, Air Force Institute of Technology; 235-510, 98622
Ohio Supercomputer Center; 235-527, Ohio Aerospace Institute; 98623
235-535, Ohio Agricultural Research and Development Center; 98624
235-553, Dayton Area Graduate Studies Institute; 235-554, 98625
Priorities in Collaborative Graduate Education; 235-556, Ohio 98626
Academic Resources Network; and 195-435, Biomedical Research and 98627
Technology Transfer Trust.98628

        Consistent with the recommendations of the Governor's 98629
Commission on Higher Education and the Economy, Alignment Programs 98630
shall be managed and administered (1) to build on existing 98631
competitive research strengths; (2) to encourage new and emerging 98632
discoveries and commercialization of products and ideas that will 98633
benefit the Ohio economy; and (3) to assure improved collaboration 98634
among Alignment Programs, with programs administered by the Third 98635
Frontier Commission, and with other state programs that are 98636
intended to improve economic growth and job creation.98637

        If requested by the Third Frontier Commission, Alignment 98638
Programs managers shall report to the Commission or the Third 98639
Frontier Advisory Board, as directed by the Commission, on the 98640
contributions of their programs to achieving the objectives stated 98641
in the preceding paragraph of this section.98642

       Each alignment program shall be reviewed annually by the 98643
Third Frontier Commission with respect to its development of98644
complementary relationships within a combined state science and 98645
technology investment portfolio and its overall contribution to 98646
the state's science and technology strategy, including the 98647
adoption of appropriately consistent criteria for: (1) the 98648
scientific merit of activities supported by the program; (2) the 98649
relevance of the program's activities to commercial opportunities 98650
in the private sector; (3) the private sector's involvement in a 98651
process that continually evaluates commercial opportunities to use 98652
the work supported by the program; and (4) the ability of the 98653
program and recipients of grant funding from the program to engage 98654
in activities that are collaborative, complementary, and efficient 98655
with respect to the expenditure of state funds. All programs 98656
listed above shall provide annual reports to the Third Frontier 98657
Commission discussing existing, planned, or possible 98658
collaborations between programs and recipients of grant funding 98659
related to technology, development, commercialization, and 98660
supporting Ohio's economic development. The annual review by the98661
Third Frontier Commission shall be a comprehensive review of the 98662
entire state science and technology program portfolio rather than 98663
a review of individual programs.98664

       Applicants for Third Frontier and Alignment Programs funding 98665
shall identify their requirements for high-performance computing 98666
facilities and services, including both hardware and software, in 98667
the proposals. If an applicant's requirements exceed approximately 98668
$100,000 for a proposal, the Ohio Supercomputer Center shall 98669
convene a panel of experts. The panel shall review the proposal to 98670
determine whether the proposal's requirements can be met through 98671
Ohio Supercomputer Center facilities or through other means and 98672
report such information to the Third Frontier Commission.98673

        To ensure that the state receives the maximum benefit from 98674
its investment in the Third Frontier Project and the Third 98675
Frontier Network, organizations receiving Third Frontier awards 98676
and Alignment Programs awards shall, as appropriate, be expected 98677
to have a connection to the Third Frontier Network that enables 98678
them and their collaborators to achieve award objectives through 98679
the Third Frontier Network.98680

       Section 209.64.87. REPAYMENT OF RESEARCH FACILITY INVESTMENT98681
FUND MONEYS 98682

       Notwithstanding any provision of law to the contrary, all98683
repayments of Research Facility Investment Fund loans shall be98684
made to the Bond Service Trust Fund. All Research Facility98685
Investment Fund loan repayments made prior to the effective date98686
of this section shall be transferred by the Director of Budget and98687
Management to the Bond Service Trust Fund within sixty days after 98688
the effective date of this section.98689

       Campuses shall make timely repayments of Research Facility98690
Investment Fund loans, according to the schedule established by98691
the Board of Regents. In the case of late payments, the Board of98692
Regents may deduct from an institution's periodic subsidy98693
distribution an amount equal to the amount of the overdue payment98694
for that institution, transfer such amount to the Bond Service98695
Trust Fund, and credit the appropriate institution for the98696
repayment.98697

       Section 209.64.90. VETERANS' PREFERENCES98698

       The Board of Regents shall work with the Governor's Office of98699
Veterans' Affairs to develop specific veterans' preference98700
guidelines for higher education institutions. These guidelines98701
shall ensure that the institutions' hiring practices are in98702
accordance with the intent of Ohio's veterans' preference laws.98703

       Section 209.64.93. STATE NEED-BASED FINANCIAL AID 98704
RECONCILIATION98705

       By the first day of August in each fiscal year, or as soon 98706
thereafter as possible, the Ohio Board of Regents shall certify to 98707
the Director of Budget and Management the amount necessary to pay 98708
any outstanding prior year obligations to higher education 98709
institutions for the state's need-based financial aid programs. 98710
The amounts certified are hereby appropriated to appropriation 98711
item 235-618, State Need-based Financial Aid Reconciliation, from 98712
revenues received in the State Need-based Financial Aid 98713
Reconciliation Fund (Fund 5Y5).98714

       Section 209.64.96.  STUDY ON DISTRIBUTING STATE SHARE OF 98715
INSTRUCTION FUNDS BASED ON CAMPUS ADMINISTRATIVE AND OPERATIONAL 98716
EFFICIENCY98717

        The Board of Regents, in consultation with representatives of 98718
the higher education community, shall conduct a study on the 98719
feasibility of distributing a portion of GRF appropriation item 98720
235-501, State Share of Instruction, based on campus 98721
administrative and operational efficiency. The Board of Regents 98722
shall consider what statistic or statistics would be appropriate 98723
to measure administrative and operational efficiency and also 98724
shall consider what an adequate level of administrative support 98725
should be. The Board of Regents shall submit the results of the 98726
study to the Higher Education Funding Study Council not later than 98727
April 15, 2006.98728

       Section 209.64.99.  STUDY ON DISTRIBUTING STATE SHARE OF 98729
INSTRUCTION FUNDS BASED ON THE NUMBER OF DEGREES AND CERTIFICATES 98730
AWARDED98731

        The Board of Regents, in consultation with representatives 98732
from the higher education community, shall conduct a study on the 98733
feasibility of distributing a portion of GRF appropriation item 98734
235-501, State Share of Instruction, based on the number of 98735
Ohioans who are awarded certificates or associate's, 98736
baccalaureate, master's, or doctoral degrees. The study shall 98737
examine whether it is feasible to retain a portion of the State 98738
Share of Instruction distributed to the campuses until such times 98739
as the certificates or degrees are conferred, whether the existing 98740
appropriation is sufficient to fund such an initiative, and how 98741
much in additional funds might be necessary to significantly 98742
increase the number of certificates and degrees earned by Ohioans 98743
each year. The Board of Regents shall submit the results of the 98744
study to the Higher Education Funding Study Council not later than 98745
April 15, 2006.98746

       Section 209.65.03.  STUDY ON PROVIDING INCENTIVES FOR 98747
CERTIFICATE AND ASSOCIATE DEGREES98748

        The Board of Regents, in consultation with representatives 98749
from the higher education community, shall conduct a study on the 98750
feasibility of devising a performance-based grant to provide 98751
incentives to university branch campuses, community colleges, 98752
state community colleges, technical colleges, and the community 98753
and technical colleges at Youngstown State University, the 98754
University of Cincinnati, and The University of Akron to increase 98755
the number and proportion of Ohio students who receive a 98756
certificate or an associate degree, or who transfer to a four-year 98757
institution of higher education. In consultation with 98758
representatives from the higher education community, the Board of 98759
Regents shall develop measures of certification and degree 98760
completion, as well as transferal to a four-year institution of 98761
higher education. The Board of Regents shall recommend a formula, 98762
using the Success Challenge formula as a model, that will reward 98763
the public two-year campuses for the academic success of their 98764
undergraduate students. The Board of Regents shall submit the 98765
results of the study to the Higher Education Funding Study Council 98766
not later than April 15, 2006.98767

       Section 209.69.  DRC DEPARTMENT OF REHABILITATION AND98768
CORRECTION98769

General Revenue Fund 98770
GRF 501-321 Institutional Operations $ 857,371,490 $ 873,888,880 98771
GRF 501-403 Prisoner Compensation $ 8,599,255 $ 8,599,255 98772
GRF 501-405 Halfway House $ 38,104,924 $ 38,105,128 98773
GRF 501-406 Lease Rental Payments $ 132,370,500 $ 120,600,600 98774
GRF 501-407 Community Nonresidential Programs $ 15,383,471 $ 15,404,522 98775
GRF 501-408 Community Misdemeanor Programs $ 8,041,489 $ 8,041,489 98776
GRF 501-501 Community Residential Programs - CBCF $ 55,054,445 $ 55,054,445 98777
GRF 502-321 Mental Health Services $ 64,897,564 $ 66,055,754 98778
GRF 503-321 Parole and Community Operations $ 78,887,219 $ 80,708,911 98779
GRF 504-321 Administrative Operations $ 27,559,389 $ 28,147,730 98780
GRF 505-321 Institution Medical Services $ 159,926,575 $ 176,500,628 98781
GRF 506-321 Institution Education Services $ 22,727,366 $ 23,114,615 98782
GRF 507-321 Institution Recovery Services $ 6,946,286 $ 7,090,212 98783
TOTAL GRF General Revenue Fund $ 1,475,869,973 $ 1,501,312,169 98784

General Services Fund Group98785

148 501-602 Services and Agricultural $ 95,207,653 $ 95,207,653 98786
200 501-607 Ohio Penal Industries $ 38,000,000 $ 38,000,000 98787
4B0 501-601 Penitentiary Sewer Treatment Facility Services $ 1,758,177 $ 1,758,177 98788
4D4 501-603 Prisoner Programs $ 20,967,703 $ 20,967,703 98789
4L4 501-604 Transitional Control $ 1,593,794 $ 1,593,794 98790
4S5 501-608 Education Services $ 4,564,072 $ 4,564,072 98791
483 501-605 Property Receipts $ 393,491 $ 393,491 98792
5AF 501-609 State and Non-Federal Awards $ 262,718 $ 262,718 98793
5H8 501-617 Offender Financial Responsibility $ 2,000,000 $ 2,000,000 98794
5L6 501-611 Information Technology Services $ 3,741,980 $ 3,741,980 98795
571 501-606 Training Academy Receipts $ 75,190 $ 75,190 98796
593 501-618 Laboratory Services $ 5,799,999 $ 5,799,999 98797
TOTAL GSF General Services Fund Group $ 174,364,777 $ 174,364,777 98798

Federal Special Revenue Fund Group98799

3S1 501-615 Truth-In-Sentencing Grants $ 26,127,427 $ 26,127,427 98800
323 501-619 Federal Grants $ 12,198,353 $ 12,198,353 98801
TOTAL FED Federal Special Revenue 98802
Fund Group $ 38,325,780 $ 38,325,780 98803

State Special Revenue Fund Group98804

5CL 501-616 Sex Offender Supervision $ 100,000 $ 75,000 98805
Total SSR State Special Revenue Fund Group $ 100,000 $ 75,000 98806

TOTAL ALL BUDGET FUND GROUPS $ 1,688,660,530 $ 1,714,077,726 98807

       HALFWAY HOUSE TRANSFERS98808

        The Department of Rehabilitation and Correction shall seek 98809
the approval of the Controlling Board to transfer in each of 98810
fiscal years 2006 and 2007 from the unexpended, unobligated GRF 98811
appropriations made to the Department for fiscal years 2006 and 98812
2007 at least $500,000 per fiscal year in appropriation authority 98813
to appropriation item 501-405, Halfway House.98814

       OHIO BUILDING AUTHORITY LEASE PAYMENTS98815

       The foregoing appropriation item 501-406, Lease Rental98816
Payments, shall be used for payments to the Ohio Building98817
Authority for the period July 1, 2005, to June 30, 2007, under the 98818
primary leases and agreements for those buildings made under 98819
Chapter 152. of the Revised Code but limited to the aggregate 98820
amount of $252,971,100. This appropriation amount is the source of 98821
funds pledged for bond service charges on related obligations 98822
issued under Chapter 152. of the Revised Code.98823

       PRISONER COMPENSATION98824

       Money from the foregoing appropriation item 501-403, Prisoner98825
Compensation, shall be transferred on a quarterly basis by98826
intrastate transfer voucher to the Services and Agricultural Fund 98827
(Fund 148) for the purposes of paying prisoner compensation.98828

       SEX OFFENDER SUPERVISION98829

        On July 1, 2005, or as soon as practicable thereafter, the 98830
Director of Budget and Management shall transfer $100,000 in cash 98831
from the Reparations Fund (Fund 402) to the Sex Offender 98832
Supervision Fund (Fund 5CL). On July 1, 2006, or as soon as 98833
practicable thereafter, the Director of Budget and Management 98834
shall transfer $75,000 in cash from the Reparations Fund (Fund 98835
402) to the Sex Offender Supervision Fund (Fund 5CL).98836

        The foregoing appropriation item 501-616, Sex Offender 98837
Supervision, shall be used by the Department of Rehabilitation and 98838
Correction solely to pay for the costs incurred by the Adult 98839
Parole Authority in supervising sexually violent predators 98840
released from prison as required by section 2971.05 of the Revised 98841
Code. At the end of each fiscal year, or as soon as possible 98842
thereafter, the Director of Budget and Management shall transfer 98843
back to the Reparations Fund any unexpended, unencumbered cash in 98844
the Sex Offender Supervision Fund not needed in that fiscal year 98845
for the sole purpose of paying for the costs of supervising 98846
sexually violent predators released from prison.98847

       Section 209.72.  RSC REHABILITATION SERVICES COMMISSION98848

General Revenue Fund98849

GRF 415-100 Personal Services $ 8,851,468 $ 8,851,468 98850
GRF 415-402 Independent Living Council $ 12,280 $ 12,280 98851
GRF 415-403 Mental Health Services $ 717,221 $ 717,221 98852
GRF 415-404 MR/DD Services $ 1,260,816 $ 1,260,816 98853
GRF 415-405 Vocational Rehabilitation/Job and Family Services $ 536,912 $ 536,912 98854
GRF 415-406 Assistive Technology $ 47,531 $ 47,531 98855
GRF 415-431 Office for People with Brain Injury $ 226,012 $ 226,012 98856
GRF 415-506 Services for People with Disabilities $ 12,185,215 $ 12,185,215 98857
GRF 415-508 Services for the Deaf $ 50,000 $ 50,000 98858
GRF 415-509 Services for the Elderly $ 359,377 $ 359,377 98859
GRF 415-520 Independent Living Services $ 50,000 $ 50,000 98860
TOTAL GRF General Revenue Fund $ 24,296,832 $ 24,296,832 98861

General Services Fund Group98862

4W5 415-606 Program Management Expenses $ 18,557,040 $ 18,557,040 98863
467 415-609 Business Enterprise Operating Expenses $ 1,632,082 $ 1,632,082 98864
TOTAL GSF General Services 98865
Fund Group $ 20,189,122 $ 20,189,122 98866

Federal Special Revenue Fund Group98867

3L1 415-601 Social Security Personal Care Assistance $ 3,743,740 $ 3,743,740 98868
3L1 415-605 Social Security Community Centers for the Deaf $ 1,100,488 $ 1,100,488 98869
3L1 415-607 Social Security Administration Cost $ 175,860 $ 175,860 98870
3L1 415-608 Social Security Special Programs/Assistance $ 2,246,991 $ 131,716 98871
3L1 415-610 Social Security Vocational Rehabilitation $ 1,336,324 $ 1,338,324 98872
3L1 415-614 Social Security Independent Living $ 154,942 $ 0 98873
3L4 415-612 Federal Independent Living Centers or Services $ 894,662 $ 686,520 98874
3L4 415-615 Federal - Supported Employment $ 1,338,191 $ 1,338,191 98875
3L4 415-617 Independent Living/Vocational Rehabilitation Programs $ 1,508,885 $ 1,608,885 98876
317 415-620 Disability Determination $ 82,870,347 $ 87,999,369 98877
379 415-616 Federal - Vocational Rehabilitation $ 123,565,158 $ 119,998,470 98878
TOTAL FED Federal Special 98879
Revenue Fund Group $ 218,935,588 $ 218,121,563 98880

State Special Revenue Fund Group98881

4L1 415-619 Services for Rehabilitation $ 4,500,000 $ 4,500,000 98882
468 415-618 Third Party Funding $ 1,055,407 $ 1,105,407 98883
TOTAL SSR State Special 98884
Revenue Fund Group $ 5,555,407 $ 5,605,407 98885
TOTAL ALL BUDGET FUND GROUPS $ 268,976,949 $ 268,212,924 98886

       INDEPENDENT LIVING COUNCIL98887

       The foregoing appropriation item 415-402, Independent Living98888
Council, shall be used to fund the operations of the State98889
Independent Living Council.98890

       MENTAL HEALTH SERVICES98891

       The foregoing appropriation item 415-403, Mental Health98892
Services, shall be used for the provision of vocational98893
rehabilitation services to mutually eligible consumers of the98894
Rehabilitation Services Commission and the Department of Mental98895
Health.98896

       The Rehabilitation Services Commission shall provide the 98897
Department of Mental Health a quarterly report stating the numbers 98898
served, numbers placed in employment, average hourly wage, and 98899
average hours worked.98900

       MR/DD SERVICES98901

       The foregoing appropriation item 415-404, MR/DD Services,98902
shall be used as state matching funds to provide vocational98903
rehabilitation services to mutually eligible clients between the98904
Rehabilitation Services Commission and the Department of Mental98905
Retardation and Developmental Disabilities. The Rehabilitation98906
Services Commission shall report to the Department of Mental98907
Retardation and Developmental Disabilities, as outlined in an98908
interagency agreement, on the number and status of mutually98909
eligible clients and the status of the funds and expenditures for98910
these clients.98911

       VOCATIONAL REHABILITATION/JOB AND FAMILY SERVICES98912

       The foregoing appropriation item 415-405, Vocational98913
Rehabilitation/Job and Family Services, shall be used as state98914
matching funds to provide vocational rehabilitation services to98915
mutually eligible clients between the Rehabilitation Services98916
Commission and the Department of Job and Family Services. The98917
Rehabilitation Services Commission shall report to the Department98918
of Job and Family Services, as outlined in an interagency98919
agreement, on the number and status of mutually eligible clients98920
and the status of the funds and expenditures for these clients.98921

       ASSISTIVE TECHNOLOGY98922

       The foregoing appropriation item 415-406, Assistive98923
Technology, shall be provided to Assistive Technology of Ohio and98924
shall be used only to provide grants under that program. No amount 98925
of the appropriation may be used for administrative costs.98926

       OFFICE FOR PEOPLE WITH BRAIN INJURY98927

       Of the foregoing appropriation item 415-431, Office for98928
People with Brain Injury, up to $50,000 in each fiscal year shall 98929
be used for the state match for a federal grant awarded through 98930
the Traumatic Brain Injury Act, Pub. L. No. 104-166, and up to 98931
$50,000 in each fiscal year shall be provided to the Brain Injury 98932
Trust Fund. The remaining appropriation shall be used to plan and98933
coordinate head-injury-related services provided by state agencies 98934
and other government or private entities, to assess the needs for 98935
such services, and to set priorities in this area.98936

       SERVICES FOR THE DEAF98937

       The foregoing appropriation item 415-508, Services for the 98938
Deaf, shall be used to supplement Social Security reimbursement 98939
funds used to provide grants to community centers for the deaf. 98940
These funds shall not be used in lieu of Social Security 98941
reimbursement funds.98942

       SERVICES FOR THE ELDERLY98943

       The foregoing appropriation item 415-509, Services for the98944
Elderly, shall be used as matching funds for vocational98945
rehabilitation services for eligible elderly citizens with a98946
disability.98947

       INDEPENDENT LIVING SERVICES98948

       The foregoing appropriation items 415-520, Independent Living98949
Services, and 415-612, Federal - Independent Living Centers or98950
Services, shall be used to support state independent living98951
centers or independent living services under Title VII of the 98952
Independent Living Services and Centers for Independent Living of 98953
the Rehabilitation Act Amendments of 1992, 106 Stat. 4344, 2998954
U.S.C. 796d.98955

       PROGRAM MANAGEMENT EXPENSES98956

       The foregoing appropriation item 415-606, Program Management98957
Expenses, shall be used to support the administrative functions of98958
the commission related to the provision of vocational98959
rehabilitation, disability determination services, and ancillary98960
programs.98961

       INDEPENDENT LIVING/VOCATIONAL REHABILITATION PROGRAMS98962

       The foregoing appropriation item 415-617, Independent98963
Living/Vocational Rehabilitation Programs, shall be used to98964
support vocational rehabilitation programs, including, but not98965
limited to, high tech high schools, training, and brain injury 98966
grants.98967

       SOCIAL SECURITY REIMBURSEMENT FUNDS98968

       Reimbursement funds received from the Social Security98969
Administration, United States Department of Health and Human98970
Services, for the costs of providing services and training to98971
return disability recipients to gainful employment shall be used98972
in the Social Security Reimbursement Fund (Fund 3L1), as follows:98973

       (A) Appropriation item 415-601, Social Security Personal Care 98974
Assistance, to provide personal care services in accordance with 98975
section 3304.41 of the Revised Code;98976

       (B) Appropriation item 415-605, Social Security Community98977
Centers for the Deaf, to provide grants to community centers for98978
the deaf in Ohio for services to individuals with hearing98979
impairments;98980

       (C) Appropriation item 415-607, Social Security98981
Administration Cost, to provide administrative services needed to98982
administer the Social Security reimbursement program;98983

       (D) Appropriation item 415-608, Social Security Special98984
Programs/Assistance, to provide vocational rehabilitation services98985
to individuals with severe disabilities who are Social Security98986
beneficiaries, to enable them to achieve competitive employment. 98987
This appropriation item also includes funds to assist the Personal 98988
Care Assistance, Community Centers for the Deaf, and Independent 98989
Living Programs to pay their share of indirect costs as mandated 98990
by federal OMB Circular A-87.98991

       (E) Appropriation item 415-610, Social Security Vocational98992
Rehabilitation, to provide vocational rehabilitation services to 98993
older blind individuals with severe disabilities to enable them to 98994
achieve a noncompetitive employment goal.98995

       PILOT PROGRAM FOR VOCATIONAL REHABILITATION98996

       During fiscal years 2006 and 2007, the Rehabilitation 98997
Services Commission may conduct a pilot program to provide 98998
vocational rehabilitation and related services to entities, 98999
employers, or individuals that are not eligible for state- or 99000
federally-supported services through the commission. The 99001
commission shall propose fees to be collected from the entities, 99002
employers, or individuals served by the pilot program to support 99003
the costs for vocational rehabilitation and related services 99004
provided under the pilot program. Fee revenues collected under the 99005
program shall be credited to Fund 468 (Third Party Funding). 99006
During implementation of the pilot program, the Rehabilitation 99007
Services Commission shall investigate and determine the 99008
possibility of utilizing this source of revenue to match federal 99009
funds. The Rehabilitation Services Commission shall evaluate the 99010
progress of the pilot program and issue a report of its findings 99011
to the Governor not later than December 15, 2007. The report shall 99012
include a recommendation to either continue or discontinue the 99013
pilot program in the next biennium.99014

       Section 209.75.  RCB RESPIRATORY CARE BOARD99015

General Services Fund Group99016

4K9 872-609 Operating Expenses $ 441,987 $ 0 99017
TOTAL GSF General Services 99018
Fund Group $ 441,987 $ 0 99019
TOTAL ALL BUDGET FUND GROUPS $ 441,987 $ 0 99020


       Section 209.78. REVENUE DISTRIBUTION FUNDS99022

Volunteer Firefighters' Dependents Fund99023

085 800-900 Volunteer Firefighters' Dependents Fund $ 280,000 $ 280,000 99024
TOTAL 085 Volunteer Firefighters' 99025
Dependents Fund $ 280,000 $ 280,000 99026
Agency Fund Group 99027
062 110-900 Resort Area Excise Tax $ 1,000,000 $ 1,075,000 99028
063 110-900 Permissive Tax Distribution $ 1,627,628,631 $ 1,706,969,960 99029
067 110-900 School District Income Tax $ 185,000,000 $ 195,000,000 99030
4P8 001-698 Cash Management Improvement Fund $ 2,500,000 $ 3,000,000 99031
608 001-699 Investment Earnings $ 85,000,000 $ 85,000,000 99032
TOTAL AGY Agency Fund Group $ 1,901,128,631 $ 1,991,044,960 99033

Holding Account Redistribution99034

R45 110-617 International Fuel Tax Distribution $ 6,292,029 $ 0 99035
TOTAL 090 Holding Account Redistribution Fund $ 6,292,029 $ 0 99036
Revenue Distribution Fund Group 99037
049 038-900 Indigent Drivers Alcohol Treatment $ 1,865,000 $ 1,865,000 99038
050 762-900 International Registration Plan Distribution $ 55,000,000 $ 55,000,000 99039
051 762-901 Auto Registration Distribution $ 475,000,000 $ 475,000,000 99040
054 110-900 Local Government Property Tax Replacement - Utility $ 90,000,000 $ 90,000,000 99041
060 110-900 Gasoline Excise Tax Fund $ 325,000,000 $ 349,000,000 99042
064 110-900 Local Government Revenue Assistance $ 94,605,130 $ 94,605,130 99043
065 110-900 Library/Local Government Support Fund $ 458,510,155 $ 458,510,155 99044
066 800-900 Undivided Liquor Permits $ 14,300,000 $ 14,300,000 99045
068 110-900 State and Local Government Highway Distribution $ 231,076,000 $ 235,542,000 99046
069 110-900 Local Government Fund $ 662,137,898 $ 662,137,898 99047
081 110-900 Local Government Property Tax Replacement-Business $ 21,150,000 $ 158,166,000 99048
082 110-900 Horse Racing Tax $ 130,000 $ 130,000 99049
083 700-900 Ohio Fairs Fund $ 2,450,000 $ 2,450,000 99050
TOTAL RDF Revenue Distribution 99051
Fund Group $ 2,431,224,183 $ 2,596,706,183 99052
TOTAL ALL BUDGET FUND GROUPS $ 4,338,924,843 $ 4,588,031,143 99053

       ADDITIONAL APPROPRIATIONS99054

       Appropriation items in this section shall be used for the99055
purpose of administering and distributing the designated revenue99056
distribution funds according to the Revised Code. If it is99057
determined that additional appropriations are necessary for this 99058
purpose, such amounts are appropriated.99059

       Section 209.78.03.  GENERAL REVENUE FUND TRANSFERS TO LOCAL 99060
GOVERNMENT PROPERTY TAX REPLACEMENT – BUSINESS (FUND 081)99061

        Notwithstanding any provision of law to the contrary, the 99062
Director of Budget and Management shall transfer $4,290,000 in 99063
fiscal year 2006 and $30,090,000 in fiscal year 2007 from the 99064
General Revenue Fund to appropriation item 110-900, Local 99065
Government Property Tax Replacement – Business (Fund 081) in the 99066
Revenue Distribution Fund. The funds shall be used to reimburse 99067
local taxing units under section 5751.22 of the Revised Code.99068

       Section 209.81.  SAN BOARD OF SANITARIAN REGISTRATION99069

General Services Fund Group99070

4K9 893-609 Operating Expenses $ 134,279 $ 0 99071
TOTAL GSF General Services 99072
Fund Group $ 134,279 $ 0 99073
TOTAL ALL BUDGET FUND GROUPS $ 134,279 $ 0 99074


       Section 209.84.  OSB OHIO STATE SCHOOL FOR THE BLIND99076

General Revenue Fund99077

GRF 226-100 Personal Services $ 6,469,841 $ 6,594,261 99078
GRF 226-200 Maintenance $ 704,162 $ 704,162 99079
GRF 226-300 Equipment $ 113,289 $ 113,289 99080
TOTAL GRF General Revenue Fund $ 7,287,292 $ 7,411,712 99081

General Services Fund Group99082

4H8 226-602 Education Reform Grants $ 21,620 $ 21,620 99083
TOTAL GSF General Services 99084
Fund Group $ 21,620 $ 21,620 99085

Federal Special Revenue Fund Group99086

3P5 226-643 Medicaid Professional Services Reimbursement $ 180,000 $ 210,000 99087
310 226-626 Coordinating Unit $ 1,639,000 $ 1,639,000 99088
TOTAL FED Federal Special 99089
Revenue Fund Group $ 1,819,000 $ 1,849,000 99090

State Special Revenue Fund Group99091

4M5 226-601 Student Activity and Work Study $ 217,397 $ 217,397 99092
TOTAL SSR State Special Revenue 99093
Fund Group $ 217,397 $ 217,397 99094
TOTAL ALL BUDGET FUND GROUPS $ 9,345,309 $ 9,499,729 99095


       Section 209.87.  OSD OHIO STATE SCHOOL FOR THE DEAF99097

General Revenue Fund99098

GRF 221-100 Personal Services $ 8,401,704 $ 8,401,704 99099
GRF 221-200 Maintenance $ 1,032,751 $ 1,032,751 99100
GRF 221-300 Equipment $ 222,500 $ 222,500 99101
TOTAL GRF General Revenue Fund $ 9,656,955 $ 9,656,955 99102

General Services Fund Group99103

4M1 221-602 Education Reform Grants $ 27,575 $ 27,575 99104
TOTAL GSF General Services 99105
Fund Group $ 27,575 $ 27,575 99106

Federal Special Revenue Fund Group99107

3AD 221-604 VREAL Ohio $ 1,000,000 $ 1,000,000 99108
3R0 221-684 Medicaid Professional $ 35,000 $ 35,000 99109
Services Reimbursement 99110
3Y1 221-686 Early Childhood Grant $ 250,000 $ 250,000 99111
311 221-625 Coordinating Unit $ 1,062,426 $ 1,062,426 99112
TOTAL FED Federal Special 99113
Revenue Fund Group $ 2,347,426 $ 2,347,426 99114

State Special Revenue Fund Group99115

4M0 221-601 Educational Program $ 32,688 $ 32,688 99116
Expenses 99117
5H6 221-609 Even Start Fees & Gifts $ 59,800 $ 59,800 99118
TOTAL SSR State Special Revenue 99119
Fund Group $ 92,488 $ 92,488 99120
TOTAL ALL BUDGET FUND GROUPS $ 12,124,444 $ 12,124,444 99121

       EQUIPMENT99122

       Of the foregoing appropriation item 221-300, Equipment, up to 99123
$15,000 in fiscal year 2006 may be used by the Ohio School for the 99124
Deaf to purchase software for the documentation and tracking of 99125
students for increased accountability and data analysis for 99126
quality instruction.99127

       Section 209.90.  SFC SCHOOL FACILITIES COMMISSION99128

General Revenue Fund99129

GRF 230-428 Lease Rental Payments $ 31,691,700 $ 31,603,200 99130
GRF 230-908 Common Schools General Obligation Debt Service $ 188,724,700 $ 224,911,500 99131
TOTAL GRF General Revenue Fund $ 220,416,400 $ 256,514,700 99132

State Special Revenue Fund Group99133

5E3 230-644 Operating Expenses $ 7,319,617 $ 7,691,485 99134
TOTAL SSR State Special Revenue 99135
Fund Group $ 7,319,617 $ 7,691,485 99136

Lottery Profits Education Fund Group99137

020 230-620 Career-Tech School Building Assistance $ 2,000,000 $ 2,000,000 99138
TOTAL LPE Lottery Profits 99139
Education Fund Group $ 2,000,000 $ 2,000,000 99140
TOTAL ALL BUDGET FUND GROUPS $ 229,736,017 $ 266,206,185 99141


       Section 209.90.03. LEASE RENTAL PAYMENTS99143

       The foregoing appropriation item 230-428, Lease Rental99144
Payments, shall be used to meet all payments at the times they are99145
required to be made during the period from July 1, 2005, to June99146
30, 2007, by the School Facilities Commission under leases and 99147
agreements made under section 3318.26 of the Revised Code, but99148
limited to the aggregate amount of $63,294,900. Nothing in this99149
act shall be deemed to contravene the obligation of the state to99150
pay, without necessity for further appropriation, from the sources99151
pledged thereto, the bond service charges on obligations issued99152
under Chapter 3318. of the Revised Code.99153

       COMMON SCHOOLS GENERAL OBLIGATION DEBT SERVICE99154

       The foregoing appropriation item 230-908, Common Schools99155
General Obligation Debt Service, shall be used to pay all debt99156
service and related financing costs at the times they are required 99157
to be made under sections 151.01 and 151.03 of the Revised Code99158
during the period from July 1, 2005, to June 30, 2007. The Office99159
of the Sinking Fund or the Director of Budget and Management shall99160
effectuate the required payments by an intrastate transfer99161
voucher.99162

       OPERATING EXPENSES99163

       The foregoing appropriation item 230-644, Operating Expenses,99164
shall be used by the Ohio School Facilities Commission to carry99165
out its responsibilities under this section and Chapter 3318. of 99166
the Revised Code.99167

       In both fiscal years 2006 and 2007, the Executive Director of 99168
the Ohio School Facilities Commission shall certify on a quarterly 99169
basis to the Director of Budget and Management the amount of cash 99170
from interest earnings to be transferred from the School Building 99171
Assistance Fund (Fund 032), the Public School Building Fund (Fund 99172
021), and the Educational Facilities Trust Fund (Fund N87) to the 99173
Ohio School Facilities Commission Fund (Fund 5E3). The amount 99174
transferred may not exceed investment earnings credited to the 99175
School Building Assistance Fund (Fund 032), less any amount 99176
required to be paid for federal arbitage rebate purposes.99177

       SCHOOL FACILITIES ENCUMBRANCES AND REAPPROPRIATION99178

       At the request of the Executive Director of the Ohio School99179
Facilities Commission, the Director of Budget and Management may99180
cancel encumbrances for school district projects from a previous99181
biennium if the district has not raised its local share of project99182
costs within one year of receiving Controlling Board approval 99183
under section 3318.05 of the Revised Code. The Executive Director 99184
of the Ohio School Facilities Commission shall certify the amounts 99185
of the canceled encumbrances to the Director of Budget and 99186
Management on a quarterly basis. The amounts of the canceled 99187
encumbrances are hereby appropriated.99188

       Section 209.90.06.  EXTREME ENVIRONMENTAL CONTAMINATION OF 99189
SCHOOL FACILITIES99190

       Notwithstanding any other provision of law to the contrary,99191
the School Facilities Commission may provide assistance under the99192
Exceptional Needs School Facilities Program established in section 99193
3318.37 of the Revised Code to any school district, and not99194
exclusively to a school district in the lowest fifty per cent of99195
adjusted valuation per pupil on the current ranking of school 99196
districts established under section 3317.02 of the Revised Code, 99197
for the purpose of the relocation or replacement of school 99198
facilities required as a result of extreme environmental99199
contamination.99200

       The School Facilities Commission shall contract with an99201
independent environmental consultant to conduct a study and to99202
report to the commission as to the seriousness of the99203
environmental contamination, whether the contamination violates99204
applicable state and federal standards, and whether the facilities99205
are no longer suitable for use as school facilities. The99206
commission then shall make a determination regarding funding for99207
the relocation or replacement of the school facilities. If the99208
federal government or other public or private entity provides99209
funds for restitution of costs incurred by the state or school99210
district in the relocation or replacement of the school99211
facilities, the school district shall use such funds in excess of99212
the school district's share to refund the state for the state's99213
contribution to the environmental contamination portion of the99214
project. The school district may apply an amount of such99215
restitution funds up to an amount equal to the school district's99216
portion of the project, as defined by the commission, toward99217
paying its portion of that project to reduce the amount of bonds99218
the school district otherwise must issue to receive state99219
assistance under sections 3318.01 to 3318.20 of the Revised Code.99220

       Section 209.90.09.  CANTON CITY SCHOOL DISTRICT PROJECT99221

       (A) The Ohio School Facilities Commission may commit up to99222
thirty-five million dollars to the Canton City School District for99223
construction of a facility described in this section, in lieu of a 99224
high school that would otherwise be authorized under Chapter 3318. 99225
of the Revised Code. The Commission shall not commit funds under 99226
this section unless all of the following conditions are met:99227

       (1) The District has entered into a cooperative agreement99228
with a state-assisted technical college.99229

       (2) The District has received an irrevocable commitment of99230
additional funding from nonpublic sources.99231

       (3) The facility is intended to serve both secondary and99232
postsecondary instructional purposes.99233

       (B) The Commission shall enter into an agreement with the99234
District for the construction of the facility authorized under99235
this section that is separate from and in addition to the99236
agreement required for the District's participation in the99237
Classroom Facilities Assistance Program under section 3318.08 of99238
the Revised Code. Notwithstanding that section and sections99239
3318.03, 3318.04, and 3318.083 of the Revised Code, the additional99240
agreement shall provide, but not be limited to, the following:99241

       (1) The Commission shall not have any oversight99242
responsibilities over the construction of the facility.99243

       (2) The facility need not comply with the specifications for99244
plans and materials for high schools adopted by the Commission.99245

       (3) The Commission may decrease the basic project cost that99246
would otherwise be calculated for a high school under Chapter99247
3318. of the Revised Code.99248

       (4) The state shall not share in any increases in the basic99249
project cost for the facility above the amount authorized under99250
this section.99251

       All other provisions of Chapter 3318. of the Revised Code99252
apply to the approval and construction of a facility authorized99253
under this section.99254

       The state funds committed to the facility authorized by this99255
section shall be part of the total amount the state commits to the99256
Canton City School District under Chapter 3318. of the Revised99257
Code. All additional state funds committed to the Canton City99258
School District for classroom facilities assistance shall be99259
subject to all provisions of Chapter 3318. of the Revised Code.99260

       Section 209.93.  SOS SECRETARY OF STATE99261

General Revenue Fund99262

GRF 050-321 Operating Expenses $ 2,585,000 $ 2,585,000 99263
GRF 050-403 Election Statistics $ 103,936 $ 103,936 99264
GRF 050-407 Pollworkers Training $ 277,997 $ 277,997 99265
GRF 050-409 Litigation Expenditures $ 4,652 $ 4,652 99266
TOTAL GRF General Revenue Fund $ 2,971,585 $ 2,971,585 99267

General Services Fund Group99268

4S8 050-610 Board of Voting Machine Examiners $ 7,200 $ 7,200 99269
412 050-609 Notary Commission $ 685,250 $ 685,249 99270
413 050-601 Information Systems $ 169,955 $ 169,955 99271
414 050-602 Citizen Education Fund $ 75,700 $ 55,712 99272
TOTAL General Services Fund Group $ 938,105 $ 918,116 99273

Federal Special Revenue Fund Group99274

3AS 050-616 2005 HAVA Voting Machines $ 37,436,203 $ 0 99275
3X4 050-612 Ohio Center/Law Related Educational Grant $ 41,000 $ 41,000 99276
TOTAL FED Federal Special Revenue 99277
Fund Group $ 37,477,203 $ 41,000 99278

State Special Revenue Fund Group99279

5N9 050-607 Technology Improvements $ 129,565 $ 129,565 99280
599 050-603 Business Services Operating Expenses $ 13,741,745 $ 13,761,734 99281
TOTAL SSR State Special Revenue 99282
Fund Group $ 13,871,310 $ 13,891,299 99283

Holding Account Redistribution Fund Group99284

R01 050-605 Uniform Commercial Code Refunds $ 65,000 $ 65,000 99285
R02 050-606 Corporate/Business Filing Refunds $ 100,000 $ 100,000 99286
TOTAL 090 Holding Account 99287
Redistribution Fund Group $ 165,000 $ 165,000 99288
TOTAL ALL BUDGET FUND GROUPS $ 55,423,203 $ 17,987,000 99289

       BOARD OF VOTING MACHINE EXAMINERS99290

       The foregoing appropriation item 050-610, Board of Voting99291
Machine Examiners, shall be used to pay for the services and99292
expenses of the members of the Board of Voting Machine Examiners,99293
and for other expenses that are authorized to be paid from the99294
Board of Voting Machine Examiners Fund, which is created in99295
section 3506.05 of the Revised Code. Moneys not used shall be99296
returned to the person or entity submitting the equipment for99297
examination. If it is determined that additional appropriations99298
are necessary, such amounts are appropriated.99299

       2005 HAVA VOTING MACHINES99300

       On July 1, 2005, or as soon as possible thereafter, the 99301
Secretary of State shall certify to the Director of Budget and 99302
Management the cash balance in Fund 3AR, appropriation item 99303
050-615, 2004 HAVA Voting Machines. The Director of Budget and 99304
Management shall transfer the certified amount of cash to Fund 99305
3AS, 050-616, 2005 HAVA Voting Machines, for use in fiscal year 99306
2006. The transferred amount is hereby appropriated.99307

       On July 1, 2006, or as soon as possible thereafter, the 99308
Director of Budget and Management shall transfer any remaining 99309
unexpended, unencumbered appropriations in Fund 3AS, appropriation 99310
item 050-616, 2005 HAVA Voting Machines, at the end of fiscal year 99311
2006 to fiscal year 2007 for use under the same appropriation 99312
item.99313

       HOLDING ACCOUNT REDISTRIBUTION GROUP99314

       The foregoing appropriation items 050-605 and 050-606,99315
Holding Account Redistribution Fund Group, shall be used to hold99316
revenues until they are directed to the appropriate accounts or99317
until they are refunded. If it is determined that additional99318
appropriations are necessary, such amounts are appropriated.99319

       Section 209.96.  SEN THE OHIO SENATE99320

General Revenue Fund99321

GRF 020-321 Operating Expenses $ 11,546,357 $ 11,661,821 99322
TOTAL GRF General Revenue Fund $ 11,546,357 $ 11,661,821 99323

General Services Fund Group99324

102 020-602 Senate Reimbursement $ 444,025 $ 444,025 99325
409 020-601 Miscellaneous Sales $ 34,155 $ 34,155 99326
TOTAL GSF General Services 99327
Fund Group $ 478,180 $ 478,180 99328
TOTAL ALL BUDGET FUND GROUPS $ 12,024,537 $ 12,140,001 99329

       OPERATING EXPENSES99330

       On July 1, 2005, or as soon as possible thereafter, the Clerk 99331
of the Senate shall certify to the Director of Budget and 99332
Management the total fiscal year 2005 unencumbered appropriations 99333
in appropriation item 020-321, Operating Expenses. The Clerk may 99334
direct the Director of Budget and Management to transfer an amount 99335
not to exceed the total fiscal year 2005 unencumbered 99336
appropriations to fiscal year 2006 for use within appropriation 99337
item 020-321, Operating Expenses. Additional appropriation 99338
authority equal to the amount certified by the Clerk is hereby 99339
appropriated to appropriation item 020-321, Operating Expenses, in 99340
fiscal year 2006.99341

        On July 1, 2006, or as soon as possible thereafter, the Clerk 99342
of the Senate shall certify to the Director of Budget and 99343
Management the total fiscal year 2006 unencumbered appropriations 99344
in appropriation item 020-321, Operating Expenses. The Clerk may 99345
direct the Director of Budget and Management to transfer an amount 99346
not to exceed the total fiscal year 2006 unencumbered 99347
appropriations to fiscal year 2007 for use within appropriation 99348
item 020-321, Operating Expenses. Additional appropriation 99349
authority equal to the amount certified by the Clerk is hereby 99350
appropriated to appropriation item 020-321, Operating Expenses, in 99351
fiscal year 2007.99352

       Section 209.99.  CSF COMMISSIONERS OF THE SINKING FUND99353

Debt Service Fund Group99354

072 155-902 Highway Capital Improvements Bond Retirement Fund $ 180,620,600 $ 196,464,900 99355
073 155-903 Natural Resources Bond Retirement Fund $ 26,166,000 $ 24,659,100 99356
074 155-904 Conservation Projects Bond Service Fund $ 14,687,300 $ 17,668,800 99357
076 155-906 Coal Research and Development Bond Retirement Fund $ 7,071,100 $ 8,980,800 99358
077 155-907 State Capital Improvements Bond Retirement Fund $ 163,131,400 $ 174,545,100 99359
078 155-908 Common Schools Bond Retirement Fund $ 200,724,700 $ 236,911,500 99360
079 155-909 Higher Education Bond Retirement Fund $ 140,600,300 $ 158,114,100 99361
TOTAL DSF Debt Service Fund Group $ 733,001,400 $ 817,344,300 99362
TOTAL ALL BUDGET FUND GROUPS $ 733,001,400 $ 817,344,300 99363

       ADDITIONAL APPROPRIATIONS99364

       Appropriation items in this section are for the purpose of99365
paying debt service and financing costs on bonds or notes of the99366
state issued under the Ohio Constitution and acts of the General 99367
Assembly. If it is determined that additional appropriations are 99368
necessary for this purpose, such amounts are appropriated.99369

       COMMISSIONER OF THE SINKING FUND HIGHWAY BOND TRANSFER 99370
AUTHORIZATION99371

        Notwithstanding any other provision of law to the contrary, 99372
the Commissioners of the Sinking Fund shall certify to the 99373
Director of Budget and Management, and the director shall then 99374
transfer, the cash balance remaining after provision for the 99375
payment of all outstanding bonds, notes, coupons, and charges from 99376
the Highway Obligation Bond Retirement Fund (Fund 071) to the 99377
Highway Capital Improvements Bond Service Fund (Fund 072), created 99378
by section 151.06 of the Revised Code, as expeditiously as 99379
possible after the effective date of this section.99380

       Section 212.03.  SPE BOARD OF SPEECH-LANGUAGE PATHOLOGY & 99381
AUDIOLOGY99382

General Services Fund Group99383

4K9 886-609 Operating Expenses $ 408,864 $ 0 99384
TOTAL GSF General Services 99385
Fund Group $ 408,864 $ 0 99386
TOTAL ALL BUDGET FUND GROUPS $ 408,864 $ 0 99387


       Section 212.06.  BTA BOARD OF TAX APPEALS99389

General Revenue Fund99390

GRF 116-321 Operating Expenses $ 2,155,055 $ 2,211,035 99391
TOTAL GRF General Revenue Fund $ 2,155,055 $ 2,211,035 99392
TOTAL ALL BUDGET FUND GROUPS $ 2,155,055 $ 2,211,035 99393


       Section 212.09. TAX DEPARTMENT OF TAXATION99395

General Revenue Fund99396

GRF 110-321 Operating Expenses $ 91,439,754 $ 91,439,754 99397
GRF 110-412 Child Support Administration $ 71,988 $ 71,988 99398
GRF 110-901 Property Tax Allocation - Taxation $ 430,102,680 $ 409,946,241 99399
GRF 110-906 Tangible Tax Exemption - Taxation $ 18,355,923 $ 13,766,942 99400
TOTAL GRF General Revenue Fund $ 539,970,345 $ 515,224,925 99401

General Services Fund Group99402

228 110-628 Tax Reform System Implementation $ 7,000,000 $ 7,000,000 99403
433 110-602 Tape File Account $ 96,165 $ 96,165 99404
5BW 110-630 Tax Amnesty Promotion and Administration $ 2,000,000 $ 0 99405
5W4 110-625 Centralized Tax Filing and Payment $ 2,500,000 $ 2,000,000 99406
5W7 110-627 Exempt Facility Administration $ 36,000 $ 36,000 99407
TOTAL GSF General Services 99408
Fund Group $ 11,632,165 $ 9,132,165 99409

Federal Special Revenue Fund Group99410

3J6 110-601 Motor Fuel Compliance $ 25,000 $ 25,000 99411
TOTAL FED Federal Special Revenue 99412
Fund Group $ 25,000 $ 25,000 99413

State Special Revenue Fund Group99414

4C6 110-616 International Registration Plan $ 706,855 $ 706,855 99415
4R6 110-610 Tire Tax Administration $ 65,000 $ 65,000 99416
435 110-607 Local Tax Administration $ 15,880,987 $ 16,394,879 99417
436 110-608 Motor Vehicle Audit $ 1,350,000 $ 1,350,000 99418
437 110-606 Litter Tax and Natural Resource Tax Administration $ 625,232 $ 625,232 99419
438 110-609 School District Income Tax $ 2,599,999 $ 2,599,999 99420
5BQ 110-629 Commercial Activity Tax Administration $ 6,000,000 $ 500,000 99421
5N5 110-605 Municipal Income Tax Administration $ 265,000 $ 265,000 99422
5N6 110-618 Kilowatt Hour Tax Administration $ 85,000 $ 85,000 99423
5V7 110-622 Motor Fuel Tax Administration $ 4,268,345 $ 4,397,263 99424
5V8 110-623 Property Tax Administration $ 12,758,643 $ 12,967,102 99425
639 110-614 Cigarette Tax Enforcement $ 168,925 $ 168,925 99426
642 110-613 Ohio Political Party Distributions $ 600,000 $ 600,000 99427
688 110-615 Local Excise Tax Administration $ 300,000 $ 300,000 99428
TOTAL SSR State Special Revenue 99429
Fund Group $ 45,673,986 $ 41,025,255 99430

Agency Fund Group99431

095 110-901 Municipal Income Tax $ 21,000,000 $ 21,000,000 99432
425 110-635 Tax Refunds $ 1,483,900,000 $ 1,582,700,000 99433
TOTAL AGY Agency Fund Group $ 1,504,900,000 $ 1,603,700,000 99434

Holding Account Redistribution Fund Group99435

R10 110-611 Tax Distributions $ 50,000 $ 50,000 99436
R11 110-612 Miscellaneous Income Tax Receipts $ 50,000 $ 50,000 99437
TOTAL 090 Holding Account 99438
Redistribution Fund Group $ 100,000 $ 100,000 99439
TOTAL ALL BUDGET FUND GROUPS $ 2,102,301,496 $ 2,169,207,345 99440

       HOMESTEAD EXEMPTION, PROPERTY TAX ROLLBACK, AND TANGIBLE TAX99441
EXEMPTION99442

       The foregoing appropriation item 110-901, Property Tax99443
Allocation - Taxation, is hereby appropriated to pay for the 99444
state's costs incurred because of the Homestead Exemption, the 99445
Manufactured Home Property Tax Rollback, and the Property Tax 99446
Rollback. The Tax Commissioner shall distribute these funds 99447
directly to the appropriate local taxing districts, except for 99448
school districts, notwithstanding the provisions in sections 99449
321.24 and 323.156 of the Revised Code, which provide for payment 99450
of the Homestead Exemption, the Manufactured Home Property Tax 99451
Rollback, and Property Tax Rollback by the Tax Commissioner to the99452
appropriate county treasurer and the subsequent redistribution of99453
these funds to the appropriate local taxing districts by the99454
county auditor.99455

       The foregoing appropriation item 110-906, Tangible Tax99456
Exemption - Taxation, is hereby appropriated to pay for the 99457
state's costs incurred because of the tangible personal property 99458
tax exemption required by division (C)(3) of section 5709.01 of 99459
the Revised Code. The Tax Commissioner shall distribute to each 99460
county treasurer the total amount appearing in the notification 99461
from the county treasurer under division (G) of section 321.24 of 99462
the Revised Code for all local taxing districts located in the 99463
county except for school districts, notwithstanding the provision 99464
in section 321.24 of the Revised Code which provides for payment 99465
of the $10,000 tangible personal property tax exemption by the Tax99466
Commissioner to the appropriate county treasurer for all local99467
taxing districts located in the county including school districts. 99468
The county auditor shall distribute the amount paid by the Tax99469
Commissioner among the appropriate local taxing districts except99470
for school districts under division (G) of section 321.24 of the 99471
Revised Code.99472

       Upon receipt of these amounts, each local taxing district99473
shall distribute the amount among the proper funds as if it had99474
been paid as real or tangible personal property taxes. Payments99475
for the costs of administration shall continue to be paid to the99476
county treasurer and county auditor as provided for in sections99477
319.54, 321.26, and 323.156 of the Revised Code.99478

       Any sums, in addition to the amounts specifically99479
appropriated in appropriation items 110-901, Property Tax99480
Allocation - Taxation, for the Homestead Exemption, the99481
Manufactured Home Property Tax Rollback, and the Property Tax99482
Rollback payments, and 110-906, Tangible Tax Exemption - Taxation,99483
for the $10,000 tangible personal property tax exemption payments,99484
which are determined to be necessary for these purposes, are99485
hereby appropriated.99486

       MUNICIPAL INCOME TAX99487

       The foregoing appropriation item 110-901, Municipal Income 99488
Tax, shall be used to make payments to municipal corporations 99489
under section 5745.05 of the Revised Code. If it is determined 99490
that additional appropriations are necessary to make these 99491
payments, such amounts are hereby appropriated.99492

       TAX REFUNDS99493

       The foregoing appropriation item 110-635, Tax Refunds, shall99494
be used to pay refunds under section 5703.052 of the Revised Code. 99495
If it is determined that additional appropriations are necessary 99496
for this purpose, such amounts are hereby appropriated.99497

       TAX REFORM SYSTEM IMPLEMENTATION FUND99498

       Notwithstanding section 3734.9010, division (B)(2)(c) of 99499
section 4505.09, division (B) of section 5703.12, section 5703.80, 99500
division (C)(6) of section 5727.81, sections 5733.122 and 99501
5735.053, division (C) of section 5739.21, section 5745.03, 99502
division (C) of section 5747.03, and section 5747.113 of the 99503
Revised Code and any other statutory provision to the contrary, 99504
any residual cash balances determined and certified by the Tax 99505
Commissioner to the Director of Budget and Management shall be 99506
transferred on July 1, 2005, or as soon as possible thereafter, to 99507
the Tax Reform System Implementation Fund (Fund 228), which is 99508
hereby created in the State Treasury. The fund shall be used to 99509
pay expenses incurred by the Department of Taxation in providing 99510
an integrated tax system that will accommodate the needs of tax 99511
reform and allow for improved customer service, processing 99512
efficiency, compliance enforcement, and reporting.99513

       INTERNATIONAL REGISTRATION PLAN AUDIT99514

       The foregoing appropriation item 110-616, International99515
Registration Plan, shall be used under section 5703.12 of the 99516
Revised Code for audits of persons with vehicles registered under 99517
the International Registration Plan.99518

       TRAVEL EXPENSES FOR THE STREAMLINED SALES TAX PROJECT99519

        Of the foregoing appropriation item 110-607, Local Tax 99520
Administration, the Tax Commissioner may disburse funds, if 99521
available, for the purposes of paying travel expenses incurred by 99522
members of Ohio's delegation to the Streamlined Sales Tax Project, 99523
as appointed under section 5740.02 of the Revised Code. Any travel 99524
expense reimbursement paid for by the Department of Taxation shall 99525
be done in accordance with applicable state laws and guidelines.99526

       LITTER CONTROL TAX ADMINISTRATION FUND99527

       Notwithstanding section 5733.12 of the Revised Code, during99528
the period from July 1, 2005, to June 30, 2006, the amount of99529
$625,232, and during the period from July 1, 2006, to June 30,99530
2007, the amount of $625,232, received by the Tax Commissioner99531
under Chapter 5733. of the Revised Code, shall be credited to the99532
Litter Control Tax Administration Fund (Fund 437).99533

       TAX AMNESTY PROMOTION AND ADMINISTRATION99534

       The foregoing appropriation item 110-630, Tax Amnesty 99535
Promotion and Administration, shall be used to pay expenses 99536
incurred to promote and administer the tax amnesty program run 99537
from January 1, 2006, through February 15, 2006, by the Department 99538
of Taxation. The Department of Taxation and Attorney General's 99539
Office shall work in close collaboration on promotion activities 99540
in relation to the Tax Amnesty Promotion and Administration 99541
program.99542

       CENTRALIZED TAX FILING AND PAYMENT FUND99543

       The Director of Budget and Management, under a plan submitted 99544
by the Tax Commissioner, or as otherwise determined by the 99545
Director of Budget and Management, shall set a schedule to 99546
transfer cash from the General Revenue Fund to the credit of the 99547
Centralized Tax Filing and Payment Fund (Fund 5W4). The transfers 99548
of cash shall not exceed $4,500,000 in the biennium.99549

       COMMERCIAL ACTIVITY TAX ADMINISTRATION99550

        The foregoing appropriation item 110-629, Commercial Activity 99551
Tax Administration, shall be used to pay expenses incurred by the 99552
Department of Taxation to implement and administer the Commercial 99553
Activity Tax under Chapter 5751. of the Revised Code.99554

       Section 212.12.  DOT DEPARTMENT OF TRANSPORTATION99555

Transportation Modes
99556

General Revenue Fund99557

GRF 775-451 Public Transportation - State $ 16,300,000 $ 16,300,000 99558
GRF 776-465 Ohio Rail Development Commission $ 2,700,000 $ 2,700,000 99559
GRF 776-466 Railroad Crossing/Grade Separation $ 789,600 $ 789,600 99560
GRF 777-471 Airport Improvements - State $ 1,793,985 $ 1,793,985 99561
GRF 777-473 Rickenbacker Lease Payments - State $ 594,500 $ 320,300 99562
TOTAL GRF General Revenue Fund $ 22,178,085 $ 21,903,885 99563

Federal Special Revenue Fund Group99564

3B9 776-662 Rail Transportation - Federal $ 10,000 $ 10,000 99565
TOTAL FED Federal Special Revenue 99566
Fund Group $ 10,000 $ 10,000 99567

State Special Revenue Fund Group99568

4N4 776-663 Panhandle Lease Reserve Payments $ 764,400 $ 764,400 99569
4N4 776-664 Rail Transportation - Other $ 2,111,500 $ 2,111,500 99570
5CF 776-667 Rail Transload Facilities $ 500,000 $ 0 99571
5W9 777-615 Airport Assistance $ 570,000 $ 570,000 99572
TOTAL SSR State Special Revenue 99573
Fund Group $ 3,945,900 $ 3,445,900 99574
TOTAL ALL BUDGET FUND GROUPS $ 26,133,985 $ 25,359,785 99575

       ELDERLY AND DISABLED FARE ASSISTANCE99576

       Of the foregoing appropriation item 775-451, Public 99577
Transportation - State, up to $6,000,000 in fiscal year 2006 and 99578
$7,000,000 in fiscal year 2007 may be used to make grants to 99579
county transit boards, regional transit authorities, regional 99580
transit commissions, counties, municipal corporations, and private 99581
nonprofit organizations that operate or will operate public 99582
transportation systems, for the purpose of reducing the transit 99583
fares of elderly or disabled persons. The Director of 99584
Transportation shall establish criteria for the distribution of 99585
these grants under division (B) of section 5501.07 of the Revised 99586
Code.99587

       AVIATION LEASE PAYMENTS99588

       The foregoing appropriation item 777-473, Rickenbacker Lease99589
Payments - State, shall be used to meet scheduled payments for the99590
Rickenbacker Port Authority. The Director of Transportation shall99591
certify to the Director of Budget and Management any99592
appropriations in appropriation item 777-473, Rickenbacker Lease99593
Payments - State, that are not needed to make lease payments for99594
the Rickenbacker Port Authority. Notwithstanding section 127.14 of 99595
the Revised Code, the amount certified may be transferred by the 99596
Director of Budget and Management to appropriation item 777-471, 99597
Airport Improvements - State.99598

       RAIL TRANSLOAD FACILITIES99599

        The foregoing appropriation item 776-667, Rail Transload 99600
Facilities, shall be used to fund the Rail Transload Initiative, a 99601
statewide pilot program administered by the Ohio Rail Development 99602
Commission, to provide grants to assist communities and railroads 99603
and other businesses to develop facilities that will enhance the 99604
ability of railroads to work with other transport modes to move 99605
bulk commodities more efficiently and safely.99606

       Section 212.15.  TOS TREASURER OF STATE99607

General Revenue Fund99608

GRF 090-321 Operating Expenses $ 9,041,937 $ 9,041,937 99609
GRF 090-401 Office of the Sinking $ 521,576 $ 521,576 99610
Fund 99611
GRF 090-402 Continuing Education $ 435,770 $ 435,770 99612
GRF 090-524 Police and Fire $ 25,000 $ 20,000 99613
Disability Pension Fund 99614
GRF 090-534 Police & Fire Ad Hoc Cost $ 180,000 $ 150,000 99615
of Living 99616
GRF 090-554 Police and Fire Survivor $ 1,100,000 $ 1,000,000 99617
Benefits 99618
GRF 090-575 Police and Fire Death $ 20,000,000 $ 20,000,000 99619
Benefits 99620
TOTAL GRF General Revenue Fund $ 31,304,283 $ 31,169,283 99621

General Services Fund Group99622

4E9 090-603 Securities Lending Income $ 2,721,800 $ 2,814,000 99623
577 090-605 Investment Pool $ 550,000 $ 550,000 99624
Reimbursement 99625
605 090-609 Treasurer of State $ 700,000 $ 700,000 99626
Administrative Fund 99627
TOTAL GSF General Services 99628
Fund Group $ 3,971,800 $ 4,064,000 99629

State Special Revenue Fund Group99630

5C5 090-602 County Treasurer Education $ 135,000 $ 135,000 99631
TOTAL SSR State Special Revenue 99632
Fund Group $ 135,000 $ 135,000 99633

Agency Fund Group99634

425 090-635 Tax Refunds $ 31,000,000 $ 31,000,000 99635
TOTAL Agency Fund Group $ 31,000,000 $ 31,000,000 99636
TOTAL ALL BUDGET FUND GROUPS $ 66,411,083 $ 66,368,283 99637


       Section 212.15.03.  OFFICE OF THE SINKING FUND99639

       The foregoing appropriation item 090-401, Office of the99640
Sinking Fund, shall be used for financing and other costs incurred99641
by or on behalf of the Commissioners of the Sinking Fund, the Ohio99642
Public Facilities Commission or its secretary, or the Treasurer of99643
State, with respect to State of Ohio general obligation bonds or99644
notes, including, but not limited to, printing, advertising,99645
delivery, rating fees and the procurement of ratings, professional99646
publications, membership in professional organizations, and99647
services referred to in division (D) of section 151.01 of the99648
Revised Code. The General Revenue Fund shall be reimbursed for99649
such costs by intrastate transfer voucher pursuant to a99650
certification by the Office of the Sinking Fund of the actual99651
amounts used. The amounts necessary to make such reimbursements99652
are appropriated from the general obligation bond retirement funds99653
created by the Constitution and laws to the extent such costs are99654
incurred.99655

       POLICE AND FIRE DEATH BENEFIT FUND99656

       The foregoing appropriation item 090-575, Police and Fire99657
Death Benefits, shall be disbursed quarterly by the Treasurer of99658
State at the beginning of each quarter of each fiscal year to the 99659
Board of Trustees of the Ohio Police and Fire Pension Fund. The 99660
Treasurer of State shall certify such amounts quarterly to the 99661
Director of Budget and Management. By the twentieth day of June of 99662
each fiscal year, the Board of Trustees of the Ohio Police and 99663
Fire Pension Fund shall certify to the Treasurer of State the99664
amount disbursed in the current fiscal year to make the payments99665
required by section 742.63 of the Revised Code and shall return to99666
the Treasurer of State moneys received from this appropriation99667
item but not disbursed.99668

       TAX REFUNDS99669

       The foregoing appropriation item 090-635, Tax Refunds, shall 99670
be used to pay refunds under section 5703.052 of the Revised Code. 99671
If the Director of Budget and Management determines that 99672
additional amounts are necessary for this purpose, such amounts 99673
are hereby appropriated.99674

       Section 212.18.  UST PETROLEUM UNDERGROUND STORAGE TANK99675

Agency Fund Group99676

691 810-632 PUSTRCB Staff $ 1,075,158 $ 1,116,658 99677
TOTAL AGY Agency Fund Group $ 1,075,158 $ 1,116,658 99678
TOTAL ALL BUDGET FUND GROUPS $ 1,075,158 $ 1,116,658 99679


       Section 212.21.  TTA OHIO TUITION TRUST AUTHORITY99681

State Special Revenue Fund Group99682

5AM 095-603 Index Savings Plan $ 2,866,240 $ 3,104,865 99683
5P3 095-602 Variable College Savings Fund $ 2,042,486 $ 2,118,568 99684
645 095-601 Operating Expenses $ 807,260 $ 891,173 99685
TOTAL SSR State Special Revenue 99686
Fund Group $ 5,715,986 $ 6,114,606 99687
TOTAL ALL BUDGET FUND GROUPS $ 5,715,986 $ 6,114,606 99688


       Section 212.24.  OVH OHIO VETERANS' HOME99690

General Revenue Fund99691

GRF 430-100 Personal Services $ 20,629,914 $ 21,030,031 99692
GRF 430-200 Maintenance $ 6,396,200 $ 6,396,200 99693
TOTAL GRF General Revenue Fund $ 27,026,114 $ 27,426,231 99694

General Services Fund Group99695

484 430-603 Rental and Service Revenue $ 882,737 $ 882,737 99696
TOTAL GSF General Services Fund Group $ 882,737 $ 882,737 99697

Federal Special Revenue Fund Group99698

3L2 430-601 Federal VA Per Diem Grant $ 14,990,510 $ 15,290,320 99699
TOTAL FED Federal Special Revenue 99700
Fund Group $ 14,990,510 $ 15,290,320 99701

State Special Revenue Fund Group99702

4E2 430-602 Veterans Home Operating $ 8,322,731 $ 8,530,800 99703
604 430-604 Veterans Home Improvement $ 770,096 $ 770,096 99704
TOTAL SSR State Special Revenue 99705
Fund Group $ 9,092,827 $ 9,300,896 99706
TOTAL ALL BUDGET FUND GROUPS $ 51,992,188 $ 52,900,184 99707


       Section 212.27.  VET VETERANS' ORGANIZATIONS99709

General Revenue Fund99710

VAP AMERICAN EX-PRISONERS OF WAR
99711

GRF 743-501 State Support $ 25,030 $ 25,030 99712

VAN ARMY AND NAVY UNION, USA, INC.
99713

GRF 746-501 State Support $ 55,012 $ 55,012 99714

VKW KOREAN WAR VETERANS
99715

GRF 747-501 State Support $ 49,453 $ 49,453 99716

VJW JEWISH WAR VETERANS
99717

GRF 748-501 State Support $ 29,715 $ 29,715 99718

VCW CATHOLIC WAR VETERANS
99719

GRF 749-501 State Support $ 57,990 $ 57,990 99720

VPH MILITARY ORDER OF THE PURPLE HEART
99721

GRF 750-501 State Support $ 56,377 $ 56,377 99722

VVV VIETNAM VETERANS OF AMERICA
99723

GRF 751-501 State Support $ 185,954 $ 185,954 99724

VAL AMERICAN LEGION OF OHIO
99725

GRF 752-501 State Support $ 302,328 $ 302,328 99726

VII AMVETS
99727

GRF 753-501 State Support $ 287,919 $ 287,919 99728

VAV DISABLED AMERICAN VETERANS
99729

GRF 754-501 State Support $ 216,308 $ 216,308 99730

VMC MARINE CORPS LEAGUE
99731

GRF 756-501 State Support $ 115,972 $ 115,972 99732

V37 37TH DIVISION AEF VETERANS' ASSOCIATION
99733

GRF 757-501 State Support $ 5,946 $ 5,946 99734

VFW VETERANS OF FOREIGN WARS
99735

GRF 758-501 State Support $ 246,615 $ 246,615 99736

TOTAL GRF General Revenue Fund $ 1,634,619 $ 1,634,619 99737
TOTAL ALL BUDGET FUND GROUPS $ 1,634,619 $ 1,634,619 99738

       RELEASE OF FUNDS99739

       The foregoing appropriation items 743-501, 746-501, 747-501,99740
748-501, 749-501, 750-501, 751-501, 752-501, 753-501, 754-501,99741
756-501, 757-501, and 758-501, State Support, shall be released99742
upon approval by the Director of Budget and Management.99743

       CENTRAL OHIO UNITED SERVICES ORGANIZATION99744

       Of the foregoing appropriation item 751-501, State Support,99745
Vietnam Veterans of America, $50,000 in each fiscal year shall be99746
used to support the activities of the Central Ohio USO.99747

       VAL AMERICAN LEGION OF OHIO99748

       Of the foregoing appropriation item 752-501, State Support, 99749
VAL American Legion, at least $50,000 in each fiscal year shall be 99750
used to fund service officer expenses.99751

       VETERANS SERVICE COMMISSION EDUCATION99752

       Of the foregoing appropriation item 753-501, State Support,99753
AMVETS, up to $20,000 in each fiscal year may be used to provide 99754
moneys to the Association of County Veterans Service Commissioners 99755
to reimburse its member county veterans service commissions for 99756
costs incurred in carrying out educational and outreach duties 99757
required under divisions (E) and (F) of section 5901.03 of the 99758
Revised Code. Additionally, at least $50,000 shall be used in each 99759
fiscal year to fund service officer expenses. The Director of 99760
Budget and Management shall release these funds upon the99761
presentation of an itemized receipt, approved by the Governor's 99762
Office of Veterans Affairs, from the association for reasonable 99763
and appropriate expenses incurred while performing these duties. 99764
The association shall establish uniform procedures for reimbursing99765
member commissions.99766

       VAV DISABLED AMERICAN VETERANS99767

       Of the foregoing appropriation item 754-501, State Support, 99768
VAV Disabled American Veterans, at least $50,000 in each fiscal 99769
year shall be used to fund service officer expenses.99770

       VMC MARINE CORPS LEAGUE99771

       Of the foregoing appropriation item 756-501, State Support, 99772
VMC Marine Corps League, at least $30,000 in each fiscal year 99773
shall be used to fund service officer expenses.99774

       VFW VETERANS OF FOREIGN WARS99775

       Of the foregoing appropriation item 758-501, State Support, 99776
VFW Veterans of Foreign Wars, at least $50,000 in each fiscal year 99777
shall be used to fund service officer expenses.99778

       Section 212.30.  DVM STATE VETERINARY MEDICAL BOARD99779

General Services Fund Group99780

4K9 888-609 Operating Expenses $ 293,691 $ 0 99781
5BU 888-602 Veterinary Student Loan Program $ 60,000 $ 0 99782
TOTAL GSF General Services 99783
Fund Group $ 353,691 $ 0 99784
TOTAL ALL BUDGET FUND GROUPS $ 353,691 $ 0 99785

       CASH TRANSFER TO VETERINARY STUDENT LOAN PROGRAM FUND (FUND 99786
5BU)99787

       On July 1, 2005, or as soon as possible thereafter, the 99788
Director of Budget and Management shall transfer $60,000 in cash 99789
from the Occupational Licensing and Regulatory Fund (Fund 4K9) to 99790
the Veterinary Student Loan Program Fund (Fund 5BU), which is 99791
hereby created. The amount of the transfer is hereby appropriated.99792

       VETERINARY STUDENT LOAN PROGRAM99793

       The foregoing appropriation item 888-602, Veterinary Student 99794
Loan Program, shall be used by the Veterinary Medical Licensing 99795
Board to implement a student loan repayment program for veterinary 99796
students focusing on large animal populations, public health, or 99797
regulatory veterinary medicine.99798

       Section 212.33.  DYS DEPARTMENT OF YOUTH SERVICES99799

General Revenue Fund99800

GRF 470-401 RECLAIM Ohio $ 177,016,683 $ 182,084,588 99801
GRF 470-412 Lease Rental Payments $ 20,267,500 $ 21,882,700 99802
GRF 470-510 Youth Services $ 18,608,587 $ 18,608,587 99803
GRF 472-321 Parole Operations $ 14,358,995 $ 14,962,871 99804
GRF 477-321 Administrative Operations $ 14,239,494 $ 14,754,420 99805
TOTAL GRF General Revenue Fund $ 244,491,259 $ 252,293,166 99806

General Services Fund Group99807

175 470-613 Education Reimbursement $ 10,112,529 $ 9,450,598 99808
4A2 470-602 Child Support $ 320,641 $ 328,657 99809
4G6 470-605 General Operational Funds $ 10,000 $ 10,000 99810
479 470-609 Employee Food Service $ 141,466 $ 137,666 99811
523 470-621 Wellness Program $ 46,937 $ 0 99812
6A5 470-616 Building Demolition $ 31,100 $ 0 99813
TOTAL GSF General Services 99814
Fund Group $ 10,662,673 $ 9,926,921 99815

Federal Special Revenue Fund Group99816

3V5 470-604 Juvenile Justice/Delinquency Prevention $ 4,254,745 $ 4,254,746 99817
3W0 470-611 Federal Juvenile Programs FFY 02 $ 222,507 $ 0 99818
3Z8 470-625 Federal Juvenile Programs FFY 04 $ 1,500,001 $ 773,812 99819
3Z9 470-626 Federal Juvenile Programs FFY 05 $ 465,000 $ 0 99820
321 470-601 Education $ 1,422,580 $ 1,465,399 99821
321 470-603 Juvenile Justice Prevention $ 1,981,169 $ 2,006,505 99822
321 470-606 Nutrition $ 2,471,550 $ 2,470,655 99823
321 470-614 Title IV-E Reimbursements $ 4,960,589 $ 6,012,361 99824
321 470-617 Americorps Programs $ 456,000 $ 463,700 99825
TOTAL FED Federal Special Revenue 99826
Fund Group $ 17,734,141 $ 17,447,178 99827

State Special Revenue Fund Group99828

147 470-612 Vocational Education $ 1,937,784 $ 2,009,866 99829
4W3 470-618 Help Me Grow $ 11,000 $ 11,000 99830
5BH 470-628 Partnerships for Success $ 1,500,000 $ 1,500,000 99831
TOTAL SSR State Special Revenue 99832
Fund Group $ 3,448,784 $ 3,520,866 99833
TOTAL ALL BUDGET FUND GROUPS $ 276,336,857 $ 283,188,131 99834

       RECLAIM OHIO99835

        Of the foregoing appropriation item 470-401, RECLAIM Ohio, 99836
$25,000 in each fiscal year shall be distributed directly to the 99837
Lighthouse Youth Services Wrap-Around Program.99838

       OHIO BUILDING AUTHORITY LEASE PAYMENTS99839

       The foregoing appropriation item 470-412, Lease Rental99840
Payments, in the Department of Youth Services, shall be used for99841
payments to the Ohio Building Authority for the period from July 99842
1, 2005, to June 30, 2007, under the primary leases and agreements 99843
for facilities made under Chapter 152. of the Revised Code, but 99844
limited to the aggregate amount of $42,150,200. This appropriation 99845
is the source of funds pledged for bond service charges on related99846
obligations issued pursuant to Chapter 152. of the Revised Code.99847

       EDUCATION REIMBURSEMENT99848

       The foregoing appropriation item 470-613, Education99849
Reimbursement, shall be used to fund the operating expenses of99850
providing educational services to youth supervised by the99851
Department of Youth Services. Operating expenses include, but are99852
not limited to, teachers' salaries, maintenance costs, and99853
educational equipment. This appropriation item may be used for99854
capital expenses related to the education program.99855

       EMPLOYEE FOOD SERVICE AND EQUIPMENT99856

       Notwithstanding section 125.14 of the Revised Code, the99857
foregoing appropriation item 470-609, Employee Food Service, may99858
be used to purchase any food operational items with funds received99859
into the fund from reimbursement for state surplus property.99860

       PARTNERSHIPS FOR SUCCESS99861

       In fiscal year 2006, the foregoing appropriation item 99862
470-628, Partnerships for Success, shall be used to support the 99863
Partnerships for Success Project. On or before January 1, 2007, 99864
the Director of Budget and Management shall transfer any amount of 99865
cash that remains unspent in the Partnerships for Success Fund 99866
(Fund 5BH) to the Children's Trust Fund (Fund 198).99867

       FEDERAL JUVENILE JUSTICE PROGRAM TRANSFER FROM THE OFFICE OF99868
CRIMINAL JUSTICE SERVICES TO THE DEPARTMENT OF YOUTH SERVICES99869

       Any business relating to the funds associated with the Office 99870
of Criminal Justice Services' appropriation item 196-602, Criminal 99871
Justice Federal Programs, commenced but not completed by the 99872
Office of Criminal Justice Services or its director shall be 99873
completed by the Department of Youth Services or its director in 99874
the same manner, and with the same effect, as if completed by the 99875
Office of Criminal Justice Services or its director. No 99876
validation, cure, right, privilege, remedy, obligation, or 99877
liability is lost or impaired by reason of the transfer and shall 99878
be administered by the Department of Youth Services.99879

       Any action or proceeding against the Office of Criminal 99880
Justice Services pending on the effective date of this section 99881
shall not be affected by the transfer of responsibility to the 99882
Department of Youth Services, and shall be prosecuted or defended 99883
in the name of the Department of Youth Services or its director. 99884
In all such actions and proceedings, the Department of Youth 99885
Services or its director upon application of the court shall be 99886
substituted as party.99887

       Section 303.03. EXPENDITURES AND APPROPRIATION INCREASES99888
APPROVED BY THE CONTROLLING BOARD99889

       Any money that the Controlling Board approves for expenditure99890
or any increase in appropriation authority that the Controlling99891
Board approves under sections 127.14, 131.35, and 131.39 of the 99892
Revised Code or any other provision of law is hereby appropriated 99893
for the period ending June 30, 2007.99894

       Section 303.06. PERSONAL SERVICE EXPENSES99895

       Unless otherwise prohibited by law, any appropriation from99896
which personal service expenses are paid shall bear the employer's99897
share of public employees' retirement, workers' compensation,99898
disabled workers' relief, and all group insurance programs; the99899
costs of centralized accounting, centralized payroll processing,99900
and related personnel reports and services; the cost of the Office99901
of Collective Bargaining; the cost of the Personnel Board of99902
Review; the cost of the Employee Assistance Program; the cost of99903
the affirmative action and equal employment opportunity programs 99904
administered by the Department of Administrative Services; the 99905
costs of interagency information management infrastructure; and 99906
the cost of administering the state employee merit system as 99907
required by section 124.07 of the Revised Code. These costs shall 99908
be determined in conformity with the appropriate sections of law 99909
and paid in accordance with procedures specified by the Office of99910
Budget and Management. Expenditures from appropriation item 99911
070-601, Public Audit Expense - Local Government, in Fund 422 may 99912
be exempted from the requirements of this section.99913

       Section 303.09. RE-ISSUANCE OF VOIDED WARRANTS99914

       In order to provide funds for the reissuance of voided99915
warrants under section 117.47 of the Revised Code, there is hereby 99916
appropriated, out of moneys in the state treasury from the fund99917
credited as provided in section 117.47 of the Revised Code, that99918
amount sufficient to pay such warrants when approved by the Office99919
of Budget and Management.99920

       Section 303.12. SATISFACTION OF JUDGMENTS AND SETTLEMENTS 99921
AGAINST THE STATE99922

       Except as otherwise provided in this section, an 99923
appropriation in this act or any other act may be used for the 99924
purpose of satisfying judgments, settlements, or administrative 99925
awards ordered or approved by the Court of Claims or by any other 99926
court of competent jurisdiction in connection with civil actions 99927
against the state. This authorization does not apply to 99928
appropriations to be applied to or used for payment of guarantees 99929
by or on behalf of the state, or for payments under lease 99930
agreements relating to, or debt service on, bonds, notes, or other 99931
obligations of the state. Notwithstanding any other statute to the 99932
contrary, this authorization includes appropriations from funds 99933
into which proceeds of direct obligations of the state are 99934
deposited only to the extent that the judgment, settlement, or 99935
administrative award is for, or represents, capital costs for 99936
which the appropriation may otherwise be used and is consistent 99937
with the purpose for which any related obligations were issued or 99938
entered into. Nothing contained in this section is intended to 99939
subject the state to suit in any forum in which it is not 99940
otherwise subject to suit, and is not intended to waive or 99941
compromise any defense or right available to the state in any suit 99942
against it.99943

       Section 303.13. CAPITAL PROJECT SETTLEMENTS99944

       This section specifies an additional and supplemental99945
procedure to provide for payments of judgments and settlements if99946
the Director of Budget and Management determines, pursuant to99947
division (C)(4) of section 2743.19 of the Revised Code, that99948
sufficient unencumbered moneys do not exist in the particular99949
appropriation to pay the amount of a final judgment rendered99950
against the state or a state agency, including the settlement of a99951
claim approved by a court, in an action upon and arising out of a99952
contractual obligation for the construction or improvement of a99953
capital facility if the costs under the contract were payable in99954
whole or in part from a state capital projects appropriation. In99955
such a case, the director may either proceed pursuant to division99956
(C)(4) of section 2743.19 of the Revised Code or apply to the99957
Controlling Board to increase an appropriation or create an99958
appropriation out of any unencumbered moneys in the state treasury99959
to the credit of the capital projects fund from which the initial99960
state appropriation was made. The Controlling Board may approve or 99961
disapprove the application as submitted or modified. The amount of 99962
an increase in appropriation or new appropriation specified in an 99963
application approved by the Controlling Board is hereby 99964
appropriated from the applicable capital projects fund and made 99965
available for the payment of the judgment or settlement.99966

       If the director does not make the application authorized by99967
this section or the Controlling Board disapproves the application,99968
and the director does not make application under division (C)(4) 99969
of section 2743.19 of the Revised Code, the director shall for the 99970
purpose of making that payment make a request to the General99971
Assembly as provided for in division (C)(5) of that section.99972

       Section 303.18. INCOME TAX DISTRIBUTION TO COUNTIES99973

       There are hereby appropriated out of any moneys in the state99974
treasury to the credit of the General Revenue Fund, which are not99975
otherwise appropriated, funds sufficient to make any payment99976
required by division (B)(2) of section 5747.03 of the Revised99977
Code.99978

       Section 303.21.  REAPPROPRIATION OF UNEXPENDED ENCUMBERED99979
BALANCES OF OPERATING APPROPRIATIONS99980

       An unexpended balance of an operating appropriation or99981
reappropriation that a state agency lawfully encumbered prior to99982
the close of a fiscal year is reappropriated on the first day of99983
July of the following fiscal year from the fund from which it was99984
originally appropriated or reappropriated for the following period99985
and shall remain available only for the purpose of discharging the99986
encumbrance:99987

       (A) For an encumbrance for personal services, maintenance,99988
equipment, or items for resale, other than an encumbrance for an99989
item of special order manufacture not available on term contract99990
or in the open market or for reclamation of land or oil and gas99991
wells for a period of not more than five months from the end of99992
the fiscal year;99993

       (B) For an encumbrance for an item of special order99994
manufacture not available on term contract or in the open market,99995
for a period of not more than five months from the end of the99996
fiscal year or, with the written approval of the Director of99997
Budget and Management, for a period of not more than twelve months99998
from the end of the fiscal year;99999

       (C) For an encumbrance for reclamation of land or oil and gas 100000
wells, for a period ending when the encumbered appropriation is 100001
expended or for a period of two years, whichever is less;100002

       (D) For an encumbrance for any other expense, for such period 100003
as the director approves, provided such period does not exceed two 100004
years.100005

       Any operating appropriations for which unexpended balances100006
are reappropriated beyond a five-month period from the end of the100007
fiscal year by division (B) of this section shall be reported to 100008
the Controlling Board by the Director of Budget and Management by 100009
the thirty-first day of December of each year. The report on each 100010
such item shall include the item, the cost of the item, and the 100011
name of the vendor. The report shall be updated on a quarterly 100012
basis for encumbrances remaining open.100013

       Upon the expiration of the reappropriation period set out in100014
divisions (A), (B), (C), or (D) of this section, a reappropriation100015
made by this section lapses, and the Director of Budget and 100016
Management shall cancel the encumbrance of the unexpended100017
reappropriation not later than the end of the weekend following 100018
the expiration of the reappropriation period.100019

       Notwithstanding the preceding paragraph, with the approval of100020
the Director of Budget and Management, an unexpended balance of an100021
encumbrance that was reappropriated on the first day of July by 100022
this section for a period specified in division (C) or (D) of this 100023
section and that remains encumbered at the close of the fiscal 100024
biennium is hereby reappropriated on the first day of July of the 100025
following fiscal biennium from the fund from which it was 100026
originally appropriated or reappropriated for the applicable 100027
period specified in division (C) or (D) of this section and shall 100028
remain available only for the purpose of discharging the 100029
encumbrance.100030

       The Director of Budget and Management may correct accounting 100031
errors committed by the staff of the Office of Budget and 100032
Management, such as re-establishing encumbrances or appropriations 100033
cancelled in error, during the cancellation of operating 100034
encumbrances in November and of non-operating encumbrances in 100035
December.100036

       If the Controlling Board approved a purchase, that approval100037
remains in effect so long as the appropriation used to make that100038
purchase remains encumbered.100039

       Section 306.03. UTILITY RADIOLOGICAL SAFETY BOARD ASSESSMENTS100040

       The maximum amounts that may be assessed against nuclear100041
electric utilities under division (B)(2) of section 4937.05 of the 100042
Revised Code are as follows:100043

FY 2006 FY 2007 100044
Department of Agriculture 100045
Fund 4E4 Utility Radiological Safety $73,059 $73,059 100046
Department of Health 100047
Fund 610 Radiation Emergency Response $850,000 $850,000 100048
Environmental Protection Agency 100049
Fund 644 ER Radiological Safety $286,114 $286,114 100050
Emergency Management Agency 100051
Fund 657 Utility Radiological Safety $1,260,000 $1,260,000 100052

       Section 312.01. TRANSFERS OF FISCAL YEAR 2005 GENERAL REVENUE 100053
FUND ENDING BALANCES100054

        Notwithstanding divisions (B)(1)(b), (B)(2), and (C) of 100055
section 131.44 of the Revised Code, fiscal year 2005 surplus 100056
revenue shall be distributed as follows:100057

        (A) The first $60,000,000 of such surplus revenue shall be 100058
transferred to Fund 5AX, Public Assistance Reconciliation Fund, to 100059
pay a portion of the remaining state TANF liability to the federal 100060
government.100061

        (B) The next $40,000,000 of such surplus revenue shall be 100062
transferred to the Disaster Services Fund (5E2), which is hereby 100063
created in the state treasury.100064

        (C) The next $50,000,000 of such surplus revenue shall be 100065
transferred to Fund 021, the Public School Building Fund.100066

        (D) Any surplus revenue in excess of the amounts distributed 100067
under divisions (A) to (C) of this section shall be transferred to 100068
the Budget Stabilization Fund.100069

       Section 312.03. TRANSFERS TO THE GENERAL REVENUE FUND FROM 100070
NON-FEDERAL NON-GRF FUNDS100071

        Notwithstanding any other provision of law to the contrary, 100072
during fiscal years 2006 and 2007, the Director of Budget and 100073
Management is hereby authorized to transfer cash from non-federal, 100074
non-General Revenue Fund funds that are not constitutionally 100075
restricted to the General Revenue Fund. The total amount of cash 100076
transfers made pursuant to this section to the General Revenue 100077
Fund during fiscal years 2006 and 2007 shall not exceed 100078
$60,000,000.100079

       Section 312.06. TRANSFERS TO THE GENERAL REVENUE FUND OF 100080
INTEREST EARNED100081

       Notwithstanding any provision of Ohio law to the contrary, 100082
the Director of Budget and Management, through June 30, 2007, may 100083
transfer interest earned by any fund in the Central Accounting 100084
System to the General Revenue Fund. This section does not apply to 100085
funds whose source of revenue is restricted or protected by the 100086
Constitution of this state, federal tax law, or the "Cash 100087
Management Improvement Act of 1990" 104 Stat. 1058 (1990), 31 100088
U.S.C. 6501, et. seq., as amended.100089

       Section 312.09. BUDGET STABILIZATION FUND TRANSFERS100090

        (A) Notwithstanding any provision of law to the contrary, 100091
through June 30, 2006, if the Director of Budget and Management 100092
determines that the estimated ending fund balance of the General 100093
Revenue Fund will be greater than the amounts assumed in this act 100094
for fiscal year 2006, the Director shall transfer at least 100095
$50,000,000 at the end of fiscal year 2006 to the Budget 100096
Stabilization Fund, if available unobligated balances exist. This 100097
division does not apply to division (A) of Section 206.66.21, TANF 100098
TRANSFERS, of this act.100099

       (B) Notwithstanding any provision of law to the contrary, 100100
through June 30, 2007, if the Director of Budget and Management 100101
determines that the estimated ending fund balance of the General 100102
Revenue Fund will be greater than the amounts assumed in this act 100103
for fiscal year 2007, the Director may transfer up to the excess 100104
balance to the Budget Stabilization Fund. This division does not 100105
apply to division (A) of Section 206.66.21, TANF TRANSFERS, of 100106
this act.100107

        (C) Notwithstanding any provision of law to the contrary, 100108
through June 30, 2007, if the Director of Budget and Management 100109
determines that state revenue receipts and available fund balances 100110
in any fund other than the General Revenue Fund exceed estimated 100111
state expenditures, the Director may transfer up to the excess 100112
revenue to the Budget Stabilization Fund. This division does not 100113
apply to revenue restricted or protected by the Ohio Constitution, 100114
federal tax law or grant requirements, or the "Cash Management 100115
Improvement Act of 1990," 104 Stat. 1058 (1990), 31 U.S.C. 6501, 100116
et seq., as amended.100117

        (D) In executing division (A) of this section and divisions 100118
(A) and (B) of Section 206.66.21, TANF TRANSFERS, it is intended 100119
that these divisions be applied and construed so that both of the 100120
transfers authorized under these divisions may be made through 100121
June 30, 2007.100122

        (E) After making the transfers described in divisions (A) to 100123
(C) of this section, the Director of Budget and Management shall 100124
submit a report to the President of the Senate and the Speaker of 100125
the House of Representatives.100126

       Section 312.10. TAX REFORM SYSTEM IMPLEMENTATION FUND 100127
TRANSFERS TO TAX AMNESTY PROGRAM100128

        Notwithstanding any provision of law to the contrary, prior 100129
to June 30, 2006, the Director of Budget and Management shall 100130
transfer $2,000,000 in cash from the Tax Reform System 100131
Implementation Fund (Fund 228) to the Tax Amnesty Promotion and 100132
Administration Fund (Fund 5BW), which is hereby created in the 100133
State Treasury. The funds shall be used to pay expenses incurred 100134
in promoting and administering the tax amnesty program run by the 100135
Department of Taxation.100136

        After receiving the revenue receipts from the tax amnesty 100137
program, the Director of Budget and Management shall transfer the 100138
first $2,000,000 to the Tax Reform System Implementation Fund, the 100139
next $10,000,000 to the General Revenue Fund, and the remaining 100140
excess fund balance to the Budget Stabilization Fund.100141

       Section 312.12. GRF TRANSFER TO FUND 5N4, OAKS PROJECT100142
IMPLEMENTATION100143

       On July 1, 2005, or as soon thereafter as possible, the100144
Director of Budget and Management shall transfer an amount not to 100145
exceed $675,000 in cash from the General Revenue Fund to Fund 5N4, 100146
OAKS Project Implementation. On July 1, 2006, or as soon 100147
thereafter as possible, the Director of Budget and Management 100148
shall transfer an amount not to exceed $675,000 in cash from the 100149
General Revenue Fund to Fund 5N4, OAKS Project Implementation.100150

       Section 312.15. CORPORATE AND UCC FILING FUND TRANSFER TO GRF100151

       Not later than the first day of June in each year of the100152
biennium, the Director of Budget and Management shall transfer100153
$1,000,000 from the Corporate and Uniform Commercial Code Filing100154
Fund to the General Revenue Fund.100155

       Section 312.18. GRF TRANSFER TO THE NATIONAL GUARD 100156
SCHOLARSHIP RESERVE FUND100157

       On July 1, 2005, or as soon as possible thereafter, the 100158
Director of Budget and Management shall transfer up to $592,000 100159
cash from the General Revenue Fund to the National Guard 100160
Scholarship Reserve Fund (Fund 5BM).100161

       Section 312.19. GRF TRANSFER TO THE PUBLIC SCHOOL BUILDING 100162
FUND100163

       In fiscal year 2006, the Director of Budget and Management 100164
shall transfer $30,000,000 in cash from the General Revenue Fund 100165
to Fund 021, the Public School Building Fund.100166

       Section 312.21. APPROPRIATIONS RELATED TO CASH TRANSFERS AND100167
RE-ESTABLISHMENT OF ENCUMBRANCES100168

       Any cash transferred by the Director of Budget and Management100169
under section 126.15 of the Revised Code is hereby appropriated.100170
Any amounts necessary to re-establish appropriations or100171
encumbrances under section 126.15 of the Revised Code are hereby 100172
appropriated.100173

       Section 312.24. TRANSFERS FROM THE TOBACCO MASTER SETTLEMENT 100174
AGREEMENT FUND100175

        (A) Notwithstanding section 183.02 of the Revised Code, on 100176
July 1, 2005, or as soon as possible thereafter, the Director of 100177
Budget and Management shall transfer from the Tobacco Master 100178
Settlement Agreement Fund (Fund 087) $5,000,000 cash to the 100179
General Revenue Fund, up to $5,000,000 cash to the Healthy Ohioans 100180
Initiative Fund (Fund 5BL in the Department of Health), $6,000,000 100181
cash to the Children's Hospitals Fund (Fund 5CR in the Department 100182
of Job and Family Services), and $10,000,000 cash to the Lung 100183
Cancer and Lung Disease Research Fund (Fund 5CY in the Department 100184
of Development). Of the tobacco revenue that is credited to the 100185
Tobacco Master Settlement Agreement Fund (Fund 087) in fiscal year 100186
2005, the share that is determined pursuant to section 183.02 of 100187
the Revised Code to be the amount transferred by the Director of 100188
Budget and Management from the Tobacco Master Settlement Agreement 100189
Fund (Fund 087) to the Tobacco Use Prevention and Cessation Trust 100190
Fund (Fund H87) shall be reduced by the amount that is transferred 100191
from the Tobacco Master Settlement Agreement Fund (Fund 087) to 100192
various funds pursuant to this division.100193

       (B) Notwithstanding section 183.02 of the Revised Code, on 100194
July 1, 2006, or as soon as possible thereafter, the Director of 100195
Budget and Management shall transfer from the Tobacco Master 100196
Settlement Agreement Fund (Fund 087) $6,000,000 cash to the 100197
Children's Hospitals Fund (Fund 5CR in the Department of Job and 100198
Family Services). Of the tobacco revenue that is credited to the 100199
Tobacco Master Settlement Agreement Fund (Fund 087) in fiscal year 100200
2006, the share that is determined pursuant to section 183.02 of 100201
the Revised Code to be the amount transferred by the Director of 100202
Budget and Management from the Tobacco Master Settlement Agreement 100203
Fund (Fund 087) to the Tobacco Use Prevention and Cessation Trust 100204
Fund (Fund H87) shall be reduced by the amount that is transferred 100205
from the Tobacco Master Settlement Agreement Fund (Fund 087) 100206
pursuant to this division.100207

       (C) Notwithstanding section 183.02 of the Revised Code, on 100208
July 1, 2006, or as soon as possible thereafter, the Director of 100209
Budget and Management shall transfer $800,000 cash from the 100210
Tobacco Master Settlement Agreement Fund (Fund 087) to the General 100211
Revenue Fund. Of the tobacco revenue that is credited to the 100212
Tobacco Master Settlement Agreement Fund (Fund 087) in fiscal year 100213
2006, the share that is determined pursuant to section 183.02 of 100214
the Revised Code to be the amount transferred by the Director of 100215
Budget and Management from the Tobacco Master Settlement Agreement 100216
Fund (Fund 087) to the Ohio's Public Health Priorities Trust Fund 100217
(Fund L87) shall be reduced by the amount that is transferred from 100218
the Tobacco Master Settlement Agreement Fund (Fund 087) to the 100219
General Revenue Fund under this division.100220

       Section 312.27. TRANSFERS TO THE EDUCATION FACILITIES TRUST 100221
FUND100222

       Notwithstanding section 183.02 of the Revised Code, after all 100223
transfers from the Tobacco Master Settlement Agreement Fund (Fund 100224
087) to various other funds of cash that would have otherwise been 100225
transferred to the Tobacco Use Prevention and Cessation Trust Fund 100226
(Fund H87) in fiscal year 2006 have been made, the Director of 100227
Budget and Management shall transfer the remaining balance of the 100228
funds that would otherwise be transferred to the Tobacco Use 100229
Prevention and Cessation Trust Fund in fiscal year 2006 to the 100230
Education Facilities Trust Fund (Fund N87).100231

       Notwithstanding section 183.02 of the Revised Code, after all 100232
transfers from the Tobacco Master Settlement Agreement Fund (Fund 100233
087) to various other funds of cash that would have otherwise been 100234
transferred to the Tobacco Use Prevention and Cessation Trust Fund 100235
(Fund H87) in fiscal year 2007 have been made, the Director of 100236
Budget and Management shall transfer the remaining balance of the 100237
funds that would otherwise be transferred to the Tobacco Use 100238
Prevention and Cessation Trust Fund in fiscal year 2007 to the 100239
Education Facilities Trust Fund (Fund N87).100240

       Section 315.03. CONSOLIDATION OF REGULATORY BOARDS100241

       (A) It is the intent of the General Assembly to consolidate 100242
the following health-related regulatory boards within the 100243
Department of Health not later than July 1, 2006:100244

        (1) The Chemical Dependency Professionals Board;100245

        (2) The Board of Chiropractic Examiners;100246

        (3) The Counselor, Social Worker, and Marriage and Family 100247
Therapist Board;100248

        (4) The Ohio Board of Dietetics;100249

        (5) The Ohio Occupational Therapy, Physical Therapy, and 100250
Athletic Trainers Board;100251

        (6) The Ohio Optical Dispensers Board;100252

        (7) The State Board of Optometry;100253

        (8) The State Board of Orthotics, Prosthetics, and 100254
Pedorthics;100255

        (9) The State Board of Psychology;100256

        (10) The Ohio Respiratory Care Board;100257

        (11) The Board of Speech-Language Pathology and Audiology;100258

        (12) The State Veterinary Medical Licensing Board.100259

        (B) It is the intent of the General Assembly to consolidate 100260
the following regulatory boards and commissions within the 100261
Department of Commerce not later than July 1, 2006:100262

        (1) The Ohio Athletic Commission;100263

        (2) The Barber Board;100264

        (3) The State Board of Cosmetology;100265

        (4) The Board of Embalmers and Funeral Directors;100266

        (5) The Manufactured Homes Commission;100267

        (6) The Board of Motor Vehicle Collision Repair Registration;100268

        (7) The State Board of Sanitarian Registration.100269

        (C) It is the intent of the General Assembly to consolidate 100270
the Ohio Medical Transportation Board within the Department of 100271
Public Safety not later than July 1, 2006.100272

        (D) The Director of Budget and Management and the Directors 100273
of Administrative Services, Commerce, Health, and Public Safety 100274
shall appoint representatives to a transition team. In addition, 100275
the transition team shall include a total of three members 100276
representing the affected regulatory boards, to be selected by the 100277
executive directors of those boards.100278

        The transition team shall develop a plan to ensure the smooth 100279
and timely consolidation of the boards into the respective 100280
departments. The transition team shall address the details of the 100281
consolidations, identifying necessary statutory changes and 100282
working with the Office of Budget and Management to develop 100283
budgets for the respective departments and the consolidated boards 100284
and commissions. The transition team may recommend additional 100285
regulatory boards or commissions to be consolidated and may 100286
recommend modifications to the planned consolidations.100287

        The transition team shall submit a report containing 100288
recommendations and the details for the consolidations not later 100289
than December 31, 2005, to the Governor, the Speaker of the House 100290
of Representatives, and the President of the Senate. The report 100291
and recommendations shall address the following issues, and may 100292
address additional issues:100293

        (1) The necessary levels of funding;100294

        (2) The savings projected as a result of the consolidations;100295

        (3) The consolidation of activities between each board or 100296
commission and the department providing centralized services, 100297
including the role of the members of the board or commission and 100298
the role of the department;100299

        (4) The staffing levels needed, whether employees must be 100300
retained, and whether any employees retained have civil service 100301
status;100302

        (5) The continuation of the standards and procedures of the 100303
board or commission;100304

        (6) The continuation of rules and whether any rules need to 100305
be amended as a result of the consolidations;100306

        (7) The transfer of assets, liabilities, and contractual 100307
obligations;100308

        (8) The transfer of records and other materials pertaining to 100309
the board or commission.100310

        (E) It is the intent of the General Assembly to introduce a 100311
bill in fiscal year 2006 that will include the necessary statutory 100312
changes to effect the consolidations and that will include revised 100313
appropriations for the departments and the consolidated boards and 100314
commissions for fiscal year 2007.100315

       Section 315.04.  RECOMMENDATIONS FOR A STATE GOVERNMENT 100316
REORGANIZATION PLAN100317

       Within thirty days after the effective date of this section, 100318
the Department of Administrative Services shall begin developing 100319
recommendations for a state government reorganization plan focused 100320
on increased efficiencies in the operation of state government and 100321
a reduced number of state agencies. The Department shall present 100322
its recommendations to the Speaker of the House of 100323
Representatives, the President of the Senate, the Minority Leader 100324
of the House of Representatives, and the Minority Leader of the 100325
Senate by not later than January 1, 2007.100326

       Section 315.06. CAREER-TECHNICAL SCHOOL BUILDING ASSISTANCE 100327
PROGRAM100328

       All materials, assets, liabilities, and records of the 100329
Department of Education, irrespective of form or medium, deemed 100330
necessary by the Ohio School Facilities Commission to implement 100331
sections 3318.47, 3318.48, and 3318.49 of the Revised Code shall 100332
be transferred to the Commission not later than one hundred twenty 100333
days after the effective date of this section, in accordance with 100334
a transition plan which shall be developed and approved by the 100335
Commission in consultation with the Department.100336

       All current and pending loans and appropriations, 100337
encumbrances, and funds related to the Career-Technical School 100338
Building Assistance Fund (Fund 020), deemed necessary by the 100339
Commission to implement section 3318.48 of the Revised Code, shall 100340
be transferred to the Commission not later than one hundred twenty 100341
days after the effective date of this section in accordance with 100342
the transition plan.100343

       Any business commenced but not completed by the Department on 100344
the effective date of this section relating to the implementation 100345
of section 3318.48 of the Revised Code and the functions 100346
transferred by this section shall continue to be administered by 100347
the Department for a period of one hundred twenty days after the 100348
effective date of this section or until the transition plan 100349
described in this section is approved by the Commission, whichever 100350
occurs first. The Department shall provide the Commission whatever 100351
administrative assistance the Commission requires during the 100352
period of transition, which assistance shall be specified in the 100353
transition plan described in this section.100354

       Wherever any law, contract, or other document refers to the 100355
Department, the State Board of Education, or the Superintendent of 100356
Public Instruction in regard to the implementation or 100357
administration of section 3318.48 of the Revised Code, the 100358
references shall be deemed to refer to the Commission or the 100359
Director of the Commission. No action or proceeding pending on the 100360
effective date of this section relating to the implementation or 100361
administration of Chapter 3318. of the Revised Code is affected by 100362
the transfer. In all such actions and proceedings, the Commission 100363
or the Director shall be substituted as a party upon application 100364
by the receiving entity to the court or other appropriate 100365
tribunal.100366

       Section 315.09. ELIMINATION OF THE OHIO EDUCATIONAL 100367
TELECOMMUNICATIONS NETWORK COMMISSION100368

       (A) Effective July 1, 2005, the Ohio Educational 100369
Telecommunications Network Commission is abolished and its 100370
functions, assets, and liabilities, including but not limited to 100371
vehicles and equipment assigned to employees of the Commission and 100372
records of the Commission regardless of form or medium, are 100373
transferred to the eTech Ohio Commission. The eTech Ohio 100374
Commission is thereupon and thereafter successor to, assumes the 100375
obligations of, and otherwise constitutes the continuation of the 100376
Ohio Educational Telecommunications Network Commission. The 100377
functions of the Executive Director of the Ohio Educational 100378
Telecommunications Network Commission are thereupon and thereafter 100379
transferred to the Executive Director of the eTech Ohio 100380
Commission.100381

       Any business commenced but not completed by the Ohio 100382
Educational Telecommunications Network Commission or the Executive 100383
Director of the Ohio Educational Telecommunications Network 100384
Commission on July 1, 2005, shall be completed by the eTech Ohio 100385
Commission or the Executive Director of the eTech Ohio Commission, 100386
respectively, in the same manner, and with the same effect, as if 100387
completed by the Ohio Educational Telecommunications Network 100388
Commission or the Executive Director of the Ohio Educational 100389
Telecommunications Network Commission. No validation, cure, right, 100390
privilege, remedy, obligation, or liability is lost or impaired by 100391
reason of the transfer required under this section and shall be 100392
administered by the eTech Ohio Commission. All of the Ohio 100393
Educational Telecommunications Network Commission's rules, orders, 100394
and determinations continue in effect as rules, orders, and 100395
determinations of the eTech Ohio Commission, until modified or 100396
rescinded by the eTech Ohio Commission. If necessary to ensure the 100397
integrity of the Administrative Code, the Director of the 100398
Legislative Service Commission shall renumber the Ohio Educational 100399
Telecommunications Network Commission's rules to reflect their 100400
transfer to the eTech Ohio Commission.100401

       (B) Employees of the Ohio Educational Telecommunications 100402
Network Commission shall be transferred to the eTech Ohio 100403
Commission or dismissed. Employees of the Ohio Educational 100404
Telecommunications Network Commission so dismissed cease to hold 100405
their positions of employment on July 1, 2005.100406

       (C) No judicial or administrative action or proceeding in 100407
which the Ohio Educational Telecommunications Network Commission 100408
or the Executive Director of the Commission is a party that is 100409
pending on July 1, 2005, is affected by the transfer of functions 100410
under division (A) of this section. Such action or proceeding 100411
shall be prosecuted or defended in the name of the eTech Ohio 100412
Commission. On application to the court or other tribunal, the 100413
eTech Ohio Commission shall be substituted for the Executive 100414
Director of the Ohio Educational Telecommunications Network or the 100415
Commission as a party to such action or proceeding.100416

       (D) On and after July 1, 2005, when the Ohio Educational 100417
Telecommunications Network Commission or the Executive Director of 100418
the Ohio Educational Telecommunications Network Commission is 100419
referred to in any statute, rule, contract, grant, or other 100420
document, the reference is hereby deemed to refer to the eTech 100421
Ohio Commission or the Executive Director of the eTech Ohio 100422
Commission, respectively.100423

       Section 315.10. ELIMINATION OF THE OHIO SCHOOLNET COMMISSION100424

       (A) Effective July 1, 2005, the Ohio SchoolNet Commission is 100425
abolished and its functions, assets, and liabilities, including, 100426
but not limited to, vehicles and equipment assigned to employees 100427
of the Commission and records of the Commission regardless of form 100428
or medium, are transferred to the eTech Ohio Commission. The eTech 100429
Ohio Commission is thereupon and thereafter successor to, assumes 100430
the obligations of, and otherwise constitutes the continuation of 100431
the Ohio SchoolNet Commission. The functions of the Executive 100432
Director of the Ohio SchoolNet Commission are thereupon and 100433
thereafter transferred to the Executive Director of the eTech Ohio 100434
Commission.100435

       Any business commenced but not completed by the Ohio 100436
SchoolNet Commission or the Executive Director of the Ohio 100437
SchoolNet Commission on July 1, 2005, shall be completed by the 100438
eTech Ohio Commission or the Executive Director of the eTech Ohio 100439
Commission, respectively, in the same manner, and with the same 100440
effect, as if completed by the Ohio SchoolNet Commission or the 100441
Executive Director of the Ohio SchoolNet Commission. No 100442
validation, cure, right, privilege, remedy, obligation, or 100443
liability is lost or impaired by reason of the transfer required 100444
under this section and shall be administered by the eTech Ohio 100445
Commission. All of the Ohio SchoolNet Commission's rules, orders, 100446
and determinations continue in effect as rules, orders, and 100447
determinations of the eTech Ohio Commission, until modified or 100448
rescinded by the eTech Ohio Commission. If necessary to ensure the 100449
integrity of the Administrative Code, the Director of the 100450
Legislative Service Commission shall renumber the Ohio SchoolNet 100451
Commission's rules to reflect their transfer to the eTech Ohio 100452
Commission.100453

       (B) Employees of the Ohio SchoolNet Commission shall be 100454
transferred to the eTech Ohio Commission or dismissed. Employees 100455
of the Ohio SchoolNet Commission so dismissed cease to hold their 100456
positions of employment on July 1, 2005.100457

       (C) No judicial or administrative action or proceeding in 100458
which the Ohio SchoolNet Commission or the Executive Director of 100459
the Commission is a party that is pending on July 1, 2005, is 100460
affected by the transfer of functions under division (A) of this 100461
section. Such action or proceeding shall be prosecuted or defended 100462
in the eTech Ohio Commission. On application to the court or other 100463
tribunal, the eTech Ohio Commission shall be substituted for the 100464
Executive Director of the Ohio SchoolNet Commission as a party to 100465
such action or proceeding.100466

       (D) On and after July 1, 2005, when the Ohio SchoolNet 100467
Commission or the Executive Director of the Ohio SchoolNet 100468
Commission is referred to in any statute, rule, contract, grant, 100469
or other document, the reference is hereby deemed to refer to the 100470
eTech Ohio Commission or the Executive Director of the eTech Ohio 100471
Commission, respectively.100472

       (E) If the Department of Education receives any expenditure 100473
and program reports for fiscal year 2005 for programs that were 100474
administered by the Ohio SchoolNet Commission during that fiscal 100475
year, the Department shall forward those reports to the eTech Ohio 100476
Commission by September 30, 2005.100477

       Section 315.11. TRANSFER OF FUNDS TO THE AGENCIES100478

        On and after July 1, 2005, notwithstanding any provision of 100479
law to the contrary, the Director of Budget and Management is 100480
authorized to take the actions described in this section with 100481
respect to budget changes made necessary by administrative 100482
reorganization, program transfers, the creation of new funds, and 100483
the consolidation of funds as authorized by this act. The Director 100484
may make any transfer of cash balances between funds. At the 100485
request of the Director, the Ohio Educational Telecommunications 100486
Network Commission and the Ohio SchoolNet Commission shall certify 100487
to the Director an estimate of the amount of the cash balance to 100488
be transferred to the receiving funds. The Director may transfer 100489
the estimated amount when needed to make payments. Not more than 100490
thirty days after certifying the estimated amount, the Commissions 100491
shall certify the final amount to the Director. The Director shall 100492
transfer the difference between any amount previously transferred 100493
and the certified final amount. The Director may cancel 100494
encumbrances and re-establish encumbrances or parts of 100495
encumbrances as needed in fiscal year 2006 in the appropriate 100496
funds and appropriation items for the same purposes. The 100497
appropriation authority necessary to re-establish such 100498
encumbrances in fiscal year 2006 as determined by the Director, in 100499
a different fund or appropriation item, within an agency or 100500
between agencies, is hereby appropriated. When re-established 100501
encumbrances or parts of re-established encumbrances are 100502
cancelled, the Director shall reduce the appropriations for these 100503
respective funds and appropriation items by the amount of the 100504
encumbrances cancelled. The amounts cancelled are hereby 100505
authorized. Any fiscal year 2005 unencumbered or unallotted 100506
appropriation balances may be transferred to the appropriate funds 100507
and appropriation items to be used for the same purposes, as 100508
determined by the Director. The amounts transferred are hereby 100509
appropriated.100510

       Section 316.03. (A) On July 1, 2005, or as soon as possible 100511
thereafter, the Speaker of the House of Representatives, the 100512
President of the Senate, and the Governor, with the advice and 100513
consent of the Senate, shall appoint members to the eTech Ohio 100514
Commission as required by section 3353.02 of the Revised Code, as 100515
enacted by this act. On July 1, 2005, or as soon as possible 100516
thereafter, the Governor shall appoint a chairperson of the 100517
Commission as required by section 3353.02 of the Revised Code. 100518
Notwithstanding division (F) of that section, the initial 100519
chairperson appointed by the Governor shall serve until July 1, 100520
2006, at which time the Governor shall appoint a chairperson in 100521
accordance with that section.100522

       (B) Notwithstanding section 3353.03 of the Revised Code, as 100523
enacted by this act, the Governor, with the advice and consent of 100524
the Senate, shall appoint an interim executive director of the 100525
Commission on July 1, 2005, or as soon as possible thereafter. The 100526
interim executive director shall serve for one year or until the 100527
Commission appoints an executive director pursuant to that 100528
section, whichever is earlier. The Governor shall fix the 100529
compensation of the interim executive director. The interim 100530
executive director shall exercise any authority provided by law to 100531
the executive director of the Commission or delegated to the 100532
interim executive director by the Commission.100533

       (C) Notwithstanding any provision of law to the contrary, the 100534
Director of Budget and Management, or the Director's designee, may 100535
do both of the following:100536

       (1) Exercise any authority provided by law to the eTech Ohio 100537
Commission until Commission members hold their first meeting 100538
following their appointment under this section;100539

       (2) Exercise any authority provided by law to the executive 100540
director of the Commission, or delegated to the Director of Budget 100541
and Management, or the Director's designee, by the Commission, 100542
until an interim executive director of the Commission is appointed 100543
under this section.100544

       Section 318.03. GENERAL OBLIGATION DEBT SERVICE PAYMENTS100545

       Certain appropriations are in this act for the purpose of100546
paying debt service and financing costs on general obligation100547
bonds or notes of the state issued pursuant to the Ohio100548
Constitution and acts of the General Assembly. If it is determined 100549
that additional appropriations are necessary for this purpose, 100550
such amounts are hereby appropriated.100551

       Section 318.06.  LEASE PAYMENTS TO OPFC, OBA, AND TREASURER 100552
OF STATE100553

       Certain appropriations are in this act for the purpose of100554
making lease payments pursuant to leases and agreements relating100555
to bonds or notes issued by the Ohio Building Authority or the100556
Treasurer of State or, previously, by the Ohio Public Facilities100557
Commission, pursuant to the Ohio Constitution and acts of the100558
General Assembly. If it is determined that additional100559
appropriations are necessary for this purpose, such amounts are100560
hereby appropriated.100561

       Section 318.09. AUTHORIZATION FOR TREASURER OF STATE AND OBM 100562
TO EFFECTUATE CERTAIN DEBT SERVICE PAYMENTS100563

       The Office of Budget and Management shall initiate and100564
process disbursements from general obligation and lease rental 100565
payment appropriation items during the period from July 1, 2005, 100566
to June 30, 2007, relating to bonds or notes issued under Sections 100567
2i, 2k, 2l, 2m, 2n, 2o, and 15 of Article VIII, Ohio Constitution, 100568
and Chapters 151. and 154. of the Revised Code. Disbursements 100569
shall be made upon certification by the Treasurer of State of the 100570
dates and the amounts due on those dates.100571

       Section 318.12. ISSUANCE OF OBLIGATIONS BY THE OHIO COAL 100572
DEVELOPMENT OFFICE100573

       The Ohio Public Facilities Commission, upon the request of 100574
the Director of the Ohio Coal Development Office of the Ohio Air 100575
Quality Development Authority with the advice of the Technical 100576
Advisory Committee created in section 1551.35 of the Revised Code 100577
and the approval of the Executive Director of the Ohio Air Quality 100578
Development Authority, is hereby authorized to issue and sell, in 100579
accordance with Section 15 of Article VIII, Ohio Constitution, and 100580
Chapter 151. and particularly sections 151.01 and 151.07 of the 100581
Revised Code, bonds and other obligations of the State of Ohio in 100582
an aggregate principal amount not to exceed $15,000,000 in 100583
addition to the issuance of obligations heretofore authorized by 100584
prior acts of the General Assembly. The obligations shall be 100585
dated, issued, and sold from time to time in such amounts as may 100586
be necessary to provide sufficient moneys to the credit of the 100587
Coal Research and Development Fund created in section 1555.15 of 100588
the Revised Code to pay costs charged to the fund when due.100589

       Section 321.03.  STATE AND LOCAL REBATE AUTHORIZATION100590

       There is hereby appropriated, from those funds designated by100591
or pursuant to the applicable proceedings authorizing the issuance100592
of state obligations, amounts computed at the time to represent100593
the portion of investment income to be rebated or amounts in lieu100594
of or in addition to any rebate amount to be paid to the federal100595
government in order to maintain the exclusion from gross income100596
for federal income tax purposes of interest on those state100597
obligations under section 148(f) of the Internal Revenue Code.100598

       Rebate payments shall be approved and vouchered by the Office100599
of Budget and Management.100600

       Section 321.06.  FEDERAL CASH MANAGEMENT IMPROVEMENT ACT100601

       Pursuant to the plan for compliance with the Federal Cash100602
Management Improvement Act required by section 131.36 of the100603
Revised Code, the Director of Budget and Management may cancel and 100604
re-establish all or part of encumbrances in like amounts within 100605
the funds identified by the plan. The amounts necessary to 100606
re-establish all or part of encumbrances are hereby appropriated.100607

       Section 321.09. STATEWIDE INDIRECT COST RECOVERY100608

       Whenever the Director of Budget and Management determines100609
that an appropriation made to a state agency from a fund of the100610
state is insufficient to provide for the recovery of statewide100611
indirect costs under section 126.12 of the Revised Code, the100612
amount required for such purpose is hereby appropriated from the100613
available receipts of such fund.100614

       Section 321.10.  GRF TRANSFERS ON BEHALF OF THE STATEWIDE100615
INDIRECT COST ALLOCATION PLAN100616

       The total transfers made from the General Revenue Fund by the100617
Director of Budget and Management under this section shall not 100618
exceed the amounts transferred into the General Revenue Fund under 100619
division (B) of section 126.12 of the Revised Code.100620

       The director of an agency may certify to the Director of 100621
Budget and Management the amount of expenses not allowed to be 100622
included in the Statewide Indirect Cost Allocation Plan under 100623
federal regulations, from any fund included in the Statewide 100624
Indirect Cost Allocation Plan, prepared as required by section 100625
126.12 of the Revised Code.100626

       Upon determining that no alternative source of funding is100627
available to pay for such expenses, the Director of Budget and100628
Management may transfer from the General Revenue Fund into the100629
fund for which the certification is made, up to the amount of the100630
certification. The director of the agency receiving such funds100631
shall include, as part of the next budget submission prepared100632
under section 126.02 of the Revised Code, a request for funding 100633
for such activities from an alternative source such that further 100634
federal disallowances would not be required.100635

       Section 321.11.  FEDERAL GOVERNMENT INTEREST REQUIREMENTS100636

       Notwithstanding any provision of law to the contrary, on or100637
before the first day of September of each fiscal year, the100638
Director of Budget and Management, in order to reduce the payment100639
of adjustments to the federal government, as determined by the100640
plan prepared under division (A) of section 126.12 of the Revised 100641
Code, may designate such funds as the director considers necessary 100642
to retain their own interest earnings.100643

       Section 401.05. That Sections 16.09, 19.01, 20.01, 22.03, 100644
22.04, 23.02, 23.12, 23.13, 23.19, 23.26, 23.45, and 24.01 of Am. 100645
Sub. H.B. 16 of the 126th General Assembly be amended to read as 100646
follows:100647

Appropriations

       Sec. 16.09. OSB SCHOOL FOR THE BLIND100648

CAP-774 Glass Windows/E Wall of Natatorium $ 63,726 100649
CAP-775 Renovation of Science Lab Greenhouse $ 58,850 100650
CAP-776 Renovating Recreation Area $ 213,900 100651
CAP-777 New Classrooms for Secondary MH Program $ 880,407 100652
CAP-778 Renovation of Student Health Service Area $ 144,375 100653
CAP-779 Replacement of Cottage Windows $ 208,725 100654
CAP-780 782 New School Lighting $ 184,500 100655
CAP-781 Food Prep. Area Air Conditioning $ 67,250 100656
Total School for the Blind $ 1,821,733 100657

       Sec. 19.01. All items set forth in this section are hereby100658
appropriated out of any moneys in the state treasury to the credit100659
of the Cultural and Sports Facilities Building Fund (Fund 030) 100660
that are not otherwise appropriated.100661

Appropriations

AFC CULTURAL FACILITIES COMMISSION
100662

CAP-010 Sandusky State Theatre Improvements $ 325,000 100663
CAP-013 Stambaugh Hall Improvements $ 250,000 100664
CAP-033 Woodward Opera House Renovation $ 100,000 100665
CAP-038 Center Exhibit Replacement $ 816,000 100666
CAP-043 Statewide Site Repairs $ 100,000 100667
CAP-044 National Underground Railroad Freedom Center $ 4,150,000 100668
CAP-046 Cincinnati Museum Center Improvements $ 250,000 100669
CAP-052 Akron Art Museum $ 1,012,500 100670
CAP-053 Powers Auditorium Improvements - Eleanor Beecher Flad Pavilion $ 250,000 100671
CAP-065 Beck Center for the Cultural Arts $ 100,000 100672
CAP-069 Cleveland Institute of Art $ 250,000 100673
CAP-071 Cleveland Institute of Music $ 750,000 100674
CAP-073 Marina District/Ice Arena Development $ 3,500,000 100675
CAP-074 Stan Hywet Hall & Gardens - West Vista Restoration $ 750,000 100676
CAP-745 Emergency Repairs $ 838,560 100677
CAP-769 Rankin House State Memorial $ 192,000 100678
CAP-781 Archives and Library Automation $ 624,000 100679
CAP-784 Center Rehabilitation $ 960,000 100680
CAP-806 Grant Boyhood Home Improvements $ 480,000 100681
CAP-812 Schuster Arts Center $ 5,500,000 100682
CAP-823 Marion Palace Theatre $ 750,000 100683
CAP-826 Renaissance Theatre $ 750,000 100684
CAP-834 Galion Historic Big Four Depot Restoration $ 170,000 100685
CAP-835 Jamestown Opera House $ 125,000 100686
CAP-844 Charles A. Eulett Education Center/Edge of Appalachia Museum Center $ 1,850,000 100687
CAP-845 Lima Historic Athletic Field $ 100,000 100688
CAP-846 Butler Palace Theatre $ 100,000 200,000 100689
CAP-847 Voice of America Museum $ 275,000 100690
CAP-848 Oxford Arts Center ADA Project $ 72,000 100691
CAP-849 Clark County Community Arts Expansion Project $ 500,000 100692
CAP-850 Westcott House Historic Site $ 75,000 100693
CAP-851 General Lytle Homestead - Harmony Hill $ 50,000 100694
CAP-852 Miami Township Community Amphitheatre $ 50,000 100695
CAP-853 Western Reserve Historical Society $ 1,000,000 100696
CAP-854 Steamship Mather Museum $ 100,000 100697
CAP-855 Rock and Roll Hall of Fame $ 250,000 100698
CAP-856 Friendly Inn Settlement House Historic Site $ 250,000 100699
CAP-857 Merrick House Historic Site $ 250,000 100700
CAP-858 Strongsville Historic Building $ 100,000 100701
CAP-859 Arts Castle $ 100,000 100702
CAP-860 Great Lakes Historical Society $ 325,000 100703
CAP-861 Ohio Glass Museum $ 250,000 100704
CAP-862 Goll Wood Homestead $ 50,000 100705
CAP-863 Ariel Theatre $ 100,000 100706
CAP-864 Bellbrook/Sugarcreek Historical Society $ 10,000 100707
CAP-865 Kennedy Stone House $ 15,000 100708
CAP-866 Sports Facilities Improvements - Cincinnati $ 4,350,000 100709
CAP-867 Ensemble Theatre $ 450,000 100710
CAP-868 Taft Museum $ 500,000 100711
CAP-869 Art Academy of Cincinnati $ 100,000 100712
CAP-870 Riverbend Pavilion Improvements $ 250,000 100713
CAP-871 Cincinnati Art & Technology Academy - Longworth Hall $ 100,000 100714
CAP-872 Music Hall: Over-The-Rhine $ 750,000 100715
CAP-873 John Bloomfield Home Restoration $ 115,000 100716
CAP-874 Malinta Historical Society Caboose Exhibit $ 6,000 100717
CAP-875 Hocking County Historical Society - Schempp House $ 10,000 100718
CAP-876 Art Deco Markay Theater $ 200,000 100719
CAP-877 Harvey Wells House $ 100,000 100720
CAP-878 Bryn Du $ 250,000 100721
CAP-879 Broad Street Historical Renovation $ 300,000 100722
CAP-880 Amherst Historical Society $ 35,000 100723
CAP-881 COSI - Toledo $ 1,900,000 100724
CAP-882 Ohio Theatre - Toledo $ 100,000 100725
CAP-883 Chester Academy Historic Site Renovations $ 25,000 100726
CAP-884 Bradford Ohio Railroad Museum $ 100,000 100727
CAP-885 Montgomery County Historical Society Archives $ 100,000 100728
CAP-886 Nelson T. Gant Historic Homestead $ 25,000 100729
CAP-887 Aurora Outdoor Sports Complex $ 50,000 100730
CAP-888 Preble County Historical Society $ 100,000 100731
CAP-889 Tecumseh Sugarloaf Mountain Amphitheatre $ 120,000 100732
CAP-890 Pro Football Hall of Fame $ 400,000 100733
CAP-891 MAPS Air Museum $ 15,000 100734
CAP-892 Foundation Community Threatre Theatre $ 50,000 100735
CAP-893 William McKinley Library Restoration $ 250,000 100736
CAP-894 Hale Farm & Village $ 250,000 100737
CAP-895 Blossom Music Center $ 2,512,500 100738
CAP-896 Richard Howe House $ 100,000 100739
CAP-897 Ward-Thomas Museum $ 30,000 100740
CAP-898 Packard Music Hall Renovation Project $ 100,000 100741
CAP-899 Holland Theatre $ 100,000 100742
CAP-900 Van Wert Historical Society $ 32,000 100743
CAP-901 Warren County Historical Society $ 225,000 100744
CAP-902 Marietta Colony Theatre $ 335,000 100745
CAP-903 West Salem Village Opera House $ 92,000 100746
CAP-904 Beavercreek Community Theater $ 100,000 100747
CAP-905 Smith Orr Homestead $ 100,000 100748
Total Cultural Facilities Commission $ 43,592,560 41,165,060 100749
TOTAL Cultural and Sports Facilities Building Fund $ 43,592,560 41,165,060 100750


       Sec. 20.01. All items set forth in this section are hereby100752
appropriated out of any moneys in the state treasury to the credit100753
of the Ohio Parks and Natural Resources Fund (Fund 031) that are100754
not otherwise appropriated.100755

Appropriations

DNR DEPARTMENT OF NATURAL RESOURCES
100756

STATEWIDE AND LOCAL PROJECTS
100757

CAP-012 Land Acquisition $ 750,000 100758
CAP-051 Buck Creek State Park - Camp/Dock Renovations $ 25,000 100759
CAP-060 East Fork State Park Renovation $ 50,000 100760
CAP-068 Kennedy Stone House $ 15,000 100761
CAP-080 Atwood Lake Conservancy District $ 75,000 100762
CAP-083 John Bryan State Park Shelter Construction $ 30,000 100763
CAP-084 Findley State Park General Improvements $ 12,500 100764
CAP-085 The Wilds Carnivore Center $ 1,000,000 100765
CAP-086 Scippo Creek Conservation $ 75,000 100766
CAP-087 Belpre City Swimming Pool $ 125,000 100767
CAP-705 Ohio-Erie Canal Tuscarawas River Logjam Removal $ 25,000 100768
CAP-748 Local Parks Projects - Statewide $ 2,511,079 100769
CAP-753 Project Planning $ 1,144,316 100770
CAP-881 Dam Rehabilitation $ 5,000,000 100771
CAP-931 Wastewater/Water Systems Upgrades $ 2,900,000 100772
Total Statewide and Local Projects $ 13,722,895 100773
12,737,895 100774
Total Department of Natural Resources $ 13,722,895 100775
12,737,895 100776
TOTAL Ohio Parks and Natural Resources Fund $ 13,722,895 100777
12,737,895 100778


Appropriations

       Sec. 22.03.  DMH DEPARTMENT OF MENTAL HEALTH100780

CAP-479 Community Assistance Projects $ 1,800,000 1,950,000 100781
CAP-978 Infrastructure Improvements $ 8,050,000 100782
CAP-989 Cleveland Christian Home $ 100,000 100783
Total Department of Mental Health $ 9,950,000 10,000,000 100784

       COMMUNITY ASSISTANCE PROJECTS100785

       Of the foregoing appropriation item CAP-479, Community 100786
Assistance Projects, $200,000 shall be used for the Center for 100787
Families and Children, $100,000 shall be used for the Cleveland 100788
Christian Home, and $100,000$150,000 shall be used for the Berea 100789
Children's Home.100790

Appropriations

       Sec. 22.04.  DMR DEPARTMENT OF MENTAL RETARDATION AND100791
DEVELOPMENTAL DISABILITIES100792

STATEWIDE AND CENTRAL OFFICE PROJECTS
100793

CAP-480 Community Assistance Projects $ 9,475,000 100794
CAP-955 Statewide Development Centers $ 3,257,257 100795
Total Statewide and Central Office Projects $ 12,732,257 100796
TOTAL Department of Mental Retardation and Developmental Disabilities $ 12,732,257 100797
TOTAL MENTAL HEALTH FACILITIES IMPROVEMENT FUND $ 22,782,257 100798

       COMMUNITY ASSISTANCE PROJECTS100799

       The foregoing appropriation item CAP-480, Community100800
Assistance Projects, may be used to provide community assistance100801
funds for the development, purchase, construction, or renovation100802
of facilities for day programs or residential programs that100803
provide services to persons eligible for services from the100804
Department of Mental Retardation and Developmental Disabilities or100805
county boards of mental retardation and developmental100806
disabilities. Any funds provided to nonprofit agencies for the100807
construction or renovation of facilities for persons eligible for100808
services from the Department of Mental Retardation and100809
Developmental Disabilities and county boards of mental retardation100810
and developmental disabilities shall be governed by the prevailing100811
wage provisions in section 176.05 of the Revised Code.100812

       Of the foregoing appropriation item CAP-480, $200,000 shall 100813
be used for the Achievement Centers for Children;and $250,000 100814
shall be used for Bellefaire Jewish Children's Bureau;.100815

       Notwithstanding any other provision of law to the contrary, 100816
of the foregoing appropriation item CAP-480, $250,000 shall be 100817
used for the Julie Billart facility; and $75,000 shall be used for 100818
the Hanson Home.100819

Appropriations

       Sec. 23.02. OEB OHIO EDUCATIONAL TELECOMMUNICATIONS NETWORK 100820
COMMISSIONETC ETECH OHIO100821

CAP-001 Educational TV and Radio Equipment $ 1,027,038 100822
Total Ohio Educational Telecommunications Network Commission eTech Ohio $ 1,027,038 100823


Appropriations

       Sec. 23.12.  CLS CLEVELAND STATE UNIVERSITY100825

CAP-023 Basic Renovations $ 3,267,875 100826
CAP-125 College of Education Building $ 8,057,262 100827
CAP-130 WVIZ Technology Center/Playhouse Square $ 750,000 100828
CAP-152 Rhodes Tower-Data Center Relocation $ 1,000,000 100829
CAP-153 University Annex-Vacation and Demolition $ 49,390 100830
CAP-154 Main Classroom Stair Tower & Entry $ 1,500,000 100831
CAP-155 Cleveland Playhouse $ 250,000 100832
CAP-156 Physical Education Building Rehabilitation $ 1,000,000 100833
Total Cleveland State University $ 15,874,527 15,124,527 100834


Appropriations

       Sec. 23.13.  KSU KENT STATE UNIVERSITY100836

CAP-022 Basic Renovations $ 3,573,078 100837
CAP-105 Basic Renovations-East Liverpool $ 151,408 100838
CAP-106 Basic Renovations-Geauga $ 45,607 100839
CAP-107 Basic Renovations-Salem $ 105,640 100840
CAP-108 Basic Renovations-Stark $ 325,358 100841
CAP-110 Basic Renovations-Ashtabula $ 177,801 100842
CAP-111 Basic Renovations-Trumbull $ 347,695 100843
CAP-112 Basic Renovations-Tuscarawas $ 171,699 100844
CAP-212 Health Science Building, Planning $ 705,720 100845
CAP-235 Rehabilitation of Franklin Hall $ 13,923,684 100846
CAP-260 Land Acquisitions & Improvements-East Liverpool $ 638,419 100847
CAP-261 Addition/Renovation of Classrooms-Geauga $ 246,878 100848
CAP-262 Gym Renovation Planning-Salem $ 490,213 100849
CAP-263 Parking Lot & Roadway Paving-Stark $ 162,076 100850
CAP-264 Fine Arts Building & New Campus Center-Stark $ 1,000,000 100851
CAP-265 Science Lab Addition-Trumbull $ 991,786 100852
CAP-266 Fine & Performing Arts Center - Tuscarawas $ 844,655 100853
CAP-267 Columbiana County Port Authority $ 875,000 100854
CAP-268 Canton Convention Center $ 735,000 100855
CAP-269 Blossom Music Center $ 2,512,500 100856
Total Kent State University $ 25,511,717 28,024,217 100857


       Sec. 23.19. WSU WRIGHT STATE UNIVERSITY100859

CAP-015 Basic Renovations $ 2,752,255 100860
CAP-064 Basic Renovations - Lake $ 91,232 100861
CAP-115 Russ Engineering Expansion $ 369,000 100862
CAP-116 Rike Hall Renovation $ 2,000,000 100863
CAP-119 Science Lab Renovations (Planning) $ 5,720,940 100864
CAP-120 Lake Campus University Center $ 1,420,709 100865
CAP-127 Rehabilitate Festival Playhouse $ 1,000,000 100866
CAP-128 Glenn Helen Preserve Eco Art Classroom $ 25,000 100867
CAP-132 Montgomery County Port Authority $ 1,000,000 100868
Total Wright State University $ 13,379,136 100869
14,379,136 100870

       MONTGOMERY COUNTY PORT AUTHORITY100871

       Appropriation item CAP-132, Montgomery County Port Authority, 100872
shall not be released unless the Controlling Board approves the 100873
release, and, within 90 days after the effective date of this 100874
amendment, Wright State University shall seek the Controlling 100875
Board's approval to release the funds appropriated to CAP-132, 100876
Montgomery County Port Authority.100877

       Sec. 23.26. CCC CUYAHOGA COMMUNITY COLLEGE100878

Appropriations

CAP-031 Basic Renovations $ 2,428,960 100879
CAP-079 Cleveland Art Museum Improvements $ 3,000,000 100880
CAP-094 Collegewide Wayfinding Signage System $ 1,067,510 100881
CAP-095 Collegewide Asset Protection and Building Codes Upgrade $ 1,491,522 100882
CAP-096 Health Care Technology Building - Eastern $ 6,050,264 100883
CAP-097 WVIZ Technology Center/Playhouse Square $ 750,000 100884

Total Cuyahoga Community College $ 14,038,256 14,788,256 100885

       Sec. 23.45. STC STARK TECHNICAL COLLEGE100886

CAP-004 Basic Renovations $ 438,295 100887
CAP-035 Business Technologies Addition Rehabilitation $ 1,378,892 100888
CAP-037 Fuel Cell Initiative $ 250,000 100889
Total Stark Technical College $ 2,067,187 100890
Total Board of Regents and State 100891
Institutions of Higher Education $ 488,343,998 490,956,498 100892
TOTAL Higher Education Improvement Fund $ 489,371,036 492,883,536 100893


       Sec. 24.01. All items set forth in this section are hereby100895
appropriated out of any moneys in the state treasury to the credit100896
of the Parks and Recreation Improvement Fund (Fund 035) that are100897
not otherwise appropriated.100898

Appropriations

DNR DEPARTMENT OF NATURAL RESOURCES
100899

CAP-004 Burr Oak Lodge $ 150,000 100900
CAP-012 Land Acquisition $ 243,663 100901
CAP-085 The Wilds Carnivore Center $ 1,000,000 100902
CAP-088 Muskingum River Lock and Dam $ 250,000 100903
CAP-716 100904
CAP-234 State Park Campgrounds, Cabins, and Lodges $ 2,712,500 100905
CAP-331 Park Boating Facilities $ 7,588,383 100906
CAP-701 Buckeye Lake State Park - Dam Rehabilitation $ 4,000,000 100907
CAP-718 Grand Lake St. Mary's State Park Erosion Control Project $ 450,000 100908
CAP-748 Local Park Projects $ 2,715,000 100909
CAP-753 Project Planning $ 175,000 100910
CAP-848 Hazardous Dam Repair - Statewide $ 1,325,000 100911
CAP-876 Statewide Trails $ 1,101,500 1,851,500 100912
CAP-931 Statewide Wastewater/Water Systems Upgrade $ 2,500,000 100913
Total Department of Natural Resources $ 23,211,046 100914
24,961,046 100915
TOTAL Parks and Recreation Improvement Fund $ 23,211,046 100916
24,961,046 100917

       FEDERAL REIMBURSEMENT100918

       All reimbursements received from the federal government for100919
any expenditures made pursuant to this section shall be deposited100920
in the state treasury to the credit of the Parks and Recreation100921
Improvement Fund (Fund 035).100922

       LOCAL PARKS PROJECTS100923

       Of the foregoing appropriation item CAP-748, Local Parks 100924
Projects, $75,000 shall be used for the Springfield Arts Veterans' 100925
Park; $50,000 shall be used for the Village of Bentleyville Park; 100926
$25,000 shall be used for the Cleveland Police and Firefighters 100927
Memorial Park; $100,000 shall be used for the Parma Heights 100928
Greenbriar Park; $125,000 shall be used for the Fairborn Park 100929
Entrance Project; $250,000 shall be used for the Greene County 100930
Soccer Park; $750,000 shall be used for the Banks Park; $400,000 100931
shall be used for the Colerain Township Park Improvements; 100932
$200,000 shall be used for the Colerain Township Heritage Park; 100933
$75,000 shall be used for the London Park Project; $50,000 shall 100934
be used for Somerset Park Improvements; $50,000 shall be used for 100935
Meadowbrook Park; $25,000 shall be used for Early Hill Park; 100936
$25,000 shall be used for the Wright-Flyer Aviation Park; $200,000 100937
shall be used for Madison Township Park; $10,000 shall be used for 100938
the Wellington Soccer Field Park; $10,000 shall be used for the 100939
Greenwich Township Baseball Field Park Improvements; $20,000 shall 100940
be used for the City of London Sports Park; $25,000 shall be used 100941
for the Pleasant Hill Park Ball Field Project; and $250,000 shall 100942
be used for the Education Gateway at Sippo Lake Park.100943

       STATEWIDE TRAILS PROGRAM100944

       Of the foregoing appropriation item CAP-876, Statewide 100945
Trails, $85,000 shall be used for the Williamsburg-Batavia 100946
hike/bike trail; $16,500 shall be used for the South Milford Road 100947
Bike Trail Project; $125,000 shall be used for the Tri-County 100948
Triangle Trail in Fayette county; $100,00$100,000 shall be used 100949
for the Tri-County Triangle Trail in Highland County; $125,000 100950
shall be used for the Tri-County Triangle Trail in Ross county; 100951
$550,000 shall be used for the Camp Chase Ohio to Erie Trail; and100952
$100,000 shall be used for the Holmes County Park District - Rails 100953
to Trails; and $750,000 shall be used for the Little Miami Trail 100954
through the Village of Terrace Park. The state funds for the 100955
Little Miami Trail Project shall be used to undertake project work 100956
that is eligible for reimbursement under the federal Land and 100957
Water Conservation Fund and the Recreational Trails Program. The 100958
federal reimbursement funds for the project work shall be credited 100959
to the Parks and Recreation Improvement Fund (Fund 035).100960

       Section 401.06. That existing Sections 16.09, 19.01, 20.01, 100961
22.03, 22.04, 23.02, 23.12, 23.13, 23.19, 23.26, 23.45, and 24.01 100962
of Am. Sub. H.B. 16 of the 126th General Assembly are hereby 100963
repealed.100964

       Section 401.07. That Section 3 of Am. H.B. 67 of the 126th 100965
General Assembly be amended to read as follows:100966

       Sec. 3.  All items in this section are hereby appropriated100967
out of any moneys in the state treasury to the credit of the100968
designated fund. For all appropriations made in this act, those in 100969
the first column are for fiscal year 2006, and those in the second 100970
column are for fiscal year 2007.100971

FND AI AI TITLE Appropriations 100972

BWC BUREAU OF WORKERS' COMPENSATION
100973

Workers' Compensation Fund Group100974

023 855-401 William Green Lease Payments to OBA $ 19,736,600 $ 20,125,900 100975
023 855-407 Claims, Risk & Medical Management $ 140,052,037 $ 140,052,037 100976
023 855-408 Fraud Prevention $ 11,713,797 $ 11,713,797 100977
023 855-409 Administrative Services $ 119,246,553 $ 119,246,553 100978
023 855-410 Attorney General Payments $ 4,314,644 $ 4,314,644 100979
822 855-606 Coal Workers' Fund $ 91,894 $ 91,894 100980
823 855-608 Marine Industry $ 53,952 $ 53,952 100981
825 855-605 Disabled Workers Relief Fund $ 693,764 $ 693,764 100982
826 855-609 Safety & Hygiene Operating $ 20,130,820 $ 20,130,820 100983
826 855-610 Safety Grants Program $ 4,000,000 $ 4,000,000 100984
TOTAL WCF Workers' Compensation 100985
Fund Group $ 320,034,061 $ 320,423,361 100986

Federal Special Revenue Fund Group100987

349 855-601 OSHA Enforcement $ 1,527,750 $ 1,604,140 100988
TOTAL FED Federal Special Revenue Fund Group $ 1,527,750 $ 1,604,140 100989
TOTAL ALL BUDGET FUND GROUPS $ 321,561,811 $ 322,027,501 100990

       WILLIAM GREEN LEASE PAYMENTS100991

       The foregoing appropriation item 855-401, William Green Lease100992
Payments to OBA, shall be used for lease payments to the Ohio100993
Building Authority, and these appropriations shall be used to meet100994
all payments at the times they are required to be made during the100995
period from July 1, 2005, to June 30, 2007, by the Bureau of100996
Workers' Compensation to the Ohio Building Authority pursuant to100997
leases and agreements made under Chapter 152. of the Revised Code100998
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly.100999
Of the amounts received in Fund 023, appropriation item 855-401, 101000
William Green Lease Payments to OBA, up to $39,862,500 shall be101001
restricted for lease rental payments to the Ohio Building 101002
Authority. If it is determined that additional appropriations are 101003
necessary for such purpose, such amounts are hereby appropriated.101004

       Notwithstanding any other provision of law to the contrary,101005
all tenants of the William Green Building not funded by the101006
Workers' Compensation Fund (Fund 023) shall pay their fair share101007
of the costs of lease payments to the Workers' Compensation Fund101008
(Fund 023) by intrastate transfer voucher.101009

       WORKERS' COMPENSATION OVERSIGHT COMMISSION101010

       Of the foregoing appropriation item 855-409, Administrative 101011
Services, up to $18,000 per calendar year shall be used to pay the 101012
annual compensation of each investment expert member of the 101013
Workers' Compensation Oversight Commission, as provided in 101014
divisions (D) and (F) of section 4121.12 of the Revised Code. Each 101015
investment expert member shall also receive reasonable and 101016
necessary expenses while engaged in the performance of his or her 101017
duties, as provided in division (F) of section 4121.12 of the 101018
Revised Code.101019

       WORKERS' COMPENSATION FRAUD UNIT101020

       The Workers' Compensation Section Fund (Fund 195) shall101021
receive payments from the Bureau of Workers' Compensation at the101022
beginning of each quarter of each fiscal year to fund expenses of101023
the Workers' Compensation Fraud Unit of the Attorney General's101024
Office. Of the foregoing appropriation item 855-410, Attorney101025
General Payments, $773,151 in fiscal year 2006 and $773,151 in101026
fiscal year 2007 shall be used to provide these payments.101027

       SAFETY AND HYGIENE101028

       Notwithstanding section 4121.37 of the Revised Code, the101029
Administrator of Workers' Compensation shall transfer moneys from101030
the State Insurance Fund so that appropriation item 855-609,101031
Safety and Hygiene Operating, is provided $20,130,820 in fiscal101032
year 2006 and $20,130,820 in fiscal year 2007.101033

       LONG-TERM CARE LOAN FUND101034

        Upon the request of the Administrator of the Bureau of 101035
Workers' Compensation and with the advice and consent of the 101036
Bureau of Workers' Compensation Oversight Commission, the Director 101037
of Budget and Management shall transfer cash in the amounts 101038
requested from the Safety and Hygiene Operating Fund (Fund 826) to 101039
the Long-Term Care Loan Fund (Fund 829) created in section 4121.48 101040
of the Revised Code. The amounts transferred are hereby 101041
appropriated.101042

       OSHA ON-SITE CONSULTATION PROGRAM101043

        The Bureau of Workers' Compensation may designate a portion 101044
of appropriation item 855-609, Safety and Hygiene Operating, to be 101045
used to match federal funding for the federal Occupational Safety 101046
and Health Administration's (OSHA) on-site consultation program.101047

       VOCATIONAL REHABILITATION101048

       The Bureau of Workers' Compensation and the Rehabilitation101049
Services Commission shall enter into an interagency agreement for101050
the provision of vocational rehabilitation services and staff to101051
mutually eligible clients. The bureau shall provide $587,774 in101052
fiscal year 2006 and $605,407 in fiscal year 2007 from the State101053
Insurance Fund to fund vocational rehabilitation services and101054
staff in accordance with the interagency agreement.101055

       FUND BALANCE101056

       Any unencumbered cash balance in excess of $45,000,000 in the101057
Workers' Compensation Fund (Fund 023) on the thirtieth day of June101058
of each fiscal year shall be used to reduce the administrative101059
cost rate charged to employers to cover appropriations for Bureau101060
of Workers' Compensation operations.101061

       OSHA ENFORCEMENT FUND TRANSFER101062

        On July 1, 2005, or as soon thereafter as possible, the 101063
Director of Budget and Management shall transfer the OSHA 101064
Enforcement Fund (Fund 349) from the Department of Commerce to the 101065
Bureau of Workers' Compensation. At the request of the Director of 101066
the Department of Commerce, the Director of Budget and Management 101067
may cancel encumbrances in this fund from appropriation item 101068
800-626, OSHA Enforcement, within the budget of the Department of 101069
Commerce, and reestablish those encumbrances or parts of those 101070
encumbrances in fiscal year 2006 for the same purpose and to the 101071
same vendor to appropriation item 855-601, OSHA Enforcement, 101072
within the budget of the Bureau of Workers' Compensation. As 101073
determined by the Director of Budget and Management, the 101074
appropriation authority necessary to reestablish encumbrances or 101075
parts of encumbrances in fiscal year 2006 for the Bureau of 101076
Workers' Compensation is hereby granted.101077

       Section 401.08. That existing Section 3 of Am. H.B. 67 of the 101078
126th General Assembly is hereby repealed.101079

       Section 401.11. That Sections 203.03, 203.03.09, 203.03.10, 101080
203.06.06, 203.06.12, 203.06.15, and 203.06.24 of Am. Sub. H.B. 68 101081
of the 126th General Assembly be amended to read as follows:101082

       Sec. 203.03. DOT DEPARTMENT OF TRANSPORTATION101083

FUND TITLE FY 2006 FY 2007 101084

Transportation Planning and Research
101085

Highway Operating Fund Group101086

002 771-411 Planning and Research - State $ 19,000,000 $ 19,112,000 101087
002 771-412 Planning and Research - Federal $ 40,000,000 $ 40,000,000 101088
TOTAL HOF Highway Operating 101089
Fund Group $ 59,000,000 $ 59,112,000 101090
TOTAL ALL BUDGET FUND GROUPS - 101091
Transportation Planning 101092
and Research $ 59,000,000 $ 59,112,000 101093

Highway Construction
101094

Highway Operating Fund Group101095

002 772-421 Highway Construction - State $ 585,240,305 $ 578,969,730 101096
002 772-422 Highway Construction - Federal $ 1,021,500,000 $ 1,131,500,000 101097
002 772-424 Highway Construction - Other $ 62,500,000 $ 53,500,000 101098
214 770-401 Infrastructure Debt Service - Federal $ 80,182,400 $ 105,129,400 101099
214 772-434 Infrastructure Lease Payments - Federal $ 12,537,100 $ 12,536,000 101100
212 772-426 Highway Infrastructure Bank - Federal $ 1,500,000 $ 2,000,000 101101
212 772-427 Highway Infrastructure Bank - State $ 9,353,400 5,353,400 $ 12,853,400 8,853,400 101102
212 772-429 Highway Infrastructure Bank - Local $ 12,500,000 $ 12,500,000 101103
212 772-430 Infrastructure Debt Reserve Title 23-49 $ 1,500,000 $ 1,500,000 101104
213 772-431 Roadway Infrastructure Bank - State $ 500,000 $ 500,000 101105
213 772-432 Roadway Infrastructure Bank - Local $ 7,000,000 $ 7,000,000 101106
213 772-433 Infrastructure Debt Reserve - State $ 2,000,000 $ 2,000,000 101107
TOTAL HOF Highway Operating 101108
Fund Group $ 1,793,813,205 1,792,313,205 $ 1,917,488,530 1,915,988,530 101109

Highway Capital Improvement Fund Group101110

042 772-723 Highway Construction - Bonds $ 220,000,000 $ 150,000,000 101111

Infrastructure Bank Obligations Fund Group101112

045 772-428 Highway Infrastructure Bank - Bonds $ 180,000,000 $ 160,000,000 101113
TOTAL 045 Infrastructure Bank 101114
Obligations Fund Group $ 180,000,000 $ 160,000,000 101115
TOTAL ALL BUDGET FUND GROUPS - 101116
Highway Construction $ 2,193,813,205 $ 2,227,488,530 101117

Highway Maintenance
101118

Highway Operating Fund Group101119

002 773-431 Highway Maintenance - State $ 386,527,582 $ 393,313,472 101120
TOTAL HOF Highway Operating 101121
Fund Group $ 386,527,582 $ 393,313,472 101122
101123

TOTAL ALL BUDGET FUND GROUPS - 101124
Highway Maintenance $ 386,527,582 $ 393,313,472 101125

Public Transportation
101126

Highway Operating Fund Group101127

002 775-452 Public Transportation - Federal $ 30,000,000 $ 30,365,000 101128
002 775-454 Public Transportation - Other $ 1,500,000 $ 1,500,000 101129
002 775-459 Elderly and Disabled Special Equipment - Federal $ 4,595,000 $ 4,595,000 101130
212 775-408 Transit Infrastructure Bank - Local $ 2,500,000 $ 2,500,000 101131
212 775-455 Title 49 Infrastructure Bank - State $ 1,000,000 $ 1,000,000 101132
213 775-457 Transit Infrastructure Bank - State $ 500,000 $ 500,000 101133
213 775-460 Transit Infrastructure Bank - Local $ 1,000,000 $ 1,000,000 101134
TOTAL HOF Highway Operating 101135
Fund Group $ 39,595,000 41,095,000 $ 39,960,000 41,460,000 101136
TOTAL ALL BUDGET FUND GROUPS - 101137
Public Transportation $ 39,595,000 41,095,000 $ 39,960,000 41,460,000 101138

Rail Transportation
101139

Highway Operating Fund Group101140

002 776-462 Grade Crossings - Federal $ 15,000,000 $ 15,000,000 101141
TOTAL HOF Highway Operating 101142
Fund Group $ 15,000,000 $ 15,000,000 101143
TOTAL ALL BUDGET FUND GROUPS - 101144
Rail Transportation $ 15,000,000 $ 15,000,000 101145

Aviation
101146

Highway Operating Fund Group101147

002 777-472 Airport Improvements - Federal $ 405,000 $ 405,000 101148
002 777-475 Aviation Administration $ 4,007,600 $ 4,046,900 101149
213 777-477 Aviation Infrastructure Bank - State $ 3,000,000 $ 3,000,000 101150
213 777-478 Aviation Infrastructure Bank - Local $ 7,000,000 $ 7,000,000 101151
TOTAL HOF Highway Operating 101152
Fund Group $ 14,412,600 $ 14,451,900 101153
TOTAL ALL BUDGET FUND GROUPS - 101154
Aviation $ 14,412,600 $ 14,451,900 101155

Administration
101156

Highway Operating Fund Group101157

002 779-491 Administration - State $ 119,624,513 $ 121,057,898 101158
TOTAL HOF Highway Operating 101159
Fund Group $ 119,624,513 $ 121,057,898 101160
TOTAL ALL BUDGET FUND GROUPS - 101161
Administration $ 119,624,513 $ 121,057,898 101162

Debt Service
101163

Highway Operating Fund Group101164

002 770-003 Administration - State - Debt Service $ 13,074,500 $ 10,923,100 101165
TOTAL HOF Highway Operating 101166
Fund Group $ 13,074,500 $ 10,923,100 101167
TOTAL ALL BUDGET FUND GROUPS - 101168
Debt Service $ 13,074,500 $ 10,923,100 101169

TOTAL Department of Transportation
101170

TOTAL HOF Highway Operating 101171
Fund Group $ 2,441,047,400 $ 2,571,306,900 101172
TOTAL 042 Highway Capital 101173
Improvement Fund Group $ 220,000,000 $ 150,000,000 101174
TOTAL 045 Infrastructure Bank 101175
Obligations Fund Group $ 180,000,000 $ 160,000,000 101176
TOTAL ALL BUDGET FUND GROUPS $ 2,841,047,400 $ 2,881,306,900 101177


       Sec. 203.03.09. PUBLIC ACCESS ROADS FOR STATE FACILITIES101179

       Of the foregoing appropriation item 772-421, Highway101180
Construction - State, $4,517,500$5,000,000 shall be used in each 101181
fiscal year during the fiscal year 2006-2007 biennium by the 101182
Department of Transportation for the construction, reconstruction, 101183
or maintenance of public access roads, including support features, 101184
to and within state facilities owned or operated by the Department 101185
of Natural Resources, as requested by the Director of Natural 101186
Resources.101187

       Notwithstanding section 5511.06 of the Revised Code, of the101188
foregoing appropriation item 772-421, Highway Construction -101189
State, $2,228,000 in each fiscal year of the fiscal year 2006-2007 101190
biennium shall be used by the Department of Transportation for the101191
construction, reconstruction, or maintenance of park drives or101192
park roads within the boundaries of metropolitan parks.101193

       Included in the foregoing appropriation item 772-421, Highway101194
Construction - State, the department may perform related road work101195
on behalf of the Ohio Expositions Commission at the state101196
fairgrounds, including reconstruction or maintenance of public101197
access roads and support features, to and within fairground101198
facilities as requested by the commission and approved by the101199
Director of Transportation.101200

       LIQUIDATION OF UNFORESEEN LIABILITIES101201

       Any appropriation made to the Department of Transportation,101202
Highway Operating Fund, not otherwise restricted by law, is101203
available to liquidate unforeseen liabilities arising from101204
contractual agreements of prior years when the prior year101205
encumbrance is insufficient.101206

       Sec. 203.03.10. PREVENTIVE MAINTENANCE101207

       The Department of Transportation shall contract with an 101208
independent party to issue a yearly reportconduct a study and 101209
issue a report on the effectiveness and progress of preventive 101210
maintenance projects that meet warranty guidelines. The101211
Thereafter, the Department shall issue a yearly report on or 101212
before the first day of December for three consecutive years101213
beginning in fiscal year 2005.101214

       The Department shall provide in its annual report data on 101215
actual and planned pavement preventive maintenance activities. The 101216
data shall include the following: (1) the total number of lane 101217
miles receiving preventive maintenance treatment, by treatment 101218
type and highway system category; (2) the total number of lane 101219
miles programmed to receive treatment; (3) the actual costs of the 101220
pavement preventive maintenance activities per lane mile, by 101221
treatment type and highway system category; (4) the total number 101222
of lane miles rehabilitated or reconstructed; and (5) the actual 101223
cost per lane mile of rehabilitated or reconstructed highway, by 101224
highway system category.101225

       Sec. 203.06.06. ENFORCEMENT101226

State Highway Safety Fund Group101227

036 764-033 Minor Capital Projects $ 1,250,000 $ 1,250,000 101228
036 764-321 Operating Expense - Highway Patrol $ 229,293,561 $ 237,364,988 101229
036 764-605 Motor Carrier Enforcement Expenses $ 2,643,022 $ 2,670,911 101230
5AY 764-688 Traffic Safety Operating $ 3,082,962 $ 1,999,437 101231
83C 764-630 Contraband, Forfeiture, Other $ 622,894 $ 622,894 101232
83F 764-657 Law Enforcement Automated Data System $ 7,324,524 $ 7,544,260 101233
83G 764-633 OMVI Fines $ 820,927 $ 820,927 101234
831 764-610 Patrol - Federal $ 2,430,950 $ 2,455,484 101235
831 764-659 Transportation Enforcement - Federal $ 4,880,671 $ 5,027,091 101236
837 764-602 Turnpike Policing $ 9,942,621 $ 10,240,900 101237
838 764-606 Patrol Reimbursement $ 222,108 $ 222,108 101238
840 764-607 State Fair Security $ 1,496,283 $ 1,496,283 101239
840 764-617 Security and Investigations $ 8,145,192 $ 8,145,192 101240
840 764-626 State Fairgrounds Police Force $ 788,375 $ 788,375 101241
841 764-603 Salvage and Exchange - Highway Patrol $ 1,305,954 $ 1,339,399 101242
TOTAL HSF State Highway Safety 101243
Fund Group $ 274,250,044 $ 281,988,249 101244

General Services Fund Group101245

4S2 764-660 MARCS Maintenance $ 252,432 $ 262,186 101246
TOTAL GSF General Services 101247
Fund Group $ 252,432 $ 262,186 101248

Federal Special Revenue Fund Group101249

3BF 764-692 Federal Contraband, Forfeiture, and Other $ 1,942,040 $ 1,942,040 101250
TOTAL FED Federal Special Revenue Fund Group $ 1,942,040 $ 1,942,040 101251

TOTAL ALL BUDGET FUND GROUPS - 101252
Enforcement $ 274,502,476 276,444,516 $ 282,250,435 284,192,475 101253

       CASH TRANSFER TO HIGHWAY PATROL FEDERAL CONTRABAND, 101254
FORFEITURE, AND OTHER FUND (FUND 3BF)101255

       On July 1, 2005, or as soon thereafter as possible, 101256
notwithstanding any other provision of law to the contrary, the 101257
Director of Budget and Management shall transfer $1,942,040 in 101258
cash from the Highway Patrol State Contraband, Forfeiture, and 101259
Other Fund (Fund 83C) in the State Highway Safety Fund Group to 101260
the Highway Patrol Federal Contraband, Forfeiture, and Other Fund 101261
(Fund 3BF) in the Federal Special Revenue Fund Group.101262

       COLLECTIVE BARGAINING INCREASES101263

       Notwithstanding division (D) of section 127.14 and division101264
(B) of section 131.35 of the Revised Code, except for the General101265
Revenue Fund, the Controlling Board may, upon the request of101266
either the Director of Budget and Management, or the Department of101267
Public Safety with the approval of the Director of Budget and101268
Management, increase appropriations for any fund, as necessary for101269
the Department of Public Safety, to assist in paying the costs of101270
increases in employee compensation that have occurred pursuant to101271
collective bargaining agreements under Chapter 4117. of the101272
Revised Code and, for exempt employees, under section 124.152 of101273
the Revised Code.101274

       Sec. 203.06.12. INVESTIGATIVE UNIT101275

State Highway Safety Fund Group101276

831 767-610 Liquor Enforcement - Federal $ 514,184 $ 514,184 101277
831 769-610 Food Stamp Trafficking Enforcement - Federal $ 992,920 $ 1,032,135 101278
TOTAL HSF State Highway Safety 101279
Fund Group $ 1,507,104 $ 1,546,319 101280

Liquor Control Fund Group101281

043 767-321 Liquor Enforcement - Operations $ 10,120,365 $ 10,423,976 101282
TOTAL LCF Liquor Control Fund 101283
Group $ 10,120,365 $ 10,423,976 101284

State Special Revenue Fund Group101285

5CM 767-691 Equitable Share Account $ 642,175 $ 642,175 101286
622 767-615 Investigative Contraband and Forfeiture $ 404,111 $ 404,111 101287
850 767-628 Investigative Unit Salvage $ 120,000 $ 120,000 101288
TOTAL SSR State Special Revenue 101289
Fund Group $ 524,111 1,166,286 $ 524,111 1,166,286 101290
TOTAL ALL BUDGET FUND GROUPS - 101291
Special Enforcement $ 12,151,580 12,793,755 $ 12,494,406 13,136,581 101292

       CASH TRANSFER TO INVESTIGATIVE UNIT FEDERAL EQUITABLE SHARE 101293
ACCOUNT FUND (FUND 5CM)101294

       On July 1, 2005, or as soon thereafter as possible, 101295
notwithstanding any other provision of law to the contrary, the 101296
Director of Budget and Management shall transfer $642,175 in cash 101297
from the Investigative, Contraband, and Forfeiture Fund (Fund 622) 101298
in the State Special Revenue Fund Group to the Investigative Unit 101299
Federal Equitable Share Account Fund (Fund 5CM) in the State 101300
Special Revenue Fund Group.101301

       LEASE RENTAL PAYMENTS FOR CAP-076, INVESTIGATIVE UNIT MARCS101302
EQUIPMENT101303

       The Director of Public Safety, using intrastate transfer101304
vouchers, shall make cash transfers to the State Highway Safety101305
Fund (Fund 036) from other funds to reimburse the State Highway101306
Safety Fund for the share of lease rental payments to the Ohio101307
Building Authority that are associated with appropriation item101308
CAP-076, Investigative Unit MARCS Equipment.101309

       Sec. 203.06.15.  EMERGENCY MANAGEMENT101310

Federal Special Revenue Fund Group101311

3N5 763-644 U.S. DOE Agreement $ 275,000 $ 275,000 101312
329 763-645 Federal Mitigation Program $ 303,504 8,937,624 $ 303,504 8,937,624 101313
337 763-609 Federal Disaster Relief $ 27,269,140 $ 27,280,000 101314
339 763-647 Emergency Management Assistance and Training $ 129,622,000 $ 129,622,000 101315
TOTAL FED Federal Special 101316
Revenue Fund Group $ 157,469,644 166,103,764 $ 157,480,504 166,114,624 101317

State Special Revenue Fund Group101318

4V3 763-662 EMA Service and Reimbursement $ 696,446 $ 696,446 101319
657 763-652 Utility Radiological Safety $ 1,260,000 $ 1,260,000 101320
681 763-653 SARA Title III HAZMAT Planning $ 271,510 $ 271,510 101321
TOTAL SSR State Special Revenue 101322
Fund Group $ 2,227,956 $ 2,227,956 101323
TOTAL ALL BUDGET FUND GROUPS - 101324
Emergency Management $ 159,697,600 168,331,720 $ 159,708,460 168,342,580 101325

       FEDERAL MITIGATION PROGRAM101326

       The fund created by the Controlling Board known as the 101327
Disaster ReliefServices Plan and Grant Administration Fund is now 101328
the Federal Mitigation Program Fund, and shall be used to plan and 101329
mitigate against future disaster costs.101330

       The appropriation item 763-645, heretofore known as 101331
Individual/Family Grant - Fed, is hereafter known as Federal 101332
Mitigation Program, and shall be used to plan and mitigate against 101333
future disaster costs.101334

       STATE DISASTER RELIEF101335

       The appropriation item 763-601, State Disaster Relief, may 101336
accept transfers of cash and appropriations from Controlling Board 101337
appropriation items to reimburse eligible local governments and 101338
private nonprofit organizations for costs related to disasters 101339
that have been declared by local governments or the Governor. The 101340
Ohio Emergency Management Agency shall publish and make available 101341
an application packet outlining eligible items and application 101342
procedures for entities requesting state disaster relief.101343

       Individuals may be eligible for reimbursement of costs101344
related to disasters that have been declared by the Governor and101345
the Small Business Administration. The funding in appropriation101346
item 763-601, State Disaster Relief, shall be used in accordance101347
with the principles of the federal Individual and Family Grant101348
Program, which provides grants to households that have been101349
affected by a disaster to replace basic living items. The Ohio101350
Emergency Management Agency shall publish and make available an101351
application procedure for individuals requesting assistance under101352
the state Individual Assistance Program.101353

       SARA TITLE III HAZMAT PLANNING101354

       The SARA Title III HAZMAT Planning Fund (Fund 681) is 101355
entitled to receive grant funds from the Emergency Response 101356
Commission to implement the Emergency Management Agency's 101357
responsibilities under Chapter 3750. of the Revised Code.101358

       Sec. 203.06.24.  REVENUE DISTRIBUTION101359

Holding Account Redistribution Fund Group101360

R24 762-619 Unidentified Public Safety Receipts $ 1,885,000 $ 1,885,000 101361
R52 762-623 Security Deposits $ 250,000 $ 250,000 101362
TOTAL 090 Holding Account 101363
Redistribution Fund Group $ 2,135,000 $ 2,135,000 101364
TOTAL ALL BUDGET FUND GROUPS - 101365
Revenue Distribution $ 2,135,000 $ 2,135,000 101366

       TRANSFER OF CASH BALANCE FROM FUND R27, HIGHWAY PATROL FEE 101367
REFUND FUND101368

       On July 1, 2005, or as soon as possible thereafter, the 101369
Director of Budget and Management shall transfer the cash balance 101370
in the Highway Patrol Fee Refund Fund (Fund R27) created in former 101371
section 4501.12 of the Revised Code to the Unidentified Public 101372
Safety Receipts Fund (Fund R24).101373

TOTAL Department of Public Safety
101374

TOTAL HSF State Highway Safety 101375
Fund Group $ 459,009,425 $ 464,841,856 101376
TOTAL SSR State Special Revenue 101377
Fund Group $ 2,991,969 3,634,144 $ 2,991,969 3,634,144 101378
TOTAL LCF Liquor Control 101379
Fund Group $ 10,120,365 $ 10,423,976 101380
TOTAL GSF General Services 101381
Fund Group $ 752,432 $ 762,186 101382
TOTAL FED Federal Special Revenue 101383
Special Fund Group $ 157,469,644 168,045,804 $ 157,480,504 168,056,664 101384
TOTAL AGY Agency Fund Group $ 100,000 $ 100,000 101385
TOTAL 090 Holding Account Redistribution 101386
Fund Group $ 2,135,000 $ 2,135,000 101387
TOTAL ALL BUDGET FUND GROUPS $ 632,578,835 643,797,170 $ 638,735,491 649,953,826 101388


       Section 401.12. That existing Sections 203.03, 203.03.09, 101390
203.03.10, 203.06.06, 203.06.12, 203.06.15, and 203.06.24 of Am. 101391
Sub. H.B. 68 of the 126th General Assembly are hereby repealed.101392

       Section 401.13. Notwithstanding section 5511.05 of the 101393
Revised Code, the Director of Transportation shall confer with the 101394
Director of Natural Resources in fiscal years 2006 and 2007 101395
concerning the establishment, construction, reconstruction, 101396
improvement, repair, and maintenance of all roads and bridges 101397
within the boundaries of all state parks, including all such parks 101398
and properties under the control and custody of the Department of 101399
Natural Resources. After conferring with the Director of Natural 101400
Resources, the Director of Transportation shall establish, 101401
construct, reconstruct, improve, repair, and maintain all such 101402
roads and bridges. $5,000,000 shall be expended to establish, 101403
construct, reconstruct, improve, repair, and maintain all such 101404
roads and bridges in each fiscal year.101405

       Section 403.01. That Section 14 of Sub. H.B. 434 of the 125th 101406
General Assembly be amended to read as follows:101407

       Sec. 14. NET SCHOOLNET COMMISSIONETC ETECH OHIO101408

Tobacco Master Settlement Agreement Fund Group101409

S87 228 935-602 Education Technology Trust Fund $ 9,277,865 $ 6,274,109 101410
TOTAL TSF Tobacco Master 101411
Settlement Agreement Fund 101412
Group $ 9,277,865 $ 6,274,109 101413
TOTAL ALL BUDGET FUND GROUPS $ 9,277,865 $ 6,274,109 101414

       SCHOOLNET PLUS101415

       The Ohio SchoolNet Commission shall distribute SchoolNet Plus 101416
Grants to qualifying school districts in fiscal year 2005 to 101417
establish and equip at least one interactive computer workstation 101418
for each five students enrolled in the seventh grade as reported 101419
by school districts pursuant to division (A) of section 3317.03 of 101420
the Revised Code.101421

       Upon completion of the SchoolNet Plus Grant Program for the 101422
seventh grade, the Ohio SchoolNet CommissioneTech Ohio shall 101423
distribute SchoolNet Plus Grants to qualifying school districts in 101424
fiscal year 2006 to establish and equip at least one interactive 101425
computer workstation for each five children enrolled in the eighth 101426
grade as reported by school districts pursuant to division (A) of 101427
section 3317.03 of the Revised Code.101428

       Districts in the first two quartiles of wealth shall receive 101429
up to $275 per pupil for students in the targeted grade to 101430
purchase classroom computers. Districts in the third and fourth 101431
quartiles shall receive up to $105 per pupil in the targeted 101432
grade. If a district has met the state's goal of one computer to 101433
every five students in the targeted grade, the district may use 101434
the funds provided through SchoolNet Plus to purchase computers 101435
for successive grades or to fulfill educational technology needs 101436
in other grades as specified in the district's technology plan.101437

       Section 403.02. That existing Section 14 of Sub. H.B. 434 of 101438
the 125th General Assembly is hereby repealed.101439

       Section 403.05. That Section 4 of Am. Sub. H.B. 516 of the 101440
125th General Assembly be amended to read as follows:101441

       Sec. 4. The following agencies shall be retained pursuant to 101442
division (D) of section 101.83 of the Revised Code and shall101443
expire on December 31, 2010:101444

REVISED CODE OR 101445
UNCODIFIED 101446
AGENCY NAME SECTION 101447

Administrator, Interstate Compact on Mental Health 5119.50 101448
Administrator, Interstate Compact on 5103.20 101449
Placement of Children 101450
Advisory Board of Governor's Office of Faith-Based and Community Initiatives 107.12 101451
Advisory Boards to the EPA for Air Pollution 121.13 101452
Advisory Boards to the EPA for Water Pollution 121.13 101453
Advisory Committee of the State Veterinary Medical Licensing Board 4741.03(D)(3) 101454
Advisory Committee on Livestock Exhibitions 901.71 101455
Advisory Council on Amusement Ride Safety 1711.51 101456
Advisory Board of Directors for Prison Labor 5145.162 101457
Advisory Council for Each Wild, Scenic, or Recreational River Area 1517.18 101458
Advisory Councils or Boards for State Departments 107.18 or 121.13 101459
Advisory Group to the Ohio Water Resources Council 1521.19(C) 101460
Alzheimer's Disease Task Force 173.04(F) 101461
AMBER Alert Advisory Committee 5502.521 101462
Apprenticeship Council 4139.02 101463
Armory Board of Control 5911.09 101464
Automated Title Processing Board 4505.09(C)(1) 101465
Banking Commission 1123.01 101466
Board of Directors of the Ohio Health Reinsurance Program 3924.08 101467
Board of Voting Machine Examiners 3506.05(B) 101468
Board of Tax Appeals 5703.02 101469
Brain Injury Advisory Committee 3304.231 101470
Capitol Square Review and Advisory Board 105.41 101471
Child Support Guideline Advisory Council 3119.024 101472
Children's Trust Fund Board 3109.15 101473
Citizens Advisory Committee (BMV) 4501.025 101474
Citizen's Advisory Councils (Dept. of Mental Retardation and Developmental Disabilities) 5123.092 101475
Clean Ohio Trail Advisory Board 1519.06 101476
Coastal Resources Advisory Council 1506.12 101477
Commission on African-American Males 4112.12 101478
Commission on Hispanic-Latino Affairs 121.31 101479
Commission on Minority Health 3701.78 101480
Committee on Prescriptive Governance 4723.49 101481
Commodity Advisory Commission 926.32 101482
Community Mental Retardation and Developmental Disabilities Trust Fund Advisory Council 5123.353 101483
Community Oversight Council 3311.77 101484
Compassionate Care Task Force Section 3, H.B. 474, 124th GA 101485
Consumer Advisory Committee to the Rehabilitation Services Commission 3304.24 101486
Continuing Education Committee (for Sheriffs) 109.80 101487
Controlling Board 127.12 101488
Coordinating Committee, Agricultural Commodity Marketing Programs 924.14 101489
Council on Alcohol and Drug Addiction Services 3793.09 101490
Council on Unreclaimed Strip Mined Lands 1513.29 101491
Council to Advise on the Establishment and Implementation of the Birth Defects Information System 3705.34 101492
County Sheriffs' Standard Car-Marking and Uniform Commission 311.25 101493
Credit Union Council 1733.329 101494
Criminal Sentencing Advisory Committee 181.22 101495
Day-Care Advisory Council 5104.08 101496
Dentist Loan Repayment Advisory Board 3702.92 101497
Development Financing Advisory Council 122.40 101498
Education Commission of the States (Interstate Compact for Education) 3301.48 101499
Electrical Safety Inspector Advisory Committee 3783.08 101500
Emergency Response Commission 3750.02 101501
Engineering Experiment Station Advisory Committee 3335.27 101502
Environmental Education Council 3745.21 101503
Environmental Review Appeals Commission 3745.02 101504
EPA Advisory Boards or Councils 121.13 101505
Farmland Preservation Advisory Board 901.23 101506
Financial Planning & Supervision Commission for Municipal Corporation, County, or Township 118.05 101507
Financial Planning & Supervision Commission for School District 3316.05 101508
Forestry Advisory Council 1503.40 101509
Governance Authority for a State University or College 3345.75 101510
Governor's Advisory Council on Physical Fitness, Wellness, & Sports 3701.77 101511
Governor's Council on People with Disabilities 3303.41 101512
Governor's Residence Advisory Commission 107.40 101513
Great Lakes Commission (Great Lakes Basin Compact) 6161.01 101514
Gubernatorial Transition Committee 107.29 101515
Head Start Partnership Study Council Section 41.35, H.B. 95, 125th GA 101516
Hemophilia Advisory Subcommittee 3701.0210 101517
Housing Trust Fund Advisory Committee 175.25 101518
Industrial Commission Nominating Council 4121.04 101519
Industrial Technology and Enterprise Advisory Council 122.29 101520
Infant Hearing Screening Subcommittee 3701.507 101521
Insurance Agent Education Advisory Council 3905.483 101522
Interagency Council on Hispanic/Latino Affairs 121.32(J) 101523
Interstate Mining Commission (Interstate Mining Compact) 1514.30 101524
Interstate Rail Passenger Advisory Council (Interstate High Speed Intercity Rail Passenger Network Compact) 4981.35 101525
Joint Council on MR/DD 101.37 101526
Joint Select Committee on Volume Cap 133.021 101527
Labor-Management Government Advisory Council 4121.70 101528
Legal Rights Service Commission 5123.60 101529
Legislative Task Force on Redistricting, Reapportionment, and Demographic Research 103.51 101530
Maternal and Child Health Council 3701.025 101531
Medically Handicapped Children's Medical Advisory Council 3701.025 101532
Midwest Interstate Passenger Rail Compact Commission (Ohio members) 4981.361 101533
Military Activation Task Force 5902.15 101534
Milk Sanitation Board 917.03 101535
Mine Subsidence Insurance Governing Board 3929.51 101536
Minority Development Financing Board 122.72 101537
Multi-Agency Radio Communications Systems Steering Committee Sec. 21, H.B. 790, 120th GA 101538
Multidisciplinary Council 3746.03 101539
Muskingum River Advisory Council 1501.25 101540
National Museum of Afro-American History and Culture Planning Committee 149.303 101541
Nursing Facility Reimbursement Study Council 5111.34 101542
Ohio Advisory Council for the Aging 173.03 101543
Ohio Aerospace & Defense Advisory Council 122.98 101544
Ohio Arts Council 3379.02 101545
Ohio Business Gateway Steering Committee 5703.57 101546
Ohio Cemetery Dispute Resolution Commission 4767.05 101547
Ohio Civil Rights Commission Advisory Agencies and Conciliation Councils 4112.04(B) 101548
Ohio Commercial Insurance Joint Underwriting Association Board Of Governors 3930.03 101549
Ohio Commercial Market Assistance Plan Executive Committee 3930.02 101550
Ohio Commission on Dispute Resolution and Conflict Management 179.02 101551
Ohio Commission to Reform Medicaid Section 59.29, H.B. 95, 125th GA 101552
Ohio Community Service Council 121.40 101553
Ohio Council for Interstate Adult Offender Supervision 5149.22 101554
Ohio Cultural Facilities Commission 3383.02 101555
Ohio Developmental Disabilities Council 5123.35 101556
Ohio Educational Telecommunications Network Commission 3353.02 101557
Ohio Ethics Commission 102.05 101558
Ohio Expositions Commission 991.02 101559
Ohio Family and Children First Cabinet Council 121.37 101560
Ohio Geology Advisory Council 1505.11 101561
Ohio Grape Industries Committee 924.51 101562
Ohio Hepatitis C Advisory Commission 3701.92 101563
Ohio Historic Site Preservation Advisory Board 149.301 101564
Ohio Historical Society Board of Trustees 149.30 101565
Ohio Judicial Conference 105.91 101566
Ohio Lake Erie Commission 1506.21 101567
Ohio Medical Malpractice Commission Section 4, S.B. 281, 124th GA and Section 3, S.B. 86, 125th GA 101568
Ohio Medical Quality Foundation 3701.89 101569
Ohio Parks and Recreation Council 1541.40 101570
Ohio Peace Officer Training Commission 109.71 101571
Ohio Public Defender Commission 120.01 101572
Ohio Public Library Information Network Board Sec. 69, H.B. 117, 121st GA, as amended by H.B. 284, 121st GA 101573
Ohio Public Works Commission 164.02 101574
Ohio Quarter Horse Development Commission 3769.086 101575
Ohio SchoolNet Commission 3301.80 101576
Ohio Small Government Capital Improvements Commission 164.02 101577
Ohio Soil and Water Conservation Commission 1515.02 101578
Ohio Standardbred Development Commission 3769.085 101579
Ohio Steel Industry Advisory Council 122.97 101580
Ohio Teacher Education and Licensure Advisory Council 3319.28(D) 101581
Ohio Thoroughbred Racing Advisory Committee 3769.084 101582
Ohio Tuition Trust Authority 3334.03 101583
Ohio University College of Osteopathic Medicine Advisory Committee 3337.10 101584
Ohio Vendors Representative Committee 3304.34 101585
Ohio War Orphans Scholarship Board 5910.02 101586
Ohio Water Advisory Council 1521.031 101587
Ohio Water Resources Council 1521.19 101588
Ohioana Library Association, Martha Kinney Cooper Memorial 3375.62 101589
Oil and Gas Commission 1509.35 101590
Operating Committee, Agricultural Commodity Marketing Programs 924.07 101591
Organized Crime Investigations Commission 177.01 101592
Parole Board 5149.10 101593
Pharmacy and Therapeutics Committee of the Dept. of Job and Family Services 5111.81 101594
Physician Loan Repayment Advisory Board 3702.81 101595
Power Siting Board 4906.02 101596
Prequalification Review Board 5525.07 101597
Private Water Systems Advisory Council 3701.346 101598
Public Employment Risk Reduction Advisory Commission 4167.02 101599
Public Health Council 3701.33 101600
Public Utilities Commission Nominating Council 4901.021 101601
Public Utility Property Tax Study Committee 5727.85 101602
Radiation Advisory Council 3748.20 101603
Reclamation Commission 1513.05 101604
Recreation and Resources Commission 1501.04 101605
Recycling and Litter Prevention Advisory Council 1502.04 101606
Rehabilitation Services Commission Consumer Advisory Committee 3304.24 101607
Release Authority of Department of Youth Services 5139.50 101608
Savings & Loans Associations & Savings Banks Board 1181.16 101609
Schools and Ministerial Lands Divestiture Committee 501.041 101610
Second Chance Trust Fund Advisory Committee 2108.17 101611
Self-Insuring Employers Evaluation Board 4123.352 101612
Services Committee of the Workers' Compensation System 4121.06 101613
Small Business Stationary Source Technical and Environmental Compliance Assistance Council 3704.19 101614
Solid Waste Management Advisory Council 3734.51 101615
State Agency Coordinating Group 1521.19 101616
State Board of Deposit 135.02 101617
State Board of Emergency Medical Services Subcommittees 4765.04 101618
State Council of Uniform State Laws 105.21 101619
State Committee for the Purchase of Products and Services Provided by Persons with Severe Disabilities 4115.32 101620
State Criminal Sentencing Commission 181.21 101621
State Employment Relations Board 4117.02 101622
State Fire Commission 3737.81 101623
State Racing Commission 3769.02 101624
State Victims Assistance Advisory Committee 109.91 101625
Student Tuition Recovery Authority 3332.081 101626
Tax Credit Authority 122.17 101627
Technical Advisory Committee to Assist the Director of the Ohio Coal Development Office 1551.35 101628
Technical Advisory Council on Oil and Gas 1509.38 101629
Transportation Review Advisory Council 5512.07 101630
Unemployment Compensation Review Commission 4141.06 101631
Unemployment Compensation Advisory Council 4141.08 101632
Utility Radiological Safety Board 4937.02 101633
Vehicle Management Commission 125.833 101634
Veterans Advisory Committee 5902.02(K) 101635
Volunteer Fire Fighters' Dependents Fund Boards (Private and Public) 146.02 101636
Water and Sewer Commission 1525.11(C) 101637
Waterways Safety Council 1547.73 101638
Wildlife Council 1531.03 101639
Workers' Compensation System Oversight Commission 4121.12 101640
Workers' Compensation Oversight Commission Nominating Committee 4121.123 101641

       Section 403.06. That existing Section 4 of Am. Sub. H.B. 516 101642
of the 125th General Assembly is hereby repealed.101643

       Section 403.10.01. That Sections 3.01, 3.04, and 26.01 of Am. 101644
Sub. S.B. 189 of the 125th General Assembly be amended to read as 101645
follows:101646

Reappropriations

       Sec. 3.01. DAS DEPARTMENT OF ADMINISTRATIVE SERVICES101647

CAP-773 Governor's Residence Restoration $ 4,705 101648
CAP-786 Rural Areas Community Improvements $ 365,000 101649
CAP-804 Day Care Centers $ 6,472 101650
CAP-817 Urban Areas Community Improvements $ 1,058,900 101651
Total Department of Administrative Services $ 1,435,077 101652

       RURAL AREAS COMMUNITY IMPROVEMENTS101653

       From the foregoing appropriation item CAP-786, Rural Areas101654
Community Improvements, grants shall be made for the following101655
projects: $20,000 for the Smith Field Memorial Foundation; 101656
$200,000 for the Champaign YMCA; $100,000 for the Mentor Fire & 101657
Police Headquarters Relocation; $20,000 for the Red Mill Creek 101658
Water Retention Basin; and $25,000 for the Lawrence County Water 101659
Projects.101660

       The amount reappropriated for the foregoing appropriation 101661
item CAP-786, Rural Areas Community Improvements, is the 101662
unencumbered and unallotted balance as of June 30, 2004, in 101663
appropriation item CAP-786, Rural Areas Community Improvements, 101664
minus $75,000.101665

       URBAN AREAS COMMUNITY IMPROVEMENTS101666

       From the foregoing appropriation item CAP-817, Urban Areas101667
Community Improvements, grants shall be made for the following101668
projects: $100,000 for the Maumee Youth Center; $25,000 for the101669
Columbus Civic Arena Development Planning; $50,000 for the Brown101670
Senior Center Renovations; $100,000 for Project AHEAD Facility101671
Improvements; $75,000 for the J. Frank-Troy Senior Citizens 101672
Center; $15,000 for the Victorian Village Society; $50,000 for the 101673
Beech Acres Family Center; $23,900 for the Canton Jewish Women's 101674
Center; $450,000 for the Gateway Social Services Building; $50,000 101675
for the Loew Field Improvements; $20,000 for the Harvard Community 101676
Services Center Renovation & Expansion; $20,000 for the Collinwood101677
Community Service Center Repair & Renovation; and $80,000 for101678
Bowman Park - City of Toledo.101679

Reappropriations

       Sec. 3.04. DNR DEPARTMENT OF NATURAL RESOURCES101680

CAP-245 Millcreek Valley Conservancy District $ 230,503 101681
CAP-702 Upgrade Underground Fuel Tanks $ 296,963 101682
CAP-703 Cap Abandoned Water Wells $ 357,481 101683
CAP-823 Cost Sharing-Pollution Abatement $ 33,614 101684
CAP-847 Assistance to Local Governments for Conservation Works of Improvement $ 25,000 101685
CAP-848 Hazardous Dam Repair $ 91,521 101686
CAP-875 Ohio River Access $ 100,000 101687
CAP-929 Hazardous Waste/Asbestos Abatement $ 286,154 101688
CAP-931 Wastewater/Water Systems Upgrades $ 32,205 101689
CAP-932 Wetlands/Waterfront Development and Acquisition $ 32,460 101690
CAP-942 Local Parks Projects $ 80,225 101691
CAP-969 Frost-Parker Wetlands Preserve $ 4,760 101692
CAP-999 Geographic Information Management System $ 1,085 101693
Total Department of Natural Resources $ 1,571,971 101694
TOTAL GRF General Revenue Fund $ 3,462,769 101695

       LOCAL PARKS PROJECTS101696

        From the foregoing appropriation item CAP-942, Local Parks 101697
Projects, $75,000 shall be granted for the Liberty Township 101698
Playground. The amount reappropriated for the foregoing 101699
appropriation item CAP-942, Local Parks Projects, is the 101700
unencumbered and unallotted balance as of June 30, 2004, in 101701
appropriation item CAP-942, Local Parks Projects, plus $75,000.101702

Reappropriations

       Sec. 26.01. OEB OHIO EDUCATIONAL TELECOMMUNICATIONS NETWORK 101703
COMMISSIONETC ETECH OHIO101704

CAP-001 Educational Television and Radio Equipment $ 1,650,617 3,378,684 101705
CAP-002 Educational Broadcasting Fiber Optic Network $ 51,748 101706
Total Ohio Educational Telecommunications Network Commission eTech Ohio $ 1,702,365 3,430,432 101707

       EDUCATIONAL TELEVISION AND RADIO EQUIPMENT101708

       The foregoing appropriation item CAP-001, Educational101709
Television and Radio Equipment, shall be used to provide101710
broadcasting, transmission, and production equipment to Ohio101711
public radio and television stations, radio reading services, and101712
the Ohio Educational Telecommunications Network CommissioneTech 101713
Ohio.101714

       EDUCATIONAL BROADCASTING FIBER OPTIC NETWORK101715

       The foregoing appropriation item CAP-002, Educational101716
Broadcasting Fiber Optic Network, shall be used to link the Ohio101717
public radio and television stations, radio reading services, and101718
the Ohio Educational Broadcasting NetworkeTech Ohio for the101719
reception and transmission of digital communications through fiber 101720
optic cable or other technology.101721

       Section 403.10.02. That existing Sections 3.01, 3.04, and 101722
26.01 of Am. Sub. S.B. 189 of the 125th General Assembly is hereby 101723
repealed.101724

       Section 403.09.  That Section 22 of Am. Sub. S.B. 189 of the 101725
125th General Assembly, as amended by Am. Sub. H.B. 16 of the 101726
126th General Assembly, be amended to read as follows:101727

       Sec. 22. All items set forth in this section are hereby101728
appropriated out of any moneys in the state treasury to the credit101729
of the Cultural and Sports Facilities Building Fund (Fund 030) 101730
that are not otherwise appropriated:101731

Reappropriations

AFC CULTURAL FACILITIES COMMISSION
101732

CAP-003 Center of Science and Industry - Toledo $ 12,268 101733
CAP-004 Valentine Theatre $ 1,111 101734
CAP-005 Center of Science and Industry - Columbus $ 181,636 101735
CAP-010 Sandusky State Theatre Improvements $ 1,000,000 101736
CAP-017 Zion Center of the National Afro-American Museum $ 488,232 101737
CAP-021 Ohio Historical Center - Archives and Library Shelving $ 2,395 101738
CAP-033 Woodward Opera House Renovation $ 1,050,000 101739
CAP-037 Canton Palace Theatre Renovations $ 1,066,126 101740
CAP-038 Center Exhibit Replacement $ 750,000 101741
CAP-042 Statewide Site Exhibit/Renovation & Construction $ 625,000 101742
CAP-043 Statewide Site Repairs $ 454,000 101743
CAP-046 Cincinnati Museum Center Improvements $ 500,000 101744
CAP-052 Akron Art Museum $ 6,634,666 101745
CAP-053 Powers Auditorium Improvements $ 200,000 101746
CAP-055 Waco Museum & Aviation Learning Center $ 500,000 101747
CAP-057 Comprehensive Master Plan $ 180,000 101748
CAP-058 Cedar Bog Nature Preserve Education Center $ 766,200 101749
CAP-061 Statewide Arts Facilities Planning $ 35,931 101750
CAP-063 Robins Theatre Renovations $ 1,000,000 101751
CAP-064 Bramley Historic House $ 75,000 101752
CAP-066 Delaware County Cultural Arts Center $ 40,000 101753
CAP-068 Perry County Historical Society $ 100,000 101754
CAP-069 Cleveland Institute of Art $ 750,000 101755
CAP-071 Cleveland Institute of Music $ 750,000 101756
CAP-072 West Side Arts Consortium $ 138,000 101757
CAP-074 Stan Hywet Hall & Gardens $ 250,000 101758
CAP-075 McKinley Museum Improvements $ 125,000 101759
CAP-076 Spring Hill Historic Home $ 125,000 101760
CAP-077 Western Reserve Ballet Improvements $ 100,000 101761
CAP-078 Midland Theatre $ 175,000 101762
CAP-079 Lorain Palace Civic Theatre $ 200,000 101763
CAP-080 Great Lakes Historical Society $ 150,000 101764
CAP-734 Hayes Presidential Center $ 75,000 101765
CAP-745 Historic Sites and Museums $ 750,000 101766
CAP-753 Buffington Island State Memorial $ 91,500 101767
CAP-770 Serpent Mound State Memorial $ 295,000 101768
CAP-784 Ohio Historical Center Rehabilitation $ 673,700 101769
CAP-786 Piqua/Ft Picakawillany Acquisition and Improvements $ 136,000 101770
CAP-789 Neil Armstrong Air and Space Museum Improvements $ 103,516 101771
CAP-791 Harrison Tomb and Site Renovations $ 149,500 101772
CAP-796 Moundbuilders State Memorial $ 530,000 101773
CAP-806 Grant Boyhood Home Improvements $ 68,333 101774
CAP-809 Cincinnati Ballet Facility Improvements $ 450,000 101775
CAP-810 Toledo Museum of Art Improvements $ 2,000,000 101776
CAP-814 Crawford Museum of Transportation & Industry $ 2,500,000 101777
CAP-820 Historical Center Ohio Village Buildings $ 502,000 101778
CAP-821 Lorain County Historical Society $ 300,000 101779
CAP-822 Madison County Historic Schoolhouse $ 40,000 101780
CAP-823 Marion Palace Theatre $ 825,000 101781
CAP-824 McConnellsville Opera House $ 75,000 101782
CAP-825 Secrest Auditorium $ 75,000 101783
CAP-826 Renaissance Theatre $ 50,000 101784
CAP-827 Trumpet in the Land $ 100,000 101785
CAP-828 Becky Thatcher Showboat $ 30,000 101786
CAP-829 Mid Ohio Valley Players $ 50,000 80,000 101787
CAP-830 The Anchorage $ 50,000 101788
CAP-831 Wayne County Historical Society $ 300,000 101789
CAP-833 Promont House Museum $ 200,000 101790
CAP-836 Fairfield Outdoor Theatre $ 100,000 101791
CAP-837 Lake County Historical Society $ 250,000 101792
CAP-839 Hancock Historical Society $ 75,000 101793
CAP-840 Riversouth Development $ 1,000,000 101794
CAP-841 Ft. Piqua Hotel $ 200,000 101795
CAP-843 Marina District/Ice Arena Development $ 4,000,000 101796
Total Cultural Facilities Commission $ 34,470,114 101797
34,370,114 101798
TOTAL CULTURAL and Sports Facilities Building Fund $ 34,470,114 101799
34,370,114 101800

       COSI COLUMBUS - LOCAL ADMINISTRATION OF CAPITAL PROJECT101801
CONTRACTS101802

       Notwithstanding division (A) of section 3383.07 of the101803
Revised Code, the Ohio Cultural Facilities Commission, with101804
respect to the foregoing appropriation item CAP-005, Center of101805
Science and Industry - Columbus, may administer all or part of101806
capital facilities project contracts involving exhibit fabrication101807
and installation as determined by the Department of Administrative101808
Services, the Center of Science and Industry - Columbus, and the101809
Ohio Cultural Facilities Commission in review of the project 101810
plans. The Ohio Cultural Facilities Commission shall enter into a 101811
contract with the Center of Science and Industry - Columbus to 101812
administer the exhibit fabrication and installation contracts and 101813
such contracts are not subject to Chapter 123. or 153. of the 101814
Revised Code.101815

       SPORTS FACILITIES IMPROVEMENTS - AKRON101816

       The amount reappropriated to the Cultural and Sports 101817
Facilities Building Fund (Fund 030), CAP-024, Sports Facilities 101818
Improvements - Akron, is the unallotted and unencumbered balance 101819
in the Sports Facilities Building Fund (Fund 024), CAP-024, Sports 101820
Facilities Improvements - Akron.101821

        REDS HALL OF FAME101822

        The amount reappropriated to the Cultural and Sports 101823
Facilities Building Fund (Fund 030), CAP-025, Reds Hall of Fame, 101824
is the unallotted and unencumbered balance in the Sports 101825
Facilities Building Fund (Fund 024), CAP-025, Reds Hall of Fame.101826

       AKRON ART MUSEUM101827

       The amount reappropriated for the foregoing appropriation 101828
item CAP-052, Akron Art Museum, is the unencumbered and unallotted 101829
balance as of June 30, 2004, in appropriation item CAP-052, Akron 101830
Art Museum, plus $1,634,666.101831

       RIVERSOUTH DEVELOPMENT101832

       The amount reappropriated for the foregoing appropriation 101833
item CAP-840, Riversouth Development, is the unencumbered and 101834
unallotted balance as of June 30, 2004, in appropriation item 101835
CAP-840, Riversouth Development, minus $9,000,000.101836

        MARINA DISTRICT/ICE ARENA DEVELOPMENT101837

       The amount reappropriated to the Cultural and Sports 101838
Facilities Building Fund (Fund 030), CAP-843, Marina District/Ice 101839
Arena Development, is the unallotted and unencumbered balance in 101840
the Sports Facilities Building Fund (Fund 024), CAP-073, Marina 101841
District/Ice Arena Development. 101842

       Section 403.10. That existing Section 22 of Am. Sub. S.B. 189 101843
of the 125th General Assembly, as amended by Am. Sub. H.B. 16 of 101844
the 126th General Assembly, is hereby repealed.101845

       Section 403.11. That Section 3 of Am. Sub. H.B. 621 of the101846
122nd General Assembly, as most recently amended by Am. Sub. H.B.101847
95 of the 125th General Assembly, be amended to read as follows:101848

       Sec. 3. That sections 166.031, 901.80, 901.81, 901.82, and 101849
901.83 of the Revised Code are hereby repealed, effective October 101850
15, 20052007.101851

       Section 403.12. That existing Section 3 of Am. Sub. H.B. 621 101852
of the 122nd General Assembly, as most recently amended by Am. 101853
Sub. H.B. 95 of the 125th General Assembly, is hereby repealed.101854

       Section 403.17. That Section 153 of Am. Sub. H.B. 117 of the 101855
121st General Assembly, as most recently amended by Am. Sub. H.B. 101856
95 of the 125th General Assembly, be amended to read as follows:101857

       Sec. 153.  (A) Sections 5112.01, 5112.03, 5112.04, 5112.05,101858
5112.06, 5112.07, 5112.08, 5112.09, 5112.10, 5112.11, 5112.18, 101859
5112.19, 5112.21, and 5112.99 of the Revised Code are hereby101860
repealed, effective October 16, 20052007.101861

       (B) Any money remaining in the Legislative Budget Services101862
Fund on October 16, 20052007, the date that section 5112.19 of 101863
the Revised Code is repealed by division (A) of this section, 101864
shall be used solely for the purposes stated in then former 101865
section 5112.19 of the Revised Code. When all money in the101866
Legislative Budget Services Fund has been spent after then former101867
section 5112.19 of the Revised Code is repealed under division (A)101868
of this section, the fund shall cease to exist.101869

       Section 403.18. That existing Section 153 of Am. Sub. H.B. 101870
117 of the 121st General Assembly, as most recently amended by Am. 101871
Sub. H.B. 95 of the 125th General Assembly, is hereby repealed.101872

       Section 403.23. That Section 5 of Am. Sub. S.B. 50 of the 101873
121st General Assembly, as most recently amended by Am. Sub. H.B. 101874
95 of the 125th General Assembly, be amended to read as follows:101875

       Sec. 5.  Sections 3 and 4 of Am. Sub. S.B. 50 of the 121st101876
General Assembly shall take effect July 1, 20052007.101877

       Section 403.24. That existing Section 5 of Am. Sub. S.B. 50 101878
of the 121st General Assembly, as most recently amended by Am. 101879
Sub. H.B. 95 of the 125th General Assembly is hereby repealed.101880

       *       Section 490.03. That Section 59.19 of Am. Sub. H.B. 95 of 101881
the 125th General Assembly is hereby repealed.101882

       *       Section 490.04. Section 89.17 of Am. Sub. H.B. 95 of the 101883
125th General Assembly is hereby repealed.101884

       Section 490.06. That Section 147 of Am. Sub. H.B. 95 of the 101885
125th General Assembly is hereby repealed.101886

       Section 502.01.  Nothing in this act shall affect the term of 101887
any member of the workers' compensation oversight commission 101888
serving on the effective date of this act.101889

       The Treasurer of State shall appoint a person to serve as an 101890
investment expert member of the Workers' Compensation Oversight 101891
Commission and the President of the Senate and the Speaker of the 101892
House of Representatives jointly shall appoint a person to serve 101893
as an investment expert member of the Oversight Commission not 101894
later than ninety days after the effective date of this section, 101895
and those persons shall take office not later than ninety days 101896
after the effective date of this section. The Treasurer and the 101897
President and Speaker shall appoint those members to a term ending 101898
September 1, 2008. Each investment expert member shall have the 101899
following qualifications:101900

       (A) Be a resident of this state;101901

       (B) Within the three years immediately preceding the 101902
appointment, not have been employed by the bureau of workers' 101903
compensation or by any person, partnership, or corporation that 101904
has provided to the bureau services of a financial or investment 101905
nature, including the management, analysis, supervision, or 101906
investment of assets;101907

       (C) Have direct experience in the management, analysis, 101908
supervision, or investment of assets.101909

       The investment expert members of the oversight commission 101910
shall vote only on investment matters.101911

       *       Section 502.02. Within thirty days after the effective date 101912
of section 4121.12 of the Revised Code as amended by this act, the 101913
workers' compensation oversight commission shall adopt new 101914
objectives, criteria, and policies for the investment program of 101915
the bureau of workers' compensation that complies with the 101916
requirements of section 4121.12 of the Revised Code as amended by 101917
this act.101918

       *       Section 502.03.  Within thirty days after the effective date 101919
of this section, the Workers' Compensation Oversight Commission 101920
shall submit both of the following lists to the Governor, the 101921
President of the Senate, and the Speaker of the House of 101922
Representatives:101923

       (A) A list of all of the classes of investments in which 101924
assets of funds are invested at the time the act takes effect and 101925
in which assets of funds have been invested in the twelve months 101926
immediately preceding the effective date of this act;101927

       (B) A list of all investments that are prohibited by this act 101928
in which the Administrator of Workers' Compensation has invested, 101929
and the value of each investment.101930

       The Oversight Commission shall submit to the Governor, the 101931
President of the Senate, and the Speaker of the House of 101932
Representatives, within thirty days after the effective date of 101933
this section, a plan to divest itself, within six months after the 101934
effective date of this section, of any investments that are 101935
prohibited by section 4121.12 of the Revised Code, as amended by 101936
this act.101937

       Section 502.03.01. In addition to the Inspector General's 101938
powers and duties specified in sections 121.41 to 121.50 of the 101939
Revised Code and notwithstanding division (F) of section 121.42 of 101940
the Revised Code, as part of the Inspector General's investigation 101941
of the investments of the assets of the funds specified in 101942
Chapters 4121., 4123., 4127., and 4131. of the Revised Code that 101943
the Administrator of Workers' Compensation has the authority to 101944
invest, the Inspector General shall have a fiduciary review of 101945
those investments conducted by an independent firm. The Inspector 101946
General shall award a contract to an independent firm in the same 101947
manner as the Inspector General awards contracts to special 101948
investigators. The Inspector General shall submit a copy of the 101949
fiduciary review that the Inspector General receives to the 101950
Governor, the Attorney General, the Auditor of State, and the 101951
General Assembly.101952

       *       Section 502.04. Nothing in this act shall be construed to 101953
limit the Ohio Ethics Commission's authority, responsibility, and 101954
powers under Chapter 102. of the Revised Code as it existed 101955
immediately prior to the effective date of this section as applied 101956
to members of the Workers' Compensation Oversight Commission and 101957
employees of the Bureau of Workers' Compensation. Any authority, 101958
power, or responsibilities of the Ohio Ethics Commission expressly 101959
created by this act are in addition to any authority, power, or 101960
responsibilities of the Commission in effect immediately prior to 101961
the effective date of this section.101962

       Section 503.03. As used in this section, "state agency" means 101963
the administrative departments identified in section 121.02 of the 101964
Revised Code and the bureau of workers' compensation.101965

       During 2005, the Auditor of State shall examine the 101966
compliance of each state agency with the requirements of section 101967
131.02 of the Revised Code. The examination shall inquire into the 101968
following matters:101969

       (A) The practices and procedures used by the agency to 101970
collect claims before the claims are certified to the Attorney 101971
General as required by section 131.02 of the Revised Code;101972

       (B) The number of individuals employed by the agency or 101973
engaged under contract with the agency in 2003 and 2004 whose only 101974
or whose primary duty is to collect amounts owed to the agency;101975

       (C) For claims certified to the Attorney General under 101976
section 131.02 of the Revised Code in 2003 and 2004, the average 101977
number of days elapsing between the last day for timely payment of 101978
the claims and the day the agency certified the claim to the 101979
Attorney General.101980

       For the purposes of the examination required by this section, 101981
the Auditor of State may request a state agency to provide reports 101982
to the Auditor of State on the matters described under divisions 101983
(A), (B), and (C) of this section. State agencies shall provide 101984
such reports to the Auditor of State within 60 days after the 101985
request, but the Auditor of State may extend the time for 101986
providing the report for good cause for up to sixty days.101987

       Not later than March 31, 2006, the Auditor of State shall 101988
submit a written report of the Auditor of State's findings under 101989
this section to the Governor, the Speaker of the House of 101990
Representatives, the President of the Senate, and the Legislative 101991
Service Commission.101992

       Section 503.06. (A) There is hereby created the Task Force on 101993
Law Library Associations, consisting of thirteen members. The 101994
Speaker and Minority Leader of the House of Representatives shall 101995
each appoint one member of the House of Representatives to the 101996
Task Force. The President and Minority Leader of the Senate shall 101997
each appoint one member of the Senate to the Task Force. The Ohio 101998
Judicial Conference shall appoint three members to the Task Force, 101999
two of whom shall be judges who are members of the Conference and 102000
one of whom shall be a law librarian associated with a law library 102001
association. The County Commissioners Association of Ohio shall 102002
appoint three members to the Task Force. The Ohio State Bar 102003
Association shall appoint three members to the Task Force, two of 102004
whom shall be attorneys licensed to practice law in this state and 102005
one of whom shall be a law librarian associated with a law library 102006
association. Appointments to the Task Force shall be made by 102007
September 1, 2005. Vacancies on the Task Force shall be filled in 102008
the manner provided for original appointments.102009

        (B)(1) The Task Force shall do each of the following:102010

        (a) Gather information on and study the current state of the 102011
law library associations in this state covered by sections 3375.48 102012
to 3375.56 of the Revised Code, with particular emphasis on the 102013
structure, funding, and administration of their law libraries, and 102014
on the effect of technology on, and access to, their law 102015
libraries;102016

        (b) Make recommendations on the structure, funding, and 102017
administration of these law libraries presently and over the next 102018
five calendar years;102019

        (c) Make recommendations as to how to ensure that these law 102020
libraries remain open and may be made available to members of the 102021
public.102022

        (2) The Task Force shall submit a report of its findings and 102023
recommendations to the Speaker and Minority Leader of the House of 102024
Representatives, the President and Minority Leader of the Senate, 102025
and the Chief Justice of the Supreme Court by October 31, 2006. 102026
Upon submission of its report, the Task Force shall cease to 102027
exist.102028

        (C) Sections 101.82 to 101.87 of the Revised Code do not 102029
apply to the Task Force.102030

       Section 503.09. (A) There is hereby created the Correctional 102031
Faith-Based Initiatives Task Force consisting of the following 102032
seventeen members:102033

       (1) One member of the House of Representatives appointed by 102034
the Speaker of the House of Representatives;102035

       (2) One member of the House of Representatives appointed by 102036
the Speaker of the House of Representatives after considering the 102037
recommendation of the leader of the minority party of the House of 102038
Representatives;102039

       (3) One member of the Senate appointed by the President of 102040
the Senate;102041

       (4) One member of the Senate appointed by the President of 102042
the Senate after considering the recommendation of the Minority 102043
Leader of the Senate;102044

       (5) Two members appointed by the Governor;102045

       (6) The Director of Rehabilitation and Correction or the 102046
director's designee;102047

       (7) Three members appointed by the Director of Rehabilitation 102048
and Correction who have expertise or experience in faith-based 102049
programs in the correctional setting;102050

       (8) The Director of Job and Family Services or the director's 102051
designee;102052

       (9) The Director of Youth Services or the director's 102053
designee;102054

       (10) One member appointed by the Director of Youth Services 102055
who has expertise or experience in the juvenile court system;102056

       (11) The Director of Alcohol and Drug Addiction Services or 102057
the director's designee;102058

       (12) The Director of Mental Health or the director's 102059
designee;102060

       (13) The Executive Director of the Division of Criminal 102061
Justice Services or the executive director's designee;102062

       (14) One member appointed by the executive assistant in 102063
charge of the Governor's Office of Faith-Based and Community 102064
Initiatives.102065

       (B) The Director of Rehabilitation and Correction, or the 102066
director's designee, and the member of the House of 102067
Representatives appointed by the Speaker of the House of 102068
Representatives shall be co-chairs of the task force. The task 102069
force shall meet at least once each month. The Department of 102070
Rehabilitation and Correction shall provide the task force with a 102071
meeting room and secretarial assistance.102072

       (C) The task force shall study seamless faith-based solutions 102073
to problems in the correctional system, focusing on diversion 102074
programs, programs and services in the prison system and for 102075
families of incarcerated individuals, and the faith-based and 102076
nonprofit organizations that provide the programs and services. 102077
The task force shall examine existing faith-based programs in 102078
prisons in Ohio and other states and shall consider the 102079
feasibility of replicating programs from other states and 102080
developing model faith-based penal institutions, faith-based units 102081
within penal institutions, and faith-based programs to reduce 102082
recidivism of offenders after their release from prison, improve 102083
prison management, and deal with juveniles who have been held over 102084
to or are in the adult penal system or who have parents who are 102085
incarcerated.102086

       (D) On or before the first anniversary of the effective date 102087
of this section, the task force shall provide a written report and 102088
recommendations to the Governor, the Speaker of the House of 102089
Representatives, and the President of the Senate. Upon submitting 102090
the report and recommendations, the task force shall cease to 102091
exist.102092

       Section 503.12. (A) There is hereby created the Local 102093
Government and Library Revenue Distribution Task Force consisting 102094
of the following members:102095

        (1) Five members of the House of Representatives to be 102096
appointed by the Speaker of the House of Representatives, at least 102097
two of whom shall be from the minority party;102098

        (2) Five members of the Senate to be appointed by the 102099
President of the Senate, at least two of whom shall be from the 102100
minority party;102101

       (3) One nonvoting member to be appointed by the Ohio Library 102102
Council;102103

        (4) One nonvoting member to be appointed by the County 102104
Commissioners' Association of Ohio;102105

        (5) One nonvoting member to be appointed by the Ohio 102106
Municipal League;102107

        (6) One nonvoting member to be appointed by the Ohio Township 102108
Association;102109

        (7) One nonvoting member to be appointed by the Ohio Parks 102110
and Recreation Association.102111

        All appointments shall be made within thirty days after the 102112
effective date of this section. Vacancies on the Task Force shall 102113
be filled in the same manner as the original appointments. The 102114
Task Force shall designate one of the members to serve as 102115
chairperson. The initial meeting to organize the Task Force shall 102116
be called by the Tax Commissioner.102117

        (B) The Task Force shall study potential sources of state 102118
funding for the Local Government Fund, the Library and Local 102119
Government Support Fund, and the Local Government Revenue 102120
Assistance Fund that have the capacity to allow for growth in 102121
funding levels and to provide stability in funding levels. In 102122
addition, the Task Force shall consider changes to the codified 102123
funding formulae for the Local Government Fund, the Library and 102124
Local Government Support Fund, and the Local Government Revenue 102125
Assistance Fund that reflect the reform to Ohio tax code.102126

        (C) The Task Force shall receive staff assistance from the 102127
Tax Commissioner and may request assistance from the Legislative 102128
Service Commission. The Task Force shall also seek the input and 102129
testimony of interested parties.102130

        (D) Not later than December 1, 2006, the Task Force shall 102131
submit a report to the Governor and to the General Assembly 102132
setting forth its recommendations for sources of funding for the 102133
funds specified in division (B) of this section, together with 102134
suggested legislation to implement the recommendations. 102135

        (E) The Task Force shall cease to exist upon issuing its 102136
report.102137

       Section 503.15. (A) Notwithstanding any other provision of 102138
law to the contrary, the appointment and removal provisions of the 102139
resolutions and ordinances governing the board of trustees of any 102140
regional transit authority consisting of a county having a 102141
population of at least five hundred thousand, according to the 102142
2000 federal census, and two municipal corporations, are void on 102143
the effective date of this act. The appointment and removal of the 102144
board of trustees of such regional transit authority shall comply 102145
with section 306.331 of the Revised Code.102146

        (B) Within the first five days after the effective date of 102147
this act, the county and municipal corporations specified in 102148
section 306.331 of the Revised Code shall appoint a new board of 102149
trustees for the regional transit authority in accordance with 102150
section 306.331 of the Revised Code.102151

        (C) Notwithstanding any other provision of law to the 102152
contrary, on the fifth day after the effective date of this act, 102153
the board of trustees of such regional transit authority, as 102154
constituted on the effective date of this act, is dissolved and 102155
the board appointed in accordance with section 306.331 of the 102156
Revised Code shall meet and organize.102157

        (D) This act shall not be construed as affecting the validity 102158
of any action of such regional transit authority taken prior to 102159
the effective date of this act.102160

       Section 503.18. OCCUPATIONAL THERAPY, PHYSICAL THERAPY, AND 102161
ATHLETIC TRAINERS BOARD MEMBER APPOINTMENT102162

       The term of the licensed occupational therapy assistant, as 102163
established in section 4755.03 of the Revised Code as amended by 102164
this act, shall commence at the time of the next appointment to 102165
the Occupational Therapy, Physical Therapy, and Athletic Trainers 102166
Board.102167

       Section 506.03. (A) The Governor is hereby authorized to 102168
execute a deed in the name of the state conveying to 102169
Hocking.Athens.Perry Community Action and its successors and 102170
assigns all of the state's right, title, and interest in the 102171
following described real estate:102172

        Situate in the Village of Glouster, Trimble Township, Athens 102173
County, Ohio, and being a part of a tract as described in Volume 102174
384, Page 47 of the Deed Records of Athens County, and being more 102175
particularly described as follows:102176

        Beginning at an iron pin set at the northeast corner of Lot 102177
848 of the Wassall Fire Clay Company's Addition to the Village of 102178
Glouster; thence along the south line of a 10.00 foot alley South 102179
85º 54' 29" East 219.30 feet to an iron pin set, thence along the 102180
west line of a 4.27 acre tract (ORV 4-442) South 2º 25' 37" East, 102181
528.53 feet to an iron pin found; thence along the west line of a 102182
44.21 acre tract (ORV 172-611) South 24º 08' 53" West, 412.51 feet 102183
to an iron pin found; thence North 81º 51' 07" West 594.65 feet to 102184
a point on the east right of way line of the former Toledo and 102185
Ohio Central Railroad (passing an iron pin found at 586.43 feet); 102186
thence along said line North 1º 39' 06" West, 734.24 feet to an 102187
iron pin found; thence along the south line of Lot 860 in said 102188
Village South 85º 54' 11" East, 188.77 feet to an iron pin set; 102189
thence along the east line of Lots 860 and 859 North 4º 05' 20" 102190
East, 100.00 feet to an iron pin set (an iron pin found for 102191
reference bears South 70º 30' 21" East, 1.01 feet); thence along 102192
the south line of Lots 857 and 848 South 85º 54' 29" East, 340.04 102193
feet to an iron pin found; thence along the east line of Lot 848 102194
North 4º 05' 30" East, 40.00 feet to the point of beginning and 102195
containing 14.046 acres.102196

        Subject to all Easements and Rights of Way of Record.102197

        Bearings used are to an assumed meridian and are for angular 102198
determination only.102199

        Surveyed October 1996 by Kenneth E. Highland, Ohio PLS 102200
#S-7581.102201

        EXCEPTING THEREFROM THE FOLLOWING DESCRIBED TWO TRACTS:102202

       Tract 1-0.020 acre: Situate in the Village of Glouster, 102203
Trimble Township, Athens County, Ohio, and being a part of a tract 102204
as previously described in Volume 384, Page 47 of the Deed Records 102205
of Athens County and being more particularly described as follows: 102206
Commencing at an iron pin set at the southeast corner of Lot 860 102207
of the Wassall Fire Clay Company's Addition to the Village of 102208
Glouster; thence along the south line of said lot North 85º 54' 102209
11" West, 88.77 feet to an iron pin set at the point of beginning 102210
of this tract; thence leaving said line and along a new line South 102211
4º 05' 49" West, 15.00 feet to a point (passing an iron pin set at 102212
10.00 feet); thence along a new line parallel to the south line of 102213
the previously mentioned lot line North 85º 54' 11" West, 60.00 102214
feet to an iron pin set; thence North 4º 05' 49" East, 15.00 feet 102215
to an iron pin set on grantors most westerly north line (passing 102216
an iron pin set at 5.00 feet); thence along said line South 85º 102217
54' 11" East, 60.00 feet to the point of beginning and containing 102218
0.020 acre. Subject to all easements and rights of way of record. 102219
Bearings used are to an assumed meridian and are for angular 102220
determination only. Surveyed August 1997 by Kenneth E. Highland, 102221
Ohio PLS #S-7581.102222

        Deed Reference:Volume 263, Page 540 and Volume 299, Page 185, 102223
Athens County Official Records.102224

       Tract 2-0.013 acre: Situate in the Village of Glouster, 102225
Trimble Township, Athens County, Ohio, and being a part of a tract 102226
as previously described in Volume 384, Page 47 of the Deed Records 102227
of Athens County and being more particularly described as follows: 102228
Commencing at an iron pin set at the southwest corner of Lot 857 102229
of the Wassall Fire Clay Company's Addition to the Village of 102230
Glouster; thence along the south line of said lot South 85º 54' 102231
29" East, 90.00 feet to an iron pin set at the point of beginning 102232
of this tract; thence continuing along said line South 85º 54' 29" 102233
East, 60.00 feet to an iron pin set at the southeast corner of 102234
said lot; thence along a new line South 4º 05' 31" West 10.00 feet 102235
to an iron pin set; thence along a line parallel to the south line 102236
of Lot 857 North 85º 54' 29" West, 60.00 feet to an iron pin set; 102237
thence along a new line North 4º 05' 31" East, 10.00 feet to the 102238
point of beginning and containing 0.013 acre. Subject to all 102239
easements and rights of way of record. Bearings used are to an 102240
assumed meridian and are for angular determination only. Surveyed 102241
August 1997 by Kenneth E. Highland, Ohio PLS #S-7581; revised June 102242
2000.102243

        Deed Reference:Volume 299, Page 704; Volume 263, Page 544; 102244
and Volume 299, Page 183, Athens County Official Records.102245

        DEED REFERENCE:VOLUME _____, PAGE _____; VOLUME 298, PAGE 102246
2439; AND VOLUME 258, PAGE 79, ATHENS COUNTY OFFICIAL RECORDS.102247

        (B) Consideration for the conveyance of the real estate 102248
described in division (A) of this section is the purchase price of 102249
one dollar.102250

        (C) Upon payment of the purchase price, the Auditor of State, 102251
with the assistance of the Attorney General, shall prepare a deed 102252
to the real estate described in division (A) of this section. The 102253
deed shall state the consideration. The deed shall be executed by 102254
the Governor in the name of the state, countersigned by the 102255
Secretary of State, sealed with the Great Seal of the State, 102256
presented in the Office of the Auditor of State for recording, and 102257
delivered to Hocking.Athens.Perry Community Action. 102258
Hocking.Athens.Perry Community Action shall present the deed for 102259
recording in the Office of the Athens County Recorder.102260

        (D) Hocking.Athens.Perry Community Action shall pay the costs 102261
of the conveyance of the real estate described in division (A) of 102262
this section.102263

        (E) This section expires one year after its effective date.102264

       Section 509.03. (A)(1) The Clerk of the Medina Municipal 102265
Court shall be elected by the qualified electors of the territory 102266
of the court in the manner that is provided for the election of 102267
the judge of that court in section 1901.07 of the Revised Code at 102268
the first general election that occurs not less than six months 102269
after the effective date of this section.102270

        (2) Notwithstanding division (A)(1)(a) of section 1901.31 of 102271
the Revised Code, the term of the Clerk of the Medina Municipal 102272
Court elected under division (A)(1) of this section shall commence 102273
on the first day of January following the clerk's election and 102274
continue until the clerk's successor is elected and qualified. The 102275
clerk's successor shall be elected pursuant to the schedule for 102276
the election of the judge of that court in sections 1901.07 and 102277
1901.08 of the Revised Code.102278

       (B) The Clerk of the Medina Municipal Court shall continue in 102279
office until the clerk elected pursuant to division (A) of this 102280
section takes office. If the office of Clerk of the Medina 102281
Municipal Court becomes vacant prior to the date that the clerk 102282
elected pursuant to division (A) of this section takes office, the 102283
judges of the court shall appoint a clerk to serve until the clerk 102284
elected pursuant to division (A) of this section takes office.102285

       Section 512.03. The Motor Vehicle Inspection and Maintenance 102286
Fund that is created in section 3704.14 of the Revised Code, as 102287
reenacted by this act, is a continuation of the Motor Vehicle 102288
Inspection and Maintenance Fund that was created in section 102289
3704.14 of the Revised Code, as repealed by this act. Money 102290
credited to the Fund under former section 3704.14 of the Revised 102291
Code shall be used for the purposes specified in new section 102292
3704.14 of the Revised Code, as enacted by this act.102293

       "       Section 513.03. (A) Notwithstanding any provision of law to 102294
the contrary and during the period beginning July 1, 2005, and 102295
ending December 31, 2005, the Director of Environmental Protection 102296
or a board of health as defined in section 3714.01 of the Revised 102297
Code shall not issue a license to open a new construction and 102298
demolition debris facility under Chapter 3714. of the Revised Code 102299
and rules adopted under it. Except as otherwise provided in this 102300
division, the moratorium established by this division applies both 102301
with respect to an application for a license to open a new 102302
construction and demolition debris facility that is submitted on 102303
or after the effective date of this section and to an application 102304
for such a license that has been submitted to the Director or a 102305
board of health prior to the effective date of this section, but 102306
concerning which a license for a facility has not been issued as 102307
of that effective date.102308

       The board of county commissioners of a county may request the 102309
Director or a board of health to continue to process an 102310
application for a license to open a new construction and 102311
demolition debris facility in that county that has been submitted 102312
to the Director or board of health prior to the effective date of 102313
this section. After receiving such a request from a board of 102314
county commissioners, the Director or board of health may then 102315
issue a license for the new construction and demolition debris 102316
facility notwithstanding the moratorium established by this 102317
division.102318

       The moratorium established by this division does not apply to 102319
a license for a new construction and demolition debris facility if 102320
the new facility will be located adjacent or contiguous to a 102321
previously licensed construction and demolition debris facility. 102322
The moratorium also does not apply to an expansion of or other 102323
modification to an existing licensed construction and demolition 102324
debris facility.102325

       (B)(1) There is hereby created the Construction and 102326
Demolition Debris Facility Study Committee composed of the 102327
following thirteen members:102328

       (a) Three members of the House of Representatives appointed 102329
by the Speaker of the House of Representatives;102330

       (b) Three members of the Senate appointed by the President of 102331
the Senate;102332

       (c) The Director of Environmental Protection or the 102333
Director's designee;102334

       (d) One member representing health districts in the state 102335
appointed by the Governor;102336

       (e) Three members representing the construction and 102337
demolition debris industry in the state appointed by the Governor, 102338
one of whom shall be the owner of both a construction and 102339
demolition debris facility and a solid waste disposal facility;102340

       (f) Two members representing environmental consulting 102341
organizations or firms in the state appointed by the Governor.102342

       Appointments shall be made to the Committee not later than 102343
fifteen days after the effective date of this section. Members of 102344
the Committee shall not receive compensation for their service on 102345
the Committee and shall not receive reimbursement for expenses 102346
incurred related to that service.102347

       (2) The Committee shall study the laws of this state 102348
governing construction and demolition debris facilities and the 102349
rules adopted under those laws and shall make recommendations to 102350
the General Assembly regarding changes to those laws including, 102351
but not limited to, recommendations concerning the following 102352
topics:102353

       (a) The establishment of a code of ethics for owners and 102354
operators of construction and demolition debris facilities;102355

       (b) The establishment of best management practices;102356

       (c) Licensing requirements;102357

       (d) Testing and monitoring requirements and protocols;102358

       (e) Siting and setback criteria for construction and 102359
demolition debris facilities;102360

       (f) State and local oversight and regulatory authority;102361

       (g) Fees;102362

       (h) The regulation of construction and demolition debris from 102363
sources inside and outside the state;102364

       (i) The closure process for construction and demolition 102365
debris facilities.102366

       (3) The Committee shall submit a report of its study and any 102367
recommendations that it has developed to the General Assembly not 102368
later than September 30, 2005. The Committee shall cease to exist 102369
on the date on which it submits its report.102370

       The General Assembly shall enact legislation based on the 102371
recommendations of the Committee as soon as is practicable.102372

       Section 514.03. (A) As used in this section:102373

       (1) "Automatic tabulating equipment," "direct recording 102374
electronic voting machine," "marking device," and "voting 102375
machines" have the same meanings as in section 3506.01 of the 102376
Revised Code.102377

       (2) "Help America Vote Act of 2002" means the "Help America 102378
Vote Act of 2002," Pub. L. No. 107-252, 116 Stat. 1666.102379

       (B) A county that is scheduled to acquire voting machines, 102380
marking devices, or automatic tabulating equipment with funds made 102381
available pursuant to the Help America Vote Act of 2002 and that 102382
selects direct recording electronic voting machines as the primary 102383
voting system to be used in the county and not only for 102384
accessibility for individuals with disabilities as required under 102385
the Help America Vote Act of 2002 and section 3506.19 of the 102386
Revised Code, only may acquire direct recording electronic voting 102387
machines with funds made available pursuant to the Help America 102388
Vote Act of 2002 if the county acquires sufficient direct 102389
recording electronic voting machines to meet the minimum number of 102390
direct recording electronic voting machines required to be 102391
established by the Secretary of State under division (C) of this 102392
section.102393

       (C) The Secretary of State shall establish, for each county, 102394
a minimum number of direct recording electronic voting machines 102395
that the county shall be required to acquire to be eligible to 102396
acquire direct recording electronic voting machines as the primary 102397
voting system in the county with funds made available pursuant to 102398
the Help America Vote Act of 2002. The minimum number for each 102399
county shall be calculated as follows:102400

       (1) The total number of registered voters in the county on 102401
January 1, 2005, shall be multiplied by the statewide percentage 102402
of voters who were purged from the official lists of registered 102403
voters during the 2001 calendar year. 102404

       (2) The number resulting from the calculation in division 102405
(C)(1) of this section shall be subtracted from the total number 102406
of registered voters in the county on January 1, 2005. 102407

       (3) The number resulting from the calculation in division 102408
(C)(2) of this section shall be divided by one hundred 102409
seventy-five.102410

       (4) Any fraction resulting from the calculation in division 102411
(C)(3) of this section shall be rounded up to the next whole 102412
number.102413

       Section 515.03. (A) On or before December 31, 2005, a 102414
transportation improvement district and any two or more 102415
governmental agencies may enter into an agreement providing for 102416
the joint financing of any street, highway, interchange, or other 102417
transportation project. Any such agreement shall be approved by 102418
resolution or ordinance passed by the legislative authority of 102419
each of the parties to such agreement, which resolution or 102420
ordinance shall authorize the execution thereof by a designated 102421
official or officials of each of such parties, and such agreement, 102422
when so approved and executed, shall be in full force and effect.102423

       (B)(1) Subject to division (B)(2) of this section, any party 102424
to such an agreement may issue and, notwithstanding any other 102425
provision of the Revised Code, a district may purchase directly 102426
from the party as an investment, securities to evidence the 102427
obligations of that party to the district pursuant to the 102428
agreement for its portion of the cost of the project pursuant to 102429
Chapter 133. or other applicable provisions of the Revised Code.102430

       (2) More than half of the property necessary for any project 102431
undertaken pursuant to an agreement under this section for which a 102432
district is purchasing securities under division (B)(1) of this 102433
section shall be located within the territory of the 102434
transportation improvement district.102435

       (C) Any term used in this section has the same meaning as 102436
defined in section 5540.01 of the Revised Code, as amended by this 102437
act, unless the context clearly requires another meaning.102438

       Section 553.01. (A) As used in this section:102439

        (1) "Qualifying delinquent taxes" means any tax levied under 102440
Chapter 5733., 5739., 5741., 5747., or 5748. of the Revised Code, 102441
including the taxes levied under sections 5733.41 and 5747.41 of 102442
the Revised Code and taxes required to be withheld under Chapters 102443
5747. and 5748. of the Revised Code, which were due and payable 102444
from any person as of May 1, 2005, were unreported or 102445
underreported, and remain unpaid.102446

        (2) "Qualifying delinquent personal property taxes" means a 102447
tax for which a return is filed under section 5711.02 of the 102448
Revised Code.102449

        (3) "Qualifying delinquent taxes" and "qualifying delinquent 102450
personal property taxes" do not include any tax for which a notice 102451
of assessment or audit has been issued, for which a bill has been 102452
issued, which relates to a tax period that ends after the 102453
effective date of this section, or for which an audit has been 102454
conducted or is currently being conducted.102455

        (B) The Tax Commissioner shall establish and administer a tax 102456
amnesty program with respect to qualifying delinquent taxes and 102457
qualifying delinquent personal property taxes. The program shall 102458
commence on January 1, 2006, and shall conclude on February 15, 102459
2006. The Tax Commissioner shall issue forms and instructions and 102460
take other actions necessary to implement the program. The Tax 102461
Commissioner shall publicize the program so as to maximize public 102462
awareness and participation in the program.102463

        (C)(1) During the program, if a person pays the full amount 102464
of qualifying delinquent taxes owed by that person and one-half of 102465
any interest that has accrued as a result of the person failing to 102466
pay those taxes in a timely fashion, the Tax Commissioner shall 102467
waive or abate all applicable penalties and one-half of any 102468
interest that accrued on the qualifying delinquent taxes.102469

        (2) During the program, if a person who owes qualifying 102470
delinquent personal property taxes files a return with the Tax 102471
Commissioner, in the form and manner prescribed by the Tax 102472
Commissioner, listing all taxable property that was required to be 102473
listed on the return required to be filed under section 5711.02 of 102474
the Revised Code, the Tax Commissioner shall issue a preliminary 102475
assessment certificate to the appropriate county auditor. Upon 102476
receiving a preliminary assessment certificate issued by the Tax 102477
Commissioner pursuant to this division, the county auditor shall 102478
compute the amount of qualifying delinquent personal property 102479
taxes owed by the person and shall add to that amount one-half of 102480
the interest prescribed under sections 5711.32 and 5719.041 of the 102481
Revised Code. The county treasurer shall collect the amount of tax 102482
and interest computed by the county auditor under this division by 102483
preparing and mailing a tax bill to the person as prescribed in 102484
section 5711.32 of the Revised Code. If the person pays the full 102485
amount of tax and interest thereon on or before the date shown on 102486
the tax bill all applicable penalties and one-half of any interest 102487
that accrued on the qualifying delinquent personal property taxes 102488
shall be waived.102489

        (3) No payment required under division (G) of section 321.24 102490
of the Revised Code shall be made with respect to any person who 102491
pays qualifying delinquent personal property taxes under division 102492
(C)(2) of this section.102493

        (4) Notwithstanding any contrary provision of the Revised 102494
Code, the Tax Commissioner shall not furnish to the county auditor 102495
any information pertaining to the exemption from taxation under 102496
division (C)(3) of section 5709.01 of the Revised Code insofar as 102497
that information pertains to any person who pays qualifying 102498
delinquent personal property taxes under division (C)(2) of this 102499
section.102500

        (D) The Tax Commissioner may require a person participating 102501
in the program to file returns or reports, including amended 102502
returns and reports, in connection with the person's payment of 102503
qualifying delinquent taxes or qualifying delinquent personal 102504
property taxes.102505

        (E) A person who participates in the program and pays in full 102506
any outstanding qualifying delinquent tax or qualifying delinquent 102507
personal property tax and the interest payable on such tax in 102508
accordance with this section shall not be subject to any criminal 102509
prosecution or any civil action with respect to that tax, and no 102510
assessment shall thereafter be issued against that person with 102511
respect to that tax.102512

        (F) Taxes and interest collected under the program shall be 102513
credited to the General Revenue Fund, except that:102514

        (1) Qualifying delinquent personal property taxes and 102515
interest payable thereon shall be credited to the appropriate 102516
county undivided income tax fund, and the county auditor shall 102517
distribute the amount thereof among the various taxing districts 102518
in the county as if it had been levied, collected, and settled, as 102519
personal property taxes;102520

        (2) Qualifying delinquent taxes levied under section 102521
5739.021, 5739.023, or 5739.026 of the Revised Code shall be 102522
distributed to the appropriate counties and transit authorities in 102523
accordance with section 5739.21 of the Revised Code during the 102524
next distribution required under that section;102525

        (3) Qualifying delinquent taxes levied under section 102526
5741.021, 5741.022, or 5741.023 of the Revised Code shall be 102527
distributed to the appropriate counties and transit authorities in 102528
accordance with section 5741.03 of the Revised Code during the 102529
next distribution required under that section; and102530

        (4) Qualifying delinquent taxes levied under Chapter 5748. of 102531
the Revised Code shall be credited to the school district income 102532
tax fund and then paid to the appropriate school district during 102533
the next payment required under division (D) of section 5747.03 of 102534
the Revised Code.102535

       Section 553.02. Section 553.01 of this act is hereby 102536
repealed, effective February 16, 2006. The repeal of Section 102537
553.01 of this act does not affect, after the effective date of 102538
the repeal, the rights, remedies, or actions authorized under that 102539
section.102540

       Section 553.02.01. Notwithstanding section 5735.142 of the 102541
Revised Code, a city, exempted village, joint vocational, or local 102542
school district or educational service center that failed to file 102543
or failed to file in a timely manner an application for a refund 102544
of that portion of the motor vehicle fuel tax imposed by section 102545
5735.29 of the Revised Code that became effective on July 1, 2003, 102546
as permitted by section 5735.142 of the Revised Code, that the 102547
school district or educational service center paid through the 102548
purchase of motor fuel on or after that date may file such a 102549
refund application with the Tax Commissioner during the sixty-day 102550
period next following the effective date of this section. The Tax 102551
Commissioner shall process a refund application received under 102552
this section in accordance with section 5735.142 of the Revised 102553
Code, treating such an application as if it had been timely filed 102554
with the Tax Commissioner in accordance with that section.102555

       Section 553.02.03.  (A) The amendment by this act of section 102556
5709.07 of the Revised Code first applies with respect to tax year 102557
2005.102558

       (B) Notwithstanding that buildings and lands described in 102559
division (D) of section 5709.07 of the Revised Code, as amended by 102560
this act, may qualify for an exemption from real property taxation 102561
under a provision of another section of the Revised Code that 102562
specifically applies to such buildings and lands, the buildings 102563
and lands are nevertheless entitled to the exemption allowed under 102564
division (A)(4) of section 5709.07 of the Revised Code, as amended 102565
by this act.102566

       Section 553.02.06.  Notwithstanding section 5709.40, 5709.41, 102567
5709.73, or 5709.78 of the Revised Code to the contrary, 102568
exemptions from taxation granted pursuant to an ordinance or 102569
resolution adopted under any of those sections on or after July 1, 102570
2005, and on or before December 31, 2005, shall commence with the 102571
tax year specified in the ordinance or resolution.102572

       Section 557.03.  A credit is hereby allowed against the 102573
additional estate tax imposed by section 5731.18 of the Revised 102574
Code on the estate of a decedent who dies on or after January 1, 102575
2002, but before the effective date of that section as amended by 102576
this act. The credit shall equal that portion of the additional 102577
estate tax imposed by section 5731.18 of the Revised Code that is 102578
over and above the additional estate tax that would have been 102579
imposed if the tax levied by division (A) of that section had been 102580
an amount equal to the maximum credit allowable by section 2011 of 102581
the Internal Revenue Code that was in effect and applicable on the 102582
date of such decedent's death for any taxes paid to any state.102583

       Section 557.04. Notwithstanding division (A)(3) of section 102584
5733.09 or section 5733.98 of the Revised Code, the credit allowed 102585
under section 5733.56 of the Revised Code to telephone companies 102586
for providing programs to aid the communicatively impaired shall 102587
be allowed in tax year 2005 so that there is full recovery of the 102588
tax credit under that section for that tax year.102589

       Section 557.06. (A) As used in this section, "net additional 102590
tax" means, in the case of a wholesale dealer, the net additional 102591
amount of tax resulting from the amendment by this act of section 102592
5743.02 of the Revised Code, less the discount allowed under 102593
section 5743.05 of the Revised Code as a commission for affixing 102594
and canceling stamps or meter impressions, that is due on all 102595
packages of Ohio stamped cigarettes and on all unaffixed Ohio 102596
cigarette tax stamps that the wholesale dealer has on hand as of 102597
the beginning of business on July 1, 2005, and, in the case of a 102598
retail dealer, means the net additional amount of tax resulting 102599
from the amendment by this act of section 5743.02 of the Revised 102600
Code that is due on all packages of Ohio stamped cigarettes and on 102601
all unaffixed Ohio cigarette tax stamps that the retail dealer has 102602
on hand as of the beginning of business on July 1, 2005.102603

        (B) In addition to the return required under section 5743.03 102604
of the Revised Code, each wholesale dealer and each retail dealer 102605
shall make and file a return on forms prescribed by the tax 102606
commissioner showing the net additional tax due and any other 102607
information that the commissioner considers necessary to apply 102608
sections 5743.01 to 5743.20 of the Revised Code in the 102609
administration of the net additional tax. On or before September 102610
30, 2005, each wholesale dealer and each retail dealer shall 102611
deliver the return to the treasurer of state, together with 102612
remittance of the net additional tax shown on the return to be 102613
due. A wholesale dealer or retail dealer may claim a credit equal 102614
to five per cent of the net additional tax shown on the return to 102615
be due if the wholesale dealer or retail dealer delivers the 102616
return required under this section to the treasurer of state on or 102617
before August 15, 2005, together with remittance of the net 102618
additional tax due after allowing for the five per cent credit. 102619
The treasurer of state shall stamp or otherwise mark on the return 102620
the date on which the return and remittance were received by the 102621
treasurer of state and also shall show on the return by stamp or 102622
otherwise the amount of the tax payment remitted with the return. 102623
Upon receipt, the treasurer of state shall immediately transmit 102624
all returns filed under this section to the commissioner.102625

        (C) Any wholesale or retail dealer who fails to file a return 102626
or remit net additional tax as required under this section shall 102627
forfeit and pay into the state treasury a late charge equal to 102628
fifty dollars or ten per cent of the net additional tax due, 102629
whichever is greater. If the net additional tax, or any portion 102630
thereof, whether determined by the commissioner or the wholesale 102631
or retail dealer, is not paid on or before the date prescribed for 102632
payment under this section, interest shall accrue on the unpaid 102633
amount at the rate per annum required by section 5703.47 of the 102634
Revised Code from the date prescribed for payment of the net 102635
additional tax to the date of payment or to the date the 102636
commissioner issues an assessment under section 5743.081 or 102637
5743.082 of the Revised Code, whichever occurs first. Interest 102638
shall be paid and collected in the same manner as the net 102639
additional tax.102640

        (D) Unpaid or unreported net additional taxes, late charges, 102641
and interest may be collected by assessment in the manner 102642
prescribed under sections 5743.081 and 5743.082 of the Revised 102643
Code.102644

        (E) All amounts collected under this section shall be 102645
considered revenue arising from the tax imposed by section 5743.02 102646
of the Revised Code.102647

       Section 557.09. (A) This section applies only to the 102648
semiannual period from July 1, 2005, to December 31, 2005.102649

       Notwithstanding any provision of Chapter 5751. of the Revised 102650
Code as enacted by this act, for purposes of making the first 102651
payment of the tax imposed under that chapter, a tax return for 102652
both calendar year and calendar quarter taxpayers for that 102653
semiannual period shall be filed not later than February 10, 2006. 102654
The tax imposed by this section is a semiannual privilege tax 102655
measured for the semiannual period commencing July 1, 2005, that 102656
is the six-month tax period during which the tax is measured on 102657
receipts during that period. The semiannual tax payment for all 102658
taxpayers for that semiannual period shall be seventy-five dollars 102659
for the first five hundred thousand dollars in taxable gross 102660
receipts during that semiannual period. In addition, a tax is 102661
imposed on all taxable gross receipts for that semiannual period 102662
in excess of five hundred thousand dollars. Such tax shall equal 102663
the product of six-tenths of one mill per dollar (the result of 102664
rounding twenty-three per cent of two and six-tenths mills) times 102665
the remaining amount of taxable gross receipts after subtracting 102666
five hundred thousand dollars in taxable gross receipts.102667

       (B) Only persons excluded pursuant to divisions (E)(2) to 102668
(10) of section 5751.01 of the Revised Code, as enacted by this 102669
act, and persons with less than one hundred fifty thousand dollars 102670
in taxable gross receipts during calendar year 2005 are not 102671
subject to this section.102672

       (C) The tax commissioner shall take the necessary steps to 102673
implement this section and use money in the commercial tax 102674
administrative fund to promote awareness of the tax imposed under 102675
this section and under Chapter 5751. of the Revised Code as 102676
enacted by this act by means of advertising and other reasonable 102677
means.102678

       Section 557.09.03. It is the intent of the General Assembly 102679
that section 5751.033 of the Revised Code, as enacted by this act, 102680
be applied in a manner that is consistent with and identical to 102681
the situsing provisions that apply to the corporation franchise 102682
tax. That section shall be interpreted and applied by the Tax 102683
Commissioner in a manner that is consistent with the body of case 102684
law addressing the situsing of sales for purposes of the sales 102685
factor as determined under Chapter 5733. of the Revised Code, and 102686
in a manner that is consistent with the Tax Commissioner's prior 102687
treatment of the corporation franchise tax sales factor situsing 102688
law for taxpayers under that chapter.102689

       Section 557.09.06. (A) Notwithstanding any provision of 102690
Chapter 5751. of the Revised Code as enacted by this act, "gross 102691
receipts," as defined in section 5751.01 of the Revised Code, 102692
excludes all of the following receipts if they are received prior 102693
to July 1, 2007:102694

       (1) Receipts from the sale of fuel by a refinery to a 102695
terminal that is intended to be used as motor fuel;102696

       (2) Receipts from the sale of motor fuel from a terminal to a 102697
motor fuel dealer, excluding motor fuel that is not subject to 102698
taxation under Chapter 5735. of the Revised Code;102699

       (3) Receipts from the sale of motor fuel upon which the tax 102700
under Chapter 5735. of the Revised Code has been imposed.102701

       For the purposes of this division, "motor fuel," "motor fuel 102702
dealer, and "terminal" have the same meanings as used in section 102703
5735.01 of the Revised Code.102704

       (B) For the purposes of division (A) of this section, the 102705
imposition of tax on motor fuel for the illegal use of that fuel 102706
shall not be considered motor fuel subject to the tax under 102707
Chapter 5735. of the Revised Code.102708

       (C) The Tax Commissioner may promulgate rules to administer 102709
this section, including prescribing the method to determine which 102710
fuel is intended to be used as motor fuel.102711

       Between July 1, 2005, and March 1, 2007, the Tax Commissioner 102712
shall accept recommendations and comments on the taxation of 102713
receipts from the sale or other transfer of motor fuel under 102714
Chapter 5751. of the Revised Code, including from persons required 102715
to report and pay the tax under Chapter 5735. of the Revised Code, 102716
and shall prepare a report summarizing those recommendations and 102717
comments and presenting any recommendations of the Tax 102718
Commissioner. The Tax Commissioner and shall submit the report to 102719
the President of the Senate, the Speaker of the House of 102720
Representatives, and the leader of the minority caucus in each 102721
house on or before March 1, 2007.102722

       Section 557.09.07. Notwithstanding anything in Chapter 5735. 102723
of the Revised Code as amended by this act, the discount or 102724
shrinkage allowance provided for in sections 5735.06 and 5735.141 102725
of the Revised Code for the period July 1, 2005, through June 30, 102726
2007, shall be based on divisions (A) and (B) of this section:102727

       (A) For the discount under section 5735.06 of the Revised 102728
Code:102729

       (1) For July 2005 through June 2006, if the monthly report is 102730
timely filed and the tax is timely paid, 2.5 per cent of the total 102731
number of gallons of motor fuel received by the motor fuel dealer 102732
within the state during the preceding calendar month less the 102733
total number of gallons deducted under divisions (B)(1)(a) and (b) 102734
of section 5735.06 of the Revised Code, less 0.83 per cent of the 102735
total number of gallons of motor fuel that were sold to a retail 102736
dealer during the preceding calendar month.102737

       (2) For July 2006 through June 2007, if the monthly report is 102738
timely filed and the tax is timely paid, 1.95 per cent of the 102739
total number of gallons of motor fuel received by the motor fuel 102740
dealer within the state during the preceding calendar month less 102741
the total number of gallons deducted under divisions (B)(1)(a) and 102742
(b) of section 5735.06 of the Revised Code, less 0.65 per cent of 102743
the total number of gallons of motor fuel that were sold to a 102744
retail dealer during the preceding calendar month.102745

       (B) For the refund provided retail dealers under section 102746
5735.141 of the Revised Code:102747

       (1) For the semiannual periods ending December 31, 2005, and 102748
June 30, 2006, the refund shall be 0.83 per cent of the Ohio motor 102749
fuel taxes paid on fuel purchased during those semiannual periods.102750

       (2) For the semiannual periods ending December 31, 2006, and 102751
June 30, 2007, the refund shall be 0.65 per cent of the Ohio motor 102752
fuel taxes paid on fuel purchased during those semiannual periods.102753

       The Tax Commissioner may adopt rules to administer this 102754
section.102755

       Section 557.09.09. Notwithstanding any provision of Chapter 102756
5751. of the Revised Code as enacted by this act, for purposes of 102757
Chapter 5751. of the Revised Code, "gross receipts" excludes 102758
amounts received from the sale of tangible personal property that 102759
is delivered into or shipped from a qualified foreign trade zone 102760
area that includes a qualified intermodal facility.102761

       As used in this section:102762

        (A) "Qualified foreign trade zone area" means a warehouse or 102763
other place of delivery or shipment that is:102764

        (1) Located within one mile of the nearest boundary of an 102765
international airport; and102766

        (2) Located, in whole or in part, within a foreign trade zone 102767
as defined in division (A)(2) of section 5709.44 of the Revised 102768
Code.102769

        (B) "Qualified intermodal facility" means a transshipment 102770
station that is capable of receiving and shipping freight through 102771
rail transportation, highway transportation, and air 102772
transportation. A transshipment station is "capable of receiving 102773
and shipping freight" after the commencement of the construction 102774
of each of the rail, highway, and air transportation components of 102775
the facility.102776

       Section 557.10. In lieu of the certification and crediting of 102777
money to the Recycling and Litter Prevention Fund in fiscal year 102778
2006 that would be required under section 5733.122 of the Revised 102779
Code if that section were not repealed by this act, the Director 102780
of Budget and Management, during fiscal year 2006, shall transfer 102781
$1,500,000 from the General Revenue Fund to the Recycling and 102782
Litter Prevention Fund according to a schedule to be determined by 102783
the Director.102784

       Section 557.11. For tax years 2007 and thereafter, telephone, 102785
telegraph, and interexchange telecommunications companies, as 102786
defined in section 5727.01 of the Revised Code, shall list taxable 102787
property at the percentage of true value required in Chapter 5711. 102788
of the Revised Code. For purposes of assigning taxable valuation 102789
to each taxing district for those years, the Tax Commissioner 102790
shall continue to use the apportionment provisions of Chapter 102791
5727. of the Revised Code. However, such property shall be listed 102792
by the county auditor and certified to the county treasurer for 102793
collection under the provisions applicable to the general list of 102794
taxable property and not upon the tax list and duplicate of real 102795
and public utility personal property.102796

       Section 557.12. ADJUSTMENT TO LOCAL GOVERNMENT DISTRIBUTIONS102797

       (A) On or before the seventh day of each month of the period 102798
July 2005 through June 2007, the Tax Commissioner shall determine 102799
and certify to the Director of Budget and Management the amount to 102800
be credited, by tax, during that month to the Local Government 102801
Fund, to the Library and Local Government Support Fund, and to the 102802
Local Government Revenue Assistance Fund, respectively, under 102803
divisions (B) to (G) of this section.102804

       (B) Notwithstanding sections 5727.45, 5727.84, 5733.12, 102805
5739.21, 5741.03, and 5747.03 of the Revised Code to the contrary, 102806
for each month in the period July 1, 2005, through June 30, 2007, 102807
from the utility excise, kilowatt-hour, corporation franchise, 102808
sales and use, and personal income taxes collected:102809

       (1) An amount shall first be credited to the Local Government 102810
Fund equal to the amount credited to that fund from that tax 102811
according to the schedule in divisions (C), (D), (E), and (F) of 102812
this section;102813

       (2) An amount shall next be credited to the Local Government 102814
Revenue Assistance Fund equal to the amount credited to that fund 102815
from that tax according to the schedule in divisions (C), (D), 102816
(E), and (F) of this section;102817

       (3) An amount shall next be credited to the Library and Local 102818
Government Support Fund equal to the amount credited to that fund 102819
from that tax according to the schedule in division (G) of this 102820
section.102821

       To the extent the amounts credited under divisions (B) 102822
through (G) of this section exceed the amounts that otherwise 102823
would have been credited under sections 5727.45, 5727.84, 5733.12, 102824
5739.21, 5741.03, and 5747.03 of the Revised Code, the amounts 102825
credited to the general revenue fund shall be reduced. To the 102826
extent the amounts credited under divisions (B) through (G) of 102827
this section are less than the amounts that otherwise would have 102828
been credited under sections 5727.45, 5727.84, 5733.12, 5739.21, 102829
5741.03, and 5747.03 of the Revised Code, the amounts credited to 102830
the general revenue fund shall be increased. After the appropriate 102831
amounts are credited to funds under division (B) of this section, 102832
additional adjustments may be required in June 2006 and June 2007 102833
pursuant to division (I) of this section.102834

       (C) Pursuant to divisions (B)(1) and (2) of this section, the 102835
amounts shall be credited from the corporation franchise, sales 102836
and use, and personal income taxes to each respective fund as 102837
follows:102838

       (1) In July 2005, one hundred per cent of the amount credited 102839
in July 2004; in July 2006, one hundred per cent of the amount 102840
credited in July 2005;102841

       (2) In August 2005, one hundred per cent of the amount 102842
credited in August 2004; in August 2006, one hundred per cent of 102843
the amount credited in August 2005;102844

       (3) In September 2005, one hundred per cent of the amount 102845
credited in September 2004; in September 2006, one hundred per 102846
cent of the amount credited in September 2005;102847

       (4) In October 2005, one hundred per cent of the amount 102848
credited in October 2004; in October 2006, one hundred per cent of 102849
the amount credited in October 2005;102850

       (5) In November 2005, one hundred per cent of the amount 102851
credited in November 2004; in November 2006, one hundred per cent 102852
of the amount credited in November 2005;102853

       (6) In December 2005, one hundred per cent of the amount 102854
credited in December 2004; in December 2006, one hundred per cent 102855
of the amount credited in December 2005;102856

       (7) In January 2006, one hundred per cent of the amount 102857
credited in January 2005; in January 2007, one hundred per cent of 102858
the amount credited in January 2006;102859

       (8) In February 2006, one hundred per cent of the amount 102860
credited in February 2005; in February 2007, one hundred per cent 102861
of the amount credited in February 2006;102862

       (9) In March 2006, one hundred per cent of the amount 102863
credited in March 2005; in March 2007, one hundred per cent of the 102864
amount credited in March 2006;102865

       (10) In April 2006, one hundred per cent of the amount 102866
credited in April 2005; in April 2007, one hundred per cent of the 102867
amount credited in April 2006;102868

       (11) In May 2006, one hundred per cent of the amount credited 102869
in May 2005; in May 2007, one hundred per cent of the amount 102870
credited in May 2006;102871

       (12) In June 2006, one hundred per cent of the amount 102872
credited in June 2005; in June 2007, one hundred per cent of the 102873
amount credited in June 2006.102874

       (D) Pursuant to divisions (B)(1) and (2) of this section, 102875
from the public utility excise tax, amounts shall be credited to 102876
the Local Government Fund and the Local Government Revenue 102877
Assistance Fund as follows:102878

       (1) In July 2005 and July 2006, no amount shall be credited 102879
to the Local Government Fund and no amount shall be credited to 102880
the Local Government Revenue Assistance Fund;102881

       (2) In August 2005 and August 2006, no amount shall be 102882
credited to the Local Government Fund or to the Local Government 102883
Revenue Assistance Fund;102884

       (3) In September 2005 and September 2006, no amount shall be 102885
credited to the Local Government Fund or to the Local Government 102886
Revenue Assistance Fund;102887

       (4) In October 2005 and October 2006, thirty per cent of 102888
$7,870,426.16 shall be credited to the Local Government Fund and 102889
thirty per cent of $1,124,346.59 shall be credited to the Local 102890
Government Revenue Assistance Fund;102891

       (5) In November 2005 and November 2006, thirty per cent of 102892
$1,045,731.11 shall be credited to the Local Government Fund and 102893
thirty per cent of $149,390.15 shall be credited to the Local 102894
Government Revenue Assistance Fund;102895

       (6) In December 2005 and December 2006, thirty per cent of 102896
$1,210,041.67 shall be credited to the Local Government Fund and 102897
thirty per cent of $172,863.13 shall be credited to the Local 102898
Government Revenue Assistance Fund;102899

       (7) In January 2006 and January 2007, no amount shall be 102900
credited to the Local Government Fund or to the Local Government 102901
Revenue Assistance Fund;102902

       (8) In February 2006 and February 2007, thirty per cent of 102903
$1,515,069.22 shall be credited to the Local Government Fund and 102904
thirty per cent of $216,438.43 shall be credited to the Local 102905
Government Revenue Assistance Fund;102906

       (9) In March 2006 and March 2007, thirty per cent of 102907
$7,859,958.57 shall be credited to the Local Government Fund and 102908
thirty per cent of $1,122,851.24 shall be credited to the Local 102909
Government Revenue Assistance Fund;102910

       (10) In April 2006 and April 2007, no amount shall be 102911
credited to the Local Government Fund or to the Local Government 102912
Revenue Assistance Fund;102913

       (11) In May 2006 and May 2007, thirty per cent of 102914
$3,300,718.22 shall be credited to the Local Government Fund and 102915
thirty per cent of $471,531.17 shall be credited to the Local 102916
Government Revenue Assistance Fund;102917

       (12) In June 2006 and June 2007, thirty per cent of 102918
$9,344,500.89 shall be credited to the Local Government Fund and 102919
thirty per cent of $1,334,928.70 shall be credited to the Local 102920
Government Revenue Assistance Fund.102921

       (E) Pursuant to divisions (B)(1) and (2) of this section, 102922
from the kilowatt-hour tax, amounts shall be credited to the Local 102923
Government Fund and the Local Government Revenue Assistance Fund 102924
as follows:102925

       (1) In July 2005 and July 2006, no amount shall be credited 102926
to the Local Government Fund and no amount shall be credited to 102927
the Local Government Revenue Assistance Fund;102928

       (2) In August 2005 and August 2006, no amount shall be 102929
credited to the Local Government Fund or to the Local Government 102930
Revenue Assistance Fund;102931

       (3) In September 2005, and September 2006, no amount shall be 102932
credited to the Local Government Fund or to the Local Government 102933
Revenue Assistance Fund;102934

       (4) In October 2005 and October 2006, seventy per cent of 102935
$7,870,426.16 shall be credited to the Local Government Fund and 102936
seventy per cent of $1,124,346.59 shall be credited to the Local 102937
Government Revenue Assistance Fund;102938

       (5) In November 2005 and November 2006, seventy per cent of 102939
$1,045,731.11 shall be credited to the Local Government Fund and 102940
seventy per cent of $149,390.15 shall be credited to the Local 102941
Government Revenue Assistance Fund;102942

       (6) In December 2005 and December 2006, seventy per cent of 102943
$1,210,041.67 shall be credited to the Local Government Fund and 102944
seventy per cent of $172,863.13 shall be credited to the Local 102945
Government Revenue Assistance Fund;102946

       (7) In January 2006 and January 2007, no amount shall be 102947
credited to the Local Government Fund or to the Local Government 102948
Revenue Assistance Fund;102949

       (8) In February 2006 and February 2007, seventy per cent of 102950
$1,515,069.22 shall be credited to the Local Government Fund and 102951
seventy per cent of $216,438.43 shall be credited to the Local 102952
Government Revenue Assistance Fund;102953

       (9) In March 2006 and March 2007, seventy per cent of 102954
$7,859,958.57 shall be credited to the Local Government Fund and 102955
seventy per cent of $1,122,851.24 shall be credited to the Local 102956
Government Revenue Assistance Fund;102957

       (10) In April 2006 and April 2007, no amount shall be 102958
credited to the Local Government Fund or to the Local Government 102959
Revenue Assistance Fund;102960

       (11) In May 2006 and May 2007, seventy per cent of 102961
$3,300,718.22 shall be credited to the Local Government Fund and 102962
seventy per cent of $471,531.17 shall be credited to the Local 102963
Government Revenue Assistance Fund;102964

       (12) In June 2006 and June 2007, seventy per cent of 102965
$9,344,500.89 shall be credited to the Local Government Fund and 102966
seventy per cent of $1,334,928.70 shall be credited to the Local 102967
Government Revenue Assistance Fund.102968

       (F) Notwithstanding the amounts required to be credited 102969
pursuant to division (C) of this section, the amount credited in 102970
June 2006 and June 2007 to the Local Government Fund and the Local 102971
Government Revenue Assistance Fund from the personal income tax 102972
shall be net of a reduction that may be required by division (I) 102973
of this section.102974

       (G) Pursuant to division (B)(3) of this section, amounts 102975
shall be credited from the personal income tax to the Library and 102976
Local Government Support Fund as follows:102977

       (1) In July 2005, one hundred per cent of the amount credited 102978
in July 2004; in July 2006, one hundred per cent of the amount 102979
credited in July 2005;102980

       (2) In August 2005, one hundred per cent of the amount 102981
credited in August 2004; in August 2006, one hundred per cent of 102982
the amount credited in August 2005;102983

       (3) In September 2005, one hundred per cent of the amount 102984
credited in September 2004; in September 2006, one hundred per 102985
cent of the amount credited in September 2005;102986

       (4) In October 2005, one hundred per cent of the amount 102987
credited in October 2004; in October 2006, one hundred per cent of 102988
the amount credited in October 2005;102989

       (5) In November 2005, one hundred per cent of the amount 102990
credited in November 2004; in November 2006, one hundred per cent 102991
of the amount credited in November 2005;102992

       (6) In December 2005, one hundred per cent of the amount 102993
credited in December 2004; in December 2006, one hundred per cent 102994
of the amount credited in December 2005;102995

       (7) In January 2006, one hundred per cent of the amount 102996
credited in January 2005; in January 2007, one hundred per cent of 102997
the amount credited in January 2006;102998

       (8) In February 2006, one hundred per cent of the amount 102999
credited in February 2005; in February 2007, one hundred per cent 103000
of the amount credited in February 2006;103001

       (9) In March 2006, one hundred per cent of the amount 103002
credited in March 2005; in March 2007, one hundred per cent of the 103003
amount credited in March 2006;103004

       (10) In April 2006, one hundred per cent of the amount 103005
credited in April 2005; in April 2007, one hundred per cent of the 103006
amount credited in April 2006;103007

       (11) In May 2006, one hundred per cent of the amount credited 103008
in May 2005; in May 2007, one hundred per cent of the amount 103009
credited in May 2006;103010

       (12) In June 2006, one hundred per cent of the amount 103011
credited in June 2005, less any reduction that may be required by 103012
division (I) of this section; in June 2007, one hundred per cent 103013
of the amount credited in June 2006, less any reduction that may 103014
be required by division (I) of this section.103015

       (H) The total amount credited to the Local Government Fund, 103016
the Local Government Revenue Assistance Fund, and the Library and 103017
Local Government Support Fund in each month during the period July 103018
2005 through June 2007 shall be distributed by the tenth day of 103019
the immediately succeeding month in the following manner:103020

       (1) Each county undivided local government fund shall receive 103021
a distribution from the Local Government Fund based on its 103022
proportionate share of the total amount received from the fund in 103023
such respective month for the period August 1, 2004, through July 103024
31, 2005.103025

       (2) Each municipal corporation receiving a direct 103026
distribution from the Local Government Fund shall receive a 103027
distribution based on its proportionate share of the total amount 103028
received from the fund in such respective month for the period 103029
August 1, 2004, through July 31, 2005.103030

       (3) Each county undivided local government revenue assistance 103031
fund shall receive a distribution from the Local Government 103032
Revenue Assistance Fund based on its proportionate share of the 103033
total amount received from the fund in such respective month for 103034
the period August 1, 2004, through July 31, 2005.103035

       (4) Each county undivided library and local government 103036
support fund shall receive a distribution from the Library and 103037
Local Government Support Fund based on its proportionate share of 103038
the total amount received from the fund in such respective month 103039
for the period August 1, 2004, through July 31, 2005.103040

       (I) The Tax Commissioner shall do each of the following:103041

       (1) By June 7, 2006, the Commissioner shall subtract the 103042
amount calculated in division (I)(1)(b) of this section from the 103043
amount calculated in division (I)(1)(a) of this section. If the 103044
amount in division (I)(1)(a) of this section is greater than the 103045
amount in division (I)(1)(b) of this section, then such difference 103046
shall be subtracted from the total amount of income tax revenue 103047
credited to the Local Government Fund, the Local Government 103048
Revenue Assistance Fund, and the Library and Local Government 103049
Support Fund in June 2006. An amount shall be subtracted from 103050
income tax revenue credited to the Local Government Fund, the 103051
Local Government Revenue Assistance Fund, or the Library and Local 103052
Government Support Fund only if, and according to the proportion 103053
by which, such fund contributed to the result that the amount in 103054
division (I)(1)(a) of this section exceeds the amount in division 103055
(I)(1)(b) of this section.103056

       (a) The sum of all money credited to the Local Government 103057
Fund, the Local Government Revenue Assistance Fund, and the 103058
Library and Local Government Support Fund from July 2005 through 103059
May 2006. The sum computed in division (I)(1)(a) of this section 103060
shall exclude any dealer in intangibles tax revenues credited to 103061
the Local Government Fund.103062

       (b) The sum of all money that would have been credited to the 103063
Local Government Fund, the Local Government Revenue Assistance 103064
Fund, and the Library and Local Government Support Fund from July 103065
2005 through May 2006, if sections 5727.45, 5727.84, 5733.12, 103066
5739.21, 5741.03, and 5747.03 of the Revised Code were in effect 103067
during this period.103068

       (2) By June 7, 2007, the Commissioner shall subtract the 103069
amount calculated in division (I)(2)(b) of this section from the 103070
amount calculated in division (I)(2)(a) of this section. If the 103071
amount in division (I)(2)(a) of this section is greater than the 103072
amount in division (I)(2)(b) of this section, then such difference 103073
shall be subtracted from the total amount of income tax revenue 103074
credited to the Local Government Fund, the Local Government 103075
Revenue Assistance Fund, and the Library and Local Government 103076
Support Fund in June 2007. An amount shall be subtracted from 103077
income tax revenue credited to the Local Government Fund, the 103078
Local Government Revenue Assistance Fund, or the Library and Local 103079
Government Support Fund only if, and according to the proportion 103080
by which, such fund contributed to the result that the amount in 103081
division (I)(2)(a) of this section exceeds the amount in division 103082
(I)(2)(b) of this section.103083

       (a) The sum of all money credited to the Local Government 103084
Fund, the Local Government Revenue Assistance Fund, and the 103085
Library and Local Government Support Fund from June 2006 through 103086
May 2007. The sum computed in division (I)(2)(a) of this section 103087
shall exclude any dealer in intangibles tax revenues credited to 103088
the Local Government Fund and shall be prior to any reduction 103089
required by division (I)(1) of this section.103090

       (b) The sum of all money that would have been credited to the 103091
Local Government Fund, the Local Government Revenue Assistance 103092
Fund, and the Library and Local Government Support Fund from June 103093
2006 through May 2007, if sections 5727.45, 5727.84, 5733.12, 103094
5739.21, 5741.03, and 5747.03 of the Revised Code were in effect 103095
during this period.103096

       (3) On the advice of the Tax Commissioner, during any month 103097
other than June 2006 or June 2007 of the period July 1, 2005, 103098
through July 31, 2007, the Director of Budget and Management may 103099
reduce the amounts that are to be otherwise credited to the Local 103100
Government Fund, Local Government Revenue Assistance Fund, or 103101
Library and Local Government Support Fund in order to accomplish 103102
more effectively the purposes of the adjustments in divisions 103103
(I)(1) and (2) of this section. If the respective calculations 103104
made in June 2006 and June 2007 pursuant to divisions (I)(1) and 103105
(2) of this section indicate that excess reductions had been made 103106
during the previous months, such excess amounts shall be credited, 103107
as appropriate, to the Local Government Fund, Local Government 103108
Revenue Assistance Fund, and Library and Local Government Support 103109
Fund.103110

       (J) For the 2005, 2006, and 2007 distribution years, the Tax 103111
Commissioner is not required to issue the certifications otherwise 103112
required by sections 5747.47, 5747.501, 5747.51, and 5747.61 of 103113
the Revised Code, but shall provide to each county auditor by the 103114
twentieth day of July 2005, July 2006, and July 2007 an estimate 103115
of the amounts to be received by the county in the ensuing year 103116
from the Local Government Fund, Local Government Revenue 103117
Assistance Fund, and Library and Local Government Support Fund 103118
pursuant to this section and any pertinent section of the Revised 103119
Code. At the discretion of the Tax Commissioner, the Tax 103120
Commissioner may report to each county auditor additional revised 103121
estimates of the 2005, 2006, or 2007 distributions at any time 103122
during the period July 1, 2005, through July 31, 2007.103123

       (K) During the period July 1, 2005, through July 31, 2007, 103124
the Director of Budget and Management shall issue such directives 103125
to state agencies that are necessary to ensure that the 103126
appropriate amounts are distributed to the Local Government Fund, 103127
to the Local Government Revenue Assistance Fund, and to the 103128
Library and Local Government Support Fund.103129

       (L) No subdivision shall receive a proportionate share from 103130
the county undivided local government fund or county undivided 103131
local government revenue assistance fund during the period July 1, 103132
2005, through June 30, 2007, that is less than the proportionate 103133
share the subdivision received from that fund during the period 103134
July 1, 2004, through June 30, 2005, unless the subdivision 103135
consents to receive the lesser proportionate share.103136

       Section 557.12.01. (A) Each county and each city with a 103137
population of one hundred thousand or more persons shall submit to 103138
the Auditor of State a report on or before October 1, 2005, that 103139
describes efforts on the part of the county or city to reduce 103140
costs by consolidating services and engaging in regional 103141
cooperation, specifies cost savings resulting from consolidation 103142
of services and regional cooperation, and describes the county's 103143
or city's future plans with respect to consolidating services and 103144
engaging in regional cooperation as described in division (B) of 103145
this section.103146

       (B) The report described in division (A) of this section 103147
shall describe future plans with respect to consolidating 103148
services, including, but not limited to, consolidating fire, law 103149
enforcement, water, sewer, and solid waste services provided by 103150
the county or city. The report shall describe any efforts already 103151
undertaken by the county or city to analyze how these future 103152
consolidation efforts would impact costs and affect existing 103153
collective bargaining agreements. If no such analyses have been 103154
undertaken at the time the report is filed, the report shall set 103155
forth a timeline for completing the analyses. 103156

       The report also shall describe future plans with respect to 103157
cooperating with one or more neighboring political subdivisions in 103158
the financing of operations that serve all of the subdivisions. 103159
The report shall describe the county's or city's future plans, if 103160
any, to cooperate with other political subdivisions in the 103161
consolidation of purchasing or construction functions. 103162

        (C) The report described in division (A) of this section 103163
shall be used by the Auditor of State for informational purposes 103164
only. The Auditor of State shall have no authority to approve or 103165
disapprove any plan described in a report.103166

       Section 557.13.03. The Tax Commissioner shall review the 103167
calculations of the multipliers used in the determination of oil 103168
and gas valuations, in light of the amendment by this act to 103169
section 5715.01 of the Revised Code, and the enactment by this act 103170
of section 5709.112 of the Revised Code. The review shall be 103171
conducted in sufficient time to be used in the Commissioner's 103172
annual entry adopting the multipliers for tax year 2006, to ensure 103173
that oil and gas properties are uniformly assessed as provided by 103174
law and this act.103175

       Section 557.13.06. Prior to adopting the rule defining 103176
"primarily," as required by division (B)(2) of section 5725.01 of 103177
the Revised Code, the Tax Commissioner shall seek the input of 103178
current dealers in intangibles.103179

       Section 557.13.09. (A) There is hereby created the Joint 103180
Legislative Tax Reform Impact Study Committee. The Committee shall 103181
consist of the following members of the General Assembly: the 103182
chairperson of the Senate's standing committee with primary 103183
responsibility for tax legislation, the chairperson of the House 103184
of Representatives' standing committee with primary responsibility 103185
for tax legislation, four members of the House of Representatives 103186
appointed by the Speaker of the House of Representatives, and four 103187
members of the Senate appointed by the President of the Senate. 103188
Not more than two members appointed by the Speaker and not more 103189
than two members appointed by the President may be of the same 103190
political party. The appointments shall be made not later than 103191
July 31, 2005. The chairpersons of the standing committees with 103192
primary responsibility for tax legislation shall serve as 103193
co-chairpersons of the Committee. The Department of Taxation shall 103194
cooperate with the Committee and, on request, shall provide any 103195
information and assistance that is required by the Committee to 103196
carry out its duties.103197

        (B) The Committee shall study the effects on school districts 103198
and other local taxing units of phasing-out the tangible personal 103199
property tax under this act, and any other matter related to that 103200
phase-out that it considers of significance. As part of the study, 103201
the Committee shall do all of the following:103202

        (1) Estimate the total taxes lost by school districts and 103203
local taxing units as a result of the phase-out;103204

        (2) Estimate the capacity of the commercial activity tax 103205
levied under Chapter 5751. of the Revised Code, as enacted by this 103206
act, to replace lost tangible personal property tax revenues and 103207
to fund the General Revenue Fund;103208

        (3) Estimate the cost for delivery of services by school 103209
districts and other local taxing units and the emerging service 103210
demands for those services arising from demographic and economic 103211
changes to the districts and units;103212

        (4) Identify alternatives for effectively balancing state and 103213
local tax revenues available to school districts and other taxing 103214
units and their responsibilities for delivery of services;103215

        (5) Examine how the commercial activity tax treats for-profit 103216
corporations as compared to nonprofit corporations;103217

        (6) Review the impact of the commercial activity tax on the 103218
various business sectors;103219

       (7) Estimate the revenue impact of reclassifying rental real 103220
property having more than three units as residential/agricultural 103221
real property instead of as nonresidential/agricultural real 103222
property under section 5713.041 of the Revised Code.103223

        (C) At the call of the co-chairpersons, the Committee shall 103224
hold not less than four meetings. The co-chairpersons shall 103225
determine the time, place, and agenda for each meeting of the 103226
Committee. Not later than January 31, 2006, the Committee shall 103227
issue a report of its findings and shall make recommendations to 103228
the President of the Senate and the Speaker of the House of 103229
Representatives, at which time the Committee shall cease to exist.103230

       Section 557.15. The amendment by this act of sections 319.302 103231
and 323.152 of the Revised Code first applies in tax year 2005.103232

       Section 557.17. The amendments to sections 5709.40, 5709.73, 103233
5709.77, and 5709.78 of the Revised Code by this act do not apply, 103234
but those sections as they were in effect prior January 1, 2006, 103235
do apply, to any project, as defined in section 5709.40 of the 103236
Revised Code, if the project meets either of the following 103237
requirements:103238

       (A) A project agreement has been completed on or before 103239
December 31, 2005, for the project.103240

       (B) Bonds have been issued on or before December 31, 2005, 103241
for the project.103242

       Section 557.19. Sections 5713.01 and 5727.12 of the Revised 103243
Code, as amended by this act, first apply to tax year 2006.103244

       Section 557.24. The amendment by this act of sections 103245
5731.01, 5731.05, 5731.131, 5731.14, 5731.18, and 5731.181 of the 103246
Revised Code, and the repeal by this act of section 5731.20 of the 103247
Revised Code, applies to estates of decedents dying on or after 103248
the effective date of those sections as amended by this act.103249

       Section 557.27. The amendment by this act of section 5733.40 103250
of the Revised Code applies to taxable years ending on or after 103251
the effective date of this act.103252

       Section 557.30. Except as otherwise provided in division 103253
(A)(18) of section 5747.01 and division (A) of section 5747.02 of 103254
the Revised Code, the amendment by this act of sections 5747.01 103255
and 5747.02 of the Revised Code applies to taxable years ending on 103256
or after the effective date of this section.103257

       Section 557.33. The amendment by this act of section 5747.05 103258
of the Revised Code applies to taxable years ending on or after 103259
the effective date of this section.103260

       Section 559.03. (A) Sections 9.23, 9.231, 9.232, 9.233, 103261
9.234, 9.235, 9.236, 9.237, 9.238, and 9.239 of the Revised Code, 103262
as enacted by this act, apply only to disbursements of money that 103263
occur on or after January 1, 2006.103264

       (B) Section 9.241 of the Revised Code, as enacted by this 103265
act, applies only to contracts that are entered into or awarded on 103266
or after the effective date of that section.103267

       Section 560.03. There is hereby created the Ohio Military 103268
Reserve Homeland Security Study Commission to evaluate the role 103269
and effectiveness of the Ohio Military Reserve. The Commission 103270
shall consist of seven members: the Chairperson of the House 103271
Commerce and Labor Committee, who shall serve as chairperson of 103272
the Commission, two members of the House of Representatives whom 103273
the Speaker of the House of Representatives shall appoint, two 103274
members of the Senate whom the President of the Senate shall 103275
appoint, the Adjutant General or a representative the Adjutant 103276
General designates, and the Director of Public Safety or a 103277
representative the Director designates. The chairperson shall call 103278
the meetings of the Commission. The Commission shall report its 103279
findings to the General Assembly before January 1, 2006.103280

       Section 563.03. It is the intention of the General Assembly 103281
that the amendments made by this act to sections 3319.081 and 103282
3319.17 of the Revised Code, and the enactment by this act of 103283
section 3319.172 of the Revised Code, shall not affect collective 103284
bargaining agreements between public employers and public 103285
employees entered into prior to the effective date of this 103286
section.103287

       Section 569.03. (A) As used in this section, "appointing 103288
authority" has the same meaning as in section 124.01 of the 103289
Revised Code, and "exempt employee" has the same meaning as in 103290
section 124.152 of the Revised Code.103291

        (B) Notwithstanding section 124.181 of the Revised Code both 103292
of the following apply:103293

        (1) In cases where no vacancy exists, an appointing authority 103294
may, with the written consent of an exempt employee, assign duties 103295
of a higher classification for a period of time not to exceed two 103296
years to that exempt employee, and that exempt employee shall 103297
receive compensation at a rate commensurate with the duties of the 103298
higher classification.103299

        (2) If necessary, employees exempt from collective bargaining 103300
who are assigned to duties within their agency to maintain 103301
operations during the Ohio Administrative Knowledge System (OAKS) 103302
implementation may agree to a temporary assignment that exceeds 103303
the two-year limit.103304

       Section 569.06.  (A) As used in this section, "exempt 103305
employee" has the same meaning as in section 124.152 of the 103306
Revised Code.103307

        (B) Notwithstanding any provision to the contrary in Chapter 103308
124. of the Revised Code, for the period beginning on July 1, 103309
2005, and ending on June 30, 2007, the Director of Job and Family 103310
Services shall have the authority to do the following:103311

        (1) Establish, change, and abolish positions of employment in 103312
the Department of Job and Family Services that are in the 103313
classified civil service;103314

        (2) Assign, reassign, classify, reclassify, transfer, reduce, 103315
promote, and demote exempt employees of the Department who are in 103316
the classified civil service, including, but not limited to, 103317
assigning or reassigning an employee to a bargaining unit 103318
classification if the Director determines that the classification 103319
is the proper classification for that employee.103320

        (C) All actions taken by the Director under division (B) of 103321
this section relative to exempt employees of the Department who 103322
are in the classified civil service and are subject to section 103323
900.603 of Title 5 of the Code of Federal Regulations, 5 C.F.R. 103324
900.603, as amended, shall be consistent with the requirements of 103325
that section.103326

        (D) If an exempt employee of the Department who is in the 103327
classified civil service and paid in accordance with salary 103328
schedule E-1 of section 124.152 of the Revised Code is to be 103329
assigned, reassigned, classified, reclassified, transferred, 103330
reduced, or demoted to a position in a lower job classification by 103331
the Director under division (B) of this section, the Director, or 103332
in the case of a transfer of the employee outside the Department, 103333
the Director of Administrative Services, shall assign the employee 103334
to the appropriate job classification and place the exempt 103335
employee in pay step X. The employee shall not receive an increase 103336
in compensation until the maximum rate of pay for that 103337
classification exceeds the employee's compensation.103338

        (E) Actions taken by the Director under division (B) of this 103339
section shall not be subject to appeal to the State Personnel 103340
Board of Review.103341

       Section 569.12. As used in this section, "municipal public 103342
safety director" has the same meaning as in section 145.01 of the 103343
Revised Code, as amended by this act.103344

        Not later than November 1, 2005, each municipal public safety 103345
director who is a member of the Public Employees Retirement System 103346
shall indicate to the retirement system, on a form supplied by the 103347
retirement system, a choice of whether to receive benefits under 103348
division (A) of section 145.33 of the Revised Code or under 103349
division (B) of that section.103350

       Section 606.03. If any item of law that constitutes the whole 103351
or part of a codified or uncodified section of law contained in 103352
this act, or if any application of any item of law that 103353
constitutes the whole or part of a codified or uncodified section 103354
of law contained in this act, is held invalid, the invalidity does 103355
not affect other items of law or applications of items of law that 103356
can be given effect without the invalid item of law or 103357
application. To this end, the items of law of which the codified 103358
and uncodified sections contained in this act are composed, and 103359
their applications, are independent and severable.103360

       Section 609.03. An item of law, other than an amending, 103361
enacting, or repealing clause, that composes the whole or part of 103362
an uncodified section contained in this act has no effect after 103363
June 30, 2007, unless its context clearly indicates otherwise.103364

       Section 611.03. DELAYED IMPLEMENTATION OF CENTRALIZED PUBLIC 103365
SCHOOL EMPLOYEES' HEALTH CARE BENEFITS SYSTEM103366

       Notwithstanding the amendments made to sections 9.833, 9.90, 103367
3311.19, 3313.12, 3313.202, 3313.33, 4117.03, and 4117.08 of the 103368
Revised Code by this act and the enactment of section 9.901 of the 103369
Revised Code by this act, the following amendments to a section or 103370
enactment of provisions shall not take effect unless and until the 103371
General Assembly, by subsequent enactment of law, confirms those 103372
amendments and provisions, orders their implementation, and makes 103373
such other specifications pertaining to that implementation as is 103374
then necessary:103375

       (A) All amendments to sections 9.833, 9.90, 3311.19, 3313.12, 103376
3313.202, 3313.33, 4117.03, and 4117.08 of the Revised Code.103377

       (B) The following provisions of section 9.901 of the Revised 103378
Code as enacted:103379

       (1) Division (A)(1);103380

       (2) The provision that authorizes the soliciting of bids in 103381
division (A)(3);103382

       (3) Division (F), except for the provision that creates the 103383
school employees health care fund in the state treasury;103384

       (4) Division (I)(1);103385

       (5) Division (I)(5);103386

       (6) Division (J), except for the provision that authorizes 103387
the School Employees Health Care Board to contract with the 103388
Department of Administrative Services for central services and 103389
reimburse the Department for such services;103390

       (7) Division (K);103391

       (8) Division (L); and103392

       (9) Division (M).103393

       (C) The provision in Section 203.12.02 of this act that 103394
extends the duties of the executive director and assistant to the 103395
School Employees Health Care Board to the Public School Employee 103396
Health Insurance Program being proposed for establishment and the 103397
provision requiring the reimbursement of the General Revenue Fund 103398
of $2,700,000 by the School Employees Health Care Fund pending a 103399
future determination of the sufficiency of premium payments.103400

       Section 612.03. Except as otherwise specifically provided in 103401
this act, the codified sections of law amended or enacted in this 103402
act, and the items of law of which the codified sections of law 103403
amended or enacted in this act are composed, are subject to the 103404
referendum. Therefore, under Ohio Constitution, Article II, 103405
Section 1c and section 1.471 of the Revised Code, the codified 103406
sections of law amended or enacted by this act, and the items of 103407
law of which the codified sections of law as amended or enacted by 103408
this act are composed, take effect on the ninety-first day after 103409
this act is filed with the Secretary of State. If, however, a 103410
referendum petition is filed against any such codified section of 103411
law as amended or enacted by this act, or against any item of law 103412
of which any such codified section of law as amended or enacted by 103413
this act is composed, the codified section of law as amended or 103414
enacted, or item of law, unless rejected at the referendum, takes 103415
effect at the earliest time permitted by law.103416

       Section 612.06. Except as otherwise specifically provided in 103417
this act, the repeal by this act of a codified section of law is 103418
subject to the referendum. Therefore, under Ohio Constitution, 103419
Article II, Section 1c and section 1.471 of the Revised Code, the 103420
repeal by this act of a codified section of law takes effect on 103421
the ninety-first day after this act is filed with the Secretary of 103422
State. If, however, a referendum petition is filed against any 103423
such repeal, the repeal, unless rejected at the referendum, takes 103424
effect at the earliest time permitted by law.103425

       Section 612.09. The sections of law amended, enacted, or 103426
repealed by this act that are listed in this section are subject 103427
to the referendum. Therefore, under Ohio Constitution, Article II, 103428
Section 1c and section 1.471 of the Revised Code, the sections, 103429
and the items of law of which they are composed, take effect as 103430
specified in this section. If, however, a referendum petition is 103431
filed against any such section as amended, enacted, or repealed, 103432
or against any item of law of which any such section as amended or 103433
enacted is composed, the section as amended, enacted, or repealed 103434
goes into effect at the earliest time permitted by law that is on 103435
or after the effective date specified in this section.103436

       Sections 9.24, 120.52, 120.53, 131.23, 317.08, 317.36, 103437
323.01, 329.051, 340.03, 340.16, 1901.26, 1907.24, 2303.201, 103438
2305.234, 2744.05, 3111.04, 3119.54, 3121.12, 3121.50, 3702.74, 103439
4123.27, 4705.09, 4731.65, 4731.71, 4736.11, 5101.181, 5101.241, 103440
5101.26, 5101.31, 5101.36, 5107.26, 5110.01, 5110.05, 5111.021 103441
(5111.022), 5111.022 (5111.023), 5111.023 (5111.0115), 5111.025, 103442
5111.062, 5111.10, 5111.85, 5111.851, 5111.852, 5111.853, 103443
5111.854, 5111.855, 5111.856, 5111.89, 5111.891, 5111.892, 103444
5111.893, 5111.914, 5111.97 (5111.86), 5112.03, 5112.08, 5112.17, 103445
5115.10, 5115.11, 5115.12, 5115.13, 5115.14, 5115.20, 5115.22, 103446
5115.23, and 5119.61 of the Revised Code take effect October 1, 103447
2005.103448

       Sections 1711.531, 4753.03, 4753.06, 4753.071, 4753.08, 103449
4753.09, 5107.05, 5107.30, 5107.301, 5121.01 (5121.02), 5121.02 103450
(5121.03), 5121.03 (5121.01), 5121.04, 5121.05, 5121.06, 5121.061, 103451
5121.07, 5121.08, 5121.09, 5121.10, 5121.11, 5121.12, 5121.21, 103452
5121.30, 5121.31, 5121.32, 5121.33, 5121.34, 5121.35, 5121.36, 103453
5121.37, 5121.38, 5121.40, 5121.41, 5121.42, 5121.43, 5121.44, 103454
5121.45, 5121.46, 5121.47, 5121.48, 5121.49, 5121.50, 5121.51, 103455
5121.52, 5121.53, 5121.54, 5121.55, 5121.56, 5122.03, 5122.31, and 103456
5123.701 of the Revised Code take effect January 1, 2006.103457

       Sections 3301.0710 and 3301.0714 of the Revised Code take 103458
effect July 1, 2006.103459

       Section 612.12. Sections 101.391, 108.05, 109.57, 109.91, 103460
121.37, 121.38, 121.381, 121.382, 122.011, 122.083, 123.17, 103461
125.11, 125.60, 125.601, 125.602, 125.603, 125.604, 125.605, 103462
125.606, 125.607, 125.608, 125.609, 125.6010, 125.6011, 125.6012, 103463
125.831, 125.832, 126.25, 131.02, 133.09, 141.011, 141.04, 147.05, 103464
147.10, 147.11, 147.12, 147.371, 149.30, 181.251 (5502.63), 181.51 103465
(5502.61), 181.52 (5502.62), 181.54 (5502.64), 181.55 (5502.65), 103466
181.56 (5502.66), 307.86, 339.72, 339.88, 731.14, 731.141, 742.59, 103467
901.43, 901.44, 905.32, 905.33, 905.331, 905.36, 905.37, 905.38, 103468
905.381, 905.50, 905.66, 907.16, 913.02, 913.23, 915.02, 915.16, 103469
915.24, 921.02, 921.16, 923.44, 923.45, 923.46, 926.01, 927.69, 103470
1327.511, 1502.02, 1515.14, 1541.03, 1713.03, 2113.041, 2117.061, 103471
2151.416, 2152.74, 2901.07, 2923.25, 3107.10, 3125.191, 3301.311, 103472
3301.32, 3301.86, 3301.88, 3302.03, 3310.01, 3310.02, 3310.03, 103473
3310.04, 3310.05, 3310.06, 3310.07, 3310.08, 3310.09, 3310.10, 103474
3310.13, 3310.14, 3310.16, 3310.17, 3311.11, 3313.975, 3313.976, 103475
3313.977, 3313.978, 3313.98, 3314.013, 3314.014, 3314.015, 103476
3314.021, 3314.06, 3314.061, 3314.084, 3314.085, 3314.13, 3314.27, 103477
3314.28, 3316.043, 3317.013, 3317.016, 3317.017, 3317.02, 103478
3317.021, 3317.022, 3317.023, 3317.026, 3317.027, 3317.028, 103479
3317.029, 3317.0216, 3317.0217, 3317.03, 3317.031, 3317.035, 103480
3317.05, 3317.052, 3317.053, 3317.063, 3317.07, 3317.081, 3317.10, 103481
3317.16, 3317.20, 3317.201, 3317.21 (3318.47), 3317.22 (3318.48), 103482
3317.23 (3318.49), 3318.33, 3319.06, 3323.091, 3323.14, 3323.16, 103483
3323.19, 3325.11, 3325.12, 3325.16, 3325.17, 3333.28, 3333.36, 103484
3334.02, 3334.19, 3365.01, 3365.02, 3365.04, 3365.041, 3365.05, 103485
3365.08, 3365.11, 3701.073, 3701.146, 3702.141, 3702.68, 3702.83, 103486
3712.03, 3714.073, 3715.04, 3721.011, 3721.03, 3721.032, 3721.07, 103487
3721.121, 3721.15, 3721.21, 3721.541, 3734.57, 3734.901, 103488
3734.9010, 3743.57, 3745.015, 3745.11, 3745.114, 3748.07, 3748.13, 103489
3770.061, 3793.09, 3901.021, 3901.17, 3905.36, 4112.12, 4115.32, 103490
4115.34, 4115.36, 4511.75, 4519.02, 4519.09, 4723.32, 4723.33, 103491
4723.34, 4723.341, 4723.61, 4723.62, 4723.621, 4723.63 (4723.91), 103492
4723.64, 4723.65, 4723.651, 4723.652, 4723.66, 4723.67, 4723.68, 103493
4723.69, 4736.12, 4766.09, 4766.14, 4905.10, 4911.18, 4973.171, 103494
5101.07, 5101.071, 5101.21, 5101.46, 5101.461, 5101.821, 5104.01, 103495
5104.32, 5110.352, 5111.019, 5111.061, 5111.082, 5111.11, 103496
5111.111, 5111.112 (5111.113), 5111.113 (5111.114), 5111.16, 103497
5111.161, 5111.162, 5111.17, 5111.176, 5111.19, 5111.191, 5111.98, 103498
5112.30, 5112.341, 5120.09, 5120.51, 5139.01, 5502.01, 5540.01, 103499
5540.09, 5731.39, and 6109.21 of the Revised Code as amended or 103500
enacted by this act, and the items of law of which such sections 103501
as amended or enacted by this act are composed, are not subject to 103502
the referendum. Therefore, under Ohio Constitution, Article II, 103503
Section 1d and section 1.471 of the Revised Code, such sections as 103504
amended or enacted by this act, and the items of law of which such 103505
sections as amended or enacted by this act are composed, go into 103506
immediate effect when this act becomes law.103507

       Section 612.12.01. The enactment by this act of new section 103508
4723.63 of the Revised Code, and the items of which it is 103509
composed, are not subject to the referendum. Therefore, under Ohio 103510
Constitution, Article II, Section 1d and section 1.471 of the 103511
Revised Code, the new section, and the items of which it is 103512
composed, go into immediate effect when this act becomes law.103513

       Section 612.12.03. New sections 3317.012, 5111.02, and 103514
5111.112 of the Revised Code as enacted by this act, and the items 103515
of law of which such sections as enacted by this act are composed, 103516
are not subject to the referendum. Therefore, under Ohio 103517
Constitution, Article II, Section 1d and section 1.471 of the 103518
Revised Code, such sections as enacted by this act, and the items 103519
of law of which such sections as enacted by this act are composed, 103520
go into immediate effect when this act becomes law.103521

       Section 612.15. The repeal by this act of sections 181.53, 103522
339.77, 742.36, 3301.31, 3301.33, 3301.34, 3301.35, 3301.36, 103523
3301.37, 3301.38, 3301.85, 3301.87, 3317.012, 3317.0212, and 103524
3317.0213 of the Revised Code is not subject to the referendum. 103525
Therefore, under Ohio Constitution, Article II, Section 1d and 103526
section 1.471 of the Revised Code, the repeals go into immediate 103527
effect when this act becomes law. 103528

       Section 612.18. The sections of law amended, enacted, or 103529
repealed by this act that are listed in this section are not 103530
subject to the referendum. Therefore, under Ohio Constitution, 103531
Article II, Section 1d and section 1.471 of the Revised Code, the 103532
sections as amended, enacted, or repealed, and the items of law of 103533
which such sections as amended or enacted by this act are 103534
composed, go into effect as specified in this section.103535

       Sections 9.981, 125.05, 133.08, 133.081, 140.01, 154.11, 103536
183.28, 3301.80, 3314.074, 3317.06, 3317.50, 3317.51, 3319.22, 103537
3319.235, 3323.021, 3353.01, 3353.02, 3353.03, 3353.04, 3353.06, 103538
3353.07, 3506.17, 3704.035, 3704.14, 3704.142, 3704.143, 3704.17, 103539
3704.99, 3721.01, 3721.19, 3721.50, 3721.51, 3721.511, 3721.52, 103540
3721.56, 3721.561, 3721.58, 3722.01, 3722.02, 4117.24, 4503.103, 103541
5111.041, 5111.042, 5111.20, 5111.21, 5111.22, 5111.221, 5111.222, 103542
5111.223, 5111.23, 5111.231 (5111.232), 5111.235, 5111.24, 103543
5111.241, 5111.242, 5111.243, 5111.244, 5111.25, 5111.251, 103544
5111.254, 5111.255, 5111.257 (5111.258), 5111.26, 5111.261, 103545
5111.262, 5111.263, 5111.264, 5111.265, 5111.266, 5111.27, 103546
5111.28, 5111.29, 5111.291, 5111.30, 5111.31, 5111.32, 5111.33, 103547
5111.34, 5111.65, 5111.651, 5111.66, 5111.661, 5111.67, 5111.671, 103548
5111.672, 5111.673, 5111.674, 5111.675, 5111.676, 5111.677, 103549
5111.68, 5111.681, 5111.682, 5111.683, 5111.684, 5111.685, 103550
5111.686, 5111.687, 5111.688, 5111.871, 5112.31, 5123.01, 103551
5123.041, 5123.045, 5123.046, 5123.047, 5123.048, 5123.049, 103552
5123.0412, 5123.16, 5123.34, 5123.41, 5123.71, 5123.76, 5126.01, 103553
5126.035, 5126.042, 5126.054, 5126.055, 5126.056, 5126.057, 103554
5126.12, 5552.01, and 5705.091 of the Revised Code take effect 103555
July 1, 2005.103556

       New sections 3353.02, 3353.03, 3704.14, 5111.231, 5111.24, 103557
5111.257, 5111.34, and 5123.048 of the Revised Code take effect 103558
July 1, 2005.103559

       The amendment by this act of sections 5709.40, 5709.73, 103560
5709.77, and 5709.78 of the Revised Code takes effect January 1, 103561
2006.103562

       Section 612.21. The amendment or enactment by this act of 103563
sections 122.17, 122.171, 122.172, 122.173, 122.18, 150.07, 103564
150.10, 319.302, 323.152, 325.31, 351.01, 351.021, 351.06, 103565
351.141, 351.16, 718.09, 718.10, 1548.06, 2921.13, 2927.023, 103566
4301.43, 4505.06, 5101.184, 5101.98, 5703.052, 5703.053, 5703.057, 103567
5703.47, 5703.50, 5703.70, 5707.031, 5709.07, 5709.112, 5709.12, 103568
5709.121, 5711.01, 5711.16, 5711.21, 5711.22, 5711.28, 5713.01, 103569
5715.01, 5715.24, 5719.041, 5725.19, 5725.32, 5727.01, 5727.02, 103570
5727.031, 5727.06, 5727.08, 5727.10, 5727.11, 5727.111, 5727.12, 103571
5727.23, 5727.241, 5728.01, 5728.02, 5728.03, 5728.04, 5728.06, 103572
5728.08, 5729.032, 5729.08, 5731.01, 5731.05, 5731.131, 5731.14, 103573
5731.18, 5731.181, 5731.22, 5731.23, 5731.41, 5733.01, 5733.33, 103574
5733,351, 5733.352, 5733.40, 5733.41, 5733.49, 5733.98, 5737.03, 103575
5739.025, 5739.034, 5739.035, 5739.08, 5739.10, 5743.01, 5743.03, 103576
5743.031, 5743.05, 5743.071, 5743.072, 5743.08, 5743.10, 5743.111, 103577
5743.112, 5743.14, 5743.15, 5743.16, 5743.18, 5743.19, 5743.20, 103578
5743.331, 5743.71, 5747.012, 5747.02, 5747.05, 5747.056, 5747.08, 103579
5747.113, 5747.212, 5747.331, 5747.80, 5747.98, 5748.01, 5748.02, 103580
5748.03, 5748.04, 5748.08,, 5751.01, 5751.011, 5751.012, 5751.013, 103581
5751.02, 5751.03, 5751.031, 5751.032, 5751.033, 5751.04, 5751.05, 103582
5751.051, 5751.06, 5751.07, 5751.08, 5751.081, 5751.09, 5751.10, 103583
5751.11, 5751.12, 5751.20, 5751.21, 5751.22, 5751.23, 5751.31, 103584
5751.50, 5751.51, 5751.52, 5751.53, 5751.98, and 5751.99 of the 103585
Revised Code provides for or is essential to implementation of a 103586
tax levy. Therefore, under Ohio Constitution, Article II, Section 103587
1d, the amendments and enactments, and the items of which they are 103588
composed, are not subject to the referendum and go into immediate 103589
effect when this act becomes law.103590

       Section 612.24. The repeal by this act of section 5731.20 of 103591
the Revised Code provides for or is essential to implementation of 103592
a tax levy. Therefore, under Ohio Constitution, Article II, 103593
Section 1d, the repeal is not subject to the referendum and goes 103594
into immediate effect when this act becomes law.103595

       Section 612.27. The amendment, enactment, or repeal by this 103596
act of the sections of law that are listed in this section 103597
provides for or is essential to implementation of a tax levy. 103598
Therefore, under Ohio Constitution, Article II, Section 1d, the 103599
amendments, enactments, and repeals, and the items of which any 103600
such amendment or enactment is composed, are not subject to the 103601
referendum and go into effect as specified in this section.103602

        Sections 5703.80, 5733.065, 5733.066, 5733.122, 5739.033, 103603
5739.12, 5743.02, 5743.32, and 5743.33 of the Revised Code take 103604
effect July 1, 2005.103605

       Sections 5739.012, 5739.03, 5739.16, and 5741.16 of the 103606
Revised Code take effect January 1, 2006.103607

       Section 612.30. (A) Except as otherwise provided in division 103608
(B) of this section, the amendments by this act to section 127.16 103609
of the Revised Code are not subject to the referendum. Therefore, 103610
under Ohio Constitution, Article II, Section 1d and section 1.471 103611
of the Revised Code, the amendments take effect July 1, 2005.103612

       (B) The amendment to division (D)(2) of section 127.16 of the 103613
Revised Code is subject to the referendum. Therefore, under Ohio 103614
Constitution, Article II, Section 1c and section 1.471 of the 103615
Revised Code, the amendment takes effect October 1, 2005. If, 103616
however, a referendum petition is filed against the amendment, the 103617
amendment, unless rejected at the referendum, takes effect at the 103618
earliest time permitted by law that is on or after the effective 103619
date specified in this division.103620

       Section 612.31. (A) Except as otherwise provided in division 103621
(B) of this section, the amendments by this act to section 307.695 103622
of the Revised Code are subject to the referendum. Therefore, 103623
under Ohio Constitution, Article II, Section 1c and section 1.471 103624
of the Revised Code, the amendments go into effect on the 103625
ninety-first day after this act is filed with the Secretary of 103626
State. If, however, a referendum petition is filed against the 103627
amendments, the amendments, unless rejected at the referendum, 103628
take effect at the earliest time permitted by law.103629

        (B) The amendments to section 307.695 of the Revised Code 103630
relating to community improvement corporations provide for or are 103631
essential to implementation of a tax levy. Therefore, under Ohio 103632
Constitution, Article II, Section 1d, the amendments take effect 103633
July 1, 2005.103634

       Section 612.33. (A) Except as otherwise provided in division 103635
(B) of this section, the amendments by this act to section 321.24 103636
of the Revised Code provides for or is essential to implementation 103637
of a tax levy. Therefore, under Ohio Constitution, Article II, 103638
Section 1d, the amendments are not subject to the referendum and 103639
go into immediate effect when this act becomes law.103640

       (B) The amendment to division (F) of section 321.24 of the 103641
Revised Code provides for or is essential to implementation of a 103642
tax levy. Therefore, under Ohio Constitution, Article II, Section 103643
1d, the amendment takes effect July 1, 2005.103644

       Section  612.36.  (A) Except as otherwise provided in division 103645
(B) of this section, the amendments by this act to section 329.04 103646
of the Revised Code are not subject to the referendum. Therefore, 103647
under Ohio Constitution, Article II, Section 1d and section 1.471 103648
of the Revised Code, the amendments go into immediate effect.103649

       (B) The amendments to divisions (A)(3) to (9) of section 103650
329.04 of the Revised Code are subject to the referendum. 103651
Therefore, under Ohio Constitution, Article II, Section 1c and 103652
section 1.471 of the Revised Code, the amendments take effect 103653
October 1, 2005. If, however, a referendum petition is filed 103654
against the amendments, the amendments, unless rejected at the 103655
referendum, take effect at the earliest time permitted by law that 103656
is on or after the effective date specified in this division.103657

       Section 612.36.03. (A) Except as otherwise provided in 103658
division (B) of this section, the amendments to section 3301.0711 103659
of the Revised Code are subject to the referendum. Therefore, 103660
under Ohio Constitution, Article II, Section 1c and section 1.471 103661
of the Revised Code, the amendments take effect July 1, 2006. If, 103662
however, a referendum petition is filed against the amendments, 103663
the amendments, unless rejected at the referendum, take effect at 103664
the earliest time permitted by law that is on or after the 103665
effective date specified in this division.103666

        (B) The amendments to division (N) of section 3301.0711 of 103667
the Revised Code are not subject to the referendum. Therefore, 103668
under Ohio Constitution, Article II, Section 1d and section 1.471 103669
of the Revised Code, the amendments go into immediate effect.103670

       Section 612.37.  (A) Except as otherwise provided in division 103671
(B) of this section, the amendments to section 3314.02 of the 103672
Revised Code are subject to the referendum. Therefore, under Ohio 103673
Constitution, Article II, Section 1c and section 1.471 of the 103674
Revised Code, the amendments go into effect on the ninety-first 103675
day after this act is filed with the Secretary of State. If, 103676
however, a referendum petition is filed against the amendments, 103677
the amendments, unless rejected at the referendum, take effect at 103678
the earliest time permitted by law.103679

       (B) The amendment striking the paragraph immediately 103680
following division (C)(1)(f)(iii) of section 3314.02 of the 103681
Revised Code is not subject to the referendum. Therefore, under 103682
Ohio Constitution, Article II, Section 1d and section 1.471 of the 103683
Revised Code, the amendment goes into immediate effect when this 103684
act becomes law.103685

       Section 612.38.  (A) Except as otherwise provided in division 103686
(B) of this section, the amendments by this act to section 3314.03 103687
of the Revised Code are not subject to the referendum. Therefore, 103688
under Ohio Constitution, Article II, Section 1d and section 1.471 103689
of the Revised Code, the amendments go into immediate effect.103690

       (B) The amendment to division (A)(4) and the amendments 103691
adding divisions (A)(25) and (F) of section 3314.03 of the Revised 103692
Code are subject to the referendum. Therefore, under Ohio 103693
Constitution, Article II, Section 1c and section 1.471 of the 103694
Revised Code, the amendments take effect on the ninety-first day 103695
after this act is filed with the Secretary of State. If, however, 103696
a referendum petition is filed against the amendments, the 103697
amendments, unless rejected at the referendum, take effect at the 103698
earliest time permitted by law.103699

       Section 612.38.03. (A) Except as otherwise provided in 103700
division (B) of this section, the amendments by this act to 103701
section 3314.08 of the Revised Code are not subject to the 103702
referendum. Therefore, under Ohio Constitution, Article II, 103703
Section 1d and section 1.471 of the Revised Code, the amendments 103704
go into immediate effect.103705

       (B) The amendments to division (N) of section 3314.08 of the 103706
Revised Code are subject to the referendum. Therefore, under Ohio 103707
Constitution, Article II, Section 1c and section 1.471 of the 103708
Revised Code, the amendments take effect on the ninety-first day 103709
after this act is filed with the Secretary of State. If, however, 103710
a referendum petition is filed against the amendments, the 103711
amendments, unless rejected at the referendum, take effect at the 103712
earliest time permitted by law.103713

       Section 612.39. (A) Except as otherwise provided in division 103714
(B) of this section, the amendments by this act to section 103715
3317.024 of the Revised Code are not subject to the referendum. 103716
Therefore, under Ohio Constitution, Article II, Section 1d and 103717
section 1.471 of the Revised Code, the amendments go into 103718
immediate effect.103719

       (B) The amendment to division (J) of section 3317.024 of the 103720
Revised Code is subject to the referendum. Therefore, under Ohio 103721
Constitution, Article II, Section 1c and section 1.471 of the 103722
Revised Code, the amendment takes effect on the ninety-first day 103723
after this act is filed with the Secretary of State. If, however, 103724
a referendum petition is filed against the amendment, the 103725
amendment, unless rejected at the referendum, takes effect at the 103726
earliest time permitted by law.103727

       Section 612.45. (A) Except as otherwise provided in division 103728
(B) of this section, the amendments by this act to section 3702.51 103729
of the Revised Code are not subject to the referendum. Therefore, 103730
under Ohio Constitution, Article II, Section 1d and section 1.471 103731
of the Revised Code, the amendments go into immediate effect.103732

       (B) The amendment to division (G)(10) of section 3702.51 of 103733
the Revised Code is not subject to the referendum. Therefore, 103734
under Ohio Constitution, Article II, Section 1d and section 1.471 103735
of the Revised Code, the amendments take effect July 1, 2005.103736

       Section 612.48. (A) Except as otherwise provided in division 103737
(B) of this section, the amendments to section 5101.35 of the 103738
Revised Code are subject to the referendum. Therefore, under Ohio 103739
Constitution, Article II, Section 1c and section 1.471 of the 103740
Revised Code, the amendments take effect on the ninety-first day 103741
after this act is filed with the Secretary of State. If, however, 103742
a referendum petition is filed against the amendments, the 103743
amendments, unless rejected at the referendum, take effect at the 103744
earliest time permitted by law.103745

       (B) The amendment by this act to division (A)(3) of section 103746
5101.35 of the Revised Code adding a reference to "5101.461" is 103747
not subject to the referendum. Therefore, under Ohio Constitution, 103748
Article II, Section 1d and section 1.471 of the Revised Code, the 103749
amendment goes into immediate effect.103750

       Section 612.54. (A) Except as otherwise provided in division 103751
(B) of this section, the amendments to section 5111.02 (5111.021) 103752
of the Revised Code are subject to the referendum. Therefore, 103753
under Ohio Constitution, Article II, Section 1c and section 1.471 103754
of the Revised Code, the amendments take effect October 1, 2005. 103755
If, however, a referendum petition is filed against the 103756
amendments, the amendments, unless rejected at the referendum, 103757
take effect at the earliest time permitted by law that is on or 103758
after the effective date specified in this division.103759

       (B) The amendment by this act to division (B) of section 103760
5111.02 (5111.021) of the Revised Code striking the last sentence 103761
of that division (B) is not subject to the referendum. Therefore, 103762
under Ohio Constitution, Article II, Section 1d and section 1.471 103763
of the Revised Code, the amendment takes effect July 1, 2005.103764

       Section 612.57. (A) Except as otherwise provided in division 103765
(B) of this section, the amendments to section 5111.06 of the 103766
Revised Code are subject to the referendum. Therefore, under Ohio 103767
Constitution, Article II, Section 1c and section 1.471 of the 103768
Revised Code, the amendments go into effect on October 1, 2005. 103769
If, however, a referendum petition is filed against the 103770
amendments, the amendments, unless rejected at the referendum, 103771
take effect at the earliest time permitted by law that is on or 103772
after the effective date specified in this division.103773

       (B) The amendment to division (A)(1) of section 5111.06 of 103774
the Revised Code that inserts a reference to section 5111.061 of 103775
the Revised Code is not subject to the referendum. Therefore, 103776
under Ohio Constitution, Article II, Section 1d and section 1.471 103777
of the Revised Code, the amendment goes into immediate effect when 103778
this act becomes law.103779

       Section 612.63. (A) Except as otherwise provided in division 103780
(B) of this section, the amendment renumbering section 5111.88 as 103781
section 5111.97 of the Revised Code is subject to the referendum. 103782
Therefore, under Ohio Constitution, Article II, Section 1c and 103783
section 1.471 of the Revised Code, the renumbering amendment takes 103784
effect October 1, 2005. If, however, a referendum petition is 103785
filed against the renumbering amendment, the renumbering 103786
amendment, unless rejected at the referendum, takes effect at the 103787
earliest time permitted by law that is on or after the effective 103788
date specified in this division.103789

       (B) The amendment to division (B)(2) of section 5111.88 103790
(5111.97) of the Revised Code striking "eighteen" and inserting 103791
"twelve" is not subject to the referendum. Therefore, under Ohio 103792
Constitution, Article II, Section 1d and section 1.471 of the 103793
Revised Code, the amendment goes into immediate effect when this 103794
act becomes law.103795

       Section 612.66. (A) Except as otherwise provided in division 103796
(B) of this section, the amendments to section 5727.84 of the 103797
Revised Code provide for or are essential to implementation of a 103798
tax levy. Therefore, under Ohio Constitution, Article II, Section 103799
1d, the amendments go into immediate effect when this act becomes 103800
law.103801

       (B) The amendments striking divisions (B)(6) and (7) and 103802
(C)(3) from section 5727.84 of the Revised Code are subject to the 103803
referendum. Therefore, under Ohio Constitution, Article II, 103804
Section 1c and section 1.471 of the Revised Code, the amendments 103805
take effect on the ninety-first day after this act is filed with 103806
the Secretary of State. If, however, a referendum petition is 103807
filed against the amendments, the amendments, unless rejected at 103808
the referendum, take effect at the earliest time permitted by law.103809

       Section 612.69. (A) Except as otherwise provided in division 103810
(B) of this section, the amendments to section 5727.85 of the 103811
Revised Code are not subject to the referendum. Therefore, under 103812
Ohio Constitution, Article II, Section 1d and section 1.471 of the 103813
Revised Code, the amendments go into immediate effect when this 103814
act becomes law.103815

       (B) The amendments to section 5727.85 of the Revised Code 103816
that insert new language into division (F), strike "February" and 103817
insert "May," strike divisions (G) and (H) and the two unlettered 103818
paragraphs following, insert new division (H), and add an internal 103819
cross-reference to division (F) of the section are subject to the 103820
referendum. Therefore, under Ohio Constitution, Article II, 103821
Section 1c and section 1.471 of the Revised Code, the amendments 103822
take effect on the ninety-first day after this act is filed with 103823
the Secretary of State. If, however, a referendum petition is 103824
filed against the amendments, the amendments, unless rejected at 103825
the referendum, take effect at the earliest time permitted by law.103826

       Section 612.69.03. The amendments by this act to section 103827
5739.01 of the Revised Code provide for or are essential to 103828
implementation of a tax levy. Therefore, under Ohio Constitution, 103829
Article II, Section 1d, the amendments are not subject to the 103830
referendum and go into immediate effect when this act becomes law. 103831
However, the amendment to divisions (HHH) and (III) of the section 103832
goes into effect July 1, 2005, and the amendments to division 103833
(H)(1)(a)(vi), adding a new division (H)(1)(b), and adding a new 103834
division (H)(1)(c)(iv) of the section go into effect January 1, 103835
2006.103836

       Section 612.69.06. The amendments by this act to section 103837
5739.02 of the Revised Code provide for or are essential to 103838
implementation of a tax levy. Therefore, under Ohio Constitution, 103839
Article II, Section 1d, the amendments are not subject to the 103840
referendum and go into immediate effect when this act becomes law. 103841
However, the amendment to division (B)(18) of the section and the 103842
amendment striking through division (B)(35) of the section go into 103843
effect July 1, 2005.103844

       Section 612.69.09. (A) Except as otherwise provided in 103845
division (B) of this section, the amendments by this act to 103846
section 5739.17 of the Revised Code are not subject to the 103847
referendum. Therefore, under Ohio Constitution, Article II, 103848
Section 1d and section 1.471 of the Revised Code, the amendments 103849
take effect on July 1, 2005.103850

        (B) The amendments to division (C) of section 5739.17 of the 103851
Revised Code provide for or are essential to implementation of a 103852
tax levy. Therefore, under Ohio Constitution, Article II, Section 103853
1d, the amendments are not subject to the referendum and go into 103854
immediate effect when this act becomes law.103855

       Section 612.69.12. The amendments by this act to section 103856
5741.02 of the Revised Code provide for or are essential to 103857
implementation of a tax levy. Therefore, under Ohio Constitution, 103858
Article II, Section 1d, the amendments are not subject to the 103859
referendum and go into immediate effect when this act becomes law. 103860
However, the amendment to division (E) of the section goes into 103861
effect January 1, 2006.103862

       Section 612.72. (A) Except as otherwise provided in division 103863
(B) of this section, the amendments by this act to section 5747.01 103864
of the Revised Code provides for or is essential to implementation 103865
of a tax levy. Therefore, under Ohio Constitution, Article II, 103866
Section 1d, the amendments are not subject to the referendum and 103867
go into immediate effect when this act becomes law.103868

       (B) The amendment to division (A)(10) of section 5747.01 of 103869
the Revised Code is subject to the referendum. Therefore, under 103870
Ohio Constitution, Article II, Section 1c and section 1.471 of the 103871
Revised Code, the amendment takes effect on the ninety-first day 103872
after this act is filed with the Secretary of State. If, however, 103873
a referendum petition is filed against the amendment, the 103874
amendment, unless rejected at the referendum, takes effect at the 103875
earliest time permitted by law.103876

       Section 615.03. Except as otherwise specifically provided in 103877
this act, the uncodified sections of law amended or enacted in 103878
this act, and the items of law of which the uncodified sections of 103879
law amended or enacted in this act are composed, are not subject 103880
to the referendum. Therefore, under Ohio Constitution, Article II, 103881
Section 1d and section 1.471 of the Revised Code, the uncodified 103882
sections of law amended or enacted in this act, and the items of 103883
law of which the uncodified sections of law amended or enacted in 103884
this act are composed, go into immediate effect when this act 103885
becomes law.103886

       Section 615.06. Uncodified sections of law amended or enacted 103887
in this act, and items of law contained within the uncodified 103888
sections of law amended or enacted in this act, that are marked 103889
with an asterisk are subject to the referendum. Therefore, under 103890
Ohio Constitution, Article II, Section 1c and section 1.471 of the 103891
Revised Code, the uncodified sections and items of law marked with 103892
an asterisk take effect on the ninety-first day after this act is 103893
filed with the Secretary of State. If, however, a referendum 103894
petition is filed against an uncodified section or item of law 103895
marked with an asterisk, the uncodified section or item of law 103896
marked with an asterisk, unless rejected at the referendum, takes 103897
effect at the earliest time permitted by law.103898

        If the amending and existing repeal clauses commanding the 103899
amendment of an uncodified section of law are both marked with 103900
asterisks, the uncodified section as amended is deemed also to 103901
have been marked with an asterisk.103902

        An asterisk marking an uncodified section or item of law has 103903
the form *.103904

        This section defines the meaning and form of, but is not 103905
itself to be considered marked with, an asterisk.103906

       Section 615.90. If the amendment or enactment in this act of 103907
a codified or uncodified section of law is subject to the 103908
referendum, the corresponding indications in the amending, 103909
enacting, or existing repeal clauses commanding the amendment or 103910
enactment also are subject to the referendum, along with the 103911
amendment or enactment. If the amendment or enactment by this act 103912
of a codified or uncodified section of law is not subject to the 103913
referendum, the corresponding indications in the amending, 103914
enacting, or existing repeal clauses commanding the amendment or 103915
enactment also are not subject to the referendum, the same as the 103916
amendment or enactment.103917

       Section 618.03. The amendment of sections 5112.03 and 5112.08 103918
of the Revised Code are not intended to supersede the earlier 103919
repeal, with delayed effective date, of those sections.103920

       Section 618.06. The General Assembly, applying the principle 103921
stated in division (B) of section 1.52 of the Revised Code that 103922
amendments are to be harmonized if reasonably capable of 103923
simultaneous operation, finds that the following sections, 103924
presented in this act as composites of the sections as amended by 103925
the acts indicated, are the resulting versions of the sections in 103926
effect prior to the effective date of the sections as presented in 103927
this act:103928

       Section 122.74 of the Revised Code as amended by both Am.103929
Sub. H.B. 356 and Am. Sub. S.B. 310 of the 121st General Assembly.103930

        Section 307.37 of the Revised Code as amended by both Am. 103931
Sub. H.B. 175 and Sub. H.B. 231 of the 125th General Assembly.103932

       Section 307.86 of the Revised Code as amended by both Am. 103933
Sub. H.B. 11 and Sub. H.B. 230 of the 125th General Assembly.103934

       Section 2921.13 of the Revised Code as amended by Am. Sub. 103935
H.B. 12, Am. Sub. H.B. 95, and Am. Sub. H.B. 311 of the 125th 103936
General Assembly.103937

       Section 3314.03 of the Revised Code as amended by both Am. 103938
Sub. H.B. 3 and Am. Sub. H.B. 95 of the 125th General Assembly.103939

       Section 3317.023 of the Revised Code as amended by both Am. 103940
Sub. H.B. 3 and Am. Sub. H.B. 95 of the 125th General Assembly.103941

       Section 3317.026 of the Revised Code as amended by both Sub. 103942
H.B. 129 and Sub. S.B. 200 of the 124th General Assembly.103943

       Section 3704.035 of the Revised Code as amended by both Am. 103944
Sub. S.B. 18 and Am. Sub. S.B. 153 of the 120th General Assembly.103945

       Section 4503.571 of the Revised Code as amended by both Am. 103946
Sub. S.B. 120 and Am. Sub. S.B. 232 of the 123rd General Assembly.103947

       Section 4723.341 of the Revised Code as amended by both Sub. 103948
H.B. 511 and Am. Sub. S.B. 180 of the 123rd General Assembly.103949

       Section 5739.01 of the Revised Code as amended by both Am. 103950
Sub. H.B. 95 and Am. Sub. S.B. 37 of the 125th General Assembly.103951

       Section 5739.02 of the Revised Code as amended by both Am. 103952
Sub. H.B. 95 and Am. Sub. S.B. 37 of the 125th General Assembly.103953

       Section 5741.02 of the Revised Code as amended by Am. Sub. 103954
H.B. 95, Am. Sub. S.B. 37, and Sub. S.B. 47 of the 125th General 103955
Assembly.103956

       Section 5743.03 of the Revised Code as amended by both Am. 103957
Sub. S.B. 242 and Am. Sub. S.B. 261 of the 124th General Assembly.103958

       Section 6121.04 of the Revised Code as amended by both Sub. 103959
H.B. 601 and Am. Sub. H.B. 628 of the 123rd General Assembly.103960