SECTION 101.01. That sections 9.24, 9.981, 101.68, 102.02, 102.06, 108.05, 109.54, 109.57, 109.79, 109.91, 109.98, 117.10, 120.06, 120.13, 120.23, 120.52, 120.53, 121.37, 121.38, 122.011, 122.17, 122.171, 122.18, 122.40, 122.603, 122.71, 122.72, 122.73, 122.74, 122.75, 122.751, 122.76, 122.77, 122.78, 122.79, 122.82, 122.83, 122.95, 122.951, 123.01, 123.152, 123.17, 124.07, 124.321, 124.328, 125.041, 125.05, 125.11, 125.831, 125.832, 126.25, 127.16, 131.02, 131.23, 133.08, 133.081, 133.09, 140.01, 141.011, 141.04, 145.01, 145.33, 147.05, 147.10, 147.11, 147.12, 147.371, 149.30, 150.07, 150.10, 154.11, 173.26, 173.40, 173.99, 181.251, 181.51, 181.52, 181.54, 181.55, 181.56, 183.28, 184.02, 305.171, 307.37, 307.695, 307.86, 307.88, 317.08, 317.36, 319.20, 319.302, 321.24, 323.01, 323.152, 325.31, 329.04, 329.051, 339.72, 339.88, 340.03, 340.16, 351.01, 351.021, 351.06, 351.141, 351.16, 718.09, 718.10, 731.14, 731.141, 742.59, 901.43, 903.05, 905.32, 905.33, 905.331, 905.36, 905.37, 905.38, 905.381, 905.50, 905.501, 905.66, 907.16, 913.02, 913.23, 915.02, 915.16, 915.24, 921.02, 921.16, 923.44, 923.45, 923.46, 926.01, 927.69, 1111.04, 1327.511, 1502.02, 1509.06, 1509.072, 1509.31, 1515.14, 1517.02, 1521.062, 1531.27, 1533.10, 1533.11, 1533.111, 1533.112, 1533.12, 1533.32, 1541.03, 1548.06, 1707.01, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.261, 1707.431, 1707.44, 1707.46, 1711.52, 1711.53, 1713.03, 1751.03, 1751.04, 1751.05, 1901.26, 1901.31, 1907.24, 2113.041, 2117.061, 2151.352, 2151.416, 2152.43, 2152.74, 2303.201, 2305.234, 2329.66, 2743.191, 2744.05, 2744.08, 2901.07, 2913.40, 2921.13, 2923.25, 2923.35, 2923.46, 2925.44, 2933.43, 2933.74, 2949.092, 2971.05, 3107.10, 3111.04, 3119.54, 3121.12, 3121.50, 3125.18, 3301.079, 3301.0710, 3301.0711, 3301.0714, 3301.0715, 3301.12, 3301.16, 3301.311, 3301.32, 3301.56, 3301.86, 3301.88, 3302.03, 3313.207, 3313.208, 3313.209, 3313.489, 3313.975, 3313.976, 3313.977, 3313.978, 3313.98, 3314.013, 3314.015, 3314.02, 3314.021, 3314.03, 3314.031, 3314.032, 3314.06, 3314.074, 3314.08, 3314.13, 3315.17, 3315.18, 3315.37, 3316.06, 3316.16, 3317.01, 3317.013, 3317.02, 3317.021, 3317.022, 3317.023, 3317.024, 3317.026, 3317.027, 3317.028, 3317.029, 3317.0216, 3317.0217, 3317.03, 3317.031, 3317.05, 3317.052, 3317.053, 3317.06, 3317.063, 3317.07, 3317.081, 3317.09, 3317.10, 3317.16, 3317.20, 3317.21, 3317.22, 3317.23, 3317.50, 3317.51, 3318.091, 3318.33, 3319.081, 3319.17, 3319.22, 3319.235, 3319.55, 3323.021, 3323.091, 3323.14, 3323.16, 3327.01, 3332.092, 3333.04, 3333.044, 3333.12, 3333.121, 3333.27, 3333.28, 3333.36, 3333.38, 3334.01, 3334.02, 3334.03, 3334.07, 3334.08, 3334.09, 3334.10, 3334.11, 3334.12, 3334.15, 3334.16, 3334.17, 3334.18, 3334.19, 3335.02, 3345.10, 3345.19, 3345.32, 3353.01, 3353.04, 3353.06, 3353.07, 3362.02, 3365.01, 3365.02, 3365.04, 3365.041, 3365.05, 3365.08, 3375.40, 3375.48, 3375.49, 3375.54, 3375.55, 3381.02, 3381.04, 3381.05, 3381.06, 3381.07, 3381.15, 3383.02, 3383.09, 3501.141, 3501.17, 3513.04, 3513.041, 3513.05, 3513.052, 3513.257, 3513.259, 3513.261, 3517.13, 3517.151, 3701.023, 3701.146, 3701.65, 3702.141, 3702.51, 3702.68, 3702.71, 3702.74, 3703.01, 3703.03, 3703.04, 3703.05, 3703.06, 3703.07, 3703.08, 3703.10, 3703.99, 3704.035, 3704.143, 3704.99, 3705.24, 3712.03, 3714.07, 3721.01, 3721.011, 3721.02, 3721.03, 3721.07, 3721.121, 3721.15, 3721.19, 3721.21, 3721.50, 3721.51, 3721.52, 3721.56, 3721.58, 3722.01, 3722.02, 3722.04, 3734.01, 3734.20, 3734.21, 3734.22, 3734.23, 3734.28, 3734.57, 3734.573, 3734.85, 3734.901, 3734.9010, 3735.27, 3743.01, 3743.02, 3743.04, 3743.05, 3743.06, 3743.15, 3743.17, 3743.18, 3743.19, 3743.57, 3743.59, 3743.65, 3743.75, 3745.11, 3745.12, 3746.04, 3746.071, 3748.07, 3748.13, 3773.34, 3773.38, 3773.39, 3773.40, 3773.57, 3781.07, 3781.10, 3781.102, 3793.09, 3901.021, 3901.17, 3901.3814, 3901.78, 3903.14, 3903.42, 3905.04, 3905.36, 3905.40, 3923.27, 4112.12, 4115.32, 4115.34, 4117.10, 4117.24, 4121.12, 4121.121, 4121.125, 4123.27, 4123.44, 4123.47, 4301.10, 4301.43, 4303.182, 4501.01, 4501.37, 4503.103, 4503.471, 4503.48, 4503.50, 4503.53, 4503.571, 4503.59, 4503.73, 4503.85, 4503.91, 4505.06, 4506.03, 4506.07, 4511.191, 4511.75, 4517.01, 4519.01, 4519.02, 4519.09, 4561.17, 4561.18, 4561.21, 4703.15, 4705.09, 4709.05, 4713.02, 4717.05, 4723.32, 4723.33, 4723.34, 4723.341, 4723.63, 4731.65, 4731.71, 4736.11, 4736.12, 4740.14, 4753.03, 4753.06, 4753.071, 4753.08, 4753.09, 4755.03, 4755.48, 4766.09, 4905.10, 4905.54, 4905.95, 4911.18, 4973.171, 5101.16, 5101.181, 5101.184, 5101.21, 5101.241, 5101.26, 5101.31, 5101.35, 5101.36, 5101.46, 5101.47, 5101.75, 5101.752, 5101.80, 5101.801, 5101.821, 5104.01, 5104.02, 5104.32, 5107.05, 5107.10, 5107.26, 5107.30, 5107.58, 5110.01, 5110.05, 5110.352, 5110.39, 5111.011, 5111.019, 5111.0112, 5111.02, 5111.021, 5111.022, 5111.023, 5111.025, 5111.042, 5111.06, 5111.082, 5111.11, 5111.111, 5111.113, 5111.16, 5111.17, 5111.19, 5111.20, 5111.204, 5111.21, 5111.22, 5111.221, 5111.23, 5111.231, 5111.235, 5111.241, 5111.25, 5111.251, 5111.255, 5111.257, 5111.26, 5111.261, 5111.263, 5111.264, 5111.27, 5111.28, 5111.29, 5111.291, 5111.30, 5111.31, 5111.32, 5111.33, 5111.62, 5111.81, 5111.85, 5111.87, 5111.871, 5111.88, 5111.97, 5111.99, 5112.03, 5112.08, 5112.17, 5112.30, 5112.31, 5115.20, 5115.22, 5115.23, 5119.61, 5120.09, 5120.51, 5121.01, 5121.02, 5121.03, 5121.04, 5121.05, 5121.06, 5121.061, 5121.07, 5121.08, 5121.09, 5121.10, 5121.11, 5121.12, 5121.21, 5122.03, 5122.31, 5123.01, 5123.045, 5123.046, 5123.047, 5123.049, 5123.0412, 5123.34, 5123.41, 5123.701, 5123.71, 5123.76, 5126.01, 5126.035, 5126.042, 5126.054, 5126.055, 5126.056, 5126.057, 5126.12, 5139.01, 5139.36, 5153.16, 5502.01, 5502.03, 5531.10, 5540.01, 5540.09, 5549.01, 5552.01, 5573.013, 5703.052, 5703.053, 5703.47, 5703.50, 5703.70, 5703.80, 5705.091, 5705.391, 5705.40, 5709.07, 5709.12, 5709.121, 5709.40, 5709.73, 5709.77, 5709.78, 5711.01, 5711.16, 5711.21, 5711.22, 5711.28, 5713.01, 5715.01, 5715.24, 5719.041, 5725.01, 5725.19, 5727.01, 5727.02, 5727.06, 5727.08, 5727.10, 5727.11, 5727.111, 5727.12, 5727.23, 5727.84, 5727.85, 5728.01, 5728.02, 5728.03, 5728.04, 5728.06, 5728.08, 5729.08, 5731.01, 5731.05, 5731.131, 5731.14, 5731.18, 5731.181, 5731.22, 5731.23, 5731.39, 5731.41, 5733.01, 5733.065, 5733.066, 5733.33, 5733.351, 5733.352, 5733.40, 5733.41, 5733.49, 5733.98, 5737.03, 5739.01, 5739.02, 5739.025, 5739.03, 5739.033, 5739.034, 5739.035, 5739.08, 5739.09, 5739.10, 5739.12, 5739.16, 5739.17, 5741.02, 5741.16, 5743.01, 5743.02, 5743.03, 5743.05, 5743.071, 5743.08, 5743.10, 5743.111, 5743.112, 5743.14, 5743.15, 5743.16, 5743.18, 5743.19, 5743.20, 5743.32, 5743.33, 5747.01, 5747.012, 5747.02, 5747.05, 5747.08, 5747.113, 5747.212, 5747.331, 5747.70, 5747.80, 5747.98, 5748.01, 5748.02, 5748.03, 5748.04, 5748.08, 5749.02, 5907.15, 5919.33, 5920.01, 6109.21, 6121.04, and 6123.04 be amended; that sections 9.833, 9.90, 3311.19, 3313.12, 3313.202, 3313.33, 4117.03, and 4117.08 be contingently amended; that sections 181.251 (5502.63), 181.51 (5502.61), 181.52 (5502.62), 181.54 (5502.64), 181.55 (5502.65), 181.56 (5502.66), 3314.031 (3314.21), 3314.032 (3314.22), 3314.034 (3314.24), 3317.21 (3318.47), 3317.22 (3318.48), 3317.23 (3318.49), 4723.63 (4723.91), 5101.75 (173.42), 5101.752 (173.43), 5111.02 (5111.021), 5111.021 (5111.022), 5111.022 (5111.023), 5111.023 (5111.0115), 5111.112 (5111.113), 5111.113 (5111.114), 5111.231 (5111.232), 5111.257, (5111.258), 5111.81 (5111.085), 5111.88 (5111.97), 5111.97 (5111.86), 5121.01 (5121.02), 5121.02 (5121.03), and 5121.03 (5121.01) be amended for the purpose of adopting new section numbers as indicated in parentheses; that Section 41.36 of Am. Sub. H.B. 95 of the 125th General Assembly be amended and that Section 41.36 of Am. Sub. H.B. 95 of the 125th General Assembly be amended for the purpose of codifying it as section 3323.19 of the Revised Code; that new sections 3317.012, 3353.02, 3353.03, 3704.14, 4723.63, 5111.02, 5111.112, 5111.231, 5111.24, 5111.257, 5111.34, 5111.88, and 5123.048 and sections 9.23, 9.231, 9.232, 9.233, 9.234, 9.235, 9.236, 9.237, 9.238, 9.239, 9.241, 101.391, 103.132, 109.579, 109.981, 120.07, 120.36, 121.373, 121.381, 121.382, 121.403, 122.075, 122.083, 122.172, 122.173, 125.18, 125.25, 125.60, 125.601, 125.602, 125.603, 125.604, 125.605, 125.606, 125.607, 125.608, 125.609, 125.6010, 125.6011, 125.6012, 131.022, 153.02, 173.39, 173.391, 173.392, 173.393, 173.44, 173.45, 173.46, 173.47, 173.48, 173.49, 173.50, 305.28, 306.331, 307.676, 341.192, 901.44, 907.111, 1547.721, 1547.722, 1547.723, 1547.724, 1547.725, 1547.726, 1707.164, 1707.165, 1711.531, 1751.271, 2151.282, 2305.2341, 2307.65, 2744.082, 2913.401, 2927.023, 2949.093, 3125.191, 3302.10, 3310.01, 3310.02, 3310.03, 3310.04, 3310.05, 3310.06, 3310.07, 3310.08, 3310.09, 3310.10, 3310.13, 3310.14, 3310.16, 3310.17, 3311.11, 3313.6410, 3314.014, 3314.061, 3314.084, 3314.085, 3314.12, 3314.25, 3314.26, 3314.27, 3314.28, 3314.35, 3314.36, 3316.043, 3317.016, 3317.017, 3317.035, 3317.201, 3318.18, 3319.06, 3319.0810, 3319.172, 3323.20, 3323.30, 3323.31, 3323.32, 3323.33, 3324.10, 3325.10, 3325.11, 3325.12, 3325.15, 3325.16, 3325.17, 3333.047, 3333.122, 3333.123, 3333.162, 3354.25, 3365.11, 3701.073, 3702.83, 3704.144, 3705.242, 3714.073, 3715.04, 3721.032, 3721.541, 3721.561, 3745.015, 3745.114, 3770.061, 3781.191, 3903.421, 4115.36, 4117.103, 4121.126, 4121.127, 4121.128, 4123.441, 4123.444, 4123.445, 4506.101, 4506.161, 4723.61, 4723.62, 4723.621, 4723.64, 4723.65, 4723.651, 4723.652, 4723.66, 4723.67, 4723.68, 4723.69, 4766.14, 4905.261, 4911.021, 5101.07, 5101.071, 5101.163, 5101.244, 5101.461, 5101.802, 5101.803, 5101.93, 5101.98, 5107.301, 5111.0114, 5111.027, 5111.061, 5111.062, 5111.083, 5111.084, 5111.10, 5111.161, 5111.162, 5111.163, 5111.176, 5111.177, 5111.191, 5111.222, 5111.223, 5111.242, 5111.243, 5111.244, 5111.254, 5111.265, 5111.266, 5111.65, 5111.651, 5111.66, 5111.661, 5111.67, 5111.671, 5111.672, 5111.673, 5111.674, 5111.675, 5111.676, 5111.677, 5111.68, 5111.681, 5111.682, 5111.683, 5111.684, 5111.685, 5111.686, 5111.687, 5111.688, 5111.851, 5111.852, 5111.853, 5111.854, 5111.855, 5111.856, 5111.881, 5111.882, 5111.883, 5111.884, 5111.885, 5111.886, 5111.887, 5111.888, 5111.889, 5111.8810, 5111.8811, 5111.8812, 5111.89, 5111.891, 5111.892, 5111.893, 5111.914, 5111.915, 5111.971, 5111.98, 5112.341, 5121.30, 5121.31, 5121.32, 5121.33, 5121.34, 5121.35, 5121.36, 5121.37, 5121.38, 5121.40, 5121.41, 5121.42, 5121.43, 5121.44, 5121.45, 5121.46, 5121.47, 5121.48, 5121.49, 5121.50, 5121.51, 5121.52, 5121.53, 5121.54, 5121.55, 5121.56, 5123.16, 5703.057, 5705.211, 5707.031, 5709.112, 5725.32, 5727.031, 5727.241, 5729.032, 5739.012, 5739.36, 5743.031, 5743.072, 5743.331, 5743.71, 5747.056, 5751.01, 5751.011, 5751.012, 5751.013, 5751.02, 5751.03, 5751.031, 5751.032, 5751.033, 5751.04, 5751.05, 5751.051, 5751.06, 5751.07, 5751.08, 5751.081, 5751.09, 5751.10, 5751.11, 5751.12, 5751.20, 5751.21, 5751.22, 5751.23, 5751.31, 5751.50, 5751.51, 5751.52, 5751.53, 5751.98, 5751.99, 5919.31, 5919.341, 6111.30, 6111.31, and 6111.32 be enacted; and that section 9.901 of the Revised Code be enacted (certain of its phases contingently) to read as follows:

(A) "Allocable nondirect costs" means the amount of nondirect costs allocated as a result of actual expenditures on direct costs. "Allocable nondirect costs" shall be calculated as follows: direct costs actually incurred for the provision of services pursuant to a contract entered into under section 9.231 of the Revised Code divided by the minimum percentage of money that is to be expended on the recipient's direct costs, as specified in the contract, minus the direct costs actually incurred.

(B) "Contract payment earned" means payment pursuant to a contract entered into under section 9.231 of the Revised Code for direct costs actually incurred in performing the contract, up to the minimum percentage of money that is to be expended on the recipient's direct costs, as specified in the contract, plus allocable nondirect costs associated with those direct costs.

(C) "Direct costs" means the costs of providing services that directly benefit a patient, client, or the public and that are set forth in the contract entered into under section 9.231 of the Revised Code. "Direct costs" does not include the costs of any financial review or audit required under section 9.234 of the Revised Code.

(D)(1) "Governmental entity" means a state agency or a political subdivision of the state.

(2) "Contracting authority" of a governmental entity means the director or chief executive officer, in the case of a state agency, or the legislative authority, in the case of a political subdivision.

(E) "Minimum percentage of money that is to be expended on the recipient's direct costs" means the percentage of the total amount of the contract entered into under section 9.231 of the Revised Code that, at a minimum, has to be expended on the recipient's direct costs in performing the contract in order for the recipient to earn the total amount of the contract.

(F) "Political subdivision" means a county, township, municipal corporation, or any other body corporate and politic that is responsible for government activities in a geographic area smaller than that of the state.

(G) "Recipient" means a person that enters into a contract with a governmental entity under section 9.231 of the Revised Code.

(H) "State agency" means any organized body, office, agency, institution, or other entity established by the laws of the state for the exercise of any function of state government.

(I) A judgment is "uncollectible" if, at least ninety days after the judgment is obtained, the full amount of the judgment has not been collected and either a settlement agreement between the governmental entity and the recipient has not been entered into or a settlement agreement has been entered into but has not been materially complied with.

Sec. 9.231. (A)(1) Subject to divisions (A)(2) and (3) of this section, a governmental entity shall not disburse money totaling twenty-five thousand dollars or more to any person for the provision of services for the primary benefit of individuals or the public and not for the primary benefit of a governmental entity or the employees of a governmental entity, unless the contracting authority of the governmental entity first enters into a written contract with the person that is signed by the person or by an officer or agent of the person authorized to legally bind the person and that embodies all of the requirements and conditions set forth in sections 9.23 to 9.236 of the Revised Code. If the disbursement of money occurs over the course of a governmental entity's fiscal year, rather than in a lump sum, the contracting authority of the governmental entity shall enter into the written contract with the person at the point during the governmental entity's fiscal year that at least seventy-five thousand dollars has been disbursed by the governmental entity to the person. Thereafter, the contracting authority of the governmental entity shall enter into the written contract with the person at the beginning of the governmental entity's fiscal year, if, during the immediately preceding fiscal year, the governmental entity disbursed to that person an aggregate amount totaling at least seventy-five thousand dollars.

(2) If the money referred to in division (A)(1) of this section is disbursed by or through more than one state agency to the person for the provision of services to the same population, the contracting authorities of those agencies shall determine which one of them will enter into the written contract with the person.

(3) The requirements and conditions set forth in divisions (A), (B), (C), and (F) of section 9.232, divisions (A)(1) and (2) and (B) of section 9.234, divisions (A)(2) and (B) of section 9.235, and sections 9.233 and 9.236 of the Revised Code do not apply with respect to the following:

(i) The amount received for the services is a set fee for each time the services are provided, is determined in accordance with a fixed rate per unit of time or per service, or is a capitated rate, and the fee or rate is established by competitive bidding or by a market rate survey of similar services provided in a defined market area. The market rate survey may be one conducted by or on behalf of the governmental entity or an independent survey accepted by the governmental entity as statistically valid and reliable.

(ii) The services are provided in accordance with standards established by state or federal law, or by rules or regulations adopted thereunder, for their delivery, which standards are enforced by the federal government, a governmental entity, or an accrediting organization recognized by the federal government or a governmental entity.

(iii) Payment for the services is made after the services are delivered and upon submission to the governmental entity of an invoice or other claim for payment as required by any applicable local, state, or federal law or, if no such law applies, by the terms of the contract.

(b) Contracts under which the services are reimbursed through or in a manner consistent with a federal program that meets all of the following requirements:

(i) The program calculates the reimbursement rate on the basis of the previous year's experience or in accordance with an alternative method set forth in rules adopted by the Ohio department of job and family services.

(ii) The reimbursement rate is derived from a breakdown of direct and indirect costs.

(iii) The program's guidelines describe types of expenditures that are allowable and not allowable under the program and delineate which costs are acceptable as direct costs for purposes of calculating the reimbursement rate.

(iv) The program includes a uniform cost reporting system with specific audit requirements.

(c) Contracts under which the services are reimbursed through or in a manner consistent with a federal program that calculates the reimbursement rate on a fee for service basis in compliance with United States office of management and budget Circular A-87, as revised May 10, 2004.

(d) Contracts for services that are paid pursuant to the earmarking of an appropriation made by the general assembly for that purpose.

(B) Division (A) of this section does not apply if the money is disbursed to a person pursuant to a contract with the United States or a governmental entity under any of the following circumstances:

(1) The person receives the money directly or indirectly from the United States, and no governmental entity exercises any oversight or control over the use of the money.

(2) The person receives the money solely in return for the performance of one or more of the following types of services:

(a) Medical, therapeutic, or other health-related services provided by a person if the amount received is a set fee for each time the person provides the services, is determined in accordance with a fixed rate per unit of time, or is a capitated rate, and the fee or rate is reasonable and customary in the person's trade or profession;

(b) Medicaid-funded services, including administrative and management services, provided pursuant to a contract or medicaid provider agreement that meets the requirements of the medicaid program established under Chapter 5111. of the Revised Code.

(c) Services, other than administrative or management services or any of the services described in division (B)(2)(a) or (b) of this section, that are commonly purchased by the public at an hourly rate or at a set fee for each time the services are provided, unless the services are performed for the benefit of children, persons who are eligible for the services by reason of advanced age, medical condition, or financial need, or persons who are confined in a detention facility as defined in section 2921.01 of the Revised Code, and the services are intended to help promote the health, safety, or welfare of those children or persons;

(d) Educational services provided by a school to children eligible to attend that school. For purposes of division (B)(2)(d) of this section, "school" means any school operated by a school district board of education, any community school established under Chapter 3314. of the Revised Code, or any nonpublic school for which the state board of education prescribes minimum education standards under section 3301.07 of the Revised Code.

(e) Services provided by a foster home as defined in section 5103.02 of the Revised Code;

(f) "Routine business services other than administrative or management services," as that term is defined by the attorney general by rule adopted in accordance with Chapter 119. of the Revised Code;

(g) Services to protect the environment or promote environmental education that are provided by a nonprofit entity or services to protect the environment that are funded with federal grants or revolving loan funds and administered in accordance with federal law.

(3) The person receives the money solely in return for the performance of services intended to help preserve public health or safety under circumstances requiring immediate action as a result of a natural or man-made emergency.

(C) With respect to a nonprofit association, corporation, or organization established for the purpose of providing educational, technical, consulting, training, financial, or other services to its members in exchange for membership dues and other fees, any of the services provided to a member that is a governmental entity shall, for purposes of this section, be considered services "for the primary benefit of a governmental entity or the employees of a governmental entity."

Sec. 9.232. A contract entered into under section 9.231 of the Revised Code shall, at a minimum, set forth all of the following:

(A) The minimum percentage of money that is to be expended on the recipient's direct costs;

(C) If some of the recipient's obligations under the contract involve the performance of any of the types of services described in division (B)(2)(a), (c), or (f) of section 9.231 of the Revised Code, the name and telephone number of the individual designated by the governmental entity as the contact for obtaining approval of contract amounts for purposes of division (A)(2)(a)(ii) of section 9.235 of the Revised Code;

(D) The financial review and audit requirements established under section 9.234 of the Revised Code and by rules of the auditor of state adopted under section 9.238 of the Revised Code or, with respect to any contract described in division (A)(3) of section 9.231 of the Revised Code, any financial compliance requirements established for purposes of that contract;

(E) The provisions established by rules of the attorney general adopted under section 9.237 of the Revised Code;

(F) Permissible dispositions of money received by a recipient in excess of the contract payment earned, if the excess is not to be repaid to the governmental entity.

Sec. 9.233. (A) A recipient shall be entitled to the contract payment earned. In no event shall a recipient be entitled to more than the contract payment earned. A recipient shall repay any money received in excess of the contract payment earned to the governmental entity or, if a different disposition is provided for in the recipient's contract with the governmental entity, dispose of that money in accordance with the terms of the contract.

(B) In order to determine the contract payment earned, all financial books and records open to inspection pursuant to section 9.235 of the Revised Code shall be held to standards consistent with generally accepted accounting principles.

Sec. 9.234. (A) Unless otherwise explicitly provided in the Revised Code, a recipient shall do all of the following:

(1) With respect to any money received prior to the performance of the recipient's obligations under the contract entered into under section 9.231 of the Revised Code, and any money received in excess of the contract payment earned, keep current and accurate records of the receipt and use of the money in a manner consistent with the contract;

(2) With respect to any money received after the recipient has performed its obligations under the contract entered into under section 9.231 of the Revised Code, keep current and accurate records of the recipient's expenditures on direct costs;

(3) Annually provide the contracting authority of the governmental entity with a report that includes both of the following:

(a) (i) Subject to division (A)(3)(a)(ii) of this section, an audit report, if a financial audit is required by division (B)(3) of this section; a financial review, if a financial review is required by division (B)(2) of this section; a financial review, if a financial review is required by division (B)(1) of this section and is not waived; or financial statements, major categories of expenditure of the money, and a summary of the activities for which the recipient used the money.

(ii) With respect to any contract described in division (A)(3) of section 9.231 of the Revised Code, an audit report or financial review if the performance of a financial audit or review is a compliance requirement established for purposes of that contract.

(B) (1) A recipient that, pursuant to one or more contracts entered into under section 9.231 of the Revised Code, receives money totaling at least one hundred thousand dollars but less than three hundred thousand dollars in any fiscal year shall have a financial review performed for each fiscal year in which it receives that amount of money in accordance with the financial review standards of the American institute of certified public accountants. The financial review shall be performed by an independent public accounting firm. The financial review contract between the recipient and the firm shall provide that the state is an intended third-party beneficiary of the contract.

This financial review requirement may be waived, however, if the contracting authority of each governmental entity from which the recipient received money that fiscal year pursuant to a contract entered into under section 9.231 of the Revised Code agrees to the waiver.

(2) A recipient that, pursuant to one or more contracts entered into under section 9.231 of the Revised Code, receives money totaling at least three hundred thousand dollars but less than five hundred thousand dollars in any fiscal year shall have a financial review performed for each fiscal year in which it receives that amount of money in accordance with the financial review standards of the American institute of certified public accountants. The financial review shall be performed by an independent public accounting firm. The financial review contract between the recipient and the firm shall provide that the state is an intended third-party beneficiary of the contract.

(3) A recipient that, pursuant to one or more contracts entered into under section 9.231 of the Revised Code, receives money totaling five hundred thousand dollars or more in any fiscal year shall have a financial audit performed for each fiscal year in which it receives that amount of money according to generally accepted auditing standards by an independent public accounting firm. The engagement letter between the recipient and the firm shall provide that the state is an intended third-party beneficiary of the contract. The audit shall comply with rules adopted by the auditor of state under section 9.238 of the Revised Code. An audit performed pursuant to the federal "Single Audit Act of 1984," 98 Stat. 2327, 31 U.S.C. 7501 et seq., as amended, is sufficient if the state is an intended third-party beneficiary of the audit contract.

(C)(1) An audit conducted by the auditor of state pursuant to any other provision of the Revised Code is sufficient for purposes of division (B) of this section.

(2) A financial audit meeting the requirements of division (B)(3) of this section satisfies the financial review requirements of divisions (B)(1) and (2) of this section.

(3) The references in division (B) of this section to fiscal year mean the recipient's fiscal year.

(D) Nothing in this section shall be construed to limit in any way the authority of the auditor of state to conduct audits pursuant to any other provision of the Revised Code.

Sec. 9.235. (A)(1) Subject to division (A)(2) of this section, the financial books and records of a recipient, and the financial books and records of any person with which the recipient contracts for the performance of the recipient's obligations under the recipient's contract with the governmental entity, shall be open to inspection by the governmental entity and by the state from the time the recipient first applies for payment under the contract. If the recipient is paid before the performance of its obligations under the contract, the financial books and records of the recipient and of any person with which the recipient contracts for the performance of the recipient's obligations shall be open to inspection from the first anniversary of the payment or from any earlier date that the contract may provide.

(2) Division (A)(1) of this section does not apply to any person that contracts with the recipient solely for the performance of some of the recipient's obligations under the recipient's contract with the governmental entity that directly benefit the recipient's patients or clients, if either of the following applies:

(a) The services provided by the person are any of the types of services described in division (B)(2)(a), (c), or (f) of section 9.231 of the Revised Code and the full amount of the person's contract constitutes direct costs for the recipient and is reasonable and customary in the person's trade or profession. For purposes of division (A)(2)(a) of this section, the amount of the person's contract with the recipient shall be considered "reasonable and customary in the person's trade or profession" if any of the following applies:

(i) The amount is equal to or less than the maximum amount for those services specified in the recipient's contract with the governmental entity.

(ii) The amount was approved by the governmental entity after the recipient entered into the contract with the governmental entity.

(iii) A maximum amount for those services was specified in the recipient's contract with the governmental entity, the recipient's original contract with a person for the performance of those services was subsequently canceled or otherwise unfulfilled, the recipient entered into a replacement contract with another person, and the amount of that contract is not more than twenty-five per cent above the maximum amount for the services specified in the recipient's contract with the governmental entity.

(b) The services provided by the person are any of the types of services described in division (B)(2)(b), (d), or (e) of section 9.231 of the Revised Code.

(B)(1) Subject to division (B)(2) of this section, if a recipient contracts with another person for the performance of some or all of the recipient's obligations under the recipient's contract with the governmental entity, the recipient shall be entitled to claim spending by the other person as direct costs only to the extent the other person has spent money on direct costs in the performance of the recipient's obligations and only if the other person complies with all of the terms and conditions relating to the performance that the recipient is required to comply with under the contract with the governmental entity.

(2) The conditions set forth in division (B)(1) of this section do not apply with respect to any person described in division (A)(2) of this section.

(C)(1) Nothing in this section shall be construed as making any record of the receipt or expenditure of nonpublic money a public record for purposes of section 149.43 of the Revised Code.

(2) Division (C)(1) of this section does not limit in any way the authority of the auditor of state to conduct audits or other investigations when public money is commingled with nonpublic money.

Sec. 9.236. (A) A recipient is liable to repay to the governmental entity any money received in excess of the contract payment earned.

(B)(1) A governmental entity may bring a civil action for the recovery of money due to the governmental entity from a recipient under division (A) of this section. In such an action, any person with which the recipient has contracted for the performance of the recipient's material obligations to a group of beneficiaries under the recipient's contract with the governmental entity may be made a party defendant if the person is unable to demonstrate to the satisfaction of the governmental entity that the person has materially complied with the terms of the contract with the recipient. In such a case, the person may be made a party defendant and the governmental entity may obtain a judgment against the person in accordance with division (B)(2) of this section.

(2) If a governmental entity obtains a judgment against a recipient in a civil action brought under division (B)(1) of this section and the judgment is uncollectible, the governmental entity may recover from the person with which the recipient contracted an amount not exceeding the lesser of the following:

(b) The total amount received by the person from the recipient minus the total amount spent by the person on direct costs for services actually performed and retained by the person as allocable nondirect costs associated with those direct costs.

(C) If a governmental entity, pursuant to this section, obtains a judgment against a recipient or against a person with which the recipient contracted and that judgment debtor does not voluntarily pay the amount of the judgment, that judgment debtor shall be precluded from contracting with a governmental entity to the extent provided in divisions (A) and (B) of section 9.24 of the Revised Code for a debtor against whom a finding of recovery has been issued.

(D) In addition to other remedies provided in divisions (A) to (C) of this section, a governmental entity may void a contract between a recipient and another person for the performance by the other person of the recipient's obligations under the recipient's contract with the governmental entity to the extent that the other person has not yet performed its obligations under the contract or cannot demonstrate that the money it received was expended on direct costs or retained as allocable nondirect costs.

(E) If a recipient is liable to repay money to a governmental entity under this section and the judgment obtained by the governmental entity against the recipient is uncollectible, then in addition to other remedies provided in divisions (A) to (C) of this section, and after the governmental entity has obtained a judgment against any necessary third party, the governmental entity may void any of the following contracts:

(1) A contract made not more than one hundred eighty days before the judgment against the recipient became uncollectible between the recipient and a director, trustee, or officer of the recipient or a business in which a director, trustee, or officer of the recipient has a material financial interest, if either of the following applies:

(a) The recipient has paid substantial value for property received and the property can be returned to the other person. If the property has experienced only normal wear and tear, the person shall be liable to the governmental entity for the full amount the recipient paid for the property. Otherwise, the person shall be liable to the governmental entity only for the market value of the property.

(b) The person with which the recipient contracted has received money that the recipient obtained pursuant to the contract with the governmental entity and the money was not expended on direct costs or retained as allocable nondirect costs. In such a case, the governmental entity may void the contract to the extent the money was not expended on direct costs or retained as allocable nondirect costs, and the person shall be liable to the governmental entity for that amount.

(2) A contract made not more than one hundred eighty days before the judgment against the recipient became uncollectible between the recipient and an employee of the recipient or a business in which an employee of the recipient has a material financial interest, if the employee has direct knowledge of the use of the money that the recipient obtained pursuant to the contract with the governmental entity and either division (E)(1)(a) or (b) of this section applies;

(3) A contract between the recipient and another person pursuant to which the recipient has paid or agreed to pay money to the other person, to the extent that the other person has not yet performed its obligations under the contract;

(4) A contract made not more than one year before the judgment against the recipient became uncollectible between the recipient and a person other than the governmental entity if the other person has not given or agreed to give consideration of reasonable and substantial value for the consideration given by the recipient.

Sec. 9.237. The attorney general shall adopt rules in accordance with Chapter 119. of the Revised Code governing the terms of any contract entered into under section 9.231 of the Revised Code. The rules shall set forth all of the following:

(A) A definition of permissible components of direct costs, including a list of expenditures that may never be included in direct costs and a nonexclusive list of expenditures that may be included in direct costs pursuant to agreement of the parties;

(B) Permissible methods by which a recipient may keep records documenting direct costs and how long those records must be retained;

(D) Terms to be included in contracts between recipients and persons other than the governmental entity, including the notice of the remedies available to the governmental entity if the money under the contract with the governmental entity is not expended on direct costs or retained as allocable nondirect costs or, with respect to any contract described in division (A)(3) of section 9.231 of the Revised Code, is not earned under the terms of the contract with the governmental entity;

(E) Any other provisions that the attorney general considers necessary to carry out the purposes of sections 9.23 to 9.236 of the Revised Code.

Sec. 9.238. (A) The auditor of state shall prescribe a single form of the financial reviews required by divisions (B)(1) and (2) of section 9.234 of the Revised Code to be used for all governmental entities.

(B)The auditor of state may adopt rules in accordance with Chapter 119. of the Revised Code governing the form and content of the audit reports required by division (B)(3) of section 9.234 of the Revised Code and may prescribe a single form of the report to be used for all governmental entities. Upon request made by a recipient, the auditor of state shall, to the extent possible, require all governmental entities that have entered into a contract with that recipient under section 9.231 of the Revised Code to accept a particular audit report.

Sec. 9.239. (A) There is hereby created the government contracting advisory council. The attorney general and auditor of state shall consult with the council on the performance of their rule-making functions under sections 9.237 and 9.238 of the Revised Code and shall consider any recommendations of the council. The director of job and family services shall annually report to the council the cost methodology of the medicaid-funded services described in division (A)(3)(d) of section 9.231 of the Revised Code. The council shall consist of the following members or their designees:

(B) If an agency or organization represented on the council ceases to exist in the form it has on the effective date of this section, the successor agency or organization shall be represented in its place. If there is no successor agency or organization, or if it is not clear what agency or organization is the successor, the attorney general shall designate an agency or organization to be represented in place of the agency or organization originally represented on the council.

(C) The two members appointed to the council shall serve three-year terms. Original appointments shall be made not later than sixty days after the effective date of this section. Vacancies on the council shall be filled in the same manner as the original appointment.

(D) The attorney general or the attorney general's designee shall be the chairperson of the council. The council shall meet at least once every two years to review the rules adopted under sections 9.237 and 9.238 of the Revised Code and to make recommendations to the attorney general and auditor of state regarding the adoption, amendment, or repeal of those rules. The council shall also meet at other times as requested by the attorney general or auditor of state.

(F) The office of the attorney general shall provide necessary staff, facilities, supplies, and services to the council.

Sec. 9.24. (A) Except as may be allowed under division (F) of this section, no state agency and no political subdivision shall award a contract as described in division (G)(1) of this section for goods, services, or construction, paid for in whole or in part with state funds, to a person against whom a finding for recovery has been issued by the auditor of state on and after January 1, 2001, if the finding for recovery is unresolved.

A contract is considered to be awarded when it is entered into or executed, irrespective of whether the parties to the contract have exchanged any money.

(B) For purposes of this section, a finding for recovery is unresolved unless one of the following criteria applies:

(1) The money identified in the finding for recovery is paid in full to the state agency or political subdivision to whom the money was owed;

(2) The debtor has entered into a repayment plan that is approved by the attorney general and the state agency or political subdivision to whom the money identified in the finding for recovery is owed. A repayment plan may include a provision permitting a state agency or political subdivision to withhold payment to a debtor for goods, services, or construction provided to or for the state agency or political subdivision pursuant to a contract that is entered into with the debtor after the date the finding for recovery was issued.

(3) The attorney general waives a repayment plan described in division (B)(2) of this section for good cause;

(4) The debtor and state agency or political subdivision to whom the money identified in the finding for recovery is owed have agreed to a payment plan established through an enforceable settlement agreement.

(5) The state agency or political subdivision desiring to enter into a contract with a debtor certifies, and the attorney general concurs, that all of the following are true:

(a) Essential services the state agency or political subdivision is seeking to obtain from the debtor cannot be provided by any other person besides the debtor;

(b) Awarding a contract to the debtor for the essential services described in division (B)(5)(a) of this section is in the best interest of the state;

(6) The debtor has commenced an action to contest the finding for recovery and a final determination on the action has not yet been reached.

(C) The attorney general shall submit an initial report to the auditor of state, not later than December 1, 2003, indicating the status of collection for all findings for recovery issued by the auditor of state for calendar years 2001, 2002, and 2003. Beginning on January 1, 2004, the attorney general shall submit to the auditor of state, on the first day of every January, April, July, and October, a list of all findings for recovery that have been resolved in accordance with division (B) of this section during the calendar quarter preceding the submission of the list and a description of the means of resolution. The attorney general shall notify the auditor of state when a judgment is issued against an entity described in division (F)(1) of this section.

(D) The auditor of state shall maintain a database, accessible to the public, listing persons against whom an unresolved finding for recovery has been issued, and the amount of the money identified in the unresolved finding for recovery. The auditor of state shall have this database operational on or before January 1, 2004. The initial database shall contain the information required under this division for calendar years 2001, 2002, and 2003.

Beginning January 15, 2004, the auditor of state shall update the database by the fifteenth day of every January, April, July, and October to reflect resolved findings for recovery that are reported to the auditor of state by the attorney general on the first day of the same month pursuant to division (C) of this section.

(E) Before awarding a contract as described in division (G)(1) of this section for goods, services, or construction, paid for in whole or in part with state funds, a state agency or political subdivision shall verify that the person to whom the state agency or political subdivision plans to award the contract has no unresolved finding for recovery issued against the person. A state agency or political subdivision shall verify that the person does not appear in the database described in division (D) of this section or shall obtain other proof that the person has no unresolved finding for recovery issued against the person.

(F) The prohibition of division (A) of this section and the requirement of division (E) of this section do not apply with respect to the companies or agreements described in divisions (F)(1) and (2) of this section, or in the circumstance described in division (F)(3) of this section.

(1) A bonding company or a company authorized to transact the business of insurance in this state, a self-insurance pool, joint self-insurance pool, risk management program, or joint risk management program, unless a court has entered a final judgment against the company and the company has not yet satisfied the final judgment.

(2) To medicaid provider agreements under Chapter 5111. of the Revised Code ~~or payments or provider agreements under disability assistance medical assistance established under Chapter 5115. of the Revised Code~~.

(3) When federal law dictates that a specified entity provide the goods, services, or construction for which a contract is being awarded, regardless of whether that entity would otherwise be prohibited from entering into the contract pursuant to this section.

(G)(1) This section applies only to contracts for goods, services, or construction that satisfy the criteria in either division (G)(1)(a) or (b) of this ~~division~~ section. This section may apply to contracts for goods, services, or construction that satisfy the criteria in division (G)(1)(c) of this section, provided that the contracts also satisfy the criteria in either division (G)(1)(a) or (b) of this ~~division~~ section.

(a) The cost for the goods, services, or construction provided under the contract is estimated to exceed twenty-five thousand dollars.

(b) The aggregate cost for the goods, services, or construction provided under multiple contracts entered into by the particular state agency and a single person or the particular political subdivision and a single person within the fiscal year preceding the fiscal year within which a contract is being entered into by that same state agency and the same single person or the same political subdivision and the same single person, exceeded fifty thousand dollars.

(2) "Political subdivision" means a political subdivision as defined in section 9.82 of the Revised Code that has received more than fifty thousand dollars of state money in the current fiscal year or the preceding fiscal year.

(3) "Finding for recovery" means a determination issued by the auditor of state, contained in a report the auditor of state gives to the attorney general pursuant to section 117.28 of the Revised Code, that public money has been illegally expended, public money has been collected but not been accounted for, public money is due but has not been collected, or public property has been converted or misappropriated.

(4) "Debtor" means a person against whom a finding for recovery has been issued.

(6) "State money" does not include funds the state receives from another source and passes through to a political subdivision.

(1) "Governmental entity" and "a judgment is uncollectible" have the same meanings as in section 9.23 of the Revised Code.

(2) "Recipient" means a person that enters into or is awarded a contract with a governmental entity for the provision of goods, services, or construction.

(B) A recipient is liable to repay to the governmental entity any money received but not earned under the terms of the contract with the governmental entity.

(C)(1) A governmental entity may bring a civil action for the recovery of money due to the governmental entity from a recipient under division (B) of this section. In such an action, any person with which the recipient has contracted for the performance of the recipient's material obligations under the recipient's contract with the governmental entity may be made a party defendant if the person is unable to demonstrate to the satisfaction of the governmental entity that the person has materially complied with the terms of the contract with the recipient. In such a case, the person may be made a party defendant and the governmental entity may obtain a judgment against the person in accordance with division (C)(2) of this section.

(2) If a governmental entity obtains a judgment against a recipient in a civil action brought under division (C)(1) of this section and the judgment is uncollectible, the governmental entity may recover from the person with which the recipient contracted an amount not exceeding the lesser of the following:

(b) The total amount received by the person from the recipient minus the total amount earned by the person under the terms of the recipient's contract with the governmental entity.

(D) If a governmental entity, pursuant to this section, obtains a judgment against a recipient or against a person with which the recipient contracted and that judgment debtor does not voluntarily pay the amount of the judgment, that judgment debtor shall be precluded from contracting with a governmental entity to the extent provided in divisions (A) and (B) of section 9.24 of the Revised Code for a debtor against whom a finding of recovery has been issued.

(E) In addition to other remedies provided in divisions (B) to (D) of this section, a governmental entity may void a contract between a recipient and another person for the performance by the other person of the recipient's obligations under the recipient's contract with the governmental entity to the extent that the other person has not yet performed its obligations under the contract.

(F) If a recipient is liable to repay money to a governmental entity under this section and the judgment obtained by the governmental entity against the recipient is uncollectible, then in addition to other remedies provided in divisions (B) to (D) of this section, and after the governmental entity has obtained a judgment against any necessary third party, the governmental entity may void any of the following contracts:

(b) The person with which the recipient contracted has received money that the recipient obtained pursuant to the contract with the governmental entity and has used the money other than for the performance of the contract. In such a case, the governmental entity may void the contract to the extent that the person has used the money other than for the performance of the contract, and the person shall be liable to the governmental entity for that amount.

(G) This section does not apply with respect to any contract entered into by a governmental entity under section 9.231 of the Revised Code that is subject to section 9.236 of the Revised Code.

Sec. 9.833. (A) As used in this section, "politicalsubdivision" means a municipal corporation, township, county,~~school district,~~ or other body corporate and politic responsiblefor governmental activities in a geographic area smaller thanthat of the state, and agencies and instrumentalities of these entities. For purposes of this section, a school district is not a "political subdivision."

(B) Political subdivisions that provide health carebenefits for their officers or employees may do any of thefollowing:

(1) Establish and maintain an individual self-insuranceprogram with public moneys to provide authorized health carebenefits, including but not limited to, health care, prescription drugs, dental care, and vision care, in accordance with division (C) of this section;

(2) After establishing an individual self-insuranceprogram, agree with other political subdivisions that haveestablished individual self-insurance programs for health carebenefits, that their programs will be jointly administered in amanner specified in the agreement;

(3) Pursuant to a written agreement and in accordance withdivision (C) of this section, join in any combination with otherpolitical subdivisions to establish and maintain a jointself-insurance program to provide health care benefits;

(4) Pursuant to a written agreement, join in anycombination with other political subdivisions to procure orcontract for policies, contracts, or plans of insurance toprovide health care benefits for their officers and employeessubject to the agreement;

(5) Use in any combination any of the policies, contracts,plans, or programs authorized under this division.

(C) Except as otherwise provided in division (E) of thissection, the following apply to individual or jointself-insurance programs established pursuant to this section:

(1) Such funds shall be reserved as are necessary, in theexercise of sound and prudent actuarial judgment, to coverpotential cost of health care benefits for the officers andemployees of the political subdivision. A report of amounts soreserved and disbursements made from such funds, together with awritten report of a member of the American academy of actuariescertifying whether the amounts reserved conform to therequirements of this division, are computed in accordance withaccepted loss reserving standards, and are fairly stated inaccordance with sound loss reserving principles, shall beprepared and maintained, within ninety days after the last day ofthe fiscal year of the entity for which the report is providedfor that fiscal year, in the office of the program administratordescribed in division (C)(3) of this section.

The report required by division (C)(1) of this sectionshall include, but not be limited to, disbursements made for theadministration of the program, including claims paid, costs of thelegal representation of political subdivisions and employees, andfees paid to consultants.

The program administrator described in division (C)(3) ofthis section shall make the report required by this divisionavailable for inspection by any person at all reasonable timesduring regular business hours, and, upon the request of suchperson, shall make copies of the report available at cost withina reasonable period of time.

(2) Each political subdivision shall reserve fundsnecessary for an individual or joint self-insurance program in aspecial fund that may be established for political subdivisions other than an agency or instrumentality pursuant to an ordinance orresolution of the political subdivision and not subject tosection 5705.12 of the Revised Code. An agency or instrumentality shall reserve the funds necessary for an individual or joint self-insurance program in a special fund established pursuant to a resolution duly adopted by the agency's or instrumentality's governing board. The political subdivisionmay allocate the costs of insurance or any self-insuranceprogram, or both, among the funds or accounts ~~in thesubdivision's treasury~~ established under this division on the basis of relative exposure and lossexperience.

(3) A contract may be awarded, without the necessity ofcompetitive bidding, to any person, political subdivision,nonprofit corporation organized under Chapter 1702. of theRevised Code, or regional council of governments created underChapter 167. of the Revised Code for purposes of administrationof an individual or joint self-insurance program. No suchcontract shall be entered into without full, prior, publicdisclosure of all terms and conditions. The disclosure shallinclude, at a minimum, a statement listing all representationsmade in connection with any possible savings and losses resultingfrom the contract, and potential liability of any politicalsubdivision or employee. The proposed contract and statementshall be disclosed and presented at a meeting of the politicalsubdivision not less than one week prior to the meeting at whichthe political subdivision authorizes the contract.

A contract awarded to a nonprofit corporation or a regional council of governments under this division may provide that all employees of the nonprofit corporation or regional council of governments and the employees of all entities related to the nonprofit corporation or regional council of governments may be covered by the individual or joint self-insurance program under the terms and conditions set forth in the contract.

(4) The individual or joint self-insurance program shallinclude a contract with a member of the American academy ofactuaries for the preparation of the written evaluation of thereserve funds required under division (C)(1) of this section.

(5) A joint self-insurance program may allocate the costsof funding the program among the funds or accounts ~~in thetreasuries of~~ established under this division to the participating political subdivisions on thebasis of their relative exposure and loss experience.

(6) An individual self-insurance program may allocate the costs of fundingtheprogram among the funds or accounts ~~in the treasury of~~ established under this division to the politicalsubdivision that established the program.

(7) Two or more political subdivisions may also authorizethe establishment and maintenance of a joint health care costcontainment program, including, but not limited to, the employmentof risk managers, health care cost containment specialists, andconsultants, for the purpose of preventing and reducing healthcare costs covered by insurance, individual self-insurance, or jointself-insurance programs.

(8) A political subdivision is not liable under a jointself-insurance program for any amount in excess of amountspayable pursuant to the written agreement for the participationof the political subdivision in the joint self-insurance program.Under a joint self-insurance program agreement, a politicalsubdivision may, to the extent permitted under the writtenagreement, assume the risks of any other political subdivision. A joint self-insurance program established under this section isdeemed a separate legal entity for the public purpose of enablingthe members of the joint self-insurance program to obtaininsurance or to provide for a formalized, jointly administeredself-insurance fund for its members. An entity created pursuantto this section is exempt from all state and local taxes.

(9) Any political subdivision, other than an agency or instrumentality, may issue general obligationbonds, or special obligation bonds that are not payable fromreal or personal property taxes, and may also issue notes inanticipation of such bonds, pursuant to an ordinance orresolution of its legislative authority or other governing bodyfor the purpose of providing funds to pay expenses associatedwith the settlement of claims, whether by way of a reserve orotherwise, and to pay the political subdivision's portion of thecost of establishing and maintaining an individual or jointself-insurance program or to provide for the reserve in thespecial fund authorized by division (C)(2) of this section.

In its ordinance or resolution authorizing bonds or notesunder this section, a political subdivision may elect to issuesuch bonds or notes under the procedures set forth in Chapter133. of the Revised Code. In the event of such an election,notwithstanding Chapter 133. of the Revised Code, the maturity ofthe bonds may be for any period authorized in the ordinance orresolution not exceeding twenty years, which period shall be themaximum maturity of the bonds for purposes of section 133.22 ofthe Revised Code.

Bonds and notes issued under this section shall not beconsidered in calculating the net indebtedness of the politicalsubdivision under sections 133.04, 133.05, 133.06, and 133.07 ofthe Revised Code. Sections 9.98 to 9.983 of the Revised Code arehereby made applicable to bonds or notes authorized under thissection.

(10) A joint self-insurance program is not an insurancecompany. Its operation does not constitute doing an insurancebusiness and is not subject to the insurance laws of this state.

(D) A political subdivision may procure group life insurance for its employees in conjunction with an individual or joint self-insurance program authorized by this section, provided that the policy of group life insurance is not self-insured.

(E) Divisions (C)(1), (2), and (4) of this section do notapply to individual self-insurance programs in municipalcorporations, townships, or counties.

(F) A public official or employee of a political subdivision who is or becomes a member of the governing body of the program administrator of a joint self-insurance program in which the political subdivision participates is not in violation of division (D) or (E) of section 102.03, division (C) of section 102.04, or section 2921.42 of the Revised Code as a result of either of the following:

(1) The political subdivision's entering under this section into the written agreement to participate in the joint self-insurance program;

(2) The political subdivision's entering under this section into any other contract with the joint self-insurance program.

Sec. 9.90. (A) The governing board of any publicinstitution of higher education, including without limitationstate universities and colleges, community college districts,university branch districts, technical college districts, andmunicipal universities, ~~or the board of education of any schooldistrict,~~ may, in addition to all other powers provided in theRevised Code:

(1) Contract for, purchase, or otherwise procure from aninsurer or insurers licensed to do business by the state of Ohiofor or on behalf of such of its employees as it may determine,life insurance, or sickness, accident, annuity, endowment,health, medical, hospital, dental, or surgical coverage andbenefits, or any combination thereof, by means of insurance plansor other types of coverage, family, group or otherwise, and maypay from funds under its control and available for such purposeall or any portion of the cost, premium, or chargefor such insurance, coverage, or benefits. However, the governingboard, in addition to or as an alternative to the authority otherwisegranted by division (A)(1) of this section, may elect to procurecoverage for health care services, for or on behalf of such of its employeesas it may determine, by means of policies,contracts, certificates, or agreements issued by at least twohealth insuring corporations holding a certificate of authorityunder Chapter 1751. of the Revised Code and maypay from fundsunder the governing board's control and available for such purpose all orany portion of the cost of such coverage.

(2) Make payments to a custodial account for investment inregulated investment company stock for the purpose of providingretirement benefits as described in section 403(b)(7) of theInternal Revenue Code of 1954, as amended. Such stock shall bepurchased only from persons authorized to sell such stock in thisstate.

Any income of an employee deferred under divisions (A)(1)and (2) of this section in a deferred compensation programeligible for favorable tax treatment under the Internal RevenueCode of 1954, as amended, shall continue to be included asregular compensation for the purpose of computing thecontributions to and benefits from the retirement system of suchemployee. Any sum so deferred shall not be included in thecomputation of any federal and state income taxes withheld onbehalf of any such employee.

(B) All or any portion of the cost, premium, or chargetherefor may be paid in such other manner or combination ofmanners as the governing board ~~or the school board~~ may determine,including direct payment by the employee in cases under division(A)(1) of this section, and, if authorized in writing by theemployee in cases under division (A)(1) or (2) of this section,by such governing board ~~or school board~~ with moneys madeavailable by deduction from or reduction in salary or wages or bythe foregoing of a salary or wage increase. Division (B)(7) ofsection 3917.01 and the last paragraph of section 3917.06 of theRevised Code shall not prohibit the issuance or purchase of grouplife insurance authorized by this section by reason of payment ofpremiums therefor by the governing board ~~or the school board~~ fromits funds, and such group life insurance may be so issued andpurchased if otherwise consistent with the provisions of sections3917.01 to 3917.07 of the Revised Code.

(C) The board of education of any school district may exercise any of the powers granted to the governing boards of public institutions of higher education under divisions (A) and (B) of this section, except in relation to the provision of health care benefits to employees. All health care benefits provided to persons employed by the public schools of this state shall be medical plans designed by the school employees health care board pursuant to section 9.901 of the Revised Code.

Sec. 9.901. (A)(1) All health care benefits provided to persons employed by the public schools of this state shall be provided by medical plans designed pursuant to this section by the school employees health care board. The board, in consultation with the superintendent of insurance, shall negotiate with and, in accordance with the competitive selection procedures of Chapter 125. of the Revised Code, contract with one or more insurance companies authorized to do business in this state for the issuance of the plans. Any or all of the medical plans designed by the board may be self-insured. All self-insured plans adopted shall be administered by the board in accordance with this section. As used in this section, a "public school" means a school in a city, local, exempted village, or joint vocational school district, and includes the educational service centers associated with those schools.

(2) Prior to soliciting proposals from insurance companies for the issuance of medical plans, the board shall determine what geographic regions exist in the state based on the availability of providers, networks, costs, and other factors relating to providing health care benefits. The board shall then determine what medical plans are offered by school districts and existing consortiums in the state. The board shall determine what medical plan offered by a school district or existing consortium in the region offers the lowest premium cost plan.

(3) The board shall develop a request for proposals and solicit bids for medical plans for the school districts in a region similar to the existing plans. The board shall also determine the benefits offered by existing medical plans, the employees' costs, and the cost-sharing arrangements used by public schools participating in a consortium. The board shall determine what strategies are used by the existing medical plans to manage health care costs and shall study the potential benefits of state or regional consortiums of public schools offering multiple health care plans.

(4) As used in this section, a "medical plan" includes group policies, contracts, and agreements that provide hospital, surgical, or medical expense coverage, including self-insured plans. A "medical plan" does not include an individual plan offered to the employees of a public school, or a plan that provides coverage only for specific disease or accidents, or a hospital indemnity, medicare supplement, or other plan that provides only supplemental benefits, paid for by the employees of a public school.

(B) The school employees health care board is hereby created. The school employees health care board shall consist of the following nine members and shall include individuals with experience with public school benefit programs, health care industry providers, and medical plan beneficiaries:

A member of the school employees health care board shall not be employed by, represent, or in any way be affiliated with a private entity that is providing services to the board, an individual school district, employers, or employees in the state of Ohio.

(C)(1) Members of the school employees health care board shall serve four-year terms; however, one of each of the initial members appointed under divisions (B)(1) to (3) of this section shall be appointed to a term of one year. The initial appointments under this section shall be made within forty-five days after the effective date of this section.

Members' terms shall end on the same day of the same month as the effective date of this section, but a member shall continue to serve subsequent to the expiration of the member's term until a successor is appointed. Any vacancy occurring during a member's term shall be filled in the same manner as the original appointment, except that the person appointed to fill the vacancy shall be appointed to the remainder of the unexpired term.

(2) Members shall serve without compensation but shall be reimbursed from the school employees health care fund for actual and necessary expenses incurred in the performance of their official duties as members of the board.

(3) Members may be removed by their appointing authority for misfeasance, malfeasance, incompetence, dereliction of duty, or other just cause.

(D)(1) The governor shall call the first meeting of the school employees health care board. At that meeting, and annually thereafter, the board shall elect a chairperson and may elect members to other positions on the board as the board considers necessary or appropriate. The board shall meet at least four times each calendar year and shall also meet at the call of the chairperson or three or more board members. The chairperson shall provide reasonable advance notice of the time and place of board meetings to all members.

(2) A majority of the board constitutes a quorum for the transaction of business at a board meeting. A majority vote of the members present is necessary for official action.

(E) The school employees health care board shall conduct its business at open meetings; however, the records of the board are not public records for purposes of section 149.43 of the Revised Code.

(F) The school employees health care fund is hereby created in the state treasury. The public schools shall pay all school employees health care board plan premiums in the manner prescribed by the school employees health care board to the board for deposit into the school employees health care fund. All funds in the school employees health care fund shall be used solely for the provision of health care benefits to public schools employees pursuant to this section and related administrative costs. Premiums received by the board or insurance companies contracted pursuant to division (A) of this section are not subject to any state insurance premium tax.

(1) Design multiple medical plans, including regional plans, to provide, in the board's judgment, the optimal combination of coverage, cost, choice, and stability of health cost benefits. The board may establish more than one tier of premium rates for any medical plan. The board shall establish regions as necessary for the implementation of the board's medical plans. Plans and premium rates may vary across the regions established by the board.

(2) Set an aggregate goal for employee and employer portions of premiums for the board's medical plans so as to manage plan participation and encourage the use of value-based plan participation by employees;

(3) Set employer and employee plan copayments, deductibles, exclusions, limitations, formularies, premium shares, and other responsibilities;

(4) Include disease management and consumer education programs, to the extent that the board determines is appropriate, in all medical plans designed by the board, which programs shall include, but are not limited to, wellness programs and other measures designed to encourage the wise use of medical plan coverage. These programs are not services or treatments for purposes of section 3901.71 of the Revised Code.

(5) Create and distribute to the governor, the speaker of the house of representatives, and the president of the senate, an annual report covering the plan background; plan coverage options; plan administration, including procedures for monitoring and managing objectives, scope, and methodology; plan operations; employee and employer contribution rates and the relationship between the rates and the school employees health care fund balance; a means to develop and maintain identity and evaluate alternative employee and employer cost-sharing strategies; an evaluation of the effectiveness of cost-saving services and programs; an evaluation of efforts to control and manage member eligibility and to insure that proper employee and employer contributions are remitted to the trust fund; efforts to prevent and detect fraud; and efforts to manage and monitor board contracts;

(6) Utilize cost containment measures aligned with patient, plan, and provider management strategies in developing and managing medical plans.

(H) The sections in Chapter 3923. of the Revised Code regulating public employee benefit plans are not applicable to the medical plans designed pursuant to this section.

(I)(1) Public schools are not subject to this section prior to the release of medical plans designed pursuant to this section.

(2) Prior to the school employees health care board's release of the board's initial medical plans, the board shall contract with an independent consultant to analyze costs related to employee health care benefits provided by existing school district plans in this state. The consultant shall determine the benefits offered by existing medical plans, the employees' costs, and the cost-sharing arrangements used by public schools either participating in a consortium or by other means. The consultant shall determine what strategies are used by the existing medical plans to manage health care costs and shall study the potential benefits of state or regional consortiums of public schools offering multiple health care plans. Based on the findings of the analysis, the consultant shall submit written recommendations to the board for the development and implementation of a successful program for pooling school districts' purchasing power for the acquisition of employee medical plans. The consultant's recommendations shall address, at a minimum, all of the following issues:

(a) The establishment of regions for the provision of medical plans, based on the availability of providers and plans in the state at the time that the school employees health care board is established;

(b) The use of regional preferred provider and closed panel plans, health savings accounts, and alternative medical plans, to stabilize both costs and the premiums charged school districts and district employees;

(c) The development of a system to obtain eligibility data and data compiled pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), 100 Stat. 227, 29 U.S.C. 1161, as amended;

(e) The development of a timeline planning for the design and use of board medical plans by not later than December 31, 2007;

(f) The use of information on claims and costs and of information reported by districts pursuant to COBRA in analyzing administrative and premium costs;

(g) The experience of states that have mandated statewide medical plans for public school employees, including the implementation strategies used by those states;

(h) Recommended strategies for the use of first-year roll-in premiums in the transition from district medical plans to school employees health care board plans;

(i) The option of allowing school districts to join an existing regional consortium as an alternative to school employees health care board plans;

(j) Mandatory and optional coverages to be offered by the board's medical plans;

(k) Potential risks to the state from the use of medical plans developed pursuant to this section;

(l) Any legislation needed to ensure the long-term financial solvency and stability of a health care purchasing system;

(m) The potential impacts of any changes to the existing purchasing structure on all of the following:

(n) Issues that could arise when school districts transition from the existing purchasing structure to a new purchasing structure;

(o) Strategies available to the board in the creation of fund reserves and the need for stop-loss insurance coverage for catastrophic losses;

(p) Any legislation needed to establish and maintain medical plans designed pursuant to this section. The consultant shall submit all legislative recommendations not later than December 31, 2005, in writing, to the school employees health care board and to the governor, the speaker of the house of representatives, and the president of the senate.

(3) The public schools health care advisory committee is hereby created under the school employees health care board. The committee shall make recommendations to the school employees health care board related to the board's accomplishment of the duties assigned to the board under this section. The committee shall consist of eighteen members. The governor, the speaker of the house of representatives, and the president of the senate shall each appoint a representative from the Ohio education association, the Ohio school boards association, the Ohio association of school business officials, the Ohio association of health underwriters, an existing health care consortium serving public schools, and a health insuring corporation licensed to do business in Ohio and recommended by the Ohio association of health plans. The initial appointees shall be appointed to a one-year term not later than July 31, 2005, the members' term to begin on that date. Subsequent one-year appointments, to commence on the thirty-first day of July of each year, shall be made in the same manner. A member shall continue to serve subsequent to the expiration of the member's term until the member's successor is appointed. Any vacancy occurring during a member's term shall be filled in the same manner as the original appointment, except that the person appointed to fill the vacancy shall be appointed to the remainder of the unexpired term. The governor shall call the first meeting of each newly appointed committee. At that meeting the board shall elect a chairperson who shall call the time and place of future committee meetings. Committee members are not subject to the conditions for eligibility set by division (B) of this section for members of the school employees health care board.

(4) The school employees health care board shall submit a written study to the governor and the general assembly not later than January 15, 2006, of a plan to operate in compliance with this section, and on the governance of the school employees health care board. A copy of the board's plan of operation, including audit provisions, shall accompany the report on the board's governance and the report shall include the board's recommendations on any legislation needed to enforce the recommendations of the board on implementing the provisions of this section.

(5) Not later than January 15, 2009, and not later than the same day of each subsequent year, the school employees health care board shall submit a written report to the governor and each member of the general assembly, which report evaluates the performance of school employees health care board medical plans during the previous year. Districts offering employee health care benefits through a plan offered by a consortium of two or more districts, or a consortium of one or more districts and one or more political subdivisions as defined in section 9.833 of the Revised Code, representing five thousand or more employees as of January 1, 2005, may request permission from the school employees health care board to continue offering consortium plans to the districts' employees at the discretion of the board. If the board grants permission, the permission is valid for only one year but may be renewed annually thereafter upon application to an approval of the board. The board shall grant initial or continued approval upon finding, based on an actuarial evaluation of the existing consortium plan offerings, that benefit design, premium costs, administrative cost, and other factors considered by the board are equivalent to or lower than comparable costs of the board's plan options offered to the local district. Age and gender adjustments, benefit comparison adjustments, and the total cost of the consortium plan, including administration, benefit cost, stop-loss insurance, and all other expenses or information requested by the board shall be presented to the board prior to the board's decision to allow a local district to continue to offer health care benefits under a consortium plan. A district shall not participate in the consortium plan once the district has chosen to offer plans designed by the board to the district's employees and begins premium payments for deposit into the school employees health care fund.

(6) Any districts providing medical plan coverage for the employees of public schools, or that have provided coverage within two years prior to the effective date of this section, shall provide nonidentifiable aggregate claims data for the coverage to the school employees health care board or the department of administrative services, without charge, within thirty days after receiving a written request from the board or the department. The claims data shall include data relating to employee group benefit sets, demographics, and claims experience.

(J) The school employees health care board may contract with other state agencies as the board deems necessary for the implementation and operation of this section, based on demonstrated experience and expertise in administration, management, data handling, actuarial studies, quality assurance, or other needed services. The school employees health care board shall contract with the department of administrative services for central services until the board is able to obtain such services from other sources. The board shall reimburse the department of administrative services for the reasonable cost of those services.

(K) The board's administrative functions shall include, but are not limited to, the following:

(1) Maintaining reserves in the school employees health care fund, reinsurance, and other measures that in the judgment of the board will result in the long-term stability and solvency of the medical plans designed by the board. The board shall bill school districts, in proportion to a district's premium payments to all premium payments paid into the school employees health care fund during the previous year, in order to maintain necessary reserves, reinsurance, and administrative and operating funds. Each school district contributing to a board medical plan shall share any losses due to the expense of claims paid by the plan. In the event of a loss, the board may bill each district an amount, in proportion to the district's premium payments to all premium payments paid into the school employees health care fund during the previous year, sufficient in total to cover the loss. The state is not liable for any obligations of the school employees health care board or the school employees health care fund, or for expenses of public schools or school districts related to the board's medical plans.

(2) Providing health care information, wellness programs, and other preventive health care measures to medical plan beneficiaries, to the extent that the board determines to be appropriate;

(3) Coordinating contracts for services related to the board's medical plans. Contracts shall be approved by the school employees health care board.

(L) Not less than ninety days before coverage begins for public school employees under medical plans designed by the school employees health care board, a school district's board of education shall provide detailed information about the medical plans to the employees.

(M) Nothing in this section shall be construed as prohibiting public schools or school districts from consulting with and compensating insurance agents and brokers for professional services.

(N) The department of administrative services shall report to the governor, the speaker of the house of representatives, and the president of the senate within eighteen months after the effective date of this section on the feasibility of achieving all of the following:

(1) Designing multiple medical plans to cover persons employed by public institutions of higher education that achieve an optimal combination of coverage, cost, choice, and stability, which plans include both state and regional preferred provider plans, set employee and employer premiums, and set employee plan copayments, deductibles, exclusions, limitations, formularies, and other responsibilities. For this purpose, "public institutions of higher education" include, without limitation, state universities and colleges, state community college districts, community college districts, university branch districts, technical college districts, and municipal universities.

(2) Maintaining reserves, reinsurance, and other measures to insure the long-term stability and solvency of the medical plans;

(3) Providing appropriate health care information, wellness programs, and other preventive health care measures to medical plan beneficiaries;

Sec. 9.981. (A) Sections 9.98 to 9.983 of the RevisedCodeare applicable to bonds:

(1) The payment of the debt service on which is to beprovided for directly or indirectly by payments contracted to bemade in the bond proceedings by the absolute obligors, beingpersons other than the issuer; and

(2) Which are authorized to be issued under sections122.39to 122.62, Chapter 165., 902., 3377., 3706., division(A)(4)ofsection 4582.06, division(A)(8) of section 4582.31,section4582.48, or Chapter6121. or 6123. of the Revised Code,notwithstanding otherprovisions therein.

(B) Sections 9.98 to 9.983 of the Revised Code areapplicable to bonds issued under sections 306.37 and 6119.12 of the Revised Code and Chapters ~~133.,~~ 140., 152., 154., 175.,and 349. of the Revised Code, and to any bonds authorized underlaws which expressly make those sections applicable.

(C) Subject to division (A) of this section, the authorityprovided in sections 9.98 to 9.983 of the Revised Code issupplemental to and not in derogation of any similar authorityprovided by, derived from, or implied by, any law, the OhioConstitution, or any charter, resolution,or ordinance, and noinference shall be drawn to negate the authority thereunder byreason of the express provisions of sections 9.98 to 9.983 of theRevised Code.

(D) Sections 9.98 to 9.983 of the Revised Code shall beliberally construed to permit flexibility in the arrangementstherein provided to enhance the issuance of such bonds andprovidefor terms most beneficial and satisfactory to the personswhichundertake to provide for their payment, security, andliquidity.

Sec. 101.391. (A) There is hereby created the jointlegislativecommittee onmedicaid technology and reform. The committeemayreview or study any matter that it considers relevant to the operation of themedicaid programestablished underChapter 5111. of theRevisedCode, with priority given to the study or review of mechanisms to enhance the program's effectiveness through improved technology systems and program reform.

(B) The committee shall consist of five membersof the house of representatives appointed bythespeaker of thehouse of representatives and five members of the senateappointedbythe president of the senate. Not more than three membersappointed by thespeaker of the house of representatives and notmore than three membersappointed by the president of the senate maybe of the same political party.

Each member of the committee shall hold office during thegeneral assemblyin which the member is appointed and until asuccessor has been appointed,notwithstanding the adjournment sinedie of the general assembly in which themember was appointed orthe expiration of the member's term as a member of thegeneralassembly. Any vacancies occurring among the members of thecommitteeshall be filled in the manner of the originalappointment.

(C) The committee has the same powers as other standing or selectcommittees ofthe general assembly. The committee may employ an executive director.

Sec. 101.68. (A) ~~Within~~ Subject to division (D) of this section, within thirty days of the convening ofthe first regular session of the general assembly, each agencyrequired to submit reports or similar documents to the generalassembly pursuant to section 103.43, 3301.07, 5139.33,5501.07, 5537.17, or 5593.21 of the Revised Code shall sendwritten notice to each member of the general assembly in order todetermine whether the member desires to personally receive thereports or similar documents as they are made available by theagency. If the member desires to personally receive the reportsor similar documents as they become available, the member shallsend a written request to the agency within thirty days ofreceiving the notice.

(B) Whenever any statute or rule requires that a report,recommendation, or other similar document be submitted to thegeneral assembly under a law not cited in division (A) of thissection, to the members of the general assembly, to one house ofthe general assembly, or to the members of one house of thegeneral assembly, the requirement shall be fulfilled by thesubmission of a copy of the report, recommendation, or documentto the director of the legislative service commission, thepresident of the senate, the minority leader of the senate, thespeaker of the house of representatives, and the minority leaderof the house of representatives if both houses of the generalassembly or their members are specified, or to the director ofthe legislative service commission, the president of the senate,and the minority leader of the senate if only the senate or itsmembers are specified, or to the director of the legislativeservice commission, the speaker of the house of representatives,and the minority leader of the house of representatives if onlythe house of representatives or its members are specified. Thisdivision does not apply to items required to be distributed tomembers of the general assembly pursuant to section 103.14,149.04, 149.07, or 149.17 of the Revised Code.

(C) Each month the legislative service commission shallprovide to each member of the senate and to each member of thehouse of representatives a list of all reports, recommendations,and documents submitted to the officers of the general assemblyunder division (B) of this section. The list shall include ashort and accurate description of the content, length, and formof each report, recommendation, or document submitted, as well asa statement setting forth the number printed, if applicable, and the cost ofpreparation. Each member may request from the legislativeservice commission a copy of any report, recommendation, ordocument on the list, and the legislative service commissionshall comply with any such request.

(D) Notwithstanding any provision of the Revised Code to the contrary, whenever any statute or rule requires that an agency submit a report, recommendation, or other similar document to the general assembly or otherwise as described in division (B) of this section in a paper, book, or other hard copy format, the report, recommendation, or other document, to the extent technologically feasible, shall be submitted to the general assembly or otherwise as described in division (B) of this section through electronic means, rather than in the hard copy format, and shall be displayed by the agency on a web site it maintains.

Sec. 102.02. (A) Except as otherwise provided in division(H) of this section, all of the following shall file with the appropriate ethics commission the disclosure statement described in this division on a form prescribed by the appropriate commission: every person who is elected to or is acandidate for a state, county, or city office and every person who isappointed to fill a vacancy for an unexpired term in such anelective office; all members of the state board of education;thedirector, assistant directors, deputydirectors, division chiefs,or persons of equivalent rank of anyadministrative department ofthe state; the president or otherchief administrative officer ofevery state institution of highereducation as defined in section3345.011 of the Revised Code; the executive director and the members of the capitol square review and advisory board appointed or employed pursuant to section 105.41 of the Revised Code; thechief executive officer and the members of the board of eachstate retirement system; each employee of a state retirement board who is a state retirement system investment officer licensed pursuant to section 1707.163 of the Revised Code; the members of the Ohio retirement study council appointed pursuant to division (C) of section 171.01 of the Revised Code; employees of the Ohio retirement study council, other than employees who perform purely administrative or clerical functions; the administrator of workers' compensation and each voting member of the workers' compensation oversight commission; the chief investment officer of the bureau of workers' compensation; allmembers of the board of commissionerson grievances anddiscipline of the supreme court and the ethicscommission createdunder section 102.05 of the Revised Code; everybusiness manager,treasurer, or superintendent of a city, local,exempted village,joint vocational, or cooperative educationschooldistrict or an educational service center; every person whois electedto or is a candidate forthe office of member of aboard of education of a city, local,exempted village, jointvocational, or cooperativeeducation school district or of agoverning board of an educational servicecenter that has a totalstudent count of twelve thousand or more as mostrecentlydetermined by the department of education pursuant to section3317.03ofthe Revised Code; every person who is appointed to theboard of educationof a municipal school district pursuant todivision (B) or(F) of section 3311.71 of the Revised Code; allmembers of the board ofdirectors of a sanitary district that isestablished under Chapter 6115.of the Revised Code and organizedwholly for the purpose of providing a watersupply fordomestic,municipal, and public use, and that includes two municipal corporationsin two counties; every public official oremployee who is paid asalary or wage in accordance with schedule C of section 124.15 orschedule E-2 of section 124.152 of the Revised Code; members ofthe boardof trustees and the executive director of the tobaccouse prevention andcontrol foundation; members of the board oftrustees and the executivedirector of the southern Ohioagricultural and community developmentfoundation; and everyother public official or employeewho is designated by theappropriate ethics commission pursuant todivision (B) of thissection.

(1) The name of the person filing the statement and eachmember of the person's immediate family and all names underwhichtheperson or members of the person's immediate family dobusiness;

(2)(a) Subject to divisions (A)(2)(b) and (c) of thissection and except as otherwise provided in section 102.022 oftheRevised Code, identification of every source of income, otherthanincome from a legislative agent identified in division(A)(2)(b)of this section, received during the preceding calendaryear, inthe person's own name or by any other person forthe person's useorbenefit, by the person filing the statement, and a briefdescription of the nature of the services for which the incomewasreceived. If the person filing the statement is a member ofthegeneral assembly, the statement shall identify the amount ofeverysource of income received in accordance with the followingrangesof amounts: zero or more, but less than one thousanddollars; onethousand dollars or more, but less than ten thousanddollars; tenthousand dollars or more, but less than twenty-fivethousanddollars; twenty-five thousand dollars or more, but lessthan fiftythousand dollars; fifty thousand dollars or more, butless thanone hundred thousand dollars; and one hundred thousanddollars ormore. Division (A)(2)(a) of this section shall not beconstruedto require a person filing the statement who derivesincome from abusiness or profession to disclose the individualitems of incomethat constitute the gross income of that businessor profession,except for those individual items of income thatare attributableto the person's or, if the income is shared withthe person, thepartner's, solicitation of services or goods orperformance,arrangement, or facilitation of services orprovision of goods onbehalf of the business or profession ofclients, includingcorporate clients, who are legislative agents. A person whofiles thestatement under this section shall disclose theidentity of andthe amount of income received from a personwhothe publicofficial or employee knows or has reason to know isdoing orseeking to do business of any kind with the publicofficial's oremployee's agency.

(b) If the person filing the statement is a member of thegeneral assembly, the statement shall identify every source ofincome and the amount of that income that was received from alegislative agent during the preceding calendar year, in the person'sown nameor byany other person for the person's use or benefit, by theperson filing thestatement, and a brief description of the natureof the servicesfor which the income was received. Division(A)(2)(b) of thissection requires the disclosure of clients ofattorneys orpersons licensed under section 4732.12 of the RevisedCode, orpatients of persons certified under section 4731.14 oftheRevised Code, if those clients or patients are legislativeagents. Division (A)(2)(b) of this section requires a personfiling thestatement who derives income from a business orprofession todisclose those individual items of income thatconstitute thegross income of that business or profession thatare receivedfrom legislative agents.

(c) Except as otherwise provided in division (A)(2)(c) ofthis section, division (A)(2)(a) of this section applies toattorneys, physicians, and other persons who engage in thepractice of a profession and who, pursuant to a section of theRevised Code, the common law of this state, a code of ethicsapplicable to the profession, or otherwise, generally arerequirednot to reveal, disclose, or use confidences of clients,patients,or other recipients of professional services exceptunderspecified circumstances or generally are required tomaintainthose types of confidences as privileged communicationsexceptunder specified circumstances. Division (A)(2)(a) of thissectiondoes not require an attorney, physician, or otherprofessionalsubject to a confidentiality requirement asdescribed in division(A)(2)(c) of this section to disclose thename, other identity, oraddress of a client, patient, or otherrecipient of professionalservices if the disclosure wouldthreaten the client, patient, orother recipient of professionalservices, would reveal details ofthe subject matter for whichlegal, medical, or professionaladvice or other services weresought, or would reveal an otherwiseprivileged communicationinvolving the client, patient, or otherrecipient of professionalservices. Division (A)(2)(a) of thissection does not require anattorney, physician, or otherprofessional subject to aconfidentiality requirement as describedin division (A)(2)(c) ofthis section to disclose in the briefdescription of the natureof services required by division(A)(2)(a) of this section anyinformation pertaining to specificprofessional services renderedfor a client, patient, or otherrecipient of professionalservices that would reveal details ofthe subject matter forwhich legal, medical, or professionaladvice was sought or wouldreveal an otherwise privilegedcommunication involving theclient, patient, or other recipient ofprofessional services.

(3) The name of every corporation on file with thesecretaryof state that is incorporated in this state orholds acertificateof compliance authorizing it to do business in thisstate, trust,business trust, partnership, or association thattransactsbusiness in this state in which the person filingthe statement orany other person for the person's use andbenefit had duringthepreceding calendar year an investment of over one thousanddollarsat fair market value as of the thirty-first day ofDecember of thepreceding calendar year, or the date ofdisposition, whichever isearlier, or in which the person holdsany office or has afiduciary relationship, and a description ofthe nature of theinvestment, office, or relationship. Division(A)(3) of thissection does not requiredisclosure of the name of any bank,savings and loan association, credit union, or building and loanassociation with which the person filing the statement has adeposit or a withdrawable share account.

(4) All fee simple and leasehold interests to which theperson filing the statement holds legal title to or a beneficialinterest in real property located within the state, excluding theperson's residence and property used primarily for personalrecreation;

(5) The names of all persons residing or transactingbusiness in the state to whom the person filing the statementowes, in the person's own name or in the name of any otherperson,morethan one thousand dollars. Division (A)(5)of this sectionshall not be construedto require the disclosure of debts owed bythe person resultingfrom the ordinary conduct of a business orprofession or debts onthe person's residence or real propertyused primarily forpersonal recreation, except that thesuperintendent of financialinstitutions shall disclose thenamesof allstate-chartered savings and loan associations and ofallservicecorporations subject to regulation under division (E)(2)ofsection 1151.34 of the Revised Code to whom the superintendentinthe superintendent's own name or in the name of any otherperson owes any money,and that the superintendent and any deputysuperintendent of banks shall disclose the names of allstate-charteredbanks and all bank subsidiary corporations subjectto regulationunder section 1109.44 of the Revised Code to whomthe superintendent or deputy superintendent owes any money.

(6) The names of all persons residing or transactingbusiness in the state, other than a depository excluded underdivision (A)(3) of this section, who owe more than onethousanddollars to the person filing the statement, either in theperson'sownname or to any person for the person's use or benefit.Division(A)(6) of this sectionshall not be construed to requirethe disclosure of clients ofattorneys or persons licensed undersection 4732.12 or 4732.15 ofthe Revised Code, or patients ofpersons certified under section4731.14 of the Revised Code, northe disclosure of debts owed tothe person resulting from theordinary conduct of a business orprofession.

(7) Except as otherwise provided in section 102.022 of theRevised Code, the source of each gift of over seventy-fivedollars, or of each gift of over twenty-five dollars received byamember of the general assembly from a legislative agent, receivedby the person in the person's own name or by anyother person forthe person's use or benefit during the preceding calendaryear,exceptgifts received by will or by virtue of section 2105.06 oftheRevised Code, or received from spouses, parents, grandparents,children, grandchildren, siblings, nephews, nieces, uncles,aunts,brothers-in-law, sisters-in-law, sons-in-law,daughters-in-law,fathers-in-law, mothers-in-law, or any personto whom the personfiling the statement stands in loco parentis,or received by wayof distribution from any inter vivos ortestamentary trustestablished by a spouse or by an ancestor;

(8) Except as otherwise provided in section 102.022 of theRevised Code, identification of the source and amount of everypayment of expenses incurred for travel to destinations inside oroutside this state that is received by the person in theperson'sown nameor by any other person for the person's use or benefitandthat isincurred in connection with the person's officialduties, exceptfor expenses for travel to meetings or conventionsof a nationalor state organization to whichany state agency,including, but not limited to, any legislative agency or stateinstitution ofhighereducation as defined in section3345.011 ofthe RevisedCode,paysmembership dues, or any politicalsubdivision or anyoffice oragency of a political subdivisionpays membership dues;

(9) Except as otherwise provided in section 102.022 of theRevised Code, identification of the source of payment of expensesfor meals and other food and beverages, other than for meals andother food and beverages provided at a meeting at which thepersonparticipated in a panel, seminar, or speaking engagementor at ameeting or convention of a national or state organizationto whichany state agency, including, but not limited to, any legislativeagency orstate institution of higher education asdefined insection3345.011 of the Revised Code,pays membership dues, oranypolitical subdivision or anyoffice or agency of a politicalsubdivision pays membership dues,that are incurred in connectionwith the person's official dutiesand that exceed one hundreddollars aggregated per calendar year;

(10) If the disclosure statement is filed by apublic official or employee described in division (B)(2) ofsection 101.73 of the Revised Code or division (B)(2) of section121.63 of the Revised Code who receives a statement from alegislative agent, executive agency lobbyist, or employer thatcontains the information described in division (F)(2) of section101.73 of the Revised Code or division (G)(2) of section 121.63ofthe Revised Code, all of the nondisputed information containedinthe statement delivered to that public official or employee bythelegislative agent, executive agency lobbyist, or employerunderdivision (F)(2) of section 101.73 or (G)(2) of section121.63 ofthe Revised Code.

A person may file a statement required by this section inperson or by mail. A person who is a candidate for electiveoffice shall file the statement no later than the thirtiethdaybefore the primary, special, or general election at whichthecandidacy is to be voted on, whichever election occurssoonest,except that a person who is a write-in candidate shall file thestatement no later than the twentieth day before the earliestelection at which the person's candidacy is to be voted on. Aperson whoholds elective office shall file the statement on orbeforethefifteenth day of April of each year unless the personis acandidate foroffice. A person who is appointed to fill avacancy for anunexpired term in an elective office shall file thestatementwithin fifteen days after the person qualifies foroffice. Other personsshall file an annual statement on or beforethe fifteenth day ofApril or, if appointed or employed after thatdate, within ninetydays after appointment or employment. Noperson shall berequired to file with the appropriate ethicscommission more thanone statement or pay more than one filing feefor any onecalendar year.

The appropriate ethics commission, for good cause, mayextendfor a reasonable time the deadline for filing astatement underthis section.

A statement filed under this section is subject to publicinspection at locations designated by the appropriate ethicscommission except as otherwise provided in this section.

(B) The Ohio ethics commission, the joint legislativeethicscommittee, and the board of commissioners on grievancesanddiscipline of the supreme court, using the rule-makingproceduresof Chapter 119. of the Revised Code, may require anyclass ofpublic officials or employees under its jurisdiction andnotspecifically excluded by this section whose positions involveasubstantial and material exercise of administrative discretioninthe formulation of public policy, expenditure of public funds,enforcement of laws and rules of the state or a county or city,orthe execution of other public trusts, to file an annualstatementon or before the fifteenth day of April under division(A) of thissection. The appropriate ethics commission shallsend the publicofficials or employees written notice of therequirement by thefifteenth day of February of each year thefiling is requiredunless the public official or employee isappointed after thatdate, in which case the notice shall be sentwithin thirty daysafter appointment, and the filing shall bemade not later thanninety days after appointment.

Except for disclosurestatements filed by members of theboard of trustees and the executivedirector of the tobacco useprevention and control foundationand members of theboard oftrustees and the executive director of the southern Ohioagricultural and community development foundation, disclosurestatements filed under thisdivision with theOhio ethics commission by members of boards,commissions, orbureaus of the state for which no compensation isreceived otherthan reasonable and necessary expenses shall bekept confidential. Disclosurestatements filedwith the Ohioethics commission under division (A) of thissection by businessmanagers, treasurers, and superintendents ofcity, local, exemptedvillage, joint vocational, orcooperative education schooldistricts or educational service centers shall bekeptconfidential, except that any person conducting an audit of anysuch school districtor educational service center pursuant tosection 115.56 or Chapter 117.of the Revised Code may examine thedisclosure statement of anybusiness manager, treasurer, orsuperintendent of that schooldistrict or educational servicecenter. The Ohio ethics commission shallexamine each disclosurestatement required to be kept confidential todetermine whether apotential conflict of interest exists for theperson who filed thedisclosure statement. A potential conflictof interest exists ifthe private interests of the person, asindicated by the person'sdisclosure statement, mightinterfere with thepublic intereststhe person is required to serve in theexercise of the person'sauthority and duties inthe person's office or position ofemployment. Ifthe commission determines that a potentialconflict of interestexists, it shall notify the person who filedthe disclosurestatement and shall make the portions of thedisclosure statementthat indicate a potential conflict ofinterest subject to publicinspection in the same manner as isprovided for other disclosurestatements. Any portion of thedisclosure statement that thecommission determines does notindicate a potential conflict ofinterest shall be keptconfidential by the commission and shallnot be made subject topublic inspection, except as is necessaryfor the enforcement ofChapters 102. and 2921. of the RevisedCode and except asotherwise provided in thisdivision.

(C) No person shall knowingly fail to file, on or beforetheapplicable filing deadline established under this section, astatement that is required by this section.

(D) No person shall knowingly file a false statement thatisrequired to be filed under this section.

(E)(1) Except as provided in divisions (E)(2) and (3) ofthis section, the statement requiredby division(A) or (B) ofthis section shall be accompanied by afiling fee of forty dollars.

(2) The statement required by division (A) of this sectionshall be accompanied by the following filing fee to be paid by the person whois elected or appointed to, or is a candidate for, any of thefollowing offices:

(3) No judge of a court of record or candidate for judgeofa courtof record, and no referee or magistrate serving acourt ofrecord, shall be required to pay the fee required underdivision(E)(1) or (2) or (F) of this section.

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

(F) If a statement required to be filed under this sectionis not filed by the date on which it is required to be filed, theappropriate ethics commission shall assess the person required tofile the statement a late filing fee of ten dollars for each day the statement is not filed,except that the total amount of the late filing fee shall notexceed two hundred fifty dollars.

(G)(1) The appropriate ethics commission other than theOhioethics commission shall deposit all fees it receives underdivisions (E) and (F) of this section into the general revenuefund of the state.

(2) The Ohio ethics commission shall deposit all receipts,including, butnot limited to, fees itreceives under divisions(E) and (F) of this section and allmoneys it receives fromsettlements under division (G) of section102.06 of the RevisedCode, into the Ohio ethics commission fund,which is herebycreated in the state treasury. All moneyscredited to the fundshall be used solely for expenses related tothe operation andstatutory functions of the commission.

(H) Division (A) of this section does not apply to apersonelected or appointed to the office of precinct, ward, ordistrictcommittee member under Chapter 3517. of the RevisedCode; apresidential elector; a delegate to a nationalconvention; villageor township officials and employees; anyphysician or psychiatristwho is paid a salary or wage inaccordance with schedule C ofsection 124.15 or schedule E-2 ofsection 124.152 of the RevisedCode and whose primary duties donot require the exercise ofadministrative discretion; or anymember of a board, commission,or bureau of any county or citywho receives less than onethousand dollars per year for servingin that position.

Sec. 102.06. (A) The appropriate ethics commission shallreceive and may initiate complaints against persons subject to this chapter concerning conduct alleged to bein violation of this chapter or section 2921.42 or 2921.43 of theRevised Code. All complaints except those by the commissionshallbe by affidavit made on personal knowledge, subject to thepenalties of perjury. Complaints by the commission shall be byaffidavit, based upon reasonable cause to believe that aviolationhas occurred.

(B) The appropriate ethics commission shall investigate complaints, mayinvestigate charges presented to it, and may request furtherinformation, including the specific amount of income from asource, from any person filing with the commission a statementrequired by section 102.02 or 102.021 of the Revised Code, if theinformationsought is directly relevant to a complaint or chargesreceived bythe commission pursuant to this section. Thisinformation isconfidential, except that the commission, in its discretion, mayshare information gathered in the course of any investigationwith, or disclose the information to, the inspector general, anyappropriate prosecutingauthority, any law enforcement agency, orany other appropriateethics commission. If the accused person is a member of the public employees retirement board, state teachers retirement board, school employees retirement board, board of trustees of the Ohio police and fire pension fund, or state highway patrol retirement board, or is a voting member of the workers' compensation oversight commission the appropriate ethics commission, in its discretion, also may share information gathered in the course of an investigation with, or disclose the information to, the attorney general and the auditor of state. The person so requestedshallfurnish theinformation to the commission, unless withinfifteendays from thedate of the request the person files anaction fordeclaratoryjudgment challenging the legitimacy of therequest inthe court ofcommon pleas of the county oftheperson'sresidence,theperson'splace of employment, orFranklincounty. The requestedinformation need not be furnishedto thecommission during thependency of the judicial proceedings.Proceedings of thecommission in connection with the declaratoryjudgment actionshall be kept confidential except as otherwiseprovided by thissection. Before the commission proceeds to takeany formalactionagainst a person who is the subject of aninvestigationbased oncharges presented to the commission, acomplaint shallbe filedagainst the person. If the commissionfinds that acomplaint isnot frivolous, and there is reasonablecause tobelieve that thefacts alleged in a complaint constituteaviolation of section102.02, 102.021, 102.03, 102.04, 102.07, 2921.42, or2921.43 of the RevisedCode, it shall hold a hearing. If thecommission does not sofind, it shall dismiss the complaint andnotify the accused personin writing of the dismissal of thecomplaint. The commissionshall not make a report of its findingunless the accused personrequests a report. Upon the request ofthe accused person, thecommission shall make a public report ofits finding. The personagainst whom the complaint is directedshall be given reasonablenotice by certified mail of the date,time, and place of thehearing and a statement of the charges andthe law directlyinvolved and shall be given the opportunity toberepresented bycounsel, to have counsel appointed forthepersoniftheperson is unable to afford counsel without unduehardship,toexaminethe evidence againstthe person, toproduce evidenceand tocall andsubpoena witnesses intheperson's defense, toconfrontthe person's accusers, andtocross-examinewitnesses.The commission shall have astenographicrecord madeof thehearing. The hearing shall beclosed to thepublic.

(C)(1)(a) If, upon the basis of the hearing, the appropriate ethics commissionfinds by a preponderance of the evidence that the facts allegedinthe complaint are true and constitute a violation of section102.02, 102.021, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of theRevisedCode, it shall report its findings to the appropriateprosecutingauthority for proceedings in prosecution of theviolation and tothe appointing or employing authority of theaccused. If the accused person is a member of the public employees retirement board, state teachers retirement board, school employees retirement board, board of trustees of the Ohio police and fire pension fund, or state highway patrol retirement board, the commission also shall report its findings to the Ohio retirement study council.

(b) If the Ohio ethics commission reports its findings tothe appropriate prosecuting authority under division (C)(1)(a) ofthis section and the prosecuting authority has not initiated anyofficial action on those findings within ninety days afterreceiving the commission's report of them, the commissionmaypublicly comment that no official action has been taken onitsfindings, except that the commission shall make no comment inviolation of the Rules of Criminal Procedure or about anyindictment that has been sealed pursuant to any law or thoserules. The commission shall make no comment regarding the meritsof its findings. As used in division (C)(1)(b) of this section,"official action" means prosecution, closure after investigation,or grand jury action resulting in a true bill of indictment or notrue bill of indictment.

(2) If the appropriate ethics commission does not find byapreponderance of the evidence that the facts alleged in thecomplaint are true and constitute a violation of section 102.02, 102.021,102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Codeorif the commission has not scheduled a hearing within ninetydaysafter the complaint is filed or has not finally disposed ofthecomplaint within six months after it has been heard, it shalldismiss the complaint and notify the accused person in writing ofthe dismissal of the complaint. The commission shall not make areport of its finding unless the accused person requests areport.Upon the request of the accused person, the commissionshall makea public report of the finding, but in this case allevidence andthe record of the hearing shall remain confidentialunless theaccused person also requests that the evidence andrecord be madepublic. Upon request by the accused person, thecommission shallmake the evidence and the record available forpublic inspection.

(D) The appropriate ethics commission, or a member of the commission, mayadminister oaths, and the commission may issue subpoenas to anyperson in the state compelling the attendance of witnesses andtheproduction of relevant papers, books, accounts, and records.Thecommission shall issue subpoenas to compel the attendance ofwitnesses and the production of documents upon the request of anaccused person. Section 101.42 of the Revised Code shall governthe issuance of these subpoenas insofar as applicable. Upon therefusal of any person to obey a subpoena or to be sworn or toanswer as a witness, the commission may apply to the court ofcommon pleas of Franklin county under section 2705.03 of theRevised Code. The court shall hold proceedings in accordancewithChapter 2705. of the Revised Code. The commission or theaccusedperson may take the depositions of witnesses residingwithin orwithout the state in the same manner as prescribed bylaw for thetaking of depositions in civil actions in the courtof commonpleas.

(E) At least once each year, the Ohio ethics commissionshall report on its activities of the immediately preceding yearto the majority and minority leaders of the senate and house ofrepresentatives of the general assembly. The report shallindicate the total number of complaints received, initiated, andinvestigated by the commission, the total number of complaintsforwhich formal hearings were held, and the total number ofcomplaints for which formal prosecution was recommended orrequested by the commission. The report also shall indicate thenature of the inappropriate conduct alleged in each complaint andthe governmental entity with which any employee or official thatis the subject of a complaint was employed at the time of thealleged inappropriate conduct.

(F) All papers, records, affidavits, and documents uponanycomplaint, inquiry, or investigation relating to theproceedingsof the appropriate ethics commission shall be sealed and areprivate andconfidential, except as otherwise provided in thissection andsection 102.07 of the Revised Code.

(G)(1) When a complaint or charge is before it, the Ohioethics commission or the appropriate prosecuting authority, inconsultation with the person filing the complaint or charge, theaccused, and any other person the commission or prosecutingauthority considers necessary, may compromise or settle thecomplaint or charge with the agreement of the accused. Thecompromise or settlement may include mediation, restitution,rescission of affected contracts, forfeiture of any benefitsresulting from a violation or potential violation of law,resignation of a public official or employee, or any other reliefthat is agreed upon between the commission or prosecutingauthority and the accused.

(2) Any settlement agreement entered into under division(G)(1) of this section shall be in writing and be accompanied byastatement of the findings of the commission or prosecutingauthority and the reasons for entering into the agreement. Thecommission or prosecuting authority shall retain the agreementandstatement inthe commission's orprosecutingauthority's officeand, inthecommission's orprosecutingauthority'sdiscretion,may make the agreement, the statement, andanysupportinginformation public, unless the agreement providesotherwise.

(3) If a settlement agreement is breached by the accused,the commission or prosecuting authority, inthe commission'sorprosecuting authority'sdiscretion, may rescind theagreement andreinstitute anyinvestigation, hearing, orprosecution of theaccused. Noinformation obtained from theaccused in reaching thesettlementthat is not otherwisediscoverable from the accusedshall be usedin any proceedingbefore the commission or by theappropriateprosecuting authorityin prosecuting the violation.Notwithstanding any other section ofthe Revised Code, if asettlement agreement is breached, anystatute of limitations foraviolation of this chapter or section2921.42 or 2921.43 of theRevised Code is tolled from the date thecomplaint or charge isfiled until the date the settlementagreement is breached.

Sec. 103.132. The legislative service commission, in conjunction with the legislative information systems office, shall establish and maintain an electronic database containing current and historical revenue and expenditure data for each school district in the state that is easy to use and readily accessible through the internet.

Sec. 108.05. (A) The lieutenant governor shall be a member of thegovernor'scabinet and shall preside at its meetings in the absence of the governor.

(B) The governor may appoint the lieutenant governor as an administrativedepartment head listed in section 121.03 of the Revised Code, ~~as directorof the office of criminal justice services pursuant to section 181.52 of theRevised Code,~~ asthe governor's representative on any board, agency, committee, orcommission of which thegovernor is a member and has the authority to appoint a representative, or inan advisory capacity to any nonelective board, agency, committee, orcommission in the executive department or may give the lieutenantgovernorany special assignment as the governor considers in the interest of the state.

(C) When carrying out any of the functions described in division (B) of thissection, the lieutenant governor shall be reimbursed from funds of theparticular authority for necessary expenses incurred in the conduct ofauthority business.

Sec. 109.54. (A) The bureau of criminal identificationandinvestigation may investigate any criminal activity in thisstatethat is of statewide or intercounty concern when requestedbylocal authorities and may aid federal authorities, whenrequested,in their investigation of any criminal activity inthis state. The bureau may investigate any criminal activity in this state related to the conduct of elections when requested by the secretary of state.The bureau may investigate any criminal activity inthis stateinvolving drug abuse or illegal drug distributionprohibited underChapter 3719. or 4729. of the Revised Code. Thesuperintendentand any agent of the bureau may participate, asthe director of anorganized crime task force established undersection 177.02 of theRevised Code or as a member of theinvestigatory staff of a taskforce established under that section, in aninvestigation oforganized criminal activity anywhere within this state undersections 177.01 to 177.03 of the Revised Code.

(B) The bureau may provide any trained investigativepersonnel and specialized equipment that are requested by anysheriff or chief of police, by the authorized designee of anysheriff or chiefof police, or by any other authorized lawenforcement officer to aid andassist the officer in theinvestigation and solution of any crime orthe control of anycriminal activity occurring withinthe officer's jurisdiction.This assistance shall be furnished by the bureauwithoutdisturbing or impairing any of the existing lawenforcementauthority or the prerogatives of local lawenforcement authoritiesor officers. Investigators providedpursuant to this section, orengaged in an investigation pursuantto section 109.83 of theRevised Code, may go armed in the samemanner as sheriffs andregularly appointed police officers undersection 2923.12 of theRevised Code.

(C)(1) The bureau shall obtain recording equipment thatcanbe used to record depositions of the type described indivision(A) of section 2152.81 and division (A) ofsection2945.481 ofthe Revised Code, or testimony of the typedescribed in division(D) of section 2152.81 anddivision (D) of section2945.481 or indivision (C) of section 2937.11 of theRevised Code, shall obtainclosed circuit equipment that can be used totelevise testimony ofthe type described in division (C) ofsection 2152.81 anddivision (C) of section 2945.481or indivision (B) of section2937.11 of the Revised Code, and shallprovide the equipment, uponrequest, to any court for use inrecording any deposition ortestimony of one of those typesor in televising thetestimony inaccordance with the applicable division.

(2) The bureau shall obtain the names, addresses, andtelephone numbers of persons who are experienced in questioningchildren in relation to an investigation of a violation ofsection2905.03, 2905.05, 2907.02, 2907.03, 2907.04,2907.05, 2907.06,2907.07, 2907.09,2907.21, 2907.23, 2907.24, 2907.31, 2907.32,2907.321,2907.322, 2907.323, or 2919.22 ofthe Revised Code or anoffense of violence and shallmaintain a list of those names,addresses, and telephone numbers. Thelist shall include aclassification of the names,addresses, and telephone numbers byappellate district. Uponrequest, the bureau shall provide anycounty sheriff, chief ofpolice, prosecuting attorney, villagesolicitor, city director oflaw, or similar chief legal officerwith the name, address, andtelephone number of any personcontained in the list.

Sec. 109.57. (A)(1) The superintendent of the bureau ofcriminal identification and investigation shall procure from whereverprocurable and filefor record photographs, pictures, descriptions, fingerprints,measurements, and other information that may be pertinent ofall persons who have been convicted of committing within this state afelony, any crimeconstituting a misdemeanor on the first offense and a felony on subsequentoffenses, or any misdemeanor described in division(A)(1)(a) of section 109.572 of the Revised Code, of allchildren under eighteen years of age who have been adjudicateddelinquent children for committing within this state an act that wouldbe a felony oran offense of violence if committed by an adult or who have beenconvicted ofor pleaded guilty to committing within this state a felony or an offenseof violence, and of allwell-known and habitual criminals. The personin charge of anycounty, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-based correctionalfacility, halfway house, alternative residential facility, orstate correctional institution and the person incharge of any state institution having custody of a personsuspected of having committed a felony, any crime constitutinga misdemeanor on the first offense and a felony on subsequent offenses,or any misdemeanor described in division (A)(1)(a)of section 109.572 of the Revised Code or having custody of a childunder eighteen years of age with respect to whom there isprobablecause to believe that the child may have committed an act that wouldbe a felony oran offense of violence if committed by an adult shall furnish suchmaterialto the superintendent ofthe bureau. Fingerprints, photographs, or otherdescriptive information of a child who is under eighteen years of age,has not been arrested or otherwise taken into custody for committing an actthat would be a felony or an offense ofviolence if committed by an adult, has notbeen adjudicated a delinquent child for committing an actthat would be a felony or an offense of violenceif committed by an adult, has not been convicted ofor pleaded guilty to committing afelony or anoffense of violence, and is not a child with respect to whom there isprobable cause tobelieve that the child may have committed an actthat would be a felony oran offense of violence if committed by an adultshall not be procured by the superintendent or furnished by anyperson in charge of anycounty, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-based correctionalfacility, halfway house, alternative residential facility, orstate correctional institution, except asauthorized in section 2151.313 of the Revised Code.

(2) Every clerk of acourt of record in this state, other than thesupreme court or a court of appeals, shall send to thesuperintendent ofthe bureau a weekly report containing a summary of each caseinvolving a felony, involving any crime constituting amisdemeanor on thefirst offense and a felony on subsequent offenses, involving a misdemeanordescribed in division (A)(1)(a) of section 109.572of the Revised Code, or involving anadjudication in a case in which a child under eighteen years of age wasalleged to be a delinquent childfor committing an act that would be afelony or an offense of violence if committed byan adult. The clerkof the court of common pleas shall include in the report and summary the clerksends under this division all information described in divisions(A)(2)(a) to (f) of this sectionregarding a case before the court of appeals that is served by thatclerk. The summary shall be written on the standard formsfurnished by thesuperintendent pursuant to division (B) of this section and shallinclude the following information:

(a) The incident tracking number contained on the standard formsfurnished by the superintendent pursuant to division (B) of thissection;

(d) The date that the person was convicted of or pleaded guiltyto the offense, adjudicated a delinquent child for committing the act thatwould bea felony or anoffense of violence if committed by an adult, found not guilty of theoffense, or found not to be a delinquent child for committing an act thatwould be afelony or anoffense of violence if committed by an adult, the date of an entrydismissingthe charge, an entry declaring a mistrial of the offense in which the personis discharged, an entry finding that the person or child is not competent tostand trial, or an entry of a nolle prosequi, or the date of any otherdetermination that constitutes final resolution of the case;

(e) A statement of the original charge with the section of the Revised Codethat was alleged to be violated;

(f) If the person or child was convicted, pleaded guilty, or wasadjudicated a delinquent child, the sentence orterms of probation imposed or any other disposition of theoffender or the delinquent child.

If the offense involved the disarming of a law enforcement officer or anattempt to disarm a law enforcement officer, the clerk shallclearly state that fact in the summary, and the superintendent shall ensurethat a clear statement of that fact is placed in the bureau's records.

(3) The superintendent shall cooperate with and assistsheriffs,chiefs of police, and other law enforcement officers in the establishment ofa complete system of criminal identification and in obtainingfingerprints and other means of identification of all personsarrested on a charge of a felony, any crime constituting amisdemeanor on the first offense and a felony on subsequentoffenses, or a misdemeanor described in division(A)(1)(a) of section 109.572 of the Revised Code and of all childrenundereighteen years of age arrested or otherwise taken into custody for committingan act that wouldbe a felony or an offense of violence if committed by an adult. Thesuperintendent also shall file for record thefingerprint impressions of all persons confined in a county, multicounty,municipal, municipal-county, or multicounty-municipal jail or workhouse,community-based correctional facility, halfway house,alternative residential facility, or state correctional institution forthe violation of statelaws and of all children undereighteen years of age whoare confined in a county, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-basedcorrectional facility, halfway house, alternative residential facility, orstate correctionalinstitution or in anyfacility for delinquent children for committing an actthat would be a felony oran offense of violence if committed by an adult, and any otherinformationthat the superintendent may receive from law enforcementofficials of the state and its political subdivisions.

(4) The superintendent shall carry out Chapter 2950. oftheRevised Code with respect to the registration ofpersons who are convicted of or plead guiltyto either a sexually oriented offense that is not a registration-exempt sexually oriented offense or a child-victim oriented offense and with respect to all other duties imposed onthe bureau under that chapter.

(5) The bureau shall perform centralized recordkeeping functions for criminal history records and services in this state for purposes of the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code and is the criminal history record repository as defined in that section for purposes of that compact. The superintendent or the superintendent's designee is the compact officer for purposes of that compact and shall carry out the responsibilities of the compact officer specified in that compact.

(B) The superintendent shall prepare and furnish to everycounty, multicounty, municipal, municipal-county, ormulticounty-municipal jail or workhouse, community-based correctionalfacility, halfway house, alternative residential facility, orstate correctional institution and to every clerk of a court in thisstate specified in division (A)(2) of thissection standard forms for reporting the information requiredunder division (A) of thissection. The standard forms that the superintendent prepares pursuant tothis division may be in a tangible format, in an electronic format, or in bothtangible formats and electronic formats.

(C) The superintendent may operate a center forelectronic, automated, or other data processing for the storageand retrieval of information, data, and statistics pertaining tocriminals and to children under eighteen years of age who are adjudicateddelinquent children for committing anact that would be a felony or an offense ofviolence if committed by an adult, criminal activity, crime prevention,lawenforcement,and criminal justice, and may establish and operate a statewidecommunications network to gather and disseminate information,data, and statistics for the use of law enforcement agencies. Thesuperintendent may gather, store, retrieve, anddisseminate information, data, and statistics that pertain to children who areunder eighteen years of age and that are gathered pursuant to sections 109.57to 109.61 of the Revised Code together with information, data, andstatistics that pertain to adults and that are gathered pursuant to thosesections. In addition to any other authorized use of information, data, and statistics of that nature, the superintendent or the superintendent's designee may provide and exchange the information, data, and statistics pursuant to the national crime prevention and privacy compact as described in division (A)(5) of this section.

(D) The information and materials furnished to thesuperintendent pursuant to division (A) of this section andinformation and materials furnished to any board or person underdivision (F) or (G) of this section are not public records under section149.43 of the Revised Code.

(E) The attorney general shall adopt rules, in accordancewith Chapter 119. of the Revised Code, setting forth theprocedure by which a person may receive or release informationgathered by the superintendent pursuant todivision (A) of thissection. A reasonable fee may be charged for this service. If atemporary employment service submits a request for a determinationof whether a person the service plans to refer to an employmentposition has been convicted of or pleaded guilty to an offenselisted in division (A)(1), (3), (4), (5), or (6) of section 109.572of the Revised Code, the request shall be treated as a singlerequest and only one fee shall be charged.

(F)(1) As used in division (F)(2) of this section, "headstart agency" means an entity in this state that has beenapproved to be an agency for purposes of subchapter II of the"Community Economic Development Act," 95 Stat. 489 (1981), 42U.S.C.A. 9831, as amended.

(2)(a) In addition to or in conjunction with any request thatis required to be made under section 109.572, 2151.86, 3301.32,3301.541, 3319.39, 3701.881, 5104.012, 5104.013, 5123.081, 5126.28,5126.281, or 5153.111 of the Revised Code, the board of educationof any school district; the director of mental retardation anddevelopmental disabilities; any county board of mental retardationand developmental disabilities; any entity under contract with acounty board of mental retardation and developmentaldisabilities; the chief administrator of any chartered nonpublicschool; the chief administrator of any home health agency;the chief administrator of or person operating any childday-care center, type A family day-care home, or type B familyday-care home licensed or certified under Chapter 5104. of theRevised Code; the administrator of any type C family day-carehome certified pursuant to Section 1 of Sub. H.B. 62 of the 121stgeneral assembly or Section 5 of Am. Sub. S.B. 160 of the 121stgeneral assembly; the chief administrator of any head start agency;or the executive director of a public children services agencymay request that the superintendent of the bureau investigate anddetermine, with respect to any individual who has applied foremployment in any position after October 2, 1989, or any individualwishing to apply for employment with a board of education mayrequest, with regard to theindividual, whether the bureau has anyinformation gathered under division (A) of this section thatpertains to that individual. On receipt of the request, thesuperintendent shall determine whether that informationexistsand, upon request of the person, board, or entity requestinginformation, also shall request from the federal bureau ofinvestigation any criminal records it has pertainingto thatindividual. The superintendent or the superintendent's designee also may request criminal history records from other states or the federal government pursuant to the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code. Within thirty days of the date that the superintendentreceives arequest, the superintendent shall send to the board, entity, orperson a report of any information that the superintendentdetermines exists,including information contained in records that have been sealedunder section 2953.32 of the Revised Code, and, within thirtydays of its receipt, shall send the board, entity, or person areport of any information received from the federalbureau of investigation, other than information the disseminationof which is prohibited by federal law.

(b) When a board of education is required to receive informationunder this section as a prerequisite to employment of anindividual pursuant to section 3319.39 of the Revised Code, it may accept acertified copy of records that were issuedby the bureau of criminal identification and investigation and that arepresented by an individual applying for employment with thedistrict in lieu of requesting that information itself. In such a case, theboard shall accept the certified copy issued by the bureau in order to make aphotocopy of it for that individual's employment application documents andshall return the certified copy to the individual. In a case of that nature,a district only shallaccept a certified copy of records of that nature within one yearafter the date of their issuance by thebureau.

(3) The state board of education may request, with respectto any individual who has applied for employment after October 2,1989, in any position with the state board or the department ofeducation, any information that a school district board ofeducation is authorized to request under division (F)(2)of this section, and thesuperintendent of the bureau shall proceed as if the request hasbeen received from a school district board of education underdivision (F)(2) of this section.

(4) When the superintendent of the bureau receives arequest for information under section 3319.291of the Revised Code, the superintendent shall proceed as if therequest has been received from a school district board ofeducation under division (F)(2) of this section.

(5) When a recipient of ~~an OhioReads~~ a classroom~~orcommunity~~ readingimprovement grant paid under section 3301.86 ~~or 3301.87~~ of the RevisedCode~~or an entity approved by the OhioReads council~~requests, with respect to any individual who applies to participate inproviding any program or service~~through an entity approved by the OhioReads councilor~~funded in whole or inpart by the grant, the information that a school district board ofeducation is authorized to request under division(F)(2)(a) ofthis section, the superintendent of the bureau shall proceed as if therequest has beenreceived from a school district board of education under division(F)(2)(a) of this section.

(G) In addition to or in conjunction withany request that is required to be made under section 173.41, 3701.881,3712.09,3721.121, or 3722.151 of the RevisedCode with respect to an individual who has applied for employment ina position that involves providing direct care to an older adult, the chiefadministrator of a PASSPORT agency that provides services through thePASSPORT program created under section 173.40 of the RevisedCode, home health agency,hospice care program, home licensed under Chapter 3721.of the Revised Code, adult day-care programoperated pursuant to rules adopted under section 3721.04 of theRevised Code, or adult care facilitymay request that the superintendent of the bureauinvestigate and determine, with respect to any individual who hasapplied afterJanuary 27, 1997, for employment in a position thatdoes not involve providingdirect care to an older adult, whether the bureau has any informationgathered under division (A) of this section that pertainsto that individual. On receipt of the request, thesuperintendent shall determine whether that informationexistsand, on request of the administrator requesting information,shall also request from the federal bureau of investigation anycriminal records it has pertaining to thatindividual. The superintendent or the superintendent's designee also may request criminal history records from other states or the federal government pursuant to the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code. Withinthirty days of the date a request is received, the superintendentshall send to the administrator a report of anyinformation determined to exist, including information containedin records that have been sealed under section 2953.32 of theRevised Code, and, within thirty days of itsreceipt, shall send the administrator a report of anyinformation received from the federal bureau ofinvestigation,other than information the dissemination of which is prohibitedby federal law.

(H) Information obtained by a board,administrator, or other person under this section is confidentialand shall not be released or disseminated.

(I) The superintendent may charge a reasonable fee forproviding information or criminal records under division (F)(2)or (G) of this section.

Sec. 109.579. (A) On receipt of a request pursuant to division (B) of section 4123.444 of the Revised Code, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, drug trafficking, or any criminal offense involving money or securities, as set forth in Chapters 2909., 2911., 2913., 2915., 2921., 2923., and 2925. of the Revised Code or other law of this state, or the laws of any other state or of the United States that are substantially equivalent to those offenses.

(B) The superintendent shall conduct a criminal records check pursuant to division (A) of this section as follows:

(1) The superintendent shall review or cause to be reviewed any relevant information gathered and compiled by the bureau under division (A) of section 109.57 of the Revised Code that relates to the person who is the subject of the request, including any relevant information contained in records that have been sealed under section 2953.32 of the Revised Code.

(2) If the request received by the superintendent asks for information from the federal bureau of investigation, the superintendent shall request from the federal bureau of investigation any information it has with respect to the person who is the subject of the request. The superintendent shall review or cause to be reviewed any information that the superintendent receives from the federal bureau of investigation.

(3) The superintendent shall forward the results of a criminal records check conducted pursuant to this division to the administrator of workers' compensation.

(C)(1) The superintendent shall prescribe a form to obtain the information necessary to conduct a criminal records check from any person for whom a criminal records check is requested pursuant to division (B) of section 4123.444 of the Revised Code. The form that the superintendent prescribes pursuant to this division may be in a tangible format, in an electronic format, or in both tangible and electronic formats.

(2) The superintendent shall prescribe standard impression sheets to obtain the fingerprint impressions of any person for whom a criminal records check is requested pursuant to section 4123.444 of the Revised Code. Any person for whom the administrator requests the superintendent to conduct a criminal records check pursuant to that section shall have the person's fingerprint impressions made at a county sheriff's office, a municipal police department, or any other entity with the ability to make fingerprint impressions on the standard impression sheets prescribed by the superintendent. The office, department, or entity may charge the person a reasonable fee for making the impressions. The standard impression sheets the superintendent prescribes pursuant to this division may be in a tangible format, in an electronic format, or in both tangible and electronic formats.

(3) The superintendent may prescribe methods of forwarding fingerprint impressions and information necessary to conduct a criminal records check. The methods shall include, but are not limited to, electronic methods.

(D) A determination whether any information exists that indicates that a person previously has been convicted of or pleaded guilty to any offense listed or described in division (A) of this section that the superintendent makes pursuant to information considered in a criminal records check under this section is valid for the person who is the subject of that criminal records check for a period of one year after the date the superintendent makes that determination.

(E) The superintendent shall prescribe and charge a reasonable fee for providing a criminal records check requested under section 4123.444 of the Revised Code. If another request for a criminal records check is made under this section for a person for whom a valid determination under division (D) of this section is available, the superintendent shall provide the determination for a reduced fee.

Sec. 109.79. (A) The Ohio peace officer trainingcommissionshall establish and conduct a training school for law enforcementofficers of any political subdivision of the state or of thestate public defender's office. The school shall be known as theOhio peace officer training academy. No bailiff or deputybailiff of a court of record of this state and no criminalinvestigator employed by the state public defender shall bepermitted to attend the academy for training unless the employingcourt of the bailiff or deputy bailiff or the state publicdefender, whichever is applicable, has authorized the bailiff,deputy bailiff, or investigator to attend the academy.

The Ohio peace officer training commission shall developthetraining program, which shall include courses in both the civiland criminal functions of law enforcement officers, a course incrisis intervention with six or more hours of training, andtraining in the handling of missing children and child abuse andneglect cases, and shall establish rules governing qualificationsfor admission to the academy. The commission mayrequirecompetitive examinations to determine fitness of prospectivetrainees, so long as the examinations or other criteria foradmission to the academy are consistent with the provisions ofChapter 124. of the Revised Code.

The Ohio peace officer training commission shalldeterminetuition costs which shall be sufficient in the aggregate to paythe costs of operating the academy. The costs of acquiring andequipping the academy shall be paid from appropriations made bythe general assembly to the Ohio peace officer trainingcommissionfor that purpose, or from gifts or grants received for thatpurpose, or from fees for goods related to the academy.

The law enforcement officers, during the period of theirtraining, shall receive compensation as determined by thepolitical subdivision that sponsors them or, if the officer is acriminal investigator employed by the state public defender, asdetermined by the state public defender. The politicalsubdivision may pay the tuition costs of the law enforcementofficers they sponsor and the state public defender may pay thetuition costs of criminal investigators of that office who attendthe academy.

If trainee vacancies exist, the academy may train and issuecertificates of satisfactory completion to peace officers who areemployed by a campus police department pursuant to section1713.50 of the Revised Code, by a qualified nonprofit corporationpolice department pursuant to section 1702.80 of the RevisedCode, or by a railroad company, who are amusement park police officers appointed and commissioned by a judge of the appropriate municipal court or county court pursuant to section 4973.17 of the Revised Code, or who are hospital policeofficers appointed and commissioned by the governor pursuant tosections 4973.17 to 4973.22 of the Revised Code, provided that nosuch officer shall be trained at the academy unless the officermeets the qualifications established for admission to the academyand the qualified nonprofit corporation police department,railroad company, hospital, or amusement park or the private college oruniversity that established the campus police department prepaysthe entire cost of the training. A qualified nonprofitcorporation police department, railroad company, hospital, or amusement park or aprivate college or university that has established a campuspolice department is not entitled to reimbursement from the statefor any amount paid for the cost of training the railroadcompany's peace officers or the peace officers of the qualifiednonprofit corporation police department, campus policedepartment, hospital, or amusement park.

The academy shall permit investigators employed by thestate medical board to take selected courses that the boarddetermines are consistent with its responsibilities for initialand continuing training of investigators as required undersections 4730.26 and 4731.05 of theRevised Code. The boardshall pay the entire cost of training that investigators receiveat the academy.

(1) "Law enforcement officers" include any undercover drugagent, any bailiff or deputy bailiff of a court of record, andany criminal investigator who is employed by the state publicdefender.

(a) Is employed by a county, township, or municipalcorporation for the purposes set forth in division (B)(2)(b) ofthis section but who is not an employee of a county sheriff'sdepartment, of a township constable, or of the police departmentof a municipal corporation or township;

(b) In the course of the person's employment by a county,township,or municipal corporation, investigates and gathers informationpertaining to persons who are suspected of violating Chapter2925. or 3719. of the Revised Code, and generally does not wear auniform in the performance of the person's duties.

(3) "Crisis intervention training" has the same meaning asin section 109.71 of the Revised Code.

(4) "Missing children" has the same meaning as in section2901.30 of the Revised Code.

Sec. 109.91. (A) There is hereby established within theoffice of the attorney general the crime victims assistanceoffice.

(B) There is hereby established the state victimsassistance advisory committee. The committee shall consist of a chairperson,to be appointed by the attorney general, ~~four~~ three exofficio members, and fifteen members to be appointed by theattorney general as follows: one member who represents the Ohiovictim-witness association; three members who represent localvictim assistance programs, including one from a municipallyoperated program and one from a county-operated program; onemember who represents the interests of elderly victims; onemember who is a board member of any statewide or localorganization that exists primarily to aid victims of domesticviolence, or who is an employee of, or counselor for, such anorganization; one member who is an employee or officer of acounty probation department or a probation department operated bythe department of rehabilitation and correction; one member whois a county prosecuting attorney; one member who is a city lawdirector; one member who is a county sheriff; one member who is amember or officer of a township or municipal police department;one member who is a court of common pleas judge; one member whois a municipal court judge or county court judge; and two memberswho are private citizens and are not government employees.

The committee shall include the following ex officio,nonvotingmembers: ~~the chief justice of the supreme court,~~ the attorneygeneral, one member of the senate to be designated by thepresident of the senate, and one member of the house ofrepresentatives to be designated by the speaker of the house.

Members of the committee shall serve without compensation,butshall be reimbursed for travel and other necessary expenses thatare incurred in the conduct of their official duties as membersof the committee. The chairpersonand members of the committee appointed bythe attorney general shall serve at the pleasure of the attorneygeneral. The ~~chief justice of the supreme court and the~~ attorneygeneral shall serve on the committee until the end of theterm ofoffice that qualified ~~them~~ the attorney general for membership on thecommittee. Themember of the senate and the member of the house ofrepresentatives shall serve at the pleasure of the president ofthe senate and the speaker of the house of representatives,respectively.

(1) Advise the crime victims assistance office indetermining crime and delinquency victim service needs,determining crime and delinquency victim policies for the state,and improving and exercising leadership in the quality of crimeand delinquency victim programs in the state;

(2) Review and recommend to the crime victims assistanceoffice the victim assistance programs that should be consideredfor the receipt of state financial assistance pursuant to section109.92 of the Revised Code. The financial assistance allocationrecommendations of the committee shall be based on thefollowingpriorities:

(b) Programs offering or proposing to offer the broadestrange of services and referrals to the community served,including medical, psychological, financial, educational,vocational, and legal services that were not in existence on July1, 1985, shall be given second priority;

(D) As used in this section and section 109.92 of theRevised Code, "victim assistance program" includes, but is notlimited to a program that provides at least one of the following:

(1) Services to victims of any offense of violence ordelinquent act that would be an offense of violence if committedby an adult;

(2) Financial assistance or property repair services tovictims of crime or delinquent acts;

(4) Assistance to victims of crime or delinquent actsunder the operation of any political subdivision of the state ora branch of the criminal justice system set forth in division(B)(1)(a), ~~(2)~~(b), or ~~(3)~~(c) of section ~~181.51~~ 5502.61 of the Revised Code;

(5) Technical assistance to persons or organizations thatprovide services to victims of crime or delinquent acts under theoperation of a branch of the criminal justice system set forth in~~divisions~~ division (B)(1)(a), ~~(2)~~(b), ~~and (3)~~ or (c) of section ~~181.51~~ 5502.61 of the RevisedCode.

A victim assistance program does not include the programfor the reparation of crime victims established pursuant toChapter 2743. of the Revised Code.

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

If a member of a state retirement board breaches the member's fiduciary duty to the retirement system, the attorney general may maintain a civil action against the board member for harm resulting from that breach. ~~The~~ Notwithstanding sections 145.10, 742.09, 3307.13, 3309.13, and 5505.23 of the Revised Code, after being informed of an allegation that the entire board has breached its fiduciary duty, the state retirement board may retain independent legal counsel, including legal counsel provided by the board's fiduciary insurance carrier, to advise the board and to represent the board.

The attorney general may recover damages or be granted injunctive relief, which shall include the enjoinment of specified activities and the removal of the member from the board. Any damages awarded shall be paid to the retirement system. The authority to maintain a civil action created by this section is in addition to any authority the attorney general possesses under any other provision of the Revised Code.

Sec. 109.981. If a voting member of workers' compensation oversight commission breaches the member's fiduciary duty to the bureau of workers' compensation, the attorney general may maintain a civil action against the board member for harm resulting from that breach. Notwithstanding section 4121.128 of the Revised Code, after being informed of an allegation that the entire oversight commission has breached its fiduciary duty, the oversight commission may retain independent legal counsel, including legal counsel provided by the oversight commission's fiduciary insurance carrier, to advise the board and to represent the board. The attorney general may recover damages or be granted injunctive relief, which shall include the enjoinment of specified activities and the removal of the member from the board. Any damages awarded shall be paid to the bureau. The authority to maintain a civil action created by this section is in addition to any authority the attorney general possesses under any other provision of the Revised Code.

Sec. 117.10. The auditor of state shall audit all public offices as providedin this chapter. The auditor of state also may audit theaccounts of private institutions,associations, boards, and corporationsreceiving public money for their useand may require of them annual reports in such form as theauditor of state prescribes.

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

The auditor of state may audit the accounts of any provider as defined insection 5111.06 of the Revised Code~~, if requested by thedepartment ofjob and family services~~.

If a public office has been audited by an agency of the United Statesgovernment, the auditor of state may, if satisfied that thefederalaudit has been conducted according to principles and procedures not contraryto those of the auditor of state, use and adopt the federal audit and reportin lieu of an audit by the auditor of state's own office.

Within thirty days after the creation or dissolution or the winding up ofthe affairs of any public office, that public office shall notify the auditorof state in writing that this action has occurred.

Sec. 120.06. (A)(1) The state public defender, whendesignated by the court or requested by a county public defenderor joint county public defender, may provide legal representationin all courts throughout the state to indigent adults andjuveniles who are charged with the commission of an offense oractfor which the penalty or any possible adjudication includesthepotential loss of liberty.

(2) The state public defender may provide legalrepresentation to any indigent person who, while incarcerated inany state correctional institution, is charged with a felonyoffense,for which the penalty or any possible adjudication thatmay beimposed by a court upon conviction includes the potentialloss ofliberty.

(3) The state public defender may provide legalrepresentation to any person incarcerated in any correctionalinstitution of the state, in any matter in which the personasserts the person is unlawfully imprisoned or detained.

(4) The state public defender, in any case in which thestatepublic defender has provided legal representation or isrequested to do so bya county public defender or joint countypublic defender, mayprovide legal representation on appeal.

(5) The state public defender, when designated by thecourtor requested by a county public defender, joint countypublicdefender, or the director of rehabilitation andcorrection, shallprovide legal representation in parole andprobation revocationmattersor matters relating to the revocation of community controlor post-release control under a community control sanction orpost-release control sanction, unless the state public defenderfinds that the allegedparole or probation violatoror allegedviolator of a community control sanction or post-release controlsanction has thefinancial capacity to retainthe allegedviolator's owncounsel.

(6) If the state public defender contracts with a countypublic defender commission, a joint county public defendercommission, or a board of county commissioners for the provisionof services, under authority of division (C)(7) of section 120.04of the Revised Code, the state public defender shall providelegalrepresentation in accordance with the contract.

(B) The state public defender shall not be required toprosecute any appeal, postconviction remedy, or other proceedingpursuant to division (A)(3), (4), or (5) of this section, unlessthe state public defender first is satisfied that there isarguable merit to the proceeding.

(C) A court may appoint counsel or allow an indigentpersonto select the indigent's own personal counsel to assist the statepublic defender as co-counsel when the interests of justice sorequire. When co-counsel is appointed to assist the state publicdefender, the co-counsel shall receive any compensation that thecourt may approve, not to exceed the amounts provided for insection 2941.51 of the Revised Code.

(D)(1) When the state public defender is designated by thecourt or requested by a county public defender or joint countypublic defender to provide legal representation for an indigentperson in any case, other than pursuant to a contract enteredintounder authority of division (C)(7) of section 120.04 of theRevised Code, the state public defender shall send to the countyin which the case is filed ~~an itemized~~ a bill ~~for fifty per cent of~~ detailingthe actual cost of the representation that separately itemizes legal fees and expenses. The county, upon receiptof an itemized bill from the state public defender pursuant tothis division, shall ~~pay fifty per cent of the actual cost of thelegal representation as set forth in the itemized bill.~~ pay the state public defender each of the following amounts:

(a) For the amount identified as legal fees in the itemized bill, one hundred per cent of the amount identified as legal fees less the state reimbursement rate as calculated by the state public defender pursuant to section 120.34 of the Revised Code for the month the case terminated, as set forth in the itemized bill;

(b) For the amount identified as expenses in the itemized bill, one hundred per cent.

(2) Upon payment of the itemized bill under division (D)(1) of this section, the county may submit the cost of the expenses, excluding legal fees, to the state public defender for reimbursement pursuant to section 120.33 of the Revised Code.

(3) When the state public defender provides investigation or mitigation services to private appointed counsel or to a county or joint county public defender as approved by the appointing court, other than pursuant to a contract entered into under authority of division (C)(7) of section 120.04 of the Revised Code, the state public defender shall send to the county in which the case is filed a bill itemizing the actual cost of the services provided. The county, upon receipt of an itemized bill from the state public defender pursuant to this division, shall pay one hundred per cent of the amount as set forth in the itemized bill. Upon payment of the itemized bill received pursuant to this division, the county may submit the cost of the investigation and mitigation services to the state public defender for reimbursement pursuant to section 120.33 of the Revised Code.

(4) There ishereby created in the state treasury the county representationfund for the deposit of moneys received from counties under thisdivision. All moneys credited to the fund shall be used by thestate public defender to provide legal representation forindigentpersons when designated by the court or requested by acounty orjoint county public defender or to provide investigation or mitigation services, including investigation or mitigation services to private appointed counsel or a county or joint county public defender, as approved by the court.

(E)(1) Notwithstanding any contrary provision of sections109.02, 109.07, 109.361 to 109.366, and 120.03 of the RevisedCodethat pertains to representation by the attorney general, anassistant attorney general, or special counsel of an officer oremployee, as defined in section 109.36 of the Revised Code, or ofan entity of state government, the state public defender mayelectto contract with, and to have the state pay pursuant todivision(E)(2) of this section for the services of, privatelegal counselto represent the Ohio public defender commission,the state publicdefender, assistant state public defenders,other employees of thecommission or the state public defender,and attorneys describedin division (C) of section 120.41 of theRevised Code in amalpractice or other civil action or proceedingthat arises fromalleged actions or omissions related toresponsibilities derivedpursuant to this chapter, or in a civilaction that is based uponalleged violations of the constitutionor statutes of the UnitedStates, including section 1983 of Title42 of the United StatesCode, 93 Stat. 1284 (1979), 42 U.S.C.A.1983, as amended, and thatarises from alleged actions oromissions related toresponsibilities derived pursuant to thischapter, if the statepublic defender determines, in good faith,that the defendant inthe civil action or proceeding did not actmanifestly outside thescope of the defendant's employment or officialresponsibilities,with malicious purpose, in bad faith, or in awanton or recklessmanner. If the state public defender electsnot to contractpursuant to this division for private legalcounsel in a civilaction or proceeding, then, in accordance withsections 109.02,109.07, 109.361 to 109.366, and 120.03 of theRevised Code, theattorney general shall represent or provide forthe representationof the Ohio public defender commission, thestate public defender,assistant state public defenders, otheremployees of thecommission or the state public defender, orattorneys described indivision (C) of section 120.41 of theRevised Code in the civilaction or proceeding.

(2)(a) Subject to division (E)(2)(b) of this section,payment from the state treasury for the services of private legalcounsel with whom the state public defender has contractedpursuant to division (E)(1) of this section shall be accomplishedonly through the following procedure:

(i) The private legal counsel shall file with the attorneygeneral a copy of the contract; a request for an award of legalfees, court costs, and expenses earned or incurred in connectionwith the defense of the Ohio public defender commission, thestatepublic defender, an assistant state public defender, anemployee,or an attorney in a specified civil action orproceeding; awritten itemization of those fees, costs, andexpenses, includingthe signature of the state public defenderand the state publicdefender's attestation that the fees,costs, and expenses wereearned or incurred pursuant to division (E)(1) of this section tothe best of the state public defender's knowledge andinformation;a written statementwhether the fees, costs, and expenses are forall legal servicesto be rendered in connection with that defense,are only forlegal services rendered to the date of the requestand additionallegal services likely will have to be provided inconnection withthat defense, or are for the final legal servicesrendered inconnection with that defense; a written statementindicatingwhether the private legal counsel previously submitteda requestfor an award under division (E)(2) of this section inconnectionwith that defense and, if so, the date and the amountof eachaward granted; and, if the fees, costs, and expenses arefor alllegal services to be rendered in connection with thatdefense orare for the final legal services rendered in connectionwith thatdefense, a certified copy of any judgment entry in thecivilaction or proceeding or a signed copy of any settlementagreemententered into between the parties to the civil action orproceeding.

(ii) Upon receipt of a request for an award of legal fees,court costs, and expenses and the requisite supportivedocumentation described in division (E)(2)(a)(i) of this section,the attorney general shall review the request and documentation;determine whether any of the limitations specified in division(E)(2)(b) of this section apply to the request; and, if an awardof legal fees, court costs, or expenses is permissible afterapplying the limitations, prepare a document awarding legal fees,court costs, or expenses to the private legal counsel. Thedocument shall name the private legal counsel as the recipient ofthe award; specify the total amount of the award as determined bythe attorney general; itemize the portions of the award thatrepresent legal fees, court costs, and expenses; specify anylimitation applied pursuant to division (E)(2)(b) of this sectionto reduce the amount of the award sought by the private legalcounsel; state that the award is payable from the state treasurypursuant to division (E)(2)(a)(iii) of this section; and beapproved by the inclusion of the signatures of the attorneygeneral, the state public defender, and the private legalcounsel.

(iii) The attorney general shall forward a copy of thedocument prepared pursuant to division (E)(2)(a)(ii) of thissection to the director of budget and management. The award oflegal fees,court costs, or expenses shall be paid out of thestate public defender'sappropriations, to the extent there is asufficient available balance in thoseappropriations. If thestate public defender does not have a sufficientavailable balancein the state public defender's appropriations to pay theentireaward of legal fees, court costs, or expenses, the directorshallmake application for a transfer of appropriationsout of theemergency purposesaccount or any other appropriation foremergencies orcontingencies in an amount equal to the portion oftheaward that exceeds the sufficient available balance in thestate publicdefender's appropriations. A transfer ofappropriations out ofthe emergencypurposes account or any otherappropriation for emergencies or contingencies shall beauthorizedif there are sufficient moneys greater than the sumtotal of thenpending emergency purposes account requests, orrequests forreleases from the other appropriation. Ifa transfer ofappropriations out ofthe emergency purposes account orotherappropriation for emergencies or contingencies is made to payanamount equal to the portion of theaward that exceeds thesufficient available balance in the state publicdefender'sappropriations, the director shall cause the paymenttobe madetothe private legal counsel. If sufficient moneys do not existinthe emergency purposes account or other appropriation foremergencies or contingencies to pay an amount equal to the portionofthe award that exceeds the sufficient available balance in thestate publicdefender's appropriations, the private legalcounselshall request the general assembly to make anappropriationsufficient to pay an amount equal to the portion of theaward thatexceeds the sufficient available balance in the state publicdefender's appropriations, and no payment in that amount shallbemade until the appropriation has been made. The private legalcounsel shall make the request during the current biennium andduring each succeeding biennium until a sufficient appropriationis made.

(b) An award of legal fees, court costs, and expensespursuant to division (E) of this section is subject to thefollowing limitations:

(i) The maximum award or maximum aggregate of a series ofawards of legal fees, court costs, and expenses to the privatelegal counsel in connection with the defense of the Ohio publicdefender commission, the state public defender, an assistantstatepublic defender, an employee, or an attorney in a specifiedcivilaction or proceeding shall not exceed fifty thousanddollars.

(ii) The private legal counsel shall not be awarded legalfees, court costs, or expenses to the extent the fees, costs, orexpenses are covered by a policy of malpractice or otherinsurance.

(iii) The private legal counsel shall be awarded legalfeesand expenses only to the extent that the fees and expensesarereasonable in light of the legal services rendered by theprivatelegal counsel in connection with the defense of the Ohiopublicdefender commission, the state public defender, anassistant statepublic defender, an employee, or an attorney in aspecified civilaction or proceeding.

(c) If, pursuant to division (E)(2)(a) of this section,theattorney general denies a request for an award of legal fees,court costs, or expenses to private legal counsel because of theapplication of a limitation specified in division (E)(2)(b) ofthis section, the attorney general shall notify the privatelegalcounsel in writing of the denial and of the limitation applied.

(d) If, pursuant to division (E)(2)(c) of this section, aprivate legal counsel receives a denial of an award notificationor if a private legal counsel refuses to approve a document underdivision (E)(2)(a)(ii) of this section because of the proposedapplication of a limitation specified in division (E)(2)(b) ofthis section, the private legal counsel may commence a civilaction against the attorney general in the court of claims toprove the private legal counsel's entitlement to the awardsought,to prove that division(E)(2)(b) of this section does not prohibitor otherwise limitthe award sought, and to recover a judgment forthe amount of theaward sought. A civil action under division(E)(2)(d) of thissection shall be commenced no later than twoyears after receiptof a denial of award notification or, if theprivate legalcounsel refused to approve a document under division(E)(2)(a)(ii) of this section because of the proposed applicationof a limitation specified in division (E)(2)(b) of this section,no later than two years after the refusal. Any judgment of thecourt of claims in favor of the private legal counsel shall bepaid from the state treasury in accordance with division(E)(2)(a)of this section.

(F) If a court appoints the office ofthe state publicdefender to represent a petitioner in apostconviction reliefproceeding under section 2953.21 of theRevised Code, thepetitioner hasreceived a sentence of death, and the proceedingrelates to thatsentence, all of the attorneys who represent thepetitioner inthe proceeding pursuant to the appointment, whetheran assistantstate public defender, the state public defender, oranotherattorney, shall be certified under Rule20 of the RulesofSuperintendence forthe Courtsof Ohio torepresent indigentdefendants charged with or convicted of anoffense forwhich thedeath penalty can be or has been imposed.

(1) "Community control sanction" has the same meaning as insection 2929.01 of the Revised Code.

(2) "Post-release control sanction" has the same meaning asin section 2967.01 of the Revised Code.

Sec. 120.07. There is hereby created in the state treasury the civil case filing fee fund to receive all funds deposited in the fund pursuant to sections 1901.26, 1907.24, and 2303.201 of the Revised Code. All money credited to the fund shall be used by the state public defender for the purpose of appointing assistant state public defenders and for providing other personnel, equipment, and facilities necessary for the operation of the state public defender office.

Sec. 120.13. (A) The county commissioners in any countymay establish a county public defender commission. Thecommission shall have five members, three of whom shall beappointed by the board of county commissioners, and two by thejudge, or the presiding judge if there is one, of the court ofcommon pleas of the county. At least one member appointed byeach of these appointing bodies shall be an attorney admitted tothe practice of law in this state.

(B) The board of county commissioners shall select aspecific day for the county public defender commission to beestablished and on which all members' appointments shall takeeffect, and shall notify the Ohio public defender commission ofthe date.

(C) Of the initial appointments made to the county publicdefender commission, two appointments by the county commissionersand one appointment by the court shall be for a term of two yearsending two years after the date the commission is established,and one appointment by each of the appointing bodies shall be fora term ending four years after the date the commission isestablished. Thereafter, terms of office shall be for fouryears, each term ending on the same day of the same month of theyear as did the term which it succeeds. Each member shall holdoffice from the date of ~~his~~ appointment until the end of the termfor which he the member was appointed. Any member appointed tofill avacancy occurring prior to the expiration of the term for which~~his~~ the member's predecessor was appointed shall hold office forthe remainderof such term. Any member shall continue in office subsequent tothe expiration date of ~~his~~ the member's term until ~~his~~a successor takes office,or until a period of sixty days has elapsed, whichever occursfirst.

(D) The members of the commission shall choose as ~~chairman~~chairpersonone of the commission members, who shall serve as ~~chairman~~chairperson fortwo years. Meetings shall be held at least quarterly and at suchother times as called by the ~~chairman~~ chairperson or by requestof the countypublic defender. Members of the commission may receive an amountfixed by the county commissioners, but not in excess of theamounts set for the members of the Ohio public defendercommission pursuant to section 124.14 of the Revised Code perdiem for every meeting of the board they attend, and necessaryexpenses including mileage for each mile necessarily traveled.

(E) The county commissioners may terminate the countypublic defender commission at any time if at least ninety daysprior to termination, the commissioners notify the Ohio publicdefender commission in writing of the termination date. Upon thetermination date all pending county public defender matters shallbe transferred to the state public defender, a joint countypublic defender, or appointed counsel.

(F) ~~Fifty per cent of the~~ The cost of representation in allmatters assumed by the state public defender shall be charged tothe counties in accordance with division (D) of section 120.06 ofthe Revised Code.

Sec. 120.23. (A) The boards of county commissioners intwo or more adjoining or neighboring counties may form themselvesinto a joint board and proceed to organize a district for theestablishment of a joint county public defender commission. Thecommission shall have three members from each county, who shallbe appointed by the board of county commissioners of the county.

(B) The boards shall agree on a specific date for thejoint county public defender commission to be established, onwhich date the appointments of all members shall take effect.The joint board shall notify the Ohio public defender commissionof the date.

(C) Of the initial appointments made by each county to thejoint county public defender commission, one appointment shall befor a term of one year ending one year after the date thecommission is established, one appointment shall be for a term oftwo years ending two years after the date the commission isestablished, and one appointment shall be for a period of threeyears, ending three years after the date the commission isestablished. Thereafter, terms of office shall be for threeyears, each term ending on the same day of the same month of theyear as did the term which it succeeds. Each member shall holdoffice from the date of ~~his~~ appointment until the end of the termfor which he the member was appointed. Any member appointed tofill avacancy occurring prior to the expiration of the term for which~~his~~ the member's predecessor was appointed shall hold office forthe remainderof the term. Any member shall continue in office subsequent tothe expiration date of ~~his~~ the member's term until ~~his~~a successor takes office,or until a period of sixty days has elapsed, whichever occursfirst.

(D) The members of the commission shall choose as ~~chairman~~chairpersonone of the commission members, who shall serve as ~~chairman~~chairperson fortwo years. Meetings shall be held at least quarterly and at suchother times as called by the ~~chairman~~ chairperson or by requestof the jointcounty public defender. Members of the commission may receive anamount fixed by the agreement of the boards of commissioners ofthe counties in the district, but not in excess of the amount setfor the members of the Ohio public defender commission pursuantto section 124.14 of the Revised Code per diem for every meetingof the commission they attend, and necessary expenses includingmileage for each mile necessarily traveled.

(E) The agreement of the boards of county commissionersestablishing the joint county public defender commission shallprovide for the allocation of the proportion of expenses to bepaid by each county, which may be based upon population, numberof cases, or such other factors as the commissioners determine tobe appropriate. The county commissioners may amend theiragreement from time to time to provide for a different allocationof the proportion of expenses to be paid by each county.

(F) The county auditor of the county, with the greatestpopulation is hereby designated as the fiscal officer of a jointcounty public defender district organized under this section.The county auditors of the several counties composing the jointcounty public defender commission district shall meet at thecommission office not less than once in each six months, toadjust accounts and to transact such other duties in connectionwith the commission as pertain to the business of their office.

(G) Each member of the board of county commissioners whomeets by appointment to consider the organization of a jointcounty public defender commission shall, upon presentation ofproperly certified accounts, be paid ~~his~~ the member's necessaryexpenses upona warrant drawn by the county auditor of ~~his~~ the member'scounty.

(H) The board of county commissioners of any county withina joint county public defender commission district may withdrawfrom the district. Such withdrawal shall not be effective untilat least ninety days after the board has notified the Ohio publicdefender commission, the joint county public defender commissionof the district, and each board of county commissioners in thedistrict, in writing of the termination date. The failure of aboard of county commissioners to approve an annual operatingbudget for the office of the joint county public defender asprovided in division (C)(1) of section 120.24 of the Revised Codeconstitutes a notice of withdrawal by the county from thedistrict, effective on the ninetieth day after commencement ofthe next fiscal year. Upon the termination date, all jointcounty public defender matters relating to the withdrawing countyshall be transferred to the state public defender, a countypublic defender, or appointed counsel.

(I) ~~Fifty per cent of the~~ The cost of representation in allmatters assumed by the state public defender shall be charged tothe counties in accordance with division (D) of section 120.06 ofthe Revised Code.

Members of the joint county public defender commission whoare residents of a county withdrawing from such district aredeemed to have resigned their positions upon the completion ofthe withdrawal procedure provided by this section. Vacanciesthus created shall not be filled.

If two or more counties remain within the district afterthe withdrawal, the boards of county commissioners of theremaining adjoining or neighboring counties may agree to continuethe operation of the joint county public defender commission andto reallocate the proportionate share of expenses to be paid byeach participating county.

Sec. 120.36. (A) If a person who is a defendant in a criminal case or a party in a case in juvenile court requests or is provided a state public defender, a county or joint county public defender, or any other counsel appointed by the court, the court in which the criminal case is initially filed or the juvenile court, whichever is applicable, shall assess, unless the application fee is waived or reduced, a non-refundable application fee of twenty-five dollars.

The court shall direct the person to pay the application fee to the clerk of court. The person shall pay the application fee at the time the person files an affidavit of indigency or a financial disclosure form with the court or within seven days of that date. If the person does not pay the application fee within that seven-day period, the court shall assess the application fee at sentencing or at the final disposition of the case.

If a case involving a felony that was initially filed in a municipal court or a county court is bound over to the court of common pleas and the defendant in the case failed to pay the application fee in the municipal court or county court, the court of common pleas shall assess the application fee at the initial appearance of the defendant in the court of common pleas. If a case involving an alleged delinquent child is transferred to the court of common pleas for prosecution of the involved child as an adult and if the involved child failed to pay the fee in the juvenile court, the court of common pleas shall assess the application fee at the initial appearance of the child in the court of common pleas.

The court shall assess an application fee pursuant to this section one time per case. An appeal shall not be considered a separate case for the purpose of assessing the application fee. The court may waive or reduce the fee upon a finding that the person lacks financial resources that are sufficient to pay the fee or that payment of the fee would result in an undue hardship.

(B) No court, state public defender, county or joint county public defender, or other counsel appointed by the court shall deny a person the assistance of counsel solely due to the person's failure to pay the application fee assessed pursuant to division (A) of this section. A person's present inability, failure, or refusal to pay the application fee shall not disqualify that person from legal representation.

(C) The application fee assessed pursuant to division (A) of this section is separate from and in addition to any other amount assessed against a person who is found to be able to contribute toward the cost of the person's legal representation pursuant to division (D) of section 2941.51 of the Revised Code.

(D) The clerk of the court that assessed the fees shall forward all application fees collected pursuant to this section to the county treasurer for deposit in the county treasury. The county shall retain eighty per cent of the application fees so collected to offset the costs of providing legal representation to indigent persons. Each month, the county auditor shall remit twenty per cent of the application fees so collected to the state public defender. The state public defender shall deposit the remitted fees into the state treasury to the credit of the client payment fund created pursuant to division (B)(5) of section 120.04 of the Revised Code. The state public defender may use that money in accordance with that section.

(E) On or before the first day of March of each year beginning in the year 2007, each clerk of court shall provide to the state public defender and the state auditor a report including all of the following:

(1) The number of persons in the previous calendar year who requested or were provided a state public defender, county or joint county public defender, or other counsel appointed by the court;

(2) The number of persons in the previous calendar year for whom the court waived the application fee pursuant to division (A) of this section;

(3) The dollar value of the assessed application fees pursuant to division (A) of this section in the previous calendar year;

(4) The amount of assessed application fees collected in the previous calendar year;

(5) The balance of unpaid assessed application fees at the open and close of the previous calendar year.

(1) "Clerk of court" means the clerk of the court of common pleas of the county, the clerk of the juvenile court of the county, the clerk of a municipal court in the county, the clerk of a county-operated municipal court, or the clerk of a county court in the county, whichever is applicable.

(2) "County-operated municipal court" has the same meaning as in section 1901.03 of the Revised Code.

Sec. 120.52. There is hereby established in the statetreasury the legal aid fund, which shall be for the charitablepublic purpose of providing financial assistance to legal aidsocieties that provide civil legal services to indigents. Thefund shall contain all funds credited to it by the treasurer ofstate pursuant to sections 1901.26, 1907.24, 2303.201, 3953.231, 4705.09and 4705.10 of the Revised Code and income from investment creditedto it by the treasurer of state in accordance with this section.

The treasurer of state may invest moneys contained in thelegal aid fund in any manner authorized by the Revised Code forthe investment of state moneys. However, no such investmentshall interfere with any apportionment, allocation, or payment ofmoneys in January and July of each calendar year, as required bysection 120.53 of the Revised Code. All income earned as aresult of any such investment shall be credited to the fund.

The state public defender, through the Ohio legalassistance foundation, shall administer the payment of moneys outof the fund. Four and one-half per cent of the moneys in thefund shall be reserved for the actual, reasonable costs ofadministering sections 120.51 to 120.55 and sections 1901.26, 1907.24, 2303.201, 3953.231, 4705.09, and4705.10 of the Revised Code. Moneys that are reserved foradministrative costs but that are not used for actual, reasonableadministrative costs shall be set aside for use in the mannerdescribed in division (A) of section120.521 of the Revised Code. The remainder of the moneys in the legal aid fundshall bedistributed in accordance with section 120.53 of the RevisedCode. The Ohio legal assistance foundation shall establish, in accordance with Chapter 119. of the Revised Code, rulesgoverning the administration of the legal aid fund, including the~~program~~ programs established under sections 1901.26, 1907.24, 2303.201, 4705.09, and 4705.10 of theRevised Code regarding interest on interest-bearing trust accounts of anattorney, law firm, or legal professional association.

Sec. 120.53. (A) A legal aid society that operates withinthe state may apply to the Ohio legal assistance foundation forfinancial assistance from the legal aid fund established bysection 120.52 of the Revised Code to be used for the funding ofthe society during the calendar year following the calendar yearin which application is made.

(B) An application for financial assistance made underdivision (A) of this section shall be submitted by the first dayof November of the calendar year preceding the calendar year forwhich financial assistance is desired and shall include all ofthe following:

(1) Evidence that the applicant is incorporated in thisstate as a nonprofit corporation;

(3) The proposed budget of the applicant for these fundsfor the following calendar year;

(4) A summary of the services to be offered by theapplicant in the following calendar year;

(5) A specific description of the territory orconstituency served by the applicant;

(6) An estimate of the number of persons to be served bythe applicant during the following calendar year;

(8) The amount of the applicant's total budget for thecalendar year in which the application is filed that it willexpend in that calendar year for legal services in each of thecounties it serves;

(9) A specific description of any services, programs,training, and legal technical assistance to be delivered by theapplicant or by another person pursuant to a contract with theapplicant, including, but not limited to, by private attorneys orthrough reduced fee plans, judicare panels, organized pro bonoprograms, and mediation programs.

(C) The Ohio legal assistance foundation shall determinewhether each applicant that filed an application for financialassistance under division (A) of this section in a calendar yearis eligible for financial assistance under this section. To beeligible for such financial assistance, an applicant shallsatisfy the criteria for being a legal aid society and shall be in compliancewith the provisions of sections 120.51 to 120.55 of the Revised Code and withthe rules and requirements the foundation establishes pursuant to section120.52 of the Revised Code. The Ohio legal assistance foundation then, on orbefore the fifteenth dayof December of the calendar year in which the application isfiled, shall notify each such applicant, in writing, whether itis eligible for financial assistance under this section, and ifit is eligible, estimate the amount that will be available forthat applicant for each six-month distribution period, asdetermined under division (D) of this section.

(D) The Ohio legal assistance foundation shall allocatemoneys contained in the legal aid fund twice each year fordistribution to applicants that filed their applications in theprevious calendar year and were determined to be eligibleapplicants.

All moneys contained in the fund on the first day ofJanuary of a calendar year shall be allocated, after deduction ofthe costs of administering sections 120.51 to 120.55 and sections1901.26, 1907.24, 2303.201, 3953.231, 4705.09, and 4705.10 of the Revised Code that are authorized bysection 120.52 of the Revised Code, according to this section andshall be distributed accordingly on the thirty-first day ofJanuary of that calendar year, and all moneys contained in thefund on the first day of July of that calendar year shall beallocated, after deduction of the costs of administering thosesections that are authorized by section 120.52 of the RevisedCode, according to this section and shall be distributedaccordingly on the thirty-first day of July of that calendaryear. In making the allocations under this section, the moneys in the fundthat were generated pursuant to sections 1901.26, 1907.24, 2303.201, 3953.231,4705.09, and 4705.10 of the Revised Code and all income generatedfrom the investment of such moneys shall be apportioned asfollows:

(1) After deduction of the amount authorized and used foractual, reasonable administrative costs under section 120.52 ofthe Revised Code:

(a) Five per cent of the moneys remaining in the fund~~,plus any moneys reserved for administrative costs under thatsection that are not used for actual, reasonable administrativecosts,~~ shall be reserved for use in the manner described in division (A) of section 120.521 of the Revised Code or for distribution to legal aid societiesthat provide assistance to special population groups of theireligible clients, engage in special projects that have asubstantial impact on their local service area or on significantsegments of the state's poverty population, or provide legaltraining or support to other legal aid societies in the state;

(b) After deduction of the amount described in division(D)(1)(a) of this section, one and three-quarters per cent of themoneys remaining in the fund shall be apportioned among entitiesthat received financial assistance from the legal aid fund priorto the effective date of this amendment but that, on and afterthe effective date of this amendment, no longer qualify as alegal aid society that is eligible for financial assistance underthis section.

(c) After deduction of the amounts described in divisions (D)(1)(a) and (b) of this section, fifteen per cent of the moneys remaining in the fund shall be placed in the legal assistance foundation fund for use in the manner described in division (A) of section 120.521 of the Revised Code.

(2) After deduction of the actual, reasonableadministrative costs under section 120.52 of the Revised Code andafter deduction of the amounts identified in ~~division~~ divisions (D)(1)(a)~~and~~, (b), and (c) of this section, the remaining moneys shall beapportioned among the counties that are served by eligible legalaid societies that have applied for financial assistance underthis section so that each such county is apportioned a portion ofthose moneys, based upon the ratio of the number of indigents whoreside in that county to the total number of indigents who residein all counties of this state that are served by eligible legalaid societies that have applied for financial assistance underthis section. Subject to division (E) of this section, themoneys apportioned to a county under this division then shall beallocated to the eligible legal aid society that serves thecounty and that has applied for financial assistance under thissection. For purposes of this division, the source of dataidentifying the number of indigent persons who reside in a countyshall be the most recent decennial census figures from the UnitedStates department of commerce, division of census.

(E) If the Ohio legal assistance foundation, in attemptingto make an allocation of moneys under division (D)(2) of thissection, determines that a county that has been apportioned moneyunder that division is served by more than one eligible legal aidsociety that has applied for financial assistance under thissection, the Ohio legal assistance foundation shall allocate themoneys that have been apportioned to that county under division(D)(2) of this section among all eligible legal aid societiesthat serve that county and that have applied for financialassistance under this section on a pro rata basis, so that eachsuch eligible society is allocated a portion based upon theamount of its total budget expended in the prior calendar yearfor legal services in that county as compared to the total amountexpended in the prior calendar year for legal services in thatcounty by all eligible legal aid societies that serve that countyand that have applied for financial assistance under thissection.

(F) Moneys allocated to eligible applicants under thissection shall be paid twice annually, on the thirty-first day ofJanuary and on the thirty-first day of July of the calendar yearfollowing the calendar year in which the application is filed.

(G)(1) A legal aid society that receives financialassistance in any calendar year under this section shall file anannual report with the Ohio legal assistance foundation detailingthe number and types of cases handled, and the amount and typesof legal training, legal technical assistance, and other serviceprovided, by means of that financial assistance. No informationcontained in the report shall identify or enable theidentification of any person served by the legal aid society orin any way breach client confidentiality.

(2) The Ohio legal assistance foundation shall make anannual report to the governor, the general assembly, and thesupreme court on the distribution and use of the legal aid fund. Thefoundation also shall include in the annual report an audited financialstatement of all gifts, bequests, donations, contributions, and other moneysthe foundation receives. No information contained in the report shallidentify or enablethe identification of any person served by a legal aid society,or in any way breach confidentiality.

(H) A legal aid society may enter into agreements for theprovision of services, programs, training, or legal technicalassistance for the legal aid society or to indigent persons.

Sec. 121.37. (A)(1) There is hereby created the Ohio familyand children first cabinet council. The council shall becomposedof the superintendent of public instruction and thedirectors ofyouth services, job and family services,mental health,health,alcohol and drug addiction services, mental retardationanddevelopmental disabilities, and budget and management. Thechairperson of the council shall be the governor or thegovernor'sdesignee and shall establish procedures for the council'sinternalcontrol and management.

(2) The purpose of the cabinet council is to help familiesseeking government services. This section shall not beinterpreted or applied to usurp the role of parents, but solelytostreamline and coordinate existing government services forfamilies seeking assistance for their children.

(a) Advise and make recommendations to the governor andgeneral assembly regarding the provision of services to children;

(b) Advise and assess local governments on thecoordinationof service delivery to children;

(c) Hold meetings at such times and places as may beprescribed by the council's procedures and maintain records ofthemeetings, except that records identifyingindividual children areconfidential and shall be disclosedonly as provided by law;

(d) Develop programs and projects, including pilotprojects,to encourage coordinated efforts at the state and locallevel toimprove the state's social service deliverysystem;

(e) Enter into contracts with and administer grants tocounty family and children first councils, as well asother countyormulticounty organizations to plan and coordinate servicedeliverybetween state agencies and local service providers forfamiliesand children;

(f) Enter into contracts with and apply for grants fromfederal agencies or private organizations;

(g) Enter into interagency agreementsto encouragecoordinated efforts at the state and local level to improve thestate's social service delivery system. The agreements mayinclude provisionsregarding the receipt, transfer, andexpenditure of funds;

(h) Identify public and private funding sources for servicesprovided to alleged or adjudicated unruly children and childrenwho are at risk of being alleged or adjudicated unruly children,including regulations governing access to and use of the services;

(i) Collect information provided by local communitiesregarding successful programs for prevention, intervention, andtreatment of unruly behavior, including evaluations of theprograms;

(j) Identify and disseminate publications regarding allegedor adjudicated unruly children and children who are at risk ofbeing alleged or adjudicated unruly children and regardingprograms serving those types of children;

(k) Maintain an inventory of strategic planning facilitatorsfor use by government or nonprofit entities that serve alleged oradjudicated unruly children or children who are at risk of beingalleged or adjudicated unruly children.

(a) Reviews of service and treatmentplans for children forwhich such reviews are requested;

(b) Assistance as the councildetermines to benecessary tomeet the needs of children referred bycounty familyand childrenfirst councils;

(c) Monitoring and supervisionof astatewide,comprehensive, coordinated, multi-disciplinary,interagency systemfor infants and toddlers with developmentaldisabilities or delaysand their families, as establishedpursuant to federal grantsreceived and administered by thedepartment of health for earlyintervention services under the"~~Education of the Handicapped ActAmendments of 1986," 100 Stat. 1145 (1986), 20 U.S.C.A. 1471~~ Individuals with Disabilities Education Act of 2004," 20 U.S.C.A. 1400, asamended.

(B)(1) Each board of county commissioners shallestablish acounty family and childrenfirst council. The board may inviteany local publicor private agency orgroup that funds, advocates,or provides services to children and families tohave arepresentative become a permanent or temporary member of itscountycouncil. Each county council mustinclude the followingindividuals:

(a) At least three individuals who are not employed by an agency represented on the council and whose families are or havereceivedservices from an agency represented on the council oranother county'scouncil. Where possible, the number of membersrepresenting families shall beequal to twenty per cent of thecouncil's membership.

(b) The director of the board ofalcohol, drug addiction,and mental health services that servesthe county, or, in the caseof a county that has a board ofalcohol and drug addictionservices and a community mentalhealth board, the directors ofboth boards. If a board of alcohol, drugaddiction, and mentalhealth services covers more than one county, the director maydesignate aperson to participate on the county's council.

(c) The health commissioner, or the commissioner'sdesignee,of theboard of health of each city and general health district inthecounty. If the county has two or more health districts, thehealth commissioner membership may be limited to the commissionersof the twodistricts with the largest populations.

(e) The executive director of the~~county agency responsiblefor the administration of~~ public childrenservices ~~pursuant to section5153.15 of theRevised Code~~ agency;

(f) The superintendent of thecounty board of mentalretardation and developmental disabilities;

(g) The county's juvenile court judge senior in serviceoranother judge of the juvenile court designated by theadministrativejudge or, where there is no administrative judge,by the judge senior inservice;

(h) The superintendent of the city, exemptedvillage, orlocal school district with the largest number ofpupils residingin the county, as determined by the departmentof education, whichshall notify each board of countycommissioners of itsdetermination at least biennially;

(i) A school superintendent representing allother schooldistricts with territory in the county, asdesignated at abiennial meeting of the superintendents of thosedistricts;

(j) A representative of themunicipal corporation with thelargest population in thecounty;

(k) The president of the board of countycommissioners, oran individual designated by the board;

(m) A representative of thecounty's head start agencies, asdefined in section ~~3301.31~~ 3301.32 ofthe Revised Code;

(n) A representative of the county's earlyinterventioncollaborative established pursuant to the federalearlyintervention program operated under the"Education of theHandicapped ActAmendments of 1986";

(o) A representative of a local nonprofit entitythat funds,advocates, or provides services to children and families.

Notwithstanding any other provision of law, the publicmembers of a countycouncil are notprohibited from serving on thecouncil and making decisionsregarding the duties of the council,including those involving the fundingof joint projects and thoseoutlined in the county's servicecoordination mechanismimplemented pursuant todivision (C) of this section.

The cabinet council shall establish a state appeals processto resolvedisputes among the members of a county councilconcerning whether reasonableresponsibilities as members arebeing shared. The appeals process may beaccessed only by amajority vote of the council members who are required toserve onthe council. Upon appeal, the cabinet council may order thatstatefunds for services to children and families be redirected toa county's boardof county commissioners.

(2) A The purpose of the county council is to streamline and coordinate existing government services for families seeking services for their children. In seeking to fulfill its purpose, a county council shall provide for the following:

(a) Referrals to the cabinet council of thosechildren forwhom thecounty council cannot provide adequate services;

(b) Development and implementation of a process thatannually evaluates andprioritizes services,fills service gapswhere possible, and invents new approachesto achieve betterresults for families and children;

(c) Participation in the developmentof a countywide,comprehensive, coordinated,multi-disciplinary, interagency systemfor infants and toddlerswith developmental disabilities or delaysand their families, asestablished pursuant to federal grantsreceived and administeredby the department of health for earlyintervention servicesunder the "Education of theHandicapped ActAmendments of 1986";

(d) Maintenance of an accountabilitysystem tomonitor thecounty council's progress in achievingresults for families andchildren;

(e) Establishment of a mechanism toensure ongoinginputfrom a broad representation of families who are receivingserviceswithin the county system.

(3)(a) Except as provided in division (B)(3)(b)of thissection, a county council shall comply with thepolicies,procedures, and activities prescribed by the rules orinteragencyagreements of a state department participating onthe cabinetcouncil whenever the countycouncilperforms a function subject tothose rules or agreements.

(b) On application of a county council, thecabinet councilmay grant an exemption from any rules orinteragency agreements ofa state department participating onthe council if an exemption isnecessary for the council toimplement an alternative program orapproach forservice delivery to families andchildren. Theapplication shall describe the proposed programor approach andspecify the rules or interagency agreements from whichanexemption is necessary. The cabinet council shall approve ordisapprove the application in accordance with standards andprocedures it shall adopt. If an application is approved, theexemption is effective only while the programor approach is beingimplemented, including areasonable period during which theprogram or approach is being evaluated for effectiveness.

(4)(a) Each county council shall designate anadministrativeagent for the council from among the following public entities:the board of alcohol, drug addiction, and mental health services,including aboard of alcohol and drug addiction or a communitymental health board if thecounty is served by separate boards;the board of county commissioners; anyboard of health of thecounty's city and general health districts; the countydepartmentof job and family services; the county agencyresponsible for theadministration of children services pursuant to section 5153.15 ofthe RevisedCode; thecounty board of mental retardation anddevelopmental disabilities; any of thecounty's boards ofeducation or governing boards of educational servicecenters; orthe county's juvenile court. Any of the foregoing publicentities, other than the board of county commissioners, maydecline to serveas the council's administrative agent.

A county council's administrative agent shall serve as thecouncil'sappointing authority for any employees of the council.The councilshall file an annual budget with itsadministrativeagent, with copies filed with the county auditor and with theboard of county commissioners, unless the board is serving as thecouncil'sadministrative agent. The council's administrativeagent shall ensure thatall expenditures are handled in accordancewith policies, procedures, andactivities prescribed by statedepartments in rules or interagency agreementsthat are applicableto the council's functions.

The administrative agent for a county council may do any ofthe followingon behalf of the council:

(i) Enter into agreements or administer contracts withpublic orprivate entities to fulfill specific council business.Such agreements andcontracts are exempt from the competitivebidding requirements of section307.86 of the RevisedCode if theyhave been approved by the countycouncil and they are for thepurchase of family and child welfare or childprotection servicesor other social or job and familyservices for families andchildren. The approval of the county council is notrequired toexempt agreements or contracts entered into under section 5139.34,5139.41, or 5139.43 of the RevisedCode from the competitivebidding requirementsof section 307.86 of the Revised Code.

(ii) As determined by the council, provide financialstipends,reimbursements, or both, to family representatives forexpenses related tocouncil activity;

(iii) Receive by gift, grant, devise, or bequest anymoneys,lands,or other property for the purposes for which the council isestablished. Theagent shall hold, apply, and dispose of themoneys, lands, or other propertyaccording to the terms of thegift, grant, devise, or bequest. Any interestor earnings shallbe treated in the same manner and are subject to the sameterms asthe gift, grant, devise, or bequest from which it accrues.

(b)(i) If the county council designates the board of countycommissioners as its administrative agent, the board may, byresolution,delegate any of its powers and duties asadministrative agent to an executivecommittee the boardestablishes from the membership of the county council. The boardshall name to the executive committee at least the individualsdescribed in divisions (B)(1)~~(b) through(h)~~(a) to (i) of this section andmay appoint the president of the board oranother individual asthe chair of the executive committee. The executive committee must include at least one family county council representative who does not have a family member employed by an agency represented on the council.

(ii) The executive committee may, with the approval of theboard,hire an executive director to assist the county council inadministering itspowers and duties. The executive director shallserve in the unclassifiedcivil service at the pleasure of theexecutive committee. The executivedirector may, with theapproval of the executive committee, hire otheremployees asnecessary to properly conduct the county council's business.

(iii) The board may require the executive committee tosubmit anannual budget to the board for approval and may amend orrepeal the resolutionthat delegated to the executive committeeits authority as the countycouncil's administrative agent.

(5) Two or more county councils may enter into anagreementto administer their county councils jointly bycreating a regionalfamily and children first council. A regional councilpossessesthe same duties and authoritypossessed by a county council,except that the duties andauthority apply regionally rather thanto individual counties. Prior toentering into an agreement tocreate a regionalcouncil, the members of each county council tobe part of theregional council shall meet to determine whetherall or part ofthe members of each county council will serve asmembers of theregional council.

(6) A board of county commissioners may approve a resolutionby a majorityvoteof the board's members that requires the countycouncil to submit a statement to the board each timethe councilproposes to enter into an agreement, adopt aplan, or make adecision,other than a decision pursuant to section 121.38 of theRevised Code, thatrequires theexpenditure of funds for two ormore families. Thestatement shall describe the proposedagreement, plan, or decision.

Not later than fifteen days after the board receives thestatement, itshall, by resolution approved by a majority of itsmembers, approve ordisapprove the agreement, plan, or decision.Failure of the board to pass aresolution during that time periodshall be considered approval of theagreement, plan, or decision.

An agreement, plan, or decision for which a statement isrequired to besubmitted to the board shall be implemented only ifit is approvedby the board.

(C) Each county shall develop acounty service coordinationmechanism. The county service coordination mechanism shall serve as the guiding document for coordination of services in the county. For children who also receive services under the help me grow program, the service coordination mechanism shall be consistent with rules adopted by the department of health under section 3701.61 of the Revised Code. All family service coordination plans shall be developed in accordance with the county service coordination mechanism. Themechanism shall be developedand approved with theparticipation of the countyentities representing child welfare;mentalretardation and developmental disabilities; alcohol, drugaddiction, and mental health services; health; juvenile judges;education; the county family and children first council; and thecountyearlyintervention collaborative established pursuant tothefederal earlyintervention program operated under the"Education of theHandicapped Act Amendments of 1986." The countyshallestablish an implementation schedule for the mechanism. Thecabinet councilmay monitor the implementation and administrationof each county's servicecoordination mechanism.

(1) A procedure for assessing the needs of any child,including a child who is an abused, neglected, dependent, unruly,or delinquent child and under the jurisdiction of the juvenilecourt or a child whose parent or custodian is voluntarily seekingservices an agency, including a juvenile court, or a family voluntarily seeking service coordination, to refer the child and family to the county council for service coordination in accordance with the county service coordination mechanism;

(2) A procedure ensuring that a family and all appropriate staff from involved agencies, including a representative from the appropriate school district, are notified of and invited to participate in all family service coordination plan meetings;

(3) A procedure that permits a family to initiate a meeting to develop or review the family's service coordination plan and allows the family to invite a family advocate, mentor, or support person of the family's choice to participate in any such meeting;

(4) A procedure for ensuring that a family service coordination plan meeting is conducted before a non-emergency out-of-home placement for all multi-need children, or within ten days of a placement for emergency placements of multi-need children. The family service coordination plan shall outline how the county council members will jointly pay for services, where applicable, and provide services in the least restrictive environment.

(5) A procedure for monitoring the progress and tracking the outcomes of each service coordination plan requested in the county including monitoring and tracking children in out-of-home placements to assure continued progress, appropriateness of placement, and continuity of care after discharge from placement with appropriate arrangements for housing, treatment, and education.

(6) A procedure for protecting the confidentiality of all personal family information disclosed during service coordination meetings or contained in the comprehensive family service coordination plan.

(7) A procedure for assessing the ~~service~~ needs and strengths of ~~thefamily of~~ any child or family that has been referred to the council for service coordination, including a child ~~who is an abused,neglected, dependent, unruly, or delinquent child and under thejurisdiction of the juvenile court or a child~~ whose parent orcustodian is voluntarily seeking services, and for ensuring that parents and custodians are afforded the opportunity to participate;

~~(3)~~(8) A procedure for development of a ~~comprehensive~~ ~~joint~~ familyservice coordination plandescribed in division(D) of this section;

~~(4)~~(9) A local dispute resolutionprocess to serve as theprocess that must be used first to resolvedisputes among theagencies represented on the county council concerning theprovision ofservicesto children,including children who areabused, neglected, dependent, unruly,alleged unruly, ordelinquent children and under the jurisdiction of the juvenilecourt and children whose parents or custodians arevoluntarilyseeking services. The local dispute resolutionprocess shallcomplywith section121.38 of the Revised Code. ~~The~~ The local dispute resolution process shall be used to resolve disputes between a child's parents or custodians and the county council regarding service coordination. The county council shall inform the parents or custodians of their right to use the dispute resolution process. Parents or custodians shall use existing local agency grievance procedures to address disputes not involving service coordination. The dispute resolution process is in addition to and does not replace other rights or procedures that parents or custodians may have under other sections of the Revised Code.

Thecabinetcouncil shall adopt rules inaccordance with Chapter 119.of theRevised Code establishing anadministrativereview processtoaddress problems that arise concerning the operation of alocaldispute resolution process.

Nothing in division (C)(4) of this section shall be interpreted as overriding or affecting decisions of a juvenile court regarding an out-of-home placement, long-term placement, or emergency out-of-home placement.

(D)Each county shall develop a comprehensive ~~joint~~ family service coordinationplanthat does ~~both~~ all of the following:

(1) Designates service responsibilities among the variousstate and localagencies that provide services to children andtheir families, includingchildren who are abused, neglected,dependent, unruly, or delinquent childrenand under thejurisdiction of the juvenile court and children whose parents orcustodians are voluntarily seeking services;

(2) Designates an individual, approved by the family, to track the progress of the family service coordination plan, schedule reviews as necessary, and facilitate the family service coordination plan meeting process;

(3) Ensures that assistance and services to be provided are responsive to the strengths and needs of the family, as well as the family's culture, race, and ethnic group, by allowing the family to offer information and suggestions and participate in decisions. Identified assistance and services shall be provided in the least restrictive environment possible.

(4) Includes a ~~service coordination~~ process for dealing witha childwho is alleged to be an unruly child. The ~~servicecoordination~~ process shall include methods todivert the childfrom the juvenile court system;

(5) Includes timelines for completion of goals specified in the plan with regular reviews scheduled to monitor progress toward those goals;

(6) Includes a plan for dealing with short-term crisis situations and safety concerns.

(E)(1) The ~~service coordination~~ process provided forunderdivision(D)~~(2)~~(4) of this section may include, but is not limitedto, the following:

(a) ~~An assessment of the needs and strengths of the childand the child'sfamily and the services the child and the child'sfamily need;~~

~~(b)~~ Designation of the person or agency to conduct theassessment of the child and the child's family as described indivision~~(E)(1)(a)~~(C)(7) of this section and designation oftheinstrument or instruments to be used to conduct the assessment;

~~(c) Designation of the agency to provide case managementservices to the child and to the child's family;~~

~~(d)~~(b) An emphasis on the personal responsibilities of thechild and the parental responsibilities of the parents, guardian,or custodianof the child;

(2) The method to divert a child from the juvenile courtsystem that must be included in the service coordination processmay include, butis not limitedto, the following:

(a) The preparation of a complaint under section 2151.27 ofthe Revised Codealleging that the child is an unruly child andnotifying the child andthe parents, guardian, or custodian thatthe complaint hasbeen prepared to encourage the child and theparents, guardian, orcustodian to comply with other methods todivert thechild from the juvenile court system;

(b) Conducting a meeting with the child, the parents,guardian, or custodian, and other interested parties todeterminethe appropriate methods to divert the child from the juvenilecourt system;

(c) ~~A method for dealing with short-term crisis situationsinvolving a confrontation between the child and the parents,guardian,or custodian;~~

~~(d)~~ A method to provide to the child and thechild's familya short-term respite from a short-term crisis situationinvolvinga confrontation between the child and the parents, guardian,orcustodian;

~~(e)~~(d) A program to provide a mentor to the child or theparents, guardian, or custodian;

~~(f)~~(e) A program to provide parenting education to the parents,guardian, or custodian;

~~(g)~~(f) An alternative school program for children who aretruant from school, repeatedly disruptive in school, or suspendedor expelledfrom school;

~~(h)~~(g) Other appropriate measures, including, but not limitedto,any alternative methods to divert a child from the juvenilecourtsystem that are identified by the Ohio family and childrenfirst cabinet council.

(F) Each county may review and revise the servicecoordination process described in division (D)~~(2)~~ of this sectionbased on the availability of funds under Title IV-A of the "SocialSecurity Act," 110 Stat. 2113 (1996), 42 U.S.C.A. 601, as amended,or to the extent resources are available from any other federal,state, or local funds.

Sec. 121.373. There is hereby created in the state treasury the family and children first administration fund. The fund shall consist of money that the director of budget and management transfers from one or more funds of one or more agencies represented on the Ohio family and children first cabinet council. The director may transfer only money that state or federal law permits to be used for the cabinet council's administrative costs. Money in the fund shall be used to pay the cabinet council's administrative costs.

Sec. 121.38. (A) An agency represented on a county family andchildren first council that disagrees with the council's decision concerningthe services orfunding for services a child is to receive from agencies represented on thecouncil may initiate the local dispute resolutionprocess established inthe county service coordination mechanism applicableto the council. On completion of theprocess, the decision maker designated in the mechanism shall issue a writtendetermination that directs one or more agencies represented on the council toprovide servicesor funding for services to the child. The determination shall include a planof care governing the manner in which the services orfunding are to be provided. The decision maker shall base the plan of care onthe ~~comprehensive joint~~ family service coordination plan developed as part of the county'sservicecoordination mechanism and on evidence presented during the localdispute resolution process. The decision makermay require an agency toprovide services or funding only if the child's condition or needs qualify thechild for services under the laws governing the agency.

(B) An agency subject to a determination issued pursuant to alocal dispute resolution process shall immediately comply with thedetermination,unless the agency objects to the determination by doing one of the followingnot later than seven days after the date the written determination is issued:

(1) If the child has been alleged or adjudicated to be an abused,neglected, dependent, unruly, or delinquent child or a juvenile trafficoffender, filing in the juvenile court of the county having jurisdiction overthe child's case a motion requesting that the court hold a hearing todetermine which agencies are to provide services or funding for services tothe child.

(2) If the child is not a child described in division (B)(1) ofthis section, filing in the juvenile court of the county served by the countycouncil a complaint objecting to the determination.

The court shall hold a hearing as soon as possible, but notlaterthanninety days after the motion or complaint is filed. At least five daysbefore the date on which the court hearing is to be held, the court shall sendeach agency subject to the determination written notice by first class mail ofthe date, time, place, and purpose of the court hearing. In the case of amotion filed under division (B)(1) of this section, the court mayconduct the hearing as part of the adjudicatory or dispositional hearingconcerning the child, if appropriate, and shall provide notice as required forthose hearings.

Except in cases in which the hearing is conducted as part of theadjudicatory or dispositional hearing, a hearing held pursuant to thisdivision shall be limited to a determination of which agencies are to provideservices or funding for services to the child. At the conclusion of thehearing, the court shall issue an order directing one or more agenciesrepresented on the county council to provide servicesorfunding for services to the child. The order shall include a plan of caregoverning themanner in which the services or funding are to be provided. The court shallbase the plan of care on the ~~comprehensive joint~~ family service coordination plandeveloped as part ofthe county's service coordination plan and on evidencepresented during the hearing. An agency required by the order to provideservices or funding shall be a party to anyjuvenile court proceeding concerning the child. The court may require anagency to provide services or funding for a child only if the child'scondition or needs qualify the child for services under the laws governing theagency.

(C) While the local dispute resolution process or court proceedingspursuant to this section are pending, each agency shall provide services andfunding as required by the decision made by the county council beforedispute resolution was initiated. If an agency that provides services orfunds during the local dispute resolution process or court proceedingsis determinedthrough the process or proceedings not to be responsible for providing them,it shall be reimbursed for the costs of providing the services orfundingby the agencies determined to be responsible for providing them.

Sec. 121.381. A parent or custodian who disagrees with a decision rendered by a county family and children first council regarding services for a child may initiate the dispute resolution process established in the county service coordination mechanism pursuant to division (C)(10) of section 121.37 of the Revised Code.

Not later than sixty days after the parent or custodian initiates the dispute resolution process, the council shall make findings regarding the dispute and issue a written determination of its findings.

Sec. 121.382. Each agency represented on a county family and children first council that is providing services or funding for services that are the subject of the dispute resolution process initiated by a parent or custodian under section 121.381 of the Revised Code shall continue to provide those services and the funding for those services during the dispute resolution process.

Sec. 121.403. (A) The Ohio community service council may do any of the following:

(2) Sponsor conferences, meetings, or events in furtherance of the council's purpose described in section 121.40 of the Revised Code and charge fees for participation or involvement in the conferences, meetings, or events;

(3) Sell promotional items in furtherance of the council's purpose described in section 121.40 of the Revised Code.

(B) All monetary gifts and donations, funds from the sale of promotional items, and any fees paid to the council for conferences, meetings, or events sponsored by the council shall be deposited into the Ohio community service council gifts and donations fund, which is hereby created in the state treasury. Moneys in the fund may be used only as follows:

(1) To pay operating expenses of the council, including payroll, personal services, maintenance, equipment, and subsidy payments;

(2) To support council programs promoting volunteerism and community service in the state;

Sec. 122.011. (A) The department of development shalldevelop and promote plans and programs designed to assure thatstate resources are efficiently used, economic growth is properlybalanced, community growth is developed in an orderly manner, andlocal governments are coordinated with each other and the state,and for such purposes may do all of the following:

(1) Serve as a clearinghouse for information, data, andother materials that may be helpful or necessary to persons orlocal governments, as provided in section 122.07 of the RevisedCode;

(2) Prepare and activate plans for the retention,development, expansion, and use of the resources and commerce ofthe state, as provided in section 122.04 of the Revised Code;

(3) Assist and cooperate with federal, state, and localgovernments and agencies of federal, state, and localgovernmentsin the coordination of programs to carry out the functions andduties of the department;

(4) Encourage and foster research and developmentactivities, conduct studies related to the solution of communityproblems, and develop recommendations for administrative orlegislative actions, as provided in section 122.03 of the RevisedCode;

(5) Serve as the economic and community developmentplanningagency, which shall prepare and recommend plans andprograms forthe orderly growth and development of this state andwhich shallprovide planning assistance, as provided in section122.06 of theRevised Code;

(6) Cooperate with and provide technical assistance tostatedepartments, political subdivisions, regional and localplanningcommissions, tourist associations, councils ofgovernment,community development groups, community actionagencies, and otherappropriate organizations for carrying out thefunctions andduties of the department or for the solution ofcommunityproblems;

(7) Coordinate the activities of state agencies that haveanimpact on carrying out the functions and duties of thedepartment;

(8) Encourage and assist the efforts of and cooperate withlocal governments to develop mutual and cooperative solutions totheir common problems that relate to carrying out the purposes ofthis section;

(9) Study existing structure, operations, and financing ofregional or local government and those state activities thatinvolve significant relations with regional or local governmentalunits, recommend to the governor and to the general assembly suchchanges in these provisions and activities as will improve theoperations of regional or local government, and conduct otherstudies of legal provisions that affect problems related tocarrying out the purposes of this section;

(10) Create and operate a division of community developmentto develop andadminister programs and activities that areauthorized by federal statute orthe Revised Code;

(11) Until October 15, ~~2005~~ 2007,establish fees and charges, inconsultation with thedirector of agriculture, for purchasingloans from financial institutions andproviding loan guaranteesunder the family farmloan program created under sections 901.80to 901.83 of the Revised Code;

(12) Provide loan servicing for the loans purchased andloanguaranteesprovidedunder section 901.80 of the Revised Codeasthat sectionexisted prior to October 15, ~~2005~~ 2007;

(13) Until October 15, ~~2005~~ 2007,and upon approval by thecontrolling board under division(A)(3) of section 901.82 of theRevisedCode of the release of money tobe used for purchasing aloan or providing a loan guarantee, request therelease ofthatmoney in accordance with division(B) of section 166.03 of theRevisedCode for use for the purposesof the fund created bysection 166.031 of theRevised Code.

(B)The director of development may request the attorneygeneralto, and the attorney general, in accordance with section109.02 of the Revised Code, shallbring a civil action in anycourt of competent jurisdiction. The director maybe sued in thedirector's official capacity, in connection with this chapter,inaccordance with Chapter 2743. of the Revised Code.

(2) "Biodiesel" means a mono-alkyl ester combustible liquid fuel that is derived from vegetable oils or animal fats, or any combination of those reagents, and that meets American society for testing and materials specification D6751-03a for biodiesel fuel (B100) blend stock distillate fuels.

(3) "Diesel fuel" and "gasoline" have the same meanings as in section 5735.01 of the Revised Code.

(5) "Blended biodiesel" means diesel fuel containing at least twenty per cent biodiesel by volume.

(6) "Blended gasoline" means gasoline containing at least eighty-five per cent ethanol by volume.

(a) The difference in cost between blended gasoline and gasoline containing ten per cent or less ethanol at the time that the blended gasoline is purchased;

(b) The difference in cost between blended biodiesel and diesel fuel containing two per cent or less biodiesel at the time that the blended biodiesel is purchased.

(B) For the purpose of improving the air quality in this state, the director of development shall establish an alternative fuel transportation grant program under which the director may make grants to businesses, nonprofit organizations, public school systems, or local governments for the purchase and installation of alternative fuel refueling facilities and for the purchase and use of alternative fuel.

(C) The director shall adopt rules in accordance with Chapter 119. of the Revised Code that are necessary for the administration of the alternative fuel transportation grant program. The rules shall establish at least all of the following:

(1) An application form and procedures governing the application process for a grant under the program;

(3) A requirement that the maximum grant for the purchase and installation of an alternative fuel refueling facility be no more than fifty per cent of the cost of the facility;

(4) A requirement that the maximum grant for the purchase of alternative fuel be no more than fifty per cent of the incremental cost of the fuel;

(5) Any other criteria, procedures, or guidelines that the director determines are necessary to administer the program.

(D) There is hereby created in the state treasury the alternative fuel transportation grant fund. The fund shall consist of money as may be specified by the general assembly from the energy efficiency revolving loan fund created by section 4928.61 of the Revised Code. Money in the fund shall be used to make grants under the alternative fuel transportation grant program and by the director in the administration of that program.

Sec. 122.083. (A) The director of development shall administer a shovel ready sites program to provide grants for projects to port authorities and development entities approved by the director. Grants may be used to pay the costs of any or all of the following:

(4) Payment of professional fees the amount of which shall not exceed twenty per cent of the grant amount for a project.

(B) The director shall adopt rules in accordance with Chapter 119. of the Revised Code that establish procedures and requirements necessary for the administration of the program, including a requirement that a recipient of a grant enter into an agreement with the director governing the use of the grant.

(C) There is hereby created in the state treasury the shovel ready sites fund consisting of money appropriated to it. Money in the fund shall be used solely for the purposes of this section.

(1) "Full-time employee" means an individual who isemployed for consideration for at least thirty-five hours a week,or who renders any other standard of service generally acceptedby custom or specified by contract as full-time employment.

(a) A full-time employee first employed by a taxpayer inthe project that is the subject of the agreement after thetaxpayer enters into a tax credit agreement with the tax creditauthority under this section;

(b) A full-time employee first employed by a taxpayer inthe project that is the subject of the tax credit after the taxcredit authority approves a project for a tax credit under thissection in a public meeting, as long as the taxpayer enters intothe tax credit agreement prepared by the department ofdevelopment after such meeting within sixty days after receivingthe agreement from the department. If the taxpayer fails toenter into the agreement within sixty days, "new employee" hasthe same meaning as under division (A)(2)(a) of this section.

Under division (A)(2)(a) or (b) of this section, if the taxcredit authority determines it appropriate, "new employee" alsomay include an employee re-hired or called back from lay-off towork in a new facility or on a new product or service establishedor produced by the taxpayer after entering into the agreementunder this section or after the tax credit authority approves thetax credit in a public meeting. Except as otherwise provided in this paragraph, "new employee" does not includeany employee of the taxpayer who was previously employed in thisstate by a related member of the taxpayer and whose employmentwas shifted to the taxpayer after the taxpayer entered into thetax credit agreement or after the tax credit authority approvedthe credit in a public meeting, or any employee of the taxpayerfor which the taxpayer has been granted a certificate underdivision (B) of section 5709.66 of the Revised Code. However, if the taxpayer is engaged in the enrichment and commercialization of uranium or uranium products or is engaged in research and development activities related thereto and if the tax credit authority determines it appropriate, "new employee" may include an employee of the taxpayer who was previously employed in this state by a related member of the taxpayer and whose employment was shifted to the taxpayer after the taxpayer entered into the tax credit agreement or after the tax credit authority approved the credit in a public meeting. "New employee" does not include an employee of thetaxpayer who is employed in an employment position thatwasrelocated to a project from other operations of the taxpayer inthis state or from operations of a related member of thetaxpayer in this state. Inaddition, "new employee" does not include a child, grandchild,parent, or spouse, other than a spouse who is legally separatedfrom the individual, of any individual who is an employee of thetaxpayer and who has a direct or indirect ownership interest ofat least five per cent in the profits, capital, or value of thetaxpayer. Such ownership interest shall be determined inaccordance with section 1563 of the Internal Revenue Code andregulations prescribed thereunder.

(3) "New income tax revenue" means the total amountwithheld under section 5747.06 of the Revised Code by thetaxpayer during the taxable year, or during the calendar year that includes the tax period, from the compensation of newemployees for the tax levied under Chapter 5747. of the RevisedCode.

(4) "Related member" has the same meaning as underdivision (A)(6) of section 5733.042 of the Revised Code withoutregard to division (B) of that section.

(B) The tax credit authority may make grants under thissection to foster job creation in this state. Such a grant shalltake the form of a refundable credit allowed against the taximposed by section 5725.18, 5729.03, 5733.06, or5747.02 or levied under Chapter 5751. of the Revised Code. Thecredit shall be claimed for the taxable years or tax periods specified in thetaxpayer's agreement with the tax credit authority under division(D) of this section. ~~The~~ With respect to taxes imposed under section 5733.06 or 5747.02 or Chapter 5751. of the Revised Code, the credit shall be claimed ~~after theallowance of all other credits provided by Chapter 5733. or 5747.~~ in the order required under section 5733.98, 5747.98, or 5751.98of the Revised Code. The amount of the credit available for a taxable year or for a calendar year that includes a tax period equals the newincome tax revenue for ~~the taxable~~ that year multiplied by thepercentage specified in the agreement with the tax creditauthority. Any credit granted under this section against the tax imposed by section 5733.06 or 5747.02 of the Revised Code, to the extent not fully utilized against such tax for taxable years ending prior to 2008, shall automatically be converted without any action taken by the tax credit authority to a credit against the tax levied under Chapter 5751. of the Revised Code for tax periods beginning on or after July 1, 2008, provided that the person to whom the credit was granted is subject to such tax. The converted credit shall apply to those calendar years in which the remaining taxable years specified in the agreement end.

(C) A taxpayer or potential taxpayer who proposes aproject to create new jobs in this state may apply to the taxcredit authority to enter into an agreement for a tax creditunder this section. The director of developmentshall prescribethe form of the application. After receipt of an application,the authority may enter into an agreement with the taxpayer for acredit under this section if it determines all of the following:

(2) The taxpayer's project is economically sound and willbenefit the people of this state by increasing opportunities foremployment and strengthening the economy of this state;

(3) Receiving the tax credit is a major factor in thetaxpayer's decision to go forward with the project.

(2) The term of the tax credit, which shall not exceed fifteenyears, and the first taxable year, or first calendar year that includes a tax period, for which the credit may beclaimed;

(3) A requirement that the taxpayer shall maintainoperations at the project location for at least twice the numberof years as the term of the tax credit;

(4) The percentage, as determined by the tax creditauthority, of new income tax revenue that will be allowed as theamount of the credit for each taxable year or for each calendar year that includes a tax period;

(5) A specific method for determining how many newemployees are employed during a taxable year or during a calendar year that includes a tax period;

(6) A requirement that the taxpayer annually shall reportto the director of development the number of newemployees, thenew income tax revenue withheld in connection with the newemployees, and any other information the director needs toperform the director's duties under this section;

(7) A requirement that the director ofdevelopmentannually shall verify the amounts reported under division (D)(6)of this section, and after doing so shall issue a certificate tothe taxpayer stating that the amounts have been verified;

(8)(a) A provision requiring that thetaxpayer, except as otherwise provided in division(D)(8)(b) of this section,shall not relocate employment positions from elsewhere in this state to theproject site thatis the subject of the agreement for the lesser of five years from the date theagreement is entered into or the number of years thetaxpayer is entitled to claim the tax credit.

(b) The taxpayer may relocate employment positions from elsewhereinthis state to the project site that is the subject of the agreement if thedirector of development determines both of thefollowing:

(i) That the site from which the employment positions would berelocatedis inadequate to meet market and industry conditions, expansion plans,consolidation plans, or other business considerations affecting thetaxpayer;

(ii) That the legislative authority of the county,township, or municipal corporation from which the employment positions wouldbe relocated hasbeen notified of the relocation.

For purposes of this section, the movement of anemployment position from one political subdivision to anotherpolitical subdivision shall be considered a relocation of anemployment position, but the transfer of an individual employeefrom one political subdivision to another political subdivisionshall not be considered a relocation of an employment positionas long as the individual's employment position in the firstpolitical subdivision is refilled.

(E) If a taxpayer fails to meet or comply with anycondition or requirement set forth in a tax credit agreement, thetax credit authority may amend the agreement to reduce thepercentage or term of the tax credit. The reduction of thepercentage or term shall take effect in the taxable yearimmediately following the taxable year in which the authorityamends the agreement or in the first tax period beginning in the calendar year immediately following the calendar year in which the authority amends the agreement. If the taxpayer relocates employment positions in violation of theprovision requiredunder division (D)(8)(a)of this section, the taxpayer shall not claim the tax credit under section5733.0610 of the Revised Code for any tax yearsfollowing the calendar year in which the relocation occurs, or shall not claimthe tax credit undersection 5725.32, 5729.032, or 5747.058 of the Revised Code for the taxable year inwhich the relocation occurs and any subsequent taxable years, and shall not claim the tax credit under division (A) of section 5751.50 of the Revised Code for any tax period in the calendar year in which the relocation occurs and any subsequent tax periods.

(F) Projects that consist solely ofpoint-of-final-purchase retail facilities are not eligible for atax credit under this section. If a project consists of bothpoint-of-final-purchase retail facilities and nonretailfacilities, only the portion of the project consisting of thenonretail facilities is eligible for a tax credit and only thenew income tax revenue from new employees of the nonretailfacilities shall be considered when computing the amount of thetax credit. If a warehouse facility is part of apoint-of-final-purchase retail facility and supplies only thatfacility, the warehouse facility is not eligible for a taxcredit. Catalog distribution centers are not consideredpoint-of-final-purchase retail facilities for the purposes ofthis division, and are eligible for tax credits under thissection.

(G) Financial statements and other information submittedto the department of development or the taxcredit authority byan applicant or recipient of a tax credit under this section, andany information taken for any purpose from such statements orinformation, are not public records subject to section 149.43 ofthe Revised Code. However, the chairperson of theauthority maymake use of the statements and other information for purposes ofissuing public reports or in connection with court proceedingsconcerning tax credit agreements under this section. Upon therequest of the tax commissioner or, if the applicant or recipient is an insurance company, upon the request of the superintendent of insurance, the chairperson of theauthorityshall provide to the commissioner or superintendent any statement or informationsubmitted by an applicant or recipient of a tax credit inconnection with the credit. The commissioner or superintendent shall preserve theconfidentiality of the statement or information.

(H) A taxpayer claiming a credit under this section shallsubmit to the tax commissioner or, if the taxpayer is an insurance company, to the superintendent of insurance, a copy of the director ofdevelopment's certificate of verification under division (D)(7)of this section for the taxable year or for the calendar year that includes the tax period. However, failure to submita copy of the certificate does not invalidate a claim for acredit.

(I) The director of development, afterconsultation withthe tax commissioner and the superintendent of insurance and in accordance with Chapter 119. of theRevised Code, shall adopt rules necessary to implement thissection. The rules may provide for recipients of tax creditsunder this section to be charged fees to cover administrativecosts of the tax credit program. At the time the directorgives publicnotice under division (A) of section 119.03 of the Revised Codeof the adoption of the rules, the director shall submit copies ofthe proposed rules to the chairpersons of the standingcommittees oneconomic development in the senate and the house ofrepresentatives.

(J) For the purposes of this section, a taxpayer mayinclude a partnership, a corporation that has made an electionunder subchapter S of chapter one of subtitle A of the InternalRevenue Code, or any other business entity through which incomeflows as a distributive share to its owners. A credit receivedunder this section by a partnership, S-corporation, or other suchbusiness entity shall be apportioned among the persons to whomthe income or profit of the partnership, S-corporation, or otherentity is distributed, in the same proportions as those in whichthe income or profit is distributed.

(K) If the director of development determinesthat ataxpayer who has received a credit under this section is notcomplying with the requirement under division (D)(3) of thissection, the director shall notify the tax credit authorityof thenoncompliance. After receiving such a notice, and after givingthe taxpayer an opportunity to explain the noncompliance, the taxcredit authority may require the taxpayer to refund to this statea portion of the credit in accordance with the following:

(1) If the taxpayer maintained operations at the projectlocation for at least one and one-half times the number of yearsof the term of the tax credit, an amount not exceedingtwenty-five per cent of the sum of any previously allowed creditsunder this section;

(2) If the taxpayer maintained operations at the projectlocation for at least the number of years of the term of the taxcredit, an amount not exceeding fifty per cent of the sum of anypreviously allowed credits under this section;

(3) If the taxpayer maintained operations at the projectlocation for less than the number of years of the term of the taxcredit, an amount not exceeding one hundred per cent of the sumof any previously allowed credits under this section.

In determining the portion of the tax credit to be refundedto this state, the tax credit authority shall consider the effectof market conditions on the taxpayer's project and whether thetaxpayer continues to maintain other operations in this state. After making the determination, the authority shall certify theamount to be refunded to the tax commissioner or superintendent of insurance, as appropriate. ~~The~~ If the amount is certified to the commissioner, the commissionershall make an assessment for that amount against the taxpayerunder Chapter 5733. or, 5747., or 5751. of the Revised Code. If the amount is certified to the superintendent, the superintendent shall make an assessment for that amount against the taxpayer under Chapter 5725. or 5729. of the Revised Code. The timelimitations on assessments under ~~Chapter 5733. or 5747. of theRevised Code~~ those chapters do not apply to an assessment under this division,but the commissioner or superintendent, as appropriate, shall make the assessment within one yearafter the date the authority certifies to the commissioner or superintendentthe amount to berefunded.

(L) On or before the thirty-first day of March each year,the director of development shall submit areport to thegovernor, the president of the senate, and the speaker of thehouse of representatives on the tax credit program under thissection. The report shall include information on the number ofagreements that were entered into under this section during thepreceding calendar year, a description of the project that is thesubject of each such agreement, and an update on the status ofprojects under agreements entered into before the precedingcalendar year.

During the fifth year of the tax credit program, thedirector of development in conjunction with thedirector ofbudget and management shall conduct an evaluation of it. Theevaluation shall include assessments of the effectiveness of theprogram in creating new jobs in this state and of the revenueimpact of the program, and may include a review of the practicesand experiences of other states with similar programs. Thedirector of development shall submit a report onthe evaluationto the governor, the president of the senate, and the speaker ofthe house of representatives on or before January 1, 1998.

(M) There is hereby created the tax credit authority,which consists of the director of developmentand four othermembers appointed as follows: the governor, the president of thesenate, and the speaker of the house of representatives eachshall appoint one member who shall be a specialist in economicdevelopment; the governor also shall appoint a member who is aspecialist in taxation. Of the initial appointees, the membersappointed by the governor shall serve a term of two years; themembers appointed by the president of the senate and the speakerof the house of representatives shall serve a term of four years.Thereafter, terms of office shall be for four years. Initialappointments to the authority shall be made within thirty daysafter January 13,1993. Eachmember shall serve on the authority until the end of the term forwhich the member was appointed. Vacancies shall be filled inthe samemanner provided for original appointments. Any member appointedto fill a vacancy occurring prior to the expiration of the termfor which the member's predecessor was appointed shall holdoffice for theremainder of that term. Members may be reappointed to theauthority. Members of the authority shall receive theirnecessary and actual expenses while engaged in the business ofthe authority. The director of developmentshall serve aschairperson of the authority, and the members annuallyshall elect avice-chairperson from among themselves. Threemembers of theauthority constitute a quorum to transact and vote on thebusiness of the authority. The majority vote of the membershipof the authority is necessary to approve any such business,including the election of the vice-chairperson.

The director of development may appoint aprofessional employee of the department ofdevelopment to serve as the director's substitute at a meeting of theauthority. The director shallmake the appointment in writing. In the absence of the directorfrom a meeting of the authority, the appointed substitute shallserve as chairperson. In the absence of both thedirector and the director'ssubstitute from a meeting, the vice-chairpersonshall serve aschairperson.

(N) For purposes of the credits granted by this section against the taxes imposed under sections 5725.18 and 5729.03 of the Revised Code, "taxable year" means the period covered by the taxpayer's annual statement to the superintendent of insurance.

(1) "Capital investment project" means a plan of investmentat a project site for the acquisition, construction, renovation,or repair ofbuildings, machinery, or equipment,or forcapitalized costs of basic research and new product developmentdetermined in accordance with generally accepted accountingprinciples, but does notincludeany of the following:

(a) Payments made for the acquisition of personal propertythroughoperating leases;

(c) Payments made to a related member as defined in section5733.042 of the Revised Code or to an elected consolidated taxpayer or a combined taxpayer as defined in section 5751.01 of the Revised Code.

(2) "Eligible business" means a business with Ohiooperationssatisfying all of the following:

(a) Employed an average of at least one thousand employeesin full-time employment positions at a project site during each ofthetwelve months preceding the application for a tax credit underthis section; and

(b) On or after January 1, 2002, has made payments for thecapital investment project ofeither of the following:

(i) At least two hundred million dollars in the aggregateat the projectsite during a period of three consecutive calendaryearsincluding the calendar year that includes a day of thetaxpayer's taxable year or tax period with respect to which the credit isgranted;

(ii) If the average wage of all full-time employment positions at theproject site is greater than four hundred per cent of the federalminimum wage, at least one hundred million dollars in the aggregate at the projectsite during a period of three consecutive calendar years includingthe calendar year that includes a day of the taxpayer's taxableyear or tax period with respect to which the credit is granted.

(c)Is engaged at the project site primarily as amanufacturer or is providing significant corporate administrativefunctions;

(d) Has had a capital investment project reviewed andapproved by the tax creditauthority as provided in divisions (C),(D), and (E) of thissection.

(3) "Full-time employment position" means a position ofemployment for consideration for at least thirty-five hours aweek that has beenfilled for at leastone hundred eighty days immediately precedingthe filing of anapplication under this section and for at leastone hundred eighty days during each taxable year or each calendar year that includes a tax period with respect towhich the credit isgranted.

(4)"Manufacturer" has the same meaning as in section5739.011 of the Revised Code.

(5) "Project site" means an integrated complexof facilitiesin this state, as specifiedby the tax credit authority under thissection, within afifteen-mile radius where a taxpayer is primarily operating as an eligible business.

(6) "Applicable corporation" means a corporation satisfying all of the following:

(a)(i) For the entire taxable year immediately preceding the tax year, the corporation develops software applications primarily to provide telecommunication billing and information services through outsourcing or licensing to domestic or international customers.

(ii) Sales and licensing of software generated at least six hundred million dollars in revenue during the taxable year immediately preceding the tax year the corporation is first entitled to claim the credit provided under division (B) of this section.

(b) For the entire taxable year immediately preceding the tax year, the corporation or one or more of its related members provides customer or employee care and technical support for clients through one or more contact centers within this state, and the corporation and its related members together have a daily average, based on a ~~three hundred sixty-five day~~ three-hundred-sixty-five-day year, of at least five hundred thousand successful customer contacts through one or more of their contact centers, wherever located.

(7) "Related member" has the same meaning as in section 5733.042 of the Revised Code as that section existed on the effective date of its amendment by Am. Sub. H.B. 215 of the 122nd general assembly, September 29, 1997.

(8) "Successful customer contact" means a contact with an end user via telephone, including interactive voice recognition or similar means, where the contact culminates in a conversation or connection other than a busy signal or equipment busy.

(9) "Telecommunications" means all forms of telecommunications service as defined in section 5739.01 of the Revised Code, and includes services in wireless, wireline, cable, broadband, internet protocol, and satellite.

(10)(a) "Applicable difference" means the difference between the tax for the tax year under Chapter 5733. of the Revised Code applying the law in effect for that tax year, and the tax for that tax year if section 5733.042 of the Revised Code applied as that section existed on the effective date of its amendment by Am. Sub. H.B. 215 of the 122nd general assembly, September 29, 1997, subject to division (A)(10)(b) of this section.

(b) If the tax rate set forth in division (B) of section 5733.06 of the Revised Code for the tax year is less than eight and one-half per cent, the tax calculated under division (A)(10)(a) of this section shall be computed by substituting a tax rate of eight and one-half per cent for the rate set forth in division (B) of section 5733.06 of the Revised Code for the tax year.

(B) The tax credit authority created under section 122.17 ofthe Revised Code may grant tax credits under this section for thepurpose of fostering job retention in this state. Uponapplication by an eligible business and upon consideration of therecommendation of the director of budget and management, taxcommissioner, and director of development under division (C) ofthis section, the tax credit authority may grant to an eligiblebusiness a nonrefundable credit against the tax imposed by section5733.06 or 5747.02 or levied under Chapter 5751. of the Revised Code for a period up to fifteentaxable years and against the tax levied by Chapter 5751. of the Revised Code for a period of up to fifteen calendar years. The credit shall be in anamount not exceedingseventy-five per cent of the Ohio income tax withheldfrom theemployees of the eligible business occupying full-time employmentpositions at theproject site during the calendar year thatincludes the last day of such business' taxable year or tax periodwith respectto which thecredit is granted. The amount of the credit shallnot be based onthe Ohio income tax withheld from full-timeemployees for acalendar year prior to the calendar year in whichthe minimum investmentrequirementreferred to indivision(A)(2)(b) of this section is completed.Thecredit shallbeclaimed only for the taxable years or tax periods specifiedin theeligiblebusiness' agreement with the tax credit authorityunder division(E) of this section, but in no event shall thecredit be claimedfor a taxable year or tax period terminating before the datespecified in theagreement. Any credit granted under this section against the tax imposed by section 5733.06 or 5747.02 of the Revised Code, to the extent not fully utilized against such tax for taxable years ending prior to 2008, shall automatically be converted without any action taken by the tax credit authority to a credit against the tax levied under Chapter 5751. of the Revised Code for tax periods beginning on or after July 1, 2008, provided that the person to whom the credit was granted is subject to such tax. The converted credit shall apply to those calendar years in which the remaining taxable years specified in the agreement end.

The credit computed under this division is in addition to any credit allowed under division (M) of this section which the tax credit authority may also include in the agreement.

Any unused portion of a tax credit may be carried forwardfornot more than three additional years after the year for whichthecredit is granted.

(C) A taxpayerthat proposes a capital investmentproject toretain jobs in this state may apply to the tax creditauthority toenter into an agreement for a tax credit under thissection. Thedirector of development shall prescribe the form oftheapplication. After receipt of an application, the authorityshallforward copies of the application to the director of budgetandmanagement, the tax commissioner, and the director ofdevelopment,each of whom shall review the application todetermine theeconomic impact the proposed project would have onthe state andthe affected political subdivisions and shall submita summary oftheir determinations and recommendations to theauthority. ~~Theauthority shall make no agreements under thissection after June30, 2007.~~

(D) Upon review of the determinations and recommendationsdescribed in division (C) of this section, the tax creditauthority may enter into an agreement with the taxpayer for acredit under this section ifthe authority determines all ofthe following:

(1) The taxpayer's capital investment project will result inthe retention of full-time employment positions in this state.

(2) The taxpayer is economically sound and has the abilityto complete the proposed capital investment project.

(3) The taxpayer intends to and has the ability to maintainoperations at the project site for at least twice the term of thecredit.

(4) Receiving the credit is a major factor in the taxpayer'sdecision to begin, continue with, or complete the project.

(5) The political subdivisions in which the project islocated have agreed to provide substantial financial support tothe project.

(1) A detailed description of the project that is thesubject of the agreement, including the amount of the investment,the period over which the investment has been or is being made,and the number of full-time employment positions at the projectsite.

(2) The method of calculating the number of full-timeemployment positions as specified in division (A)(3) of thissection.

(3) The term and percentage of the tax credit, and thefirstyear for which the credit may be claimed.

(4) A requirement that the taxpayer maintainoperations atthe project site for at least twice the numberof years as theterm of the credit.

(5) A requirement that the taxpayer retain a specifiednumber of full-time employment positions at the project site andwithin this state for the term of the credit, including arequirement that the taxpayer continue to employ at least onethousand employees in full-time employment positions at theprojectsite during the entire term of any agreement, subject todivision (E)(7)of this section.

(6) A requirement that the taxpayer annually report to thedirector of development the number of full-time employmentpositions subject to the credit, the amount of tax withheld fromemployees in those positions, the amount of the payments made forthe capital investment project, and any other information thedirector needs to perform the director's duties under thissection.

(7) A requirement that the director of development annuallyreview the annual reports of the taxpayer to verify theinformation reported under division (E)(6) of this section andcompliance with the agreement. Upon verification, the directorshall issue a certificate to the taxpayer stating that theinformation has been verified and identifying the amount of thecredit for the taxable year. Unless otherwise specified by the tax credit authority in a resolution and included as part of the agreement, the director shall not issue acertificate for any year in which the total number of filledfull-time employment positions for each day of the calendar yeardivided by three hundred sixty-five is less than ninety per centof the full-time employment positions specified in division (E)(5)of this section. In determining the number of full-timeemployment positions, no position shall be counted that is filledby an employee who is included in the calculation of a tax creditunder section 122.17 of the Revised Code.

(8)(a) A provision requiring that the taxpayer, except asotherwise provided in division (E)(8)(b) of this section, shallnot relocate employment positions from elsewhere in this state tothe project site that is the subject of the agreement for thelesser of five years from the date the agreement is entered intoor the number of years the taxpayer is entitled to claim thecredit.

(b) The taxpayer may relocate employment positions fromelsewhere in this state to the project site that is the subject ofthe agreement if the director of development determines both ofthe following:

(i) That the site from which the employment positions wouldbe relocated is inadequate to meet market and industry conditions,expansion plans, consolidation plans, or other businessconsiderations affecting the taxpayer;

(ii) That the legislative authority of the county, township,or municipal corporation from which the employment positions wouldbe relocated has been notified of the relocation.

For purposes ofthis section, the movement of an employmentposition from onepolitical subdivision to another politicalsubdivision shall beconsidered a relocation of an employmentposition unless the movement is confined to the project site.Thetransfer of an individual employee from onepoliticalsubdivisionto another political subdivision shall notbeconsidered arelocation of an employment position as long astheindividual'semployment position in the first politicalsubdivision isrefilled.

(9) A waiver by the taxpayer of any limitations periodsrelating to assessments or adjustments resulting from thetaxpayer's failure to comply with the agreement.

(F) If a taxpayer fails to meet or comply with any conditionor requirement set forth in a tax credit agreement, the tax creditauthority may amend the agreement to reduce the percentage or termof the credit. The reduction of the percentage or term shall takeeffect in the taxable year immediately following the taxable yearin which the authority amends the agreement or in the first tax period beginning in the calendar year immediately following the calendar year in which the authority amends the agreement. If the taxpayerrelocates employment positions in violation of the provisionrequired under division (D)(8)(a) of this section, the taxpayershall not claim the tax credit under section 5733.0610 of theRevised Code for any tax years following the calendar year inwhich the relocation occurs, or shall not claim the tax creditunder section 5747.058 of the Revised Code for the taxable year inwhich the relocation occurs and any subsequent taxable years, and shall not claim the tax credit under division (A) of section 5751.50 of the Revised Code for the tax period in which the relocation occurs and any subsequent tax periods.

(G) Financial statements and other information submitted tothe department of development or the tax credit authority by anapplicant for or recipient of a tax credit under this section, andany information taken for any purpose from such statements orinformation, are not public records subject to section 149.43 ofthe Revised Code. However, the chairperson of the authority maymake use of the statements and other information for purposes ofissuing public reports or in connection with court proceedingsconcerning tax credit agreements under this section. Upon therequest of the tax commissioner, the chairperson of the authorityshall provide to the commissioner any statement or otherinformation submitted by an applicant for or recipient of a taxcredit in connection with the credit. The commissioner shallpreserve the confidentiality of the statement or otherinformation.

(H) A taxpayer claiming a tax credit under this sectionshall submit to the tax commissioner a copy of the director ofdevelopment's certificate of verification under division (E)(7) ofthis section for the taxable year or for the calendar year that includes the tax period. However, failure to submit acopy of the certificate does not invalidate a claim for a credit.

(I) For the purposes of this section, a taxpayer may includea partnership, a corporation that has made an election undersubchapter S of chapter one of subtitle A of the Internal RevenueCode, or any other business entity through which income flows as adistributive share to its owners. A tax credit received underthis section by a partnership, S-corporation, or other suchbusiness entity shall be apportioned among the persons to whom theincome or profit of the partnership, S-corporation, or otherentity is distributed, in the same proportions as those in whichthe income or profit is distributed.

(J) If the director of development determines that ataxpayerthat received a tax credit under this section isnotcomplying with the requirement under division (E)(4) of thissection, thedirector shall notify the tax credit authority of thenoncompliance. After receiving such a notice, and after givingthe taxpayer an opportunity to explain the noncompliance, theauthority may terminate the agreement and require the taxpayer torefund to the state all or a portion of the credit claimed inprevious years, as follows:

(1) If the taxpayer maintained operations at the projectsite for less than the term of the credit, the amount required tobe refunded shall not exceed the amount of any tax creditspreviously allowed and received under this section.

(2) If the taxpayer maintained operations at the projectsite longer than the term of the credit but less than one andone-half times the term of the credit, the amount required to berefunded shall not exceed fifty per cent of the sum of any taxcredits previously allowed and received under this section.

(3) If the taxpayer maintained operations at the projectsite for at least one and one-half times the term of the creditbut less than twice the term of the credit, the amount required tobe refunded shall not exceed twenty-five per cent of the sum ofany tax credits previously allowed and received under thissection.

In determining the portion of the credit to be refunded tothis state, the authority shall consider the effect of marketconditions on the taxpayer's project and whether the taxpayercontinues to maintain other operations in this state. Aftermaking the determination, the authority shall certify the amountto be refunded to the tax commissioner. The commissioner shallmake an assessment for that amount against the taxpayer underChapter 5733. or, 5747., or 5751. of the Revised Code. The time limitationson assessments under ~~Chapter 5733. or 5747. of the Revised Code~~ those chapters donot apply to an assessment under this division, but thecommissioner shall make the assessment within one year after thedate the authority certifies to the commissioner the amount to berefunded.

If the director of development determines that a taxpayerthat received a tax credit under this section has reduced thenumber of employees agreed to under division (E)(5) of thissection by more than ten per cent, the director shall notify thetax credit authority of the noncompliance. After receiving suchnotice, and after providing the taxpayer an opportunity to explainthe noncompliance, the authority may amend the agreement to reducethe percentage or term of the tax credit. The reduction in thepercentage or term shall take effect in the taxable year, or in the calendar year that includes the tax period, in whichthe authority amends the agreement.

(K) The director of development, after consultation with thetax commissioner and in accordance with Chapter 119. of theRevised Code, shall adopt rules necessary to implement thissection. The rules may provide for recipients of tax creditsunder this section to be charged fees to cover administrativecosts of the tax credit program. At the time the director givespublic notice under division (A) of section 119.03 of the RevisedCode of the adoption of the rules, the director shall submitcopies of the proposed rules to the chairpersons of the standingcommittees on economic development in the senate and the house ofrepresentatives.

(L) On or before the thirty-first day of March of each year,the director of development shall submit a report to the governor,the president of the senate, and the speaker of the house ofrepresentatives on the tax credit program under this section. Thereport shall include information on the number of agreements thatwere entered into under this section during the preceding calendaryear, a description of the project that is the subject of eachsuch agreement, and an update on the status of projects underagreements entered into before the preceding calendar year.

(M)(1) A nonrefundable credit shall be allowed to an applicable corporation and its related members in an amount equal to the applicable difference. The credit is in addition to the credit granted to the corporation or related members under division (B) of this section. The credit is subject to divisions (B) to (E) and division (J) of this section.

(2) A person qualifying as an applicable corporation under this section for a tax year does not necessarily qualify as an applicable corporation for any other tax year. No person is entitled to the credit allowed under division (M) of this section for the tax year immediately following the taxable year during which the person fails to meet the requirements in divisions (A)(6)(a)(i) and (A)(6)(b) of this section. No person is entitled to the credit allowed under division (M) of this section for any tax year for which the person is not eligible for the credit provided under division (B) of this section.

Sec. 122.172. (A) As used in this section, "tax liability" means the tax owed under section 5733.06 or 5747.02 of the Revised Code after allowance of all nonrefundable credits and prior to the allowance of all refundable credits. The tax owed under section 5733.06 of the Revised Code shall take into account any adjustments to such tax required by division (G) of section 5733.01 of the Revised Code that apply prior to allowance of refundable credits.

(B)(1) The director of development shall administer the manufacturing equipment grant program to provide grants for new manufacturing machinery and equipment qualifying for the grant under section 122.173 of the Revised Code. Except as provided in division (C) of this section, the grants apply to the taxes imposed by sections 5733.06 and 5747.02 of the Revised Code for taxable years ending on or after July 1, 2005.

(2) To claim a grant, a taxpayer satisfying the requirements of section 122.173 of the Revised Code shall complete a grant request form, as prescribed by the director in consultation with the tax commissioner, and shall file the form with the tax return for the taxable year for which the grant is claimed. In no event shall the grant reduce a taxpayer's tax liability below the minimum tax owed for the taxable year. The grant request form shall provide the information required to allow the grant for the taxable year and is subject to audit by the director and the commissioner. Any portion of the grant in excess of the taxpayer's tax liability shall not be refundable but may be carried forward as provided in section 122.173 of the Revised Code. Upon the director's request, the commissioner shall provide completed grant request forms filed under this section to the director in a mutually agreed upon format.

(C) If a taxpayer is required to repay any credit allowed under section 5733.33 or 5747.31 of the Revised Code for a taxable year ending prior to July 1, 2005, for a reason not specified in Chapter 5733. or 5747. of the Revised Code, a grant shall be available for that taxable year under section 122.173 of the Revised Code to the extent provided in that section.

(D) Any tax liability under section 5733.06 or 5747.02 of the Revised Code that is underpaid as the result of an improper claim for a grant under this section may be assessed by the tax commissioner in the manner provided by section 5733.11 or 5747.11 of the Revised Code.

(1) "Manufacturing machinery and equipment" means engines and machinery, and tools and implements, of every kind used, or designed to be used, in refining and manufacturing. "Manufacturing machinery and equipment" does not include property acquired after December 31, 1999, that is used:

(b) For the generation of electricity, if fifty per cent or more of the electricity that the property generates is consumed, during the one-hundred-twenty-month period commencing with the date the property is placed in service, by persons that are not related members to the person who generates the electricity.

(2) "New manufacturing machinery and equipment" means manufacturing machinery and equipment, the original use in this state of which commences with the taxpayer or with a partnership of which the taxpayer is a partner. "New manufacturing machinery and equipment" does not include property acquired after December 31, 1999, that is used:

(3)(a) "Purchase" has the same meaning as in section 179(d)(2) of the Internal Revenue Code.

(b) For purposes of this section, any property that is not manufactured or assembled primarily by the taxpayer is considered purchased at the time the agreement to acquire the property becomes binding. Any property that is manufactured or assembled primarily by the taxpayer is considered purchased at the time the taxpayer places the property in service in the county for which the taxpayer will calculate the county excess amount.

(c) Notwithstanding section 179(d) of the Internal Revenue Code, a taxpayer's direct or indirect acquisition of new manufacturing machinery and equipment is not purchased on or after July 1, 1995, if the taxpayer, or a person whose relationship to the taxpayer is described in subparagraphs (A), (B), or (C) of section 179(d)(2) of the Internal Revenue Code, had directly or indirectly entered into a binding agreement to acquire the property at any time prior to July 1, 1995.

(4) "Qualifying period" means the period that begins July 1, 1995, and ends June 30, 2005.

(5) "County average new manufacturing machinery and equipment investment" means either of the following:

(a) The average annual cost of new manufacturing machinery and equipment purchased for use in the county during baseline years, in the case of a taxpayer that was in existence for more than one year during baseline years.

(b) Zero, in the case of a taxpayer that was not in existence for more than one year during baseline years.

(6) "Partnership" includes a limited liability company formed under Chapter 1705. of the Revised Code or under the laws of any other state, provided that the company is not classified for federal income tax purposes as an association taxable as a corporation.

(7) "Partner" includes a member of a limited liability company formed under Chapter 1705. of the Revised Code or under the laws of any other state, provided that the company is not classified for federal income tax purposes as an association taxable as a corporation.

(8) "Distressed area" means either a municipal corporation that has a population of at least fifty thousand or a county that meets two of the following criteria of economic distress, or a municipal corporation the majority of the population of which is situated in such a county:

(a) Its average rate of unemployment, during the most recent five-year period for which data are available, is equal to at least one hundred twenty-five per cent of the average rate of unemployment for the United States for the same period;

(b) It has a per capita income equal to or below eighty per cent of the median county per capita income of the United States as determined by the most recently available figures from the United States census bureau;

(c)(i) In the case of a municipal corporation, at least twenty per cent of the residents have a total income for the most recent census year that is below the official poverty line;

(ii) In the case of a county, in intercensal years, the county has a ratio of transfer payment income to total county income equal to or greater than twenty-five per cent.

(9) "Eligible area" means a distressed area, a labor surplus area, an inner city area, or a situational distress area.

(10) "Inner city area" means, in a municipal corporation that has a population of at least one hundred thousand and does not meet the criteria of a labor surplus area or a distressed area, targeted investment areas established by the municipal corporation within its boundaries that are comprised of the most recent census block tracts that individually have at least twenty per cent of their population at or below the state poverty level or other census block tracts contiguous to such census block tracts.

(11) "Labor surplus area" means an area designated as a labor surplus area by the United States department of labor.

(12) "Official poverty line" has the same meaning as in division (A) of section 3923.51 of the Revised Code.

(13) "Situational distress area" means a county or a municipal corporation that has experienced or is experiencing a closing or downsizing of a major employer that will adversely affect the county's or municipal corporation's economy. In order to be designated as a situational distress area, for a period not to exceed thirty-six months, the county or municipal corporation may petition the director of development. The petition shall include written documentation that demonstrates all of the following adverse effects on the local economy:

(b) The impact that the job loss has on the county's or municipal corporation's unemployment rate as measured by the state director of job and family services;

(e) The impact that the closing or downsizing has on suppliers located in the county or municipal corporation.

(14) "Cost" has the same meaning and limitation as in section 179(d)(3) of the Internal Revenue Code.

(a) Calendar years 1992, 1993, and 1994, with regard to a grant claimed for the purchase during calendar year 1995, 1996, 1997, or 1998 of new manufacturing machinery and equipment;

(b) Calendar years 1993, 1994, and 1995, with regard to a grant claimed for the purchase during calendar year 1999 of new manufacturing machinery and equipment;

(c) Calendar years 1994, 1995, and 1996, with regard to a grant claimed for the purchase during calendar year 2000 of new manufacturing machinery and equipment;

(d) Calendar years 1995, 1996, and 1997, with regard to a grant claimed for the purchase during calendar year 2001 of new manufacturing machinery and equipment;

(e) Calendar years 1996, 1997, and 1998, with regard to a grant claimed for the purchase during calendar year 2002 of new manufacturing machinery and equipment;

(f) Calendar years 1997, 1998, and 1999, with regard to a grant claimed for the purchase during calendar year 2003 of new manufacturing machinery and equipment;

(g) Calendar years 1998, 1999, and 2000, with regard to a grant claimed for the purchase during calendar year 2004 of new manufacturing machinery and equipment;

(h) Calendar years 1999, 2000, and 2001, with regard to a grant claimed for the purchase on or after January 1, 2005, and on or before June 30, 2005, of new manufacturing machinery and equipment.

(16) "Related member" has the same meaning as in section 5733.042 of the Revised Code.

(17) "Qualifying controlled group" has the same meaning as in section 5733.04 of the Revised Code.

(18) "Tax liability" has the same meaning as in section 122.172 of the Revised Code.

(B)(1) Subject to divisions (I) and (J) of this section, a grant is allowed against the tax imposed by section 5733.06 or 5747.02 of the Revised Code for a taxpayer that purchases new manufacturing machinery and equipment during the qualifying period, provided that the new manufacturing machinery and equipment are installed in this state not later than June 30, 2006. The taxpayer need not be a manufacturer.

(2)(a) Except as otherwise provided in division (B)(2)(b) of this section, a grant may be claimed under this section in excess of one million dollars only if the cost of all manufacturing machinery and equipment owned in this state by the taxpayer claiming the grant on the last day of the calendar year exceeds the cost of all manufacturing machinery and equipment owned in this state by the taxpayer on the first day of that calendar year.

As used in division (B)(2)(a) of this section, "calendar year" means the calendar year in which the machinery and equipment for which the grant is claimed was purchased.

(b) Division (B)(2)(a) of this section does not apply if the taxpayer claiming the grant applies for and is issued a waiver of the requirement of that division. A taxpayer may apply to the director of development for such a waiver in the manner prescribed by the director, and the director may issue such a waiver if the director determines that granting the grant is necessary to increase or retain employees in this state, and that the grant has not caused relocation of manufacturing machinery and equipment among counties within this state for the primary purpose of qualifying for the grant.

(C)(1) Except as otherwise provided in division (C)(2) and division (I) of this section, the grant amount is equal to seven and one-half per cent of the excess of the cost of the new manufacturing machinery and equipment purchased during the calendar year for use in a county over the county average new manufacturing machinery and equipment investment for that county.

(2) Subject to division (I) of this section, as used in division (C)(2) of this section, "county excess" means the taxpayer's excess cost for a county as computed under division (C)(1) of this section.

Subject to division (I) of this section, a taxpayer with a county excess, whose purchases included purchases for use in any eligible area in the county, the grant amount is equal to thirteen and one-half per cent of the cost of the new manufacturing machinery and equipment purchased during the calendar year for use in the eligible areas in the county, provided that the cost subject to the thirteen and one-half per cent rate shall not exceed the county excess. If the county excess is greater than the cost of the new manufacturing machinery and equipment purchased during the calendar year for use in eligible areas in the county, the grant amount also shall include an amount equal to seven and one-half per cent of the amount of the difference.

(3) If a taxpayer is allowed a grant for purchases of new manufacturing machinery and equipment in more than one county or eligible area, it shall aggregate the amount of those grants each year.

(4) Except as provided in division (J) of this section, the taxpayer shall claim one-seventh of the grant amount for the taxable year ending in the calendar year in which the new manufacturing machinery and equipment is purchased for use in the county by the taxpayer or partnership. One-seventh of the taxpayer grant amount is allowed for each of the six ensuing taxable years. Except for carried-forward amounts, the taxpayer is not allowed any grant amount remaining if the new manufacturing machinery and equipment is sold by the taxpayer or partnership or is transferred by the taxpayer or partnership out of the county before the end of the seven-year period unless, at the time of the sale or transfer, the new manufacturing machinery and equipment has been fully depreciated for federal income tax purposes.

(5)(a) A taxpayer that acquires manufacturing machinery and equipment as a result of a merger with the taxpayer with whom commenced the original use in this state of the manufacturing machinery and equipment, or with a taxpayer that was a partner in a partnership with whom commenced the original use in this state of the manufacturing machinery and equipment, is entitled to any remaining or carried-forward grant amounts to which the taxpayer was entitled.

(b) A taxpayer that enters into an agreement under division (C)(3) of section 5709.62 of the Revised Code and that acquires manufacturing machinery or equipment as a result of purchasing a large manufacturing facility, as defined in section 5709.61 of the Revised Code, from another taxpayer with whom commenced the original use in this state of the manufacturing machinery or equipment, and that operates the large manufacturing facility so purchased, is entitled to any remaining or carried-forward grant amounts to which the other taxpayer who sold the facility would have been entitled under this section had the other taxpayer not sold the manufacturing facility or equipment.

(c) New manufacturing machinery and equipment is not considered sold if a pass-through entity transfers to another pass-through entity substantially all of its assets as part of a plan of reorganization under which substantially all gain and loss is not recognized by the pass-through entity that is transferring the new manufacturing machinery and equipment to the transferee and under which the transferee's basis in the new manufacturing machinery and equipment is determined, in whole or in part, by reference to the basis of the pass-through entity that transferred the new manufacturing machinery and equipment to the transferee.

(d) Division (C)(5) of this section applies only if the acquiring taxpayer or transferee does not sell the new manufacturing machinery and equipment or transfer the new manufacturing machinery and equipment out of the county before the end of the seven-year period to which division (C)(4) of this section refers.

(e) Division (C)(5)(b) of this section applies only to the extent that the taxpayer that sold the manufacturing machinery or equipment, upon request, timely provides to the tax commissioner any information that the tax commissioner considers to be necessary to ascertain any remaining or carried-forward amounts to which the taxpayer that sold the facility would have been entitled under this section had the taxpayer not sold the manufacturing machinery or equipment. Nothing in division (C)(5)(b) or (e) of this section shall be construed to allow a taxpayer to claim any grant amount with respect to the acquired manufacturing machinery or equipment that is greater than the amount that would have been available to the other taxpayer that sold the manufacturing machinery or equipment had the other taxpayer not sold the manufacturing machinery or equipment.

(D) The taxpayer shall claim the grant allowed by this section in the manner provided by section 122.172 of the Revised Code. Any portion of the grant in excess of the taxpayer's tax liability for the taxable year shall not be refundable but may be carried forward for the next three consecutive taxable years.

(E) A taxpayer purchasing new manufacturing machinery and equipment and intending to claim the grant shall file, with the director of development, a notice of intent to claim the grant on a form prescribed by the director of development. The director of development shall inform the tax commissioner of the notice of intent to claim the grant. No grant may be claimed under this section for any manufacturing machinery and equipment with respect to which a notice was not filed by the date of a timely filed return, including extensions, for the taxable year that includes September 30, 2005, but a notice filed on or before such date under division (E) of section 5733.33 of the Revised Code of the intent to claim the credit under that section or section 5747.31 of the Revised Code also shall be considered a notice of the intent to claim a grant under this section.

(F) The director of development shall annually certify, by the first day of January of each year during the qualifying period, the eligible areas for the tax grant for the calendar year that includes that first day of January. The director shall send a copy of the certification to the tax commissioner.

(G) New manufacturing machinery and equipment for which a taxpayer claims the credit under section 5733.31, 5733.311, 5747.26, or 5747.261 of the Revised Code shall not be considered new manufacturing machinery and equipment for purposes of the grant under this section.

(H)(1) Notwithstanding sections 5733.11 and 5747.13 of the Revised Code, but subject to division (H)(2) of this section, the tax commissioner may issue an assessment against a person with respect to a grant claimed under this section for new manufacturing machinery and equipment described in division (A)(1)(b) or (2)(b) of this section, if the machinery or equipment subsequently does not qualify for the grant.

(2) Division (H)(1) of this section shall not apply after the twenty-fourth month following the last day of the period described in divisions (A)(1)(b) and (2)(b) of this section.

(I) Notwithstanding any other provision of this section to the contrary, in the case of a qualifying controlled group, the grant available under this section to a taxpayer or taxpayers in the qualifying controlled group shall be computed as if all corporations in the group were a single corporation. The grant shall be allocated to such a taxpayer or taxpayers in the group in any amount elected for the taxable year by the group. The election shall be revocable and amendable during the period described in division (B) of section 5733.12 of the Revised Code.

This division applies to all purchases of new manufacturing machinery and equipment made on or after January 1, 2001, and to all baseline years used to compute any grant attributable to such purchases; provided, that this division may be applied solely at the election of the qualifying controlled group with respect to all purchases of new manufacturing machinery and equipment made before that date, and to all baseline years used to compute any grant attributable to such purchases. The qualifying controlled group at any time may elect to apply this division to purchases made prior to January 1, 2001, subject to the following:

(2) The election need not accompany a timely filed report, but the election may accompany a subsequently filed but timely application for refund, a subsequently filed but timely amended report, or a subsequently filed but timely petition for reassessment.

(J) Except as provided in division (B) of section 122.172 of the Revised Code, no grant under this section may be claimed for any taxable year for which a credit is allowed under section 5733.33 or 5747.31 of the Revised Code. If the tax imposed by section 5733.06 of the Revised Code for which a grant is allowed under this section has been prorated under division (G)(2) of section 5733.01 of the Revised Code, the grant shall be prorated by the same percentage as the tax.

(1) "Facility" means all real property and interests inreal property owned by a either of the following:

(a) A landlord and leased to a tenant pursuantto a project that is the subject of an agreement under thissection;

(b) The United States or any department, agency, or instrumentality of the United States.

(2) "Full-time employee" has the same meaning as undersection 122.17 of the Revised Code;.

(3) "Landlord" means a county or municipal corporation, ora corporate entity that is an instrumentality of a county ormunicipal corporation and that is not subject to the tax imposedby section 5733.06 or5747.02 of the Revised Code;.

(4) "New employee" means a full-time employee firstemployed by, or under or pursuant to a contract with, the tenant in the project that is the subject of theagreement after a landlord enters into an agreement with the taxcredit authority under this section;.

(5) "New income tax revenue" means the total amountwithheld under section 5747.06 of the Revised Code by the tenant or tenantsat a facility during a year from the compensation of newemployees for the tax levied under Chapter 5747. of the RevisedCode;.

(6) "Retained income tax revenue" means the total amount withheld under section 5747.06 of the Revised Code from employees retained at an existing facility recommended for closure to the base realignment and closure commission in the United States department of defense.

(7) "Tenant" means the United States, any department,agency, or instrumentality of the United States, or any person under contract with the United States or any department, agency, or instrumentality of the United States.

(B) The tax credit authority may enter into an agreementwith a landlord under which an annual payment equal to the newincome tax revenue or retained income tax revenue, as applicable, or the amount called for under division (D)(3)or (4) of this section shall be made to the landlord from moneysof this state that were not raised by taxation, and shall becredited by the landlord to the rental owing from the tenant tothe landlord for a facility.

(C) A landlord that proposes a project to create new jobsin this state or retain jobs in this state at an existing facility recommended for closure or realignment to the base realignment and closure commission in the United States department of defense may apply to the tax credit authority to enter intoan agreement for annual payments under this section. Thedirector of development shall prescribe the form of theapplication. After receipt of an application, the authority mayenter into an agreement with the landlord for annual paymentsunder this section if it determines all of the following:

(1) The project will create new jobs in this state; or retain jobs at a facility recommended for closure or realignment to the base realignment and closure commission in the United States department of defense.

(2) The project is economically sound and will benefit thepeople of this state by increasing opportunities for employmentand strengthening the economy of this state;.

(3) Receiving the annual payments will be a major factorin the decision of the landlord and tenant to go forward with theproject.

(D) An agreement with a landlord for annual payments shallinclude all of the following:

(3) Based on the estimated new income tax revenue or retained income tax revenue, as applicable, to bederived from the facility at the time the agreement is enteredinto, provision for a guaranteed payment to the landlordcommencing with the issuance by the landlord of any bonds orother forms of financing for the construction of the facility andcontinuing for the term approved by the authority;

(4) Provision for offsets to this state of the annualpayment in years in which such annual payment is greater than theguaranteed payment of amounts previously paid by thisstate to the landlord in excess of the new income tax revenue or retained income tax revenue, as applicable, byreason of the guaranteed payment;

(5) A specific method for determining how many newemployees are employed during a year;

(6) A requirement that the landlord annually shall obtainfrom the tenant and report to the director of development thenumber of new employees, and the new income tax revenue withheld inconnection with the new employees, or the number of retained employees and the retained income tax revenue withheld in connection with the retained employees, as applicable, and any other information thedirector needs to perform the director's duties under thissection;

(7) A requirement that the director of developmentannually shall verify the amounts reported under division (D)(6)of this section, and after doing so shall issue a certificate tothe landlord stating that the amounts have been verified.

(E) The director of development, in accordance withChapter 119. of the Revised Code, shall adopt rules necessary toimplement this section.

Sec. 122.40. (A) There is hereby created the developmentfinancing advisory council to assist in carrying out the programscreated pursuant to sections 122.39 to 122.62 and Chapter 166. ofthe Revised Code.

(B) The council shall consist of seven members appointedby the governor, with the advice and consent of the senate, who areselected for their knowledge of and experience in economicdevelopment financing, one member of the senate appointed by thepresident of the senate, one member of the house ofrepresentatives appointed by the speaker of the house ofrepresentatives, and the director of development or the director's designee. With respect to thecouncil:

(1) No more than four members of the council appointed bythe governor shall be members of the same political party.

(2) Each member shall hold office from the date of the member'sappointment until the end of the term for which the memberwas appointed.

(3) The terms of office for the seven members appointed bythe governor shall be for five years commencing on the first dayof January and ending on the thirty-first day of December. The seven members appointed by the governor who are serving terms of office of seven years on ~~the effective date of this amendment~~ December 30, 2004, shall continue to serve those terms, but their successors in office, including the filling of a vacancy occurring prior to the expiration of those terms, shall be appointed for terms of five years in accordance with this division.

(5) As a term of a member of the council appointed by thegovernor expires, the governor shall appoint a successor with theadvice and consent of the senate.

(6) Except as otherwise provided in division (B)(3) of this section, any member appointed to fill a vacancy occurring priorto the expiration of the term for which the member's predecessor wasappointed shall hold office for the remainder of thepredecessor's term.

(7) Any member shall continue in office subsequent to theexpiration date of the member's term until themember's successor takes office, oruntil a period of sixty days has elapsed, whichever occurs first.

(8) Before entering upon duties as a member of the council,each member shalltake an oath provided by Section 7 of Article XV, OhioConstitution.

(9) The governor may, at any time, remove any nonlegislative memberpursuant to section 3.04 of the Revised Code.

(10) Members of the council, notwithstanding section101.26of the Revised Code with respect to members who are members ofthe general assembly, shall receive their necessary and actualexpenses while engaged in the business of the council andshall bepaid at the per diem rate of step 1, pay range 31, of section124.15 of the Revised Code.

(11) ~~Four~~ Six members of the council constitute a quorum and the affirmative vote of six members is necessary for any action taken by the council.

(12) In the event of the absence of a member appointed bythe president of the senate or by the speaker of the house ofrepresentatives, the following persons may serve in the member'sabsence: the president of the senate or the speaker of thehouse, as the case may be, or a member of the senate or of thehouse of representatives, of the same political party as thedevelopment financing advisory council member, designatedby thepresident of the senate or the speaker of the house.

Sec. 122.603. (A)(1) Upon approval by the director ofdevelopment and after enteringinto a participation agreement withthe department of development, a participating financialinstitution making acapital accessloan shall establish a programreserve account.Theaccount shallbe an interest-bearing accountand shall containonly moneys deposited into itunder the programand the interestpayable on the moneys in the account.

(2) All interest payable on the moneys in the programreserve accountshall be added to the moneys and held as anadditionalloss reserve. The director may require that a portionor all ofthe accrued interest so held in the accountbe releasedto the department. If the director causes a release of accruedinterest, the director shall deposit the released amount into the capital access loan programfund created in section 122.601 of the Revised Code. The director shall notrequire the release of that accruedinterest more than twice inafiscal year.

(B) When a participating financial institution makes acapitalaccess loan, it shall requirethe eligible business to payto the participating financial institution afee in an amount thatis not less than one and one-half per cent,and not more thanthree per cent, of the principal amount of theloan. Theparticipating financial institutionshall deposit the fee into itsprogram reserve account,and it also shall deposit into theaccount an amount of its own funds equal to the amount of the fee.Theparticipatingfinancial institution may recover from theeligible business all or part ofthe amount that the participatingfinancial institution isrequired to deposit into the accountunder this division in any manner agreedto by theparticipatingfinancial institution and the eligible business.

(C) For each capital access loan made by a participatingfinancial institution,the participating financial institutionshall certify to the director, withina period specified by thedirector, that theparticipating financial institution has madethe loan. The certification shall include the amount of the loan,theamount of the fee received from the eligible business, theamount of its ownfunds that theparticipating financialinstitution deposited into its programreserve account to reflectthat fee, and any other information specified bythe director.

(D) On Upon receipt of each of the first three certifications from a participating financial institution made under division (C) of this section and subject to section 122.602 of the Revised Code, the director shall disburse to the participating financial institution from the capital access loan program fund an amount equal to fifty per cent of the principal amount of the particular capital access loan for deposit into the participating financial institution's program reserve account. Thereafter, upon receipt of a certification from that participating financial institution made under division(C) ofthis section andsubject to section 122.602 of the Revised Code,the director shalldisburse to the participating financialinstitution from the capital access loan program fund an amountequal to ten percent of theprincipal amount ofthe particular capital access loan for depositinto the participatingfinancialinstitution's program reserveaccount. The disbursement of moneys from the fund to aparticipating financial institution does not require approval fromthe controlling board.

(E) If the amount in a program reserve account exceeds anamountequal to thirty-three per cent of a participating financialinstitution'soutstanding capital access loans, thedepartment maycause the withdrawal of the excess amount and the deposit ofthewithdrawn amount into the capital access loan program fund.

(F)(1) The department may cause the withdrawal of the totalamountin a participating financial institution's program reserveaccount if any of the followingapplies:

(a) The financial institution is no longer eligible toparticipatein the program.

(b) The participation agreement expires without renewal bythedepartment or the financial institution.

(d) The financial institution has not made a capitalaccessloan within the preceding twenty-four months.

(2) If the department causes a withdrawal under division(F)(1) of this section, the department shall deposit the withdrawnamount into the capital access loan program fund.

(A)"Financial institution" means any banking corporation,trust company, insurance company, savings and loan association,building and loan association, or corporation, partnership,federal lending agency, foundation, or other institution engagedin lending or investing funds for industrial or businesspurposes.

(B)"Project" means any real or personal propertyconnectedwith or being a part of an industrial, distribution,commercial,or research facility to be acquired, constructed,reconstructed,enlarged, improved, furnished, or equipped, or anycombinationthereof, with the aid provided under sections 122.71to 122.83 ofthe Revised Code, for industrial,commercial,distribution, andresearch development of the state.

(C)"Mortgage" means the lien imposed on a project by amortgage on real property, or by financing statements on personalproperty, or a combination of a mortgage and financing statementswhen a project consists of both real and personal property.

(D)"Mortgagor" means the principal user of a project ortheperson, corporation, partnership, or associationunconditionallyguaranteeing performance by the principal user ofits obligationsunder the mortgage.

(E)(1)"Minority business enterprise" means an individualwhois a United States citizen and owns and controls a business,or apartnership, corporation, or joint venture of any kind that isowned and controlled by United States citizens, which citizenorcitizens areresidents ofthis state and aremembers of one ofthe followingeconomicallydisadvantaged groups:Blacks or African Americans, AmericanIndians, Hispanics or Latinos, and~~Orientals~~ Asians.

(2)"Owned and controlled" means that at least fifty-onepercent of the business, including corporate stock if acorporation,is owned by persons who belong to one or more of thegroups setforth in division (E)(1) of this section, and thatthose ownershave control over the management andday-to-dayoperations of thebusiness and an interest in the capital,assets, and profits andlosses of the business proportionate totheir percentage ofownership. In order to qualify as a minoritybusiness enterprise,a business shall have been owned andcontrolled by those personsat least one year prior tobeingawarded a contract pursuant tothis section.

(F)"Community improvement corporation" means acorporationorganized under Chapter 1724. of the Revised Code.

(G)"Ohio development corporation" means a corporationorganized under Chapter 1726. of the Revised Code.

(H)"Minority contractors business assistance organization"means an entity engaged in the provision of management andtechnical business assistance to minority business enterpriseentrepreneurs.

(I)"Minority business supplier development council" means anonprofit organization established as an affiliate of the nationalminority supplier development council.

(J) "Regional economic development entity" means an entity that is under contract with the director of development to administer a loan program under this chapter in a particular area of the state.

Sec. 122.72. (A) There is hereby created the minoritydevelopment financing advisory board to assist in carryingout the programs created pursuant to sections 122.71 to ~~122.89~~ 122.90 of the RevisedCode.

(B) The board shall consist of ~~seven~~ ten members. The director of development or the director's designee shall be a voting member on the board. Seven members shall be appointed bythe governor with the advice and consent of the senate andselected because of their knowledge of and experience inindustrial, business, and commercial financing, suretyship,construction, and their understanding of the problems of minoritybusiness enterprises; one member also shall be a member of the senate and appointed by thepresident of the senate, and one member also shall be a member of the house ofrepresentatives andappointed by the speaker of the house of representatives. With respect to theboard, all of the following apply:

(1) Not more than four of the members of the board appointed by thegovernor shall be of the same political party.

(2) Each member shall hold office from the date of the member's appointmentuntil the end of the term for which the member was appointed.

(3) The terms of office for the seven members appointedby the governor shall be for seven years, commencing on the firstday of October and ending on thethirtieth day of September of the seventh year, except that of the originalseven members, three shall beappointed for three years and two shall be appointed for fiveyears.

(5) Any member appointed to fill a vacancy occurring prior to theexpiration of the term for which ~~his~~ the member's predecessorwas appointed shall hold office for the remainder of ~~his~~ thepredecessor's term.

(6) Any member shall continue in office subsequent to the expirationdate of ~~his~~ the member's term until ~~his~~ the member'ssuccessor takes office, or until a period of sixty days has elapsed, whicheveroccurs first.

(7) Before entering upon ~~his~~ official duties as a member ofthe board, each member shall take an oathas provided by Section 7 of Article XV, Ohio Constitution.

(8) The governor may, at any time, remove any member appointed by~~him~~ the governor pursuant to section 3.04 of the Revised Code.

(9) Notwithstanding section 101.26 of the Revised Code, members shallreceive their necessary and actual expenses while engaged in the business ofthe board and shall be paid at the per diem rate of step 1 of pay range 31 ofsection 124.15 of the Revised Code.

(10) ~~Five~~ Six members of theboard constitute a quorum and the affirmativevote of ~~five~~ six members is necessary for any action taken by theboard.

(11) In the event of the absence of a member appointed by thepresident of the senate or by the speaker of the house ofrepresentatives, either of the following persons may serve in the member'sabsence:

(a) The president of the senate or the speaker of the house ofrepresentatives, whoever appointed the absent member;

(b) A member of the senate or of the house of representativesof the same political party as the absent member, as designated by thepresident of the senate or the speaker of the house of representatives,whoever appointed the absent member.

(12) The board shall annually elect one of its members as ~~chairman~~chairperson and another as ~~vice-chairman~~vice-chairperson.

Sec. 122.73. (A) The minority development financing advisory board and thedirector of development are invested withthe powers and duties provided in sections 122.71 to~~122.89~~ 122.90 ofthe Revised Code, in order to promote the welfare of the peopleof the state by encouraging the establishment and expansion ofminority business enterprises,; to stabilize theeconomy,; to provide employment,; to assist in the developmentwithin the state of industrial, commercial, distribution, andresearch activities required for the people of the state, and fortheir gainful employment,; or otherwise to create or preserve jobsand employment opportunities, or improve the economic welfare ofthe people of the state. It is hereby determined that theaccomplishment of those purposes is essential so that the peopleof the state may maintain their present high standards of livingin comparison with the people of other states and so thatopportunities for employment and for favorable markets for theproducts of the state's natural resources, agriculture, andmanufacturing shall be improved ~~and~~. It further is determined that it is necessary for thestate to establish the programs authorized under sections 122.71 to ~~122.89~~ 122.90of the Revised Code to establish the minority development financingadvisory board, and to invest it and the director of development with thepowers and duties provided in sections 122.71 to ~~122.89~~ 122.90 of theRevised Code.

(B) The minority development financing advisory board shalldo all of the following:

(1) Make recommendations to the director as to applications for assistancepursuant to sections 122.71 to ~~122.89~~ 122.90 of the Revised Code. The board mayrevise its recommendations to reflect any changes in the proposed assistancemade by the director.

(2) Advise the director in the administration of sections 122.71 to ~~122.89~~ 122.90 ofthe Revised Code.

Sec. 122.74. (A)(1) The director of development shall do all of the following:

~~(1)~~(a) Receive applications for assistance under sections 122.71 to ~~122.89~~ 122.90 ofthe Revised Code, and, after processing but subject to division (A)(2) of this section, forward them to theminority development financing advisory board together with necessarysupporting information;

~~(2)~~(b) Receive the recommendations of the board and make a final determinationwhether to approve the application for assistance;

~~(3)~~(c) Receive recommendations from a regional economic development entity for loans made under section 122.76 of the Revised Code and make a final determination, notwithstanding divisions (A)(1) and (2) of this section, whether to approve the proposed loan;

(d) Transmit the director's determinations to approve assistance to thecontrolling board together with any information the controlling board requiresfor its review and decision as to whether to approve the assistance.

(2) The director is not required to submit any determination, data, terms, or any other application materials or information to the minority development financing advisory board when provision of the assistance has been recommended to the director by a regional economic development entity.

(1) Fix the rate of interest and charges to be made upon or with respectto moneys loaned or guaranteed by the director and the terms upon whichmortgages and lease rentals may be guaranteed and the rates of charges to bemade for them and make provisions for the operation of the fundsestablished by the director in accordance with this section and sections122.80 ~~and~~, 122.88, and 122.90 of the Revised Code;

(2) Loan and guarantee moneys from the fund established inaccordance withsection 122.80 of the Revised Code pursuant to and in compliance with sections122.71 to~~122.89~~ 122.90 of the Revised Code.

(3) Acquire in the name of the director any property ofany kind orcharacter in accordance with sections 122.71 to ~~122.89~~ 122.90 of the Revised Code, bypurchase,purchase at foreclosure, or exchange on such terms and in such manner as thedirector considers proper;

(4) Make and enter into all contracts and agreementsnecessary orincidental to the performance of the director's duties and the exercise of thedirector's powers under sections 122.71 to ~~122.89~~ 122.90 of the Revised Code;

(5) Maintain, protect, repair, improve, and insure anyproperty that thedirector has acquired and dispose of it by sale, exchange, or lease for theconsideration and on the terms and in the manner as the director considersproper, but the director shall not operate any such property as a businessexcept as the lessor of it;

(6)(a) When the cost of any contract for the maintenance,protection, repair, or improvement of any property held by the director, otherthan compensation for personal services, involves an expenditure of more thanfifty thousand dollars, the director shall make a written contract with thelowest responsive and responsible bidder in accordance with section 9.312 ofthe Revised Code after advertisement for not less than two consecutive weeksin a newspaper ofgeneral circulation in the county where such contract, or some substantialpart of it, is to be performed, and in such other publications as the directordetermines, which notice shall state the general character of the work and thegeneral character of the materials to be furnished, the place where plans andspecifications therefor may be examined, and the time and place of receivingbids.

(b) Each bid for a contract for the construction, demolition,alteration, repair, or reconstruction of an improvement shall contain the fullname of every person interested in it and meet the requirements of section153.54 of the Revised Code.

(c) Each bid for a contract, except as provided in division(B)(6)(b) of this section, shall contain the fullname ofevery person interested in it and shall be accompanied by bond or certifiedcheck on a solvent bank, in such amount as the director considers sufficient,that if the bid is accepted a contract will be entered into and theperformance of the proposal secured.

(e) A bond with good and sufficient surety, approved by thedirector, shall be required of every contractor awarded a contract except asprovided in division (B)(6)(b) of this section, inan amount equal to at least fifty per cent of the contract price, conditionedupon faithful performance of the contract.

(7) Employ or contract with financial consultants,appraisers, consultingengineers, superintendents, managers, construction and accounting experts,attorneys, and other employees and agents as are necessary in the director'sjudgment and fix their compensation;

(8) Receive and accept grants, gifts, and contributions of money,property, labor, and other things of value to be held, used, and applied onlyfor the purpose for which ~~such~~ the grants, gifts, and contributions are made, fromindividuals, private and public corporations, from the UnitedStates or any agency thereof, from the state or any agency thereof,and from any political subdivision of the state, and may agree to repay anycontribution of money or to return any property contributed or the valuethereof at such times, in ~~such~~ amounts, and on ~~such~~ terms and conditions,excluding the payment of interest, as the director determines at the time ~~such~~ thecontribution is made, and may evidence ~~such~~ the obligations by notes, bonds, orother written instruments;

(9) Establish with the treasurer of state the fundsprovided in sections122.80 and 122.88 of the Revised Code in addition to such funds as thedirector determinesare necessary or proper;

(10) Adopt rules under Chapter 119. of the Revised Codenecessary to implementsections 122.71 to ~~122.83~~ 122.90 of the Revised Code.

(11) Do all acts and things necessary or proper to carry out thepowersexpressly granted and the duties imposed in sections 122.71 to ~~122.89~~ 122.90 of theRevised Code.

(C)(1) All expenses and obligations incurred by the director incarrying out the director's powers and in exercising thedirector's duties under sections122.71 to ~~122.89~~ 122.90 of the Revised Code shall be payable solely from revenues orother receiptsor income of the director, from grants, gifts, and contributions, or fundsestablished in accordance with such sections. Such sections do not authorizethe director to incur indebtedness or to impose liability on the state or anypolitical subdivision of the state.

(2) Financial statements and other data submitted to the director by anycorporation, partnership, or person in connection with financial assistanceprovided under sections 122.71 to ~~122.89~~ 122.90 of the Revised Code, or anyinformation taken from such statements or data for any purpose, shall not beopen to public inspection.

Sec. 122.75. The director of development shall, for theminority business development loan program ~~and~~, the minoritybusiness bonding program, and the minority business bond guarantee program under sections 122.87 to ~~122.89~~ 122.90 ofthe Revised Code, do all of the following:

(B) Adopt bylaws and rules for the regulation of thebusiness of the minority development financing advisory board;

(C) Receive and accept grants, gifts, and contributions ofmoney, property, labor, and other things of value, to be held,used, and applied only for the purpose for which the grants,gifts, and contributions are made, from individuals, private andpublic corporations, the United States or any agency of theUnited States, the state or any agency of the state, andany political subdivision of the state. The director may agree to repay anycontribution of moneyor to return any property contributed or its value at such times,in ~~such~~ amounts, and on ~~such~~ terms and conditions, excluding thepayment of interest, as the director determines at the time thecontribution is made. The director may evidence the obligationsby written contracts, subject to section 122.76 of the RevisedCode; provided, that the director shall not thereby incurindebtedness of or impose liability upon the state or anypolitical subdivision.

(D) Establish funds with the treasurer of state inaddition to the minority business bonding fund created undersection 122.88 of the Revised Code;

(E) Invest money in the funds the director establishes pursuantto division (D) of this section that is in excess of current needs,in notes, bonds, or other obligations that are direct obligationsof or are guaranteed by the United States, or in certificates ofdeposit or withdrawable accounts of banks, trust companies, ~~and~~ orsavings and loan associations organized under the laws of this state or theUnited States, and may creditthe income or sell the investments at the director'sdiscretion;

(F) Acquire any property of any kind or character inaccordance with sections 122.71 to 122.83 of the RevisedCode, by purchase, purchase at foreclosure, or exchange on terms and in amanner the director considers proper;

(G)(1) Maintain, protect, repair, improve, and insure anyproperty the director has acquired and dispose of it by sale,exchange, orlease for the consideration and on terms and in a manner thedirector considers proper. The director may not operate any property as abusiness except as a lessor of the property. When the cost of anycontract for the maintenance, protection, repair, or improvementof any property of the advisory board connected with the minoritybusiness development loan program, other than compensation forpersonal services, involves an expenditure of more than onethousand dollars, the director shall enter into a writtencontract with the lowest and best bidder after advertisement fornot less than four consecutive weeks in a newspaper of generalcirculation in the county where the contract, or somesubstantial part of it, is to be performed, and in otherpublications as the director determines. The notice shall statethe general character of the work and the general character ofthe materials to be furnished, the place where plans andspecifications for the work and materials may be examined, and the time andplace of receiving bids.

(2) Each bid for a contract for the construction,demolition, alteration, repair, or reconstruction of animprovement shall contain the full name of every personinterested in it and meet the requirements of section 153.54 ofthe Revised Code.

(3) Each bid for a contract, except as provided in division(G)(2) of this section, shall contain the full name of everyperson interested in it and shall be accompanied by a bond orcertified check on a solvent bank, in the amount of ten per centof the bid, that if the bid is accepted a contract will beentered into and the performance of its proposal secured. Thedirector may reject any or all bids. A bond with good andsufficient surety, approved by the director, shall be required ofall contractors in an amount equal to at least one hundred percent of the contract price, conditioned upon faithful performanceof the contract.

(H) Expend money appropriated to the department ofdevelopment by the general assembly for the purposes of sections122.71 to 122.83 and 122.87 to ~~122.89~~ 122.90 of the Revised Code;

(I) Do all acts and things necessary or proper to carryout the powers expressly granted and the duties imposed insections 122.71 to 122.83 and 122.87 to ~~122.89~~ 122.90 of the RevisedCode.

Sec. 122.751. The minority development financingadvisory board or a regional economic development entity shall onlyconsider an application for a loan from any applicant after a certification bythe equal employment opportunity coordinator of the department ofadministrative services under division (B)(1) of section 123.151 of theRevised Code that the applicant is a minority business enterprise, or after a certification by the minority business supplier development council that the applicant is a minority business, and that theapplicant satisfies all criteria regarding eligibility for assistance pursuantto section 122.76 of the Revised Code.

Sec. 122.76. (A) The director of development, withcontrolling boardapproval, may lend funds to minority businessenterprises and to communityimprovement corporations, Ohiodevelopment corporations, minority contractors business assistanceorganizations, and minority business supplier developmentcouncils for the purpose ofloaning funds to minority businessenterprises and for thepurpose of procuring or improving real orpersonal property, orboth, for the establishment, location, orexpansion ofindustrial, distribution, commercial, or researchfacilities inthe state, if the director determines, in thedirector'ssole discretion, that all of the following apply:

(1) The project is economically sound and will benefit thepeople of the state by increasing opportunities for employment,bystrengthening the economy of the state, or expanding minoritybusiness enterprises.

(2) The proposed minority business enterprise borrower isunable to finance the proposed project through ordinary financialchannels at comparable terms.

(3) The value of the project is or, upon completion, willbe at least equal to the total amount of the moneyexpended in theprocurement or improvement of the project, and one or morefinancial institutions or othergovernmental entities have loanednot less than thirty per centof that amount.

(4) The amount to be loaned by the director will notexceedsixty per cent of the total amount expended in theprocurement orimprovement of the project.

(5) The amount to be loaned by the director will beadequately secured by a first or second mortgage upon theprojector by mortgages, leases, liens, assignments, or pledgeson or ofother property or contracts as the director requires,andsuchmortgage will not be subordinate to any other liens ormortgagesexcept the liens securing loans or investments made byfinancialinstitutionsreferred toin division (A)(3) of thissection, andthe liens securing loans previouslymade by anyfinancialinstitution in connection with the procurement orexpansion of allor part of a project.

(B) Any proposed minority business enterpriseborrowersubmitting an application for assistance under this section shallnothave defaulted on a previous loan from the director, and nofull or limitedpartner, major shareholder, or holder of anequity interest ofthe proposed minority business enterpriseborrower shall have defaultedon a loan from the director.

(C) The proposed minority business enterprise borrowershalldemonstrate to the satisfaction of the director that it isable tosuccessfully compete in the private sector if it obtainsthenecessary financial, technical, or managerial support andthatsupport is available through the director, the minoritybusinessdevelopment office of the department of development, orotheridentified and acceptable sources. In determining whetheraminority business enterprise borrower will be able tosuccessfullycompete, the director may giveconsideration to such factors asthe successful completion of orparticipation in courses of study,recognized by the board ofregents as providing financial,technical, or managerial skillsrelated to the operation of thebusiness, by the economicallydisadvantaged individual, owner, orpartner, and the priorsuccess of the individual, owner, orpartner in personal, career,or business activities, as well as toother factors identified bythe director.

(D) The director shall not lend funds for the purpose ofprocuring or improving motor vehicles~~, power-driven vehicles,officeequipment, raw materials, smalltools, supplies,inventories,~~ or accounts receivable.

Sec. 122.77. (A) The director of development with controlling board approvalmay make loan guarantees to small businesses and corporations for the purposeof guaranteeing loans made to small businesses by financial institutions forthe purpose of procuring or improving real or personal property, or both, forthe establishment, location, or expansion of industrial, distribution,commercial, or research facilities in the state, if the director determines,in ~~his~~ the director's sole discretion, that all of the followingapply:

(1) The project is economically sound and will benefit the people of thestate by increasing opportunities for employment, by strengthening the economyof the state, or expanding minority business enterprises;.

(2) The proposed small business borrower is unable to finance the proposedproject through ordinary financial channels at comparable terms;.

(3) The value of the project is, or upon completion of it will be, atleast equal to the total amount of the money expended in the procurement orimprovement of the project and of which amount one or more financialinstitutions or other governmental entities have loaned not less than thirtyper cent;.

(4) The amount to be guaranteed by the director will not exceed ~~fifty~~ eighty percent of the total amount expended in the procurement or improvement of theproject;.

(5) The amount to be guaranteed by the director will be adequately securedby a first or second mortgage upon the project, or by mortgages, leases,liens, assignments, or pledges on or of other property or contracts as thedirector shall require and that such mortgage will not be subordinate to anyother liens or mortgages except the liens securing loans or investments madeby financial institutions referred to in division (A)(3) of thissection, and the liens securing loans previously made by any financialinstitution in connection with the procurement or expansion of all or part ofa project.

(B) The proposed small business borrower shall not have defaultedon a previous loan or guarantee from the director, and no full or limitedpartner, or major shareholder, or holder of any equity interest of theproposed minority business enterprise borrower shall have defaulted on a loanor guarantee from the director.

(C) The proposed small business borrower shall demonstrate to thesatisfaction of the director that it is able to successfully compete in theprivate sector if it obtains the necessary financial, technical, or managerialsupport and that support is available through the director, the minoritybusiness development office of the department of development, or otheridentified and acceptable sources. In determining whether a small businessborrower will be able to successfully compete, the director may giveconsideration to such factors as the successful completion of or participationin courses of study, recognized by the board of regents as providingfinancial, technical, or managerial skills related to the operation of thebusiness, by the economically disadvantaged individual, owner, or partner, andthe prior success of the individual, owner, or partner in personal, career, orbusiness activities, as well as to other factors identified by the director.

(D) The director shall not guarantee funds for the purpose ofprocuring or improving motor vehicles~~, power driven vehicles, officeequipment, raw materials, small tools, supplies, inventories,~~ or accountsreceivable.

Sec. 122.78. Fees, charges, rates ofinterest, timesof payment of interest and principal, and other terms,conditions, and provisions of the loans and guarantees made by the director ofdevelopment pursuant to sections 122.71 to ~~122.89~~ 122.90 of the Revised Code shall besuch as the director determines to be appropriate and infurtherance of thepurpose for which the loans and guarantees are made, but the mortgage liensecuringany money loaned or guaranteed by the director may be subordinate tothe mortgagelien securing any money loaned or invested by a financial institution, butshall be superior to that securing any money loaned or expendedby any other corporation or person. The funds used in makingthese loans or guarantees shall be disbursed upon order of the director.

Sec. 122.79. The exercise of the powers granted bysections 122.71 to ~~122.89~~ 122.90of the Revised Code, will be in all respects for the benefit of the people ofthe state, for the increase of their commerce and prosperity, for the increaseand expansion of minority business enterprises, and for the improvement ofconditions of employment, and will constitute the performance of essentialgovernmental functions; therefore, the director of development shall not berequired to pay any taxes upon any property or assets held by ~~him~~the director, or upon any property acquired or used by ~~him~~the director under sections 122.71 to ~~122.89~~ 122.90 of the Revised Code, orupon the income from it, provided that this exemption shall not apply to anyproperty held by the director while it is in the possession of a privateperson, partnership, or corporation and used for privatepurposes for profit, in which case such tax liability shall accrueto ~~such~~ the private person, partnership, or corporation.

Sec. 122.82. All moneys, funds, properties, and assets acquired by thedirector of development shall be held by ~~him~~ the director intrust to carry out ~~his~~ the director's powersand duties, shall be used as provided in sections 122.71to ~~122.89~~ 122.90 oftheRevised Code, and shall at no time be part of other public funds.

Sec. 122.83. Any person who intentionally misrepresents that person's self asowning, controlling, operating, or participating in a minority businessenterprise for the purpose of obtaining funds, contracts, subcontracts,services, or any other benefits under sections 122.71 to 122.85 or 122.87 to~~122.89~~ 122.90 of the Revised Code is guilty of theft by deception, pursuant tosection 2913.02 of the Revised Code.

(A) "Commercial or industrial areas" means areas ~~established by a state, county, municipal, or other~~ zoned either commercial or industrial by the local zoning authority ~~as being most appropriate for business, commerce, industry, or trade~~ or an area not zoned ~~by state or local law, regulation, or ordinance~~, but in which there is located one or more commercial or industrial activities.

(1) A county designated as being in the "Appalachian region" under the "Appalachian Regional Development Act of 1965," 79 Stat. 5, 40 U.S.C. App. 403;

(2) A county that is a "distressed area" as defined in section 122.16 of the Revised Code;

(3) A county that within the previous calendar year has had a population of less than one hundred thousand according to the most recent federal decennial census and in which three hundred fifty or more residents of the county were, during the most recently completed calendar year, permanently or temporarily terminated from a private sector employment position for any reason not reflecting discredit on the employee;

(4) A county that has a population of one hundred thousand or more according to the most recent federal decennial census and in which one thousand or more residents of the county were, during the most recently completed calendar year, permanently or temporarily terminated from a private sector employment position for any reason not reflecting discredit on the employee job loss numbering two hundred or more of which one hundred or more are manufacturing-related as reported in the notices prepared by the department of job and family services pursuant to the "Worker Adjustment and Retraining Notification Act," 102 Stat. 890 (1988), 29 U.S.C. 2101 et seq., as amended.

Sec. 122.951. (A) If the director of development determines that a grant from the industrial site improvement fund ~~will~~ may create new jobs or preserve existing jobs and employment opportunities in an eligible county, the director may grant up to ~~one million~~ five hundred thousand dollars from the fund to the eligible county for the purpose of acquiring commercial or industrial land or buildings and making improvements to commercial or industrial areas within the eligible county, including, but not limited to:

(1) Expanding, remodeling, renovating, and modernizing buildings, structures, and other improvements;

(2) Remediating environmentally contaminated property on which hazardous substances exist under conditions that have caused or would cause the property to be identified as contaminated by the Ohio or United States environmental protection agency; and

(3) Infrastructure improvements, including, but not limited to, site preparation, including building demolition and removal; streets, roads, bridges, and traffic control devices; parking lots and facilities; water and sewer lines and treatment plants; gas, electric, and telecommunications, including broadband, hook-ups; and water and railway access improvements.

A grant awarded under this section shall provide not more than seventy-five per cent of the estimated total cost of the project for which an application is submitted under this section. In addition, not more than ten per cent of the amount of the grant shall be used to pay the costs of professional services related to the project.

(B) An eligible county may apply to the director for a grant under this section in the form and manner prescribed by the director. The eligible county shall include on the application all information required by the director. The application shall require the eligible county to provide a detailed description of how the eligible county would use a grant to improve commercial or industrial areas within the eligible county, and to specify how a grant will lead to the creation of new jobs or the preservation of existing jobs and employment opportunities in the eligible county. The eligible county shall specify in the application the amount of the grant for which the eligible county is applying.

(C) An eligible county that receives a grant under this section is not eligible for any additional grants from the industrial site improvement fund in the fiscal year in which the grant is received and in the subsequent fiscal year.

(D) An eligible county may designate a port authority, community improvement corporation as defined in section 122.71 of the Revised Code, or other economic development entity that is located in the county to apply for a grant under this section. If a port authority, community improvement corporation, or other economic development entity is so designated, references to an eligible county in this section include references to the authority, corporation, or other entity.

Sec. 123.01. (A) The department of administrativeservices, in addition to those powers enumerated in Chapters 124.and 125. of the Revised Code and provided elsewhere by law,shall exercise the following powers:

(1) To prepare, or contract to be prepared, by licensedengineers or architects, surveys, general and detailed plans,specifications, bills of materials, and estimates of cost for anyprojects, improvements, or public buildings to be constructed bystate agencies that may be authorized by legislativeappropriations or any other funds made available therefor,provided that the construction of the projects, improvements, orpublic buildings is a statutory duty of the department. Thissection does not require the independent employment of anarchitect or engineer as provided by section 153.01 of theRevised Code in the cases to which that section applies noraffect or alter the existing powers of the director oftransportation.

(2) To have general supervision over the construction ofany projects, improvements, or public buildings constructed for astate agency and over the inspection of materials previous totheir incorporation into those projects, improvements, orbuildings;

(3) To make contracts for and supervise the constructionof any projects and improvements or the construction and repairof buildings under the control of a state agency, exceptcontracts for the repair of buildings under the management andcontrol of the departments of public safety, job andfamily services,mental health, mental retardation and developmental disabilities,rehabilitation and correction, and youth services, the bureau ofworkers' compensation, therehabilitationservices commission, and boards of trustees of educational andbenevolent institutions and except contracts for the construction of projects that do not require the issuance of a building permit or the issuance of a certificate of occupancy and that are necessary to remediate conditions at a hazardous waste facility, solid waste facility, or other location at which the director of environmental protection has reason to believe there is a substantial threat to public health or safety or the environment. These contracts shall be made andentered into by the directors of public safety, job andfamily services,mental health, mental retardation and developmental disabilities,rehabilitation and correction, and youth services, theadministrator of workers' compensation, the rehabilitation services commission,~~and~~ theboards oftrustees of such institutions, and the director of environmental protection, respectively. All such contractsmay be in whole or in part on unit price basis of maximumestimated cost, with payment computed and made upon actualquantities or units.

(4) To prepare and suggest comprehensive plans for thedevelopment of grounds and buildings under the control of a stateagency;

(5) To acquire, by purchase, gift, devise, lease, orgrant, all real estate required by a state agency, in theexercise of which power the department may exercise the power ofeminent domain, in the manner provided by sections 163.01 to163.22 of the Revised Code;

(6) To make and provide all plans, specifications, andmodels for the construction and perfection of all systems ofsewerage, drainage, and plumbing for the state in connection withbuildings and grounds under the control of a state agency;

(7) To erect, supervise, and maintain all public monumentsand memorials erected by the state, except where the supervisionand maintenance is otherwise provided by law;

(9) To lease or grant easements or licenses forunproductive and unused lands or other property under the controlof a state agency. Such leases, easements, or licenses shall begranted for a period not to exceed fifteen years and shall beexecuted for the state by the director of administrative servicesand the governor and shall be approved as to form by the attorneygeneral, provided that leases, easements, or licenses may begranted to any county, township, municipal corporation, portauthority, water or sewer district, school district, librarydistrict, health district, park district, soil and waterconservation district, conservancy district, or other politicalsubdivision or taxing district, or any agency of the UnitedStates government, for the exclusive use of that agency,political subdivision, or taxing district, without any right ofsublease or assignment, for a period not to exceed fifteen years,and provided that the director shall grant leases, easements, orlicenses of university land for periods not to exceed twenty-fiveyears for purposes approved by the respective university's boardof trustees wherein the uses are compatible with the uses andneeds of the university and may grant leases of university landfor periods not to exceed forty years for purposes approved bythe respective university's board of trustees pursuant to section123.77 of the Revised Code.

(11) To have general supervision and care of thestorerooms, offices, and buildings leased for the use of a stateagency;

(13) To assign and group together state offices in anycity in the state and to establish, in cooperation with the stateagencies involved, rules governing space requirements for officeor storage use;

(14) To lease for a period not to exceed forty years,pursuant to a contract providing for the construction thereofunder a lease-purchase plan, buildings, structures, and otherimprovements for any public purpose, and, in conjunctiontherewith, to grant leases, easements, or licenses for landsunder the control of a state agency for a period not to exceedforty years. The lease-purchase plan shall provide that at theend of the lease period, the buildings, structures, and relatedimprovements, together with the land on which they are situated,shall become the property of the state without cost.

(a) Whenever any building, structure, or other improvementis to be so leased by a state agency, the department shall retaineither basic plans, specifications, bills of materials, andestimates of cost with sufficient detail to afford bidders allneeded information or, alternatively, all of the following plans,details, bills of materials, and specifications:

(i) Full and accurate plans suitable for the use ofmechanics and other builders in the improvement;

(ii) Details to scale and full sized, so drawn andrepresented as to be easily understood;

(iii) Accurate bills showing the exact quantity ofdifferent kinds of material necessary to the construction;

(iv) Definite and complete specifications of the work tobe performed, together with such directions as will enable acompetent mechanic or other builder to carry them out and affordbidders all needed information;

(v) A full and accurate estimate of each item of expenseand of the aggregate cost thereof.

(b) The department shall give public notice, in suchnewspaper, in such form, and with such phraseology as thedirector of administrative services prescribes, published onceeach week for four consecutive weeks, of the time when and placewhere bids will be received for entering into an agreement tolease to a state agency a building, structure, or otherimprovement. The last publication shall be at least eight dayspreceding the day for opening the bids. The bids shall containthe terms upon which the builder would propose to lease thebuilding, structure, or other improvement to the state agency.The form of the bid approved by the department shall be used, anda bid is invalid and shall not be considered unless that form isused without change, alteration, or addition. Before submittingbids pursuant to this section, any builder shall comply withChapter 153. of the Revised Code.

(c) On the day and at the place named for receiving bidsfor entering into lease agreements with a state agency, thedirector of administrative services shall open the bids and shallpublicly proceed immediately to tabulate the bids upon duplicatesheets. No lease agreement shall be entered into until thebureau of workers' compensation has certified that the person tobe awarded the lease agreement has complied with Chapter 4123. ofthe Revised Code, until, if the builder submitting the lowest andbest bid is a foreign corporation, the secretary of state hascertified that the corporation is authorized to do business inthis state, until, if the builder submitting the lowest and bestbid is a person nonresident of this state, the person has filedwith the secretary of state a power of attorney designating thesecretary of state as its agent for the purpose of acceptingservice of summons in any action brought under Chapter 4123. ofthe Revised Code, and until the agreement is submitted to theattorney general and the attorney general's approval is certifiedthereon. Withinthirty days after the day on which the bids are received, thedepartment shall investigate the bids received and shalldetermine that the bureau and the secretary of state have madethe certifications required by this section of the builder whohas submitted the lowest and best bid. Within ten days of thecompletion of the investigation of the bids, the department shallaward the lease agreement to the builder who has submitted thelowest and best bid and who has been certified by the bureau andsecretary of state as required by this section. If bidding forthe lease agreement has been conducted upon the basis of basicplans, specifications, bills of materials, and estimates ofcosts, upon the award to the builder the department, or thebuilder with the approval of the department, shall appoint anarchitect or engineer licensed in this state to prepare suchfurther detailed plans, specifications, and bills of materials asare required to construct the building, structure, orimprovement. The department shall adopt such rules as arenecessary to give effect to this section. The department mayreject any bid. Where there is reason to believe there iscollusion or combination among bidders, the bids of thoseconcerned therein shall be rejected.

(15) To acquire by purchase, gift, devise, or grant and totransfer, lease, or otherwise dispose of all real propertyrequired to assist in the development of a conversion facility asdefined in section 5709.30 of the Revised Code as that section existed before its repeal by Amended Substitute House Bill 95 of the 125th general assembly;

(16) To lease for a period not to exceed forty years,notwithstanding any other division of this section, thestate-owned property located at 408-450 East Town Street,Columbus, Ohio, formerly the state school for the deaf, to adeveloper in accordance with this section. "Developer," as usedin this section, has the same meaning as in section 123.77 of theRevised Code.

Such a lease shall be for the purpose of development of theland for use by senior citizens by constructing, altering,renovating, repairing, expanding, and improving the site as itexisted on June 25, 1982. A developer desiring to lease the landshall prepare for submission to the department a plan fordevelopment. Plans shall include provisions for roads, sewers,water lines, waste disposal, water supply, and similar matters tomeet the requirements of state and local laws. The plans shallalso include provision for protection of the property byinsurance or otherwise, and plans for financing the development,and shall set forth details of the developer's financialresponsibility.

The department may employ, as employees or consultants,persons needed to assist in reviewing the development plans.Those persons may include attorneys, financial experts,engineers, and other necessary experts. The department shallreview the development plans and may enter into a lease if itfinds all of the following:

(a) The best interests of the state will be promoted byentering into a lease with the developer;

(c) The developer has established the developer's financialresponsibility and satisfactory plans for financing thedevelopment.

The lease shall contain a provision that construction orrenovation of the buildings, roads, structures, and othernecessary facilities shall begin within one year after the dateof the lease and shall proceed according to a schedule agreed tobetween the department and the developer or the lease will beterminated. The lease shall contain such conditions andstipulations as the director considers necessary to preserve thebest interest of the state. Moneys received by the statepursuant to this lease shall be paid into the general revenuefund. The lease shall provide that at the end of the leaseperiod the buildings, structures, and related improvements shallbecome the property of the state without cost.

(17) To lease to any person any tract of land owned by thestate and under the control of the department, or any part ofsuch a tract, for the purpose of drilling for or the pooling ofoil or gas. Such a lease shall be granted for a period notexceeding forty years, with the full power to contract for,determine the conditions governing, and specify the amount thestate shall receive for the purposes specified in the lease, andshall be prepared as in other cases.

(18) To manage the use of space owned and controlled by the department, including space in property under the jurisdiction of the Ohio building authority, by doing all of the following:

(a) Biennially implementing, by state agency location, a census of agency employees assigned space;

(i) Requiring each state agency to categorize the use of space allotted to the agency between office space, common areas, storage space, and other uses, and to report its findings to the department;

(ii) Creating and updating a master space utilization plan for all space allotted to state agencies. The plan shall incorporate space utilization metrics.

(iii) Conducting a cost-benefit analysis to determine the effectiveness of state-owned buildings;

(iv) Assessing the alternatives associated with consolidating the commercial leases for buildings located in Columbus.

(c) Commissioning a comprehensive space utilization and capacity study in order to determine the feasibility of consolidating existing commercially leased space used by state agencies into a new state-owned facility.

(B) This section and section 125.02 of the Revised Codeshall not interfere with any of the following:

(1) The power of the adjutant general to purchase militarysupplies, or with the custody of the adjutant general of propertyleased, purchased, or constructed by the state and used formilitary purposes, or with the functions of the adjutant generalas director of state armories;

(2) The power of the director of transportation inacquiring rights-of-way for the state highway system, or theleasing of lands for division or resident district offices, orthe leasing of lands or buildings required in the maintenanceoperations of the department of transportation, or the purchase ofreal propertyfor garage sites or division or resident district offices, or inpreparing plans and specifications for and constructing suchbuildings as the director may require in the administration ofthe department;

(3) The power of the director of public safety and theregistrar of motor vehicles to purchase or lease real propertyand buildings to be used solely as locations to which a deputyregistrar is assigned pursuant to division (B) of section4507.011 of the Revised Code and from which the deputy registrar isto conduct the deputy registrar's business, the power of the director ofpublic safety to purchase or lease real property and buildings to be used aslocations for division or district offices as required in the maintenance ofoperations of the department of public safety, and the power of thesuperintendent of the statehighway patrol in the purchase or leasing of real property andbuildings needed by the patrol, to negotiate the sale of real property ownedby the patrol, to rent or lease real property owned or leased by the patrol,and to make or cause to be made repairs to all property owned or under thecontrol of the patrol;

(4) The power of the division of liquor control in theleasing or purchasing of retail outlets and warehouse facilitiesfor the use of the division;

(5) The power of the director of development to enter into leasesof real property, buildings, and office space to be used solely as locationsfor the state's foreign offices to carry out the purposes of section 122.05of the Revised Code;

(6) The power of the director of environmental protection to enter into environmental covenants, to grant and accept easements, or to sell property pursuant to division (G) of section 3745.01 of the Revised Code.

(C) Purchases for, and the custody and repair of,buildings under the management and control of the capitol squarereview and advisory board, the rehabilitation services commission, the bureau ofworkers' compensation, or thedepartments of public safety,job and family services, mental health, mental retardationanddevelopmental disabilities, and rehabilitation and correction,and buildings of educational and benevolent institutions underthe management and control of boards of trustees, are not subjectto the control and jurisdiction of the department ofadministrative services.

(D) Any instrument by which real property is acquired pursuant tothis sectionshall identify the agency of the state that has the use and benefit of thereal property as specified in section 5301.012 of the Revised Code.

Sec. 123.152. (A) As used in this section, "EDGE business enterprise" means a sole proprietorship, association, partnership, corporation, limited liability corporation, or joint venture certified as a participant in the encouraging diversity, growth, and equity program by the director of administrative services under this section of the Revised Code.

(B) The director of administrative services shall establish a business assistance program known as the encouraging diversity, growth, and equity program and shall adopt rules in accordance with Chapter 119. of the Revised Code to administer the program ~~and~~ that do all of the following:

(1) Establish procedures by which a sole proprietorship, association, partnership, corporation, limited liability corporation, or joint venture may apply for certification as an EDGE business enterprise;

(2) ~~Establish~~ Except as provided in division (B)(14) of this section, establish agency procurement goals for contracting with EDGE business enterprises in the award of contracts under Chapters 123., 125., and 153. of the Revised Code based on the availability of eligible program participants by region or geographic area, as determined by the director, and by standard industrial code or equivalent code classification.

(a) Goals established under division (B)(2) of this section shall be based on a percentage level of participation and a percentage of contractor availability.

(b) Goals established under division (B)(2) of this section shall be applied at the contract level, relative to an overall dollar goal for each state agency, in accordance with the following certification categories: construction, architecture, and engineering; professional services; goods and services; and information technology services.

(3) Establish a system of certifying EDGE business enterprises based on a requirement that the business owner or owners show both social and economic disadvantage based on the following, as determined to be sufficient by the director:

(a) Relative wealth of the business seeking certification as well as the personal wealth of the owner or owners of the business;

(i) A rebuttable presumption when the business owner or owners demonstrate membership in a racial minority group or show personal disadvantage due to color, ethnic origin, gender, physical disability, long-term residence in an environment isolated from the mainstream of American society, location in an area of high unemployment;

(ii) Some other demonstration of personal disadvantage not common to other small businesses;

(c) Economic disadvantage based on economic and business size thresholds and eligibility criteria designed to stimulate economic development through contract awards to businesses located in qualified census tracts.

(4) Establish standards to determine when an EDGE business enterprise no longer qualifies for EDGE business enterprise certification;

(5) Develop a process for evaluating and adjusting goals established by this section to determine what adjustments are necessary to achieve participation goals established by the director;

(6) Establish a point system or comparable system to evaluate bid proposals to encourage EDGE business enterprises to participate in the procurement of professional design and information technology services;

(7) Establish a system to track data and analyze each certification category established under division (B)(2)(b) of this section;

(8) Establish a process to mediate complaints and to review EDGE business enterprise certification appeals;

(9) Implement an outreach program to educate potential participants about the encouraging diversity, growth, and equity program;

(10) Establish a system to assist state agencies in identifying and utilizing EDGE business enterprises in their contracting processes;

(11) Implement a system of self-reporting by EDGE business enterprises as well as an on-site inspection process to validate the qualifications of an EDGE business enterprise;

(12) Establish a waiver mechanism to waive program goals or participation requirements for those companies that, despite their best-documented efforts, are unable to contract with certified EDGE business enterprises;

(13) Establish a process for monitoring overall program compliance in which equal employment opportunity officers primarily are responsible for monitoring their respective agencies;

(14) Establish guidelines for state universities as defined in section 3345.011 of the Revised Code and the Ohio school facilities commission created in section 3318.30 of the Revised Code for awarding contracts pursuant to Chapters 153., 3318., and 3345. of the Revised Code to allow the universities and commission to establish agency procurement goals for contracting with EDGE business enterprises.

(C) ~~Not later than December 31, 2003, the director of administrative services shall prepare a detailed report to the governor outlining and evaluating the progress made in implementing the~~ Business and personal financial information and trade secrets submitted by encouraging diversity, growth, and equity program applicants to the director pursuant to this section are not public records for purposes of section 149.43 of the Revised Code, unless the director presents the financial information or trade secrets at a public hearing or public proceeding regarding the applicant's eligibility to participate in the program.

Sec. 123.17. (A) As used in this section, "institution of higher education" means a state university or college, as defined in section 3345.12 of the Revised Code, or a state community college.

(B) ~~The~~ Not later than December 30, 2005, the state architect shall establish a local administration competency certification program to certify institutions of higher education to administer capital facilities projects pursuant to section 3345.51 of the Revised Code without the supervision, control, or approval of the department of administrative services. The program shall offer instruction in the administration of capital facilities projects for employees of institutions of higher education who are responsible for such administration and who are selected by their employing institutions to participate in the program.

(C) The program shall provide instruction about the provisions of Chapters 9., 123., and 153. of the Revised Code and any rules or policies adopted by the department regarding the planning, design, and construction of capital facilities, including all of the following:

(D) The state architect shall award local administration competency certification to any institution of higher education if all of the following apply:

(1) The institution applied for certification on a form and in a manner prescribed by the state architect.

(2) The state architect determines that a sufficient number of the institution's employees, representing a sufficient number of employee classifications, responsible for the administration of capital facilities projects ~~has~~ have successfully completed the certification program to ensure that any capital facilities project undertaken by the institution will be administered successfully and in accordance with all provisions of the Revised Code, and the board of trustees of the institution provides written assurance to the state architect that the institution will select new employees to participate in the certification program as necessary to compensate for employee turnover.

(3) The state architect determines that the employees of the institution enrolled in the program demonstrate successful completion of the competency certification training and a satisfactory level of knowledge of and competency in the requirements for administering capital facilities projects.

(4) The institution pays the fee prescribed by division ~~(E)~~(F) of this section.

(5) The board of trustees of the institution provides written assurance to the state architect that the institution will conduct biennial audits of the institution's administration of capital facilities projects in accordance with division (C) of section 3345.51 of the Revised Code.

(6) The board of trustees of the institution agrees in writing to indemnify and hold harmless the state and the department for any claim of injury, loss, or damage that results from the institution's administration of a capital facilities project.

(E) Local administration competency certification granted under this section shall remain in effect for as long as the state architect determines that both of the following apply:

(1) The institution of higher education maintains a sufficient number of employees responsible for the administration of capital facilities projects who have successfully completed the certification program and have demonstrated a satisfactory level of knowledge of and competency in the requirements for administering capital facilities projects;

(2) The institution is performing the biennial audits prescribed in division (C) of section 3345.51 of the Revised Code.

If the state architect determines that an institution of higher education has failed to comply with the conditions of division (E)(1) or (2) of this section, the state architect shall revoke the institution's certification and shall notify the board of trustees of the institution in writing of the revocation.

(F) The state architect shall establish, subject to the approval of the director of budget and management, the amount of the fee required to be paid by any institution of higher education that seeks certification under this section. The amount of the fees shall be set to cover the costs to implement this section, including the costs for materials and the competency certification training sessions. Any fees received under this section shall be paid into the state treasury to the credit of the state architect's fund established under section 123.10 of the Revised Code.

~~(F)~~(G) Nothing in this section shall prohibit an institution that administers a capital facilities project under section 3345.51 of the Revised Code from requesting guidance or other services from the department of administrative services.

Sec. 124.07. (A) The director of administrative services shallappoint ~~such~~ examiners, inspectors, clerks, and other assistantsas ~~are~~ necessary to carry out sections 124.01 to 124.64 of theRevised Code. The director may designate persons in or out ofthe official service of the state to serve as examiners orassistants under the director's direction. An examiner orassistant shallreceive ~~such~~ the compensation for each day actually and necessarilyspent in the discharge of duties as an examineror assistant ~~asis determined by~~ that the director determines; provided, that, if ~~any such~~ theexaminer or assistant is in the official service of the state orany political subdivision of the state, it shall be apart of theexaminer's or assistant's official duties to render ~~such~~ those services inconnection with ~~such~~ an examination without extra compensation.

(B) Each state agency and each state-supported college ~~and~~ oruniversity shall pay the cost of the services and facilitiesfurnished to it by the department of administrative services thatare necessary to provide and maintain payroll services asprescribed in section 125.21 of the Revised Code and state meritstandards as prescribed in sections 124.01 to 124.64 of theRevised Code for the agency, or state-supported college, or university. If amunicipal corporation chooses to use the services and facilitiesfurnished by the department that are necessary to provide andmaintain the standards so prescribed, the municipal corporationshall pay the cost of the services and facilities that thedepartment furnishes to it. ~~Such~~The charges against a state agency, astate-supported college or university, or a municipal corporation shall becomputed on a reasonable cost basis in accordance with proceduresprescribed by the director of budget and management. Any moneysthe department ~~of administrative services~~ receives from ~~any such~~ astate agency, a state-supported college, or university, or a municipal corporation ~~which~~ under this division thatare in excess of the amount necessary to pay the cost offurnishing ~~such~~ the department's services and facilities during any fiscal yearshall be either refunded to or credited for the ensuing fiscalyear to the state agency, the state-supported college, or university, or the municipalcorporation ~~that contributed the excess moneys~~.

(C) The director of administrative services may enter into anagreement with any municipal corporation or other politicalsubdivision to furnish services and facilities of the department~~of administrative services~~ in the administration of ~~its~~ a meritprogram. ~~Such~~ The agreement shall provide that the department shall be reimbursedfor the reasonablecosts of ~~such~~ those services and facilities as determined by thedirector.

(D) All moneys received by the department ~~of administrativeservices~~ as reimbursement for payroll and merit program servicesperformed and facilities furnished under this section shall be paid into the statetreasury to the credit of the human resources servicesfund, which is hereby created.

(E) In counties of the state in which are located cities havingmunicipal civil service commissions, the director of administrative services may designatethe municipal civil service commission of the largest city within~~such~~ the county as the director's agent for the purpose ofcarrying out ~~such~~ theprovisions of sections 124.01 to 124.64 of the Revised Code,within ~~such counties~~ the county, as that the director designates. Each municipalcivil service commission designated as an agent of the directorshall render to the director, at the end of each month, ~~render~~ an itemized statement ~~tothe director~~ of the cost incurred by ~~such~~ the commission for workdone as the agent of the director, and the director ~~shall~~, afterapproving ~~such~~ that statement, shall pay the total amount of it tothetreasurer of ~~such~~ the municipal corporation in the same manner asother expenses of the department of administrative services.

(F) The director, of administrative services and the examiners, inspectors, clerks, and assistants referred to in this sectionshall receive, in addition to their salaries, ~~receive~~ reimbursement for~~such~~ necessary traveling and other expenses ~~as are~~ incurred inthe actual discharge of their official duties. The director mayalso incur the necessary expenses for stationery, printing, andother supplies incident to the business of the department ~~ofadministrative services~~.

Sec. 124.321. (A) Whenever it becomes necessary for anappointing authority to reduce its work force, the appointingauthority shall lay off employees or abolish their positions inaccordance with sections 124.321 to 124.327 of the Revised Codeand the rules of the director of administrative services.

(B)(1) Employees may be laid off as a result of a lack offunds within an appointing authority. For appointing authorities~~which~~ that employ persons whose salary or wage is paid by warrant ofthe auditor of state, the director of budget and management shallbe responsible for determining whether a lack of funds exists.For ~~all other~~ appointing authorities ~~which~~ that employ persons whosesalary or wage is paid other than by warrant of the auditor ofstate, the appointing authority ~~shall~~ itself shall determine whether alack of funds exists and shall file a statement of rationale andsupporting documentation with the director of administrativeservices prior to sending the layoff notice.

A (2) As used in this division, a "lack of funds" means an appointing authority has a currentor projected deficiency of funding to maintain current, or tosustain projected, levels of staffing and operations. Thissection does not require any transfer of money between funds inorder to offset a deficiency or projected deficiency of federalfunding for a program.

(3) The director of budget and management shall ~~promulgate~~ adoptrules, under Chapter 119. of the Revised Code, for agencies whoseemployees are paid by warrant of the auditor of state, fordetermining whether a lack of funds exists.

(C)(1) Employees may be laid off as a result of lack of workwithin an appointing authority. For appointing authorities whoseemployees are paid by warrant of the auditor of state, thedirector of administrative services shall determine whether alack of work exists. All other appointing authorities shallthemselves determine whether a lack of work exists and shall filea statement of rationale and supporting documentation with thedirector of administrative services prior to sending the layoff notice~~of layoff~~.

A (2) As used in this division, a "lack of work~~, for purposes of layoff,~~" means an appointingauthority has a current or projected temporary decrease in theworkload, expected to last less than one year, ~~which~~ that requires areduction of current or projected staffing levels. Thedetermination of a lack of work shall indicate the current orprojected temporary decrease in the workload of an appointingauthority and whether the current or projected staffing levels ofthe appointing authority will be excessive.

(D)(1) Employees may be laid off as a result of abolishmentof positions. ~~Abolishment~~ As used in this division, "abolishment" means the ~~permanent~~ deletion of aposition or positions from the organization or structure of anappointing authority ~~due to lack of continued need for theposition~~. An

For purposes of this division, an appointing authority may abolish positions for any one or any combination of the following reasons: as aresult of a reorganization for the efficient operation of theappointing authority, for reasons of economy, or for lack ofwork. ~~The determination of the need to abolish positions shallindicate the lack of continued need for positions within anappointing authority~~

(2)(a) Reasons of economy permitting an appointing authority to abolish a position and to lay off the holder of that position under this division shall be determined at the time the appointing authority proposes to abolish the position. The reasons of economy shall be based on the appointing authority's estimated amount of savings with respect to salary, benefits, and other matters associated with the abolishment of the position, except that the reasons of economy associated with the position's abolishment instead may be based on the appointing authority's estimated amount of savings with respect to salary and benefits only, if:

(i) Either the appointing authority's operating appropriation has been reduced by an executive or legislative action, or the appointing authority has a current or projected deficiency in funding to maintain current or projected levels of staffing and operations; and

(ii) It files a notice of the position's abolishment with the director of administrative services within one year of the occurrence of the applicable circumstance described in division (D)(2)(a)(i) of this section.

(b) The following principles apply when a circumstance described in division (D)(2)(a)(i) of this section would serve to authorize an appointing authority to abolish a position and to lay off the holder of the position under this division based on the appointing authority's estimated amount of savings with respect to salary and benefits only:

(i) The position's abolishment shall be done in good faith and not as a subterfuge for discipline.

(ii) If a circumstance affects a specific program only, the appointing authority only may abolish a position within that program.

(iii) If a circumstance does not affect a specific program only, the appointing authority may identify a position that it considers appropriate for abolishment based on the reasons of economy. ~~Appointing authorities~~

(3) Each appointing authority shall ~~themselves~~determine itself whether any position should be abolished and shall filea statement of rationale and supporting documentation with thedirector of administrative services prior to sending the noticeof abolishment. If

If an abolishment results in a reduction of thework force, the appointing authority shall follow the proceduresfor laying off employees, subject to the following modifications:

~~(1)~~(a) The employee whose position has been abolished shallhave the right to fill an available vacancy within the employee'sclassification;.

~~(2)~~(b) If the employee whose position has been abolished hasmore retention points than any other employee serving in the sameclassification, ~~then~~ the employee with the fewest retentionpoints shall be displaced;.

~~(3)~~(c) If the employee whose position has been abolished hasthe fewest retention points in the classification, the employeeshall have the right to fill an available vacancy in a lowerclassification in the classification series;.

~~(4)~~(d) If the employee whose position has been abolished hasthe fewest retention points in the classification, the employeeshall displace the employee with the fewest retention points inthe next or successively lower classification in theclassification series.

(E) The director of administrative services shall~~promulgate~~ adopt rules, under Chapter 119. of the Revised Code, for thedetermination of lack of work within an appointing authority, forthe abolishment of positions by an appointing authority, and forthe implementation of this section.

Sec. 124.328. A classified employee may appeal alayoff, or adisplacement ~~which~~ that is theresult of a layoff, to the state personnel board of review. Theappeal shall be filed or ~~post-marked~~ postmarked no later than ten days after receipt ofthe layoff notice ~~of layoff~~ or after the date the employee is displaced. In casesinvolving the laying off of classified employees, the affected employee or appointing authority mayappeal the decision of the state personnel board of review to the court of common pleas~~court. The appeal from the state personnel board of review shall be made~~ inaccordance with section 119.12 of the Revised Code.

Sec. 125.041. Nothing in sections 125.02,125.03 to 125.08, 125.12 to 125.16, 125.18,125.31 to 125.76, or 125.831 of the RevisedCode shall be construed as limiting the attorney general, auditor of state,secretary of state, or treasurer of state in any of the following:

(A) Purchases for less than the dollaramounts for the purchase of supplies or services determined pursuant todivision (D) of section 125.05 of the Revised Code;

(B) Purchases that equal orexceed the dollar amounts for the purchase of supplies or services determinedpursuant to division (D) of section 125.05 of the Revised Code with theapproval of the controlling board, if that approval isrequired by section127.16 of the Revised Code;

(C) The final determination of the nature or quantity making anypurchase of supplies or services to be purchased pursuant to section125.06 of the Revised Code;

Sec. 125.05. Except as provided in division (E) of thissection, no state agency shall purchase any supplies orservices except as provided in divisions (A) to (C) of this section.

(A) Subject to division (D) of this section, a state agency may, withoutcompetitive selection, make any purchase of services that cost fifty thousanddollars or less or any purchase of supplies that cost twenty-five thousanddollars or less. The agency may make the purchase directly or may make thepurchase from or through the department of administrative services, whicheverthe agency determines. Thedepartmentshall establish written procedures to assist state agencies whenthey makedirect purchases. If the agency makes the purchase directly, itshall make the purchase by a term contract whenever possible.

(B) Subject to division (D) of this section, a state agencywanting to purchase services that cost more thanfifty thousand dollars or supplies that cost more thantwenty-five thousand dollars shall, unless otherwise authorized by law, makethe purchase from or through the department. The department shall make thepurchase by competitive selection under section 125.07 of theRevised Code. If the director of administrative services determines that itis not possible or not advantageous to the state for the department to makethe purchase, the department shall grant the agency a release and permit undersection 125.06 of the Revised Code to make the purchase. Section 127.16 ofthe Revised Code does not apply to purchases the department makes under thissection.

(C) An agency that has been granted a release and permit to makea purchase may make the purchase without competitive selection if after makingthe purchase the cumulative purchase threshold as computed under division (F)of section 127.16 of the Revised Code would:

(2) Not be exceeded and the department of administrativeservices approves the purchase.

(D) Not later than January 31, 1997, the amountsspecified in divisions (A) and (B) of this section and, notlater than the thirty-first day of January of each second yearthereafter, any amounts computed by adjustments made under this division,shall be increased or decreased by the average percentage increase or decreasein the consumer price index prepared by the United Statesbureau of labor statistics (U.S. CityAverage for Urban Wage Earners and Clerical Workers: "All Items1982-1984=100") for the twenty-four calendar month period prior to theimmediately preceding first day of January over the immediatelypreceding twenty-four calendar month period, as reported by the bureau. Thedirector of administrative services shall make this determination and adjustthe appropriate amounts accordingly.

(E) If the eTech Ohio ~~SchoolNet~~commission, the department of education,or the Ohio education computernetwork determines that it can purchase software services or supplies forspecified school districts at a price less than the price for which thedistricts could purchase the same software services or supplies forthemselves, the ~~office~~ commission, department, or network shall certify that fact to thedepartment of administrative services and, acting as an agent for thespecified school districts, shall make that purchase without following theprovisions in divisions (A) to (D) of this section.

Sec. 125.11. (A) Subject to division (B) of thissection,contracts awarded pursuant toa reverse auctionunder section125.072 of the Revised Code or pursuant tocompetitivesealedbidding, including contracts awarded undersection125.081 oftheRevised Code, shall be awarded to thelowestresponsive andresponsible bidder on each item inaccordance withsection 9.312of the Revised Code. When thecontract is for meatproducts asdefined in section 918.01 of theRevised Code orpoultry productsas defined in section 918.21 ofthe RevisedCode, only those bidsreceived from vendors offeringproducts fromestablishments on thecurrent listof meat andpoultry vendors established andmaintained by thedirector ofadministrative services undersection 125.17 of theRevised Codeshall be eligible foracceptance. The department ofadministrative services may acceptor reject any or all bids inwhole or by items, except that whenthe contract is for servicesorproducts available from aqualified nonprofit agencypursuant tosections 125.60 to 125.6012 or 4115.31 to 4115.35of the Revised Code, thecontractshall be awarded to that agency.

(B) Prior to awarding a contract under division (A) ofthissection, the department of administrative services or thestateagency responsible for evaluating a contract for thepurchase ofproducts shall evaluate the bids receivedaccording tothecriteria and procedures established pursuant to divisions(C)(1)and (2) of section 125.09 of the Revised Code fordetermining if aproduct is produced or mined in the UnitedStates and if a productisproduced or mined inthis state. Thedepartment or otherstate agency shall first remove bids that offerproductsthathave not been or that will not beproduced or mined intheUnitedStates. From among the remaining bids, the departmentorotherstate agency shall select the lowest responsive andresponsiblebid, inaccordance with section 9.312 of the RevisedCode, fromamong thebids that offerproducts thathave beenproduced ormined inthis statewhere sufficientcompetitioncan be generatedwithinthisstate toensure thatcompliancewith theserequirements will not result inan excessiveprice forthe productor acquiring adisproportionately inferiorproduct.Ifthere aretwo or morequalified bids that offerproducts that have beenproduced or minedinthis state, itshall be deemed thatthere issufficient competitionto prevent anexcessive price for theproduct or the acquiring ofadisproportionately inferior product.

(D) Division (B) of this section does not apply tothepurchase by the division of liquor control ofspirituousliquor.

(E) The director of administrative services shall publishinthe form of a model act for use by counties, townships,municipalcorporations, or any other political subdivisiondescribed indivision (B) of section 125.04 of the Revised Code, asystem ofpreferencesfor productsmined andproduced inthisstate and inthe United States and forOhio-basedcontractors.Themodel actshall reflect substantialequivalenceto the systemofpreferencesin purchasing and publicimprovementcontractingprocedures underwhich the state operatespursuant tothis chapterand section153.012 of the Revised Code. To themaximum extentpossible,consistent with the Ohio systemofpreferences inpurchasing andpublic improvement contractingprocedures, themodel act shallincorporate all of therequirements of the federal"Buy AmericaAct," 47 Stat. 1520(1933), 41 U.S.C. 10a to 10d, asamended, andthe rules adoptedunder that act.

Before and during the development and promulgationofthemodel act, the director shall consult with appropriatestatewideorganizations representing counties, townships, andmunicipalcorporations so as to identify the special requirementsandconcerns these political subdivisions have in their purchasingandpublic improvement contracting procedures. The directorshallpromulgate the model act by rule adopted pursuant toChapter 119.of the Revised Code and shall revise the act asnecessary toreflect changes in this chapter or section 153.012of the RevisedCode.

The director shall make available copies of the model act,supporting information, and technical assistance to any township,county, or municipal corporation wishing to incorporate theprovisions of the act into its purchasing or public improvementcontracting procedure.

Sec. 125.18. (A) There is hereby established the office of information technology housed within the department of administrative services. The office shall be under the supervision of a chief information officer to be appointed by the governor and subject to removal at the pleasure of the governor. The chief information officer shall serve as the director of the office.

(B) The director of the office of information technology shall advise the governor regarding the superintendence and implementation of statewide information technology policy.

(C) The director of the office of information technology shall lead, oversee, and direct state agency activities related to information technology development and use. In that regard, the director shall do all of the following:

(1) Coordinate and superintend statewide efforts to promote common use and development of technology by state agencies. The office of information technology shall establish policies and standards that govern and direct state agency participation in statewide programs and initiatives.

(2) Establish policies and standards for the acquisition and use of information technology by state agencies, including, but not limited to, hardware, software, technology services, and security, with which state agencies shall comply;

(3) Establish criteria and review processes to identify state agency information technology projects that require alignment or oversight. As appropriate, the office of information technology shall provide the governor and the director of budget and management with notice and advice regarding the appropriate allocation of resources for those projects. The director of the office of information technology may require state agencies to provide, and may prescribe the form and manner by which they must provide, information to fulfill the director's alignment and oversight role.

(D) The office of information technology shall have the same authority given to the department of administative services under sections 125.01, 125.02, 125.023, 125.04, 125.05, 125.06, 125.07, 125.071, 125.072, 125.081, 125.09, 125.10, 125.11, and 125.25 of the Revised Code for the purchase of information technology supplies and services for state agencies.

(E) The office of information technology may make contracts for, operate, and superintend technology supplies and services for state agencies in accordance with this chapter.

(F) The office of information technology may establish cooperative agreements with federal and local government agencies and state agencies that are not under the authority of the governor for the provision of technology services and the development of technology projects.

(G) As used in this section, "state agency" means every organized body, office, or agency established by the laws of the state for the exercise of any function of state government, other than any state-supported institution of higher education, the office of the auditor of state, treasurer of state, secretary of state, or attorney general, the public employees retirement system, the Ohio police and fire pension fund, the state teachers retirement system, the school employees retirement system, the state highway patrol retirement system, the general assembly or any legislative agency, or the courts or any judicial agency.

Sec. 125.25. (A) The director of administrative services may debar a vendor from consideration for contract awards upon a finding based upon a reasonable belief that the vendor has done any of the following:

(1) Abused the selection process by repeatedly withdrawing bids or proposals before purchase orders or contracts are issued or failing to accept orders based upon firm bids;

(2) Failed to substantially perform a contract according to its terms, conditions, and specifications within specified time limits;

(3) Failed to cooperate in monitoring contract performance by refusing to provide information or documents required in a contract, failed to respond to complaints to the vendor, or accumulated repeated justified complaints regarding performance of a contract;

(4) Attempted to influence a public employee to breach ethical conduct standards or to influence a contract award;

(6) Been convicted of a criminal offense related to the application for or performance of any public or private contract, including, but not limited to, embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, and any other offense that directly reflects on the vendor's business integrity;

(8) Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;

(9) Violated any other responsible business practice or performed in an unsatisfactory manner as determined by the director;

(10) Through the default of a contract or through other means had a determination of unresolved finding for recovery by the auditor of state under section 9.24 of the Revised Code;

(11) Acted in such a manner as to be debarred from participating in a contract with any governmental agency.

(B) When the director reasonably believes that grounds for debarment exist, the director shall send the vendor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing on the proposed debarment. The hearing shall be conducted in accordance with Chapter 119. of the Revised Code. If the vendor does not respond with a request for a hearing in the manner specified in Chapter 119. of the Revised Code, the director shall issue the debarment decision without a hearing and shall notify the vendor of the decision by certified mail, return receipt requested.

(C) The director shall determine the length of the debarment period and may rescind the debarment at any time upon notification to the vendor. During the period of debarment, the vendor is not eligible to participate in any state contract. After the debarment period expires, the vendor shall be eligible to be awarded contracts by state agencies.(D) The director, through the office of information technology and the office of procurement services, shall maintain a list of all vendors currently debarred under this section.

(1) Is organized under the laws of the United States or this state such that no part of its net income inures to the benefit of any shareholder or other individual;

(2) Is certified as a sheltered workshop, if applicable, by the wage and hour division of the United States department of labor;

(3) Is registered and in good standing with the secretary of state as a domestic nonprofit or not-for-profit corporation;

(4) Complies with applicable occupational health and safety standards required by the laws of the United States or of this state;

(5) Operates in the interest of persons with work-limiting disabilities, provides vocational or other employment-related training to persons with work-limiting disabilities, and employs persons with work-limiting disabilities in the manufacture of products or the provision of services;

(1) Any state agency, including the general assembly, the supreme court, and the office of a state elected official, or any state authority, board, bureau, commission, institution, or instrumentality that is funded in total or in part by state money;

(C) "Person with a work-limiting disability" means an individual who has a disability as defined in the "Americans with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C. 12101, and who:

(1) Because of that disability is substantially limited in the type or quantity of work the individual can perform or is prevented from working regularly;

(2) Meets criteria established by the office of procurement from community rehabilitation programs.

Sec. 125.601. (A) Not later than July 1, 2007, the director of administrative services shall establish the office of procurement from community rehabilitation programs within the department of administrative services. The director shall designate an employee of the department to serve as administrator of the office.

(B) Not later than July 1, 2007, the director shall abolish the state committee for the purchase of products and services provided by persons with severe disabilities in accordance with section 4115.36 of the Revised Code.

Sec. 125.602. (A) The department of mental retardation and developmental disabilities, the department of mental health, the department of job and family services, the rehabilitation services commission, and any other state or governmental agency or community rehabilitation program responsible for the provision of rehabilitation and vocational educational services to persons with work-limiting disabilities may, through written agreement, cooperate in providing resources to the department of administrative services for the operation of the office of procurement from community rehabilitation programs. These resources may include, but are not limited to, leadership and assistance in dealing with the societal aspects of meeting the needs of persons with work-limiting disabilities.

(B) The office and all governmental entities that administer socioeconomic programs may enter into contractual agreements, cooperative working relationships, or other arrangements that are necessary for effective coordination and realization of the objectives of these entities.

Sec. 125.603. (A) The office of procurement from community rehabilitation programs shall do the following in addition to other duties specified in sections 125.60 to 125.6012 of the Revised Code:

(1) Establish, maintain, and periodically update a procurement list of approved supplies and services available from qualified nonprofit agencies;

(2) Monitor the procurement practices of government ordering offices to ensure compliance with sections 125.60 to 125.6012 of the Revised Code;

(3) In cooperation with qualified nonprofit agencies, government ordering offices, the department of mental retardation and developmental disabilities, the department of mental health, the department of job and family services, and the rehabilitation services commission, develop and recommend to the director of administrative services rules the director shall adopt in accordance with Chapter 119. of the Revised Code for the effective and efficient administration of sections 125.60 to 125.6012 of the Revised Code;

(4) Prepare a report of its activities by the last day of December of each year. The report shall be posted electronically on the office's web site.

(B) The office of procurement from community rehabilitation programs may enter into contractual agreements and establish pilot programs to further the objectives of sections 125.60 to 125.6012 of the Revised Code.

Sec. 125.604. A community rehabilitation program may apply to the office of procurement from community rehabilitation programs to be certified as qualified to provide its supplies and services for procurement by government ordering offices. The office shall prescribe the form of the application. If the office is satisfied the program is qualified, it shall certify the program as a qualified nonprofit agency for the purposes of sections 125.60 to 125.6012 of the Revised Code.

Sec. 125.605. The office of procurement from community rehabilitation programs may certify any entity to serve as an approved agent of a qualified nonprofit agency for the purposes of sections 125.60 to 125.6012 of the Revised Code. The office shall prescribe procedures under which an entity can apply and be considered for such certification. An approved agent may do any of the following:

(A) Contract with the office of procurement from community rehabilitation programs to provide centralized business facilitation or other assistance to qualified nonprofit agencies. The office shall consult with qualified nonprofit agencies before agreeing to such a contract.

(B) Act as a distributor of supplies and services registered on the procurement list maintained by the office under section 125.603 of the Revised Code;

Sec. 125.606. Prior to purchases by government ordering offices, the office of procurement from community rehabilitation programs shall attempt to establish for each item on the procurement list a fair market price that is representative of the range of prices that a government ordering office would expect to pay to purchase the item in the marketplace. When establishing a fair market price for an item, the office of procurement from community rehabilitation programs shall consider the costs of doing business with respect to that item, including sales, marketing, and research and development costs and agent fees. If the office of procurement from community rehabilitation programs cannot establish a fair market price for a particular supply or service, the government ordering office shall attempt to establish the fair market price pursuant to division (B) of section 125.607 of the Revised Code for each purchase of such supply or service.

Sec. 125.607. (A) Before purchasing any supply or service, a governmental ordering office shall determine whether the supply or service is on the procurement list maintained by the office of procurement from community rehabilitation programs. If the supply or service is on the list at an established fair market price, the government ordering office shall purchase it from the qualified nonprofit agency or approved agent at that price.

(B) If the supply or service is on the procurement list but a fair market price has not been established, the government ordering office shall attempt to negotiate an agreement with one or more of the listed qualified nonprofit agencies or approved agents. The office of procurement from community rehabilitation programs may accept as fair market price an agreement negotiated between the government ordering office and a qualified nonprofit agency or approved agent.

(C) If an agreement is not successfully negotiated, the office may establish a fair market price, or it may release a government ordering office from the requirements of this section.

(D) A purchase under divisions (A) to (C) of this section is not subject to any competitive selection or competitive bidding requirements, notwithstanding any other provision of law.

(E) The department of administrative services has the authority to structure or regulate competition among qualified nonprofit agencies for the overall benefit of the program.

Sec. 125.608. All government ordering offices purchasing supplies and services from qualified non-profit agencies or their approved agents shall reimburse the department of administrative services a reasonable sum to cover the department's costs of administering sections 125.60 to 125.6012 of the Revised Code. The department may bill administrative costs to government ordering offices directly, or allow qualified non-profit agencies or approved agents to collect and remit department administrative fees, at the department's discretion. Any department administrative fees collected and remitted by qualified nonprofit agencies or their approved agents shall be considered allowable expenses in addition to the fair market price approved under section 125.606 or 125.607 of the Revised Code. The money so paid shall be deposited in the state treasury to the credit of the general services fund created under section 125.15 of the Revised Code.

Sec. 125.609. The office of procurement from community rehabilitation programs, on its own or pursuant to a request from a government ordering office, may release a government ordering office from compliance with sections 125.60 to 125.6012 of the Revised Code. If the office determines that compliance is not possible or not advantageous, or if conditions prescribed in rules as may be adopted under section 125.603 of the Revised Code for granting a release are met, the office may grant a release. The release shall be in writing, and shall specify the supplies or services to which it applies, the period of time during which it is effective, and the reason for which it is granted.

Sec. 125.6010. Section 125.607 of the Revised Code does not apply to the purchase of a product or service available from a state agency, state instrumentality, or political subdivision under any law in effect on July 1, 2005.

Sec. 125.6011. (A) Nothing in sections 125.60 to 125.6012 of the Revised Code shall be construed to prohibit the purchase of a supply or service from a qualified nonprofit agency by a political subdivision that is not a government ordering office.

(B) Purchases made under this section by a political subdivision, as defined in section 125.04 of the Revised Code, are exempt from any competitive selection procedures otherwise required by law. Purchases under this section shall be made from qualified nonprofit agencies or their approved agents.

(C) A political subdivision, as defined in section 125.04 of the Revised Code, may not purchase under division (C) of that section a supply or service on the procurement list established under section 125.603 of the Revised Code.

Sec. 125.6012. A government ordering office and qualified nonprofit agency shall provide the necessary information and documentation requested by the office of procurement from community rehabilitation programs to enable the office to effectively administer sections 125.60 to 125.6012 of the Revised Code.

(A) "Law enforcement officer" means an officer, agent, or employee of a state agency upon whom, by statute, a duty to conserve the peace or to enforce all or certain laws is imposed and the authority to arrest violators is conferred, within the limits of that statutory duty and authority, but does not include such an officer, agent, or employee if that duty and authority is location specific.

(B)(1) "Motor vehicle" means any automobile, car minivan, cargo van, passenger van, sport utility vehicle, or pickup truck with a gross vehicle weight of under twelve thousand pounds.

(2) "Motor vehicle" does not include, except for the purposes of division (C) of section 125.832 of the Revised Code, any vehicle described in division (B)(1) of this section that is used by a law enforcement officer and law enforcement agency or any vehicle that is so described and that is equipped with specialized equipment that is not normally found in such a vehicle and that is used to carry out a state agency's specific and specialized duties and responsibilities.

(C) "Specialized equipment" does not include standard mobile radios with no capabilities other than voice communication, exterior and interior lights, or roof-mounted caution lights.

(D) "State agency" means every organized body, office, board, authority, commission, or agency established by the laws of the state for the exercise of any governmental or quasi-governmental function of state government regardless of the funding source for that entity, other than any ~~state-supported~~ state institution of higher education, the office of the governor, lieutenant governor, auditor of state, treasurer of state, secretary of state, or attorney general, the general assembly or any legislative agency, or the courts or any judicial agency, or any state retirement system or retirement program established by or referenced in the Revised Code.

(E) "State institution of higher education" has the same meaning as in section 3345.011 of the Revised Code.

Sec. 125.832. (A) The department of administrative services is granted exclusive authority over the acquisition and management of all motor vehicles used by state agencies. In carrying out this authority, the department shall do both of the following:

(1) Approve the purchase or lease of each motor vehicle for use by a state agency. The department shall decide if a motor vehicle shall be leased or purchased for that use.

Except as otherwise provided in division (A)(1) of this section, on and after July 1, 2005, each state agency shall acquire all passenger motor vehicles under the department's master leasing program. If the department determines that acquisition under that program is not the most economical method and if the department and the state agency acquiring the passenger motor vehicle can provide economic justification for doing so, the department may approve the purchase, rather than the lease, of a passenger motor vehicle for the acquiring state agency.

(2) Direct and approve all funds that are expended for the purchase, lease, repair, maintenance, registration, insuring, and other costs related to the possession and operation of motor vehicles for the use of state agencies.

(B) The director of administrative services shall establish and operate a fleet management program. The director shall operate the program for purposes including, but not limited to, cost-effective acquisition, maintenance, management, analysis, and disposal of all motor vehicles owned or leased by the state. All state agencies shall comply with statewide fleet management policies and procedures established by the director for the program, including, but not limited to, motor vehicle assignments, additions of motor vehicles to fleets or motor vehicle replacements, motor vehicle fueling, and motor vehicle repairs.

(C) The director shall establish and maintain a fleet reporting system and shall require state agencies to submit to the department information relative to state motor vehicles, including motor vehicles described in division (B)(2) of section 125.831 of the Revised Code, to be used in operating the fleet management program. State agencies shall provide to the department fleet data and other information, including, but not limited to, mileage and costs. The data and other information shall be submitted in formats and in a manner determined by the department.

(D) All state agency purchases or leases of motor vehicles are subject to the prior approval of the director under division (A)(1) of this section.

(E) State agencies that utilize state motor vehicles or pay mileage reimbursements to employees shall provide a fleet plan to the department as directed by the department.

(F)(1) The fleets of state agencies that consist of one hundred or less vehicles on July 1, 2004, shall be managed by the department's fleet management program on a time schedule determined by the department, unless the state agency has received delegated authority as described in division (G) of this section.

(2) The fleets of state agencies that consist of greater than one hundred motor vehicles, but less than five hundred motor vehicles, on July 1, 2005, also shall be managed by the department's fleet management program on a time schedule determined by the department, unless the state agency has received delegated authority as described in division (G) of this section.

(G)(1) The department may delegate any or all of its duties regarding fleet management to a state agency, if the state agency demonstrates to the satisfaction of the department both of the following:

(a) Capabilities to institute and manage a fleet management program, including, but not limited to, the presence of a certified fleet manager;

(b) Fleet management performance, as demonstrated by fleet data and other information submitted pursuant to annual reporting requirements and any other criteria the department considers necessary in evaluating the performance.

(2) The department may determine that a state agency is not in compliance with this section and direct that the agency's fleet management duties be transferred to the department.

(H) The proceeds derived from the disposition of any motor vehicles under this section shall be paid to whichever of the following applies:

(1) The fund that originally provided moneys for the purchase or lease of the motor vehicles;

(2) If the motor vehicles were originally purchased with moneys derived from the general revenue fund, the proceeds shall be deposited, in the director's discretion, into the state treasury ~~for~~ to the credit to of either the fleet management fund created by section 125.83 of the Revised Code or the investment recovery fund created by section 125.14 of the Revised Code.

(I)(1) The department shall create and maintain a certified fleet manager program.

(2) State agencies that have received delegated authority as described in division (G) of this section shall have a certified fleet manager.

(J) The department annually shall prepare and submit a statewide fleet report to the governor, the speaker of the house of representatives, and the president of the senate. The report shall be submitted not later than the thirty-first day of January following the end of each fiscal year. It may include, but is not limited to, the numbers and types of motor vehicles, their mileage, miles per gallon, and cost per mile, mileage reimbursements, accident and insurance data, and information regarding compliance by state agencies having delegated authority under division (G) of this section with applicable fleet management requirements.

(K) The director shall adopt rules for implementing the fleet management program that are consistent with recognized best practices. The program shall be supported by reasonable fee charges for the services provided. The director shall collect these fees and deposit them into the state treasury to the credit for the fleet management fund created by section 125.83 of the Revised Code. The setting and collection of fees under this division is not subject to any restriction imposed by law upon the director's or the department's authority to set or collect fees.

(L) The director also shall adopt rules that prohibit, except in very limited circumstances, the exclusive assignment of state-owned, leased, or pooled motor vehicles to state employees and that prohibit the reimbursement under section 126.31 of the Revised Code of state employees who use their own motor vehicles for any mileage they incur above an amount that the department shall determine annually unless reimbursement for the excess mileage is approved by the department in accordance with standards for that approval the director shall establish in those rules. Beginning on ~~the effective date of this section~~ September 26, 2003, no ~~such~~ state-owned, leased, or pooled motor vehicle shall be personally assigned as any form of compensation or benefit of state employment, and no ~~such~~ state-owned, leased, or pooled motor vehicle shall be assigned to an employee solely for commuting to and from home and work.

(1) Implement to the greatest extent possible the recommendations from the 2002 report entitled "Administrative Analysis of the Ohio Fleet Management Program" in connection with the authority granted to the department by this section;

(2) Attempt to reduce the number of passenger vehicles used by state agencies during the fiscal years ending on June 30, 2004, and June 30, 2005.

(N) Each state agency shall reimburse the department for all costs incurred in the assignment of motor vehicles to the state agency.

(O) The director shall do all of the following in managing the fleet management program:

(1) Determine how motor vehicles will be maintained, insured, operated, financed, and licensed;

(2) Pursuant to the formula in division (O)(3) of this section, annually establish the minimum number of business miles per year an employee of a state agency must drive in order to qualify for approval by the department to receive a motor vehicle for business use;

(3) Establish the minimum number of business miles per year at an amount that results when the annual motor vehicle cost is divided by the amount that is the reimbursement rate per mile minus the amount that is the sum of the fuel cost, the operating cost, and the insurance cost. As used in this division:

(a) "Annual motor vehicle cost" means the price of a motor vehicle divided by the number of years an average motor vehicle is used.

(b) "Fuel cost" means the average price per gallon of motor fuel divided by the miles per gallon fuel efficiency of a motor vehicle.

(c) "Insurance cost" means the cost of insuring a motor vehicle per year divided by the number of miles an average motor vehicle is driven per year.

(d) "Operating cost" means the maintenance cost of a motor vehicle per year divided by the product resulting when the number of miles an average motor vehicle is driven per year is multiplied by the number of years an average motor vehicle is used.

(e) "Reimbursement rate per mile" means the reimbursement per mile rate for travel expenses as provided by rule of the director of budget and management adopted under division (B) of section 126.31 of the Revised Code.

(P)(1) Not later than the fifteenth day of September of each year, each state institution of higher education shall report to the department on all of the following topics relating to motor vehicles that the institution acquires and manages:

(b) Whether or not it uses a fuel card program to purchase fuel for, or to pay for the maintenance of, the motor vehicles;

(2) Assuming it does not use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that the department provides, the report of a state institution of higher education required by division (P)(1) of this section also shall include both of the following:

(a) An analysis of the amount the institution would save, if any, if it were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that the department provides instead of the fleet management system the institution regularly uses;

(b) A rationale for either continuing with the fleet management system that the institution regularly uses or changing to the use of those tools and services that the department provides.

(3) The department shall certify within ninety days after receipt of all reports under division (P)(1) of this section a list of those state institutions of higher education that the department determines would save amounts if they were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that the department provides. The institutions so certified then shall use those tools and services that the department provides until the department next certifies institutions under division (P)(3) of this section.

Sec. 126.25. The accounting and budgeting services provided by the director of budget andmanagement shall be supported by user charges. The directorshall determine a rate that is sufficient to defray the expense of thoseservices and the manner by which those charges shall be collected. All moneycollected from user charges shall be deposited in the state treasury to thecredit of the ~~state~~ accounting and budgeting fund, which is hereby created. Rebates orrevenue shares received from any state payment card program established underdivision(B) of section 126.21 of the Revised Code and miscellaneous payments thatreimburse expenses paid from the ~~state~~ accounting and budgeting fund may be deposited intothe ~~state~~ accounting and budgeting fund and used to support accounting and budgeting services.

Sec. 127.16. (A) Upon the request of either a stateagencyor the director of budget and management and after thecontrollingboard determines that an emergency or a sufficienteconomic reasonexists, the controlling board may approvethe making of a purchasewithout competitive selection as provided indivision (B) of thissection.

(B) Except as otherwise provided in this section, no stateagency, using money that has been appropriated to it directly,shall:

(1) Make any purchase from a particular supplier, thatwouldamount to fifty thousand dollars or more when combined withboththe amount of all disbursements to the supplier during thefiscalyear for purchases made by the agency and the amount ofalloutstanding encumbrances for purchases made by the agencyfrom thesupplier, unless the purchase is made by competitiveselection orwith the approval of the controlling board;

(2) Lease real estate from a particular supplier, if thelease would amount to seventy-five thousand dollars or more whencombined with both the amount of all disbursements to thesupplierduring the fiscal year for real estate leases made bythe agencyand the amount of all outstanding encumbrances forreal estateleases made by the agency from the supplier, unlessthe lease ismade by competitive selection or with the approvalof thecontrolling board.

(C) Any person who authorizes a purchase in violation ofdivision (B) of this section shall be liable to the state for anystate funds spent on the purchase, and the attorney general shallcollect the amount from the person.

(1) A limitation upon the authority of the director oftransportation as granted in sections 5501.17, 5517.02, and5525.14 of the Revised Code;

(2) Applying to medicaid provider agreements under Chapter5111. of the Revised Code~~or payments or provideragreements under thedisability medical assistance programestablished under Chapter5115. of the Revised Code~~;

(3) Applying to the purchase of examinations from a solesupplier by a state licensing board under Title XLVII of theRevised Code;

(4) Applying to entertainment contracts for the Ohio statefair entered into by the Ohio expositions commission, providedthat the controlling board has given its approval to thecommission to enter into such contracts and has approved a totalbudget amount for such contracts as agreed upon by commissionaction, and that the commission causes to be kept itemizedrecordsof the amounts of money spent under each contract andannuallyfiles those records with the clerk of thehouse of representativesand the clerk of the senate followingthe close of the fair;

(5) Limiting the authority of the chief of the division ofmineral resources management to contractfor reclamation work withan operatormining adjacent land as provided in section 1513.27 oftheRevised Code;

(6) Applying to investment transactions and procedures ofany state agency, except that the agency shall file with theboardthe name of any person with whom the agency contracts tomake,broker, service, or otherwise manage its investments, aswell asthe commission, rate, or schedule of charges of suchperson withrespect to any investment transactions to beundertaken on behalfof the agency. The filing shall be in aform and at such times asthe board considers appropriate.

(7) Applying to purchases made with money for the per centfor arts program established by section 3379.10 of the RevisedCode;

(8) Applying to purchases made by the rehabilitationservices commission of services, or supplies, that are providedtopersons with disabilities, or to purchases made by thecommissionin connection with the eligibility determinations itmakes forapplicants of programs administered by the socialsecurityadministration;

(9) Applying to payments by the department of job andfamilyservices under section 5111.13 of the Revised Code for grouphealth plan premiums, deductibles, coinsurance, and othercost-sharing expenses;

(11) Applying to agreements or contracts entered into undersection5101.11, 5101.20, 5101.201, 5101.21, or 5101.214 of the Revised Code;

(12) Applying to purchases of services by the adult paroleauthority under section 2967.14 of the Revised Code or by thedepartment of youth services under section 5139.08 of the RevisedCode;

(13) Applying to dues or fees paid for membership in anorganization or association;

(14) Applying to purchases of utility services pursuant tosection 9.30 of the Revised Code;

(15) Applying to purchases made in accordance with rulesadopted by the department of administrative services of motorvehicle, aviation, or watercraft fuel, or emergency repairs ofsuch vehicles;

(17) Applying to purchases necessary to provide publicnotifications required by law or to provide notifications of jobopenings;

(19) Applying to purchases of liquor for resale by thedivision of liquorcontrol;

(20) Applying to purchases of motor courier and freightservices made in accordance with department of administrativeservices rules;

(21) Applying to purchases from the United States postalservice and purchases of stamps and postal meter replenishmentfrom vendors at rates established by the United States postalservice;

(22) Applying to purchases of books, periodicals,pamphlets,newspapers, maintenance subscriptions, and otherpublishedmaterials;

(23) Applying to purchases from other state agencies,including state-assisted institutions of higher education;

(24) Limiting the authority of the director ofenvironmentalprotection to enter into contracts under division(D) of section3745.14 of the Revised Code to conduct compliancereviews, asdefined in division (A) of that section;

(25) Applying to purchases from a qualified nonprofitagencypursuant to sections 125.60 to 125.6012 or 4115.31 to 4115.35 of the RevisedCode;

(26) Applying to payments by the department of job andfamilyservices to the United States department of health andhumanservices for printing and mailing notices pertaining to thetaxrefund offset program of the internal revenue service of theUnited States department of the treasury;

(27) Applying to contracts entered into by the departmentofmental retardation and developmental disabilities undersections5123.18, 5123.182, and 5123.199 of the Revised Code;

(28) Applying to payments made by the department of mentalhealth under aphysician recruitment program authorized by section5119.101 of the RevisedCode;

(29) Applying to contracts entered into with persons bythedirector of commerce for unclaimed funds collection andremittanceefforts as provided in division(F) of section 169.03 of theRevisedCode. The director shall keepan itemized accounting ofunclaimed funds collected by thosepersons and amounts paid tothem for their services.

(30) Applying to purchases made by a state institution ofhighereducationin accordance with the terms of a contractbetween the vendor and aninter-university purchasing groupcomprised of purchasing officers of stateinstitutions of highereducation;

(31) Applying to the department of job and familyservices'purchases of healthassistance services under the children'shealth insurance program partI provided for under section 5101.50of the Revised Code or the children'shealthinsurance programpart II provided for under section 5101.51of the Revised Code;

(32) Applying to payments by the attorney general from thereparations fund to hospitals and other emergency medicalfacilities for performing medical examinations to collect physicalevidence pursuant to section 2907.28 of the Revised Code;

(33) Applying to contracts with a contracting authority oradministrative receiver under division ~~(G)(2)~~(B) of section ~~5126.055~~ 5126.056of the Revised Code;

(34) Applying to reimbursements paid to the United States department of veterans affairs for pharmaceutical and patient supply purchases made on behalf of the Ohio veterans' home agency;

(35) Applying to agreements the department of job and family services enters into with terminal distributors of dangerous drugs under section 5110.12 of the Revised Code.

(E) Notwithstanding division (B)(1) of this section, thecumulative purchase threshold shall be seventy-five thousanddollars for the departments of mental retardation anddevelopmental disabilities, mental health, rehabilitation andcorrection, and youth services.

(F) When determining whether a state agency has reachedthecumulative purchase thresholds established in divisions(B)(1),(B)(2), and (E) of this section, all of the followingpurchases bysuch agency shall not be considered:

(1) Purchases made through competitive selection or withcontrolling board approval;

(3) For the purposes of the thresholds of divisions (B)(1)and (E) of this section only, leases of real estate.

(G) As used in this section,"competitive selection,""purchase,""supplies," and"services" have the same meanings asin section 125.01 of the Revised Code.

Sec. 131.02. (A) Whenever any amount is payable to the state,the officer, employee, or agent responsible for administering thelaw under which the amount is payable shall immediately proceedtocollect the amount or cause the amount to be collected andshallpay the amount into the state treasury or into the appropriate custodial fund in the manner setforthpursuant to section 113.08 of the Revised Code. If Except as otherwise provided in this division, if theamount isnot paid within forty-five days after payment is due,the officer,employee, or agent shall certify the amount due tothe attorneygeneral, in the form and manner prescribed by theattorneygeneral, and notify the director of budget andmanagement thereof. In the case of an amount payable by a student enrolled in a state institution of higher education, the amount shall be certified within the later of forty-five days after the amount is due or the tenth day after the beginning of the next academic semester, quarter, or other session following the session for which the payment is payable. The attorney general may assess the collection cost to the amount certified in such manner and amount as prescribed by the attorney general.

For the purposes of this section, a payment is due at the time provided in divisions (A)(1) to (9) of this section. If more than one division applies to a payment, the payment is due at the earliest of the applicable times.

(1) If a law, including an administrative rule, of this state prescribes the time a payment is required to be made or reported, when the payment is required by that law to be paid or reported.

(2) If the payment is for services rendered, when the rendering of the services is completed.

(4) In the case of a fine or penalty for which a law or administrative rule does not prescribe a time for payment, when the fine or penalty is first assessed.

(5) If the payment arises from a legal finding, judgment, or adjudication order, when the finding, judgment, or order is rendered or issued.

(6) If the payment arises from an overpayment of money by the state to another person, when the overpayment is discovered.

(7) The date on which the amount for which an individual is personally liable under section 5735.35, section 5739.33, or division (G) of section 5747.07 of the Revised Code is determined.

(9) Any other appropriate time determined by the officer, employee, or agent responsible for administering the law under which the amount is payable on the basis of statutory requirements or ordinary business processes of the state agency to which the payment is owed.

(B)(1) The attorney general shall give immediate notice bymailorotherwise to the party indebted of the nature and amountof theindebtedness.

(2) If the amount payable to this state arises from ataxlevied under Chapter 5733., 5739., 5741., or 5747. of theRevisedCode, the notice also shall specify all of the following:

(e) That the attorney general and tax commissioner,actingtogether, havethe authority, but are not required, tocompromisetheclaim and accept payment over a reasonabletime, if suchactions are in thebest interest of the state.

(D) Each claim shall bear interest, from the day on whichtheclaim became due, at the rate per annumrequired by section 5703.47 of the Revised Code.

(E) The attorney general and the chief officer of the agencyreporting a claim, acting together, may do any of thefollowing if such action is in the best interests of the state:

(2) Extend for a reasonable period the time for payment ofthe claim by agreeing to accept monthly or other periodicpayments. The agreement may require security for payment of theclaim.

(3) Add fees to recover the cost of processing checks or other draft instruments returned for insufficient funds and the cost of providing electronic payment options.

(F)(1) Except as provided in division (F)(2) of this section, if the attorney general finds, after investigation, that any claim due and owing to the state is uncollectible, the attorney general, with the consent of the chief officer of the agency reporting the claim, may do the following:

(a) Sell, convey, or otherwise transfer the claim to one or more private entities for collection;

(2) The attorney general shall cancel or cause to be cancelled an unsatisfied claim on the date that is forty years after the date the claim is certified.

(3) If information contained in a claim that is sold, conveyed, or transferred to a private entity pursuant to this section is confidential pursuant to federal law or a section of the Revised Code that implements a federal law governing confidentiality, such information remains subject to that law during and following the sale, conveyance, or transfer.

(1) "Final overdue claim" means a claim that has been certified to the attorney general under section 131.02 of the Revised Code, that has been final for at least one year, and for which no arrangements have been made for the payment thereof or, if such arrangements have been made, the person owing the claim has failed to comply with the terms of the arrangement for more than thirty days.

"Final overdue claim" includes collection costs incurred with respect to such a claim and assessed by the attorney general under division (A) of section 131.02 of the Revised Code, interest accreting to the claim under division (D) of that section, and fees added under division (E)(3) of that section.

(2) "Final" means a claim has been finalized under the law providing for the imposition or determination of the amount due, and any time provided for appeal of the amount, legality, or validity of the claim has expired without an appeal having been filed in the manner provided by law. "Final" includes, but is not limited to, a final determination of the tax commissioner for which the time for appeal has expired without a notice of appeal having been filed.

(B) If a claim is certified to the attorney general under section 131.02 of the Revised Code, at any time after the claim is a final overdue claim, the attorney general may sell or otherwise transfer the claim to any person. If the claim is to be sold, it may be sold by private negotiated sale or at public auction conducted by the attorney general or a designee, as is most likely, in the opinion of the attorney general, to yield the most favorable return on the sale. For the purposes of this division, a public auction includes an auction conducted electronically whereby bids are solicited and received via the internet and the solicitation is open to the public.

(D) Not less than sixty days before first offering a final overdue claim for sale, the attorney general shall provide written notice, by ordinary mail, to the person owing the claim at that person's last known mailing address. The notice shall state the following:

(2) The manner in which the person may contact the office of the attorney general to arrange terms for payment of the claim;

(3) That if the person does not contact the office of the attorney general within sixty days after the date the notice is issued and arrange terms for payment of the claim all of the following apply:

(a) The claim will be offered for sale to a private party for collection by that party by any legal means;

(b) The person is deemed to be denied any right to seek and obtain a refund of any amount from which the claim arises if the applicable law otherwise allows for such a refund;

(c) The person is deemed to waive any right the person may have to confidentiality of information regarding the claim to the extent confidentiality is provided under any other section of the Revised Code.

(E) Upon the sale or transfer of a final overdue claim under this section, the claim becomes the property of the purchaser or transferee, and may be sold or otherwise transferred by that person to any other person or otherwise disposed of. The owner of the claim is entitled to all proceeds from the collection of the claim. Purchasers or transferees of a final overdue claim are subject to any applicable laws governing collection of debts of the kind represented by the claim.

(F) Upon the sale or transfer of a final overdue claim under this section, no refund shall be issued or paid to the person owing the claim for any part of the amount from which the claim arises.

(G) Notwithstanding any other section of the Revised Code, the attorney general, solely for the purpose of effecting the sale or transfer of a final overdue claim under this section, may disclose information about the person owing the claim that otherwise would be confidential under a section of the Revised Code, and the person shall have no right of action against such disclosure to the extent such a right is available under that section.

(H) The authority granted under this section is supplemental to the authority granted under section 131.02 of the Revised Code.

Sec. 131.23. The various political subdivisions of thisstate may issue bonds, and any indebtedness created by suchissuance shall not be subject to the limitations or included inthe calculation of indebtedness prescribed by sections 133.05,133.06, 133.07, and 133.09 of the Revised Code, but such bondsmay be issued only under the following conditions:

(A) The subdivision desiring to issue such bonds shallobtain from the county auditor a certificate showing the totalamount of delinquent taxes due and unpayable to such subdivisionat the last semiannual tax settlement.

(B) The fiscal officer of that subdivision shall prepare astatement, from the books of the subdivision, verified by thefiscal officerunder oath, which shall contain the following facts of suchsubdivision:

(2) The aggregate amount of notes payable or outstandingaccounts of the subdivision, incurred prior to the commencementof the current fiscal year, which shall include all evidences ofindebtedness issued by the subdivision except notes issued inanticipation of bond issues and the indebtedness of anynontax-supported public utility;

(3) Except in the case of school districts, the aggregatecurrent year's requirement for disabilityfinancial assistance ~~and disability medical assistance~~ provided under Chapter 5115. of the RevisedCode that the subdivision is unable to finance except by theissue of bonds;

(4) The indebtedness outstanding through the issuance ofany bonds or notes pledged or obligated to be paid by anydelinquent taxes;

(6) The net amount of delinquent taxes unpledged to payany bonds, notes, or certificates, including delinquentassessments on improvements on which the bonds have been paid;

(C) The certificate and statement provided for indivisions (A) and (B) of this section shall be forwarded to thetax commissioner together with a request for authority to issuebonds of such subdivision in an amount not to exceed seventy percent of the net unobligated delinquent taxes and assessments dueand owing to such subdivision, as set forth in division (B)(6) ofthis section.

(D) No subdivision may issue bonds under this section inexcess of a sufficient amount to pay the indebtedness of thesubdivision as shown by division (B)(2) of this section and,except in the case of school districts, to provide funds fordisability financial assistance ~~and disability medical assistance~~, as shown bydivision (B)(3) of this section.

(E) The tax commissioner shall grant to such subdivisionauthority requested by such subdivision as restricted bydivisions (C) and (D) of this section and shall make a record ofthe certificate, statement, and grant in a record book devotedsolely to such recording and which shall be open to inspection bythe public.

(F) The commissioner shall immediately upon issuing theauthority provided in division (E) of this section notify theproper authority having charge of the retirement of bonds of suchsubdivision by forwarding a copy of such grant of authority andof the statement provided for in division (B) of this section.

(G) Upon receipt of authority, the subdivision shallproceed according to law to issue the amount of bonds authorizedby the commissioner, and authorized by the taxing authority,provided the taxing authority of that subdivision may byresolution submit to the electors of that subdivision thequestion of issuing such bonds. Such resolution shall make thedeclarations and statements required by section 133.18 of theRevised Code. The county auditor and taxing authority shallthereupon proceed as set forth in divisions (C) and (D) of suchsection. The election on the question of issuing such bondsshall be held under divisions (E), (F), and (G) of such section,except that publication of the notice of such election shall bemade on four separate days prior to such election in one or morenewspapers of general circulation in the subdivisions. Suchbonds may be exchanged at their face value with creditors of thesubdivision in liquidating the indebtedness described andenumerated in division (B)(2) of this section or may be sold asprovided in Chapter 133. of the Revised Code, and in either eventshall be uncontestable.

(H) The per cent of delinquent taxes and assessmentscollected for and to the credit of the subdivision after theexchange or sale of bonds as certified by the commissioner shallbe paid to the authority having charge of the sinking fund of thesubdivision, which money shall be placed in a separate fund forthe purpose of retiring the bonds so issued. The properauthority of the subdivisions shall provide for the levying of atax sufficient in amount to pay the debt charges on all suchbonds issued under this section.

(I) This section is for the sole purpose of assisting thevarious subdivisions in paying their unsecured indebtedness, andproviding funds for disability financial assistance ~~and disability medical assistance~~. The bonds issued under authorityof this section shall not beused for any other purpose and any exchange for other purposes,or the use of the money derived from the sale of such bonds bythe subdivision for any other purpose, is misapplication offunds.

(J) The bonds authorized by this section shall beredeemable or payable in not to exceed ten years from date ofissue and shall not be subject to or considered in calculatingthe net indebtedness of the subdivision. The budget commissionof the county in which the subdivision is located shall annuallyallocate such portion of the then delinquent levy due suchsubdivision which is unpledged for other purposes to the paymentof debt charges on the bonds issued under authority of thissection.

(K) The issue of bonds under this section shall begoverned by Chapter 133. of the Revised Code, respecting theterms used, forms, manner of sale, and redemption except asotherwise provided in this section.

The board of county commissioners of any county may issuebonds authorized by this section and distribute the proceeds ofsuch bond issues to any or all of the cities and townships ofsuch counties, according to their relative needs for disabilityfinancial assistance ~~and disability medical assistance~~ as determined by such county.

All sections of the Revised Code inconsistent with orprohibiting the exercise of the authority conferred by thissection are inoperative respecting bonds issued under thissection.

Sec. 133.08. (A) In addition to any power to issuesecurities under other provisions of the Revised Code for thepurposes, a county may issue revenue securities as authorized inthis section.

(B) A county may issue revenue securities to fund orrefund revenue securities previously issued, or for any purposesfor which it could issue self-supporting securities and, withoutlimitation, any of the following general purposes:

(1) For one or more established sewer districts, any ofthe purposes provided in divisions (C)(2)(a) and (b) of section133.07 of the Revised Code;

(2) Hospital facilities as defined in division (E) ofsection 140.01 of the Revised Code;

(3) Facilities described in division (C)(10) of section133.07 of the Revised Code;

(4) Off-street parking facilities pursuant to section307.02 of the Revised Code.

(C) The county shall establish rates or charges for theuse, availability, or rental of the facilities to which thefinancing relates, being the improvement, enterprise, system,project, or categories of improvements or the operation orfunction that the facilities serve, which rates or charges shallbe designed to provide revenues to the county sufficient to paythe costs of all current expenses of the facilities payable bythe county and to pay the debt charges on the securities and toestablish and maintain any contractually required special fundsrelating to the securities or the facilities.

(D) Revenue securities issued under this section shall notbe general obligations of the county. Revenue securities issuedunder this section shall be secured only by a pledge of and lienupon the revenues of the county, derived from its ownership oroperation of the facilities, including those rates or charges orrents and any interest subsidies or debt charges, grants, orother payments by federal or state agencies available therefor,and the covenants of the county to maintain sufficient rentals,rates, and charges to produce revenues sufficient to pay allcurrent expenses of the facilities payable by the county and topay the debt charges on the securities and to establish andmaintain any contractually required special funds relating to thesecurities or the facilities, and, if the securities areanticipatory securities, to issue the revenue securities inanticipation of the issuance of which the revenue securities areissued. Revenue securities may also be secured by a pledge ofand lien on the proceeds of any securities issued to fund orrefund those revenue securities.

(E) The county officers authorized by the county taxingauthority shall execute the necessary documents, including butnot limited to trust agreements and leases, to provide for thepledge, protection, and disposition of the pledged revenues fromwhich debt charges and any special fund deposits are to be paid.

(F) As long as any of these revenue securities, in eitheroriginal or refunded form, remain outstanding, except asotherwise provided in those documents, all parts of thefacilities the revenues from which are pledged, shall remainunder the control of the county taxing authority, whether anyparts of the facilities are leased to or operated by others orare in or thereafter come within the boundaries of any municipalcorporation, and the facilities shall remain subject to the powerand duty of the taxing authority to fix and collect rates orcharges or rents for the use of facilities.

(G) The authority to issue securities of the county underthis section for permanent improvements described in division(B)(2) of this section or division (C)(2)(d) of section 133.07 ofthe Revised Code may separately and independently be exercised bya board of county hospital trustees established under section339.02 of the Revised Code for those permanent improvements andrelated operations under the control of that board.

(H) Sections 9.98 to 9.983 of the Revised Code apply to securities issued under this section, notwithstanding any other provision in this chapter.

(1) "Anticipation notes" means notes issued inanticipation of the sales tax supported bonds authorized by thissection;

(2) "Authorizing proceedings" means theresolution, legislation, trust agreement, certification, andother agreements, instruments, and documents, as amended andsupplemented, authorizing, or providing for the security or saleor award of, sales tax supported bonds, and includes theprovisions set forth or incorporated in those bonds andproceedings;

(3) "County sales tax" means any sales tax levied by thetaxing authority of a county pursuant to section 5739.021 or5739.026 of the RevisedCode, and any tax levied bythat taxing authority upon storage, use, or consumption undersection 5741.021 or 5741.023 of theRevisedCode. However, "county salestax" does not include a sales tax subject to referendum or asales tax that was adopted as an emergency measure and issubject to initiative petition under section 5739.022 of theRevisedCode.

(4) "Sales tax supported bonds" means the salestax supported bonds authorized by this section, includinganticipation notes;

(5) "Refunding bonds" means sales tax supportedbonds issued to provide for the refunding of the sales taxsupported bonds referred to in this section as refundedobligations.

(B) The taxingauthority of a county which has levied a county sales tax forthe purpose of providing additional general revenues of thecounty pursuant to Chapter5739. of the RevisedCode may anticipate thereceipts of such tax and issue sales tax supported bonds of thecounty in the principal amount necessary to pay the costs offinancing any permanent improvement as defined in division(CC) of section 133.01 of theRevisedCode, or to refund any refundedobligations, provided that the taxing authority certifies thatthe annual debt charges on the sales tax supported bonds, or onthe sales tax supported bonds being anticipated by anticipationnotes, do not exceed the estimated annual county sales tax. Themaximum aggregate amount of sales tax supported bonds that maybe outstanding at any time in accordance with their terms shallnot exceed an amount which requires or is estimated to requirepayments from sales tax receipts of debt charges on the salestax supported bonds, or, in the case of anticipation notes,projected debt charges on the sales tax supported bondsanticipated, in any calendar year in an amount exceeding thecounty sales tax in anticipation of which the bonds oranticipation notes are issued as estimated by the fiscal officerbased on general sales tax receipts averaged for the prior twocalendar years prior to the year in which the sales taxsupported bonds are issued, and annualized for any increase inthe county sales tax which may have been levied in part duringsuch period or levied after such period. A taxing authority mayat any time issue renewal anticipation notes, issue sales taxsupported bonds to pay renewal anticipation notes, and, if itconsiders refunding expedient, issue refunding sales taxsupported bonds whether the refunded obligations have or havenot matured. The refunding sales tax supported bonds shall besold and the proceeds needed for such purpose applied in themanner provided in the authorizing proceedings of the taxingauthority. The maximum maturity of sales tax supported bondsshall be calculated by the fiscal officer in accordance withsection 133.20 of the RevisedCode, and such calculationshall be filed with the taxing authority of the county prior topassage of a bond authorizing resolution. If the county salestax pledged to the payment of the sales tax supported bonds hasa stated expiration date, the final principal maturity date ofthe sales tax supported bonds shall not extend beyond the finalyear of collection of the county sales tax pledged to thepayment of the sales tax supported bonds.

(C) Everyissue of sales tax supported bonds outstanding in accordancewith their terms shall be payable out of the sales tax receiptsreceived by the county or proceeds of sales tax supported bonds,renewal anticipation notes, or refunding sales tax supportedbonds which may be pledged for such payment in the authorizingproceedings. The pledge shall be valid and binding from thetime the pledge is made, and the county sales tax receipts andproceeds so pledged and thereafter received by the county shallimmediately be subject to the lien of that pledge without anyphysical delivery of the county sales tax receipts or proceedsor further act. The lien of any pledge is valid and binding asagainst all parties having claims of any kind in tort, contract,or otherwise against the county, whether or not such partieshave notice of the lien. Neither the resolution nor any trustagreement by which a pledge is created or further evidenced needbe filed or recorded except in the records of the taxingauthority.

(D) Sales taxsupported bonds issued under this section do not constitute adebt, or a pledge of the faith and credit, of the state, thecounty, or any other political subdivision of the state, and theholders or owners of the notes have no right to have taxeslevied by the general assembly or by the taxing authority of anypolitical subdivision of the state, including the taxingauthority of the county, for the payment of debt charges. Unless paid from other sources, sales tax supported bonds arepayable from the sales tax receipts pledged for their payment asauthorized by this section. All sales tax supported bonds shallcontain on their face a statement to the effect that the salestax supported bonds, as to debt charges, are not debts orobligations of the state and are not debts of any politicalsubdivision of the state, but, unless paid from other sources,are payable from the sales tax receipts pledged for theirpayment. The utilization and pledge of the sales tax receiptsand proceeds of sales tax supported bonds, renewal anticipationnotes, or refunding sales tax supported bonds for the payment ofdebt charges is determined by the general assembly to create aspecial obligation which is not a bonded indebtedness subject toSection 11 ofArticleXII,OhioConstitution.

(E) The salestax supported bonds shall bear such date or dates, shall beexecuted in the manner, and shall mature at such time or times,in the case of any anticipation notes not exceeding ten yearsfrom the date of issue of the original anticipation notes and inthe case of any sales tax supported bonds or of any refundingsales tax supported bonds, not exceeding the maximum maturitycertified to the taxing authority pursuant to division(B) of this section, all as theauthorizing proceedings may provide. The sales tax supportedbonds shall bear interest at such rates, or at variable rate orrates changing from time to time, in accordance with provisionsin the authorizing proceedings, be in suchdenominations and form, either coupon or registered, carry suchregistration privileges, be payable in such medium of paymentand at such place or places, and be subject to such terms ofredemption, as the taxing authority may authorize or provide. The sales tax supported bonds may be sold at public or privatesale, and at, or at not less than, the price or prices as thetaxing authority determines. If any officer whose signature ora facsimile of whose signature appears on any sales taxsupported bonds or coupons ceases to be such officer beforedelivery of the sales tax supported bonds or anticipation notes,the signature or facsimile shall nevertheless be sufficient forall purposes as if that officer had remained in office untildelivery of the sales tax supported bonds. Whether or not thesales tax supported bonds are of such form and character as tobe negotiable instruments underTitleXIII of theRevisedCode, the sales tax supportedbonds shall have all the qualities and incidents of negotiableinstruments, subject only to any provisions for registration. Neither the members of the board of the taxing authority nor anyperson executing the sales tax supported bonds shall be liablepersonally on the sales tax supported bonds or be subject to anypersonal liability or accountability by reason of theirissuance.

(F) Notwithstandingany other provision of this section, sections 9.98 to 9.983, 133.02, 133.70, and 5709.76, and division(A) of section 133.03 of theRevisedCode apply to the sales taxsupported bonds. Sales tax supported bonds issued under thissection need not comply with any other law applicable to notesor bonds but the authorizing proceedings may provide thatdivisions (B) to(E) of section 133.25 of theRevisedCode apply to the sales taxsupported bonds or anticipation notes.

(G) Any authorized proceedings may contain provisions, subject to anyagreements with holders as may then exist, which shall be a partof the contract with the holders, as to the pledging of any orall of the county's anticipated sales tax receipts to secure thepayment of the sales tax supported bonds; the use anddisposition of the sales tax receipts of the county; thecrediting of the proceeds of the sale of sales tax supportedbonds to and among the funds referred to or provided for in theauthorizing proceedings; limitations on the purpose to which theproceeds of the sales tax supported bonds may be applied and thepledging of portions of such proceeds to secure the payment ofthe sales tax supported bonds or of anticipation notes; theagreement of the county to do all things necessary for theauthorization, issuance, and sale of those notes anticipated insuch amounts as may be necessary for the timely payment of debtcharges on any anticipation notes; limitations on the issuanceof additional sales tax supported bonds; the terms upon whichadditional sales tax supported bonds may be issued and secured;the refunding of refunded obligations; the procedure by whichthe terms of any contract with holders may be amended, and themanner in which any required consent to amend may be given;securing any sales tax supported bonds by a trust agreement orother agreement; and any other matters, of like or differentcharacter, that in any way affect the security or protection ofthe sales tax supported bonds or anticipation notes.

(H) The taxingauthority of a county may not repeal, rescind, or reduce anyportion of a county sales tax pledged to the payment of debtcharges on sales tax supported bonds issued by the county whilesuch sales tax supported bonds remain outstanding, and noportion of a county sales tax pledged to the payment of debtcharges on sales tax supported bonds shall be subject to repealor reduction by the electorate of the county or by the taxingauthority of the county while such sales tax supported bonds areoutstanding.

Sec. 133.09. (A) Unless it is a township that hasadopted a limited home rule government under Chapter 504. of theRevised Code, a township shall not incur netindebtedness that exceeds anamount equal to five per cent of its tax valuation and, except asspecifically authorized by section 505.262 of the Revised Code or other laws,shall not incur any net indebtedness unless authorized by vote of theelectors.

(B) A township thathas adopted a limited home rule government underChapter 504. of the Revised Code shall not incur netindebtedness that exceeds an amount equal to ten and one-halfper cent of its tax valuation, or incur without a vote of theelectors net indebtedness that exceeds an amount equal to fiveand one-half per cent of that tax valuation. In calculating thenet indebtedness of a township that has adopted a limited homerule government, none of the following securities shall beconsidered:

(2) Securities issued for the purpose of purchasing,constructing, improving, or extending water or sanitary orsurface and storm water sewerage systems or facilities, or acombination of those systems or facilities, to the extent thatan agreement entered into with another subdivision requires theother subdivision to pay to the township amounts equivalent todebt charges on the securities;

(4) Voted securities issued for the purposes ofredevelopment to the extent that their principal amount does notexceed an amount equal to two per cent of the tax valuation ofthe township;

(5) Securities issued for the purpose of acquiring orconstructing roads, highways, bridges, or viaducts, or for thepurpose of acquiring or making other highway permanentimprovements, to the extent that the resolution of the board of townshiptrustees authorizing the issuance of the securities includes a covenantto appropriate from money distributed to the township underChapter 4501., 4503.,4504., or 5735. of the Revised Code a sufficient amount tocover debt charges on and financing costs relating to thesecurities as they become due;

(6) Securities issued for energy conservation measuresunder section 505.264 of the Revised Code.

(C) In calculating the net indebtedness of anytownship, no obligation incurredunder division (B) of section 513.17 or under section 505.261, 505.264,505.265, 505.267, or 505.37 of the Revised Code, or in connection with a project undertaken pursuant to Section 515.03 of H.B. 66 of the 126th General Assembly,shall be considered.

(A)"Hospital agency" means any public hospital agency oranynonprofit hospital agency.

(B)"Public hospital agency" means any county, board ofcounty hospital trustees established pursuant to section 339.02ofthe Revised Code, county hospital commission establishedpursuantto section 339.14 of the Revised Code, municipalcorporation,newcommunity authority organized under Chapter 349. of the RevisedCode, joint township hospital district, state or municipaluniversity orcollege operating or authorized to operate ahospital facility, or the state.

(C)"Nonprofit hospital agency" means a corporation orassociation not for profit, no part of the net earnings of whichinures or may lawfully inure to the benefit of any privateshareholder or individual, that has authority to own or operate ahospital facility or provides or is to provide services to one ormore other hospital agencies.

(D)"Governing body" means, in the case of a county, theboard of county commissioners or other legislative body; in thecase of a board of county hospital trustees, the board; in thecase of a county hospital commission, the commission; in the caseof a municipal corporation, the council or other legislativeauthority;in the case of a new community authority, its board oftrustees; in the case of a joint township hospital district, thejoint township district hospital board; in the case of a state ormunicipal university or college, its board of trustees or boardofdirectors; in the case of a nonprofit hospital agency, theboardof trustees or other body having general managementof theagency; and,in the case of the state, the director ofdevelopmentor the Ohiohigher educational facility commission.

(E)"Hospital facilities" means buildings, structures andother improvements, additions thereto and extensions thereof,furnishings, equipment, and real estate and interests in realestate, used or to be used for or in connection with one or morehospitals, emergency, intensive, intermediate, extended,long-term, or self-care facilities, diagnostic and treatment andout-patient facilities, facilities related to programs for homehealth services, clinics, laboratories, public health centers,research facilities, and rehabilitation facilities, for orpertaining to diagnosis, treatment, care, or rehabilitation ofsick, ill, injured, infirm, impaired, disabled, or handicappedpersons, or the prevention, detection, and control of disease,andalso includes education, training, and food servicefacilities forhealth professions personnel, housing facilitiesfor suchpersonnel and their families, and parking and servicefacilitiesin connection with any of the foregoing; and includesany one,part of, or any combination of the foregoing; andfurther includessite improvements, utilities, machinery,facilities, furnishings,and any separate or connected buildings,structures, improvements,sites, utilities, facilities, orequipment to be used in, or inconnection with the operation ormaintenance of, or supplementingor otherwise related to theservices or facilities to be providedby, any one or more of suchhospital facilities.

(F)"Costs of hospital facilities" means the costs ofacquiring hospital facilities or interests in hospital facilities, including membership interests in nonprofit hospital agencies, costs of constructing hospital facilities, costs of improving one or more hospital facilities, including reconstructing,rehabilitating, remodeling, renovating, and enlarging, costs ofequipping and furnishing such facilities, and all financing costspertaining thereto, including, without limitation thereto, costsof engineering, architectural, and other professional services,designs, plans, specifications and surveys, and estimates ofcost,costs of tests and inspections, the costs of any indemnityorsurety bonds and premiums on insurance, all related direct orallocable administrative expenses pertaining thereto, fees andexpenses of trustees, depositories, and paying agents for theobligations, cost of issuance of the obligations and financingcharges and fees and expenses of financial advisors, attorneys,accountants, consultants and rating services in connectiontherewith, capitalized interest on the obligations, amountsnecessary to establish reserves as required by the bondproceedings, the reimbursement of all moneys advanced or appliedby the hospital agency or others or borrowed from others for thepayment of any item or items of costs of such facilities, and allother expenses necessary or incident to planning or determiningfeasibility or practicability with respect to such facilities,andsuch other expenses as may be necessary or incident to theacquisition, construction, reconstruction, rehabilitation,remodeling, renovation, enlargement, improvement, equipment, andfurnishing of such facilities, the financing thereof, and theplacing of the same in use and operation, including any one, partof, or combination of such classes of costs and expenses, and means the costs of refinancing obligations issued by, or reimbursement of money advanced by, nonprofit hospital agencies or others the proceeds of which were used for the payment of costs of hospital facilities, if the governing body of the public hospital agency determines that the refinancing or reimbursement advances the purposes of this chapter, whether or not the refinancing or reimbursement is in conjunction with the acquisition or construction of additional hospital facilities.

(G)"Hospital receipts" means all moneys received by or onbehalf of a hospital agency from or in connection with theownership, operation, acquisition, construction, improvement,equipping, or financing of any hospital facilities, including,without limitation thereto, any rentals and other moneys receivedfrom the lease, sale, or other disposition of hospitalfacilities,and any gifts, grants, interest subsidies, or othermoneysreceived under any federal program for assistance infinancing thecosts of hospital facilities, and any other gifts,grants, anddonations, and receipts therefrom, available forfinancing thecosts of hospital facilities.

(H)"Obligations" means bonds, notes, or other evidencesofindebtedness or obligation, including interest couponspertainingthereto, issued or issuable by a public hospitalagency to paycosts of hospital facilities.

(I)"Bond service charges" means principal, interest, andcall premium, if any, required to be paid on obligations.

(J)"Bond proceedings" means one or more ordinances,resolutions, trust agreements, indentures, and other agreementsordocuments, and amendments and supplements to the foregoing, oranycombination thereof, authorizing or providing for the terms, including any variable interest rates, and conditions applicableto, or providing for the security of, obligations and theprovisions contained in such obligations.

(K)"Nursing home" has the same meaning as in division(A)(1)of section 5701.13 of the Revised Code.

(L)"Residential care facility" has the same meaning as indivision (A)(2)of section 5701.13 of the Revised Code.

(M)"Adult care facility" has the same meaning as indivision(A)(3) of section 5701.13 of the Revised Code.

(N)"Independent living facility" means any self-carefacility or other housing facility designed or used as aresidencefor elderly persons. An"independent living facility"does notinclude a residential facility, or that part of aresidentialfacility, that is any of the following:

~~(6)~~ A residential facility for the mentally ill licensedbythe department of mental health under section 5119.22 of theRevised Code;

~~(7)~~(6) A facility licensed to provide methadone treatmentundersection 3793.11 of the Revised Code;

~~(8)~~(7) A facility certified as an alcohol and drug addictionprogram undersection 3793.06 of the Revised Code;

~~(9)~~(8) A residential facility licensed under section 5123.19ofthe Revised Code or a facility providing services under acontractwith the department of mental retardation anddevelopmentaldisabilities under section 5123.18 of the RevisedCode;

~~(10)~~(9) A residential facility used as part of a hospital toprovide housing for staff of the hospital or students pursuing acourse of study at the hospital.

Sec. 141.011. Beginning in calendar year 2001, the annualsalaries of the elective officers of the state shall be asfollowsrather than as prescribed by divisions (A) to (F) of section141.01 of the Revised Code:

(A)(1) In calendar year 2001 the annual salary of thegovernor shall be one hundred twenty-six thousand four hundredninety-seven dollars.

(2) In calendar years 2002 through 2006 the annual salaryof the governorshall be one hundred thirtythousand two hundredninety-two dollars.

(3) In calendar year 2007 the annual salary of the governorshallbethe annual salary in 2006 increased by each of thefollowing percentagesin succession:

(a) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2001, toSeptember 30, 2002, rounded to thenearest one-tenth of one percent;

(b) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2002, toSeptember 30, 2003, rounded to thenearest one-tenth of one percent;

(c) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2003, toSeptember 30, 2004, rounded to thenearest one-tenth of one percent;

(d) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2004, toSeptember 30, 2005, rounded to thenearest one-tenth of one percent;

(e) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2005, toSeptember 30, 2006, rounded to thenearest one-tenth of one percent.

(4) In calendar year 2008 and thereafter, the annual salaryofthe governor shall be the annual salary in 2007 increased bythe lesserof the following:

(b) The percentage increase, if any, in the consumer priceindexfrom October 1, 2006, to September 30, 2007, rounded to thenearest one-tenth of one per cent.

(B)(1) In calendar year 2001 the annual salary of thelieutenantgovernorshall be sixty-six thousand threehundred sixdollars.

(2) In calendar years 2002 through 2006 the annual salaryof thelieutenant governor shall be sixty-eight thousand twohundred ninety-five dollars.

(3) In calendaryear 2007 the annual salary of the lieutenantgovernorshall be the annual salary in 2006 increased by each ofthe followingpercentages in succession:

(a) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2001, toSeptember 30, 2002, rounded to thenearest one-tenth of one percent;

(b) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2002, toSeptember 30, 2003, rounded to thenearest one-tenth of one percent;

(c) The lesser of three per cent or the percentageincrease,ifany, in the consumer price index from October 1, 2003, toSeptember 30, 2004, rounded to thenearest one-tenth of one percent;

(d) The lesser of three per cent or the percentageincrease, ifany, in the consumer price index from October 1,2004, toSeptember 30, 2005, rounded to thenearest one-tenth ofone per cent;

(e) The lesser of three per cent or the percentage increase,ifany, in the consumer price index from October 1, 2005, toSeptember 30, 2006, rounded to thenearest one-tenth of one percent.

(4) In calendar year 2008 and thereafter, the annual salaryofthe lieutenant governor shall be the annual salary in 2007increased by the lesser of the following:

(b) The percentage increase, if any, in the consumer priceindexfrom October 1, 2006 to September 30, 2007, rounded to thenearest one-tenth of one per cent.

If the governor appoints the lieutenant governor as anadministrativedepartment head ~~or as the director of the office ofcriminal justiceservices under section 108.05 of the RevisedCode~~, the lieutenant governormay acceptthe salary for thatoffice while serving as its head in lieu of the salary fortheoffice of lieutenant governor.

(C)(1) In calendar year 2001 the annual salary of thesecretary ofstate,auditor of state, treasurer of state, andattorney general shall be ninety-three thousand four hundredforty-sevendollars.

(2) In calendar year 2002 theannualsalary of thesecretary of state, auditor of state, treasurer of state, andattorney generalshall be ninety-six thousand twohundred fiftydollars.

(3) In each calendar year from 2003 through 2008, the annualsalary of the secretary of state, auditor of state, treasurer ofstate, and attorney general shall be increased bythe lesser ofthe following:

(b) The percentage increase, if any, in the consumer priceindexover the twelve-month period that ends on the thirtieth dayofSeptember of the immediately preceding year, rounded to thenearest one-tenth of one per cent.

(D) Upon the death of an elected executive officer of thestate listed in divisions (A) to (F) of section 141.01 of theRevised Code during that person's term of office, an amount shallbe paid in accordance with section 2113.04 of the Revised Code, orto thatperson's estate. The amount shall equal the amount of thesalary that theofficer would have received during the remainderof the officer's unexpiredterm or an amount equal to the salaryof that person's office for two years,whichever is less.

(E) As used in this section, "consumer price index" has thesamemeaning as in section 101.27 of the Revised Code.

Sec. 141.04. (A) The annual salaries of the chief justiceof the supreme court and of the justices and judges named in thissection payable from the state treasury are as follows, rounded tothe nearest fifty dollars:

(1) For the chief justice of the supreme court, thefollowing amounts effective in the following years:

(a) Beginning January 1, 2000, one hundred twenty-fourthousand nine hundred dollars;

(b) Beginning January 1, 2001, one hundred twenty-eightthousand six hundred fifty dollars;

(2) For the justices of the supreme court, the followingamounts effective in the following years:

(a) Beginning January 1, 2000, one hundred seventeenthousand two hundred fifty dollars;

(b) Beginning January 1, 2001, one hundred twentythousand seven hundred fifty dollars;

(3) For the judges of the courts of appeals, thefollowingamounts effective in the following years:

(a) Beginning January 1, 2000, one hundred ninethousand two hundred fifty dollars;

(b) Beginning January 1, 2001, one hundred twelvethousand five hundred fifty dollars;

(4) For the judges of the courts of common pleas, the following amountseffective in the following years:

(a) Beginning January 1, 2000, one hundred thousand fivehundred dollars, reduced by an amount equal to the annual compensation paid tothat judge from the county treasury pursuant to section 141.05 of theRevised Code;

(b) Beginning January 1, 2001, one hundredthree thousand five hundred dollars, reduced by an amount equal to the annualcompensation paid to that judge from the county treasurypursuant to section 141.05 of the Revised Code;

(c) After 2001, the aggregate annual salary amountdeterminedunder division (E)(2) of this section reduced by an amount equalto the annual compensation paid to that judge from the county treasurypursuant to section 141.05of the Revised Code.

(5) For the full-time judges of a municipal court or thepart-time judges of a municipal court of a territory having apopulation of more than fifty thousand, the following amountseffective in the following years, which amounts shall be inaddition to all amounts received pursuant to divisions (B)(1)(a)and (2) of section 1901.11 of the Revised Code frommunicipal corporations and counties:

(6) For judges of a municipal court designated as part-time judges bysection 1901.08 of the Revised Code, other than part-time judges to whomdivision(A)(5) of this section applies, and for judges of a county court, thefollowing amounts effective in the following years, which amounts shall be inaddition to any amounts received pursuant to division(A) of section 1901.11 of the Revised Code from municipal corporations andcountiesor pursuant to division (A) of section 1907.16 of the Revised Codefrom counties:

(B) Except as provided in section 1901.121 of the RevisedCode, except as otherwise provided in this division, andexcept for the compensation to which the judgesdescribed in division (A)(5) of this section are entitledpursuant to divisions (B)(1)(a) and (2) ofsection 1901.11of the Revised Code, the annual salary of the chief justice of the supremecourt and of each justice or judge listed indivision (A) of this section shall be paid in equal monthlyinstallments from the state treasury. If the chief justice of thesupreme courtor any justice or judge listed in division (A)(2),(3), or (4) of thissection delivers a written request to be paid biweekly to the administrativedirector of the supreme court prior to the first day of Januaryof any year, the annual salary of the chief justice or thejustice or judge that is listed indivision (A)(2), (3), or (4) of this section shallbe paid, during the yearimmediately following the year in which the request is deliveredto the administrative director of the supreme court, biweekly from thestate treasury.

(C) Upon the death of the chief justice or a justice ofthe supreme court during that person's term of office, an amount shall be paidin accordance with section 2113.04 of the Revised Code, or to that person'sestate. The amount shall equal the amount of the salary that the chiefjustice or justice would have received during theremainder of the unexpired term or an amount equal to the salary ofoffice for two years, whichever is less.

(D) Neither the chief justice of the supreme court nor any justice orjudge of the supreme court, the court of appeals, the court ofcommon pleas, or the probate court shall hold any other office oftrust or profit under the authority of this state or the UnitedStates.

(E)(1) Each calendar year from 2002through2008, the annual salaries of the chief justice of the supreme court and of thejustices and judges named in divisions (A)(2) and (3) of this sectionshall be increased by an amount equal to the adjustment percentage for thatyear multiplied by the compensation paid the preceding year pursuant todivision (A)(1), (2), or (3) of this section.

(2) Each calendar year from 2002 through 2008, the aggregateannual salary payable under division (A)(4) of this section to thejudges named in that division shall be increased by an amountequal to the adjustment percentage for that year multiplied by theaggregate compensation paid the preceding year pursuant todivision (A)(4) of this section and section 141.05 of theRevised Code.

(3) Each calendar year from 2002 through 2008, the salary payablefrom the state treasury under division (A)(5) of this section tothe judges named in that division shall be increased by an amount equal to theadjustment percentage for that yearmultiplied by the aggregate compensation paid the preceding year pursuantto division (A)(5) of this section and division (B)(1)(a)of section 1901.11 of the Revised Code.

(4) Each calendar year from 2002 through 2008, the salary payablefrom the state treasury under division (A)(6) of this section tothe judges named in that division shall be increased by an amount equal to theadjustment percentage for that yearmultiplied by the aggregate compensation paid the preceding year pursuantto division (A)(6) of this section and division (A) ofsection 1901.11 of the Revised Code from municipalcorporationsand counties or division (A) of section 1907.16 of theRevisedCode from counties.

(F) In addition to the salaries payable pursuant to this section, the chief justice of the supreme court and the justices of the supreme court shall be entitled to a vehicle allowance of five hundred dollars per month, payable from the state treasury. The allowance shall be increased on the first day of January of each odd numbered year by an amount equal to the percentage increase, if any, in the consumer price index for the immediately preceding twenty-four month period for which information is available.

(b) The percentage increase, if any, in the consumer priceindexover the twelve-month period that ends on the thirtieth day ofSeptember of the immediately preceding year, rounded to thenearest one-tenth of one per cent.

(2) "Consumer price index" has the same meaning as in section101.27 of the Revised Code.

(3) "Salary" does not include anyportion of the cost, premium, or charge for health, medical,hospital, dental, or surgical benefits, or any combination ofthose benefits, covering the chief justice of the supreme courtor a justice or judge named in this section and paid on the chiefjustice's or the justice's or judge's behalf by a governmentalentity.

(1) Any person holding an office, not elective, under thestate or anycounty, township, municipal corporation, parkdistrict, conservancy district,sanitary district, healthdistrict, metropolitan housing authority, stateretirement board,Ohio historical society, public library, county law library,unioncemetery, joint hospital, institutional commissary, stateuniversity, orboard, bureau, commission, council, committee,authority, or administrativebody as the same are, or have been,created by action of the general assemblyor by the legislativeauthority of any of the units of local government namedindivision (A)(1) of this section, or employed andpaid in whole orin part by the state or anyof the authorities named in division(A)(1) of thissection in any capacity not covered bysection742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.

(2) A person who is a member of the public employeesretirement systemand whocontinues to perform the same or similarduties under the direction of acontractor who has contracted totake over what before the date of thecontract was a publiclyoperated function. The governmental unit with whichthe contracthas been made shall be deemed the employer for the purposes ofadministering this chapter.

(3) Any person who is an employee of a public employer,notwithstanding thatthe person's compensation for that employmentis derived from funds of aperson or entity other than theemployer. Credit for such service shall beincluded as totalservice credit, provided that the employee makes thepaymentsrequired by this chapter, and the employer makes the paymentsrequired by sections 145.48 and 145.51 of the Revised Code.

(4) A person who elects in accordance with section 145.015of the RevisedCode to remain a contributing member of the publicemployees retirementsystem.

In all cases of doubt, the public employees retirement boardshall determinewhether any person is a public employee, and itsdecision is final.

(B) "Member" means any public employee, other than a publicemployee excludedor exempted from membership in the retirementsystem by section 145.03,145.031, 145.032, 145.033, 145.034,145.035, or 145.38 of the Revised Code. "Member" includes a PERSretirant who becomes a member under division(C) of section 145.38of the Revised Code. "Member" also includes adisability benefitrecipient.

(C) "Head of the department" means the elective orappointive head of theseveral executive, judicial, andadministrative departments, institutions,boards, and commissionsof the state and local government as the same arecreated anddefined by the laws of this state or, in case of a chartergovernment, by that charter.

(D) "Employer" or "public employer" means the state or anycounty, township,municipal corporation, park district,conservancy district, sanitary district,health district,metropolitan housing authority, state retirement board, Ohiohistorical society, public library, county law library, unioncemetery, jointhospital, institutional commissary, state medicalcollege, state university,or board, bureau, commission, council,committee, authority, or administrativebody as the same are, orhave been, created by action of the general assemblyor by thelegislative authority of any of the units of local governmentnamedin this division not covered by section 742.01, 3307.01,3309.01, or 5505.01 of the RevisedCode. In addition, "employer"means the employer of any public employee.

(E) "Prior service" means all service as a public employeerendered beforeJanuary 1, 1935, and all service as an employee ofany employer who comeswithin the state teachers retirement systemor of the school employeesretirement system or of any otherretirement system established under the lawsof this staterendered prior to January 1, 1935, provided that if the employeeclaiming the service was employed in any capacity covered by thatother systemafter that other system was established, credit forthe service may be allowedby the public employees retirementsystem only when the employee has madepayment, to be computed onthe salary earned from the date of appointment tothe datemembership was established in the public employees retirementsystem,at the rate in effect at the time of payment, and theemployer has madepayment of the corresponding full liability asprovided by section 145.44 ofthe Revised Code. "Prior service"also means all service credited for activeduty with the armedforces of the United States as provided in section 145.30of theRevised Code.

If an employee who has been granted prior service credit bythe publicemployees retirement system for service rendered priorto January 1, 1935, asan employee of a board of educationestablishes, before retirement, one yearor more of contributingservice in the state teachers retirement system orschoolemployees retirement system, then the prior service ceases to betheliability of this system.

If the board determines that a position of any member in anycalendar yearprior to January 1, 1935, was a part-time position,the board shall determinewhat fractional part of a year's creditshall be allowed by the followingformula:

(1) When the member has been either elected or appointed toan office theterm of which was two or more years and for which anannual salary isestablished, the fractional part of the year'scredit shall be computed asfollows:

First, when the member's annual salary is one thousanddollars or less, theservice credit for each such calendar yearshall be forty per cent of a year.

Second, for each full one hundred dollars of annual salaryabove one thousanddollars, the member's service credit for eachsuch calendar year shall beincreased by two and one-half percent.

(2) When the member is paid on a per diem basis, the servicecredit for anysingle year of the service shall be determined byusing the number of days ofservice for which the compensation wasreceived in any such year as anumerator and using two hundredfifty days as a denominator.

(3) When the member is paid on an hourly basis, the servicecredit for anysingle year of the service shall be determined byusing the number of hours ofservice for which the compensationwas received in any such year as anumerator and using twothousand hours as a denominator.

(F) "Contributor" means any person who has an account in theemployees'savings fund created by section 145.23 of the RevisedCode. When used inthe sections listed in division (B) of section145.82 of theRevised Code, "contributor" includes any personparticipating in aPERS defined contribution plan.

(G) "Beneficiary" or "beneficiaries" means the estate or aperson or personswho, as the result of the death of a member,contributor, or retirant, qualifyfor or are receiving some rightor benefit under this chapter.

(H)(1) "Total service credit," except as provided in section145.37 of theRevised Code, means all service credited to a memberof the retirement systemsince last becoming a member, includingrestored service credit as provided bysection 145.31 of theRevised Code; credit purchased under sections 145.293and 145.299of the Revised Code; all the member's prior service credit; allthe member's military service credit computed as provided in thischapter; allservice credit established pursuant to section145.297 of the Revised Code;and any other service credited underthis chapter. In addition, "totalservice credit" includes anyperiod, not in excess of three years, duringwhich a member wasout of service and receiving benefits under Chapters 4121.and4123. of the Revised Code. For the exclusive purpose ofsatisfying theservice credit requirement and of determiningeligibility for benefits undersections 145.32, 145.33, 145.331,145.35, 145.36, and 145.361 of the RevisedCode, "five or moreyears of total service credit" means sixty or morecalendar monthsof contributing service in this system.

(2) "One and one-half years of contributing servicecredit,"as used in division (B) of section 145.45 of the RevisedCode,also means eighteen or more calendar months of employmentby amunicipal corporation that formerly operated its ownretirementplan for its employees or a part of its employees,provided thatall employees of that municipal retirement plan who haveeighteenor more months of such employment, uponestablishing membership inthe public employees retirementsystem, shall make a payment ofthe contributions they would have paidhad they been members ofthis system for the eighteen months ofemployment preceding thedate membership was established. Whenthat payment has been madeby all such employeemembers, acorresponding payment shall bepaid into the employers'accumulation fund by that municipalcorporation as the employerof the employees.

(3) Where a member also is a member of the state teachersretirement systemor the school employees retirement system, orboth, except in cases ofretirement on a combined basis pursuantto section 145.37 of the Revised Codeor as provided in section145.383 of the Revised Code,service credit for any period shallbe credited on the basis of the ratio thatcontributions to thepublic employees retirement systembear to totalcontributions inall state retirement systems.

(4) Not more than one year of credit may be given for anyperiod of twelvemonths.

(5) "Ohio service credit" means credit for service that wasrendered to thestate or any of its political subdivisions or anyemployer.

(I) "Regular interest" means interest at any rates for therespective funds and accounts as the public employees retirementboard maydetermine from time to time.

(J) "Accumulated contributions" means the sum of allamountscredited to a contributor's individual account in theemployees'savings fund together with any interestcredited to thecontributor's account under section 145.471 or 145.472 of theRevised Code.

(K)(1) "Final average salary" means the quotient obtainedbydividing by three the sum of the three full calendar years ofcontributing service in which the member's earnable salary washighest, except that if the member has a partial year ofcontributing service in the year the member's employmentterminates and the member's earnable salary for the partial yearis higherthan for any comparable period in the three years, themember's earnablesalary for the partial year shall be substitutedfor the member's earnablesalary for the comparable period duringthe three years in which the member'searnable salary was lowest.

(2) If a member has less than three years of contributingservice, themember's final average salary shall be the member'stotal earnable salarydivided by the total number of years,including any fraction of a year, of themember's contributingservice.

(3) For the purpose of calculating benefits payable to amember qualifying for service credit under division (Z) of thissection, "final average salary" means the total earnable salaryonwhich contributions were made divided by the total number ofyearsduring which contributions were made, including anyfraction of ayear. If contributions were made for less thantwelve months,"final average salary" means the member's totalearnable salary.

(L) "Annuity" means payments for life derived fromcontributions made by acontributor and paid from the annuity andpension reserve fund as provided inthis chapter. All annuitiesshall be paid in twelve equal monthlyinstallments.

(M) "Annuity reserve" means the present value, computed uponthe basis of themortality and other tables adopted by the board,of all payments to be made onaccount of any annuity, or benefitin lieu of any annuity, granted to aretirant as provided in thischapter.

(N)(1) "Disability retirement" means retirement as providedin section 145.36of the Revised Code.

(2) "Disability allowance" means an allowance paid onaccount of disabilityunder section 145.361 of the Revised Code.

(3) "Disability benefit" means a benefit paid as disabilityretirement undersection 145.36 of the Revised Code, as adisability allowance under section145.361 of the Revised Code, oras a disability benefit under section 145.37of the Revised Code.

(4) "Disability benefit recipient" means a member who isreceiving adisability benefit.

(O) "Age and service retirement" means retirement asprovided in sections145.32, 145.33, 145.331, 145.34, 145.37, and145.46 of the Revised Code.

(P) "Pensions" means annual payments for life derived fromcontributions madeby the employer that at the time of retirementare credited into the annuityand pension reserve fund from theemployers' accumulation fund and paid fromthe annuity and pensionreserve fund as provided in this chapter. Allpensions shall bepaid in twelve equal monthly installments.

(Q) "Retirement allowance" means the pension plus thatportion of the benefitderived from contributions made by themember.

(R)(1) Except as otherwise provided in division (R)of thissection, "earnable salary" meansall salary, wages, and otherearnings paid to a contributor by reason ofemployment in aposition covered by the retirement system. The salary, wages,andother earnings shall be determined prior to determination of theamountrequired to be contributed to the employees' savings fundunder section 145.47of the Revised Code and without regard towhether any of the salary, wages, orother earnings are treated asdeferred income for federal income taxpurposes. "Earnablesalary" includes the following:

(a) Payments made by the employer in lieu of salary, wages,or other earningsfor sick leave, personal leave, or vacation usedby the contributor;

(b) Payments made by the employer for the conversion of sickleave, personalleave, and vacation leave accrued, but not used ifthe payment is madeduringthe year in which the leave is accrued,except that payments made pursuant tosection 124.383 or 124.386of the Revised Code are not earnable salary;

(c) Allowances paid by the employer for full maintenance,consisting ofhousing, laundry, and meals, as certified to theretirement board by theemployer or the head of the departmentthat employs the contributor;

(e) Payments that are made under a disability leave programsponsored by theemployer and for which the employer is requiredby section 145.296 of theRevised Code to make periodic employerand employee contributions;

(a) Fees and commissions, other than those paid undersection 507.09 of theRevised Code, paid as sole compensation forpersonal services and fees andcommissions for special servicesover and above services for which thecontributor receives asalary;

(b) Amounts paid by the employer to provide life insurance,sickness,accident, endowment, health, medical, hospital, dental,or surgical coverage,or other insurance for the contributor orthe contributor's family, or amountspaid by the employer to thecontributor in lieu of providing the insurance;

(c) Incidental benefits, including lodging, food, laundry,parking, orservices furnished by the employer, or use of theemployer's property orequipment, or amounts paid by the employerto the contributor in lieu ofproviding the incidental benefits;

(d) Reimbursement for job-related expenses authorized by theemployer,including moving and travel expenses and expensesrelated to professionaldevelopment;

(e) Payments for accrued but unused sick leave, personalleave, orvacationthat are made at any time other than in theyear in which the sick leave,personal leave, or vacation wasaccrued;

(f) Payments made to or on behalf of a contributor that arein excess of theannual compensation that may be taken intoaccount by the retirement systemunder division (a)(17) of section401 of the "Internal Revenue Code of 1986,"100 Stat. 2085, 26U.S.C.A. 401(a)(17), as amended;

(g) Payments made under division (B), (C), or (E) of section5923.05 of the RevisedCode, Section 4 of Substitute Senate BillNo. 3 of the 119th generalassembly, Section 3 of AmendedSubstitute Senate BillNo. 164 of the 124th general assembly, orAmended Substitute House Bill No. 405 of the 124th generalassembly;

(h) Anything of value received by the contributor that isbased on orattributable to retirement or an agreement to retire,except that paymentsmade on or before January 1, 1989, that arebased on or attributable to anagreement to retire shall beincluded in earnable salary if both of thefollowing apply:

(i) The payments are made in accordance with contractprovisions that were ineffect prior to January 1, 1986;

(ii) The employer pays the retirement system an amountspecified by theretirement board equal to the additionalliability resulting from thepayments.

(3) The retirement board shall determine by rule whether anycompensation notenumerated in division (R) of this section isearnable salary, and its decision shall befinal.

(S) "Pension reserve" means the present value, computed uponthe basis of themortality and other tables adopted by the board,of all payments to be made onaccount of any retirement allowanceor benefit in lieu of any retirementallowance, granted to amember or beneficiary under this chapter.

(T)(1) "Contributing service" means all service credited toa member of thesystem since January 1, 1935, for whichcontributions are made as required bysections 145.47, 145.48, and145.483 of the Revised Code. In any yearsubsequent to 1934,credit for any service shall be allowed by the followingformula:

(a) For each month for which the member's earnable salary istwo hundredfifty dollars or more, allow one month's credit.

(b) For each month for which the member's earnable salary isless than twohundred fifty dollars, allow a fraction of a month'scredit. The numerator ofthis fraction shall be the earnablesalary during the month, and thedenominator shall be two hundredfifty dollars, except that if the member'sannual earnable salaryis less than six hundred dollars, the member's creditshall not bereduced below twenty per cent of a year for a calendar year ofemployment during which the member worked each month. Division(T)(1)(b) of this section shall notreduce any credit earnedbefore January 1, 1985.

(2) Notwithstanding division (T)(1) of this section, anelected official whoprior to January 1, 1980, was granted a fullyear of credit for each year ofservice as an elected officialshall be considered to have earned a full yearof credit for eachyear of service regardless of whether the service wasfull-time orpart-time. The public employees retirement board has noauthorityto reduce the credit.

(U) "State retirement board" means the public employeesretirement board, theschool employees retirement board, or thestate teachers retirement board.

(V) "Retirant" means any former member who retires and isreceiving a monthlyallowance as provided in sections 145.32,145.33, 145.331, 145.34, and 145.46of the Revised Code.

(W) "Employer contribution" means the amount paid by anemployer asdetermined under section 145.48 of the RevisedCode.

(X) "Public service terminates" means the last day for whicha publicemployee is compensated for services performed for anemployer or the date ofthe employee's death, whichever occursfirst.

(Y) When a member has been elected or appointed to anoffice, the term ofwhich is two or more years, for which anannual salary is established, and inthe event that the salary ofthe office is increased and the member is deniedthe additionalsalary by reason of any constitutional provision prohibiting anincrease in salary during a term of office, the member may electto have theamount of the member's contributions calculated uponthe basis of theincreased salary for the office. At the member'srequest, the board shallcompute the total additional amount themember would have contributed, or theamount by which each of themember's contributions would have increased, hadthe memberreceived the increased salary for the office the member holds. Ifthe member elects to have the amount by which the member'scontribution wouldhave increased withheld from the member'ssalary, the member shall notify theemployer, and the employershall make the withholding and transmit it to theretirementsystem. A member who has not elected to have that amount withheldmay elect at any time to make a payment to the retirement systemequal to theadditional amount the member's contribution wouldhave increased, plusinterest on that contribution, compoundedannually at a rate established bythe board and computed from thedate on which the last contribution would havebeen withheld fromthe member's salary to the date of payment. A member maymake apayment for part of the period for which the increasedcontribution wasnot withheld, in which case the interest shall becomputed from the date thelast contribution would have beenwithheld for the period for which thepayment is made. Upon thepayment of the increased contributions as providedin thisdivision, the increased annual salary as provided by law for theoffice for the period for which the member paid increasedcontributionsthereon shall be used in determining the member'searnable salary for thepurpose of computing the member's finalaverage salary.

(Z) "Five years of service credit," for the exclusivepurpose of satisfyingthe service credit requirements and ofdetermining eligibility for benefitsunder section 145.33 of theRevised Code, means employment covered under thischapter or undera former retirement plan operated, recognized, or endorsed bytheemployer prior to coverage under this chapter or under acombination ofthe coverage.

(AA) "Deputy sheriff" means any person who is commissionedand employed as afull-time peace officer by the sheriff of anycounty, and has been so employedsince on or before December 31,1965, and whose primary duties are to preservethe peace, toprotect life and property, and to enforce the laws of thisstate;any person who is or has been commissioned and employed as a peaceofficer by the sheriff of any county since January 1, 1966, andwho hasreceived a certificate attesting to the person'ssatisfactory completion ofthe peace officer training school asrequired by section 109.77 of the RevisedCode and whose primaryduties are to preserve the peace, protect life andproperty, andenforce the laws of this state; or any person deputized by thesheriff of any county and employed pursuant to section 2301.12 ofthe RevisedCode as a criminal bailiff or court constable who hasreceived a certificateattesting to the person's satisfactorycompletion of the peace officertraining school as required bysection 109.77 of the Revised Code and whoseprimary duties are topreserve the peace, protect life and property, andenforce thelaws of this state.

(BB) "Township constable or police officer in a townshippolice department ordistrict" means any person who iscommissioned and employed as a full-timepeace officer pursuant toChapter 505. or 509. of the Revised Code, who hasreceived acertificate attesting to the person's satisfactory completion ofthe peace officer training school as required by section 109.77 ofthe RevisedCode, and whose primary duties are to preserve thepeace, protect life andproperty, and enforce the laws of thisstate.

(1) Employed full-time as a narcotics agent by a countynarcotics agencycreated pursuant to section 307.15 of the RevisedCode and has received acertificate attesting to the satisfactorycompletion of the peace officertraining school as required bysection 109.77 of the Revised Code;

(2) Employed full-time as an undercover drug agent asdefined in section109.79 of the Revised Code and is in compliancewith section 109.77 of theRevised Code.

(DD) "Department of public safety enforcement agent" means afull-timeemployee of thedepartment of public safety who isdesignated under section 5502.14of the Revised Code as anenforcement agent and who is in compliance withsection 109.77ofthe Revised Code.

(EE) "Natural resources law enforcement staff officer" meansafull-time employee of the department of natural resources who isdesignated anatural resources law enforcement staff officer undersection 1501.013 of theRevised Codeandis in compliance withsection 109.77 of the Revised Code.

(FF) "Park officer" means a full-time employee of thedepartment ofnaturalresources who is designated a park officerunder section 1541.10 of theRevised Code and is in compliancewith section 109.77 of the Revised Code.

(GG) "Forest officer" means a full-time employee of thedepartment of naturalresources who is designated a forest officerunder section 1503.29 of theRevised Code and is in compliancewith section 109.77 of the Revised Code.

(HH) "Preserve officer" means a full-timeemployee of thedepartment of natural resources who isdesignated a preserveofficer under section 1517.10 of theRevisedCode and is incompliance withsection 109.77 of the RevisedCode.

(II) "Wildlife officer" means a full-time employee of thedepartmentofnatural resources who is designated a wildlifeofficer under section 1531.13of the Revised Code and is incompliance with section 109.77 of the RevisedCode.

(JJ) "State watercraft officer" means a full-timeemployeeof the departmentof natural resources who is designated a statewatercraft officer undersection 1547.521 of the Revised Code andis in compliance with section 109.77of the Revised Code.

(KK) "Park district police officer" means a full-timeemployee of a parkdistrict who is designated pursuant to section511.232 or 1545.13 of theRevised Code and is in compliance withsection 109.77 of the Revised Code.

(LL) "Conservancy district officer" means a full-timeemployee of aconservancy district who is designated pursuant tosection 6101.75 of theRevised Code and is in compliance withsection 109.77 of the Revised Code.

(MM) "Municipal police officer" means a member of theorganized policedepartment of a municipal corporation who isemployed full-time, is incompliance with section 109.77 of theRevised Code, and is not a member of theOhio police and firepension fund.

(NN) "Veterans' home police officer" meansanypersonwho is employed ata veterans' home as apolice officerpursuant to section 5907.02 of theRevised Code andis incompliance with section 109.77 of the Revised Code.

(OO) "Special police officer for a mental healthinstitution" means anyperson who is designated as such pursuantto section 5119.14 of the RevisedCode and is in compliance withsection 109.77 of the Revised Code.

(PP) "Special police officer for an institution for thementally retarded anddevelopmentally disabled" means any personwho is designated as such pursuantto section 5123.13 of theRevised Code and is in compliance with section109.77 of theRevised Code.

(QQ) "State university law enforcement officer" means anyperson who isemployed full-time as a state university lawenforcement officer pursuant tosection 3345.04 of the RevisedCode and who is in compliance with section109.77 of the RevisedCode.

(RR)"House sergeant at arms" means any person appointed bythe speaker of the house of representatives under division (B)(1)of section 101.311 of the Revised Code who has arrest authorityunder division (E)(1) of that section.

(SS) "Assistant house sergeant at arms" means any personappointed by the house sergeant at arms under division (C)(1) ofsection 101.311 of the Revised Code.

(TT) "Regional transit authority police officer" means aperson who isemployed full time as a regional transit authoritypolice officer underdivision (Y) of section 306.35 of the RevisedCodeand is incompliance with section 109.77 of the Revised Code.

(UU)"State highway patrol police officer" means a specialpoliceofficer employed full time and designated by thesuperintendent of thestate highway patrol pursuant to section5503.09 of theRevised Code or a person servingfull time as aspecial police officer pursuant to that section on apermanentbasis on October 21, 1997, who is in compliancewith section109.77 of the Revised Code.

(VV) "Municipal public safety director" means a person who serves full-time as the public safety director of a municipal corporation with the duty of directing the activities of the municipal corporation's police department and fire department.

(WW) Notwithstanding section 2901.01 of the Revised Code,"PERS law enforcementofficer" means a sheriff, deputy sheriff,township constable or police officerin a township policedepartment or district, drug agent, municipal public safety director, department of publicsafetyenforcement agent, natural resources law enforcement staffofficer,park officer, forest officer, preserve officer,wildlifeofficer, state watercraftofficer, park district police officer,conservancy district officer,veterans' home police officer,special police officer for a mental healthinstitution, specialpolice officer for an institution for the mentallyretarded anddevelopmentally disabled, state university law enforcementofficer, municipalpolice officer,house sergeant at arms,assistant housesergeantat arms, regional transit authoritypolice officer, orstate highway patrol police officer.

~~(WW)~~(XX)"Hamilton county municipal courtbailiff" means apersonappointed bythe clerk of courts of the Hamilton countymunicipalcourt underdivision(A)(3) of section 1901.32 of theRevised Codewho is employed full time as abailiff or deputybailiff, who hasreceived a certificate attesting to theperson'ssatisfactorycompletion of the peace officer basic trainingdescribed indivision (D)(1) of section 109.77 of the RevisedCode,and whoseprimary duties are to preserve the peace, toprotectlife andproperty, and toenforce the laws of this state.

(1) Exercises any discretionary authority or control withrespect to themanagement of the system or with respect to themanagement or disposition ofits assets;

(2) Renders investment advice for a fee, direct or indirect,with respect tomoney or property of the system;

(3) Has any discretionary authority or responsibility in theadministrationof the system.

~~(YY)~~(ZZ) "Actuary" means an individual who satisfies all ofthefollowingrequirements:

(3) Has a minimum of five years' experience in providingactuarial servicesto public retirement plans.

~~(ZZ)~~(AAA) "PERS defined benefit plan" means the plan described insections 145.201 to 145.79 of the Revised Code.

~~(AAA)~~(BBB) "PERS defined contribution plans" means the plan orplans established under section 145.81 of the Revised Code.

Sec. 145.33. (A) Except as provided in division (B)or(C)ofthis section, a member with at least five years oftotalservicecredit who has attained age sixty, or who has thirtyyearsof total Ohio service credit, may apply for age and serviceretirement, which shall consist of:

(1) An annuity having a reserve equal to the amount of themember's accumulated contributions at that time;

(3) An additional pension, if the member can qualify forprior service, equal to forty dollars multiplied by the number ofyears, and fraction thereof, of such prior and military servicecredit;

(4) A basic annual pension equal to one hundred eightydollars if the member has ten or more years of total servicecredit as of October 1, 1956, except that the basic annualpensionshall not exceed the sum of the annual benefits providedbydivisions (A)(1), (2), and (3) of this section.

(5) When a member retires on age and service retirement,themember's total annual single lifetime allowance,including theallowances provided in divisions (A)(1), (2), (3), and (4) ofthissection, shall be not less than a base amount adjusted inaccordance with division (A)(5) of this sectionand determined bymultiplying themember's total service credit by the greater ofthe following:

(b) Two and two-tenths per cent of the member's finalaverage salaryfor each of the first thirty years of service plustwo andone-half per cent of the member's final average salary foreach subsequent year of service.

The allowance shall be adjusted by the factors of attainedage or years of service to provide the greater amount asdetermined by the following schedule:

Members shall vest the right to a benefit in accordancewiththe following schedule, based on the member's attained agebySeptember 1, 1976:

(6) The total annual single lifetime allowance that amembershall receive under division (A)(5) of this section shallnotexceed the lesser of one hundred per cent of themember's finalaverage salary or the limit established by section 415 of the"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,as amended.

(B)(1) For the purposes of divisions (B) to(G) ofthissection,"total service credit as aPERS law enforcement officer"and "total service credit as a Hamilton county municipalcourtbailiff" includecredit for military service to the extentpermitted bydivision(E)(2) of this section and credit forservice as a policeofficer or statehighway patrol trooper to theextent permitted bydivisions(E)(3)and (4) ofthissection.

(2) A member who meets the conditions in division(B)(2)(a),(b), (c), or (d) ofthis section may apply for an age andserviceretirement benefit under thisdivision:

(a)The member has attained ageforty-eight and has at leasttwenty-five years oftotal servicecredit asaPERSlawenforcement officerwhose primaryduties were to preserve thepeace, protectlife and property, andenforce the laws in themember'sjurisdiction;

(b)The member has attained agefifty-two, and has atleasttwenty-five years of total servicecreditas aPERS lawenforcement officer, but themember's primary duties were otherthan to preserve the peace,protect life and property, and enforcethe laws in the member'sjurisdiction;

(c) The member has attained age fifty-two and has at leasttwenty-five years of total service as a Hamilton county municipalcourt bailiff;

(d) The member has attained age sixty-two and has atleastfifteen years of totalservice credit aseither of thefollowing:

(3) A benefit paid under division (B)(2) of this sectionshallconsist of an annual single lifetime allowance equal to thesumoftwo and one-half per cent of the member's final averagesalarymultiplied by the first twenty-five years of the member'stotalservice plus two and one-tenth per cent of the member'sfinalaverage salary multiplied by the number of years of themember'stotal service credit in excess oftwenty-five years.

(4) A member with at least fifteen years of total servicecredit as aPERS law enforcementofficeror Hamilton countymunicipal court bailiff who voluntarily resigns or isdischargedfor anyreason except death, dishonesty, cowardice,intemperatehabits, or conviction of a felony may apply for anageand serviceretirement benefit, which shall consist of anannualsinglelifetime allowance equal to one and one-half percent ofthemember's final average salary multiplied by thenumber ofyears ofthe member's total service credit. Theallowance shallcommenceon the first day of the calendar monthfollowing themonth inwhich the application is filed with thepublic employeesretirement board on or after the attainment bythe applicant ofage fifty-two.

(C)(1) A member with at leasttwenty-five years of totalservice creditwhowould be eligible to retire underdivision(B)(2)(b) or (c) of this section had the memberattainedagefifty-two and who voluntarily resigns orisdischargedfor anyreasonexcept death, dishonesty,cowardice,intemperatehabits, orconviction of a felony, onor after thedate ofattainingforty-eight years ofage, but before the date ofattainingfifty-two yearsof age, may elect to receive a reducedbenefit asdetermined by the followingschedule:

(2) If a member elects to receive a reduced benefitafterattaining age forty-eight the reduced benefit is payable from thelater of thedate of the member's mostrecent birthday or the datethemember becomes eligible to receive the reduced benefit.

(3) Once a member elects to receive a reduced benefitdetermined by the schedule in division(C)(1) of thissectionandhas received a payment, themember may not reelect to changethatelection.

(4) If a member who has resigned or been discharged has leftondeposit the member's accumulated contributions in theemployees' savingsfund and has not elected to receive a reducedbenefit determinedby the schedule in division(C)(1) of thissection, uponattaining fifty-two years of age, the member shallbe entitled to receive abenefit computed and paid under division(B)(3) of thissection.

(D) A benefit paid under division (B)or(C) ofthissectionshall not exceed the lesser ofninety per cent of themember'sfinal average salary or the limit establishedby section415 ofthe"Internal Revenue Code of1986," 100 Stat. 2085, 26U.S.C.A.415, as amended.

(E)(1) A member with service credit as aPERS lawenforcementofficeror a Hamilton county municipal court bailiffand other service credit under this chaptermay elect oneof thefollowing:

(a) To have all the member's service credit under thischapter,including credit for service as aPERS law enforcementofficeror Hamilton county municipal court bailiff, usedincalculating a retirement allowance under division(A) of thissection if the member qualifies for an allowance underthatdivision;

(b) If the member qualifies for an allowance under division(B) or (C) of this section, tohave themember's service creditas aPERS law enforcementofficerorHamilton county municipalcourt bailiff used incalculating abenefit underthe appropriatedivision andthe member'screditfor all service other thanPERSlaw enforcementserviceorservice as a Hamilton county municipalcourt bailiff under thischapter used in calculating a benefitconsisting of a single lifeannuity having a reserve equal to theamount of the member'saccumulated contributions and anequalamount of the employer'scontributions.

(2) Notwithstanding sections 145.01 and 145.30 of theRevised Code, no more than four years of military service creditgranted under section 145.30 of the Revised Code and five yearsofmilitary service credit purchased under section 145.301 or 145.302of theRevised Code shall be used in calculating service as aPERSlawenforcement officeror Hamilton county municipal court bailiffor the total service credit of that person.

(3) Only credit for the member's service as aPERS lawenforcementofficer or service credit obtained as a police officeror statehighway patrol trooper shall be used in computing thebenefit of a member who qualifies for a benefitunderdivision(B)(2)(a), (b), or (d)(ii) or(4) or division(C) ofthissectionfor thefollowing:

(a) Any person who originally is commissioned and employedas a deputy sheriff by the sheriff of any county, or whooriginally is electedsheriff, on or after January 1, 1975;

(b) Any deputy sheriff who originally is employed as acriminal bailiffor court constable on or after April 16, 1993;

(c) Any person who originally is appointed as a townshipconstable or police officer in a township police department ordistrict on or after January 1, 1981;

(d) Any person who originally is employed as a countynarcotics agent on or after September 26, 1984;

(e) Any person who originally is employed as an undercoverdrug agent as defined in section 109.79 of the Revised Code,department of public safety enforcement agent who prior to June30, 1999, was a liquorcontrol investigator, park officer,forestofficer, wildlife officer,state watercraft officer, park districtpoliceofficer, conservancy district officer, veterans' homepolice officer, special police officer for a mental healthinstitution,special police officer for an institution for thementally retardedand developmentally disabled, or municipalpolice officer on orafter December 15, 1988;

(f) Any person who originally is employed as a stateuniversitylaw enforcement officer on or afterNovember 6, 1996;

(g)Any person who is originally employed as a stateuniversity lawenforcement officer by the university of Akron onor after September16, 1998;

(h) Any person who originally is employed as a preserveofficeron or after March18, 1999;

(i) Any person who originally is employed as a naturalresourceslaw enforcement staff officer on or after March 18,1999;

(j) Any person who is originally employed as a departmentofpublic safety enforcement agent on or after June 30,1999;

(k) Any person who is originally employed as a housesergeant at arms or assistant house sergeant at arms on or afterSeptember 5, 2001;

(l)Any person who is originally appointed as a regionaltransit authority police officer or state highway patrol policeofficer on or afterFebruary1, 2002;

(m) Any person who is originally employed as a municipal public safety director on or after the effective date of this amendment.

(4) Only credit for a member's service as a Hamilton countymunicipal court bailiff or service credit obtained as a PERS lawenforcement officer, police officer, or state highway patroltrooper shall be used in computing the benefit of a member whoqualifies for a benefit under division (B)(2)(c) or (d)(ii) or (4)ordivision (C) ofthissection for any person who originally isemployed as aHamiltoncounty municipal court bailiff on or afterNovember 6,1996.

(F) Retirement allowances determined under this sectionshall be paid as provided in section 145.46 of the Revised Code.

(G) For the purposes of this section, service prior toJune30, 1999,as a food stamp trafficking agent underformersection5502.14 of the Revised Code shall be considered service asalawenforcementofficer.

Sec. 147.05. (A) Before entering upon the duties oftheofficeof notary public,a notarypublicshall leavethenotarypublic's commission with the oathendorsedon thecommission withtheclerk of the court of common pleas ofthecounty in whichthenotary public resides. Theclerk shallrecord the commission ina bookkept for that purpose. Theclerk shallendorse on themargin of the record and on the backof thecommission the timethat the clerk receivedthe commission for recordand makeaproper index toallcommissionsso recorded. For recordingandindexinga commission, thefee of theclerkshall beasprovidedin division (R) of section 2303.20of the RevisedCode.

(B) The secretary of state shall maintain a record of thecommissions of each notary public appointed and commissioned bythe secretary of state under this chapter and make a proper indexto that record.

The governor's office shall transfer to the secretary ofstate's office, on or after~~the effective date of this amendment~~June 6, 2001,the record of notaries public formerly kept by thegovernor'soffice under section 107.10 of the Revised Code. Thesecretary ofstate's office shall maintain that record togetherwith the recordand index of commissions of notaries publicrequired by thisdivision.

(C) If a notary public legally changes the notary public's name or address after having been commissioned as a notary public, the notary public shall notify the secretary of state and the appropriate clerk of courts within thirty days after the name or address change. Notification to the secretary of state shall be on a form prescribed by the secretary of state.

(D) A notary, other than an attorney, who resigns the person's commission shall deliver to the secretary of state, on a form prescribed by the secretary of state, a written notice indicating the effective date of resignation.

Sec. 147.10. No notary public shall do or perform any act as a notary publicknowing that ~~his~~ the notary public's term of office has expired or that the notary public has resigned the notary public's commission.

Sec. 147.11. A person appointed notary public who performs any act as such after the expiration of ~~his~~ the person's term of office or after the person resigns the person's commission, knowing that ~~his~~ the person's term has expired or that the person has resigned, shall forfeit not more than five hundred dollars, to be recovered by an action in the name of the state. Such act shall render ~~such~~ the person ineligible for reappointment.

Sec. 147.12. An official act done by a notary public after the expiration of~~his~~ the notary public's term of office or after the notary public resigns the notary public's commission is as valid as if doneduring ~~his~~ the notary public's term of office.

Sec. 147.371. (A) Upon receipt of a fee of two dollars and anaffidavit that theoriginal commissionof a notary public has beenlost or destroyed, a duplicate commission asnotary public shallbe issued by thesecretary of state.

(B) Upon receipt of a fee of two dollars and the properly completed, prescribed form for a name and address change under division (C) of section 147.05 of the Revised Code, the secretary of state shall issue a duplicate commission as a notary public.

Sec. 149.30. The Ohio historical society, chartered bythis state as a corporation not for profit to promote a knowledgeof history and archaeology, especially of Ohio, and operatedcontinuously in the public interest since 1885, may performpublic functions as prescribed by law.

The general assembly may appropriate money to the Ohiohistorical society each biennium to carry out the publicfunctions of the society as enumerated in this section. Anappropriation by the general assembly to the society constitutesan offer to contract with the society to carry out those publicfunctions for which appropriations are made. An acceptance bythe society of the appropriated funds constitutes an acceptanceby the society of the offer and is considered an agreement by thesociety to perform those functions in accordance with the termsof the appropriation and the law and to expend the funds only forthe purposes for which appropriated. The governor may request onbehalf of the society, and the controlling board may release,additional funds to the society for survey, salvage, repair, orrehabilitation of an emergency nature for which funds have notbeen appropriated, and acceptance by the society ofthose funds constitutes an agreement on the part of the society toexpendthose funds only for the purpose for which released by thecontrolling board.

The society shall faithfully expend and apply all moneysreceived from the state to the uses and purposes directed by lawand for necessary administrative expenses. ~~The~~ If the general assembly appropriates money to the society for grants or subsidies to other entities for their site-related programs, the society, except for good cause, shall distribute the money within ninety days of accepting a grant or subsidy application for the money.

The society shallperform the public function of sending notice by certified mailto the owner of any property at the time it is listed on thenational register of historic places. The society shallaccurately record all expenditures of such funds in conformitywith generally accepted accounting principles.

The public functions to be performed by the Ohio historicalsociety shall include all of the following:

(A) Creating, supervising, operating, protecting,maintaining, and promoting for public use a system of statememorials, titles to which may reside wholly or in part with thisstate or wholly or in part with the society as provided in and inconformity to appropriate acts and resolves of the generalassembly, and leasing for renewable periods of two years or less,with the advice and consent of the attorney general and thedirector of administrative services, lands and buildings owned bythe state which are in the care, custody, and control of thesociety, all of which shall be maintained and kept for public useat reasonable hours;

(B) Making alterations and improvements, marking, andconstructing, reconstructing, protecting, or restoringstructures, earthworks, and monuments in its care, and equippingsuch facilities with appropriate educational maintenancefacilities;

(C) Serving as the archives administration for the stateand its political subdivisions as provided in sections 149.31 to149.42 of the Revised Code;

(D) Administering a state historical museum, to be theheadquarters of the society and its principal museum and library,which shall be maintained and kept for public use at reasonablehours;

(E) Establishing a marking system to identify alldesignated historic and archaeological sites within the state andmarking or causing to be marked historic sites and communitiesconsidered by the society to be historically or archaeologicallysignificant;

(F) Publishing books, pamphlets, periodicals, and otherpublications about history, archaeology, and natural science and offering one copy of each regular periodical issue to all publiclibraries in this state at a reasonable price, which shall not exceed one hundred ten per cent more than the total cost of publication;

(G) Engaging in research in history, archaeology, andnatural science and providing historical information upon requestto all state agencies;

(H) Collecting, preserving, and making available by allappropriate means and under approved safeguards all manuscript,print, or near-print library collections and all historicalobjects, specimens, and artifacts which pertain to the history ofOhio and its people, including the following original documents:Ohio Constitution of 1802; Ohio Constitution of 1851; proposedOhio Constitution of 1875; design and the letters of patent andassignment of patent for the state flag; S.J.R. 13 (1873); S.J.R.53 (1875); S.J.R. 72 (1875); S.J.R. 50 (1883); H.J.R. 73 (1883);S.J.R. 28 (1885); H.J.R. 67 (1885); S.J.R. 17 (1902); S.J.R. 28(1902); H.J.R. 39 (1902); S.J.R. 23 (1903); H.J.R. 19 (1904);S.J.R. 16 (1905); H.J.R. 41 (1913); H.J.R. 34 (1917); petitionform (2) (1918); S.J.R. 6 (1921); H.J.R. 5 (1923); H.J.R. 40(1923); H.J.R. 8 (1929); H.J.R. 20 (1929); S.J.R. 4 (1933);petition form (2) (1933); S.J.R. 57 (1936); petition form (1936);H.J.R. 14 (1942); H.J.R. 15 (1944); H.J.R. 8 (1944); S.J.R. 6(1947); petition form (1947); H.J.R. 24 (1947); and H.J.R. 48(1947);

(I) Encouraging and promoting the organization anddevelopment of county and local historical societies;

(J) Providing to Ohio schools such materials as the society may prepare to facilitate theinstruction of Ohio history at a reasonable price, which shall not exceed one hundred ten per cent more than the total cost of preparation and delivery;

(K) Providing advisory and technical assistance to localsocieties for the preservation and restoration of historic andarchaeological sites;

(L) Devising uniform criteria for the designation ofhistoric and archaeological sites throughout the state andadvising local historical societies of the criteria and theirapplication;

(M) Taking inventory, in cooperation with the Ohio artscouncil, the Ohio archaeological council, and the archaeologicalsociety of Ohio, of significant designated and undesignated stateand local sites and keeping an active registry of all designatedsites within the state;

(N) Contracting with the owners or persons having aninterest in designated historic or archaeological sites orproperty adjacent or contiguous to those sites, oracquiring, bypurchase, gift, or devise, easements in those sites or inpropertyadjacent or contiguous to those sites, in order to controlorrestrict the use of those historic or archaeological sitesoradjacent or contiguous property for the purpose of restoring orpreserving the historical or archaeological significance oreducational value of those sites;

(O) Constructing a monument honoring Governor James A.Rhodes, which shall stand on the northeast quadrant of thegrounds surrounding the capitol building. The monument shall beconstructed with private funds donated to the Ohio historicalsociety and designated for this purpose. No public funds shallbe expended to construct this monument. The department ofadministrative services shall cooperate with the Ohio historicalsociety in carrying out this function and shall maintain themonument in a manner compatible with the grounds of the capitolbuilding.

(P) Commissioning a portrait of each departing governor, which shall bedisplayed in the capitol building. The Ohio historical society mayaccept private contributions designated for this purpose and, at thediscretion of its board of trustees, also may apply for the same purpose fundsappropriated by the general assembly to the society pursuant to this section.

(Q) Planning and developing a center at the capitolbuilding for the purpose of educating visitors about the historyof Ohio, including its political, economic, and socialdevelopment and the design and erection of the capitol buildingand its grounds. The Ohio historical society may acceptcontributions of private moneys and in-kind services designatedfor this purpose and may, at the discretion of its board oftrustees, also apply, for the same purpose, personnel and otherresources paid in whole or in part by its state subsidy.

(R) Submitting an annual report of its activities,programs, and operations to the governor within two months afterthe close of each fiscal year of the state.

The society shall not sell, mortgage, transfer, or disposeof historical or archaeological sites to which it has title andin which the state has monetary interest except by action of thegeneral assembly.

In consideration of the public functions performed by theOhio historical society for the state, employees of the societyshall be considered public employees within the meaning ofsection 145.01 of the Revised Code.

Sec. 150.07. (A) For the purpose stated in section 150.01of the Revised Code, the authority may authorize a lender to claimone ofthe tax credits allowed under section 5707.031,5725.19, 5727.241, 5729.08,5733.49,or 5747.80 of the Revised Code. Thecredits shall beauthorized by a written contract with the lender.The contractshall specify the terms under which the lender mayclaim thecredit, including the amount of loss, if any, the lendermustincur before the lender may claim the credit; specify thatthecreditshall not exceedthe amount of the loss; and specifythatthe lender may claim thecredit only for a loss certified byaprogramadministrator to theauthority under the proceduresprescribedunder division (B)(6) ofsection 150.05 of the RevisedCode.

(B) Tax credits may be authorized at any time after theauthority establishes the investment policy under section 150.03of the Revised Code, but a tax credit so authorized may not beclaimed until the beginning of the fifth year after the authorityestablishes the investment policy. A tax credit may not beclaimed after June 30, 2026.

(C) (1) Upon receiving certification of a lender's loss fromaprogram administrator pursuant to the procedures in theinvestmentpolicy, the authority shall issue a tax creditcertificate to thelender, except as otherwise provided indivision (D) of this section. ~~The~~

(2) If the lender is a pass-through entity, as defined in section 5733.04 of the Revised Code, then each equity investor in the lender pass-through entity shall be entitled to claim one of the tax credits allowed under division (A) of this section for that equity investor's taxable year in which or with which ends the taxable year of the lender pass-through entity in an amount based on the equity investor's distributive or proportionate share of the credit amount set forth in the certificate issued by the authority. If all equity investors of the lender pass-through entity are not eligible to claim a credit against the same tax set forth in division (A) of this section, then each equity investor may elect to claim a credit against the tax to which the equity investor is subject to in an amount based on the equity investor's distributive or proportionate share of the credit amount set forth in the certificate issued by the authority.

(3) The authority shall not issue a certificate until the lender, in the manner prescribed by the authority, or in the case of a lender pass-through entity, until each equity investor in that lender pass-through entity, elects to receive a refundable or nonrefundable tax credit. The election, once made, is irrevocable. The certificate shall statetheamount of the credit, whether the credit is refundable or nonrefundable,andthe calendar year,undersection 5707.031, 5725.19, 5727.241,or 5729.08, the taxyear,undersection5733.49,or the taxableyear undersection5747.80of the RevisedCode, forwhich thecredit may beclaimed.Theauthority, inconjunctionwith the taxcommissioner,shalldevelopa system forissuing tax creditcertificates for thepurpose ofverifyingthat anycredit claimedisa creditissuedunder thissection andisproperly taken intheyear specified inthecertificate and incompliance withdivision(B)ofthissection.

(D) The authority shall not, in any fiscal year, issue taxcredit certificates in a total amount exceeding twenty milliondollars.

Sec. 150.10. (A)Onthe first day of Januaryof the secondyear after the date of entering into an agreementunder section150.05 of theRevisedCodeand of each ensuing year, theauthorityshall file with the clerkof the houseofrepresentatives, theclerk of the senate, andthe chairpersonsofthe house and senatestanding committeespredominantlyconcernedwith economicdevelopment a writtenreport on theOhioventurecapital program.The report shall include all the following:

(1)Adescription of the details of theinvestment policyestablished or modified in accordance withsections 150.03and150.04 of the Revised Code;

(2)Theauthority's assessment of the program's achievementof itspurpose stated in section 150.01 of the Revised Code;

(3)Thevalue of tax credit certificates issued by theauthorityundersection 150.07 of the Revised Code in each fiscalyear ending on or before the preceding thirtieth day of June;

(4) Theamount of tax credits claimed pursuant to section 5707.031,5725.19, 5727.241, 5729.08, 5733.49, or 5747.80 of the Revised Code, as tothe respective taxesinvolved;

(6) The names of venture capital funds in which money fromthe program fund has been invested and thelocations of theirprincipal offices, and the names ofthe enterprises in which eachof those venture capitalfunds has invested such money and thelocations of thoseenterprises' principal offices;

(7) Anyrecommendations for modifying the program to betterachieve thepurpose stated in section 150.01 of theRevisedCode.

(B) During each year that a report is issued under division(A) of this section, the chairperson of the authority, oranothermember of the authority designatedby thechairpersonas theauthority's representative, shallberequired to appear inpersonbefore the standing committees of thehouse andsenatepredominantly concernedwith economic developmentto givetestimony concerning the status of theOhio venturecapitalprogram.

Sec. 153.02. (A) The director of administrative services may debar a contractor from contract awards for public improvements as referred to in section 153.01 of the Revised Code upon proof that the contractor has done any of the following:

(1) Defaulted on a contract requiring the execution of a takeover agreement as set forth in division (B) of section 153.17 of the Revised Code;

(2) Knowingly failed during the course of a contract to maintain the coverage required by the bureau of workers' compensation;

(3) Knowingly failed during the course of a contract to maintain the contractor's drug-free workplace program as required by the contract;

(4) Knowingly failed during the course of a contract to maintain insurance required by the contract or otherwise by law, resulting in a substantial loss to the owner, as owner is referred to in section 153.01 of the Revised Code;

(5) Misrepresented the firm's qualifications in the selection process set forth in sections 153.65 to 153.71 of the Revised Code;

(8) Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;

(9) Been debarred from bidding on or participating in a contract with any state or federal agency.

(B) When the director reasonably believes that grounds for debarment exist, the director shall send the contractor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing on the proposed debarment. The hearing shall be conducted in accordance with Chapter 119. of the Revised Code. If the contractor does not respond with a request for a hearing in the manner specified in Chapter 119. of the Revised Code, the director shall issue the debarment decision without a hearing and shall notify the contractor of the decision by certified mail, return receipt requested.

(C) The director shall determine the length of the debarment period and may rescind the debarment at any time upon notification to the contractor. During the period of debarment, the contractor is not eligible to bid for or participate in any contract for a public improvement as referred to in section 153.01 of the Revised Code. After the debarment period expires, the contractor shall be eligible to bid for and participate in contracts for a public improvement as referred to in section 153.01 of the Revised Code.

(D) The director, through the office of the state architect, shall maintain a list of all contractors currently debarred under this section. Any governmental entity awarding a contract for construction of a public improvement may use a contractor's presence on the debarment list to determine whether a contractor is responsible or best under section 9.312 or any other section of the Revised Code in the award of a contract.

Sec. 154.11. The issuingauthority may authorize and issue obligations for the refunding, includingfunding and retirement, of any obligations previously issued under thischapter and any bonds or notes previously issued under Chapter 152. of the Revised Code to pay costs of capital facilities leased to the Ohio cultural facilities commission, formerly known as the Ohio arts and sports facilities commission. Such obligations may be issued in amountssufficient for payment of the principal amount of the priorobligations, any redemption premiums thereon, principalmaturities of any such obligations maturing prior to theredemption of the remaining obligations on a parity therewith,interest accrued or to accrue to the maturity dates or dates ofredemption of such obligations, and any expenses incurred or tobe incurred in connection with such issuance and such refunding,funding, and retirement. Subject to the bond proceedingstherefor, the portion of proceeds of the sale of obligationsissued under this section to be applied to bond service chargeson the prior obligations shall be credited to the bond servicefund for those prior obligations. Obligations authorized under thissection shall be deemed to be issued for those purposes for whichthose prior obligations were issued and are subject to theprovisions of Chapter 154. of the Revised Code pertaining toother obligations, except as otherwise indicated by this sectionand except for division (A) of section 154.02 of the RevisedCode, provided that, unless otherwise authorized by the generalassembly, any limitations imposed by the general assemblypursuant to that division with respect to bond service chargesapplicable to the prior obligations shall be applicable to theobligations issued under this section to refund, fund, or retirethose prior obligations.

Sec. 173.26. (A) Each of the following facilities shallannually pay to the department of aging six dollars for eachbed maintained by the facility for use by a resident during anypart of the previous year:

(1) Nursing homes, residential care facilities, and homesfor the aging as defined in section 3721.01 of the Revised Code;

(2) Facilities authorized to provide extended careservices under Title XVIII of the "Social Security Act," 49 Stat.620 (1935), 42 U.S.C. 301, as amended;

(3) County homes and district homes operated pursuant toChapter 5155. of the Revised Code;

(5) Facilities approved by the Veterans Administrationunder Section 104(a) of the "Veterans Health Care Amendments of1983," 97 Stat. 993, 38 U.S.C. 630, as amended, and usedexclusively for the placement and care of veterans.

The department shall, by rule adopted in accordance with Chapter 119.of the Revised Code, establish deadlines for payments required bythis section. A facility that fails, within ninety days after the established deadline, to pay a payment required by this section shall be assessed at two times the original invoiced payment.

(B) All money collected under this section shall bedeposited in the state treasury to the credit of the office ofthe state long-term care ombudsperson program fund,which is hereby created. Money credited to the fund shall be used solely topaythe costs of operating the regional long-term care ombudsperson programs.

(C) The state long-term care ombudsperson and theregional programs may solicit and receive contributions to support theoperation of the office or a regional program, except that nocontribution shall be solicited or accepted that would interferewith the independence or objectivity of the office or program.

Sec. 173.39. As used in sections 173.39 to 173.393 of the Revised Code, "community-based long-term care services" has the same meaning as in section 173.14 of the Revised Code.

Except as provided in section 173.392 of the Revised Code, the department of aging may not pay a person or government entity for providing community-based long-term care services under a program the department administers unless the person or government entity is certified under section 173.391 of the Revised Code and provides the services.

Sec. 173.391. (A) The department of aging or its designee shall do all of the following in accordance with Chapter 119. of the Revised Code:

(1) Certify a person or government entity to provide community-based long-term care services under a program the department administers if the person or government entity satisfies the requirements for certification established by rules adopted under division (B) of this section;

(2) When required to do so by rules adopted under division (B) of this section, take one or more of the following disciplinary actions against a person or government entity issued a certificate under division (A)(1) of this section:

(e) Impose a fiscal sanction such as a civil monetary penalty or an order that unearned funds be repaid;

(3) Hold hearings when there is a dispute between the department or its designee and a person or government entity concerning actions the department or its designee takes or does not take under division (A)(1) or (2)(c) to (g) of this section.

(B) The director of aging shall adopt rules in accordance with Chapter 119. of the Revised Code establishing certification requirements and standards for determining which type of disciplinary action to take under division (A)(2) of this section in individual situations. The rules shall establish procedures for all of the following:

(1) Ensuring that PASSPORT agencies, as defined in section 173.41 of the Revised Code, comply with that section;

(2) Evaluating the services provided to ensure that they are provided in a quality manner advantageous to the individual receiving the services;

(3) Determining when to take disciplinary action under division (A)(2) of this section and which disciplinary action to take.

(C) The procedures established in rules adopted under division (B)(2) of this section shall require that all of the following be considered as part of an evaluation:

(2) The service provider's ability to comply with standards for the community-based long-term care services that the provider provides under a program the department administers;

(D) The rules adopted under division (B)(3) of this section shall specify that the reasons disciplinary action may be taken under division (A)(2) of this section include good cause, including misfeasance, malfeasance, nonfeasance, confirmed abuse or neglect, financial irresponsibility, or other conduct the director determines is injurious to the health or safety of individuals being served.

Sec. 173.392. (A) The department of aging may pay a person or government entity for providing community-based long-term care services under a program the department administers, even though the person or government entity is not certified under section 173.391 of the Revised Code if all of the following are the case:

(1) The person or government entity has a contract with the department of aging or the department's designee to provide the services;

(2) The contract includes detailed conditions of participation for providers of services under a program the department administers and service standards that the person or government entity is required to satisfy;

(4) The contract is not for medicaid-funded services, other than services provided under the PACE program administered by the department of aging under section 173.50 of the Revised Code.

(B) The director of aging shall adopt rules in accordance with Chapter 119. of the Revised Code governing both of the following:

(1) Contracts between the department of aging and persons and government entities regarding community-based long-term care services provided under a program the department administers;

(2) The department's payment for community-based long-term care services provided under such a contract.

Sec. 173.393. (A) Except as provided in division (B) of this section, the records of an evaluation conducted in accordance with rules adopted under division (B)(2) of section 173.391 of the Revised Code are public records for purposes of section 149.43 of the Revised Code and shall be made available on request of any person, including individuals receiving or seeking community-based long-term care services under a program the department of aging administers.

(B) A part of a record of an evaluation that is otherwise available as a public record under division (A) of this section is not available as a public record if its release would violate a federal or state statute, regulation, or rule, including regulations adopted by the United States department of health and human services to implement the health information privacy provisions of the "Health Insurance Portability and Accountability Act of 1996," 110 Stat. 1955, 42 U.S.C. 1320d, et seq., as amended.

Sec. 173.40. There is hereby created a medicaid waivercomponent ~~of themedicaid programestablished under Chapter 5111.~~, as defined in section 5111.85 of the RevisedCode, to be known as thepreadmission screening system providingoptions and resources today program,or PASSPORT.The PASSPORTprogram shall provide home andcommunity-basedservices as analternative to nursing facilityplacement for aged and disabledmedicaid recipients. Theprogram shall be operated pursuant to ahome and community-basedwaiver granted by the United Statessecretary of health and humanservicesunder section 1915 of the"Social Security Act," 49 Stat.620 (1935), 42U.S.C. 1396n, asamended. The department of agingshall administer theprogramthrougha contractentered intowith thedepartmentof job andfamily servicesunder section5111.91 of the RevisedCode. The~~directors~~ director of ~~aging and~~job andfamily services shalladopt rules under section 5111.85 of the Revised Code and the director of aging shall adopt rulesinaccordance with Chapter 119.of the Revised Code toimplementthe program.

Sec. ~~5101.75~~ 173.42. (A) As used in ~~sections 5101.75, 5101.751,5101.752, 5101.753, and 5101.754 of the Revised Code~~ this section:

(1)"Alternative source of long-term care" includes aresidential carefacility licensed under Chapter 3721. of theRevised Code, an adultcare facility licensed under Chapter 3722.of the Revised Code,home and community-based services, and anursinghome licensed under Chapter 3721. of the Revised Code thatis nota nursing facility Area agency on aging" means a public or private nonprofit entity designated under section 173.011 of the Revised Code to administer programs on behalf of the department of aging.

(2)"Long-term care consultation" means the process used to provide services under the long-term care consultation program established pursuant to this section, including, but not limited to, such services as the provision of information about long-term care options and costs, the assessment of an individual's functional capabilities, and the conduct of all or part of the reviews, assessments, and determinations specified in sections 5111.202, 5111.204, 5119.061, and 5123.021 of the Revised Code and the rules adopted under those sections.

(3) "Medicaid" means the medical assistance programestablished under Chapter 5111. of the Revised Code.

~~(3)~~(4)"Nursing facility" has the same meaning as in section5111.20 of the Revised Code.

~~(4)~~(5)"Representative" means a person acting on behalf ofan~~applicant~~ individual seeking a long-term care consultation, applying for admission to a nursing facility, or residing in a nursing facility. Arepresentativemay be a family member, attorney, hospital socialworker, or anyother person chosen to act on behalf of ~~anapplicant~~ the individual.

~~(5)"Third-party payment source" means a third-party payeras defined in section 3901.38 of the Revised Code or medicaid.~~

(B) Effective July 1, 1994, the department of job and familyservicesmay assess a person applying or intending to apply foradmission to a nursing facility who is not an applicant for orrecipient of medicaid to determine whether the person is in needof nursing facility services and whether an alternative source oflong-term care is more appropriate for the person in meeting theperson's physical, mental, and psychosocial needs than admissionto thefacility to which the person has applied.

Each assessment shall be performed by the department or anagency designatedby the department under section 5101.751 of theRevised Code and shall bebased on information provided by theperson or the person'srepresentative. It shall consider theperson's physical, mental,and psychosocial needs and theavailability and effectiveness ofinformal support and care. Thedepartment or designated agency shalldeterminethe person'sphysical, mental, and psychosocial needs by using,to the maximumextent appropriate, information from the residentassessmentinstrument specified in rules adopted by thedepartment underdivision (A) of section 5111.231 of the RevisedCode. Thedepartment or designated agency shall also use the criteria andprocedures established in rules adopted by the department underdivision (I) of this section. Assessments may be performed onlyby persons The department of aging shall develop a long-term care consultation program whereby individuals or their representatives are provided with long-term care consultations and receive through these professional consultations information about options available to meet long-term care needs and information about factors to consider in making long-term care decisions. The long-term care consultations provided under the program may be provided at any appropriate time, as permitted or required under this section and the rules adopted under it, including either prior to or after the individual who is the subject of a consultation has been admitted to a nursing facility.

(C) The long-term care consultation program shall be administered by the department of aging, except that the department may enter into a contract with an area agency on aging or other entity selected by the department under which the program for a particular area is administered by the area agency on aging or other entity pursuant to the contract.

(D) The long-term care consultations provided for purposes of the program shall be provided by individuals certified by the department under section ~~5101.752~~ 173.43 ofthe Revised Code. The department or designated agency shall makearecommendation on the basis of the assessment and, not laterthanthe time the assessment is required to be performed underdivision (D) of this section, give the person assessed writtennotice of the recommendation, which shall explain the basis forthe recommendation. If the department or designated agencydeterminespursuantto an assessment that an alternative source oflong-term care ismore appropriate for the person than admissionto the facility towhich the person has applied, the department ordesignatedagency shall include in thenotice possible sources offinancial assistance for thealternative source of long-term care.If the department or designated agencyhas been informed that theperson has a representative, it shallgive the notice to therepresentative.

~~(C) A person~~ (E) The information provided through a long-term care consultation shall be appropriate to the individual's needs and situation and shall address all of the following:

(2) Sources and methods of both public and private payment for long-term care services;

(3) Factors to consider when choosing among the available programs, services, and benefits;

(4) Opportunities and methods for maximizing independence and self-reliance, including support services provided by the individual's family, friends, and community.

(F) An individual's long-term care consultation may include an assessment of the individual's functional capabilities. The consultation may incorporate portions of the determinations required under sections 5111.202, 5119.061, and 5123.021 of the Revised Code and may be provided concurrently with the assessment required under section 5111.204 of the Revised Code.

(G)(1) Unless an exemption specified in division (I) of this section is applicable, each individual in the following categories shall be provided with a long-term care consultation:

(a) Individuals who apply or indicate an intention to apply for admission to a nursing facility, regardless of the source of payment to be used for their care in a nursing facility;

(b) Nursing facility residents who apply or indicate an intention to apply for medicaid;

(c) Nursing facility residents who are likely to spend down their resources within six months after admission to a nursing facility to a level at which they are financially eligible for medicaid;

(2) In addition to the individuals included in the categories specified in division (G)(1) of this section, long-term care consultations may be provided to nursing facility residents who have not applied and have not indicated an intention to apply for medicaid. The purpose of the consultations provided to these individuals shall be to determine continued need for nursing facility services, to provide information on alternative services, and to make referrals to alternative services.

(H)(1) When a long-term care consultation is required to be provided pursuant to division (G)(1) of this section, the consultation shall be provided as follows or pursuant to division (H)(2) or (3) of this section:

(a) If the individual for whom the consultation is being provided has applied for medicaid and the consultation is being provided concurrently with the assessment required under section 5111.204 of the Revised Code, the consultation shall be completed in accordance with the applicable time frames specified in that section for providing a level of care determination based on the assessment.

(b) In all other cases, the consultation shall be provided not later than five calendar days after the department or the program administrator under contract with the department receives notice of the reason for which the consultation is required to be provided pursuant to division (G)(1) of this section.

(2) An individual or the individual's representative may request that a long-term care consultation be provided on a date that is later than the date required under division (H)(1)(a) or (b) of this section.

(3) If a long-term care consultation cannot be completed within the number of days required by division (H)(1) or (2) of this section, the department or the program administrator under contract with the department may do any of the following:

(a) Exempt the individual from the consultation pursuant to rules that may be adopted under division (L) of this section;

(b) In the case of an applicant for admission to a nursing facility, provide the consultation after the individual is admitted to the nursing facility;

(I) An individual is not required to be ~~assessed~~ provided a long-term care consultation under ~~division(B) of~~ this section if any of the following apply:

(1) The ~~circumstances~~ individual or the individual's representative chooses to forego participation in the consultation pursuant to criteria specified by in rules adopted underdivision ~~(I)~~(L) of this section ~~exist.~~;

(2) The ~~person~~ individual is to receive care in a nursing facilityunder acontract for continuing care as defined in section 173.13of theRevised Code.;

(3) The ~~person~~ individual has a contractual right to admission to anursingfacility operated as part of a system of continuing careinconjunction with one or more facilities that provide a lessintensive level of services, including a residential carefacilitylicensed underChapter 3721. of the Revised Code, an ~~adult-care~~adult care facilitylicensed under Chapter 3722. of the Revised Code, or anindependent living arrangement;

(4) The ~~person~~ individual is to receive continual care in a home forthe agedexempt from taxation under section 5701.13 of the RevisedCode;

(5) The person is to receive care in the nursing facilityfor notmore than fourteen days in order to provide temporaryrelief tothe person's primary caregiver and the nursing facilitynotifies thedepartment of the person's admittance not later thantwenty-four hoursafter admitting the person individual is seeking admission to a facility that is not a nursing facility with a provider agreement under section 5111.22 of the Revised Code;

(6) The ~~person~~ individual is to be transferred from another nursingfacility,unless the nursing facility from which or to which thepersonis to betransferred determines that the person's medicalconditionhas changedsubstantially since the person's admissionto the nursingfacility fromwhich the person is to be transferredor a review is requiredby athird-party payment source;

(7) The ~~person~~ individual is to be readmitted to a nursing facilityfollowinga period of hospitalization, unless the hospital ornursingfacility determines that the person's medical conditionhaschangedsubstantially since the person's admission to thehospital,or a review isrequired by a third-party payment source;

(8) The department or designated agency fails to complete anassessmentwithin the time required by division (D) or (E) of thissectionor determines after a partial assessment that the personshouldbe exempt from the assessment individual is exempted from the long-term care consultation requirement by the department or the program administrator pursuant to rules that may be adopted under division (L) of this section.

~~(D) The department or designated agency shall perform acompleteassessment, or, if circumstances provided by rulesadopted underdivision (I) of this section exist, a partialassessment, asfollows:~~

(1) In the case of a hospitalized person applying orintending to apply to a nursing facility, not later than twoworking days after the person or the person's representativeisnotifiedthat a bed is available in a nursing facility;

(2) In the case of an emergency as determined inaccordancewith rules adopted under division (I) of this section,not laterthan one working day after the person or theperson'srepresentative is notified that a bed is available in a nursingfacility;

~~(3) In all other cases, not later than five calendar daysafter the person or the person's representative who submitstheapplication is notified that a bed is available in a nursingfacility.~~

(E) If the department or designated agency conducts apartial assessmentunder division (D) of this section, it shallcomplete the rest ofthe assessment not later than one hundredeighty days after thedate the person is admitted to the nursingfacility unless theassessment entity determines the person shouldbe exempt from theassessment.

(F) A person assessed under this section or the person'srepresentative may file a complaint with the department about theassessment process. The department shall work to resolve thecomplaint in accordance with rules adopted under division (I) ofthis section.

~~(G) A person~~ (J) At the conclusion of an individual's long-term care consultation, the department or the program administrator under contract with the department shall provide the individual or individual's representative with a written summary of options and resources available to meet the individual's needs. Even though the summary may specify that a source of long-term care other than care in a nursing facility is appropriate and available, the individual is not required to seek an alternative sourceof long-term care and may be admitted to or continue to reside ina nursing facility ~~even though an alternative source of long-termcare is available or the person is determined pursuant to anassessmentunder this section not to need nursing facilityservices~~.

~~(H)~~(K) No nursing facility for which an operator has a provider agreement ~~withthedepartment~~ under section 5111.22 of the Revised Code shalladmitor retain any ~~person, other than a person exempt from theassessment requirement as provided by division (C) of thissection,~~ individual as a resident, unless the nursing facility has receivedevidence that a ~~complete or partial assessment~~ long-term care consultation has beencompleted for the individual or division (I) of this section is applicable to the individual.

~~(I)~~(L) The director of ~~job and family services shall~~aging may adoptany rules ~~in accordance withChapter 119. of the Revised Code toimplement and administer~~ the director considers necessary for the implementation and administration of thissection. The rules shall ~~include~~be adopted in accordance with Chapter 119. of the Revised Code and may specify any or all of the following:

(1) ~~The information a person being assessed or the person's representative must provide to enable the department ordesignatedagency todothe assessment;~~

~~(2) Criteria to be used to determine whether a person isinneed of nursing facility services;~~

~~(3) Criteria to be used to determine whether analternativesource of long-term care is appropriate for theperson beingassessed;~~

~~(4) Criteria and procedures to be used to determine aperson's physical, mental, and psychosocial needs;~~

~~(5) Criteria to be used to determine the effectiveness andcontinued availability of a person's current source of informalsupport and care;~~

~~(6) Circumstances, in addition to those specified indivision (C) of this section, under which a person is notrequiredto be assessed;~~

~~(7) Circumstances under which the department or designatedagency mayperform a partial assessment under division (D) of thissection;~~

~~(8) The method by which a situation will be determined tobean emergency for the purpose of division (D)(2) of thissection;~~

~~(9) The method by which the department will attempt toresolve complaints filed under division (F) of this section~~ Procedures for providing long-term care consultations pursuant to this section;

(2) Information to be provided through long-term care consultations regarding long-term care services that are available;

(3) Criteria under which an individual or the individual's representative may choose to forego participation in a long-term care consultation;

(4) Criteria for exempting individuals from the long-term care consultation requirement;

(5) Circumstances under which it may be appropriate to provide an individual's long-term care consultation after the individual's admission to a nursing facility rather than before admission;

(6) Criteria for identifying nursing facility residents who would benefit from the provision of a long-term care consultation.

~~(J)~~(M) The director of ~~job and family services~~ aging may fine anursingfacility an amount determined by rules the director shalladoptin accordance with Chapter 119. of the Revised Code ~~ineither ofthe following circumstances:~~

~~(1) The nursing facility fails to notify the departmentwithin the required time about an admission described in division(C)(5) of this section;~~

~~(2) The~~ if the nursing facility admits or retains an individual, without evidence that a~~complete or partial assessment~~ long-term care consultation has been ~~conducted~~ provided, ~~a person otherthan a person exempt from the assessment requirement~~ as ~~provided~~required by ~~division (C) of~~ this section.

~~The director shall deposit~~ In accordance with section 5111.62 of the Revised Code, all fines collected under thisdivision shall be deposited into the state treasury to the credit of the residents protection fund ~~established bysection5111.62 of the Revised Code~~.

Sec. ~~5101.752~~ 173.43. The department of ~~job and family services~~aging shall certify~~registerednurses licensed under Chapter 4723. ofthe Revised Code and social workersand independent social workerslicensed under Chapter 4757. of theRevised Code~~ individuals who meetcertification requirements established by rule to~~performassessments under~~ provide long-term care consultations for purposes of section ~~5101.75 or 5101.754~~ 173.42 of the Revised Code.The director of ~~job and family services~~ aging shall adoptrules inaccordance with Chapter 119. of theRevised Code governing thecertification process and requirements. The rulesshall specifythe education, experience, or training in ~~geriatric~~ long-termcarea person must have to qualify for certification.

Sec. 173.44. (A) As used in this section, "nursing home" and "residential care facility" have the same meanings as in section 3721.01 of the Revised Code.

(B) The department of aging may conduct an annual survey of nursing homes and residential care facilities. The survey shall include questions about capacity, occupancy, and private pay charges. The department may contract with an outside entity to conduct the survey and analyze the results. The results of the survey and any analysis completed by the department or its designee shall be made available to the general assembly, other state agencies, nursing home and residential care facility providers, and the general public.

Sec. 173.45. As used in this section and in sections 173.46 to 173.49 of the Revised Code:

(A) "Long-term care facility" means a nursing home or residential care facility.

(B) "Nursing home" and "residential care facility" have the same meanings as in section 3721.01 of the Revised Code.

Sec. 173.46. (A) The department of aging shall develop and publish a guide to long-term care facilities for use by individuals considering long-term care facility admission and their families, friends, and advisors. The guide, which shall be titled the Ohio long-term care consumer guide, may be published in printed form or in electronic form for distribution over the internet. The guide may be developed as a continuation or modification of the guide published by the department prior to the effective date of this section under rules adopted under section 173.02 of the Revised Code.

(B) The Ohio long-term care consumer guide shall include information on each long-term care facility in this state. For each facility, the guide shall include the following information, as applicable to the facility:

(1) Information regarding the facility's compliance with state statutes and rules and federal statutes and regulations;

(2) Information generated by the centers for medicare and medicaid services of the United States department of health and human services from the quality measures developed as part of its nursing home quality initiative;

(3) Results of the customer satisfaction surveys conducted under section 173.47 of the Revised Code;

(4) Any other information the department specifies in rules adopted under section 173.49 of the Revised Code.

Sec. 173.47. (A) For purposes of publishing the Ohio long-term care consumer guide, the department of aging shall conduct or provide for the conduct of an annual customer satisfaction survey of each long-term care facility. The results of the surveys may include information obtained from long-term care facility residents, their families, or both.

(B)(1) The department may charge fees for the conduct of annual customer satisfaction surveys. The department may contract with any person or government entity to collect the fees on its behalf. All fees collected under this section shall be deposited in accordance with section 173.48 of the Revised Code.

(a) Four hundred dollars for the customer satisfaction survey of a long-term care facility that is a nursing home;

(b) Three hundred dollars for the customer satisfaction survey pertaining to a long-term care facility that is a residential care facility.

(3) Fees paid by a long-term care facility that is a nursing facility shall be reimbursed through the medicaid program operated under Chapter 5111. of the Revised Code.

Sec. 173.48. There is hereby created in the state treasury the long-term care consumer guide fund. Money collected from the fees charged for the conduct of customer satisfaction surveys under section 173.47 of the Revised Code shall be credited to the fund. The department of aging shall use money in the fund for costs associated with publishing the Ohio long-term care consumer guide, including, but not limited to, costs incurred in conducting or providing for the conduct of customer satisfaction surveys.

Sec. 173.49. The department of aging shall adopt rules as the department considers necessary to implement and administer sections 173.45 to 173.48 of the Revised Code. The rules shall be adopted under Chapter 119. of the Revised Code.

Sec. 173.50. (A) Pursuant to a contract entered into with the department of job and family services as an interagency agreement under section 5111.91 of the Revised Code, the department of aging shall carry out the day-to-day administration of the component of the medicaid program established under Chapter 5111. of the Revised Code known as the program of all-inclusive care for the elderly or PACE. The department of aging shall carry out its PACE administrative duties in accordance with the provisions of the interagency agreement and all applicable federal laws, including the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396u-4, as amended.

(B) The department of aging may adopt rules in accordance with Chapter 119. of the Revised Code regarding the PACE program, subject to both of the following:

(1) The rules shall be authorized by rules adopted by the department of job and family services.

(2) The rules shall address only those issues that are not addressed in rules adopted by the department of job and family services for the PACE program.

Sec. 173.99. (A) A long-term care provider, person employed by a long-termcare provider, other entity, or employee of such other entity that violatesdivision (C) of section 173.24 of the Revised Code is subject to a fine not toexceed one thousand dollars for each violation.

(B) Whoever violates division (C) of section 173.23 of the Revised Code isguilty of registering a false complaint, a misdemeanor of the first degree.

(C) A long-term care provider, other entity, or person employed by a long-term care provider or other entity that violates division (E) of section 173.19 of the Revised Code by denying a representative of the office of the state long-term care ombudsperson program the access required by that division is subject to a fine not to exceed five hundred dollars for each violation.

(D) Whoever violates division (C) of section 173.44 of the Revised Code is subject to a fine of one hundred dollars.

Sec. 183.28. The education technology trust fund is herebycreated in the state treasury. Money credited to the fund shallbe used to pay costs ofthe eTech Ohio ~~SchoolNet~~commission undersection~~3301.80~~ 3353.02 of the Revised Code. Allinvestment earnings ofthe fund shallbe credited to the fund.

Sec. 184.02. (A) The third frontier commission mayperform any act to ensure the performance of any functionnecessary or appropriate to carry out the purposes of, andexercise the powers granted under, sections 184.01 and 184.02 ofthe Revised Code. In addition, the commission may do any of thefollowing:

(1) Adopt, amend, and rescind rules under section 111.15 ofthe Revised Code for the administration of any aspect of itsoperations;

(2) Adopt bylaws governing its operations, including bylawsthat establish procedures and set policies as may be necessary toassist with the furtherance of its purposes;

(3) Appoint and set the compensation of employees needed tocarry out its duties;

(4) Contract with, retain the services of, or designate, andfix the compensation of, such financial consultants, accountants,other consultants and advisors, and other independent contractorsas may be necessary or desirable to carry out its duties;

(5) Solicit input and comments from the third frontieradvisory board, and specialized industry, professional, and otherrelevant interest groups concerning its purposes;

(6) Facilitate alignment of the state's science andtechnology programs and activities;

(7) Make grants and loans to individuals, public agencies,private companies or organizations, or joint ventures for any ofthe broad range of activities related to its purposes.

(1) Establish a competitive process for the award of grantsand loans that is designed to fund the most meritorious proposalsand, when appropriate, provide for peer review of proposals;

(2) Within ninety days after the end of each fiscal year,submit to the governor and the general assembly a report of theactivities of the commission during the preceding fiscal year;

(3) With specific application to the biomedical research andtechnology transfer trust fund, periodically make strategicassessments of the types of state investments in biomedicalresearch and biotechnology in the state that would likely createjobs and business opportunities in the state and produce the mostbeneficial long-term improvements to the public health of~~Ohioians~~ Ohioans, including, but not limited to, biomedical research andbiotechnology initiatives that address tobacco-related illnessesas may be outlined in any master agreement. The commission shallaward grants and loans from the fund pursuant to a processestablished under division (B)(1) of this section.

(C) Notwithstanding the authority granted to the commission under sections 184.01 to 184.04 of the Revised Code, the commission shall not make any grants or loans to individuals, public agencies, private companies or organizations, or joint ventures for any activities involving stem cell research with human embryonic tissue.

Sec. 305.171. (A) The board of county commissioners ofany county may contract for, purchase, or otherwise procure andpay all or any part of the cost of group insurance policies thatmay provide benefits including, but not limited to,hospitalization, surgical care, major medical care, disability,dental care, eye care, medical care, hearing aids, orprescription drugs, and that may provide sickness and accidentinsurance, group legal services, or group life insurance, or acombination of any of the foregoing types of insurance orcoverage, for county officers and employees and their immediatedependents from the funds or budgets from which the county officers oremployees are compensated for services, issued by an insurancecompany.

(B) The board of county commissioners also may negotiate and contract for any planor plans of health care services with healthinsuring corporations holding acertificate of authority under Chapter 1751. of theRevised Code, provided that each county officer or employeeshall be permitted to do both of the following:

(1) Exercise an option between a plan offered by aninsurance company and ~~such~~ a plan or plans offered by healthinsuring corporations underthis division, on the condition that the county officer or employee shall payany amount by which the cost of the plan chosen by ~~such~~ the county officeror employee pursuant to this division exceeds the cost of theplan offered under division (A) of this section;

(2) Change from one of the plans to another at a time eachyear as determined by the board.

(C) Section 307.86 of the Revised Code does not apply tothe purchase of benefits for county officers or employees underdivisions (A) and (B) of this section when those benefits areprovided through a jointly administered health and welfare trustfund in which the county or contracting authority and acollective bargaining representative of the county employees orcontracting authority agree to participate.

(D) The board of trustees of a jointly administered trustfund that receives contributions pursuant to collectivebargaining agreements entered into between the board of countycommissioners of any county and a collective bargainingrepresentative of the employees of the county may provide forself-insurance of all risk in the provision of fringe benefits,and may provide through the self-insurance method specific fringebenefits as authorized by the rules of the board of trustees ofthe jointly administered trust fund. The fringe benefits mayinclude, but are not limited to, hospitalization, surgical care,major medical care, disability, dental care, vision care, medicalcare, hearing aids, prescription drugs, group life insurance,sickness and accident insurance, group legal services, or acombination of any of the foregoing types of insurance orcoverage, for county employees and their dependents.

(E) The board of county commissioners may provide thebenefits described in divisions (A) to (D) of this sectionthrough an individual self-insurance program or a jointself-insurance program as provided in section 9.833 of theRevised Code.

(F) When a board of county commissioners offers health benefits authorizedunder this section to an a county officer or employee ~~of the county~~, the board mayoffer the benefits through a cafeteria plan meeting the requirements ofsection 125 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26U.S.C.A. 125, as amended, and, as part of that plan, may offer the county officer oremployee the option of receiving a cash payment in any form permissible undersuch cafeteria plans. A cash payment made to an a county officer or employee underthis division shall not exceed twenty-five per cent of the cost of premiums orpayments that otherwise would be paid by the board for benefits for the countyofficer or employee under a policy or plan.

(G) The board of county commissioners may establish a policy authorizing anycounty appointing authority to make a cash payment to any county officer or employeein lieu of providing a benefit authorized under this section if the county officer oremployee elects to take the cash payment instead of the offered benefit. Acash payment made to an a county officer or employee under this division shall notexceed twenty-five per cent of the cost of premiums or payments that otherwisewould be paid by the board for benefits for the county officer or employee under anoffered policy or plan.

(H) No cash payment in lieu of a health benefit shall be made to a countyofficer or employee under division (F) or (G) of this section unless the countyofficer or employee signs a statement affirming that the county officeror employee is covered under another health insurance or health carepolicy, contract, or plan, and setting forth the name of the employer, if any,that sponsors the coverage, the name of the carrier that provides thecoverage, and the identifying number of the policy, contract, or plan.

~~(a) "County-operated municipal court" and "legislativeauthority" have the same meanings as in section 1901.03 of theRevised Code.~~

~~(b) "Health care coverage" has the same meaning as insection 1901.111 of the Revised Code.~~

~~(2)~~ The legislative authority of a county-operatedmunicipal court, after consultation with the judges, or the clerkand deputy clerks, of the municipal court, shall negotiate andcontract for, purchase, or otherwise procure, and pay the costs,premiums, or charges for, group health care coverage for thejudges, and group health care coverage for the clerk and deputyclerks, in accordance with section 1901.111 or 1901.312 of theRevised Code.

(1) "County officer or employee" includes, but is not limited to, a member or employee of the county board of elections.

(2) "County-operated municipal court" and "legislative authority" have the same meanings as in section 1901.03 of the Revised Code.

(3) "Health care coverage" has the same meaning as in section 1901.111 of the Revised Code.

Sec. 305.28. If a board of county commissioners by resolution elects to participate in a criminal justice regional information system as provided in section 2949.093 of the Revised Code, the board also shall create in its county treasury a criminal justice regional information fund. All money deposited into the fund shall be used only as provided in that section.

Sec. 306.331. Notwithstanding section 306.33 of the Revised Code, the board of trustees of any regional transit authority created by one county and two municipal corporations, with the county having a population of at least five hundred thousand according to the most recent federal census, shall be appointed and governed as provided in this section.

The board of trustees of such a regional transit authority shall consist of nine members, six of whom shall be appointed by the board of county commissioners, two of whom shall be appointed by the most populous municipal corporation that is included in the regional transit authority, and one of whom shall be appointed by the second most populous municipal corporation in the county, regardless of whether the second most populous municipal corporation in the county is a member of the regional transit authority. A trustee appointed under this section shall serve at the pleasure of the appointing authority.

The trustees of any authority first appointed under this section shall serve staggered terms. Thereafter each successor shall serve a term of three years, except that any person appointed to fill a vacancy shall be appointed to only the unexpired term. The resolutions or ordinances creating the regional transit authority may determine whether an appointed trustee is eligible for reappointment.

A majority of the board of trustees constitutes a quorum, the affirmative vote of which is necessary for any action taken by the authority. No vacancy in the board shall impair the rights of a quorum to exercise all rights and perform all the duties of the authority.

Each member of the board of trustees, before entering upon the trustee's official duties, shall take and subscribe to an oath or affirmation that the trustee will honestly, faithfully, and impartially perform the duties of office and that the trustee will not be personally interested directly or indirectly in any contract let by the regional transit authority.

After each member of the board has taken the oath as prescribed by this section, the board shall meet and organize by electing one of its members as president and another as vice-president, who shall hold their respective offices until the next annual meeting of the board as provided in its bylaws. At each annual meeting thereafter, the board shall elect from its membership a president and a vice-president who shall serve for a term of one year. The board shall hold regular and special meetings in a time, place, and manner established in its bylaws, provided that all meetings shall be open to the public except executive sessions as set forth in section 122.22 of the Revised Code.

The board shall appoint and fix the compensation of a secretary-treasurer, who shall be the fiscal officer. The secretary-treasurer shall not be a member of the board and shall serve at the pleasure of the board. Each member of the board of trustees is entitled to receive from the regional transit authority reimbursement for reasonable expenses in the performance of the trustee's duties.

Sec. 307.37. (A)As used in division (B)(3) of this section, "proposednewconstruction" means a proposal to erect, construct, repair, alter,redevelop, or maintain a single-family, two-family, orthree-family dwelling or any structure that is regulated by the Ohio building code.

(B)(1)(a) The board of county commissioners may adopt local residential building regulations governing residential buildings as defined in section 3781.06 of the Revised Code, to be enforced within the unincorporated area of the county or within districts the board establishes in any part of the unincorporated area. No local residential building regulation shall differ from the state residential building code the board of building standards establishes pursuant to Chapter 3781. of the Revised Code unless the regulation addresses subject matter not addressed by the state residential building code or is adopted pursuant to section 3781.01 of the Revised Code.

(b) The board of county commissioners may, by resolution, adopt, administer, and enforce within the unincorporated area of the county, or within districts the board establishes in the unincorporated area, an existing structures code pertaining to the repair and continued maintenance of structures and the premises of those structures provided that the existing structures code governs subject matter not addressed by, and is not in conflict with, the state residential building code adopted pursuant to Chapter 3781. of the Revised Code. The board may adopt by ~~incorpoation~~ incorporation by reference a model or standard code prepared and promulgated by the state, any agency of this state, or any private organization that publishes a recognized or standard existing structures code.

(c) The board shall assign the duties of administering and enforcing any local residential building regulations or existing structures code to a county officer or employee who is trained and qualified for those duties and shall establish by resolution the minimum qualifications necessary to perform those duties.

(2) The board may adopt regulations forparticipation in the national flood insurance program establishedin the"Flood Disaster Protection Act of 1973," 87 Stat. 975, 42U.S.C.A. 4002, as amended, and regulations adopted for thepurposes of section 1506.04 or 1506.07 of the Revised Codegoverning the prohibition, location, erection, construction,redevelopment, or floodproofing of new buildings or structures,substantial improvements to existing buildings or structures, orother development in unincorporated territory within flood hazardareas identified under the"Flood Disaster Protection Act of1973," 87 Stat. 975, 42 U.S.C.A. 4002, as amended, or withinLakeErie coastal erosion areas identifiedunder section 1506.06 oftheRevised Code, including, but not limited to, residential,commercial, institutional, or industrial buildings or structuresor other permanent structures, as defined in section1506.01 of the Revised Code. Rules adopted under division(B)(2)of this section shall not conflict with the state residential and nonresidentialbuilding codes adopted pursuant to section 3781.10 of the Revised Code.

(3)(a)A board may adopt regulations thatprovidefor a review of the specific effects of a proposed newconstruction onexisting surface orsubsurface drainage.Theregulations mayrequire reasonable drainage mitigation andreasonable alteration of aproposed new construction before abuildingpermit is issued in orderto prevent orcorrect anyadverseeffects that the proposed new construction mayhaveonexistingsurface or subsurface drainage. The regulations shall not be inconsistent with, more stringent than, or broader in scope than standards adopted by the natural resource conservation service in the United States department of agriculture concerning drainage or rules adopted by the environmental protection agency for reducing, controlling, or mitigating storm water runoff from construction sites, where applicable. The regulations shall allow a person who is registered under Chapter 4703. or 4733. of the Revised Code to prepare and submit relevant plans and other documents for review, provided that the person is authorized to prepare the plans and other documents pursuant to the person's registration.

(b) If regulations are adopted under division (B)(3) of thissection, the board shall specify in the regulations a procedurefor the review of the specific effects of a proposed newconstruction onexisting surface or subsurface drainage. Theprocedure shallinclude at a minimum all of the following:

(i) A meeting at which the proposed new construction shallbeexamined for those specific effects. The meeting shall be heldwithinthirty days after an application for a building permit isfiled or a review is requestedunless the applicant agrees in writing to extend that timeperiodor to postpone the meeting to another date, time, or place.Themeeting shall be scheduled within five days after anapplicationfor a building permit is filed or a review is requested.

(ii) Written notice of the date, time, and place of thatmeeting, sent by regular mail to the applicant. The writtennotice shall be mailed at least seven days before the scheduledmeeting date.

(iii) Completion of the review by the board of countycommissioners not later than thirty days after the application fora building permit is filed or a review is requested unless the applicant has agreed inwriting to extend that time period or postpone the meeting to alater time, in which case the review shall be completed not laterthan two days after the date of the meeting. A complete reviewshall include the issuance of any order of the board of countycommissioners regarding necessary reasonable drainage mitigationandnecessary reasonable alterations to the proposednewconstructionto prevent or correct any adverse effects on existingsurfaceorsubsurface drainage so long as those alterations comply with the state residential and nonresidential building codes adopted pursuant to section 3781.10 of the Revised Code. If the review is not completedwithin thethirty-day period or an extended or postponed periodthat theapplicant has agreed to, the proposed new constructionshall bedeemedto have no adverse effects on existing surface orsubsurfacedrainage, and those effects shall not be a valid basisfor the denial of abuilding permit.

(iv) A written statement, provided to the applicant at themeeting or in an order for alterations to a proposed newconstruction,informing the applicant of the right to seekappellate review ofthe denial of a building permit under division(B)(3)(b)(iii) ofthis section by filing a petition in accordancewith Chapter 2506.of the Revised Code.

(c) The regulations may authorize the board, after obtaining the advice of the county engineer, to enter intoan agreement with the countyengineer or anotherqualifiedpersonorentity to carry outany necessaryinspections and makeevaluations about what, if any,alterationsarenecessary toprevent or correct any adverseeffects that aproposednewconstruction mayhave on existingsurface orsubsurface drainage.

(d) Regulations adopted pursuant to division (B)(3) of thissection shall not apply to any property that a platting authority has approved under section 711.05, 711.09, or 711.10 of the Revised Code and shall not govern the same subject matter as the state residential or nonresidential building codes adopted pursuant to section 3781.10 of the Revised Code.

(e) As used in division (B)(3) of this section, "subsurfacedrainage" does not include a household sewage treatment system asdefined in section 3709.091 of the Revised Code.

(C)(1) Any regulation, code, or amendment may be adopted under thissection only after a public hearing at not fewer than two regular or specialsessions of the board. The board shall cause notice of any public hearing to be published inanewspaper of general circulation in the county once a week for the two consecutive weeks immediately preceding the hearing, except that if the board posts the hearing notice on the board's internet site on the world wide web, the board need publish only one notice of the hearing in a newspaper of general circulation if that newspaper notice includes the board's internet site and a statement that the notice is also posted on the internet site. Any notice of apublic hearing shall include the time, date, and place of the hearing.

(2) Any proposed regulation, code, or amendment shall be made available tothe public at the board office. The regulations or amendmentsshall take effect on the thirty-first day following the date oftheir adoption.

(D)(1) No person shall violate any regulation, code, or amendment theboard adopts under sections 307.37 to 307.40 of the Revised Code.

(2) Each day during which an illegal location, erection,construction, floodproofing, repair, alteration, development,redevelopment, or maintenance continues may be considered aseparate offense.

(E) Regulationsor amendments the board adopts pursuant to this section, with the exception of an existing structures code, donotaffect buildings or structures that exist or onwhichconstruction has begun on or before the date the board adopts the regulationoramendment.

(F)(1) The board may create a building department and employ the personnel it determines necessary to administer and enforce any local residential building regulations or existing structures code the board adopts pursuant to this section. The building department may enforce the state residential and nonresidential building codes adopted pursuant to Chapter 3781. of the Revised Code if the building department is certified pursuant to section 3781.10 of the Revised Code to enforce those codes.

(2) The board may direct the buildingdepartment, upon certification, to exercise enforcement authority and to accept andapprove plans pursuant to sections 3781.03 and 3791.04 of theRevised Code for the class of building for which the department and personnel are certified.

(1) "Food and beverages" means any raw, cooked, or processed edible substance used or intended for use in whole or in part for human consumption, including ice, water, spirituous liquors, wine, mixed beverages, beer, soft drinks, soda, and other beverages.

(2) "Convention facilities authority" has the same meaning as in section 351.01 of the Revised Code.

(3) "Convention center" has the same meaning as in section 307.695 of the Revised Code.

(B) The legislative authority of a county with a population of one million two hundred thousand or more according to the most recent federal decennial census or the most recent annual population estimate published or released by the United States census bureau at the time the resolution is adopted placing the levy on the ballot, may, by resolution adopted on or before July 1, 2008, by a majority of the members of the legislative authority and with the subsequent approval of a majority of the electors of the county voting upon it, levy a tax of not more than two per cent on every retail sale in the county of food and beverages to be consumed on the premises where sold to pay the expenses of administering the tax and to provide revenues for paying the direct and indirect costs of constructing, improving, expanding, equipping, financing, or operating a convention center. The resolution shall direct the board of elections to submit the question of levying the tax to the electors of the county at the next primary or general election in the county occurring not less than seventy-five days after the resolution is certified to the board of elections. The legislative authority shall establish all rules necessary to provide for the administration and allocation of the tax. The rules may prescribe the time for payment of the tax and may provide for imposition of a penalty, interest, or both for late payments, but any such penalty shall not exceed ten per cent of the amount of tax due and the rate at which interest accrues shall not exceed the rate per annum required under section 5703.47 of the Revised Code.

(C) A tax levied under this section shall remain in effect for the period of time specified in the resolution or ordinance levying the tax, but not for a longer period than forty years.

(D) A tax levied under this section is in addition to any other tax levied under Chapter 307., 4301., 4305., 5739., 5741., or any other chapter of the Revised Code. "Price," as defined in sections 5739.01 and 5741.01 of the Revised Code, does not include any tax levied under this section and any tax levied under this section does not include any tax imposed under Chapter 5739. or 5741. of the Revised Code.

(E) Any amount collected from a tax levied under this section may be contributed to a convention facilities authority created before July 1, 2005, but no amount collected from a tax levied under this section may be contributed to a convention facilities authority, corporation, or other entity created after July 1, 2005, unless the mayor of the municipal corporation in which the convention center is to be operated by that convention facilities authority, corporation, or other entity has consented to the creation of that convention facilities authority, corporation, or entity.

(F) The levy of any taxes under Chapter 5739. of the Revised Code on the same transactions subject to a tax under this section does not prevent the levy of a tax under this section.

Sec. 307.695. (A) As used in this section, "conventioncenter" means any structure expressly designed and constructedforthe purposes of presenting conventions, public meetings, andexhibitions and includes parking facilities that serve the centerand any personal property used in connection with any suchstructure or facilities.

(B) A board of county commissioners may enter into anagreement with a convention and visitors' bureau operating in thecounty under which:

(1) The bureau agrees to construct and equip a conventioncenter in the county and to pledge and contribute from the taxrevenues received by it under division (A) of section5739.09 ofthe Revised Code, not more than such portion thereof that it isauthorized to pledge and contribute for the purposedescribed indivision (C) of this section; and

(2) The board agrees to levy a tax under division (C) ofsection5739.09 of the Revised Code and pledge andcontributetherevenues therefrom for the purpose described indivision (C)ofthis section.

(C) The purpose of the pledges and contributions describedin divisions (B)(1) and (2) of this section is payment ofprincipal, interest, and premium, if any, on bonds and notesissued by or for the benefit of the bureau to finance theconstruction and equipping of a convention center. The pledgesand contributions provided for in the agreement shall be for theperiod stated in the agreement, but not to exceed thirty years.Revenues determined from time to time by the board to be neededtocover the real and actual costs of administering the taximposedby division (C) of section5739.09 of the Revised Codemay not bepledged or contributed. The agreement shall providethat any suchbonds and notes shall be secured by a trustagreement between thebureau or other issuer acting for thebenefit of the bureau and acorporate trustee that is a trustcompany or bank having thepowers of a trust company within orwithout the state, and thetrust agreement shall pledge or assignto the retirement of thebonds or notes, all moneys paid by thecounty under this section.A tax the revenues from which arepledged under an agreemententered into by a board of countycommissioners under this sectionshall not be subject todiminution by initiative or referendum, ordiminution by statute,unless provision is made therein for anadequate substitutetherefor reasonably satisfactory to thetrustee under the trustagreement that secures the bonds andnotes.

(D) A pledge of money by a county under this section shallnot be indebtedness of the county for purposes of Chapter 133. ofthe Revised Code.

(E) If the terms of the agreement so provide, the board ofcounty commissioners may acquire and lease real property to theconvention bureau as the site of the convention center. Theleaseshall be for a term not to exceed thirty years and shall beonsuch terms as are set forth in the agreement. The purchaseandlease are not subject to the limitations of sections 307.02and307.09 of the Revised Code.

(F) In addition to the authority granted to a board of county commissioners under divisions (B) to (E) of this section, a board of county commissioners in a county with a population of one million two hundred thousand or more may establish and provide local funding options for constructing and equipping a convention center.

Sec. 307.86. Anything to be purchased, leased, leased withan option or agreement to purchase, or constructed, including,butnot limited to, any product, structure, construction,reconstruction, improvement, maintenance, repair, or service,except the services of an accountant, architect, attorney at law,physician, professional engineer, construction project manager,consultant, surveyor, or appraiser, by or on behalf of the countyor contracting authority, as defined in section 307.92 of theRevised Code, at a cost in excess of twenty-five thousand dollars,exceptas otherwise provided in division (D) of section 713.23 andinsections 125.04, 125.60 to 125.6012, 307.022, 307.041, 307.861, 339.05, 340.03,340.033,4115.31 to 4115.35, 5119.16, 5513.01, 5543.19, 5713.01,and6137.05 of the Revised Code, shall be obtained throughcompetitive bidding. However, competitive bidding is notrequiredwhen any of the following applies:

(A) The board of county commissioners, by a unanimous voteof its members, makes a determination that a real and presentemergency exists, and that determination and thereasons for itare entered in the minutes of the proceedings of the board, wheneither ofthe following applies:

(2) There is actual physical disaster to structures, radiocommunicationsequipment, or computers.

For purposes of this division, "unanimous vote" means allthree members ofa board of county commissioners when all threemembers are present, or twomembers of the board if only twomembers, constituting a quorum, are present.

Whenever a contract of purchase, lease, or construction isexempted from competitive bidding under division (A)(1) of thissection because the estimated cost is less than fifty thousanddollars, but the estimated cost is twenty-five thousand dollars ormore,the county or contracting authority shall solicit informalestimates from no fewer than three persons who could perform thecontract, before awarding the contract. With regard to each suchcontract, the county or contracting authority shall maintain arecord of such estimates, including the name of each person fromwhom an estimate is solicited. The county or contractingauthority shall maintain the record for the longerof at least oneyear afterthe contract is awarded or the amount of time thefederal governmentrequires.

(B)(1) The purchase consists of supplies or a replacement orsupplemental part or parts for a product or equipment owned orleased by the county, and the only source of supply for thesupplies, part, or parts is limited to a single supplier.

(2) The purchase consists of services related to information technology, such as programming services, that are proprietary or limited to a single source.

(C) The purchase is from the federal government, the state,another county or contracting authority of another county, or aboard ofeducation, township, or municipal corporation.

(D) The purchase is made by a county department of job and family services under section 329.04 of the Revised Code and consists of family services duties or workforce developmentactivities or is made by a county board of mental retardation and developmental disabilities under section 5126.05 of the Revised Code and consists of program services, such as direct andancillary client services,child care, case managementservices, residential services,and family resource services.

(E) The purchase consists ofcriminal justice services,social services programs, family services,or workforcedevelopment activities bythe board of county commissioners fromnonprofit corporations orassociations under programsfunded bythefederal governmentor by state grants.

(F) The purchase consists of any form of an insurancepolicyor contract authorized to be issued under Title XXXIX oftheRevised Code or any form of health care planauthorized to beissued under Chapter 1751. of the Revised Code, or anycombinationof such policies,contracts, or plans that the contractingauthority is authorizedto purchase, and the contracting authoritydoes all of thefollowing:

(1) Determines that compliance with the requirements ofthissection would increase, rather than decrease, the cost ofthepurchase;

(2) Employs a competent consultant to assist thecontractingauthority in procuring appropriate coverages at thebest andlowest prices;

(3) Requests issuers ofthe policies, contracts, orplansto submit proposals to the contracting authority, in a formprescribed by the contracting authority, setting forth thecoverage and cost ofthe policies, contracts, or plans as thecontracting authority desires to purchase;

(4) Negotiates withthe issuers for the purpose ofpurchasingthe policies, contracts, or plans at the best andlowest price reasonably possible.

(G) The purchase consists of computer hardware, software,orconsulting services that are necessary to implement acomputerizedcase management automation project administered bythe Ohioprosecuting attorneys association and funded by a grantfrom thefederal government.

(I)(1) Property, including land, buildings, and other realproperty, is leased for offices, storage, parking, or otherpurposes, and all of the following apply:

(a) The contracting authority is authorized by the RevisedCode to lease theproperty.

(b) The contracting authority develops requests forproposals for leasing the property, specifying the criteria thatwill be considered prior to leasing the property, including thedesired size and geographic location of the property.

(c) The contracting authority receives responses fromprospective lessors with property meeting the criteria specifiedin the requests for proposals by giving notice in a mannersubstantially similar to the procedures established for givingnotice under section 307.87 of the Revised Code.

(d) The contracting authority negotiates with theprospective lessors to obtain a lease at the best and lowestpricereasonably possible considering the fair market value oftheproperty and any relocation and operational costs that may beincurredduring the period the lease is in effect.

(2) The contracting authority may use the services of arealestate appraiser to obtain advice, consultations, or otherrecommendations regarding the lease of property under thisdivision.

(J) The purchase is made pursuant to section 5139.34 orsections5139.41 to 5139.46 of the Revised Code and is of programsor services thatprovide casemanagement, treatment, or preventionservices to any felony or misdemeanantdelinquent, unruly youth,or status offender under the supervision of thejuvenile court,including, but not limited to, communityresidential care, daytreatment, services to children in their home, orelectronicmonitoring.

(K) The purchase is made by a public children servicesagency pursuant tosection 307.92 or 5153.16 of the Revised Codeand consists offamily services,programs, or ancillary servicesthat provide case management, prevention, ortreatment servicesfor children at risk of being or alleged to be abused,neglected,or dependent children.

(L) The purchase is to obtain the services of emergency medical service organizations under a contract made by the board of county commissioners pursuant to section 307.05 of the Revised Code with a joint emergency medical services district.

Any issuer of policies, contracts, or plans listed indivision (F) of this section and any prospective lessor underdivision (I) ofthis section may have the issuer's or prospectivelessor'sname and address, or the name and addressof an agent,placed on a specialnotification list to be kept by thecontracting authority, bysending the contracting authoritythatname and address. Thecontracting authority shall sendnotice toall persons listed onthe special notification list.Notices shallstate the deadlineand place for submittingproposals. Thecontracting authorityshall mail the notices atleast six weeksprior to the deadlineset by the contractingauthority forsubmitting proposals. Every five years thecontracting authoritymay review this listand remove any personfrom the list aftermailing the personnotification ofthataction.

Any contracting authority that negotiates a contract underdivision (F) of this section shall request proposals andrenegotiate with issuers in accordance with that division atleastevery three years from the date of the signing of such acontract.

Any consultant employed pursuant to division (F) of thissection and any real estate appraiser employed pursuant todivision (I) ofthis section shall disclose any fees orcompensation received from anysource in connection with thatemployment.

Sec. 307.88. (A) Bids submitted pursuant to sections307.86 to 307.92 of the Revised Code shall be in a formprescribed by the contracting authority and filed in a sealedenvelope at the time and place mentioned in the ~~advertisement~~ notice.The bids received shall be opened and tabulated at the timestated in the notice. Each bid shall contain the full name ofeach person submitting the bid. ~~Except as otherwise provided indivision (B) of this section, if~~ If the bid is in excess of ~~ten~~ twenty-fivethousand dollars and for a contract for the construction,demolition, alteration, repair, or reconstruction of animprovement, it shall meet the requirements of section 153.54 ofthe Revised Code. If the bid is in excess of ~~ten~~ twenty-five thousanddollars and for any other contract authorized by sections 307.86to 307.92 of the Revised Code, it shall be accompanied by a bondor certified check, cashier's check, or money order on a solventbank or savings and loan association in a reasonable amountstated in the ~~advertisement~~ notice but not to exceed five per cent ofthe bid, conditioned that ~~he shall~~ the bidder, if ~~his~~the bidder's bid is accepted, shall execute a contract in conformity to theinvitation and ~~his~~ the bid.

(B) The board of county commissioners ~~may~~, by a unanimousvote of the entire board, may permit a contracting authority toexempt a bid from any or all of the requirements of section153.54 of the Revised Code if the estimated cost is ~~less than~~twenty-five thousand dollars or less. If the board exempts a bid fromany but not all of ~~these~~ those requirements, the bid notice publishedin the newspaper pursuant to section 307.87 of the Revised Codeshall state the specific bid guaranty requirements that apply.If the board exempts a bid from all requirements of section153.54 of the Revised Code, the notice shall state that none ofthe requirements of that section apply.

Sec. 317.08. (A) Except as provided indivisions(C) and (D) of thissection, the county recorder shall keepsixseparate setsofrecords as follows:

(1) A record of deeds, in which shall be recorded alldeedsand other instruments of writing for the absolute andunconditional sale or conveyance of lands, tenements, andhereditaments; all notices as provided in sections 5301.47 to5301.56 of the Revised Code; all judgments or decrees in actionsbrought under section 5303.01 of the Revised Code; alldeclarations and bylaws, and all amendments to declarations andbylaws, as provided in Chapter 5311. of theRevised Code;affidavits as provided in section 5301.252 ofthe RevisedCode; all certificates as provided in section5311.17 of theRevised Code; all articles dedicatingarchaeological preservesaccepted by the director of the Ohiohistorical society undersection 149.52 of the Revised Code; allarticles dedicating naturepreserves accepted by the director ofnatural resources undersection 1517.05 of the Revised Code; allagreements for theregistration of lands as archaeological orhistoric landmarksunder section 149.51 or 149.55 of the RevisedCode; allconveyances of conservation easements and agriculturaleasementsunder section5301.68 of the Revised Code; allinstrumentsextinguishing agriculturaleasements under section901.21 or5301.691 of the Revised Code or pursuant toterms ofsuch aneasement granted to a charitable organization undersection5301.68 of the Revised Code; all instruments or ordersdescribedin division (B)(1)(c)(ii) of section 5301.56 of theRevised Code;all no further action letters issued under section122.654 or3746.11 of theRevised Code;all covenants not to sueissued undersection3746.12 of theRevised Code, including allcovenantsnotto sue issued pursuant to section 122.654 of theRevised Code;anyrestrictions on the use of property contained ina no furtheraction letter issued under section 122.654 of theRevised Code,any restrictions on the use ofpropertyidentifiedpursuant todivision (C)(3)(a) of section3746.10 of theRevisedCode, and any restrictions on the use of property contained in a deed or other instrument as provided in division (E) or (F) of section 3737.882 of the Revised Code; any easement executed or granted under section 3734.22, 3734.24, 3734.25, or 3734.26 of the Revised Code; any environmental covenant entered into in accordance with sections 5301.80 to 5301.92 of the Revised Code; allmemoranda of trust, asdescribed in division (A)ofsection5301.255 of the RevisedCode, that describe specificrealproperty; and all agreementsentered into under division (A)ofsection 1521.26 ofthe Revised Code;

(a) All mortgages, including amendments, supplements,modifications, and extensions of mortgages, or other instrumentsof writing by which lands, tenements, or hereditaments are or maybe mortgaged or otherwise conditionally sold, conveyed, affected,or encumbered;

(b) All executory installment contracts for the sale oflandexecuted after September 29, 1961, that by their terms arenotrequired to be fully performed by one or more of the partiestothem within one year of the date of the contracts;

(c) All options to purchase real estate, includingsupplements, modifications, and amendments of the options, but nooption of that nature shall be recorded if it does not state aspecific day and year of expiration of its validity;

(d) Any tax certificate sold under section 5721.33 of theRevised Code,or memorandumof it, that is presented forfilingof record.

(3) A record of powers of attorney, including allmemorandaof trust, as described in division (A) of section5301.255 of theRevised Code, that do not describe specific realproperty;

(4) A record of plats, in which shall be recorded allplatsand maps of town lots, of the subdivision of town lots, andofother divisions or surveys of lands, any center line survey ofahighway located within the county, the plat of which shall befurnished by the director of transportation or county engineer,and all drawingsand amendments to drawings, as provided inChapter 5311. of the RevisedCode;

(5) A record of leases, in which shall be recorded allleases, memoranda of leases, and supplements, modifications, andamendments of leases and memoranda of leases;

(6) A record of declarationsexecuted pursuant to section2133.02 of theRevised Codeand durable powers of attorney forhealth care executed pursuant to section1337.12 of the RevisedCode.

(B) All instruments or memoranda of instruments entitled torecord shall be recorded in the proper record in the order inwhich they are presented for record. The recorder may index,keep, and record in one volume unemployment compensation liens,internal revenue tax liens and other liens in favor of the UnitedStates as described in division (A) of section 317.09 of theRevised Code, personal tax liens, mechanic's liens, agriculturalproduct liens, notices of liens, certificates of satisfaction orpartial release of estate tax liens, discharges of recognizances,excise and franchise tax liens on corporations, broker's liens,and liensprovided for in sections 1513.33, 1513.37, 3752.13,~~5111.021~~ 5111.022, and5311.18of the Revised Code.

The recording of an option to purchase real estate,includingany supplement, modification, and amendment of theoption, underthis section shall serve as notice to any purchaserof an interestin the real estate covered by the option onlyduring the period ofthe validity of the option as stated in theoption.

(C) In lieu of keeping the six separatesets of recordsrequired in divisions (A)(1) to(6) of this section and therecordsrequired in division(D) of this section, a countyrecorder mayrecord all the instruments required to be recorded bythissectionin two separate sets of record books. One set shallbecalled the"official records" and shall contain the instrumentslisted indivisions (A)(1),(2),(3),(5),and (6)and(D) of this section. Thesecond set of records shallcontain the instruments listed indivision(A)(4) of thissection.

(D) Except as provided in division(C)of thissection, thecounty recorder shall keep a separate set of recordscontainingall corrupt activity lien notices filed with therecorder pursuantto section 2923.36 of the Revised Code and aseparate set ofrecords containing all medicaid fraud liennoticesfiled with therecorder pursuant to section 2933.75 ofthe RevisedCode.

Sec. 317.36. (A) The county recorder shall collect the low- and moderate-income housing trust fund fee as specified in sections 317.32, 1563.42, 1702.59, 2505.13, 4141.23, 4509.60, ~~5111.021~~ 5111.022, 5310.15, 5719.07, 5727.56, 5733.18, 5733.22, 6101.09, and 6115.09 of the Revised Code. The amount of any housing trust fund fee the recorder is authorized to collect is equal to the amount of any base fee the recorder is authorized to collect for services. The housing trust fund fee shall be collected in addition to the base fee.

(B) The recorder shall certify the amounts collected as housing trust fund fees pursuant to division (A) of this section into the county treasury as housing trust fund fees to be paid to the treasurer of state pursuant to section 319.63 of the Revised Code.

Sec. 319.20. After complying with sections 319.202,315.251, and 319.203 of theRevised Code, and on application and presentation of title, withthe affidavits required by law, or the proper order of a court,bearing the last known address of the grantee, or of any one ofthe grantees named in the title, and a reference to the volumeand page of the recording of the next preceding recordedinstrument by or through which the grantor claims title, thecounty auditor shall transfer any land or town lot or partthereof, minerals therein, or mineral rights thereto, chargedwith taxes on the tax list, from the name in which it stands intothe name of the owner, when rendered necessary by a conveyance,partition, devise, descent, or otherwise. If by reason of theconveyance or otherwise, a part only of a tract or lot, mineralstherein, or mineral rights thereto, as charged in the tax list,is to be transferred, the auditor shall determine the tax valueof the part of a tract or lot of real estate, minerals therein,or mineral rights thereto, so transferred, and the value of theremaining part compared with the value of the whole.

Whenever a part only of a tract or lot of real estate hasbeen transferred by the auditor and ~~such~~ the tract or lot bearsunpaid taxes, penalties, interest, or special assessments, theunpaid taxes, penalties, interest, or special assessments shallimmediately be apportioned, upon demand or request by thetransferee or remaining owner, in the following manner:

(A) The auditor shall allocate to the part so transferred,and to the remaining part, amounts of any current or delinquenttaxes, interest, or penalties that have accrued against theparcel as a whole, proportionate to their respective values.

(B) The lien of taxes, penalties, interest, and specialassessments, as levied against the original tract, shall extendto the part so transferred and the part remaining only to theextent of the amounts so allocated to the respective parts.

This section does not change the total amount of taxes,special assessments, or other charges as originally levied, orthe total amount of the balance due. The auditor shall certifysuch apportionments to the county treasurer.

Whenever the state acquires an entire parcel or a part onlyof a parcel of real property in fee simple, the county auditor,upon application of the grantor or property owner or the state,which application shall contain a description of the property asit appears on the tax list and the date of transfer of ownership,shall prepare an estimate of the taxes that are a lien on ~~said~~the property, but have not been determined, assessed, and levied forthe year in which the property was acquired. The county auditorshall thereupon apportion ~~such~~ the estimated taxes proportionatelybetween the grantor and the state for the period of the lien yearthat each had or shall have had ownership or possession of theproperty, whichever is earlier. The county treasurer shall accept payment from the state for estimated taxes at the time that the real property is acquired. If the state has paid in full in the year in which the property is acquired that proportion of the estimated taxes that the tax commissioner determines are not subject to remission by the county auditor for such year under division (C) of section 5713.08 of the Revised Code, the estimated taxes paid shall be considered the tax liability on the exempted property for that year.

Section 319.42 of the Revised Code applies to theapportionment of special assessments.

Complaint against such values as determined by the auditoror the allocation of assessments by the certifying authority maybe filed by the transferee or the remaining owner, and if filed,proceedings including appeals shall be had in the manner andwithin the time provided by sections 5717.01 to 5717.06 and5715.19 to 5715.22 of the Revised Code, for complaints againstvaluation or assessment of real property.

The auditor shall endorse on the deed or other evidences oftitle presented to the auditor that the proper transfer of the realestate described in ~~such~~ the deed has been made in the auditor's officeor thatit is not entered for taxation, and sign the auditor's name to ~~such~~the deed. The address of the grantee, or any one of the grantees, set forthin the deed or other evidences of title shall be entered by theauditor on the transfer sheets and on the general tax list ofreal property prepared pursuant to section 319.28 of theRevised Code.

Sec. 319.302. (A)(1) Real property that is not intended primarily for use in a business activity shall qualify for a partial exemption from real property taxation. For purposes of this partial exemption, "business activity" includes all uses of real property, except farming; leasing property for farming; occupying or holding property improved with single-family, two-family, or three-family dwellings; leasing property improved with single-family, two-family, or three-family dwellings; or holding vacant land that the county auditor determines will be used for farming or to develop single-family, two-family, or three-family dwellings. For purposes of this partial exemption, "farming" does not include land used for the commercial production of timber that is receiving the tax benefit under section 5713.23 or 5713.31 of the Revised Code and all improvements connected with such commercial production of timber.

(2) Each year, the county auditor shall review each parcel of real property to determine whether it qualifies for the partial exemption provided for by this section as of the first day of January of the current tax year.

(B) After complying with section 319.301 of theRevised Code, thecounty auditor shall reduce the remaining sumsto be levied against each parcel of real property that is listed on thegeneral tax list and duplicate of real and public utilityproperty for the current tax year and that qualifies for partial exemption under division (A) of this section, and against each manufacturedand mobile home that istaxed pursuant to division (D)(2) of section4503.06 of the Revised Code and that is on themanufactured home tax list for the current tax year, by ten percent, to provide a partial exemption for that parcel or home. Except as otherwise provided in sections 323.152, 323.158, 505.06,and 715.263 of the Revised Code, theamount of the taxes remaining after any such reduction shall be thereal and public utility property taxes charged and payable on each parcel of real property, including property that does not qualify for partial exemption under division (A) of this section, and themanufactured home tax charged and payable, oneach ~~property~~ manufactured or mobile home, and shall be the amounts certified to the countytreasurer for collection. Upon receipt of the tax duplicate, thetreasurer shall certify to the tax commissioner the total amountby which taxes were reduced under this section, as shown onthe duplicate. Such reduction shall not directly or indirectlyaffect the determination of the principal amount of notes thatmay be issued in anticipation of any tax levies or the amount ofbonds or notes for any planned improvements. If afterapplication of sections 5705.31 and 5705.32 of the Revised Codeand other applicable provisions of law, including divisions (F) and (I) ofsection 321.24 of the Revised Code, there would be insufficientfunds for payment of debt charges on bonds or notes payable fromtaxes reduced by this section, the reduction of taxes providedfor in this section shall be adjusted to the extent necessary toprovide funds from such taxes.

(C) The tax commissioner may adopt rules governing the administration of the partial exemption provided for by this section.

(D) The determination of whether property qualifies for partial exemption under division (A) of this section is solely for the purpose of allowing the partial exemption under division (B) of this section.

Sec. 321.24. (A) On or before the fifteenth day ofFebruary, in each year, the county treasurer shall settle withthecounty auditor for all taxes and assessments that thetreasurerhascollected on the general duplicate of real and public utilityproperty at the time of making the settlement.

(B) On or before the thirtieth day of June, in each year,the treasurer shall settle with the auditor for all advancepayments of general personal and classified property taxes thatthe treasurer has received at the time of making thesettlement.

(C) On or before the tenth day of August, in each year,thetreasurer shall settle with the auditor for all taxes andassessments that the treasurer has collected on the generalduplicates ofreal and public utility property at the time ofmaking suchsettlement, not included in the preceding Februarysettlement.

(D) On or before the thirty-first day of October, in eachyear, the treasurer shall settle with the auditor for all taxesthat the treasurer has collected on the general personal andclassifiedproperty duplicates, and for all advance payments ofgeneralpersonal and classified property taxes, not included inthepreceding June settlement, that the treasurer has received atthe time ofmaking such settlement.

(E) In the event the time for the payment of taxes isextended, pursuant to section 323.17 of the Revised Code, thedateon or before which settlement for the taxes so extended mustbemade, as herein prescribed, shall be deemed to be extended foralike period of time. At each such settlement, the auditorshallallow to the treasurer, on the moneys received or collectedandaccounted for by the treasurer, thetreasurer's fees, at therate or percentageallowed by law, at a full settlement of thetreasurer.

(F) Within thirty days after the day of each settlement oftaxes required under divisions (A) and (C) of this section, thetreasurer shall certify to the tax commissioner any adjustments~~which~~ that have been made to the amount certified previously pursuantto section 319.302 of the Revised Code and that the settlementhasbeen completed. Upon receipt of such certification, thecommissioner shall provide for payment to the county treasurerfrom the general revenue fund of an amount equal to one-half ofthe amount certified by the treasurer in the preceding tax yearunder section 319.302 of the Revised Code, less one-half of the amount computed for all taxing districts in that county for the current fiscal year under section 5703.80 of the Revised Code for crediting to the property tax administration fund. Such payment shall becredited upon receipt to the county's undivided income tax fund,and the county auditor shall transfer to the county general fundfrom the amount thereof the total amount of all fees and chargeswhich the auditor and treasurer would have been authorized toreceive had such section not been in effect and thatamount hadbeen levied and collected as taxes. The county auditor shalldistribute the amount remaining among the various taxingdistrictsin the county as if it had been levied, collected, andsettled asreal property taxes. The amount distributed to each taxing district shall be reduced by the total of the amounts computed for the district under ~~divisions (A), (B), and (C) of~~ section 5703.80 of the Revised Code, but the reduction shall not exceed the amount that otherwise would be distributed to the taxing district under this division. The tax commissioner shall make available to taxing districts such information as is sufficient for a taxing district to be able to determine the amount of the reduction in its distribution under this section.

(G)(1) Within thirty days after the day of the settlementrequired in division (D) of this section, the county treasurer shall notify the tax commissioner that the settlement has beencompleted. Upon receipt of that notification, the commissionershall provide for payment to the county treasurer from thegeneralrevenue fund of an amount equal to the amount certified under former section319.311 of theRevised Code and paid in the state's fiscal year 2003 multiplied by the percentage specified in division (G)(2) of this section. The paymentshall be creditedupon receipt to the county's undivided incometax fund, and thecounty auditor shall distribute the amountthereof among thevarious taxing districts of the county as if ithad been levied,collected, and settled as personal propertytaxes. The amountreceived by a taxing district under thisdivision shall beapportioned among its funds in the sameproportion as the currentyear's personal property taxes areapportioned.

(2) Payments required under division (G)(1) of this section shall be made at the following percentages of the amount certified under former section 319.311 of the Revised Code and paid under division (G)(1) of this section in the state's fiscal year 2003:

After fiscal year ~~2012~~ 2009, no payments shall be made under division (G)(1) of this section.

(H)(1) On or before the fifteenth day of April eachyear,the county treasurer shall settle with the county auditor for allmanufactured home taxes that the county treasurer hascollected onthemanufactured home tax duplicate at the time of making thesettlement.

(2) On or before the fifteenth day of September each year,thecounty treasurer shall settle with the county auditor for allremaining manufactured home taxes that the countytreasurer hascollected on the manufactured home tax duplicate atthe time ofmaking the settlement.

(3) If the time for payment of such taxes is extended undersection 4503.06 of the Revised Code, the time for making thesettlement as prescribed by divisions (H)(1) and (2) of thissection is extended for a like period of time.

(I) Within thirty days after the day of each settlement oftaxes required under division (H) of this section, the county treasurershall certify to the tax commissioner any adjustments that havebeen made to the amount certified previously pursuant to section319.302 of the Revised Code and that the settlement has beencompleted. Upon receipt of such certification, the commissionershall provide for payment to the county treasurer from the generalrevenue fund of an amount equal to one-half of the amountcertified by the treasurer in the current tax year under section319.302 of the Revised Code. Such payment shall be credited uponreceipt to the county's undivided income tax fund, and the countyauditor shall transfer to the county general fund from the amountthereof the total amount of all fees and charges that the auditorand treasurer would have been authorized to receive had suchsection not been in effect and that amount had been levied andcollected as taxes. The county auditor shall distribute theamount remaining among the various taxing districts in the countyas if it had been levied, collected, and settled as manufacturedhome taxes.

Sec. 323.01. Except as otherwise provided, as used inChapter 323. of the Revised Code:

(A) "Subdivision" means any county, township, schooldistrict, or municipalcorporation.

(C) "Taxes" means the total amount of all charges againstan entry appearing on a tax list and the duplicate thereof thatwas prepared and certified in accordance with section 319.28 ofthe Revised Code, including taxes levied against real estate;taxes on property whose value is certified pursuant to section5727.23 of the Revised Code; recoupment charges applied pursuantto section 5713.35 of the Revised Code; all assessments;penalties and interest charged pursuant to section 323.121 of theRevised Code; charges added pursuant to section 319.35 of theRevised Code; and all of such charges which remain unpaid fromany previous tax year.

(D) "Current taxes" means all taxes charged against anentry on the general tax list and duplicate of real and publicutility property that have not appeared on such list andduplicate for any prior tax year and any penalty thereon chargedby division (A) of section 323.121 of the Revised Code. Currenttaxes, whether or not they have been certified delinquent, becomedelinquent taxes if they remain unpaid after the last dayprescribed for payment of the second installment of current taxeswithout penalty.

(1) Any taxes charged against an entry on the general taxlist and duplicate of real and public utility property that werecharged against an entry on such list and duplicate for a priortax year and any penalties and interest charged against suchtaxes.

(2) Any current taxes charged on the general tax list andduplicate of real and public utility property that remain unpaidafter the last day prescribed for payment of the secondinstallment of such taxes without penalty, whether or not theyhave been certified delinquent, and any penalties and interestcharged against such taxes.

(F) "Current tax year" means, with respect to particulartaxes, the calendar year in which the first installment of taxesis due prior to any extension granted under section 323.17 of theRevised Code.

(1) Any sum of money due and payable, upon a writtencontractual obligation executed between the subdivision and thetaxpayer, but excluding any amount due on general and specialassessment bonds and notes;

(2) Any sum of money due and payable, fordisability financial assistance ~~or disability medical assistance~~ provided under Chapter5115. of the Revised Code that is furnished to or in behalf ofa subdivision, provided that such claim is recognized by aresolution or ordinance of the legislative body of suchsubdivision;

(3) Any sum of money advanced and paid to or received andused by a subdivision, pursuant to a resolution or ordinance ofsuch subdivision or its predecessor in interest, and the moralobligation to repay which sum, when in funds, shall be recognizedby resolution or ordinance by the subdivision.

Sec. 323.152. In addition to the reduction in taxesrequiredunder section 319.302 of the Revised Code, taxes shallbe reducedas provided in divisions (A) and(B) of this section.

(c) A person who is the surviving spouse of a deceasedperson who was permanently and totally disabled or sixty-fiveyears of age or older and who applied and qualified for areduction in taxes under this division in the year of death,provided thesurviving spouse is at least fifty-nine but notsixty-five or more years ofage on the date the deceased spousedies.

(2) Real property taxes on a homestead owned and occupied,or ahomestead in a housing cooperative occupied, by aperson towhom division (A) of this sectionapplies shall be reduced foreach year for which the owner obtains a certificate of reductionfrom the county auditor under section 323.154 of the RevisedCodeor for which the occupant obtains a certificate of reduction inaccordance withsection 323.159 of the Revised Code. Thereductionshall equal the amount obtained bymultiplying the taxrate for the tax year for which thecertificate is issued by thereduction in taxable value shown inthe following schedule:

(3) Each calendar year, the taxcommissioner shall adjustthe foregoing scheduleby completing thefollowingcalculationsin September of each year:

(a) Determine the percentage increase in the grossdomesticproduct deflator determined by the bureau of economicanalysis ofthe UnitedStates department of commercefrom the first day ofJanuary ofthe preceding calendar year to the last day ofDecember of thepreceding calendaryear;

(b) Multiply that percentage increase by each ofthe totalincome amounts, and by each dollar amount by which taxable valueisreduced, for the current tax year;

(c) Add the resulting product to each of the totalincomeamounts, and to each of the dollar amounts by which taxable valueisreduced, for the current tax year;

(d)(i) Except as provided in division (A)(3)(d)(ii) of this section, round the resulting sum to the nearestmultiple of onehundred dollars;

(ii) If rounding the resulting sum to the nearest multiple of one hundred dollars under division (A)(3)(d)(i) of this section does not increase the dollar amounts by which taxable value is reduced, the resulting sum instead shall be rounded to the nearest multiple of ten dollars.

The commissioner shall certify the amounts resulting fromtheadjustment to each county auditor not later than the firstday ofDecember each year. Thecertified amounts apply to the followingtax year. Thecommissioner shall not make the adjustment in anycalendar yearin which the amounts resulting from the adjustmentwould be lessthan the total income amounts, or less than thedollar amounts by whichtaxable value is reduced, for the currenttax year.

(B) ~~Real~~ To provide a partial exemption, real property taxes on any homestead, and manufacturedhometaxes on any manufactured or mobile home on which amanufactured home tax isassessed pursuant to division (D)(2) ofsection 4503.06 of theRevised Code, shall be reduced for eachyear forwhich the owner obtains a certificate ofreduction fromthe county auditor under section 323.154 of theRevised Code. Theamount of the reduction shall equal ~~one-fourth~~ two and one-half per centof the amount ~~bywhich the~~ of taxes ~~charged and payable~~ to be levied on thehomestead or themanufactured or mobile home ~~are reduced for such yearunder~~ after applyingsection ~~319.302~~ 319.301 of theRevised Code.

(C) The reductions granted by this section do not apply tospecial assessments or respread of assessments levied against thehomestead, and if there is a transfer of ownership subsequent tothe filing of an application for a reduction in taxes, suchreductions are not forfeited for such year by virtue of suchtransfer.

(D) The reductions in taxable value referred to in thissectionshall be applied solely as a factor for the purpose ofcomputingthe reduction of taxes under this section and shall notaffectthe total value of property in any subdivision or taxingdistrictas listed and assessed for taxation on the tax lists andduplicates, or any direct or indirect limitations on indebtednessof a subdivision or taxing district. If after application ofsections 5705.31 and 5705.32 of the Revised Code, including theallocation of all levies within the ten-mill limitation to debtcharges to the extent therein provided, there would beinsufficient funds for payment of debt charges not provided forbylevies in excess of the ten-mill limitation, the reduction oftaxes provided for in sections 323.151 to 323.159 ofthe RevisedCode shall be proportionately adjusted to the extent necessarytoprovide such funds from levies within the ten-mill limitation.

(E) No reduction shall be made on the taxes due on thehomestead of any person convicted of violating division (C) or(D)of section 323.153 of the Revised Code for a period of threeyearsfollowing the conviction.

Sec. 325.31. (A) On the first business day of each month,and at the end of the officer's term of office, each officernamed in section 325.27 of the Revised Code shall pay into the countytreasury, to the credit of the general county fund, on thewarrant of the county auditor, all fees, costs, penalties,percentages, allowances, and perquisites collected by theofficer's office during the preceding month or part thereof for officialservices, except the fees allowed the county auditor by division (B) ofsection 319.54 of the Revised Code, which shall be paid into thecounty treasury to the credit of the real estate assessment fundhereby created.

(B) Moneys to the credit of the real estate assessmentfund may be expended, upon appropriation by the board of countycommissioners, for the purpose of defraying one or more of the following:

(1) The costincurred by the county auditor in assessing real estate pursuantto Chapter 5713. of the Revised Code and manufactured and mobile homespursuant to Chapter 4503. of the Revised Code;

(2) At the countyauditor'sdiscretion, costs and expenses incurred by the county auditor in preparing the list of real and public utility property, in administering laws related to the taxation of real property and the levying of special assessments on real property, including administering reductions under Chapters 319. and 323. and section 4503.065 of the Revised Code, and to support assessments of real property in any administrative or judicial proceeding;

(3) At the county auditor's discretion, the expenses incurred by the county board of revision underChapter 5715. of the Revised Code;

(4) At the county auditor's discretion, the expenses incurred by the county auditor for geographic information systems, mapping programs, and technological advances in those or similar systems or programs;

(5) At the county auditor's discretion, expenses incurred by the county auditor in compiling the general tax list of tangible personal property and administering tangible personal property taxes under Chapters 5711. and 5719. of the Revised Code;

(6) At the county auditor's discretion, costs, expenses, and fees incurred by the county auditor in the administration of estate taxes under Chapter 5731. of the Revised Code and the amounts incurred under section 5731.41 of the Revised Code.

Any expenditures made fromthe real estate assessment fund shall comply with rules that thetax commissioner adopts under division (O) of section 5703.05 ofthe Revised Code. Those rules shall include a requirement that acopy of any appraisal plans, progress of work reports, contracts,or other documents required to be filed with the tax commissionershall be filed also with the board of county commissioners.

The board of county commissioners shall not transfer moneysrequired to be deposited in the real estate assessment fund toany other fund. Following an assessment of real propertypursuant to Chapter 5713. of the Revised Code, or an assessment of amanufactured or mobile home pursuant to Chapter 4503.of the Revised Code, any moneys notexpended for the purpose of defraying the cost incurred inassessing real estate or manufactured or mobile homes or for thepurpose of defraying the expenses described in divisions (B)(2), (3), (4), (5), and (6) of this section, and thereby remaining to the credit of thereal estate assessment fund, shall be apportioned ratably anddistributed to those taxing authorities that contributedto the fund. However, no such distribution shall be made if the amountof such unexpended moneys remaining to the credit of the realestate assessment fund does not exceed five thousand dollars.

(C) None of the officers named in section 325.27 of theRevised Code shall collect any fees from the county. Each ofsuch officers shall, at the end of each calendar year, make andfile a sworn statement with the board of county commissioners ofall such fees, costs, penalties, percentages, allowances, andperquisites which have been due in the officer's office andunpaid for more than one year prior to the date such statement is required tobe made.

Sec. 329.04. (A) The county department of job and familyservices shallhave, exercise, and perform the following powersand duties:

(1) Perform any duties assigned bythe state department ofjob and family servicesregarding the provision of public familyservices, including the provision of the following servicestoprevent or reduce economic orpersonal dependency and tostrengthen family life:

(a) Services authorized bya Title IV-Aprogram, asdefined in section 5101.80 of the Revised Code;

(b) Social services authorized by Title XX of the"SocialSecurity Act" and provided for by section 5101.46 or 5101.461 of the RevisedCode;

(c) If the county department is designated as the childsupportenforcement agency, services authorized by Title IV-D ofthe "SocialSecurityAct" and provided for by Chapter 3125. ofthe Revised Code. The countydepartmentmay perform the servicesitself or contract with othergovernment entities, and, pursuantto division(C) of section 2301.35 and section 2301.42 of theRevised Code, privateentities, to perform the Title IV-Dservices.

(2) Administer disability financial assistance, as required by the state department of job andfamily services under section 5115.03 of the Revised Code;

(3) ~~Administer disability medical assistance, as required by the state department of job and family services under section 5115.13 of the Revised Code;~~

~~(4)~~ Administer burials insofar as the administration ofburials was,prior to September 12, 1947, imposed upon the boardof county commissionersand if otherwise required by state law;

~~(5)~~(4) Cooperate with state and federal authorities in anymatterrelating to family services and to act as the agent ofsuchauthorities;

~~(6)~~(5) Submit an annual account of itswork and expenses to theboard of county commissioners and to thestate department of joband family services at theclose of each fiscal year;

~~(7)~~(6) Exercise any powers and dutiesrelating to familyservices duties or workforce developmentactivities imposed upon thecounty department of job andfamilyservices by law, by resolutionof the board of county commissioners, or byorder of the governor,when authorized by law, to meetemergencies during war or peace;

~~(8)~~(7) Determine the eligibility for medical assistance ofrecipients of aid under Title XVI of the "Social Security Act";

~~(9)~~(8) If assigned by the state director of job andfamilyservices under section 5101.515of the Revised Code,determineapplicants' eligibility for health assistance under thechildren'shealth insurance program part II;

~~(10)~~(9) Enter into a plan of cooperation with the board ofcountycommissioners under section 307.983, consult withthe boardin the development of the transportation work plan developed undersection 307.985, establish with the board proceduresunder section307.986 forproviding services to children whose families relocatefrequently, and complywith thecontracts the board enters intounder sections 307.981 and 307.982 of theRevised Code that affectthe county department;

~~(11)~~(10) For the purpose of complying with a fiscal agreement the boardof county commissioners enters into undersection 307.98 of the Revised Code, exercise thepowers andperform the duties the fiscal agreement assigns to the countydepartment;

~~(12)~~(11) If the county department is designated as the workforcedevelopmentagency, provide the workforce development activitiesspecified in the contractrequired by section 330.05 of theRevised Code.

(B) The powers and duties of a county department of job andfamily services are, andshall be exercised and performed, underthe control and direction of the boardof county commissioners.The board may assign to the county department anypower or duty ofthe board regarding family services duties and workforce developmentactivities. If the new power or dutynecessitates the statedepartment of job and familyservices changing its federal costallocation plan, the county department may not implement the poweror dutyunless the United States department of health and humanservices approves thechanges.

Sec. 329.051. The county department of job and familyservicesshall make voter registration applications as prescribed by the secretaryof state under section 3503.10 of the Revised Code available to persons whoare applying for, receiving assistance from, orparticipating in any of the following:

(A) The disability financialassistance program established under Chapter 5115. of the Revised Code;

(B) ~~The disability medical assistance program established under Chapter 5115. of the Revised Code;~~

~~(C)~~ The medical assistance program established underChapter 5111. of the Revised Code;

~~(D)~~(C) The Ohio works first program established under Chapter 5107.of the Revised Code;

~~(E)~~(D) The prevention, retention, and contingency programestablished under Chapter 5108. of the Revised Code.

Sec. 339.72. (A) Each board of county commissioners shallprovide for the county to be served by a tuberculosis controlunit by designating a county tuberculosis control unit or byentering into an agreement with one or more boards of countycommissioners of other counties under which the boards jointlydesignate a district tuberculosis control unit. The entitydesignated as the county or district tuberculosis control unit may be any ofthe following:

(1) A communicable disease control program operatedby a board of health of a city or general health districtpursuant to section 3709.22 of the Revised Code;

(2) ~~A tuberculosis program operated by a county that receivesfunds pursuant to section 339.77 of theRevised Code;~~

~~(3)~~ A tuberculosis clinic established by a board ofcounty commissioners pursuant to section 339.76 of theRevised Code;

~~(4)~~(3) A hospital that provides tuberculosis clinicservices under a contract with a board of county commissionerspursuant to section 339.75 of the Revised Code.

(B) The entity designated under division (A) of thissection as the tuberculosis control unit shall accept that designation andfulfill its duties as the tuberculosis control unit specified under sections339.71 to 339.89 of the Revised Code.

Sec. 339.88. The expenses incurred for detention under section 339.86 or339.87 of the Revised Code shall be paid by the individualdetained or if the individual is indigent, by the board of countycommissioners of the county from which the individual was removed. ~~The boardof county commissioners may apply to the director of health for reimbursementunder section 339.77 of the Revised Code for expenses of detaining indigent individuals withtuberculosis.~~

Sec. 340.03. (A) Subject to rules issued by the directorofmental health after consultation with relevant constituenciesasrequired by division (A)(11) of section 5119.06 of the RevisedCode, with regard to mental health services, the board ofalcohol,drug addiction, and mental health services shall:

(1) Serve as the community mental health planning agencyforthe county or counties under its jurisdiction, and in sodoing itshall:

(b)In cooperation with other local and regionalplanningand funding bodies and with relevant ethnicorganizations,assessthe community mental health needs, setpriorities, anddevelopplans for the operation offacilities andcommunitymental healthservices;

(c) In accordance with guidelines issued by the directorofmental health after consultation with board representatives,develop and submit to the department of mental health, no laterthan six months prior to the conclusion of the fiscal year inwhich the board's current plan is scheduled to expire, acommunitymental health plan listing community mental healthneeds,including the needs of all residents of the district nowresidingin state mental institutions and severely mentallydisabledadults, children, and adolescents; all childrensubject to adetermination made pursuant to section 121.38 of the RevisedCode;and allthe facilities and community mental healthservices thatare or will bein operationor providedduringtheperiod forwhich the plan will be in operation in theservicedistrict tomeet such needs.

The plan shall include, but not be limited to, a statementofwhich of the services listed in section 340.09 of the RevisedCodethe board intends to provide or purchase, an explanation ofhowthe board intends to make any payments that it may berequired topay under section 5119.62 of the Revised Code, astatement of theinpatient and community-based services the boardproposes that thedepartment operate, an assessment of the numberand types ofresidential facilities needed, and such otherinformation as thedepartment requests, and a budget for moneysthe board expects toreceive. The board shall also submit anallocation request forstate and federal funds. Within sixtydays after the department'sdetermination that the plan andallocation request are complete,the department shall approve ordisapprove the plan and request,in whole or in part, accordingto the criteria developed pursuantto section 5119.61 of theRevised Code. The department'sstatement of approval ordisapproval shall specify the inpatientand the community-basedservices that the department will operatefor the board.Eligibility for financial support shall becontingent upon anapproved plan or relevant part of a plan.

If the director disapproves all or part of any plan, thedirector shall inform the board of the reasons for the disapprovaland ofthe criteria that must be met before the plan may beapproved. The director shall provide the board an opportunity topresentits case on behalf of the plan. The director shall givetheboard a reasonable time in which to meet the criteria, andshalloffer the board technical assistance to help it meet thecriteria.

If the approval of a plan remains in dispute thirty daysprior to the conclusion of the fiscal year in which the board'scurrent plan is scheduled to expire, the board or the directormayrequest that the dispute be submitted to a mutually agreeduponthird-party mediator with the cost to be shared by the boardandthe department. The mediator shall issue to the board andthedepartment recommendations for resolution of the dispute.Prior tothe conclusion of the fiscal year in which the currentplan isscheduled to expire, the director, taking intoconsideration therecommendations of the mediator, shall make afinal determinationand approve or disapprove the plan, in wholeor in part.

If a board determines that it is necessary to amend a planoran allocation request that has been approved under division(A)(1)(c) of this section, the board shall submit a proposedamendment to the director. The director may approve ordisapproveall or part of the amendment. If the director doesnot approveall or part of the amendment within thirty days afterit issubmitted, the amendment or part of it shall be consideredto havebeen approved. The director shall inform the board of thereasonsfordisapproval of all or part of an amendment and of the criteriathatmust be met before theamendment may be approved. Thedirector shall provide the boardan opportunity to present itscase on behalf of the amendment. The directorshall give theboard a reasonable time in which tomeet the criteria, and shalloffer the board technical assistanceto help it meet the criteria.

(d) Receive, compile, and transmit to the department ofmental health applications for state reimbursement;

(e) Promote, arrange, and implement working agreementswithsocial agencies, both public and private, and with judicialagencies.

(2) Investigate, or request another agency to investigate,any complaint alleging abuse or neglect of any person receivingservices from a community mental health agency as defined insection 5122.01 of the Revised Code, or from a residentialfacility licensed under section 5119.22 of the Revised Code. Ifthe investigation substantiates the charge of abuse or neglect,the board shall take whatever action it determines is necessarytocorrect the situation, including notification of theappropriateauthorities. Upon request, the board shall provideinformationabout such investigations to the department.

(3)For the purpose of section 5119.611 of theRevised Code,cooperate with the director of mental health invisiting andevaluating whether the services of a community mentalhealthagency satisfy the certification standardsestablished byrulesadopted under that section;

(4) In accordance with criteria established under division(G) of section 5119.61 of the Revised Code, review and evaluatethe quality, effectiveness, andefficiency of services providedthrough itscommunity mentalhealthplanand submit its findingsand recommendations to the department ofmental health;

(5) In accordance with section 5119.22 of the RevisedCode,review applications for residential facility licenses andrecommend to the department of mental health approval ordisapproval of applications;

(6) Audit, in accordance with rules adopted by the auditorof state pursuant to section 117.20 of the Revised Code, at leastannually all programs and services provided under contract withthe board. In so doing, the board may contract for or employ theservices of private auditors. A copy of the fiscal audit reportshall be provided to the director of mental health, the auditorofstate, and the county auditor of each county in the board'sdistrict.

(7) Recruit and promote local financial support formentalhealth programs from private and public sources;

(8)(a)Enterinto contracts with public and privatefacilities for the operation of facility services included in theboard's community mental health plan and enter into contracts withpublic and privatecommunitymental healthagencies for theprovision ofcommunity mentalhealth serviceslisted in section340.09 of theRevised Code and included in theboard's communitymental healthplan.Contracts with communitymental healthagencies are subject to section 5119.611 of theRevised Code.Section 307.86 of the Revised Code does not applytocontractsentered into under this division. In contractingwithacommunity mental health agency, a boardshallconsider the costeffectiveness of services provided by thatagency and the qualityand continuity of care, and may review costelements, includingsalary costs, of the services to be provided.A utilizationreviewprocess shall be established as part of thecontract forservicesentered into between a board and acommunity mental healthagency. The board may establishthis process in a waythat ismost effective and efficientin meeting local needs. In the caseof acontract with acommunity mental health facility, as defined insection ~~5111.022~~ 5111.023 of the Revised Code, to provideservices listed indivision (B) of that section, the contractshallprovide for thefacility to be paid in accordance with thecontract entered into between thedepartments ofjob andfamilyservices and mental health under section 5111.91 of the Revised Code andany rules adopted under division (A) of section5119.61 of theRevised Code.

If either the board or afacility or community mental healthagencywithwhichthe board contractsunder division (A)(8)(a)of thissection proposes not to renew the contract or proposessubstantialchanges in contract terms, the other party shall begiven writtennotice at least one hundred twenty days before theexpiration dateof the contract. During the first sixty days ofthis one hundredtwenty-day period, both parties shall attempt toresolve anydispute through good faith collaboration andnegotiation in orderto continue to provide services to personsinneed. If thedispute has not been resolved sixty days beforetheexpirationdate of the contract, either party may notify thedepartment ofmental health of the unresolved dispute. Thedirector may requireboth parties to submit the dispute to athirdparty with the costto be shared by the board and thefacility orcommunitymentalhealthagency. The third party shall issue tothe board,thefacility or agency,and the departmentrecommendations on how thedisputemay beresolved twenty daysprior to the expiration dateof thecontract, unless both partiesagree to a time extension.Thedirector shall adopt rulesestablishing the procedures of thisdispute resolution process.

(b) With the prior approval of the director of mentalhealth, a board may operate afacility or provide a communitymental health service as follows, if thereis no other qualifiedprivate orpublicfacility or communitymental health agency thatisimmediately available and willing tooperate sucha facility orprovide the service:

(i) In an emergency situation, any board may operate afacility or provide a communitymental health service in order toprovideessential services for the durationof the emergency;

(ii) In a service district with a population of at leastonehundred thousand but less than five hundred thousand, a boardmayoperate afacility or provide a community mental health servicefor nolonger than one year;

(iii) In a service district with a population of less thanone hundred thousand, a board may operate afacility or provide acommunity mentalhealthservice for nolonger than one year,exceptthat such a board may operate afacility or provide acommunity mental healthservice for more than one year with theprior approval of thedirector and the prior approval of the boardof countycommissioners, or of a majority of the boards of countycommissioners if the district is a joint-county district.

The director shall not give a board approval to operateafacility or provide a community mental health service underdivision(A)(8)(b)(ii) or (iii) of this sectionunless thedirectordetermines thatit is not feasible to have thedepartmentoperate thefacility or provide the service.

The director shall not give a board approval to operateafacility or provide a community mental health service underdivision(A)(8)(b)(iii) of this section unlessthe directordeterminesthat theboard willprovide greateradministrativeefficiency andmore or betterservices than wouldbe available ifthe boardcontracted with aprivate or publicfacility orcommunity mentalhealthagency.

The director shall not give a board approval to operateafacility previouslyoperatedbyaperson or other governmententityunless the board hasestablished to the director'ssatisfactionthat theperson or other government entity cannoteffectivelyoperate the facility orthattheperson or othergovernment entity has requestedthe board to take over operationof thefacility.The director shall not give a board approval toprovidea community mental health service previously provided by acommunity mental health agency unless the board has established tothe director's satisfaction that the agency cannot effectivelyprovide the service or that the agency has requested the boardtake over providing the service.

The director shall review and evaluatea board'soperationofa facility and provision of community mentalhealth serviceunderdivision (A)(8)(b) of this section.

Nothing in division (A)(8)(b) of this section authorizes aboard to administer or direct the daily operation of anyfacilityor communitymental health agency, buta facility or agency maycontract with aboard toreceive administrative services or staffdirection fromthe boardunder the direction of the governing bodyof thefacility or agency.

(9) Approve fee schedules and related charges or adopt aunit cost schedule or other methods of payment for contractservices provided by community mental health agencies inaccordance with guidelines issued by the department as necessaryto comply with state and federal laws pertaining to financialassistance;

(10) Submit to the director and the county commissionersofthe county or counties served by the board, and make availabletothe public, an annual report of the programs under thejurisdiction of the board, including a fiscal accounting;

(11) Establish, to the extent resources are available, acommunity support system, which provides for treatment, support,and rehabilitation services and opportunities. The essentialelements of the system include, but are not limited to, thefollowing components in accordance with section 5119.06 of theRevised Code:

(a) To locate persons in need of mental health services toinform them of available services and benefits mechanisms;

(b) Assistance for clients to obtain services necessary tomeet basic human needs for food, clothing, shelter, medical care,personal safety, and income;

(c) Mental health care, including, but not limited to,outpatient, partial hospitalization, and, whereappropriate,inpatient care;

(e) Assistance for clients to obtain vocational servicesandopportunities for jobs;

(f) The provision of services designed to develop social,community, and personal living skills;

(g) Access to a wide range of housing and the provision ofresidential treatment and support;

(h) Support, assistance, consultation, and education forfamilies, friends, consumers of mental health services, andothers;

(i) Recognition and encouragement of families, friends,neighborhood networks, especially networks that include racialandethnic minorities, churches, community organizations, andmeaningful employment as natural supports for consumers of mentalhealth services;

(j) Grievance procedures and protection of the rights ofconsumers of mental health services;

(k) Case management, which includes continualindividualizedassistance and advocacy to ensure that neededservices are offeredand procured.

(12) Designate the treatment program, agency,orfacilityfor each person involuntarily committed to the boardpursuant toChapter 5122. of the Revised Code and authorizepayment for suchtreatment. The board shall provide the leastrestrictive and mostappropriate alternative that is availableforany personinvoluntarily committed to it and shall assurethat theserviceslisted in section 340.09 of the Revised Codeareavailable toseverely mentally disabled persons residingwithinits servicedistrict. The board shall establish theprocedure forauthorizingpayment for services, which may includepriorauthorization inappropriate circumstances. The board mayprovidefor servicesdirectly to a severely mentally disabledperson whenlife orsafety is endangered and when no communitymental healthagency isavailable to provide the service.

(13) Establish a method for evaluatingreferrals forinvoluntary commitment and affidavits filed pursuantto section5122.11 of the Revised Code in order to assist theprobatedivision of the court of common pleas in determiningwhether thereis probable cause that a respondent is subject toinvoluntaryhospitalization and what alternative treatment isavailable andappropriate, if any;

(14) Ensure that apartments or rooms built,subsidized,renovated, rented, owned, or leased by the board or acommunitymental health agency have been approved as meetingminimum firesafety standards and that persons residing in therooms orapartments are receiving appropriate and necessaryservices,including culturally relevant services, from acommunity mentalhealth agency. This division does not apply toresidentialfacilities licensed pursuant to section 5119.22 ofthe RevisedCode.

(15) Establish a mechanism for involvementof consumerrecommendation and advice on matters pertainingto mental healthservices in the alcohol, drug addiction, andmental health servicedistrict;

(16) Perform the duties under section 3722.18 of theRevisedCode required by rulesadopted under section 5119.61 oftheRevised Coderegarding referrals by the board or mental healthagencies under contractwith the board of individuals with mentalillnessor severe mental disability to adult care facilities andeffectivearrangements for ongoing mental health services for theindividuals. Theboard is accountable in the manner specified inthe rules for ensuring thatthe ongoing mental health services areeffectively arranged for theindividuals.

(B) The board shall establish such rules, operatingprocedures, standards, and bylaws, and perform such other dutiesas may be necessary or proper to carry out the purposes of thischapter.

(C) A board of alcohol, drug addiction, andmental healthservices may receive by gift, grant, devise, orbequest anymoneys, lands, or property for the benefit of thepurposes forwhich the board is established, and may hold andapply itaccording to the terms of the gift, grant, or bequest. All moneyreceived, including accrued interest, by gift, grant,or bequestshall be deposited in the treasury of the county, thetreasurer ofwhich is custodian of the alcohol, drug addiction,and mentalhealth services funds to the credit of the board andshall beavailable for use by the board for purposes stated bythe donor orgrantor.

(D) No board member or employee of a board of alcohol,drugaddiction, and mental health services shall be liable forinjuryor damages caused by any action or inaction taken withinthe scopeof the board member's official duties or theemployee'semployment, whether or not such action or inaction is expresslyauthorized by this section, section 340.033, or any other sectionof theRevised Code, unless such action or inaction constituteswillful or wantonmisconduct. Chapter 2744. of the Revised Codeapplies to any action orinaction by a board member or employee ofa board taken within the scope ofthe board member's officialduties or employee's employment. For the purposesof thisdivision, the conduct of a board member or employee shallnot beconsidered willful or wanton misconduct if the boardmember oremployee acted in good faith and in a manner that theboard memberor employeereasonably believed was in or was not opposed to thebestinterests of the board and, with respect to any criminalactionor proceeding, had no reasonable cause to believe theconduct was unlawful.

(E) The meetings held by any committee established by aboard of alcohol, drug addiction, and mental health servicesshallbe considered to be meetings of a public body subject tosection121.22 of the Revised Code.

Sec. 340.16. Not later than ninety days after~~the effectivedate of this section~~September 5, 2001, the department of mental health and thedepartment of job and family services shall adopt rules thatestablish requirements and procedures for prior notification andservice coordination between public children services agencies andboards of alcohol, drug addiction, and mental health services whena public children services agency refers a child in its custody toa board for services funded by the board. The rules shall beadopted in accordance with Chapter 119. of the Revised Code.

The department of mental health and department of job andfamily services shall collaborate in formulating a plan thatdelineates the funding responsibilities of public childrenservices agencies and boards of alcohol, drug addiction, andmental health services for services provided under section~~5111.022~~ 5111.023 of the Revised Code to children in the custody of publicchildren services agencies. The departments shall complete theplan not later than ninety days after~~the effective date of thissection~~September 5, 2001.

(1) "Medical assistance program" has the same meaning as in section 2913.40 of the Revised Code.

(2) "Medical provider" means a physician, hospital, laboratory, pharmacy, or other health care provider that is not employed by or under contract to a county or the department of rehabilitation and correction to provide medical services to persons confined in the county jail or a state correctional institution.

(3) "Necessary care" means medical care of a nonelective nature that cannot be postponed until after the period of confinement of a person who is confined in a county jail or a state correctional institution or is in the custody of a law enforcement officer without endangering the life or health of the person.

(B) If a physician employed by or under contract to a county or the department of rehabilitation and correction to provide medical services to persons confined in the county jail or state correctional institution determines that a person who is confined in the county jail or a state correctional institution or who is in the custody of a law enforcement officer prior to the person's confinement in the county jail or a state correctional institution requires necessary care that the physician cannot provide, the necessary care shall be provided by a medical provider. The county or the department of rehabilitation and correction shall pay a medical provider for necessary care an amount not exceeding the authorized reimbursement rate for the same service established by the department of job and family services under the medical assistance program.

(A) "Convention facilities authority" means a bodycorporateand politic created pursuant to section 351.02 of theRevisedCode.

(B) "Governmental agency" means a department, division, orother unit of the state government or of a municipal corporation,county, township, or other political subdivision of the state;anystate university or college, as defined in section 3345.12 oftheRevised Code, community college, state community college,university branch, or technical college; any other publiccorporation or agency having the power to acquire, construct, oroperate facilities; the United States or any agency thereof; andany agency, commission, or authority established pursuant to aninterstate compact or agreement.

(D) "Facility" or "facilities" means any convention,entertainment, or sports facility, or combination of them,locatedwithin the territory of the convention facilitiesauthority,together with all parking facilities, walkways, andotherauxiliary facilities, real and personal property, propertyrights,easements and interests that may be appropriate for, orused inconnection with, the operation of the facility.

(E) "Cost" means the cost of acquisition of all land,rights-of-way, property rights, easements, franchise rights, andinterests required for such acquisition; the cost of demolishingor removing any buildings or structures on land so acquired,including the cost of acquiring any lands to which such buildingsor structures may be moved; the cost of acquiring or constructingand equipping a principal office of the convention facilitiesauthority; the cost of diverting highways, interchange ofhighways, access roads to private property, including the cost ofland or easements for such access roads; the cost of publicutility and common carrier relocation or duplication; the cost ofall machinery, furnishings, and equipment; financing charges;interest prior to and during construction and for no more thaneighteen months after completion of construction; expenses ofresearch and development with respect to facilities; legalexpenses; expenses of obtaining plans, specifications,engineeringsurveys, studies, and estimates of cost and revenues;workingcapital; expenses necessary or incident to determiningthefeasibility or practicability of acquiring or constructingsuchfacility; administrative expense; and such other expenses asmaybe necessary or incident to the acquisition or constructionof thefacility, the financing of such acquisition orconstruction,including the amount authorized in the resolutionof theconvention facilities authority providing for the issuanceofconvention facilities authority revenue bonds to be paid intoanyspecial funds from the proceeds of such bonds, the cost ofissuingthe bonds, and the financing of the placing of suchfacility inoperation. Any obligation, cost, or expense incurredby anygovernmental agency or person for surveys, borings,preparation ofplans and specifications, and other engineeringservices, or anyother cost described above, in connection withthe acquisition orconstruction of a facility may be regarded aspart of the cost ofsuch facility and may be reimbursed out ofthe proceeds ofconvention facilities authority revenue bonds asauthorized bythis chapter.

(F) "Owner" includes a person having any title or interestin any property, rights, easements, or interests authorized to beacquired by Chapter 351. of the Revised Code.

(G) "Revenues" means all rentals and other chargesreceivedby the convention facilities authority for the use orservices ofany facility, the sale of any merchandise, or theoperation of anyconcessions; any gift or grant received withrespect to anyfacility, any moneys received with respect to thelease, sublease,sale, including installment sale or conditionalsale, or otherdisposition of a facility or part thereof; moneysreceived inrepayment of and for interest on any loans made bythe authorityto a person or governmental agency, whether fromthe United Statesor any department, administration, or agencythereof, orotherwise; proceeds of convention facilitiesauthority revenuebonds to the extent the use thereof for paymentof principal or ofpremium, if any, or interest on the bonds isauthorized by theauthority; proceeds from any insurance,appropriation, or guarantypertaining to a facility or propertymortgaged to secure bonds orpertaining to the financing of thefacility; income and profitfrom the investment of the proceedsof convention facilitiesauthority revenue bonds or of anyrevenues; contributions of theproceeds of a tax levied pursuant todivision (A)(3) of section5739.09 of the RevisedCode; and moneys transmitted totheauthority pursuant todivision (B) of section 5739.211 anddivision (B) of section5741.031 of the Revised Code.

(H) "Public roads" includes all public highways, roads,andstreets in the state, whether maintained by the state,county,city, township, or other political subdivision.

(I) "Construction," unless the context indicates adifferentmeaning or intent, includes, but is not limited to,reconstruction, enlargement, improvement, or providing fixtures,furnishings, and equipment.

(J) "Convention facilities authority revenue bonds" or"revenue bonds," unless the context indicates a different meaningor intent, includes convention facilities authority revenuenotes,convention facilities authority revenue renewal notes, andconvention facilities authority revenue refunding bonds.

(K) "Convention facilities authority tax anticipationbonds"or "tax anticipation bonds," unless the context indicatesadifferent meaning, includes convention facilities authority taxanticipation bonds, tax anticipation notes, tax anticipationrenewal notes, and tax anticipation refunding bonds.

(L) "Bonds and notes" means convention facilitiesauthorityrevenue bonds and convention facilities authority taxanticipationbonds.

(M) "Territory of the authority" means all of the area ofthe county creating the convention facilities authority.

(N) "Excise taxes" means ~~either or both~~ any of the taxesleviedpursuant to division (B) or (C) of section 351.021 of the RevisedCode."Excise taxes" does not include taxes levied pursuant tosection4301.424, 5743.026, or 5743.324 of the Revised Code.

(O) "Transaction" means the charge by a hotel for eachoccupancy by transient guests of a room or suite of rooms used ina hotel as a single unit for any period of twenty-four hours orless.

(P) "Hotel" and "transient guests" have the samemeaningsasin section 5739.01 of the Revised Code.

(Q) "Sports facility" means afacility intended to housemajor league professionalathletic teams.

(R) "Constructing" or "construction" includes providingfixtures,furnishings, andequipment.

Sec. 351.021. (A) The resolution of the countycommissioners creating a convention facilities authority, or anyamendment or supplement to that resolution, may authorize theauthority to levy one or both of the excise taxes authorized bydivision (B) of this section to pay the cost of one or morefacilities; to pay principal, interest, and premium on conventionfacilities authority tax anticipation bonds issued to pay thosecosts; to pay the operating costs of the authority; to payoperating and maintenance costs of those facilities; and to paythe costs of administering the excise tax.

(B) The board of directors of a convention facilitiesauthority that has been authorized pursuant to resolutionadopted,amended, or supplemented by the board of countycommissionerspursuant to division (A) of this section may levy,by resolutionadopted on or before December 31, 1988, either orboth of thefollowing:

(1) Within the territory of the authority, an additionalexcise tax not to exceed four per cent on each transaction. Theexcise tax authorized by division (B)(1) of this section shall bein addition to any excise tax levied pursuant tosection5739.08or 5739.09 of theRevised Code, ordivision (B)(2) of thissection.

(2) Within that portion of any municipal corporation thatislocated within the territory of the authority or within theboundaries of any township that is located within the territoryofthe authority, which municipal corporation or township islevyingany portion of the excise tax authorized by division(A) ofsection5739.08 of the Revised Code, and with theapproval, byordinance or resolution, of the legislativeauthorityof thatmunicipal corporation or township, anadditional excisetax not toexceed nine-tenths of one per centon each transaction.The excisetax authorized by division(B)(2) of this section maybe leviedonly if, on the effectivedate of the levy specified intheresolution making the levy, theamount being levied pursuanttodivision(A) of section5739.08 of the RevisedCode by eachmunicipal corporation ortownship in which the taxauthorized bydivision (B)(2) of thissection will be levied, whenadded to theamount levied underdivision (B)(2) of this section,does notexceed three per centon each transaction. The excisetaxauthorized by division(B)(2) of this section shall be inadditionto any excise taxthat is levied pursuant to section5739.08or5739.09 of the Revised Code, or division(B)(1) of thissection.

(C)(1) The board of directors of a convention facilities authority that is located in an eligible Appalachian county; that has been authorized pursuant to resolution adopted, amended, or supplemented by the board of county commissioners pursuant to division (A) of this section; and that is not levying a tax under division (B)(1) or (2) of this section may levy within the territory of the authority, by resolution adopted on or before December 31, 2005, an additional excise tax not to exceed three per cent on each transaction. The excise tax authorized under division (C) of this section shall be in addition to any excise tax levied pursuant to section 5739.08 or 5739.09 of the Revised Code.

(2) As used in division (C)(1) of this section, "eligible Appalachian county" means a county in this state designated as being in the "Appalachian region" under the "Appalachian Regional Development Act of 1965," 79 Stat. 4, 40 U.S.C. App. 403, and having a population less than eighty thousand according to the most recent federal decennial census.

(D) The authority shall provide for the administration andallocation of ~~the~~ an excise ~~taxes~~ tax levied pursuant to division (B) or (C) ofthis section. All receipts arising from those excise taxes shallbe expended for the purposes provided in, and in accordance withthis section and section 351.141 of the Revised Code. An excisetax levied under division (B) or (C) of this section shall remain ineffect at the rate at which it is levied for at least thedurationof the period for which the receipts from the tax havebeenanticipated and pledged pursuant to section 351.141 of theRevisedCode.

~~(D)~~(E) Except as provided in division (B)(2) of this section,the levy of an excise tax on each transaction pursuant tosections 5739.08 and 5739.09 of the Revised Code does not preventa conventionfacilities authority from levying ~~the~~ an excise ~~taxes~~tax pursuant todivision (B) or (C) of this section.

Sec. 351.06. A facility to be constructed pursuant to thischapter is a public improvement and a convention facilitiesauthority is a public authority for purposes of section 4115.03of the Revised Code. All contractors and subcontractors workingon such facilities are subject to and shall comply with sections4115.03 to 4115.16 of the Revised Code. A convention facilitiesauthority is a contracting authority for purposes of sections307.86 to 307.91 of the Revised Code.

No convention facilities authority shall construct afacility under this chapter unless the plans for the facilityprovide for parking and transportation determined by the board ofcounty commissioners as adequate to serve that facility.

(A) Adopt bylaws for the regulation of its affairs and theconduct of its business;

(D) Acquire, purchase, construct, reconstruct, enlarge,furnish, equip, maintain, repair, sell, exchange, lease or rentto, lease or rent from, operate, or contract for the operation byothers of, facilities within its territory, and make charges forthe use of the facilities;

(E) Make available the use or services of any facility topersons or governmental agencies on such terms and conditions asthe authority shall determine;

(F) By resolution of its board of directors, issueconvention facilities authority revenue bonds beyond the limit ofbonded indebtedness provided by law, payable solely from revenuesas provided in section 351.14 of the Revised Code, unless thebonds are refunded by refunding bonds, for the purpose ofproviding funds to pay the costs of any facility or facilities orparts of any facility or facilities, and, if moneys raised bytaxation are not obligated or pledged for the payment of thoserevenue bonds, to pay the costs of any facility or facilities orparts of any facility or facilities pursuant to Section 13 ofArticle VIII, Ohio Constitution, and in order to create orpreserve jobs and employment opportunities and improve theeconomic welfare of the people of the state;

(H) Direct its agents or employees, when properlyidentified in writing and after at least five days' writtennotice, to enter upon lands within its territory in order to makesurveys and examinations preliminary to location and constructionof facilities, or other work for the purposes of the conventionfacilities authority, without liability of the authority or itsagents or employees except for actual damage done;

(J)(1) Adopt rules, not in conflict with general law,governing the use of its property, grounds, buildings, equipment,and facilities, and the conduct of its employees and the public,in order to promote the public safety and convenience in andabout its facilities and grounds, and to maintain order. Anysuch rule shall be posted at a prominent place in each of thebuildings or facilities to which it applies.

(2) No person shall violate any lawful rule adopted andposted as provided in this division.

(K) Acquire by gift or purchase, hold, lease, and disposeof real and personal property and interests in the property inthe exercise of its powers and the performance of its dutiesunder this chapter;

(L) Acquire, in the name of the authority, by purchase orotherwise, on such terms and in such manner as the authorityfinds proper, or by the exercise of the right of appropriation inthe manner provided by section 351.22 of the Revised Code, suchpublic or private lands, including public parks, playgrounds, orreservations, or parts thereof or rights therein, rights-of-way,rights, franchises, easements, and interests as it findsnecessary or proper for carrying out this chapter, andcompensation shall be paid for public or private lands so taken;

(M) Make and enter into all contracts and agreements andexecute all instruments necessary or incidental to theperformance of its duties and the execution of its powers underthis chapter provided that no construction contract or contractfor the purchase of goods or services shall be approved orentered into by the authority prior to the adoption andimplementation of a policy on the set aside of contracts forbidding by or award to minority business enterprises, as definedin division (E)(1) of section 122.71 of the Revised Code;

(N) Employ managers, superintendents, and other employeesand retain or contract with consulting engineers, financialconsultants, accounting experts, architects, attorneys, and suchother consultants and independent contractors as are necessary inits judgment to carry out this chapter, and fix theircompensation. All expenses of doing so shall be payable solelyfrom the proceeds of convention facilities authority bonds andnotes issued under this chapter, or from excise taxes andrevenues.

(O) Receive and accept from any governmental agency grantsfor or in aid of the purposes of the authority, and receive andaccept aid or contributions from any source of money, property,labor, or other things of value, to be held, used, and appliedonly for the purposes for which such grants and contributions aremade;

(Q) Purchase fire and extended coverage and liabilityinsurance for any facility and for the offices of the authority,insurance protecting the authority and its officers and employeesagainst liability for damage to property or injury to or death ofpersons arising from its operations, and any other insurance theauthority may agree to provide under any resolution authorizingits convention facilities authority revenue bonds or in any trustagreement securing the same;

(R) Charge, alter, and collect rentals and other chargesfor the use or services of any facility as provided in section351.09 of the Revised Code;

(S) If a tax proposed under section 5739.026 of theRevised Code is disapproved by the electors, request the board ofcounty commissioners to dissolve the authority pursuant tosection 351.03 of the Revised Code;

(T) By resolution of its board of directors, levy ~~one orboth~~ any of the excise taxes authorized by division (B) or (C) of section351.021 of the Revised Code if authorized by the countycommissioners, and issue convention facilities authority taxanticipation bonds beyond any limit of bonded indebtednessprovided by law, payable solely from excise taxes levied pursuantto division (B) or (C) of section 351.021 of the Revised Code andrevenues as provided in section 351.141 of the Revised Code.

(U) Do all acts necessary or proper to carry out thepowers expressly granted in this chapter.

Sec. 351.141. A convention facilities authority thatlevies~~one or both~~ any of the excise taxes authorized by division (B)or (C) ofsection 351.021 of the Revised Code or that receives contributionspursuant to division (A)(3) of section5739.09 of theRevisedCode, by resolution mayanticipate the proceeds of thelevy andissue conventionfacilities authority tax anticipationbonds, andnotesanticipating the proceeds or the bonds, in theprincipalamountthat, in the opinion of the authority, arenecessary forthepurpose of paying the cost of one or morefacilities or partsofone or more facilities, and as able, withthe interest on them,be paid over the term of the issue, or inthe case of notesanticipating bonds over the term of the bonds,by the estimatedamount of the excise taxes or contributionsanticipated thereby.Theexcise taxesor contributions aredetermined by the generalassembly to satisfy anyapplicablerequirement of Section 11 ofArticle XII, Ohio Constitution. Anauthority, at any time, mayissue renewal tax anticipation notes,issue tax anticipation bondsto pay such notes, and, whenever itconsiders refunding expedient,refund any tax anticipation bondsby the issuance of taxanticipation refunding bonds whether thebonds to be refunded haveor have not matured, and issue taxanticipation bonds partly torefund bonds then outstanding andpartly for any other authorizedpurpose. The refunding bondsshall be sold and the proceedsneeded for such purpose applied inthe manner provided in the bondproceedings to the purchase,redemption, or payment of the bondsto be refunded.

Every issue of outstanding tax anticipation bonds shall bepayable out of the proceeds of the excise taxes or contributionsanticipated andother revenues of the authority that are pledgedfor suchpayment. The pledge shall be valid and binding from thetime thepledge is made, and the anticipated excise taxes,contributions, and revenues sopledged and thereafter received bythe authority immediatelyshall be subject to the lien of thatpledge without any physicaldelivery of those excise taxes,contributions, andrevenues or further act. Thelien of anypledge is valid and binding as against all partieshaving claimsof any kind in tort, contract, or otherwise againstthe authority,whether or not such parties have notice of thelien. Neither theresolution nor any trust agreement by which apledge is createdneed be filed or recorded except in theauthority's records.

Whether or not the bonds or notes are of such form andcharacter as to be negotiable instruments under Title XIII of theRevised Code, the bonds or notes shall have all the qualities andincidents of negotiable instruments, subject only to theirprovisions for registration, if any.

The tax anticipation bonds shall bear such date or dates,andshall mature at such time or times, in the case of any suchnotesor any renewals of such notes not exceeding twenty yearsfrom thedate of issue of such original notes and in the case ofany suchbonds or any refunding bonds not exceeding forty yearsfrom thedate of the original issue of notes or bonds for thepurpose, andshall be executed in the manner that the resolutionauthorizingthe bonds may provide. The tax anticipation bondsshall bearinterest at such rates, or at variable rate or rateschanging fromtime to time, in accordance with provisionsprovided in theauthorizing resolution, be in such denominationsand form, eithercoupon or registered, carry such registrationprivileges, bepayable in such medium of payment and at suchplace or places, andbe subject to such terms of redemption, asthe authority mayauthorize or provide. The tax anticipationbonds may be sold atpublic or private sale, and at, or at notless than the price orprices as the authority determines. Ifany officer whosesignature or a facsimile of whose signatureappears on any bondsor coupons ceases to be such officer beforedelivery of the bonds,the signature or facsimile shallnevertheless be sufficient forall purposes as if the officerhad remainedin office untildelivery of the bonds, and in case the seal ofthe authority hasbeen changed after a facsimile has beenimprinted on the bonds,the facsimile seal will continue to besufficient for allpurposes.

Any resolution or resolutions authorizing any taxanticipation bonds or any issue of tax anticipation bonds maycontain provisions, subject to any agreements with bondholders asmay then exist, which provisions shall be a part of the contractwith the holders of the bonds, as to the pledging of any or allofthe authority's anticipated excise taxes,contributions, andrevenues tosecure the payment of the bonds or of any issue of thebonds; theuse and disposition of revenues of the authority; thecreditingof the proceeds of the sale of bonds to and among thefundsreferred to or provided for in the resolution; limitationson thepurpose to which the proceeds of sale of the bonds may beappliedand the pledging of portions of such proceeds to securethepayment of the bonds or of any issue of the bonds; as to notesissued in anticipation of the issuance of bonds, the agreement ofthe authority to do all things necessary for the authorization,issuance, and sale of such bonds in such amounts as may benecessary for the timely retirement of such notes; limitations onthe issuance of additional bonds; the terms upon which additionalbonds may be issued and secured; the refunding of outstandingbonds; the procedure, if any, by which the terms of any contractwith bondholders may be amended, the amount of bonds the holdersof which must consent thereto, and the manner in which suchconsent may be given; securing any bonds by a trust agreement inaccordance with section 351.16 of the Revised Code; any othermatters, of like or different character, that in any way affectthe security or protection of the bonds. The excise taxesanticipated by the bonds, including bonds anticipated by notes,shall not be subject to diminution by initiative or referendum orby law while the bonds or notes remain outstanding in accordancewith their terms, unless provision is made by law or by theauthority for an adequate substitute therefor reasonablysatisfactory to the trustee, if a trust agreement secures thebonds.

Neither the members of the board of directors of theauthority nor any person executing the bonds shall be liablepersonally on the bonds or be subject to any personal liabilityoraccountability by reason of the issuance thereof.

Sec. 351.16. In the discretion of the conventionfacilities authority, any convention facilities authority bondsand notes issued under this chapter may be secured by a trustagreement between the authority and a corporate trustee, whichtrustee may be any trust company or bank having the powers of atrust company within or without the state.

Any such trust agreement for convention facility authorityrevenue bonds may pledge or assign revenues of the conventionfacilities authority to be received and may convey or mortgageany facility or any part of any facility. Any such trustagreement for convention facility authority tax anticipationbonds may pledge or assign ~~one or both~~ any of the excise taxesauthorized by division (B) or (C) of section 351.021 of the Revised Codeand revenues of the convention facilities authority to bereceived and may convey or mortgage any facility or any part ofany facility. Any such trust agreement or any resolutionproviding for the issuance of such bonds or notes may containsuch provisions for protecting and enforcing the rights andremedies of the bondholders or noteholders as are reasonable andproper and not in violation of law, including covenants settingforth the duties of the authority in relation to the acquisitionof property, the construction, improvement, maintenance, repair,operation, and insurance of the facility in connection with whichsuch bonds or notes are authorized, the rentals or other chargesto be imposed for the use or services of any facility, thecustody, safeguarding, and application of all moneys, andprovisions for the employment of consulting engineers inconnection with the construction or operation of such facility.Any bank or trust company incorporated under the laws of thisstate that may act as depository of the proceeds of bonds ornotes or of revenues may furnish such indemnifying bonds or maypledge such securities as are required by the authority. Anysuch trust agreement may set forth the rights and remedies of thebondholders and noteholders and of the trustee, and may restrictthe individual right of action by bondholders and noteholders asis customary in trust agreements or trust indentures securingsimilar bonds. Such trust agreement may contain such otherprovisions as the authority determines reasonable and proper forthe security of the bondholders or noteholders. All expensesincurred in carrying out the provisions of any such trustagreement may be treated as a part of the cost of the operationof the facility. Any such trust agreement or resolutionauthorizing the issuance of convention facilities authority bondsor notes may provide the method whereby the generaladministrative expenses of the authority shall be allocated amongfacilities acquired or constructed by it as a factor of theoperation expenses of such facility.

(1) A municipal corporation that shares the same territoryas a city, local,or exempted village school district, to theextent that not morethan five per cent of the territory of themunicipalcorporation is located outside the school district andnot more thanfive per cent of the territory of the schooldistrict islocated outside the municipal corporation;

(2) A municipal corporation that shares the same territoryas a city, local,or exempted villageschool district, to theextent that not more than five per centof the territory of themunicipal corporation is located outsidethe school district, morethan five per cent but not more than ten per cent ofthe territoryof the school district is located outside the municipalcorporation, and that portion of the territory of the schooldistrict that is located outside the municipal corporation islocated entirely within another municipal corporation having apopulation of four hundred thousand or more according to thefederal decennial census most recently completed before theagreement is entered into under division(B) of this section.

(B) ~~Before January 1, 2001, the~~ The legislativeauthority of amunicipal corporationto which this section applies may propose tothe electors anincome tax, one of the purposes of which shall beto providefinancial assistance to the school district throughpayment tothe district of not less than twenty-five per cent ofthe revenuegenerated by the tax, except that the legislative authority may not propose to levy the income tax on the incomes of nonresident individuals. Prior to proposing the tax, thelegislative authority shall negotiate and enter into a writtenagreement with the board of education of the school districtspecifying the tax rate, the percentage of tax revenue to be paidto the school district, the purpose for which the school districtwill use the money, the first year the tax will be levied, thedate of the special election on the question of the tax, and themethod and schedule by which the municipal corporation will makepayments to the school district. The special election shall beheld ~~before January 1, 2001,~~ on a day specified indivision (D) ofsection 3501.01 of theRevised Code, except that the specialelection may not be held onthe day for holding a primary electionas authorized by themunicipal corporation's charter unless themunicipal corporationis to have a primary election on that day.

After the legislative authority and board of education haveentered into the agreement, the legislative authority shallprovide for levying the tax by ordinance. The ordinance shallstate the tax rate, the percentage of tax revenue to be paid tothe school district, the purpose for which the municipalcorporation will use its share of the tax revenue, the first yearthe tax will be levied, and that the question of the income taxwill be submitted to the electors of the municipal corporation.The legislative authority also shall adopt a resolutionspecifyingthe regular or special election date the election willbe held anddirecting the board of elections to conduct theelection. Atleast seventy-five days before the date of theelection, thelegislative authority shall file certified copiesof the ordinanceand resolution with the board of elections.

(C) The board of elections shall make the necessaryarrangements for the submission of the question to the electorsofthe municipal corporation, and shall conduct the election inthesame manner as any other municipal income tax election.Notice ofthe election shall be published in a newspaper ofgeneralcirculation in the municipal corporation once a week forfourconsecutive weeks prior to the election, and shall includestatements of the rate and municipal corporation and schooldistrict purposes of the income tax, the percentage of taxrevenuethat will be paid to the school district, and the firstyear thetax will be levied. The ballot shall be in thefollowing form:

"Shall the ordinance providing for a ..... per cent levy onincome for (brief description of the municipal corporation andschool district purposes of the levy, including a statement ofthepercentage of tax revenue that will be paid to the schooldistrict) be passed? The income tax, if approved, will not be levied on the incomes of individuals who do not reside in (the name of the municipal corporation).

(D) If the question is approved by a majority of theelectors, the municipal corporation shall impose the income taxbeginning in the year specified in the ordinance. The proceedsofthe levy may be used only for the specified purposes,includingpayment of the specified percentage to the schooldistrict.

Sec. 718.10. (A) This section applies to a group of twoormore municipal corporations that, taken together, share thesameterritory as a single city, local, or exempted villageschooldistrict, to the extent that not more than five per centof theterritory of the municipal corporations as a group islocatedoutside the school district and not more than five percent of theterritory of the school district is located outsidethe municipalcorporations as a group.

(B) ~~Before January 1, 2001, the~~ The legislativeauthorities ofthe municipalcorporations in a group of municipal corporations towhich thissection applies each may propose to the electors anincome tax,to be levied in concert with income taxes in the othermunicipalcorporations of the group, except that a legislative authority may not propose to levy the income tax on the incomes of individuals who do not reside in the municipal corporation. One of the purposes of sucha taxshall be to provide financial assistance to the schooldistrictthrough payment to the district of not less thantwenty-five percent of the revenue generated by the tax. Priorto proposing thetaxes, the legislative authorities shallnegotiate and enter intoa written agreement with each other andwith the board ofeducation of the school district specifying thetax rate, thepercentage of the tax revenue to be paid to theschool district,the first year the tax will be levied, and thedate of theelection on the question of the tax, all of whichshall be thesame for each municipal corporation. The agreementalso shallstate the purpose for which the school district willuse themoney, and specify the method and schedule by which eachmunicipal corporation will make payments to the school district.The special election shall be held ~~before January 1,2001,~~ on aday specified in division(D) of section 3501.01 of the RevisedCode, including a day onwhich all of the municipal corporationsare to have a primaryelection.

After the legislative authorities and board of educationhaveentered into the agreement, each legislative authority shallprovide for levying its tax by ordinance. Each ordinance shallstate the rate of the tax, the percentage of tax revenue to bepaid to the school district, the purpose for which the municipalcorporation will use its share of the tax revenue, and the firstyear the tax will be levied. Each ordinance also shall statethatthe question of the income tax will be submitted to theelectorsof the municipal corporation on the same date as thesubmission ofquestions of an identical tax to the electors ofeach of the othermunicipal corporations in the group, and thatunless the electorsof all of the municipal corporations in thegroup approve the taxin their respective municipal corporations,none of the municipalcorporations in the group shall levy thetax. Each legislativeauthority also shall adopt a resolutionspecifying the regular orspecial election date the election willbe held and directing theboard of elections to conduct theelection. At least seventy-fivedays before the date of theelection, each legislative authorityshall file certified copiesof the ordinance and resolution withthe board of elections.

(C) For each of the municipal corporations, the board ofelections shall make the necessary arrangements for thesubmissionof the question to the electors, and shall conduct theelection inthe same manner as any other municipal income taxelection. Foreach of the municipal corporations, notice of theelection shallbe published in a newspaper of general circulationin themunicipal corporation once a week for four consecutiveweeks priorto the election. The notice shall include astatement of the rateand municipal corporation and schooldistrict purposes of theincome tax, the percentage of taxrevenue that will be paid to theschool district, and the firstyear the tax will be levied, and anexplanation that the tax willnot be levied unless an identicaltax is approved by the electorsof each of the other municipalcorporations in the group. Theballot shall be in the followingform:

"Shall the ordinance providing for a ... per cent levy onincome for (brief description of the municipal corporation andschool district purposes of the levy, including a statement ofthepercentage of income tax revenue that will be paid to theschooldistrict) be passed? The income tax, if approved, will not be levied on the incomes of individuals who do not reside in (the name of the municipal corporation). In order for the income tax to belevied,the voters of (the other municipal corporations in thegroup),which are also in the (name of the school district)schooldistrict, must approve an identical income tax and agreeto paythe same percentage of the tax revenue to the schooldistrict.

(D) If the question is approved by a majority of theelectors and identical taxes are approved by a majority of theelectors in each of the other municipal corporations in thegroup,the municipal corporation shall impose the tax beginningin theyear specified in the ordinance. The proceeds of thelevy may beused only for the specified purposes, includingpayment of thespecified percentage to the school district.

Sec. 731.14. All contracts made by the legislativeauthority of a village shall be executed in the name of thevillage and signed on its behalf by the mayor and clerk. Exceptwhere the contract is for equipment, services, materials, orsupplies to be purchased under division (D) of section 713.23 orsection 125.04 or 5513.01 of the Revised Code or, available from aqualified nonprofit agency pursuant to sections 4115.31 to4115.35 of the Revised Code, or required to be purchased from a qualified nonprofit agency under sections 125.60 to 125.6012 of the Revised Code, when any expenditure, other than thecompensation of persons employed in the village, exceeds twenty-fivethousanddollars, such contracts shall be in writing and made with thelowest and best bidder after advertising for not less than twonor more than four consecutive weeks in a newspaper of generalcirculation within the village. The bids shall be opened andshall be publicly read by the clerk of the village or a persondesignated by the clerk at the time, date, and placespecified in theadvertisement to bidders or specifications. The time, date, andplace of bid openings may be extended to a later date by thelegislative authority of the village, provided that written ororal notice of the change shall be given to all persons who havereceived or requested specifications no later than ninety-sixhours prior to the original time and date fixed for the opening. This section does not apply to those villages that have providedfor the appointment of a village administrator under section735.271 of the Revised Code.

Sec. 731.141. In those villages that have established theposition of village administrator, as provided by section 735.271of the Revised Code, the village administrator shall makecontracts, purchase supplies and materials, and provide labor forany work under the administrator's supervision involvingnot more than twenty-five thousand dollars. When anexpenditure, other than thecompensation of persons employed by the village, exceeds twenty-five thousand dollars, the expenditure shall first be authorizedanddirected by ordinance of the legislative authority of thevillage. When so authorized and directed, except where thecontract is for equipment, services, materials, or supplies to bepurchased under division (D) of section 713.23 or section 125.04or 5513.01 of the Revised Code or, available from a qualifiednonprofit agency pursuant to sections 4115.31 to 4115.35 of theRevised Code, or required to be purchased from a qualified nonprofit agency under sections 125.60 to 125.6012 of the Revised Code, the village administrator shall make a writtencontract with the lowest and best bidder after advertisement fornot less than two nor more than four consecutive weeks in anewspaper of general circulation within the village. The bidsshall be opened and shall be publicly read by the villageadministrator or a person designated by the villageadministrator at the time, date, and place as specified in theadvertisement to bidders orspecifications. The time, date, and place of bid openings may beextended to a later date by the village administrator, providedthat written or oral notice of the change shall be given to allpersons who have received or requested specifications no laterthan ninety-six hours prior to the original time and date fixedfor the opening. All contracts shall be executed in the name ofthe village and signed on its behalf by the village administratorand the clerk.

The legislative authority of a village may provide, byordinance, for central purchasing for all offices, departments,divisions, boards, and commissions of the village, under thedirection of the village administrator, who shall make contracts,purchase supplies or materials, and provide labor for any work ofthe village in the manner provided by this section.

Sec. 742.59. The board of trustees of the Ohio police andfire pension fund shallbe the trustee of the funds created as follows:

(A) The "police officers' contribution fund"is the fund inwhich shall be credited the contributions deducted from thesalaries of members of police departments and paid into theOhio police and firepension fund, as provided bysection 742.31 of the Revised Code, and that percentage of theemployers' accrued liability that is attributable to deductionspreviously made from the salaries of members of the policedepartment who are still in the active service at the time thatportion of the employers' accrued liability ispaid. Theaccumulated contributions of a member of a police departmentshall be transferred at the member's retirement from thepolice officers' contribution fund to thepolice officers' pension reserve fund.

(B) The "firefighters' contribution fund" isthe fund in whichshall be credited contributions deducted from the salaries ofmembers of fire departments and paid into the Ohio police andfire pension fund, asprovided by section742.31 of the Revised Code, and that percentage of the employers'accrued liability that is attributable to deductions previouslymade from the salaries of members of the fire department who arestill in the active service at the time that portion of theemployers' accrued liability is paid. The accumulatedcontributions of a member of a fire department shall betransferred at the member's retirement from thefirefighters' contribution fund to thefirefighters' pension reserve fund.

(1) The police officeremployers' contribution, as providedby section 742.33 of the Revised Code~~, and that~~;

(2) The percentage of theemployers' accrued liability that is attributable to theemployers' liability for prior service of members of the policedepartment who are still in the active service at the time thatportion of the employers' accrued liability is paid~~, and thatportion of the state contribution allocated to such fund, asprovided by section 742.36 of the Revised Code, shall becredited, and in which shall be accumulated~~.

In the police officer employers' contribution fund shall accumulate the reserves held intrust for the payment of all pensions or other benefits providedby sections 742.01 to 742.61 of the Revised Code tomembers of a police department retiring in the future or their qualifiedbeneficiaries and from which the reserves for such pensions andother benefits shall be transferred to the policeofficers' pension reserve fund.

(D) The "firefighter employers' contribution fund" isthe fund to which the following shall be credited:

(1) The firefighter employers'contribution, as provided insection 742.34 of the Revised Code~~, and that~~;

(2) The percentage of theemployers' accrued liability that is attributable to theemployers' liability for prior service for members of the firedepartment who are still in the active service at the time thatportion of the employers' accrued liability is paid~~, and thatportion of the state contribution allocated to such fund, asprovided by section 742.36 of the Revised Code, shall becredited, and in which shall be accumulated~~.

In the firefighter employers' contribution fund shall accumulate the reserves held intrust for the payment of all pensions and other benefits providedby sections 742.01 to 742.61 of the Revised Code tomembers of a fire department retiring in the future or their qualifiedbeneficiaries and from which the reserves for such pensions andother benefits shall be transferred to thefirefighters'pension reserve fund.

(E) The "police officers' pension reservefund" is the fundfrom which shall be paid all pensions and other benefits forwhich reserves have been transferred from the policeofficers' contribution fundand the police officer employers' contribution fund,and to which shall be credited that percentage of the employers'accrued liability that is attributable to the total of deductionspreviously made from the salaries of members of the policedepartment who are retired and are receiving pensions or otherbenefits, or whose beneficiaries are receiving benefits, at thetime that portion of the employers' accrued liability is paid,and that percentage of the employers' accrued liability that isattributable to prior service of members of the police departmentwho are retired and are receiving pensions or other benefits, orwhose beneficiaries are receiving benefits, at the time thatportion of the employers' accrued liability is paid.

(F) The "firefighters' pension reserve fund"is the fund from which shall be paid all pensions and other benefits for whichreserves have been transferred from thefirefighters' contributionfund and the firefighter employers' contribution fund,and to whichshall be credited that percentage of the employers' accruedliability that is attributable to the total of deductionspreviously made from the salaries of members of the firedepartment who are retired and are receiving pensions or otherbenefits, or whose beneficiaries are receiving benefits, at thetime that portion of the employers' accrued liability is paid,and that percentage of the employers' accrued liability that isattributable to prior service of members of the fire departmentwho are retired and are receiving pensions or other benefits, orwhose beneficiaries are receiving benefits, at the time thatportion of the employers' accrued liability is paid.

(G) The "guarantee fund" is the fund from which interestis transferred and credited on the amounts in the funds describedin divisions (C), (D), (E), and (F) of this section, and is acontingent fund from which the special requirements of said fundsmay be paid by transfer from this fund. All income derived fromthe investment of funds by the board of trustees of the Ohiopoliceand fire pension fund as trustee undersection 742.11 of the Revised Code, together with all gifts andbequests or the income therefrom, shall be paid into this fund.

Any deficit occurring in any other fund that will not becovered by payments to that fund, as otherwise provided bysections 742.01 to 742.61 of the Revised Code, shall bepaid by transfers of amounts from the guarantee fund to such fund orfunds. Should the amount in the guarantee fund be insufficientat any time to meet the amounts payable therefrom, the amount ofsuch deficiency, with regular interest, shall be paid by anadditional employer rate of current contribution as determined bythe actuary and shall be approved by the board of trustees of theOhiopolice and fire pension fund, and theamountof such additional employer contribution shall be credited to theguarantee fund.

The boardmay accept gifts and bequests. Anyfunds that may come into the possession of the board in thismanner, or any other funds whose disposition is not otherwiseprovided for, shall be credited to the guarantee fund.

(H) The "expense fund" is the fund from which shall bepaid the expenses for the administration and management of theOhio police and firepensionfund, as provided bysections 742.01 to 742.61 of the Revised Code, and towhich shall be credited from the guarantee fund an amount sufficient to paythe expenses of operation.

Sec. 901.43. (A) The director of agriculture may authorizeanydepartment ofagriculture laboratory to perform a laboratoryservice for anyperson, organization, political subdivision, stateagency, federalagency, or other entity, whether public orprivate. The director shall adopt andenforce rules to providefor the rendering of a laboratory service.

(B) The director may charge a reasonable fee for theperformanceof a laboratory service, except when the service isperformed on an officialsample taken by thedirector actingpursuant to Title IX, Chapter 3715., or Chapter3717. of theRevised Code; by a board of health acting as thelicensor ofretail food establishments or food service operationsunderChapter 3717. of the Revised Code; or by the director ofhealthacting as the licensor of food service operations underChapter3717. of the Revised Code. The director ofagriculture shalladopt rules specifying what constitutes an officialsample.

The director shall publish a listof laboratory servicesoffered, together with the fee foreach service.

(C) The director may enter into a contract with any person,organization,political subdivision, state agency, federal agency,or otherentity for the provision of alaboratory service.

(D)(1) The director may adopt rulesestablishing standardsfor accreditation of laboratories andlaboratory services and indoing so may adopt by referenceexisting or recognized standardsor practices.

(2) The director may inspect andaccredit laboratories andlaboratory services, and may charge areasonable fee for theinspections and accreditation.

(E)(1) ~~All~~ There is hereby created in the state treasury the animal health and food safety fund. Moneys from the following sources shall be deposited into the state treasury to the credit of the fund: all moneys collected by the director underthissection that are from fees generated by a laboratoryserviceperformed by the department and related to the diseases ofanimals, ~~and~~ all moneys so collected that are from fees generatedfor the inspection and accreditation of laboratories andlaboratory servicesrelated to the diseases of animals, shall bedepositedin the animal industry laboratory fund, which is herebycreatedin the state treasury. The director shall use the moneysin theanimal industry laboratory fund topay the expensesnecessary to operate the animal industry laboratory, including thepurchaseof supplies andequipment.

~~(2) All~~ all moneys collectedby the director under this sectionthat are from fees generated by alaboratory service performed bythe consumer analytical laboratory, and allmoneys so collectedthat are from fees generated for the inspection andaccreditationof laboratories and laboratory services not related to weightsandmeasures ~~or the diseases of animals, shallbe deposited in thelaboratory services fund, which ishereby created in the statetreasury~~. The director may use the moneysheld in the fund ~~may be used~~ to pay theexpenses necessary to operate the animal industry laboratory and theconsumer analytical laboratory,including the purchase of supplies andequipment.

~~(3)~~(2) All moneys collected by the director under thissectionthat are from fees generated by a laboratory serviceperformed bythe weights and measures laboratory, and all moneys so collectedthat are from fees generated for the inspection and accreditationoflaboratories and laboratory services related to weights andmeasures, shall bedeposited in the state treasury to the credit of the weights and measureslaboratory fund, which is hereby createdin the state treasury.The moneys held in thefund may be used to pay the expensesnecessary to operate thedivision of weights and measures,including the purchase ofsupplies and equipment.

Sec. 901.44. There is hereby created in the state treasury the laboratory and administrative support fund. The department of agriculture shall deposit the following moneys received by the department to the credit of the fund: payment for the rental of the department's auditoriums by outside parties and reimbursement for related utility expenses, laboratory fees that are not designated for deposit into another fund, and other miscellaneous moneys that are not designated for deposit into another fund. The department may use moneys in the fund to pay costs associated with any program of the department as the director of agriculture sees fit.

Sec. 903.05. (A) Each application for a permit to installor permit to operate a concentrated animal feeding facility that is submitted by anapplicant who has notoperated a concentrated animal feeding facility in this state forat leasttwo of the five years immediately preceding thesubmission of the applicationshall be accompanied byall of thefollowing:

(1) A listing of all ~~concentrated~~ animal feeding facilitiesthatthe owner or operator of the proposed new or modifiedconcentrated animalfeeding facilityhas operated or is operatinginthis state;

(2) A listing of the ~~concentrated~~ animal feeding facilitiesthat the owneror operator has operated or is operating elsewherein the UnitedStates and that are regulated under the FederalWater Pollution Control Act together witha listing of the~~concentrated~~ animal feeding facilities that the owner or operatorhas operatedor is operating outsidethe United States;

(3) A listing of all administrative enforcementordersissued to the owner or operator, all civilactions in which theowner or operator was determined by the trier of fact tobe liablein damages or was the subject of injunctive relief or another typeof civil relief, and all criminal actions in which the owner oroperatorpleaded guilty or was convicted, duringthe five yearsimmediately preceding the submission of theapplication,inconnection with any violation ofthe federal Water PollutionControlAct, the "SafeDrinking Water Act," as definedin section6109.01 of the Revised Code, or any otherapplicablestate lawspertaining to environmental protectionthat was alleged tohaveoccurred or to be occurring at any ~~concentrated~~ animalfeedingfacility that the owner or operator has operated or is operatingin the United States or with any violation of theenvironmentallaws of another country that was alleged to have occurred or tobeoccurring at any~~concentrated~~ animal feeding facility that theowner or operator has operatedor is operating outsidethe UnitedStates.

The lists of ~~concentrated~~ animal feeding facilities operatedbythe owner or operator within or outside this state or outsidetheUnited States shall include,respectively, all suchfacilitiesoperated by the owner or operator during the five-year periodimmediately preceding the submission of the application.

(B) If the applicant fora permit to install or permit tooperate has beeninvolved in any prior activity involving theoperation of ~~a concentrated~~ an animal feeding facility, the directorofagriculture maydeny the application if the director finds fromtheapplication, the information submitted under divisions (A)(1)to (3)of this section, pertinent informationsubmitted to thedirector, and other pertinent informationobtained by the directorat the director's discretion that theapplicant and personsassociated with the applicant, in theoperation of ~~concentrated~~animal feeding facilities, havea history of substantialnoncompliance with the FederalWater Pollution Control Act, the"SafeDrinking Water Act," as definedin section 6109.01 of theRevised Code, any otherapplicablestate laws pertaining toenvironmental protection,or the environmental laws of anothercountry that indicates that the applicantlacks sufficientreliability, expertise, and competence to operate theproposed newor modified concentrated animal feeding facility insubstantialcompliance with this chapter and rules adopted under it.

(C) A person who seeks to acquire a concentrated animalfeedingfacility that has been issued an installation permitthathas been transferred from the director of environmentalprotectionto the director of agriculture, a permit to install, ora permitto operateshall submit tothe director the information specifiedin divisions (A)(1) to (3) ofthissection prior to the transferof the permit. The permit shall not betransferred as otherwiseprovided indivision (I) of section 903.09 of the Revised Code ifthedirector finds from the information submitted under divisions(A)(1) to (3) of this section, pertinent information submitted tothe director, and other pertinent information obtained by thedirector at thedirector's discretion that the person, intheoperation of ~~concentrated~~ animal feeding facilities, has ahistoryof substantial noncompliance with theFederal Water PollutionControlAct, the "SafeDrinking Water Act," as definedin section6109.01 of the Revised Code, any otherapplicable state lawspertaining to environmental protection, or theenvironmental lawsof another country that indicates that the person lackssufficientreliability, expertise, andcompetence to operate the concentratedanimalfeeding facility in substantial compliance with thischapter and rulesadopted under it.

Sec. 905.32. (A) No person shall manufacture or distribute in this state anytype of fertilizer until a license tomanufacture or distribute has been obtained by the manufacturer or distributorfrom the department of agriculture upon payment of a five dollarfee:

(1) For each fixed (permanent) location at which fertilizer is manufacturedin this state;

(3) For each location out of the state from which fertilizer is distributedin this state to nonlicensees.

All licenses ~~expire on the thirtieth day of June of each~~ shall be valid for one year beginning on the first day of December of a calendar year through the thirtieth day of November of the following calendar year. A renewal application for a license shall be submitted ~~no earlier than thefirstdayof June each year and~~ no later than the thirtieth day of~~June~~ Novembereach year. A person who submits a renewal application for a license after thethirtieth day of ~~June~~ November shall include with the application a latefilingfee of ten dollars.

(2) The name and address of each bulk distribution point in the state, notlicensed for fertilizer manufacture and distribution.

The name and address shown on the license shall be shown on all labels,pertinent invoices, and bulk storage for fertilizers distributed by thelicensee in this state.

(C) The licensee shall inform the director of agriculture in writing ofadditionaldistribution points established during the period of the license.

Sec. 905.33. (A) Except as provided in division (C) ofthis section, no person shall distribute in this state a specialtyfertilizer until it is registered by the manufacturer or distributor with thedepartment of agriculture. An application, in duplicate, for each brand andproduct name of each grade of specialty fertilizer shall be made on a formfurnished by the director of agriculture and shall beaccompanied with a fee of fifty dollars for each brand and product name ofeach grade. Labels for each brand and product name of each grade shallaccompany the application. Upon the approval of an application by thedirector, a copy of the registration shall be furnished the applicant. Allregistrations ~~expire on the thirtiethday of June of each~~ shall be valid for one year beginning on the first day of December of a calendar year through the thirtieth day of November of the following calendar year.

(5) The package sizes for persons that package fertilizers only in containersof ten pounds or less.

(C)(1) No person who engages in the business of applying custommixed fertilizer to lawns, golf courses, recreation areas, or otherreal property that is not used for agricultural production shall be requiredto register the custom mixed fertilizer as a specialty fertilizer inaccordance with division (A) of this section if thefertilizer ingredients of the custom mixed fertilizer are registered asspecialty fertilizers and the inspection fee described in division(A) of section 905.36 of the Revised Codeis paid.

(2) No person who engages in the business of blending custom mixedfertilizer for use on lawns, golf courses, recreation areas, or other realproperty that is not used foragricultural production shall be required to register the custom mixedfertilizer as a specialty fertilizer in accordance with division (A)of this section if the facility holds a nonagricultural production custommixed fertilizer blender license issued under section 905.331 of theRevised Code.

(D) A person who engages in the business of applying or blendingcustom mixed fertilizer as described in division(C) of this section shall maintain an originalor a copy of an invoice or document of sale for all fertilizer the personapplies or distributes for one year following the date of the application ordistribution, and, upon the director's request, shall furnish the directorwith the invoice or document of sale for the director's review.

Sec. 905.331. No person who engages in the business of blending a custommixed fertilizer for useon lawns, golf courses, recreation areas, or other real property that is notused for agricultural production shall fail to register a specialty fertilizerin accordance with division (A) of section 905.33 of theRevised Codeunless the person has obtained a an annual nonagricultural production custom mixedfertilizer blender license from the director of agriculture.

A license issued under this section shall be valid from the first day of December of a calendar year through the thirtieth day of November of the following calendar year. A renewal application for a nonagricultural production custom mixedfertilizer blender license shall be submitted to the director ~~no earlier thanthe first day of June each year and~~ no later than the thirtieth dayof ~~June~~ November each year and shall include the name and address of theapplicant and of the premises where the blending occurs and aone-hundred-dollar fee. A person who submits a renewal application for alicense after the thirtieth day of~~June~~ November shall include with the application a late filing fee of tendollars. All nonagricultural production custom mixed fertilizer blenderlicenses expire on the thirtieth day of ~~June of~~ November each year.

A person holding a nonagricultural production custom mixed fertilizerblender license shall pay the inspection fees described in division(A) of section 905.36 of the Revised Code for eachproduct being blended.

Sec. 905.36. (A) A licensee or registrant, exceptregistrants who package specialty fertilizers only in containersof ten pounds or less, shall pay the director of agriculture forall fertilizers distributed in this state an inspection fee atthe rate of ~~twelve~~ twenty-five cents per tonor ~~thirteen~~ twenty-eight cents per metric ton. Licensees and registrants shall specifyon an invoicewhether the per ton inspection fee has been paid or whether payment of the feeis the responsibility of the purchaser of the fertilizer. The payment of this inspectionfee by a licensee or registrant shall exempt all other personsfrom the payment of this fee.

(B) Every licensee or registrantshall file ~~a semiannual statement~~ with the director an annual tonnage report that includes the number of nettons or metric tons of fertilizer distributed to nonlicensees ornonregistrantsin this state by grade; packaged; bulk, dry or liquid~~; withinthirty days after the thirtieth day of June, and within thirtydays after the thirty-first day of December, respectively, of~~. The report shall be filed on or before the thirtieth day of November ofeach calendar year and shall include data from the period beginning on the first day of November of the year preceding the year in which the report is due through the thirty-first day of October of the year in which the report is due. The licensee or registrant, except registrants whopackage specialty fertilizers only in containers of ten pounds or less, shallinclude with this statement the inspection fee at the rate stated indivision (A) of this section. Fora tonnage report that is not filed or payment of inspection feesthat is not made ~~within ten days after due date~~ on or before the thirtieth day of November of the applicable calendar year, a penalty offifty dollars or tenper cent of the amount due,whichever is greater, shall be assessed against the licensee orregistrant. The amountof fees due, plus penalty, shall constitute a debt and become thebasis of a judgment against the licensee or registrant. For tonnage reports found to be incorrect, a penalty of fifteen per centof the amount due shall be assessed against the licensee or registrant andshall constitute a debt and become the basis of a judgment against thelicensee or registrant.

(C) No information furnished under this section shall bedisclosed by any employee of the department of agriculture insuch a way as to divulge the operation of any person required tomake such a report. The filing by a licensee or registrant of asales volume tonnage statement required by division (B) of thissection thereby grants permission to the director to verifythe same with the records of the licensee or registrant.

Sec. 905.37. (A) The director of agriculture ~~shall~~ may distributeannual statements of fertilizer sales by grades of materials and mixedfertilizer by counties, in a manner prescribed by the director.

(B) The director ~~shall~~ may publish ~~at least~~ annually a reportof the analysisof fertilizers inspected.

(C) The director may distribute a state fertilizer usage report by grade ofmaterials and mixed fertilizers for each month.

Sec. 905.38. The commercial feed, fertilizer, seed, and lime inspection andlaboratory fund is herebycreated in the state treasury. All moneys collected by thedirector of agriculture under sections 905.31 to 905.50of the Revised Code, shall be depositedinto thefund. Moneys creditedto the fund under this section and sections 905.66, 907.16, and 923.46 of the Revised Code shall be used for administering and enforcing this chapter and~~Chapter~~ Chapters 907. and 923. of the Revised Code and rules adopted under them.

Sec. 905.381. The director of agriculture shall keep accurate accounts ofall receipts and disbursements from the commercial feed, fertilizer, seed, and limeinspection and laboratory fund, and shall prepare, and provide upon request,an annual report classifying the receipts and disbursements as pertaining toeither feed, fertilizer, seed, or lime.

Sec. 905.50. If the director of agriculture has taken anofficial sample of a fertilizer or mixed fertilizer and determined that itconstitutes mislabeled fertilizer pursuant to rules adopted under section905.40 of the Revised Code, the person who labeled the fertilizer ormixed fertilizer shall pay a penalty to the consumer of the mislabeledfertilizer or, if the consumer cannot be determined with reasonable diligenceor is not available, to the director for deposit into the commercial feed,fertilizer, seed, and lime inspection and laboratory fund created under section905.38 of the Revised Code. The amount of the penalty shall be calculated inaccordance witheither division (A) or (B) of this section, whichever methodof calculation yields the largest amount.

(A)(1) A penalty required to be paidunder this section may be calculated as follows:

(a) Five dollars for each percentage point oftotal nitrogen or phosphorus in the fertilizer that is below the percentage ofnitrogen or phosphorus guaranteed on the label, multiplied by the number oftons of mislabeled fertilizer that have been sold to the consumer;

(b) Three dollars for each percentage point ofpotash in the fertilizer that is below the percentage of potash guaranteed onthe label, multiplied by the number of tons of mislabeled fertilizer that havebeen sold to the consumer.

(2) In the case of a fertilizer that contains a quantity of nitrogen,phosphorus, or potash that is more than five percentage points below thepercentages guaranteed on the label, the penalties calculated under division(A)(1) of this section shall be tripled.

(3) No penalty calculated under division (A) of this sectionshall be less than twenty-five dollars.

(B) A penalty required to be paid underthis section may be calculated by multiplying the market value of one unit ofthe mislabeled fertilizer by the number of units of the mislabeled fertilizerthat have been sold to the consumer.

(C) Upon making adetermination under this section that a person has mislabeledfertilizer or mixed fertilizer, the director shall determine theparties to whom the penalty imposed by this section is requiredto be paid and, in accordance with division(A) or(B) of this section, asapplicable, shall calculate the amount of the penalty requiredto be paid to each such party. After completing thosedeterminations and calculations, the director shall issue to theperson who allegedly mislabeled the fertilizer or mixedfertilizer a notice of violation. The notice shall beaccompanied by an order requiring, and specifying the manner of,payment of the penalty imposed by this section to the parties inthe amounts set forth in the determinations and calculationsrequired by this division. The order shall be issued inaccordance with Chapter 119. ofthe RevisedCode.

No person shall violate a term or condition of an orderissued under this division.

(1) "Politicalsubdivision" means a county, township, or municipal corporation and any otherbody corporate and politic that is responsible for government activities in ageographic area smaller than that of the state.

(2) "Local legislation" includes, but is not limited to, an ordinance, resolution, regulation, rule, motion, or amendment that is enacted or adopted by a political subdivision.

(B)(1) No political subdivision shall regulate the registration, packaging, labeling, sale, storage, distribution, use, or application offertilizer, or require a person licensed or registered under sections 905.31to 905.99 of the Revised Code to obtain a license or permitto operate in a manner described in those sections, or to satisfy any othercondition except as provided by a statute or rule of this state or of theUnited States.

(2) No political subdivision shall enact, adopt, or continue in effect local legislation relating to the registration, packaging, labeling, sale, storage, distribution, use, or application of fertilizers.

Sec. 905.66. All moneys collected by the director of agriculture undersections 905.51 to 905.65 of the Revised Code shall be deposited into thecommercial feed,fertilizer, seed, and lime inspection and laboratory fund created undersection 905.38 of the Revised Code.

The director shall prepare and provide a report concerning the fund inaccordance with section 905.381 of the Revised Code.

Sec. 907.111. (A) The department of agriculture has sole and exclusive authority to regulate the registration, labeling, sale, storage, transportation, distribution, notification of use, use, and planting of seed within the state. The regulation of seed is a matter of general statewide interest that requires uniform statewide regulation, and this chapter and rules adopted under it constitute a comprehensive plan with respect to all aspects of the regulation of seed within this state.

(1) Regulate the registration, labeling, sale, storage, transportation, distribution, notification of use, use, or planting of seed;

(2) Require a person who has been issued a permit or license under this chapter to obtain a permit or license to operate in a manner described in this chapter or to satisfy any other condition except as provided by a statute or rule of this state or of the United States;

(3) Require a person who has registered a legume innoculant under this chapter to register that innoculant in a manner described in this chapter or to satisfy any other condition except as provided by a statute or rule of this state or of the United States.

(C) No political subdivision shall enact, adopt, or continue in effect local legislation relating to the permitting or licensure of any person who is required to obtain a permit or license under this chapter or to the registration, labeling, sale, storage, transportation, distribution, notification of use, use, or planting of seed.

(D) As used in this section, "political subdivision" and "local legislation" have the same meanings as in section 905.501 of the Revised Code.

Sec. 907.16. All money collected by the director of agriculture under sections 907.01 to 907.17 of the Revised Code shall be deposited into the treasury of the state to thecredit of the commercial feed, fertilizer, seed, and lime inspection and laboratory fund~~, which is hereby~~ created in ~~the state treasury. Money credited to the fund shall be used to administer and enforce those sections and rules adopted under them~~ section 905.38 of the Revised Code.

Sec. 913.02. No person, firm, or corporation shall engagein the business of operating a cannery without obtaining alicense for the operation of each cannery from the director ofagriculture.

In order to obtain a license, an application shall be madeon a form prescribed by the director and shall be accompanied bya fee of ~~one~~ two hundred dollars. The director shall thereupon causean investigation to be made. If the applicant is supplied withthe facilities necessary for complying with sections 913.01 to913.05 of the Revised Code and rules adopted under them, alicense shall be issued and shall be effective until thethirtieth day of June, and shall become invalid on that dateunless renewed. The fee for each renewal is ~~one~~ two hundred dollars.License fees and renewal fees shall be deposited to the credit ofthe food safety fund created in section915.24 ofthe Revised Code.

The director may suspend or revoke any license for failureto comply with sections 913.01 to 913.05 of the Revised Code, orany rule or order adopted under those sections. In such event,the cannery immediately shall cease operation.

Sec. 913.23. (A) The director of agriculture may issuelicenses as required by sections 913.22 to 913.28 of the RevisedCode, may make the inspections and registrations required bythosesections, and may prescribe the form of application to be filedunder this section.

(B) No person shall manufacture or bottle for sale withinthis state any soft drink in closed containers unless theperson has alicense issued by the director. Upon receipt of an applicationfor such a license, the director shall examine the products andthe place of manufacture where the business is to be conducted,to determine whether the products and place comply with sections913.22 to 913.28 of the Revised Code. Upon finding there iscompliance, and upon payment of a license fee of ~~one~~ two hundreddollars, the director shall issue a license authorizing theapplicant to manufacture or bottle for sale such soft drinks,subject to sections 913.22 to 913.28 of the Revised Code. Thelicense shall expire on the last day of March of each year unlessrenewed.

(C) No soft drink that is manufactured or bottled out ofthe state shall be sold or offered for sale within this stateunless the soft drink and the plant in which the soft drink is manufactured orbottled are found by the director to comply with sections 913.22to 913.28 of the Revised Code, and is are registered by thedirector, whichshall be upon a like application as provided in division (B) ofthis section.

An annual registration fee of ~~one~~ two hundred dollars shall bepaid to the director by each applicant under this division. Theregistration shall be renewed annually, and the registration feepaid with the application for annual renewal.

Registration of out-of-state soft drink manufacturers or bottlers orsyrup and extract manufacturers is not required if a reciprocalagreement is in effect whereby a soft drink manufacturer or bottler or syrupand extract manufacturer located in this state is not subject toa license or registration fee by another state or a politicalsubdivision thereof.

(D) No person, other than a manufacturer or bottler holding a softdrink plant license under this section, shall sell, offer forsale, use, or have in the person's possession with intent tosell, anysoda water syrup or extract or soft drink syrup, to be used inmaking, drawing, or dispensing soda water or other soft drinks,without first registering the person's name and address, thename andaddress of the manufacturer of the syrup or extract, the numberand variety of such syrups or extracts intended to be sold, andthe trade name or brand of those products, with the director,together with such samples of the syrups or extracts as thedirector requestsfor analysis. The person also shall pay to the departmentofagriculture at the time of making registration a license fee of~~fifty~~ one hundred dollars. No license shall be granted by the directorunless the director determines that the syrup or extract isfree from allharmful drugs and other ingredients that, as used, may beinjurious to health. The registration shall be renewedannuallyupon like terms. If any manufacturer, bottler, agent, or seller islicensed or has registered the manufacturer's, bottler's, agent's, orseller's name and product as requiredby this section and has paid the manufacturer's, bottler's, agent's, orseller's fee, the manufacturer's, bottler's, agent's, or seller'sdistributor, retailagent, or retail seller using the products shall not berequiredto pay that fee. This section does not apply to local sellers ofsoft drinks as to syrups and extracts made by themselves fortheir own use exclusively.

(E) All moneys received under sections 913.22 to 913.28 ofthe Revised Code shall be deposited with the treasurer of stateto the credit of the food safety fundcreated insection 915.24 of the Revised Code.

(F) The director may revoke any license or registrationissued under sections 913.22 to 913.28 of the Revised Code,whenever the director determines thatthose sections have been violated. When a license has been revoked, thelicensee shall discontinuethe manufacture and sale of soft drinks or other products forwhich the license was issued. When a registration has beenrevoked, the registrant shall discontinue the sale within thisstate of the registrant's products until those sections havebeen compliedwith and a new license or registration has been issued. Thedirector may suspend any such license or registrationtemporarily, pending compliance with such conditions required bythose sections as the director prescribes.

Sec. 915.02. No person, firm, or corporation shall operate a cold-storagewarehouse, for hire, without a license issued by the director of agriculture. ~~Such~~ A license shall be issued only on written application stating the locationof ~~such~~ the warehouse. Upon receipt of the application the director shall causean examination to be made into the sanitary conditions of ~~such~~ the warehouse. Ifit is found to be in a sanitary condition and properly equipped for thepurpose of cold storage, the director shall cause a license to be issuedauthorizing the applicant to operate a warehouse. No license shall be issueduntil the applicant has paid to the director the sum of ~~one~~ two hundred dollars. ~~Such~~ A license shall be valid until the last day of March of each year andbecomes invalid on that date unless renewed. A license shall be required foreach separate warehouse building.

Sec. 915.16. The license fee for an establishment is~~twenty-five~~ fifty dollars. Any operator operating in connection with acold-storage warehouse holding a license under section 915.02 ofthe Revised Code is not required to secure an additional licenseunder section 915.15 of the Revised Code so long as he theoperator continues to be licensed as a cold-storage warehouse; buthe the operator shall comply with sections 915.14 to 915.24~~,inclusive,~~ of the Revised Code, and all rules and regulations promulgatedthereunder. Thelicense issued shall be in such form as the department ofagriculture prescribes. Licenses shall be valid until the lastday of November following initial issuance or renewal and shallbecome invalid on that date unless renewed. The original licenseor a certified copy thereof shall be conspicuously displayed bythe operator in the establishment.

Sec. 915.24. (A) There is hereby created in the statetreasury the food safety fund. All of the followingmoneys shall be credited to the fund:

(1) Bakery registration fees and fines received undersections 911.02 to 911.20 of the Revised Code;

(2) Cannery license fees and renewal fees received undersections 913.01 to 913.05 of the Revised Code;

(4) License fees, fines, and penalties recovered for theviolation of sections 915.01 to 915.12 of the Revised Code;

(6) License fees, other fees, and fines collected by or for the directorof agriculture underChapter 3717. of the Revised Code;

(7) Fees collected under section 3715.04 of the Revised Code for the issuance of certificates of health and freesale.

(B) The director of agriculture shall use the moneysdeposited into the food safety fund toadministerand enforce the laws pursuant to which the moneys were collected.

Sec. 921.02. (A)No person shall distribute a pesticidewithinthis stateunless thepesticide is registered with thedirector ofagricultureunder thischapter.Registrations shallbe issued for a period oftimeestablished byrule and shall berenewed in accordance withdeadlinesestablishedby rule.Registration is not required if apesticide isshippedfrom oneplant or warehouse to another plantor warehouse operatedby thesame person and used solely at thatplant or warehouse as aconstituent part to make a pesticide thatis registeredunderthis chapter, or if the pesticideisdistributed under theprovisions of an experimental use permitissued under section921.03 of the Revised Code or an experimentaluse permit issuedbythe United States environmental protectionagency.

(B) The applicant for registration of a pesticide shallfilea statement with the director on a form provided by thedirector,which shall include all of the following:

(1) The name and address of the applicant and the name andaddress of the person whose name will appear on the label, ifother than the applicant's name;

(3) Any necessary information required for completion ofthedepartment of agriculture's application for registration,including theagency registration number;

(4) A complete copy of the labeling accompanying thepesticide and a statement of all claims to be made for it,including the directions for use and the use classification asprovided for in the federal act.

(C) The director, when the director considers it necessaryin theadministration ofthis chapter, may requirethe submissionof thecompleteformula of anypesticide including the active andinertingredients.

(D) The director may require a full description of thetestsmade and the results thereof upon which the claims arebased forany pesticide. The director shall not consider any data submittedin support of anapplication, without permission of the applicant,in support of any other applicationfor registration unless theother applicant first hasoffered to pay reasonable compensationfor producing the testdata to be relied upon and the data are notprotected fromdisclosure by section 921.04 of the Revised Code.In the case ofa renewal of registration, a statement shall berequired onlywith respect to information that is different fromthatfurnished when the pesticide was registered or lastregistered.

(E) The director may require any other information to besubmitted with an application.

Any applicant may designate any portion of the requiredregistration information as a trade secret or confidentialbusiness information. Upon receipt of any required registrationinformation designated as a trade secret or confidential businessinformation, the director shall consider the designatedinformation as confidential and shall not reveal or cause to berevealed any such designated information without the consent ofthe applicants, except to persons directly involved in theregistration process described in this section or as required bylaw.

(F) ~~Each~~ Beginning January 1, 2007, each applicant shall pay a registration andinspectionfee~~established by rule~~ of one hundred fifty dollars for each productname andbrandregistered for the company whose name appears onthe label. Ifanapplicant files for a renewal ofregistrationafter the deadlineestablished by rule, theapplicant shall pay apenalty fee~~established by rule~~ of seventy-five dollars for eachproduct name andbrandregistered forthe applicant. The penaltyfee shall beadded tothe original feeand paid before the renewalregistration isissued. In additionto any other remedyavailableunderthis chapter,if a pesticidethat is notregistered pursuantto this section isdistributedwithin thisstate, the personrequired to register thepesticideshall do soand shall pay apenalty fee~~established by rule~~ of seventy-five dollars foreachproduct name and brandregistered for the applicant. Thepenaltyfee shall be added tothe original fee of one hundred fifty dollars and paid before theregistration is issued.

(G) Provided that the state isauthorized by theadministratorof the United States environmental protection agencyto registerpesticides to meet special local needs, the directorshallrequire the information set forth under divisions (B), (C),(D),and (E) of this section and shall register any such pesticideafter determining that all of the following conditionsare met:

(2) Its labeling and other material required to besubmittedcomply with the requirements of the federal act and ofthischapter, and rulesadoptedthereunder.

(3) It will perform its intended function withoutunreasonable adverse effects on the environment.

(4) When used in accordance with widespread and commonlyrecognized practice, it will not generally cause unreasonableadverse effects on the environment.

(5) The classification for general or restricted use is inconformity with the federal act.

The director shall not make any lack of essentiality acriterion for denying the registration of any pesticide. When twopesticides meet the requirements of division(G) of thissection,thedirectorshall notregister one in preference to theother.

(H)(1) The director may refuse to register a pesticide ifthe application for registration fails to comply with thissection.

(2) The director may suspend or revoke a pesticideregistration after a hearing in accordance with Chapter 119. ofthe Revised Code for a pesticide that fails to meet the claimsmade for it on its label.

(3) The director may immediately suspend a pesticideregistration, prior to a hearing, when the director believes thatthe pesticide poses an immediate hazard to human or animal healthor a hazard to the environment. Not later than fifteen days aftersuspending the registration, the director shall determine whetherthe pesticide poses such a hazard. If the director determinesthat no hazard exists, the director shall lift the suspension ofthe registration. If the director determines that a hazardexists, the director shall revoke the registration in accordancewith Chapter 119. of the Revised Code.

Sec. 921.16. (A) The director of agriculture shall adoptrules the director determines necessary for the effectiveenforcement andadministration ofthis chapter.The rules mayrelate to, but are notlimited to, thetime, place, manner, andmethodsof application,materials, andamounts and concentrationsofapplication ofpesticides, mayrestrict or prohibit the use ofpesticides indesignated areasduring specified periods of time,and shallencompass allreasonable factors that the directordeterminesnecessary tominimize or prevent damage to theenvironment. Inaddition, therules shall establish the~~fees,~~deadlines, and timeperiods forregistration, registrationrenewal, lateregistration renewal, and failure to register undersection921.02of theRevised Code; the fees for registration, registration renewal, late registration renewal, and failure to register under section 921.02 of the Revised Code that shall apply until the fees that are established under that section take effect on January 1, 2007;and thefees, deadlines, andtimeperiods forlicensure andlicense renewal undersections921.06,921.09,921.11, and 921.13 of the RevisedCode. Theaggregate amount of the fees that initiallyare established byrule after the effective date of this amendment shall be designedto cover, but not exceed, the costs incurred bythe department ofagriculture in administering this chapter.Thereafter, the feesshall not be increased without the approvalof the generalassembly.

(B) The director shall adopt rules that establish a scheduleofcivil penalties for violations ofthis chapter, or any rule ororder adopted orissued underit, provided that the civil penaltyfor a firstviolation shall not exceed five thousand dollars andthe civilpenalty for each subsequent violation shall not exceedtenthousand dollars. In determining the amount of a civilpenaltyfor a violation, the director shall consider factorsrelevant tothe severity of the violation, including pastviolations and theamount of actual or potential damage to theenvironment or tohuman beings.

(1) Requires that notice or posting be given of a proposedapplication of a pesticide;

(2)Requires inspection, condemnation, or repair ofequipmentused to apply a pesticide;

(3) Will suspend, revoke, or refuse to issue anypesticideregistration for a violation ofthis chapter;

(4) Requires safe handling, transportation, storage,display, distribution, and disposal of pesticides and theircontainers;

(5) Ensures the protection of the health and safety ofagricultural workersstoring, handling, or applying pesticides,and all residents ofagricultural labor camps, as that term isdefined in section3733.41 of the Revised Code, who are living orworking in thevicinity of pesticide-treated areas;

(6) Requires a record to be kept of all pesticideapplications made by eachcommercial applicatorand by anytrainedserviceperson acting under the commercial applicator'sdirectsupervision and of all restricteduse pesticideapplications madeby each privateapplicatorand by any immediatefamilymember or subordinate employee of that private applicatorwho isacting under the private applicator's direct supervision asrequired under section921.14 of the Revised Code;

(7) Determinesthe pesticide-use categories ofdiagnosticinspections that must beconducted by a commercial applicator;

(8) Requires a record to be kept of all diagnosticinspectionsconducted byeach commercial applicatorand by anytrained serviceperson.

(D)The director shall prescribe standards for thelicensureofapplicators of pesticides consistentwith thoseprescribed bythe federal actand the regulationsadoptedunder it or prescribestandards that are morerestrictive than those prescribed by thefederal act and theregulations adopted under it. The standardsmay relate to the use ofapesticide orto an individual'spesticide-use category.

The director shall take into consideration standards of theUnited Statesenvironmental protection agency.

(E) The director may adopt rules setting forth theconditions underwhich the director will:

(1) Designate, inadditionto thoserestricted uses soclassified by theadministrator of theUnited States environmentalprotectionagency, restricted uses ofpesticidesfor the state orfordesignated areas within the stateand, if the directorconsidersit necessary, to further restrictsuch use;

(2) Define what constitutes "acting under the instructionsand control of a commercial applicator" as used in the definitionof "direct supervision" in division (Q)(1) of section 921.01 ofthe Revised Code. In adopting a rule under division (F)(2) ofthis section, the director shall consider the factors associatedwith the use of pesticide in the various pesticide-use categories.Based on consideration of the factors, the director may define"acting under the instructions and control of a commercialapplicator" to include communications between a commercialapplicator and a trained serviceperson that are conducted vialandline telephone or a means of wireless communication. Anyrules adopted under division (F)(2) of this section shall bedrafted in consultation with representatives of the pesticideindustry.

(G)Except as provided in division (D) of this section,thedirector shall not adopt any rule underthis chapter thatisinconsistent with therequirements of the federal act andregulations adopted thereunder.

(H) The director, after notice and opportunity forhearing,may declare as a pest any form of plant oranimal life,other thanhuman beings and other thanbacteria, viruses, andothermicroorganisms on or in living human beings or otherlivinganimals,that is injurious to health or the environment.

(I) The director may make reports to theUnited Statesenvironmentalprotection agency, in the form and containing theinformation theagency may require.

(J) The director shall adopt rules for theapplication,use, storage, anddisposal of pesticides if, in the director'sjudgment,existing programs of the UnitedStates environmentalprotection agency necessitate such rules or pesticidelabels donot sufficiently address issues or situations identified by thedepartment of agriculture or interested state agencies.

(1) Standards, requirements, and procedures for theexamination and re-examination of commercial applicators andprivate applicators;

(2) With respect to training programs that the director mayrequire commercial applicators and private applicators tocomplete:

(a) Standards and requirements that a training program mustsatisfy in order to be offered by the director or the director'srepresentative or in order to be approved by the director if athird party wishes to offer it;

(b) Eligibility standards and requirements that must besatisfied by third parties who wish to provide the trainingprograms;

(c) Procedures that third parties must follow in order tosubmit a proposed training program to the director for approval;

(d) Criteria that the director must consider whendeterminingwhether to authorize a commercial applicator orprivate applicatorto participate in a training program instead ofbeing required topass a re-examination.

(L) The director shall adopt all rules underthis chapter inaccordancewithChapter 119. ofthe Revised Code.

Sec. 923.44. (A)(1) Except as otherwise provided indivisions (A)(2), (3), and (4) of this section, the firstdistributor of a commercial feed shall pay the director ofagriculture a semiannual inspection fee at the rate of ~~ten~~ twenty-five centsper ton, with a minimum payment of ~~ten~~ twenty-five dollars, on all commercialfeeds distributed by ~~him~~ the first distributor in this state.

(2) The semiannual inspection fee required under division(A)(1) of this section shall not be paid by the first distributorof a commercial feed if the distribution is made to an exemptbuyer who shall be responsible for the fee. The director shallestablish an exempt list consisting of those buyers who areresponsible for the fee.

(3) The semiannual inspection fee shall not be paid on acommercial feed if the fee has been paid by a previousdistributor.

(4) The semiannual inspection fee shall not be paid oncustomer-formula feed if the fee has been paid on the commercialfeeds ~~which~~ that are used as components in that customer-formula feed.

(B) Each distributor or exempt buyer who is required topay a fee under division (A)(1) or (2) of this section shall filea semiannual statement with the director that includes the numberof net tons of commercial feed distributed by ~~him~~ the distributor orexempt buyer in this state, within thirty days after the thirtieth day ofJune and within thirty days after the thirty-first day of December,respectively, of each calendar year.

The inspection fee at the rate stated in division (A)(1) ofthis section shall accompany the statement. For a tonnage reportthat is not filed or payment of inspection fees that is not madewithin fifteen days after the due date, a penalty of ten per centof the amount due, with a minimum penalty of fifty dollars shallbe assessed against the distributor or exempt buyer. The amountof fees due, plus penalty, shall constitute a debt and become thebasis of a judgment against the distributor or exempt buyer.

(C) No information furnished under this section shall bedisclosed by an employee of the department of agriculture in sucha way as to divulge the operation of any person required to makesuch a report.

Sec. 923.45. The director of agriculture ~~shall~~ may publish ~~at least~~ annually insuch form as he the director considers proper:

(A) Information concerning the sale of commercial feed, including anyproduction and use data he the director considers advisable,provided that the data does not disclose the operation of any manufacturer ordistributor;

(B) A comparison of the analyses of official samples of commercial feedsdistributed in this state with the guaranteed analyses on the label.

Sec. 923.46. All moneys collected by the director of agriculture undersections 923.41 to 923.55 of the Revised Code shall be deposited into thestate treasury to the credit of the commercial feed, fertilizer, seed, andlime inspection and laboratory fund created insection 905.38 of the Revised Code. ~~Money credited to the fund shall be usedonly foradministering and enforcing this chapter and Chapter 905. of the Revised Codeand rules adopted under them.~~

The director shall prepare and provide a report concerning the fund inaccordance with section 905.381 of the Revised Code.

(A) "Agricultural commodity" means barley, corn, oats,rye, grain sorghum, soybeans, wheat, sunflower, speltz, oranyother agricultural crop ~~which~~ that the director of agriculture maydesignate by rule. "Agricultural commodity" does not mean anygrain that is purchased for sale as seed.

(1) Engaging in or participating in the business ofpurchasing an from producers agricultural ~~commodity for sale, resale,processing, or~~ commodities for any ~~other~~ use in ~~the following volumes:~~

~~(a) In the case of purchases made from producers, more than~~ excess ofthirty thousand bushels annually;

~~(b) In the case of purchases madefrom agricultural commodity handlers, more than one hundredthousand bushels annually;~~

~~(c) In the case of total purchasesmade from producers combined with total purchases made fromhandlers, more than one hundred thousand bushelsannually.~~

(2) Operating a warehouse as a bailee for the receiving,storing, shipping, or conditioning of an agricultural commodity;

(3) Receiving into a warehouse an agricultural commoditypurchased under a delayed price agreement;

(4) Providing marketing functions, including storage,delayed price marketing, deferred payment, feed agreements, orany other marketing transaction whereby control is exerted overthe monetary proceeds of a producer's agricultural commoditiesby a person other than the producer.

(C) "Agricultural commodity handler" or "handler" meansany person who is engaged in the business of agriculturalcommodity handling. ~~"Agricultural commodity handler" or"handler" does not include a person who does not handle agriculturalcommodities as abailee and who purchases agricultural commodities in thefollowing volumes:~~

~~(2) One hundred thousand or fewer bushels annually from agriculturalcommodity handlers.~~

A person who does not handle agricultural commoditiesas a bailee and who annually purchases thirty thousand or fewerbushels of agricultural commodities from producers and onehundred thousand or fewer bushels of agricultural commoditiesfrom agricultural commodity handlers shall be considered to bean agricultural commodity handler if the combined annual volumeof purchases from the producers and the agricultural commodityhandlers exceeds one hundred thousand bushels.

(1) Any person who delivers an agricultural commodity to alicensed handler for storage, conditioning, shipment, or sale;

(2) Any owner or legal holder of a ticket or receiptissued for an agricultural commodity who is a creditor of thelicensed handler for the value of the agricultural commodity;

(3) Any licensed handler storing an agricultural commoditythat the licensed handler owns solely, jointly, or in commonwith others in awarehouse owned or controlled by the licensed handler or anyother licensedhandler.

(F) "Nonnegotiable receipt" means a receipt on which it isstated that the agricultural commodity received will be deliveredto the depositor or to the order of any other person named in thereceipt.

(G) "Negotiable receipt" means a receipt on which it isstated that the agricultural commodity received will be deliveredto the bearer or to the order of any person named in the receipt.

(H) "Ticket" means a scale weight ticket, a load slip, orany evidence, other than a receipt, given to a depositor by alicensed handler upon delivery of an agricultural commodity tothe handler.

(I) "Warehouse" means any building, bin, protectedenclosure, or similar premises under the control of a licensed orunlicensed handler used for receiving, storing, shipping, orhandling an agricultural commodity.

(J) "Storage" means the deposit of an agriculturalcommodity into a warehouse either for the account of the licensedhandler operating the warehouse or for the account of adepositor.

(K) "Producer" means any person who grows an agriculturalcommodity on land that the person owns or leases.

(L) "Agent" means any person, other than a producer, whodelivers an agricultural commodity to a licensed handler, eitherfor sale or for storage, for the account of the producer.

(M) "Agricultural commodity tester" or "tester" means aperson who operates a moisture meter and other quality testingdevices to determine the quality of an agricultural commodity.

(N) "Federally licensed grain inspector" means a personwho is licensed by the United States department of agricultureunder the "United States Grain Standards Act," 39 Stat. 482(1916), 7 U.S.C. 71, as amended, to test and grade grain, as"grain" is defined in that act.

(O) "Bailee" means a person to whom an agriculturalcommodity is delivered in trust for storage in a warehouse withtitle remaining in the name of the depositor.

(P) "Bailor" means a person who delivers an agriculturalcommodity to a bailee in trust for storage in a warehouse withtitle remaining in the name of the depositor.

(Q) "Bailment agreement" means a bailor-bailee agreementbetween a depositor and a licensed handler as stated in the termsof a receipt that is issued for an agricultural commodity instorage and subject to the requirements of this chapter governingthe use of a receipt.

(R) "Delayed price agreement" means a written executorycontract executed by and between a licensed handler and adepositor that covers the sale and transfer of title of anagricultural commodity and states in its written terms theservice charges and the method for pricing the commodity at alater date.

(S) "Delayed price marketing" means the sale and transferof title of an agricultural commodity with the price to beestablished at a later date according to the terms of a delayedprice agreement.

(T) "Deferred payment"means the deferral of payment to a depositor by a licensedhandler for an agricultural commodity to which the licensedhandler has taken title, for the purpose of deferring income ofthe depositor from one tax year to another.

(U) "Feed agreement"means a written contract executed by and between a licensedhandler and a producer or depositor who delivers an agriculturalcommodity to the licensed handler for storage whereby each of the followingapplies:

(1) The producer or depositor transfers title to theagricultural commodity to the licensed handler in exchange for anominal sum;

(2) The producer, upon delivery of the agriculturalcommodity to the licensed handler, becomes a creditor of thelicensed handler due to the lien that arises under section926.021 of the RevisedCode;

(3) All or part of the agricultural commodity isreturned to the producer at a later date and used for feedpurposes.

(V) Notwithstandingsection 1.02 of the RevisedCode, "and" shall not be read"or" and "or" shall not be read "and."

Sec. 927.69. To effect the purpose of sections 927.51 to 927.74of the Revised Code, the director of agriculture or the director's authorizedrepresentative may:

(A) Make reasonable inspection of any premises in this state and any propertytherein or thereon;

(B) Stop and inspect in a reasonable manner, any means of conveyance movingwithin this state upon probable cause to believe it contains or carries anypest, host, commodity, or other article that is subject to sections 927.51 to927.72 of the Revised Code;

(C) Conduct inspections of agricultural products that are required by other states, the United States department of agriculture, other federal agencies, or foreign countries to determine whether the products are infested. If, upon making such an inspection, the director or the director's authorized representative determines that an agricultural product is not infested, the director or the director's authorized representative may issue a certificate, as required by other states, the United States department of agriculture, other federal agencies, or foreign countries, indicating that the product is not infested.

If the director charges fees for any of the certificates, agreements, or inspections specified in this section, the fees shall be as follows:

(4) Agricultural products and their conveyances inspections, ~~sixty-five dollars~~ an amount equal to the hourly rate of pay in the highest step in the pay range, including fringe benefits, of a plant pest control specialist multiplied by the number of hours worked by such a specialist in conducting an inspection.

The director may adopt rules under section 927.52 of the Revised Code that define the certificates, agreements, and inspections.

The fees shall be deposited into the state treasury to the credit of the pesticide program fund created in Chapter 921. of the Revised Code. Money credited to the fund shall be used to pay the costs incurred by the department of agriculture in administering this chapter, including employing a minimum of two additional inspectors.

Sec. 1111.04. (A) Prior to soliciting or engaging in trustbusiness in this state, a trust company shall pledge to the treasurer of stateinterest bearing securities authorized in division (B) of thissection, having a par value, not including unaccrued interest, of one hundredthousand dollars, and approved by the superintendent of financialinstitutions. The trust company may pledge the securities either by deliveryto the treasurer of state or by placing the securities with a qualifiedtrustee for safekeeping to the account of the treasurer of state, thecorporate fiduciary, and any other person having an interest in the securitiesunder Chapter 1109. of the Revised Code, as their respective interests may appearand be asserted by written notice to or demand upon the qualified trustee orby order of judgment of a court.

(B) Securities pledged by a trust company to satisfy therequirements of division (A) of this section shall be one or more ofthe following:

(1) Bonds, notes, or other obligations of or guaranteed by theUnited States or for which the full faith and credit of theUnited States is pledged for the payment of principal andinterest;

(2) Bonds, notes, debentures, or other obligations or securities issued byany agency or instrumentality of the United States;

(3) General obligations of this or any other state of the UnitedStates or any subdivision of this or any other state of theUnited States.

(C) The treasurer of state shall accept delivery of securitiespursuant to this section when accompanied by the superintendent's approval ofthe securities or the written receipt of a qualified trustee describing thesecurities and showing the superintendent's approval of the securities, andshall issue a written acknowledgment of the delivery of the securities or thequalified trustee's receipt and the superintendent's approval to the trustcompany.

(D) The superintendent shall approve securities to be pledged bya trust company pursuant to this section if the securities are all of thefollowing:

(2) Of one or more of the kinds authorized by division (B) ofthis section and not a derivative of or merelyan interest in any of those securities;

(E) The treasurer of state shall, with the approval of thesuperintendent, permit a trust company to pledge securities in substitutionfor securities pledged pursuant to this section and the withdrawal of thesecurities substituted for so long as the securities remaining pledged satisfythe requirements of division (A) of this section. The treasurer ofstate shall permit a trust company to collect interest paid on securitiespledged pursuant to this section so long as the trust company is solvent. Thetreasurer of state shall, with the approval of the superintendent, permit atrust company to withdraw securities pledged pursuant to this section when thetrust company has ceased to solicit or engage in trust business in this state.

(F) For purposes of this section, a qualified trustee is afederal reserve bank located in this state, a branch of a federal reserve banklocated in this state regardless of where the branch is located, a federal home loan bank, or a trustcompany as defined in section 1101.01 of the Revised Code,except a trust company may not actas a qualified trustee for securities it or anyof its affiliates is pledging pursuant to this section.

(G) The superintendent, with the approval of the treasurer ofstate and the attorney general, shall prescribe the form of all receipts andacknowledgments provided for by this section, and upon request shall furnish acopy of each form, with the superintendent's certification attached, to eachqualified trustee eligible to hold securities for safekeeping under thissection.

Sec. 1327.511. All money collected under section 1327.50 of the Revised Codefor services rendered by the department of agriculture in operating the typeevaluation program shall be deposited in the state treasury to the credit ofthe metrology and scale certification fund, which is hereby created. Money credited to thefund shall be used to pay operating costs incurred by the department inadministering the program.

Sec. 1502.02. (A) There is hereby created in thedepartment of natural resources the division of recycling and litterprevention to be headed by the chief of recycling and litter prevention.

(B) There is hereby created in the state treasury therecycling and litter prevention fund, consisting of moneysdistributed to it from fees, including the fee levied under division (A)(2) of section 3714.073 of the Revised Code, gifts, donations, grants, reimbursements, and other sources, including investment earnings.

(1) Use moneys credited to the fund exclusively for thepurposes set forth in sections 1502.03, 1502.04, and 1502.05 ofthe Revised Code, with particular emphasis on programs relatingto recycling;

(2) Expend for administration of the division not more than ten per cent ofany fiscal year'sappropriation to the division, excluding the amount assessed tothe division for direct and indirect central support charges;

(3) Require recipients of grants under section 1502.05 ofthe Revised Code, as a condition of receiving and retaining them,to do all of the following:

(a) Create a separate account for the grants and any cashdonations received that qualify for the donor credit allowed bysection 5733.064 of the Revised Code;

(b) Make expenditures from the account exclusively for thepurposes for which the grants were received;

(d) Report to the chief information regarding the amountand donor of cash donations received as described by section5733.064 of the Revised Code;

(e) Use grants received to supplement and not to replaceany existing funding for such purposes.

(4) Report to the tax commissioner information the chief receivespursuant to division (C)(3)(d) of this section.

Sec. 1509.06. (A) An application for a permit to drill a newwell, drill an existing well deeper, reopen a well, convert awellto any use other than its original purpose, or plug back awell toa different source of supply shall be filed with thechief of thedivision of mineral resourcesmanagement upon such form as thechiefprescribes and shall contain each of the following that isapplicable:

~~(A)~~(1) The name and address of the owner and, if acorporation,the name and address of the statutory agent;

~~(B)~~(2) The signature of the owner or the owner's authorizedagent. When an authorized agent signs an application, it shall beaccompanied by a certified copy of the appointment as suchagent.

~~(C)~~(3) The names and addresses of all persons holding theroyalty interest in the tract upon which the well is located oristo be drilled or within a proposed drilling unit;

~~(D)~~(4) The location of the tract or drilling unit on whichthewell is located or is to be drilled identified by section orlotnumber, city, village, township, and county;

~~(F)~~(6) The geological formation to be tested or used and theproposed total depth of the well;

~~(H)~~(8) If the well is for the injection of a liquid, identityof the geological formation to be used as the injection zone andthe composition of the liquid to be injected;

~~(I)~~(9) For an application for a permit to drill a new well, a sworn statement that the applicant has provided notice of the application to the owner of each occupied dwelling unit that is located within five hundred feet of the surface location of the well if the surface location will be less than five hundred feet from the boundary of the drilling unit and more than fifteen occupied dwelling units are located less than five hundred feet from the surface location of the well, excluding any dwelling that is located on real property all or any portion of which is included in the drilling unit. The notice shall contain a statement that an application has been filed with the division of mineral resources management, identify the name of the applicant and the proposed well location, include the name and address of the division, and contain a statement that comments regarding the application may be sent to the division. The notice may be provided by hand delivery or regular mail. The identity of the owners of occupied dwelling units shall be determined using the tax records of the municipal corporation or county in which the dwelling unit is located as of the date of the notice.

~~(J)~~(10) A plan for restoration of the land surface disturbedbydrilling operations. The plan shall provide for compliancewiththe restoration requirements of division (A) of section1509.072of the Revised Code and any rules adopted by the chiefpertainingto that restoration.

~~(K)~~(11) A description by name or number of the county,township,and municipal corporation roads, streets, and highwaysthat theapplicant anticipates will be used for access to andegress fromthe well site;

Each application shall be accompanied by a map, on a scalenot smaller than four hundred feet to the inch, prepared by anOhio registered surveyor, showing the location of the well andcontaining such other data as may be prescribed by the chief. Ifthe well is or is to be located within the excavations andworkings of a mine, the map also shall include the location ofthemine, the name of the mine, and the name of the personoperatingthe mine.

(B) The chief shall cause a copy of the weekly circularpreparedby the division to be provided to thecounty engineer of eachcounty that contains active or proposeddrilling activity. Theweekly circular shall contain, in themanner prescribed by thechief, the names of all applicants forpermits, the location ofeach well or proposed well, theinformation required by division~~(K)~~(A)(11) of this section, andanyadditional information the chiefprescribes. In addition, the chief promptly shall transfer an electronic copy or facsimile, or if those methods are not available to a municipal corporation or township, a copy via regular mail, of a drilling permit application to the clerk of the legislative authority of the municipal corporation or to the clerk of the township in which the well or proposed well is or is to be located if the legislative authority of the municipal corporation or the board of township trustees has asked to receive copies of such applications and the appropriate clerk has provided the chief an accurate, current electronic mailing address or facsimile number, as applicable.

(C) The chief shall notissue a permit for at least ten daysafter the date of filing ofthe application for the permit unless,upon reasonable causeshown, the chief waives that period or arequest forexpedited review isfiled under this section.However,the chief shall issue apermit within twenty-one days ofthefiling of the applicationunless the chief denies theapplicationby order.

(D) An applicant may file a request with the chief forexpeditedreview of a permit application if the well is notoris not to belocated in a gas storage reservoir or reservoirprotective area,as "reservoir protective area" is defined insection 1571.01 ofthe Revised Code. If the well is or is to belocated in a coalbearing township, the application shall beaccompanied by theaffidavit of the landowner prescribed insection 1509.08 of theRevised Code.

In addition to a complete application for a permit that meetstherequirements of this section and the permit fee prescribed bythis section, arequest for expedited review shall be accompaniedby a separate nonrefundablefilingfee of five hundred dollars.Upon the filing of a request forexpedited review, the chief shallcause the county engineer of the county inwhich the wellis or isto be located to be notified of the filing of the permitapplication and the request for expedited review by telephone orother means that in the judgment of the chiefwill providetimelynotice of the application and request. Thechief shall issue apermit within seven days of the filing of therequest unless thechief denies the application by order. Notwithstanding theprovisions of this section governingexpedited review of permitapplications, the chief may refuse toaccept requests forexpedited review if, in the chief'sjudgment, theacceptance ofthe requests would prevent the issuance, withintwenty-one days oftheir filing, of permits for whichapplications are pending.

(E) A well shall be drilled and operated in accordance with theplans, sworn statements, and other information submitted in theapproved application.

(F) The chief shall issue an order denying a permit if thechieffinds that there is a substantial risk that the operationwillresult in violations of this chapter or rules adoptedunder itthat will present an imminent danger topublic healthor safety ordamage to the environment, provided that where thechief findsthat terms or conditions to the permit can reasonablybe expectedto prevent such violations, the chief shall issue thepermitsubject to those terms or conditions, including, if applicable, terms and conditions regarding subjects identified in rules adopted under section 1509.03 of the Revised Code.

(G) Each application for a permit required by section 1509.05ofthe Revised Code, except an application to plug back an existing well that is required by that section and an application for a well drilled orreopened for purposes of section 1509.22 of the Revised Code,alsoshall be accompanied by a nonrefundable fee ~~of two~~ as follows:

(1) Two hundredfiftydollars for a permit to conduct activities in a township with a population of fewer than five thousand;

(2) Five hundred dollars for a permit to conduct activities in a township with a population of five thousand or more, but fewer than ten thousand;

(3) Seven hundred fifty dollars for a permit to conduct activities in a township with a population of ten thousand or more, but fewer than fifteen thousand;

(4) One thousand dollars for a permit to conduct activities in either of the following:

For purposes of calculating fee amounts, populations shall be determined using the most recent federal decennial census.

Each application for the revision or reissuance of a permit shall be accompanied by a nonrefundable fee of two hundred fifty dollars.

(H) The chief may order the immediate suspension of drilling,operating, or plugging activities after finding thatany person iscausing, engaging in, or maintaining a condition or activitythatin the chief's judgment presents animminent danger topublichealth or safety or results in or is likely to result inimmediatesubstantial damage to natural resources or fornonpayment of ~~the~~ afee required by this section. The chief mayorder the immediatesuspension of the drilling or reopening of awell in a coalbearingtownship after determining that the drilling or reopeningactivities presentan imminent and substantial threat to publichealth or safety or to miners'health or safety. Before issuinganysuch order, the chief shall notify the owner in such manner asinthe chief's judgment would provide reasonable notification thatthe chief intends to issue a suspension order. The chief mayissue suchan order without prior notification if reasonableattempts tonotify the owner have failed, but in such an eventnotificationshall be given as soon thereafter as practical.Within fivecalendar days after the issuance of the order, thechief shallprovide the owner an opportunity to be heard and topresentevidence that the condition or activity is not likely toresultin immediate substantial damage to natural resources ordoes notpresent an imminent danger to public health or safety orto miners' healthor safety, if applicable. In the case ofactivities in a coal bearing township, if the chief, afterconsidering evidence presented by the owner, determines that theactivities donot present such a threat, the chief shall revokethe suspensionorder. Notwithstanding any provision of thischapter, the ownermayappeal a suspension order directly to thecourt of commonpleas of thecounty in which the activity islocated or, if in a coal bearing township,to thereclamationcommission under section 1513.13 of the RevisedCode.

Sec. 1509.072. No oil or gas well owner or agent of an oil orgas well owner shall fail to restore the land surface within the areadisturbed in siting, drilling, completing, and producing the well as requiredin this section.

(A) Within five months after the date upon which thesurface drilling of a well is commenced, the owner or theowner's agent, in accordance with therestorationplan filed underdivision ~~(J)~~(A)(10) of section 1509.06 of the Revised Code,shall fill all thepits for containing brine, other waste substances resulting,obtained, or produced in connection with exploration ordrilling for, or production of, oil or gas, or oil that arenot requiredbyother state or federal law or regulation, and remove all concretebases, drilling supplies, and drilling equipment. Within ninemonths after the date upon which the surface drilling of a wellis commenced, the owner or the owner's agent shall grade orterrace andplant, seed, or sod the area disturbed that is not required inproduction of the well where necessary to bind the soil andprevent substantial erosion and sedimentation. If the chief ofthe division of mineral resources management findsthat a pit used for containingbrine, other waste substances, or oil is in violation of section1509.22 of the Revised Code or rules adopted or orders issuedunder it, the chief may require the pit to be emptiedandclosed before expiration of the five-month restoration period.

(B) Within six months after a well that has produced oilor gas is plugged, or after the plugging of a dry hole, the owneror the owner's agent shall remove all production and storagestructures,supplies, and equipment, and any oil, salt water, and debris, andfill any remaining excavations. Within that period theowner orthe owner's agent shall grade or terrace and plant, seed, orsod the areadisturbed where necessary to bind the soil and preventsubstantial erosion and sedimentation.

The owner shall be released from responsibility to performany or all restoration requirements of this section on any partor all of the area disturbed upon the filing of a request for awaiver with and obtaining the written approval of the chief,which request shall be signed by the surface owner to certify theapproval of the surface owner of the release sought. The chiefshall approve the request unless the chieffinds uponinspection thatthe waiver would be likely to result in substantial damage toadjoining property, substantial contamination of surface orunderground water, or substantial erosion or sedimentation.

The chief, by order, may shorten the time periods providedfor under division (A) or (B) of this section if failure toshorten the periods would be likely to result in damage to publichealth or the waters or natural resources of the state.

The chief, upon written application by an owner or anowner's agent showing reasonable cause, may extend the periodwithin whichrestoration shall be completed under divisions (A) and (B) ofthis section, but not to exceed a further six-month period,except under extraordinarily adverse weather conditions or whenessential equipment, fuel, or labor is unavailable to the owneror the owner's agent.

If the chief refuses to approve a request for waiver orextension, the chief shall do so by order.

Sec. 1509.31. Whenever the entire interest of an oil andgas lease is assigned or otherwise transferred, the assignor ortransferor shall notify the holders of the royalty interests,and, if a well or wells exist on the lease, the division of mineral resourcesmanagement, of the name and address ofthe assignee or transferee bycertified mail, return receipt requested, not later than thirtydays after the date of the assignment or transfer. When noticeof any such assignment or transfer is required to be provided tothe division, it shall be provided on a form prescribed andprovided by the division and verified by both the assignor ortransferor and by the assignee or transferee. The notice formapplicable to assignments or transfers of a well to the owner ofthe surface estate of the tract on which the well is locatedshall contain a statement informing the landowner that the wellmay require periodic servicing to maintain its productivity;that, upon assignment or transfer of the well to thelandowner, the landowner becomes responsible for compliance with therequirements of this chapter and rules adopted under it,including, without limitation, the proper disposal of brineobtained from the well, the plugging of the well when it becomesincapable of producing oil or gas, and the restoration of thewell site; and that, upon assignment or transfer of the well tothe landowner, the landowner becomes responsible for thecosts of compliance with the requirements of this chapter and rulesadopted under it and the costs for operating and servicing thewell.

The owner holding a permit under section 1509.05 of theRevised Code is responsible for all obligations and liabilitiesimposed by this chapter and any rules, orders, and terms andconditions of a permit adopted or issued underit, and no assignment ortransfer by the owner relieves the owner of the obligations andliabilities until and unless the assignee or transferee fileswith the division the information described indivisions (A)(1), ~~(B)~~(2), ~~(C)~~(3), ~~(D)~~(4), ~~(E)~~(5), ~~(J)~~(10), ~~(K)~~(11),and ~~(L)~~(12) of section 1509.06 of the Revised Code;obtains liability insurance coverage requiredby section 1509.07 of theRevised Code, except when none is required by that section; andexecutes and files a surety bond, negotiable certificates ofdeposit or irrevocable letters of credit, or cash, as described inthat section. Instead of a bond,but only upon acceptance by the chief of the division of mineral resourcesmanagement,the assignee or transferee may file proof of financialresponsibility, described in section 1509.07 of the Revised Code. Section 1509.071 of the Revised Code applies to the surety bond,cash, and negotiable certificates of deposit and irrevocable letters ofcredit described in thissection. Unless the chief approves a modification, each assigneeor transferee shall operate in accordance with the plans andinformation filed by the permit holder pursuant to section1509.06 of the Revised Code.

Sec. 1515.14. Within the limits of funds appropriated tothe department of natural resources and the soil and water conservation district assistance fund created in this section, there shall be paid in eachcalendar year to each local soil and water conservation districtan amount not to exceed one dollar for each one dollar receivedin accordance with section 1515.10 of the Revised Code, received from tax levies in excess of the ten-mill levy limitation approved for the benefit of local soil and water conservation districts, orreceived from an appropriation by a municipal corporation ora township to a maximum of eightthousand dollars, provided that the Ohio soil and waterconservation commission may approve payment to a district in anamount in excess of eight thousand dollars in any calendar yearupon receipt of a request and justification from the district.The county auditor shall credit such payments to the special fundestablished pursuant to section 1515.10 of the Revised Code forthe local soil and water conservation district. The departmentmay make advances at least quarterly to each district on thebasis of the estimated contribution of the state to eachdistrict. Moneys received by each district shall be expended forthe purposes of the district.

For the purpose of providing money to soil and water conservation districts under this section, there is hereby created in the state treasury the soil and water conservation district assistance fund consisting of money credited to it under section 3714.073 of the Revised Code.

Sec. 1517.02. There is hereby created in the department ofnatural resources the division of natural areas and preserves,which shall be administered by the chief of natural areas and preserves. The chief shall take an oath ofoffice and shall file in the office of the secretary of state abond signed by the chief and by a surety approved by thegovernor for asum fixed pursuant to section 121.11 of the Revised Code.

The chief shall administer a system of naturepreserves and wild, scenic, and recreational river areas. Thechief shall establish a system of nature preserves throughacquisition and dedication of natural areas of state or nationalsignificance, which shall include, but not be limited to, areas~~which~~ that represent characteristic examples of Ohio's naturallandscape types and its natural vegetation and geologicalhistory. The chief shall encourage landowners to dedicate areasof unusual significance as nature preserves, and shall establishand maintain a registry of natural areas of unusual significance.

The chief may supervise, operate, protect, and maintainwild, scenic, and recreational river areas, as designated by thedirector of natural resources. The chief may cooperate withfederal agencies administering any federal program concerningwild, scenic, or recreational river areas.

The chief may, with the approval of the director, enterinto an agreement with the United States department of commerceunder the "Coastal Zone Management Act of 1972," 86 Stat. 1280,16 U.S.C.A. 1451, as amended, for the purpose of receiving grantsto continue the management, operation, research, and programmingat old woman creek national estuarine research reserve.

(A) Formulate policies and plans for the acquisition, use,management, and protection of nature preserves;

(D) Prepare and maintain surveys and inventories ofnatural areas and habitats of rare and endangered species ofplants and animals;

(E) Adopt rules for the use, visitation, and protection ofnature preserves, "natural areas owned or managed througheasement, license, or lease by the department and administered bythe division," and lands owned "or managed through easement,license, or lease" by the department and administered by thedivision ~~which~~ that are within or adjacent to any wild, scenic, orrecreational river area, in accordance with Chapter 119. of theRevised Code;

(F) Provide facilities and improvements within the statesystem of nature preserves that are necessary for theirvisitation, use, restoration, and protection and do not impairtheir natural character;

(G) Provide interpretive programs and publish anddisseminate information pertaining to nature preserves andnatural areas for their visitation and use;

(H) Conduct and grant permits to qualified persons for theconduct of scientific research and investigations within naturepreserves;

(J) Publish and submit to the governor and the generalassembly a biennial report of the status and condition of eachnature preserve, activities conducted within each preserve, andplans and recommendations for natural area preservation.

Sec. 1521.062. (A) All dams, dikes, and leveesconstructed in this state and not exempted by this section or bythe chief of the division of water under section 1521.06 of theRevised Code shall be inspected periodically by the chief to, except for classes of dams that, in accordance with rules adopted under this section, are required to be inspected by registered professional engineers who have been approved for that purpose by the chief. The inspection shallensure that continued operation and use of the dam, dike, orlevee does not constitute a hazard to life, health, or property.Periodic inspections shall not be required of the followingstructures:

(1) A dam that is less than ten feet in height and has astorage capacity of not more than fifty acre-feet at theelevation of the top of the dam, as determined by the chief. Forthe purposes of this section, the height of a dam shall bemeasured from the natural stream bed or lowest ground elevationat the downstream or outside limit of the dam to the elevation ofthe top of the dam.

(2) A dam, regardless of height, that has a storagecapacity of not more than fifteen acre-feet at the elevation ofthe top of the dam, as determined by the chief;

(3) A dam, regardless of storage capacity, that is sixfeet or less in height, as determined by the chief;

(5) A dam, dike, or levee that has been exempted inaccordance with rules adopted under section 1521.064 of theRevised Code.

(B) In accordance with rules adopted under this section, the owner of a dam that is in a class of dams that is designated in the rules for inspection by registered professional engineers shall obtain the services of a registered professional engineer who has been approved by the chief to conduct the periodic inspection of dams pursuant to schedules and other standards and procedures established in the rules. The registered professional engineer shall prepare a report of the inspection in accordance with the rules and provide the inspection report to the dam owner who shall submit it to the chief. A dam that is designated under the rules for inspection by a registered professional engineer but that is not inspected within a five-year period may be inspected by the chief at the owner's expense.

(C) Intervals between periodic inspections shall bedetermined by the chief, but shall not exceed five years. ~~Thechief may use inspection reports prepared for the owner of thedam, dike, or levee by a registered professional engineer.~~

~~(C) The owner~~ (D) In the case of a dam, dike, or levee that the chief inspects, the chief shall ~~be furnished~~ furnish a report of ~~each~~ theinspection ~~and~~ to the owner of the dam, dike, or levee. With regard to a dam, dike, or levee that has been inspected, either by the chief or by a registered professional engineer, and that is the subject of an inspection report prepared or received by the chief, the chief shall ~~be informed of~~ inform the owner of any required repairs,maintenance, investigations, and other remedial and operationalmeasures ~~by the chief~~. The chief shall order the owner toperform such repairs, maintenance, investigations, or otherremedial or operational measures as he the chief considersnecessary tosafeguard life, health, or property. The order shall permit theowner a reasonable time in which to perform the needed repairs,maintenance, investigations, or other remedial measures, and thecost thereof shall be borne by the owner. All orders of thechief are subject to appeal as provided in Chapter 119. of theRevised Code. The attorney general, upon written request of thechief, may bring an action for an injunction against any personwho violates this section or to enforce an order of the chiefmade pursuant to this section.

~~(D)~~(E) The owner of a dam, dike, or levee shall monitor,maintain, and operate the structure and its appurtenances safelyin accordance with state rules, terms and conditions of permits,orders, and other requirements issued pursuant to this section orsection 1521.06 of the Revised Code. The owner shall fully andpromptly notify the division of water and other responsibleauthorities of any condition ~~which~~ that threatens the safety of thestructure and shall take all necessary actions to safeguard life,health, and property.

~~(E)~~(F) Before commencing the repair, improvement, alteration,or removal of a dam, dike, or levee, the owner shall file anapplication including plans, specifications, and other requiredinformation with the division and shall secure written approvalof the application by the chief. Emergency actions by the ownerrequired to safeguard life, health, or property are exempt fromthis requirement. The chief may, by rule, define maintenance,repairs, or other remedial measures of a routine nature ~~which~~ that areexempt from this requirement.

~~(F)~~(G) The chief may remove or correct, at the expense of theowner, any unsafe structures found to be constructed ormaintained in violation of this section or section 1521.06 of theRevised Code. In the case of an owner other than a governmentalagency, the cost of removal or correction of any unsafestructure, together with a description of the property on whichthe unsafe structure is located, shall be certified by the chiefto the county auditor and placed by the county auditor upon thetax duplicate. This cost is a lien upon the lands from the dateof entry and shall be collected as other taxes and returned tothe division. In the case of an owner that is a governmentalagency, the cost of removal or correction of any unsafe structureshall be recoverable from the owner by appropriate action in acourt of competent jurisdiction.

~~(G)~~(H) If the condition of any dam, dike, or levee is found,in the judgment of the chief, to be so dangerous to the safety oflife, health, or property as not to permit time for the issuanceand enforcement of an order relative to repair, maintenance, oroperation, the chief shall employ any of the following remedialmeans necessary to protect life, health, and property:

(3) Take such other measures or actions as he the chiefconsidersnecessary to safeguard life, health, and property.

The chief shall continue in full charge and control of the dam,dike, or levee until the structure is rendered safe. The cost ofthe remedy shall be recoverable from the owner of the structureby appropriate action in a court of competent jurisdiction.

~~(H)~~(I) The chief may accept and expend gifts, bequests, andgrants from the United States government or from any other publicor private source and may contract with the United Statesgovernment or any other agency or entity for the purpose ofcarrying out the dam safety functions set forth in this sectionand section 1521.06 of the Revised Code.

(J) In accordance with Chapter 119. of the Revised Code, the chief shall adopt, and may amend or rescind, rules that do all of the following:

(1) Designate classes of dams for which dam owners must obtain the services of a registered professional engineer to periodically inspect the dams and to prepare reports of the inspections for submittal to the chief;

(2) Establish standards in accordance with which the chief must approve or disapprove registered professional engineers to inspect dams together with procedures governing the approval process;

(3) Establish schedules, standards, and procedures governing periodic inspections and standards and procedures governing the preparation and submittal of inspection reports;

(4) Establish provisions regarding the enforcement of this section and rules adopted under it.

Sec. 1531.27. The chief of the division of wildlife shall payto the treasurers of the several counties wherein lands owned bythe state and administered by the division are ~~situate~~ located an annualamount determined in the following manner: in each such countyone per cent of the total value of such lands exclusive ofimprovements, as shown on the auditor's records of taxable valueof real property existing at the time when the state acquired thetract or tracts comprising ~~such~~ the lands.

~~Such~~ The payments shall be made from funds accruing to thedivision ~~of wildlife~~ from the sale of hunting or fishing licensesand ~~federal wildlife restoration funds, and the~~ from fines, penalties, and forfeitures deposited into the state treasury to the credit of the wildlife fund created in section 1531.17 of the Revised Code. The allocation ofamounts to be paid from ~~such~~ those sources shall be determined by thedirector of natural resources.

~~Such~~ The payments to the treasurers of the several countiesshall be credited to the fund for school purposes within theschool districts wherein ~~such~~ the lands are ~~situate~~ located.

Sec. 1533.10. Except as provided in this section ordivision (A)(2) of section 1533.12 of the Revised Code, no personshall hunt any wild bird or wild quadruped without a huntinglicense. Each day that any person hunts within the state withoutprocuring such a license constitutes a separate offense. Except as otherwise provided in this section, everyapplicant for a hunting license who is a resident of the stateand ~~sixteen~~ eighteen years of age or more shallprocure a resident hunting license,the fee for which shall be eighteen dollars, unless the rulesadopted under division (B) of section 1533.12 of the Revised Codeprovide for issuance of a resident hunting license to theapplicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior hunting license, the fee for which shall be one-half of the regular hunting license fee. Every applicant who is under the age of ~~sixteen~~ eighteen years shall procure aspecial youth hunting license, the fee for which shall beone-half of the regular hunting license fee. The owner of lands in thestate and theowner's children of anyage and grandchildren under eighteen years of age may hunton the landswithout a hunting license. The tenant and children ofthe tenant, residing on lands in the state, may hunton them without a hunting license. ~~Every~~ Except as otherwise provided in division (A)(1) of section 1533.12 of the Revised Code, every applicant fora huntinglicense who is a nonresident of the state and who is ~~sixteen~~ eighteen years of age or older shall procure anonresident hunting license, the fee for which shall be one hundred twenty-four dollars, unless the applicant is a resident of a state that is aparty to an agreement under section 1533.91 of the Revised Code,in which case the fee shall be eighteen dollars.

The chief of the division of wildlife may issue a small game hunting license expiring three days from the effectivedate of the license to a nonresident of the state, the fee forwhich shall be thirty-nine dollars. No person shall take orpossess deer, wild turkeys, fur-bearing animals, ducks, geese, brant,or any nongame animal whilepossessing only a small game hunting license. A small game hunting license does not authorize the taking or possessing ofducks, geese, or brant without having obtained, in addition tothe small game hunting license, a wetlands habitatstamp as provided in section 1533.112 of the Revised Code. A small game hunting license does not authorize the takingor possessing of deer, wild turkeys, or fur-bearing animals. Anonresident of the state who wishes to take or possess deer,wild turkeys, or fur-bearing animals in this state shallprocure, respectively, a special deer or wild turkey permit asprovided in section 1533.11 of the Revised Code or a furtaker permit as provided in section 1533.111 of the RevisedCode in addition to a nonresident hunting license or a special youth hunting license, as applicable, as provided in thissection.

No person shall procure or attempt to procure a huntinglicense by fraud, deceit, misrepresentation, or any falsestatement.

This section does not authorize the taking and possessingof deer or wild turkeys without first having obtained, inaddition to the hunting license required by this section, aspecial deer or wild turkey permit as provided in section 1533.11of the Revised Code or the taking and possessing of ducks, geese,or brant without first having obtained, in addition to thehunting license required by this section, a wetlands habitatstamp as provided in section 1533.112 of the Revised Code.

This section does not authorize the hunting or trapping offur-bearing animals without first having obtained, in addition toa hunting license required by this section, a fur taker permit asprovided in section 1533.111 of the Revised Code.

No hunting license shall be issued unless it is accompanied by a writtenexplanation of the law in section 1533.17of the Revised Code and the penalty for itsviolation, including a description of terms of imprisonment and fines that maybe imposed.

No hunting license shall be issued unless the applicantpresents to the agent authorized to issue the license apreviously held hunting license or evidence of having held such alicense in content and manner approved by the chief, acertificate of completion issued upon completion of a huntereducation and conservation course approved by the chief, orevidence of equivalent training in content and manner approved bythe chief.

No person shall issue a hunting license to any person whofails to present the evidence required by this section. Noperson shall purchase or obtain a hunting license withoutpresenting to the issuing agent the evidence required by thissection. Issuance of a hunting license in violation of therequirements of this section is an offense by both the purchaserof the illegally obtained hunting license and the clerk or agentwho issued the hunting license. Any hunting license issued inviolation of this section is void.

The chief, with approval of the wildlife council, shalladopt rules prescribing a hunter education and conservationcourse for first-time hunting license buyers and for volunteerinstructors. The course shall consist of subjects including, butnot limited to, hunter safety and health, use of huntingimplements, hunting tradition and ethics, the hunter andconservation, the law in section 1533.17of the Revised Code along with the penalty foritsviolation, including a description of terms of imprisonment and fines that maybe imposed, and other law relating to hunting. Authorizedpersonnel of the division or volunteer instructors approved bythe chief shall conduct such courses with such frequency and atsuch locations throughout the state as to reasonably meet theneeds of license applicants. The chief shall issue a certificateof completion to each person who successfully completes thecourse and passes an examination prescribed by the chief.

Sec. 1533.11. (A) Except as provided in this section, noperson shall hunt deer on lands of another without firstobtaining an annual special deer permit. Except as provided inthis section, no person shall hunt wild turkeys on lands ofanother without first obtaining an annual special wild turkeypermit. Each applicant for a special deer or wild turkey permitshall pay an annual fee of twenty-three dollars for each permit unless the rules adopted under division (B)of section 1533.12 of the Revised Code provide for issuance of adeer or wild turkey permit to the applicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior deer or wild turkey permit, the fee for which shall be one-half of the regular special deer or wild turkey permit fee. Each applicant who is under the age of ~~sixteen~~ eighteen years shall procure a special youth deer or wild turkey permit, the fee for which shall be one-half of the regular special deer or wild turkey permit fee.Except as provided in division (A)(2) of section 1533.12 of theRevised Code, a deer or wild turkey permit shall run concurrentlywith the hunting license. The money received shall be paid into the statetreasury to the credit of the wildlife fund, created in section1531.17 of the Revised Code, exclusively for the use of thedivision of wildlife in the acquisition and development of landfor deer or wild turkey management, for investigating deer orwild turkey problems, and for the stocking, management, andprotection of deer or wild turkey. Every person, while huntingdeer or wild turkey on lands of another, shall carry theperson's special deer or wild turkey permit and exhibit itto any enforcement officer so requesting. Failure to so carry andexhibit such a permit constitutes an offense under this section.The chief of the division of wildlife shall adopt any additionalrules the chief considers necessary to carry out this sectionand section 1533.10 of the Revised Code.

The owner and the children of the owner of lands in thisstate may hunt deer or wild turkey thereon without a special deeror wild turkey permit. The tenant and children of thetenant may hunt deer or wild turkey on lands wherethey reside without a special deer or wild turkey permit.

(B) A special deer or wild turkey permit is nottransferable. No person shall carry a special deer or wildturkey permit issued in the name of another person.

(C) The wildlife refunds fund is hereby created in thestate treasury. The fund shall consist of money received fromapplication fees for special deer permits that are not issued.Money in the fund shall be used to make refunds of suchapplication fees.

Sec. 1533.111. Except as provided in this section ordivision (A)(2) of section 1533.12 of the Revised Code, no personshall hunt or trap fur-bearing animals on land of another withoutfirst obtaining an annual fur taker permit. Each applicant for afur taker permit shall pay an annual fee of fourteen dollars forthe permit, except as otherwise provided in this section orunless the rules adopted under division (B) of section 1533.12 ofthe Revised Code provide for issuance of a fur taker permit tothe applicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior fur taker permit, the fee for which shall be one-half of the regular fur taker permit fee. Each applicant ~~who is a residentof the state and~~ under the age of ~~sixteen~~ eighteen years shall procure aspecial youth fur taker permit, the fee for which shall beone-half of the regular fur taker permit fee. The fur taker permit shall run concurrently withthe hunting license. The money received shall be paid into thestate treasury to the credit of the fund established in section1533.15 of the Revised Code.

No fur taker permit shall be issued unless it is accompanied by a writtenexplanation of the law in section 1533.17of the Revised Code and the penalty for itsviolation, including a description of terms of imprisonment and fines that maybe imposed.

No fur taker permit shall be issued unless the applicantpresents to the agent authorized to issue a fur taker permit apreviously held hunting license or trapping or fur taker permitor evidence of having held such a license or permit in content andmanner approved by the chief of the division of wildlife, acertificate of completion issued upon completion of a trappereducation course approved by the chief, or evidence of equivalenttraining in content and manner approved by the chief.

No person shall issue a fur taker permit to any person whofails to present the evidence required by this section. Noperson shall purchase or obtain a fur taker permit withoutpresenting to the issuing agent the evidence required by thissection. Issuance of a fur taker permit in violation of therequirements of this section is an offense by both the purchaserof the illegally obtained permit and the clerk or agent whoissued the permit. Any fur taker permit issued in violation ofthis section is void.

The chief, with approval of the wildlife council, shalladopt rules prescribing a trapper education course for first-timefur taker permit buyers and for volunteer instructors. Thecourse shall consist of subjects that include, but are notlimited to, trapping techniques, animal habits andidentification, trapping tradition and ethics, the trapper andconservation, the law in section 1533.17of the Revised Code along with the penalty forits violation, including a description of terms of imprisonment and fines thatmay be imposed, and other law relating totrapping. Authorizedpersonnel of the division of wildlife or volunteer instructorsapproved by the chief shall conduct the courses with suchfrequency and at such locations throughout the state as toreasonably meet the needs of permit applicants. The chief shallissue a certificate of completion to each person who successfullycompletes the course and passes an examination prescribed by thechief.

Every person, while hunting or trapping fur-bearinganimals on lands of another, shall carry the person's furtaker permit ~~affixed to the person's hunting license~~ withthe person's signature written ~~acrossthe face of~~ on the permit. Failure to carry such a signed permitconstitutes an offense under this section. The chief shall adopt anyadditional rules the chief considers necessary to carryout this section.

The owner and the children of the owner of lands in thisstate may hunt or trap fur-bearing animals thereon without a furtaker permit. The tenant and children of the tenant may hunt or trap fur-bearing animals on landswhere they reside without a fur taker permit.

A fur taker permit is not transferable. No person shallcarry a fur taker permit issued in the name of another person.

A fur taker permit entitles a nonresident to takefrom this state fur-bearing animals taken and possessed by thenonresident as provided by law or division rule.

Sec. 1533.112. Except as provided in thissection or unless otherwise provided by division rule, noperson shall hunt ducks, geese, or brant on the lands of anotherwithout first obtaining an annual wetlands habitat stamp. Theannual fee for the wetlands habitat stamp shall be fourteen dollarsfor each stamp unless the rules adopted under division (B)of section 1533.12 provide for issuance of a wetlands habitatstamp to the applicant free of charge.

Moneys received from the stamp fee shall be paid into the state treasury to thecredit of the wetlands habitat fund, which is hereby established.Moneys shall be paid from the fund on the order of the directorof natural resources for the following purposes:

(A) Sixty per cent for projects that the division approvesfor the acquisition, development, management, or preservation ofwaterfowl areas within the state;

(B) Forty per cent for contribution by the division to anappropriate nonprofit organization for the acquisition,development, management, or preservation of lands and waterswithin the United States or Canada that provide or will provide habitat for waterfowlwith migration routes that cross this state.

No moneys derived from the issuance of wetlands habitatstamps shall be spent for purposes other than those specified bythis section. All investment earnings of the fund shall becredited to the fund.

Wetlands habitat stamps shall be furnished by and in a form prescribedby the chief ofthe division of wildlife and issued by clerks and other agentsauthorized to issue licenses and permits under section 1533.13 ofthe Revised Code. The record of stamps kept by the clerks andother agents shall be uniform throughout the state, in such formor manner as the director prescribes, and open at all reasonablehours to the inspection of any person. Unless otherwiseprovided by rule, each stampshall remainin force until midnight of the thirty-first day of August nextensuing. Wetlands habitat stamps may be issued in any manner toany person on any date, whether or not that date is within theperiod in which they are effective.

Every person to whom this section applies, while huntingducks, geese, or brant, shall carry an unexpired wetlands habitatstamp that is validated by the person's signature written onthe stamp inink and shall exhibit the stamp to any enforcement officer sorequesting. No person shall fail to carry and exhibit theperson's stamp.

The chief shall establish a procedure to obtain subjectmatter to be printed on the wetlands habitat stamp and shall use,dispose of, or distribute the subject matter as the chiefconsidersnecessary. The chief also shall adoptrules necessary toadminister this section.

This section does not apply to persons under sixteen yearsof age nor to persons exempted from procuring a hunting licenseunder section 1533.10 or division (A)(2) of section 1533.12 of theRevised Code.

Sec. 1533.12. (A)(1) Except as otherwise provided in division (A)(2) of this section, every person on active duty in the armed forces of the United States who is stationed in this state and who wishes to engage in an activity for which a license, permit, or stamp is required under this chapter first shall obtain the requisite license, permit, or stamp. Such a person is eligible to obtain a resident hunting or fishing license regardless of whether the person qualifies as a resident of this state. To obtain a resident hunting or fishing license, the person shall present a card or other evidence identifying the person as being on active duty in the armed forces of the United States and as being stationed in this state.

(2) Every person on active duty in thearmed forces of the United States, while on leave or furlough,may take or catch fish of the kind lawfully permitted to be takenor caught within the state, may hunt any wild bird or wildquadruped lawfully permitted to be hunted within the state, andmay trap fur-bearing animals lawfully permitted to be trappedwithin the state, without procuring a fishing license, a huntinglicense, a fur taker permit, or a wetlands habitat stamp requiredby this chapter, provided that the person shall carry on the person whenfishing, hunting, or trapping, a card or otherevidence identifying the person asbeing on active duty in the armedforces of the United States, and provided that the person is nototherwise violating any of the hunting, fishing, and trappinglaws of this state.

In order to hunt deer or wild turkey, any such person shallobtain a special deer or wild turkey permit, as applicable, undersection 1533.11 of the Revised Code. However, the person neednot obtain a hunting license in order to obtain such a permit.

(B) The chief of the division of wildlife shall provide byrule adopted under section 1531.10 of the Revised Code all ofthe following:

(1) Every resident of this state with a disability thathas been determined by the veterans administration to bepermanently and totally disabling, who receives a pension orcompensation from the veterans administration, and who receivedan honorable discharge from the armed forces of the UnitedStates, and every veteran to whom the registrar of motor vehicleshas issued a set of license plates under section 4503.41 of theRevised Code, shall be issued an annual fishing license, huntinglicense, fur taker permit, deer or wild turkey permit, orwetlands habitat stamp, or any combination of those licenses,permits, and stamp, free of charge when application is made tothe chief in the manner prescribed by and on forms provided bythe chief.

(2) Every resident of the state who was born on or before December 31, 1937, shall be issued an annual fishing license, huntinglicense, fur taker permit, deer or wild turkey permit, orwetlands habitat stamp, or any combination of those licenses,permits, and stamp, free of charge when application is made tothe chief in the manner prescribed by and on forms provided bythe chief.

(3) Every resident of state or county institutions,charitable institutions, and military homes in this state shallbe issued an annual fishing license free of charge whenapplication is made to the chief in the manner prescribed by andon forms provided by the chief.

(4) Any mobility impaired or blind person, as defined insection 955.011 of the Revised Code, who is a resident of this state and who isunable to engage in fishing without the assistance of anotherperson shall be issued an annualfishing license free of charge when application is made to thechief in the manner prescribed by and on forms provided by thechief. The person who is assisting the mobilityimpaired or blind person mayassist in taking or catching fish of the kind permitted to betaken or caught without procuring the license required undersection 1533.32 of the Revised Code, provided that only one lineis used by both persons.

(5) As used in division (B)(5) of this section,"prisoner of war" means any regularly appointed, enrolled, enlisted, orinducted member of the military forces of the United States who was captured,separated, and incarcerated by an enemy of the United States.

Any person who has been a prisoner of war, was honorablydischarged from the military forces, and is a resident of thisstate shall be issued an annual fishing license, hunting license,fur taker permit, or wetlands habitat stamp, or any combinationof those licenses, permits, and stamp, free of charge whenapplication is made to the chief in the manner prescribed by andon forms provided by the chief.

(C) The chief shall adopt rules pursuant to section1531.08 of the Revised Code designating not more than two days,which need not be consecutive, in each year as "free sportfishing days" on which any resident may exercise the privilegesaccorded the holder of a fishing license issued under section1533.32 of the Revised Code without procuring such a license,provided that the person is not otherwise violating any of thefishing laws of this state.

Sec. 1533.32. Except as provided in this section ordivision (A)(2) or (C) of section 1533.12 of the Revised Code, noperson, including nonresidents, shall take or catch any fish byangling in any of the waters in the state or engage in fishing inthose waters without a license. No person shall take or catchfrogs or turtles without a validfishing license, except as provided in this section. Personsfishing in privately owned ponds, lakes, or reservoirs to or fromwhich fish are not accustomed to migrate are exempt from thelicense requirements set forth in this section. Persons fishingin privately owned ponds, lakes, or reservoirs that are open topublic fishing through an agreement or lease with the division ofwildlife shall comply with the license requirements set forth inthis section.

The fee for an annual license shall be thirty-nine dollars for aresident of astate that is not a party to an agreement under section 1533.91of the Revised Code. The fee for an annual license shall be eighteen dollars for aresident of a state that is a party to such an agreement. Thefee for an annual license for residents of this state shall be eighteen dollars unless the rules adopted under division (B) of section 1533.12 of theRevised Code provide for issuance of a resident fishing licenseto the applicant free of charge. Except as provided in rules adopted under division (B)(2) of that section, each applicant who is a resident of this state and who at the time of application is sixty-six years of age or older shall procure a special senior fishing license, the fee for which shall be one-half of the annual resident fishing license fee.

Any person under the age ofsixteen years may take or catch frogs and turtles and take or catch fish byangling without alicense.

The chief of the division ofwildlife may issue a tourist's license expiring three days fromthe effective date of the license to a resident of a state thatis not a party to an agreement under section 1533.91 of theRevised Code. The fee for atourist's license shall be eighteen dollars.

The chief shall adopt rules under section 1531.10 of theRevised Codeproviding for the issuance of a one-day fishing license to a resident of thisstate or of any other state. The fee for such a license shall be fifty-five percent of the amount established under this section for a tourist's license,rounded up to the nearest whole dollar. A one-day fishing licenseshall allow the holder totake or catch fish by angling in the waters in the state, engage in fishing inthose waters, or take or catch frogs or turtlesin those waters for one day without obtaining an annual license or a tourist'slicense under this section. At the request of a holder of a one-day fishing licensewho wishes to obtain an annual license, a clerk or agentauthorized to issue licenses under section 1533.13 of theRevisedCode, not later than the lastday on which the one-day license would be valid if it were anannual license, shall credit the amount of the fee paid for theone-day license toward the fee charged for the annual license if so authorizedby the chief. The clerk or agent shall issue the annual license uponpresentation of the one-day license and payment of a fee in anamount equal to the difference between the fee for the annuallicense and the fee for the one-day license.

Unless otherwise provided by division rule, each annual license shallbegin on the first day of March of thecurrent year and expire on the last day of February of thefollowing year.

No person shall alter a fishing license or possess afishing license that has been altered.

No person shall procure or attempt to procure a fishinglicense by fraud, deceit, misrepresentation, or any falsestatement.

Owners of land over, through, upon, or along which anywater flows or stands, except where the land is in or borders onstate parks or state-owned lakes, together with the members ofthe immediate families of such owners, may take frogs andturtles and may take or catchfish of the kind permitted to be taken or caught therefromwithout procuring a license provided for in this section. Thisexemption extends to tenants actually residing upon such landsand to the members of the immediate families of the tenants. Residents of state or county institutions, charitableinstitutions, and military homes in this state may take frogs andturtles without procuring therequired license, provided that a member of the institution orhome has an identification card, which shall be carried onthatperson when fishing.

Every fisher required to be licensed, whilefishingor taking or attempting to take frogs or turtles, shall carrythe license and exhibit it toanyperson. Failure to so carry and exhibit the licenseconstitutesan offense under this section.

Sec. 1541.03. All lands and waters dedicated and set apartfor state park purposes shall be under the control and managementof the division of parks and recreation, which shall protect,maintain, and keep them in repair. The division shall have thefollowing powers over all such lands and waters:

(B) To construct and maintain dikes, wharves, landings,docks, dams, and other works;

(C) To construct and maintain roads and drives in,around, upon, and to the lands and watersto make them conveniently accessible and useful to the public;

(D) To Except as otherwise provided in this section, to adopt, amend, and rescind,in accordance with Chapter119. of the Revised Code, rules necessary for the proper managementof state parks, bodies of water, and the lands adjacent tothem under its jurisdiction and control, including the following:

(2) Establishing fees and charges for ~~admission to stateparks and for~~ use of facilities in ~~them~~ state parks;

(4) Governing the application for and rental of,rental fees for, and the use of cabins;

(5) Relating to public use of state park lands, andgoverning the operation of motor vehicles, including speeds, andparking on those lands;

(6) Governing all advertising withinstate parks and the requirements for the operation of places sellingtangible personal property and control of food service sales onlands and waters under the control of the division, which rulesshall establish uniform requirements;

(7) Providing uniform standards relating to the size, type,location, construction, and maintenance of structures and devicesused for fishing or moorage of watercraft, rowboats, sailboats,and powercraft, as those terms are defined in section 1547.01 ofthe Revised Code, over waters under the control of the divisionand establishing reasonable fees for the construction of and annualuse permits for those structures and devices;

(9) Governing the removal and disposition of any watercraft,rowboat, sailboat, or powercraft, as those terms are defined insection 1547.01 of the Revised Code, left unattended for morethan seven days on any lands or waters under the control of thedivision;

(10) Governing the establishment and collection of check collectioncharges for checks that are returned to the division or dishonored for anyreason.

The division shall adopt rules under this section establishing a discount program for all persons who are issued a golden buckeye card under section 173.06 of the Revised Code. The discount program shall provide a discount for all park services and rentals, but shall not provide a discount for the purchase of merchandise.

The division shall not adopt rules establishing fees or charges for parking a motor vehicle in a state park or for admission to a state park.

Every resident of this state with a disability that hasbeen determined by the veterans administration to be permanentlyand totally disabling, who receives a pension or compensationfrom the veterans administration, and who received an honorabledischarge from the armed forces of the United States, and everyveteran to whom the registrar of motor vehicles has issued a setof license plates under section 4503.41 of theRevised Code, shall be exempt from the fees for camping, provided thatthe resident or veteran carries in the state park such evidence ofthe resident's or veteran's disability as the chief of the division ofparks and recreation prescribes by rule.

~~Every~~ Unless otherwise provided by division rule, every resident of this state who is sixty-five years of ageor older or who is permanently and totally disabled and whofurnishes evidence of that age or disability in a mannerprescribed by division rule shall be charged one-half of theregular fee for camping, except on the weekends andholidays designated by the division~~. Such a person~~, andshallnot be charged more than ninety per cent of the regular charges forstate recreational facilities, equipment, services, and food serviceoperations utilized by the person at any time of year,whether maintained or operated by the state or leased for operation by anotherentity.

As used in this section, "food service operations" meansrestaurants that are owned by the department of naturalresources at Hocking Hills, Lake Hope, Malabar Farm, and RockyFork state parks or are part of a state park lodge. "Food service operations" does not include automaticvending machines, concession stands, or snack bars.

As used in this section, "prisoner of war" means anyregularly appointed, enrolled, enlisted, or inducted member ofthe military forces of the United States who was captured,separated, and incarcerated by an enemy of the United States.Any person who has been a prisoner of war, was honorablydischarged from the military forces, and is a resident of thisstate is exempt from the fees for camping. To claim thisexemption, the person shall present written evidence in the formof a record of separation, a letter from one of the militaryforces of the United States, or such other evidence as the chiefprescribes by rule that satisfies the eligibility criteriaestablished by this section.

Sec. 1547.721. As used in sections 1547.721 to 1547.726 of the Revised Code:

(A) "Eligible project" means a project that involves the acquisition, construction, establishment, reconstruction, rehabilitation, renovation, enlargement, improvement, equipping, furnishing, or development of either of the following:

(2) Refuge harbors and other projects for the harboring, mooring, docking, launching, and storing of light draft vessels.

(B) "Marine recreational facilities," "refuge harbors," "light draft vessels," and "allowable costs" have the meanings established in rules adopted under section 1547.723 of the Revised Code.

Sec. 1547.722. There is hereby created in the state treasury the watercraft revolving loan fund consisting of money appropriated or transferred to it, money received and credited to the fund under section 1547.726 of the Revised Code, and any grants, gifts, or contributions of moneys received for deposit to the credit of the fund.

The director of natural resources shall use money in the watercraft revolving loan fund for the purpose of making loans under section 1547.724 of the Revised Code for eligible projects and taking actions under sections 1547.721 to 1547.726 of the Revised Code necessary to fulfill that purpose. The director may establish separate accounts in the fund for particular projects or otherwise. Income from the investment of money in the fund shall be credited to the fund, and, if the director so requires, to particular accounts in the fund.

Sec. 1547.723. (A) The director of natural resources shall adopt rules under Chapter 119. of the Revised Code that the director determines to be necessary for the implementation of the revolving loan program. The rules shall include a definition of what constitutes "allowable costs" of an eligible project for purposes of the program together with a definition of "marine recreational facilities," "refuge harbors," and "light draft vessels," respectively.

(B) The director may delegate any of the director's duties or responsibilities under sections 1547.721 to 1547.726 of the Revised Code to the chief of the division of watercraft.

Sec. 1547.724. (A) With the approval of the controlling board, and subject to the other applicable provisions of sections 1547.721 to 1547.726 of the Revised Code, the director of natural resources may lend moneys in the watercraft revolving loan fund to public or private entities for the purpose of paying the allowable costs of an eligible project. Loans shall be made under this division only if the director determines that all of the following apply:

(2) The borrower is unable to finance the necessary allowable costs through ordinary financial channels upon comparable terms;

(3) The repayment of the loan will be adequately secured by a mortgage, lien, assignment, or pledge at a level of priority as the director may require;

(4) The amount of the loan does not exceed ninety per cent of the total cost of the project.

(B) The determinations of the director under division (A) of this section shall be conclusive for purposes of the validity of a loan commitment evidenced by a loan agreement signed by the director. Further, the director's determinations that a project constitutes an eligible project and that the costs of such a project are allowable costs, together with all other determinations relevant to the project or to an action taken or agreement entered into under sections 1547.721 to 1547.726 of the Revised Code shall be conclusive for purposes of the validity and enforceability of rights of parties arising from actions taken and agreements entered into under those sections.

(C) The director may take any actions necessary or appropriate with respect to a loan made under this section, including facilitating the collection of amounts due on a loan.

Sec. 1547.725. For purposes of the revolving loan program, the director of natural resources may do any of the following:

(A) Establish fees, charges, rates of interest, times of payment of interest and principal, and other terms, conditions, and provisions of and security for loans made from the watercraft revolving loan fund that the director determines to be appropriate and in furtherance of the purpose for which the loans are made;

(B) Retain the services of or employ financial consultants, appraisers, consulting engineers, superintendents, managers, construction and accounting experts, attorneys, and employees, agents, and independent contractors that the director determines to be necessary and fix the compensation for their services;

(C) Receive and accept from any person grants, gifts, contributions of money, property, labor, and other things of value to be held, used, and applied only for the purpose for which such grants, gifts, and contributions are made;

(D) Enter into appropriate agreements with other governmental entities to provide for all of the following:

(1) Payment of allowable costs related to the development of eligible projects for which loans have been made from the watercraft revolving loan fund;

(2) Any governmental action a governmental entity is authorized to take, including undertaking on behalf and at the request of the director any action that the director is authorized to undertake pursuant to sections 1547.721 to 1547.725 of the Revised Code;

All state agencies shall cooperate with and provide assistance to the director as is necessary for the administration of sections 1547.721 to 1547.726 of the Revised Code.

Sec. 1547.726. All money received by the state from the repayment of loans made from the watercraft revolving loan fund, including interest, fees, and charges associated with such loans, shall be deposited to the credit of the watercraft revolving loan fund.

Sec. 1548.06. (A)(1) Application for a certificate of title for awatercraft or outboard motor shall be made upon a form prescribedby the chief of the division of watercraftand shall be sworn tobefore a notary public or other officer empowered to administeroaths. The application shall be filed with the clerk ofanycourt of common pleas.An application for a certificate of titlemay be filedelectronically by any electronic means approved bythe chief inany county with the clerk of the court of commonpleas of thatcounty.The application shall be accompanied bythe feeprescribedinsection 1548.10 of the Revised Code. Thefee shall beretained by the clerk who issues the certificate oftitle andshall be distributed in accordance with that section.If a clerkof a court of common pleas, other than the clerk ofthe court ofcommon pleas of an applicant's county of residence,issues acertificate of title to the applicant, the clerk shalltransmitdata related to the transaction to theautomatedtitleprocessing system.

(2) If a certificate oftitle previously has been issued for thewatercraft or outboardmotor,the application for acertificateof title also shall be accompanied by the certificateof titledulyassigned unless otherwise provided in thischapter. If acertificate of title previously has not beenissued for thewatercraft or outboard motor in this state, theapplication,unless otherwise provided in this chapter, shall beaccompaniedbya manufacturer's or importer's certificate; by aswornstatementof ownership if the watercraft or outboard motorwaspurchased bythe applicant on or beforeOctober 9, 1963,or ifthe watercraftis less than fourteen feet long withapermanently affixedmechanical means of propulsion and waspurchased by the applicanton or beforeJanuary 1,2000;or bya certificate of title, billof sale, orother evidence ofownership required by the law ofanother statefrom which thewatercraft or outboard motor wasbrought intothis state.Evidence of ownership of a watercraft oroutboardmotor forwhich an Ohio certificate of title previouslyhas notbeenissued and which watercraft or outboard motor doesnot havepermanently affixedto it a manufacturer's serialnumbershallbe accompanied by the certificate of assignment of ahullidentification number assigned bythe chief as provided insection1548.07 of the Revised Code.

(3) The clerk shall retain the evidenceof title presented bytheapplicant and on which the certificateof title is issued,except that, if an application for a certificate of title isfiledelectronically, by a vendor on behalf of a purchaser of awatercraft or outboard motor, the clerk shall retain the completedelectronic record to which the vendor converted the certificate oftitle application and other required documents. The chief,after consultation with the attorney general, shall adopt rulesthat govern the location at which, and the manner in which, arestored the actual application and all other documents relating tothe sale of a watercraft or outboard motor when a vendor files theapplication for a certificate of title electronically on behalf ofa purchaser.

(B) Theclerk shall use reasonable diligence inascertainingwhetherthefacts in the application are trueby checking theapplication anddocuments accompanying itor the electronicrecord to which a vendor converted the application andaccompanying documents withthe records ofwatercraft andoutboard motors in the clerk'soffice. Iftheclerk is satisfiedthat theapplicant is the owner of thewatercraft oroutboardmotor andthat the application is in theproper form,the clerkshall issueaphysical certificate oftitle over theclerk'ssignature and sealed withthe clerk'ssealunless the applicantspecifically requests the clerk not toissue a physicalcertificate of title and instead to issue anelectroniccertificate of title. However, if the evidenceindicates and aninvestigationshows that one or more Ohiotitles already existforthe watercraft or outboard motor, thechief may cause theredundant title or titles to becanceled.

(C) In the case of the sale of a watercraft or outboard motorbya vendor to a general purchaser or user, the certificate oftitleshall be obtained in the name of the purchaser by thevendor uponapplication signed by the purchaser. In all othercases, thecertificate shall be obtained by the purchaser. Inall cases oftransfer of watercraft or outboard motors, theapplication forcertificate of title shall be filed within thirtydays after thelater of the date of purchase or assignment ofownership of thewatercraft or outboard motor. If theapplication for certificateof title is not filed within thirtydays after the later of thedate of purchase or assignment ofownership of the watercraft oroutboard motor, the clerk shallcharge a late penalty fee of fivedollars in addition to the feeprescribed by section 1548.10 ofthe Revised Code. The clerkshall retain the entire amount ofeach late penalty fee.

(D) The clerk shall refuse to accept an application forcertificate of title unless the applicant either tenders with theapplication payment of all taxes levied by or pursuant to Chapter5739. or 5741. of the Revised Codebased on the applicant's countyof residence less, in the case of a saleby a vendor, anydiscountto which the vendor is entitled undersection 5739.12of theRevised Code, or submits any of thefollowing:

~~(A)~~(1) A receipt issued by the tax commissioner or a clerk ofcourts showing payment of the tax;

~~(B)~~(2) A copy of the unit certificate of exemption completedbythe purchaser at the time of sale as provided in section5739.03of the Revised Code;

~~(C)~~(3) An exemption certificate, in a form prescribed by thetax commissioner, that specifies why the purchase is not subjectto the tax imposed by Chapter 5739. or 5741. of the Revised Code.

Payment of the tax shall be in accordance with rules issuedby the tax commissioner, and the clerk shall issue a receipt inthe form prescribed by the tax commissioner to any applicant whotenders payment of the tax with the application forthecertificateof title.

(E)(1) For receiving and disbursing the taxes paid to the clerkby aresident of the clerk's county,theclerk may retain a poundagefee of oneand one one-hundredth per cent of the taxescollected,which shall be paidinto thecertificate of title administrationfund created by section 325.33of the Revised Code.The clerkshall not retain a poundage feefrom payments of taxes by personswho do not reside in theclerk's county.

(2) A clerk, however, may retain from the taxes paid to theclerkan amount equal to the poundage fees associated withcertificatesof title issued by other clerks of courts of commonpleas toapplicants who reside in the first clerk's county. Thechief ofthe division of watercraft, in consultation with the taxcommissioner and the clerks of the courts of common pleas, shalldevelop a report from the automated title processing system thatinforms each clerk of the amount of the poundage fees that theclerk is permitted to retain from those taxes because ofcertificates of title issued by the clerks of other counties toapplicants who reside in the first clerk's county.

(F) In the case of casual sales of watercraft or outboardmotorsthat are subject to the tax imposed by Chapter 5739. or5741. ofthe Revised Code, the purchase price for the purpose ofdetermining the tax shall be the purchase price on an affidavitexecuted and filed with the clerk by the vendor on a form to beprescribed by the chief, whichshall be prima-facie evidence ofthe price for the determinationof the tax. In addition to theinformation required by section1548.08 of the Revised Code, eachcertificate of title shallcontain in bold lettering thefollowingnotification andstatements:"WARNING TO TRANSFERORANDTRANSFEREE(SELLER ANDBUYER). Youare required by law tostatethe trueselling price. A false statement is aviolationofsection2921.13 of the Revised Code and is punishable by sixmonthsimprisonment or a fine of up to one thousand dollars, orboth.Alltransfers are audited by the department of taxation.Thesellerand buyer must provide any information requested bythedepartmentoftaxation. The buyer may be assessed anyadditionaltax foundto be due."

The clerk shall forward all payments of taxes, lesspoundagefees, to the treasurer of state in a manner to beprescribed bythe tax commissioner and shall furnishinformation to thecommissioner as the commissioner may require. (G) Each county clerk of courts shall forward to the treasurer of state all sales and use tax collections resulting from sales of titled watercraft and outboard motors during a calendar week on or before the Friday following the close of that week. If, on any Friday, the offices of the clerk of courts or the state are not open for business, the tax shall be forwarded to the treasurer of state on or before the next day on which the offices are open. Every remittance of tax under this division shall be accompanied by a remittance report in such form as the tax commissioner prescribes. Upon receipt of a tax remittance and remittance report, the treasurer of state shall date stamp the report and forward it to the tax commissioner. If the tax due for any week is not remitted by a clerk of courts as required under this division, the clerk shall forfeit the poundage fees for the sales made during that week. The treasurer of state may require the clerks of courts to transmit tax collections and remittance reports electronically.

(H) For purposesof atransfer of a certificate of title, if the clerk is satisfied thatasecured party has discharged a lien but has not canceled thelien notationwitha clerk, the clerkmay cancelthe liennotation on theautomated title processingsystem and notify theclerk of the county oforigin.

(I) Every clerk shall have the capability to transact byelectronic means all procedures and transactions relating to theissuance of watercraft or outboard motor certificates of titlethat are described in the Revised Code as being accomplished byelectronic means.

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

(B) "Security" means any certificate or instrument, or any oral, written, or electronic agreement, understanding, or opportunity, thatrepresents title to or interest in, or is secured by any lien orcharge upon, the capital, assets, profits, property, or credit ofany person or of any public or governmental body, subdivision, oragency. It includes shares of stock, certificates for shares ofstock, an uncertificated security, membership interests in limited liability companies,voting-trust certificates, warrants and options to purchasesecurities, subscription rights, interim receipts, interimcertificates, promissory notes, all forms of commercial paper,evidences of indebtedness, bonds, debentures, land trustcertificates, fee certificates, leasehold certificates, syndicatecertificates, endowment certificates, interests in or under profit-sharing or participationagreements, interests in or under oil, gas, or mining leases, preorganization or reorganizationsubscriptions,preorganization certificates, reorganizationcertificates, interests in any trust orpretendedtrust, any investment contract, any life settlementinterest, anyinstrument evidencing a promise or an agreement topay money,warehouse receipts for intoxicating liquor, and the currency ofanygovernment other than those of the United States and Canada,butsections 1707.01 to 1707.45 of the Revised Code do not applytothe sale of real estate.

(C)(1) "Sale" has the full meaning of "sale" as applied byor accepted in courts of law or equity, and includes everydisposition, or attempt to dispose, of a security or of aninterest in a security. "Sale" also includes a contract to sell,an exchange, an attempt to sell, an option of sale, asolicitationof a sale, a solicitation of an offer to buy, asubscription, oran offer to sell, directly or indirectly, byagent, circular,pamphlet, advertisement, or otherwise.

(3) The use of advertisements, circulars, or pamphlets inconnection with the sale of securities in this state exclusivelyto the purchasers specified in division (D) of section 1707.03 ofthe Revised Code is not a sale when the advertisements,circulars,and pamphlets describing and offering those securitiesbear areadily legible legend in substance as follows: "Thisoffer ismade on behalf of dealers licensed under sections1707.01 to1707.45 of the Revised Code, and is confined in thisstateexclusively to institutional investors and licenseddealers."

(4) The offering of securities by any person inconjunctionwith a licensed dealer by use of advertisement,circular, orpamphlet is not a sale if that person does nototherwise attemptto sell securities in this state.

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

(6) "Sale" by an owner, pledgee, or mortgagee, or by aperson acting in a representative capacity, includes sale onbehalf of such party by an agent, including a licensed dealer orsalesperson.

(D) "Person," except as otherwise provided in thischapter,means a natural person, firm, partnership,limited partnership,partnership association, syndicate,joint-stock company,unincorporated association, trust or trusteeexcept where thetrust was created or the trustee designated bylaw or judicialauthority or by a will, and a corporation orlimited liabilitycompany organized under the laws of any state,any foreigngovernment, or any political subdivision of a stateor foreigngovernment.

(E)(1) "Dealer," except as otherwise provided in thischapter, means every person, other than a salesperson,who engagesor professes to engage, in this state, for either all or part ofthe person's time, directly or indirectly, either in the businessof the sale of securities for the person's own account, or in thebusinessof the purchase or sale of securities for the account ofothers in thereasonable expectation of receiving a commission,fee, or otherremuneration as a result of engaging in the purchaseand sale ofsecurities. "Dealer" does not mean any of thefollowing:

(a) Any issuer, including any officer, director, employee,or trustee of, or member or manager of, or partner in, or anygeneral partner of, anyissuer, that sells, offers for sale, ordoes any act infurtherance of the sale of a security thatrepresents an economicinterest in that issuer, provided nocommission, fee, or othersimilar remuneration is paid to orreceived by the issuer for thesale;

(b) Any licensed attorney, public accountant, or firm ofsuch attorneys or accountants, whose activities are incidental tothe practice of the attorney's, accountant's, or firm'sprofession;

(c) Any person that, for the account of others, engages inthe purchase or sale of securities that are issued andoutstandingbefore such purchase and sale, if a majority or moreof the equityinterest of an issuer is sold in that transaction,and if, in thecase of a corporation, the securities sold in thattransactionrepresent a majority or more of the voting power ofthecorporation in the election of directors;

(d) Any person that brings an issuer together with apotential investor and whose compensation is not directly orindirectly based on the sale of any securities by the issuer tothe investor;

(f) Any person that the division of securities by ruleexempts from the definition of "dealer" under division (E)(1) ofthis section.

(F)(1) "Salesman" or "salesperson" means every naturalperson,other than a dealer, who is employed, authorized, orappointed by a dealer tosell securities within this state.

(2) The general partners of a partnership, and theexecutiveofficers of a corporation or unincorporatedassociation, licensedas a dealer are not salespersonswithin the meaning of thisdefinition, nor are such clerical or otheremployees of an issueror dealer as are employed for work towhich the sale of securitiesis secondary and incidental; but thedivision of securities mayrequire a license from any suchpartner, executive officer, oremployee if it determines thatprotection of the publicnecessitates the licensing.

(G) "Issuer" means every person who has issued, proposestoissue, or issues any security.

(H) "Director" means each director or trustee of acorporation, each trustee of a trust, each general partner of apartnership, except a partnership association, each manager of apartnership association, and any person vested with managerial ordirectory power over an issuer not having a board of directors ortrustees.

(I) "Incorporator" means any incorporator of a corporationand any organizer of, or any person participating, other than inarepresentative or professional capacity, in the organization ofanunincorporated issuer.

(J) "Fraud," "fraudulent," "fraudulent acts," "fraudulentpractices," or"fraudulent transactions" means anything recognizedon or afterJuly 22, 1929, as such in courts of law or equity; anydevice,scheme, or artifice to defraud or to obtain money orproperty bymeans of any false pretense, representation, orpromise; anyfictitious or pretended purchase or sale ofsecurities; and anyact, practice, transaction, or course ofbusiness relating to thepurchase or sale of securities that isfraudulent or that has operatedorwould operate as a fraud uponthe seller or purchaser.

(K) Except as otherwise specifically provided, wheneveranyclassification or computation is based upon "par value," asapplied to securities without par value, the average of theaggregate consideration received or to be received by the issuerfor each class of those securities shall be used as the basis forthat classification or computation.

(L)(1) "Intangible property" means patents, copyrights,secret processes, formulas, services, good will, promotion andorganization fees and expenses, trademarks, trade brands, tradenames, licenses, franchises, any other assets treated asintangible according to generally accepted accounting principles,and securities, accounts receivable, or contract rights having noreadily determinable value.

(2) "Tangible property" means all property other thanintangible property and includes securities, accounts receivable,and contract rights, when the securities, accounts receivable, orcontract rights have a readily determinable value.

(M) "Public utilities" means those utilities defined insections 4905.02, 4905.03, 4907.02, and 4907.03 of the RevisedCode; in the case of a foreign corporation, it means thoseutilities defined as public utilities by the laws of itsdomicile;and in the case of any other foreign issuer, it meansthoseutilities defined as public utilities by the laws of thesitus ofits principal place of business. The term alwaysincludesrailroads whether or not they are so defined as publicutilities.

(N) "State" means any state of the United States, anyterritory or possession of the United States, the District ofColumbia, and any province of Canada.

(O) "Bank" means any bank, trust company, savings and loanassociation, savings bank, or credit union that isincorporated ororganizedunder the laws of the United States, any state of theUnitedStates, Canada, or any province of Canada and that issubject toregulation or supervision by that country, state, orprovince.

(P) "Include," when used in a definition, does not excludeother things or persons otherwise within the meaning of the termdefined.

(Q)(1) "Registration by description" means that therequirements of section 1707.08 of the Revised Code have beencomplied with.

(2) "Registration by qualification" means that therequirements of sections 1707.09 and 1707.11 of the Revised Codehave been complied with.

(3) "Registration by coordination" means that there hasbeencompliance with section 1707.091 of the Revised Code.Reference inthis chapter to registration by qualification alsoshall be deemedto include registration by coordination unlessthe contextotherwise indicates.

(R) "Intoxicating liquor" includes all liquids andcompoundsthat contain more than three and two-tenths per cent ofalcohol byweight and are fit for use for beverage purposes.

(S) "Institutional investor" means any corporation, bank,insurance company, pension fund or pension fund trust, employees'profit-sharing fund or employees' profit-sharing trust, anyassociation engaged, as a substantial part of its business oroperations, in purchasing or holding securities, or any trust inrespect of which a bank is trustee or cotrustee. "Institutionalinvestor" does not include any business entity formed for theprimary purpose of evading sections 1707.01 to 1707.45 of theRevised Code.

(T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C.77a,"Securities Exchange Act of 1934," 48 Stat. 881,15 U.S.C. 78a,"Internal Revenue Code of1986," 100 Stat. 2085, 26 U.S.C. 1,"Investment AdvisersAct of 1940," 54 Stat. 847, 15 U.S.C. 80b,and"Investment Company Act of 1940," 54 Stat.789, 15 U.S.C. 80amean the federalstatutes of those names as amended before orafter March 18, 1999.

(U) "Securities and exchange commission" means thesecurities and exchange commission established by the SecuritiesExchange Act of 1934.

(V)(1) "Control bid" means the purchase of or offer topurchase any equity security of a subject company from a residentof this state if either of the following applies:

(a) After the purchase of that security, the offeror wouldbe directly or indirectly the beneficial owner of more than tenper cent of any class of the issued and outstanding equitysecurities of the issuer.

(b) The offeror is the subject company, there is a pendingcontrol bid by a person other than the issuer, and the number ofthe issued and outstanding shares of the subject company would bereduced by more than ten per cent.

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

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

(b) An offer to acquire any equity security solely inexchange for any other security, or the acquisition of any equitysecurity pursuant to an offer, for the sole account of theofferor, in good faith and not for the purpose of avoiding theprovisions of this chapter, and not involving any public offeringof the other security within the meaning of Section 4 of Title Iof the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2),as amended;

(c) Any other offer to acquire any equity security, or theacquisition of any equity security pursuant to an offer, for thesole account of the offeror, from not more than fifty persons, ingood faith and not for the purpose of avoiding the provisions ofthis chapter.

(W) "Offeror" means a person who makes, or in any wayparticipates or aids in making, a control bid and includespersonsacting jointly or in concert, or who intend to exercisejointly orin concert any voting rights attached to thesecurities for whichthe control bid is made and also includesany subject companymaking a control bid for its own securities.

(X)(1) "Investment adviser" means any personwho, forcompensation, engages in the business of advisingothers, eitherdirectly or through publications or writings, asto the value ofsecurities or as to the advisability of investingin, purchasing,or selling securities, or who, for compensationand as a part ofregular business, issues or promulgates analysesor reportsconcerning securities.

(a) Any attorney, accountant, engineer, or teacher, whoseperformance ofinvestment advisory services described in division(X)(1) of thissection is solely incidental to the practice of theattorney's,accountant's, engineer's, or teacher's profession;

(b) A publisher of any bona fidenewspaper, news magazine,or business or financial publication ofgeneral and regularcirculation;

(d) A bank holding company, as defined in the "BankHoldingCompany Act of 1956," 70 Stat.133, 12 U.S.C. 1841, that is not aninvestmentcompany;

(f) Any licensed dealer or licensed salesperson whoseperformanceof investment advisory services described in division(X)(1) of thissection is solely incidental to the conduct of thedealer's or salesperson'sbusiness as a licensed dealer orlicensed salesperson and who receives nospecial compensation forthe services;

(g) Any person, the advice, analyses, or reports of which donotrelate to securities other than securities that are directobligations of, orobligations guaranteed as to principal orinterest by, the UnitedStates, or securities issued or guaranteedby corporations in whichthe United States has a direct orindirect interest, andthat have been designated by the secretaryof the treasury as exemptsecurities as defined in the "SecuritiesExchangeAct of 1934," 48 Stat. 881, 15 U.S.C. 78c;

(h) Any person that is excluded from the definition ofinvestment adviser pursuant to section202(a)(11)(A) to (E) of the"Investment Advisers Act of 1940," 15 U.S.C.80b-2(a)(11), or thathas received anorder from the securities and exchange commissionunder section202(a)(11)(F) of the "Investment Advisers Act of1940," 15 U.S.C.80b-2(a)(11)(F), declaring that the person is notwithin the intent of section202(a)(11) of the Investment AdvisersAct of 1940.

(i) A person who acts solely as a state retirement system investment officer or as a bureau of workers' compensation chief investment officer;

(j) Any other person that the division designates by rule,if thedivision finds that the designation is necessary orappropriate in the publicinterest or for the protection ofinvestors or clients and consistent with thepurposes fairlyintended by the policy and provisions of this chapter.

(a) Its principal place of business or its principalexecutive office is located in this state, or it owns or controlsassets located within this state that have a fair market value ofat least one million dollars.

(b) More than ten per cent of its beneficial or recordequity security holders are resident in this state, more than tenper cent of its equity securities are owned beneficially or ofrecord by residents in this state, or more than one thousand ofits beneficial or record equity security holders are resident inthis state.

(2) The division of securities may adopt rules toestablishmore specific application of the provisions set forthin division(Y)(1) of this section. Notwithstanding theprovisions set forthin division (Y)(1) of this section and anyrules adopted underthis division, the division, by rule or in anadjudicatoryproceeding, may make a determination that an issuerdoes notconstitute a "subject company" under division (Y)(1) ofthissection if appropriate review of control bids involving theissueris to be made by any regulatory authority of anotherjurisdiction.

(Z) "Beneficial owner" includes any person who directly orindirectly through any contract, arrangement, understanding, orrelationship has or shares, or otherwise has or shares, the powerto vote or direct the voting of a security or the power todisposeof, or direct the disposition of, the security. "Beneficialownership" includes the right, exercisable withinsixty days, toacquire any security through the exercise of anyoption, warrant,or right, the conversion of any convertiblesecurity, orotherwise. Any security subject to any such option,warrant,right, or conversion privilege held by any person shallbe deemedto be outstanding for the purpose of computing thepercentage ofoutstanding securities of the class owned by thatperson, butshall not be deemed to be outstanding for the purposeof computingthe percentage of the class owned by any otherperson. A personshall be deemed the beneficial owner of anysecurity beneficiallyowned by any relative or spouse or relativeof the spouse residingin the home of that person, any trust orestate in which thatperson owns ten per cent or more of thetotal beneficial interestor serves as trustee or executor, anycorporation or entity inwhich that person owns ten per cent ormore of the equity, and anyaffiliate or associate of thatperson.

(AA) "Offeree" means the beneficial or record owner of anysecurity that an offeror acquires or offers to acquire inconnection with a control bid.

(BB) "Equity security" means any share or similarsecurity,or any security convertible into any such security, orcarryingany warrant or right to subscribe to or purchase anysuchsecurity, or any such warrant or right, or any othersecuritythat, for the protection of security holders, is treatedas anequity security pursuant to rules of the division ofsecurities.

(CC)(1) "Investment adviser representative" means asupervisedperson of an investment adviser, provided thatthesupervisedperson has more than five clients who arenaturalpersons otherthan excepted persons defined in division(EE)ofthis section,and that more than ten per cent of thesupervisedperson's clientsare natural persons other than excepted personsdefined indivision(EE) of this section. "Investment adviserrepresentative" does not mean any of the following:

(a) A supervised person that does not on a regular basissolicit,meet with, or otherwise communicate with clients of theinvestment adviser;

(b) A supervised person that provides only investmentadvisoryservices described in division (X)(1) of this section bymeans ofwritten materials or oral statements that do not purportto meet theobjectives or needs of specific individuals oraccounts;

(c) Any other person that the division designatesby rule,if the division finds that the designation is necessaryorappropriate in the public interest or for the protection ofinvestors or clients and is consistent with the provisionsfairlyintended by the policy and provisions of thischapter.

(2) For the purpose of the calculation of clients indivision(CC)(1) of this section, anatural person and thefollowing persons are deemed a singleclient: Any minor child ofthe natural person; any relative,spouse, or relative of thespouse of the natural person who hasthe same principal residenceas the natural person; all accountsof which the natural person orthe persons referred to indivision(CC)(2) of thissectionarethe only primary beneficiaries; and all trusts ofwhich thenatural person or persons referred to in division(CC)(2) ofthissection are theonly primary beneficiaries. Persons who arenotresidents of theUnited Statesneed not be included in thecalculation of clientsunder division(CC)(1) of this section.

(3) If subsequent to March 18, 1999, amendments are enactedor adopted defining "investment adviser representative" forpurposes of theInvestmentAdvisers Act of 1940 or additionalrulesor regulations are promulgated by the securities andexchangecommission regarding the definition of "investmentadviserrepresentative" for purposes of theInvestment AdvisersAct of 1940, the division ofsecurities shall, by rule, adopt thesubstance of theamendments, rules, or regulations, unless thedivision findsthat the amendments, rules, or regulations are notnecessary forthe protection of investors or in the publicinterest.

(1) A partner, officer, or director of an investmentadviser, or otherperson occupying a similar status or performingsimilar functions with respectto an investment adviser;

(3) A person who provides investment advisory servicesdescribed indivision (X)(1) of this section on behalf of theinvestment adviserand is subject to the supervision and controlof the investment adviser.

(EE) "Excepted person" means a natural person to whomany ofthe following applies:

(1) Immediately after entering into the investment advisorycontract withthe investment adviser, the person has at leastseven hundred fifty thousanddollarsunder the management of theinvestment adviser.

(2) The investment adviser reasonably believes either of thefollowing atthe time the investment advisory contract is enteredinto with the person:

(a) The person has a networth, together with assets heldjointly with a spouse, of more than onemillion five hundredthousand dollars.

(b) The person is a qualified purchaser asdefined indivision (FF) of this section.

(3) Immediately prior to entering into an investmentadvisory contract with the investment adviser, the person iseither of the following:

(a) An executive officer, director,trustee, generalpartner, or person serving in a similarcapacity, of theinvestment adviser;

(b) An employee of the investmentadviser, other than anemployee performing solely clerical,secretarial, oradministrative functions or duties for theinvestment adviser,which employee, in connection with theemployee's regularfunctions or duties, participates in theinvestment activities ofthe investment adviser, provided that,for at least twelve months,the employee has been performingsuch nonclerical, nonsecretarial,or nonadministrative functionsor duties for or on behalf of theinvestment adviser orperforming substantially similar functionsor duties for or onbehalf of another company.

If subsequent to March 18, 1999,amendments are enacted oradopted defining "excepted person" forpurposes of the InvestmentAdvisers Act of 1940 or additional rulesor regulations arepromulgated by the securities and exchangecommission regardingthe definition of "excepted person" forpurposes of the InvestmentAdvisersAct of 1940, the division ofsecurities shall, by rule,adopt the substance of theamendments, rules, or regulations,unless the division findsthat the amendments, rules, orregulations are not necessary forthe protection of investors orin the public interest.

(a) A natural person who ownsnot less than five milliondollars in investments as defined byrule by the division ofsecurities;

(b) A natural person, acting forthe person's own account oraccounts of other qualifiedpurchasers, who in the aggregate ownsand invests on adiscretionary basis, not less than twenty-fivemillion dollarsin investments as defined by rule by the divisionofsecurities.

(2) If subsequent to March 18, 1999, amendments areenactedor adopted defining "qualified purchaser" for purposes of theInvestment Advisers Act of 1940 or additional rulesor regulationsare promulgated by the securities and exchangecommissionregarding the definition of "qualified purchaser" forpurposes ofthe Investment Advisers Act of 1940, the division ofsecuritiesshall, by rule, adopt the amendments, rules, orregulations,unless the division finds that the amendments,rules, orregulations are not necessary for the protection ofinvestors orin the public interest.

(GG)(1) "Purchase" has the full meaning of "purchase" asappliedby or accepted in courts of law or equity and includesevery acquisition of,or attempt to acquire, a security or aninterest in a security. "Purchase"also includes a contract topurchase, an exchange, an attempt to purchase, anoption topurchase, a solicitation of a purchase, asolicitation of an offerto sell, a subscription, or an offer to purchase,directly orindirectly, by agent, circular, pamphlet, advertisement, orotherwise.

(3) Any security given with, or as a bonus on account of,any purchase ofsecurities is conclusively presumed to constitutea part of the subject ofthat purchase.

(HH) "Life settlement interest" means the entireinterest orany fractional interest in an insurance policy orcertificate ofinsurance, or in an insurance benefit under such apolicy orcertificate,that is the subject of a life settlementcontract.

For purposes of this division, "life settlement contract"means anagreement for the purchase, sale, assignment, transfer,devise, orbequest of any portion of the death benefit orownership of any lifeinsurance policy or contract, in return forconsideration or any otherthing of value that is less than theexpected death benefit of thelife insurance policy or contract."Life settlement contract"includes a viatical settlement contractas defined in section3916.01 of the Revised Code, but does notinclude any of thefollowing:

(1) A loan by an insurer under the terms of a life insurancepolicy, including, but not limited to, a loan secured by the cashvalue ofthe policy;

(2) An agreement with a bank that takes an assignment of alifeinsurance policy as collateral for a loan;

(3) The provision of accelerated benefits as defined insection3915.21 of the Revised Code;

(5) An agreement by an individual to purchase an existinglifeinsurance policy or contract from the original owner of thepolicyor contract, if the individual does not enter into morethan onelife settlement contract per calendar year;

(6) The initial purchase of an insurance policy orcertificate ofinsurance from its owner by a viatical settlementprovider, as definedin section 3916.01 of the Revised Code, thatislicensed underChapter 3916. of the RevisedCode.

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

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

(KK) "Bureau of workers' compensation chief investment officer" means an individual employed by the bureau of workers' compensation as a chief investment officer in a position that is substantially equivalent to a chief investment officer.

Sec. 1707.164. (A) No person shall act as a bureau of workers' compensation chief investment officer unless the person is licensed as a bureau of workers' compensation chief investment officer by the division of securities.

(B) No bureau of workers' compensation chief investment officer shall act as a dealer, salesperson, investment advisor, or investment advisor representative.

Sec. 1707.165. (A) Application for a bureau of workers' compensation chief investment officer's license shall be made in accordance with this section by filing with the division of securities the information, materials, and forms specified in rules adopted by the division.

(B) The division may investigate any applicant for a license and may require any additional information as it considers necessary to determine the applicant's business repute and qualifications to act as a chief investment officer. If the application for a bureau of workers' compensation chief investment officer's license involves investigation outside of this state, the applicant may be required by the division to advance sufficient funds to pay any of the actual expenses of the investigation. The division shall furnish the applicant with an itemized statement of the expenses the applicant is required to pay.

(C) The division shall by rule require an applicant for a bureau of workers' compensation chief investment officer's license to pass an examination designated by the division or achieve a specified professional designation unless the applicant meets both of the following requirements:

(1) Acts as a bureau of workers' compensation chief investment officer on the effective date of this section;

(D) If the division finds that the applicant is of good business repute, appears to be qualified to act as a bureau of workers' compensation chief investment officer, and has complied with this chapter and rules adopted by the division under this chapter, the division, upon receipt of the fees prescribed by division (B) of section 1707.17 of the Revised Code, shall issue to the applicant a license authorizing the applicant to act as a bureau of workers' compensation chief investment officer.

Sec. 1707.17. (A)(1) The license of every dealer in andsalesperson of securities shall expire on the thirty-first day ofDecember of each year, and may be renewed upon the filing with thedivisionof securities of an application for renewal, and thepayment ofthe fee prescribed in this section. Thedivisionshallgive notice, without unreasonable delay, of itsaction onanyapplication for renewal of a dealer's orsalesperson's license.

(2) The license of every investment adviser andinvestmentadviser representative licensed under section1707.141 or 1707.161of the Revised Code shallexpire on the thirty-first day ofDecember of each year. The licenses may be renewed upon thefiling with the division ofan application for renewal, and thepayment of thefee prescribed in division (B) of this section.Thedivision shall give notice, without unreasonable delay, of itsaction on any application for renewal.

(3) An investment adviser required to make a notice filingunder division (B) of section 1707.141 of theRevised Codeannually shall file with the divisionthe notice filing and thefee prescribed in division (B)of this section, no later than thethirty-first day ofDecember of each year.

(4) The license of every state retirement system investment officer licensed under section 1707.163 of the Revised Code and the license of a bureau of workers' compensation chief investment officer issued under section 1707.165 of the Revised Code shall expire on the thirtieth day of June of each year. The licenses may be renewed on the filing with the division of an application for renewal, and the payment of the fee prescribed in division (B) of this section. The division shall give notice, without unreasonable delay, of its action on any application for renewal.

(B)(1) The fee for each dealer's license, and for eachannualrenewal thereof, shall be onehundred dollars.

(2) The fee for each salesperson's license,and for eachannualrenewal thereof, shall be fifty dollars.

(3) The fee for each investment adviser's license, andforeach annual renewal thereof, shall befifty dollars.

(4) The fee for each investment adviser notice filingrequiredby division (B) of section 1707.141 of the RevisedCodeshall befifty dollars.

(5) The fee for each investment adviser representative'slicense, and for each annual renewal thereof, shallbethirty-fivedollars.

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

(7) The fee for a bureau of workers' compensation chief investment officer's license, and for each annual renewal thereof, shall be fifty dollars.

(C) A dealer's, salesperson's, investment adviser's, investmentadviser representative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license may be issued at anytime forthe remainder of the calendar year. In that event, theannualfee shall not be reduced.

Sec. 1707.19. (A) An original license, or a renewalthereof,applied for by a dealer or salesperson of securities,orby an investment adviser, investment adviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officer,may berefused, and any such license granted may be suspended and,afternotice and hearing in accordance with Chapter 119. oftheRevised Code, maybe revoked, by the divisionof securities, ifthe division determines that theapplicant orthe licensed dealer,salesperson, investment adviser, investment adviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officer:

(4) Hasknowingly violated any provision ofsections1707.01 to 1707.45 of the Revised Code, or anyregulationor ordermade thereunder;

(5) Has knowingly made a false statementof a material factor an omission of a material fact in anapplication for a license,in adescription or application thathas been filed, or in anystatement made to the division undersuch sections;

(6) Has refused to comply with any lawful order orrequirement of the division under section 1707.23 of the RevisedCode;

(7) Has been guilty of any fraudulent act in connectionwiththe sale of any securities or in connection with acting as aninvestment adviser, investment adviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer;

(8) Conducts business in purchasing or selling securitiesatsuch variations from the existing market as in the light ofallthe circumstances are unconscionable;

(9) Conducts business in violation of such rules andregulations as the division prescribes for the protection ofinvestors, clients, or prospective clients;

(10)(a) Has failed to furnish to the division anyinformationwith respect to thepurchases or sales of securitieswithin thisstate that maybe reasonably requested by the divisionas pertinent to theprotection of investors in this state.

(b) Has failed to furnish to the division anyinformationwith respect to acting as an investment adviser, investmentadviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer within this statethat may be reasonablyrequested by the division.

(B) For the protection of investors the division mayprescribereasonable rules defining fraudulent, evasive,deceptive, orgrossly unfair practices or devices in the purchaseor sale ofsecurities.

(C) For the protection of investors, clients, orprospectiveclients, the division may prescribe reasonable rulesregarding theacts and practices of an investment adviser or aninvestmentadviser representative.

(D) Pending any investigation or hearing provided for insections 1707.01 to 1707.45 of the Revised Code, thedivision mayorder the suspension of any dealer's,salesperson's, investmentadviser's, investment adviserrepresentative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer'slicense bynotifying the party concerned of such suspension andthe cause forit. If it is a salesperson whose licenseissuspended, thedivision shall also notify the dealer employingthe salesperson.If it is an investment adviser representativewhose license issuspended, the division also shall notify the investmentadviserwith whom the investment adviser representative is employed orassociated. If it is a state retirement system investment officer whose license is suspended, the division shall also notify the state retirement system with whom the state retirement system investment officer is employed. If it is a bureau of workers' compensation chief investment officer whose license is suspended, the division shall also notify the bureau of workers' compensation.

(E)(1) The suspension or revocation of the dealer's licensesuspends the licenses of all thedealer's salespersons.

(2) The suspension or revocation of the investmentadviser'slicense suspends the licenses of all the investment adviser'sinvestment adviser representatives. The suspension orrevocationof an investment adviser's registration undersection 203 of the"Investment Advisers Actof 1940," 15 U.S.C.80b-3, suspends thelicenses of all the investmentadviser's investment adviserrepresentatives.

(F) It is sufficient cause for refusal, revocation, orsuspension of the license in case of a partnership, partnershipassociation, corporation, or unincorporated association if anygeneral partner of the partnership, manager ofthe partnershipassociation, or executive officer of the corporation orunincorporated association is not of good business repute or hasbeen guilty of any act or omission which would be cause forrefusing or revoking the license of an individual dealer,salesperson, investment adviser, or investmentadviserrepresentative.

Sec. 1707.20. (A) The division of securities may adopt,amend, and rescind such rules, forms, and orders as are necessaryto carry out sections 1707.01 to 1707.45 of the Revised Code,including rules and forms governing registration statements,applications, and reports, and defining any terms, whether or notused in sections 1707.01 to 1707.45 of the Revised Code, insofaras the definitions are not inconsistent with thesesections. Forthe purpose of rules and forms, the division mayclassifysecurities, persons, and matters within itsjurisdiction, andprescribe different requirements for differentclasses.

(B) No rule, form, or order may be made, amended, orrescinded unless the division finds that the actionis necessaryor appropriate in the public interest or for theprotection ofinvestors, clients, prospective clients, or state retirement systems, or the workers' compensation system andconsistent with thepurposes fairlyintended by the policy and provisions of sections1707.01 to1707.45 of the Revised Code. In prescribing rules andforms andin otherwise administering sections 1707.01 to 1707.45of theRevised Code, the division may cooperate with thesecurities administrators of the other states and the securitiesand exchange commission with a view of effectuating the policy ofthis section to achieve maximum uniformity in the form andcontentof registration statements, applications, reports, andoverallsecurities regulation wherever practicable.

(1) The form and content of financial statements requiredunder sections 1707.01 to 1707.45 of the Revised Code;

(2) The circumstances under which consolidated financialstatements shall be filed;

(3) Whether any required financial statements shall becertified by independent or certified public accountants. Allfinancial statements shall be prepared in accordance withgenerally accepted accounting practices.

(D) All rules and forms of the divisionshall be published;and in addition to fulfilling therequirements of Chapter119. ofthe Revised Code,the division shall prescribe, and shall publishand makeavailable its rules regarding the sale of securities, theadministration of sections 1707.01 to 1707.45 of the RevisedCode,and the procedure and practice before the division.

(E) No provision of sections 1707.01 to 1707.45 of theRevised Code imposing any liability applies to any act done oromitted in good faith in conformity with any rule, form, or orderof the division of securities, notwithstanding that the rule,form, or order may later be amended or rescinded or be determinedby judicial or other authority to be invalid for any reason,except that the issuance of an order granting effectiveness to aregistration under section 1707.09 or 1707.091 of the RevisedCodefor the purposes of this division shall not be deemed anorderother than as the establishment of the fact ofregistration.

Sec. 1707.22. Whenever a dealer's,salesperson's, investment adviser's, investment adviserrepresentative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license has been refused,suspended, or revoked, or a renewal thereof has been denied, by the divisionof securities, or whenever the division has refused to qualify securities orhas suspended or revoked the registration of any particular security bydescription or by qualification, or the right to buy, sell, or deal in anyparticular security whether it is registered or qualified or exempt, orwhether the transactions in it are registered or exempt, the aggrieved partymay appeal in accordance with Chapter 119. of the Revised Code.

An order sustaining the refusal of the division to grant or renew adealer's,salesperson's, investment adviser's, investment adviser representative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license or to grant qualification ofsecurities, or an order sustainingthe division in suspending or revoking a dealer's,salesperson's, investment adviser's, investment adviserrepresentative's, bureau of workers' compensation chief investment officer's, or state retirement system investment officer's license, theregistration of any particular security by description or by qualification, orthe right to buy, sell, or deal in any particular security, shall not bar,after ten days from the order, a new registration bydescription, or a newapplication of the plaintiff for such a license or qualification or for awithdrawal of a revocation or suspension; nor shall an order in favor ofthe plaintiff prevent the division, after proper notice and hearing, fromthereafter revoking or suspending such license, registration, or right to buy,sell, or deal in a particular security, for any proper cause which may, afterthe order, accrue or be discovered.

Sec. 1707.23. Whenever it appears to the division ofsecurities, from its files, upon complaint, or otherwise, thatanyperson has engaged in, is engaged in, or is about to engagein anypractice declared to be illegal or prohibited by this chapter orrules adopted under this chapter by thedivision, or defined asfraudulent in this chapter or rulesadopted under this chapterby the division, or any otherdeceptive scheme or practice inconnectionwith the sale of securities, or acting as a dealer, a salesperson, an investmentadviser,investment adviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer or when the divisionbelieves itto be in the best interests of the public andnecessary for theprotection of investors, the division may do anyof the following:

(A) Require any person to file with it, on such forms asitprescribes, an original or additional statement or report inwriting, under oath or otherwise, as to any facts orcircumstancesconcerning the issuance, sale, or offer for sale ofsecuritieswithin this state by the person,as to the person's acts orpractices as a dealer, a salesperson, an investment adviser, investmentadviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officer within this state, and as to otherinformation asit deems material or relevant thereto;

(B) Examine any investment adviser, investment adviserrepresentative, state retirement system investment officer, bureau of workers' compensation chief investment officer, oranyseller, dealer, salesperson, or issuer ofanysecurities, and any of their agents, employees, partners,officers, directors, members, or shareholders, wherever located,under oath; and examine and produce records, books, documents, accounts,andpapers as the division deems material or relevant to theinquiry;

(C) Require the attendance of witnesses, and theproductionof books, records, and papers, as are requiredeither by thedivision or by any party to a hearing before thedivision, and forthat purpose issue a subpoena for any witness,or a subpoena ducestecum to compel the production of any books,records, or papers.The subpoena shall be served bypersonal service or by certifiedmail, return receipt requested. If the subpoena is returnedbecause of inability to deliver, or if no return is receivedwithin thirty days of the date of mailing, the subpoena may beserved by ordinary mail. If no return of ordinary mail isreceived within thirty days after the date of mailing, serviceshall be deemed to have been made. If the subpoena is returnedbecause of inability to deliver, the division may designate aperson or persons to effect either personal or residence serviceupon the witness. The person designated to effect personal orresidenceservice under this division may be the sheriff of thecountyin which the witness resides or may be found or any otherdulydesignated person. The fees and mileage of the personservingthe subpoena shall be the same as those allowed by thecourts ofcommon pleas in criminal cases, and shall be paid fromthe fundsof the division. Fees and mileage for the witness shallbe thesame as those allowed for witnesses by the courts of commonpleasin criminal cases, and shall be paid from the funds of thedivision upon request of the witness following the hearing.

(D) Initiate criminal proceedings under section 1707.042or1707.44 of the Revised Code or rules adopted under those sectionsby thedivision by laying before the prosecutingattorney of theproper county any evidence of criminality whichcomes to itsknowledge; and in the event of the neglect orrefusal of theprosecuting attorney to prosecute such violations,or at therequest of the prosecuting attorney, the division shallsubmit theevidence to the attorney general, who mayproceed intheprosecution with all the rights, privileges, and powersconferredby law on prosecuting attorneys, including the power toappearbefore grand juries and to interrogate witnesses beforesuch grandjuries.

(E) Require any dealersimmediately to furnish tothedivisioncopies of prospectuses, circulars, or advertisementsrespectingsecurities that they publish or generallydistribute,or requireany investment advisers immediatelyto furnish to thedivisioncopies of brochures, advertisements,publications,analyses,reports, or other writings that theypublish ordistribute;

(F) Require any dealers to mail to the division, prior tosale, notices of intention to sell, in respect to all securitieswhich are not exempt under section 1707.02 of the Revised Code,orwhich are sold in transactions not exempt under section1707.03 or1707.04 of the Revised Code;

(G) Issue and cause to be served by certified mail uponallpersons affected an order requiring the person or persons toceaseand desist from the acts or practices appearing to thedivision toconstitute violations of this chapter or rules adopted underthis chapter by thedivision. The order shall state specificallythesection or sections of thischapter or the rule orrulesadopted under this chapter by the division thatappear to thedivision to have been violated andthe facts constituting theviolation. If after the issuance ofthe order it appears to thedivision that anyperson or persons affected by the order haveengaged in any actor practice from which the person or personsshall have beenrequired, by the order, to cease and desist, thedirector ofcommerce may apply to the court of common pleas of anycountyfor, and upon proof of the validity of the order of thedivision,the delivery of the order to the person or personsaffected, and of the illegality and the continuation of the actsor practices that are the subject of the order, the court maygrant an injunction implementing the order of the division.

(H) Issue and initiate contempt proceedings in this stateregardingsubpoenas and subpoenas duces tecum at the request ofthesecurities administrator of another state, if it appears tothedivision that the activities for which the information issoughtwould violate this chapter ifthe activities had occurredin this state.

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

Sec. 1707.25. In case any person fails to file anystatement or report required by sections1707.01 to 1707.45 of the Revised Code,to obey any subpoena the issuanceof which is provided for in those sections, or to producebooks, records, or papers, give testimony, or answer questions, asrequired by those sections, the director of commerce mayapply toa court of common pleas of any county for, and upon proof of suchfailure the court may grant, an injunctionrestraining theacting as an investment adviser, investment adviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer, orthe issuance, sale, or offer for sale of any securities by theperson or by its agents, employees, partners, officers,directors, or shareholders, until such failure has been remediedand other relief as the facts may warrant has been had. Such injunctive relief is available in addition to the otherremedies provided for in sections 1707.01 to1707.45 of the Revised Code.

Where the person refusing to comply with such order ofcourt is an issuer of securities, the court may enjoin the saleby any dealer of any securities of the issuer, and thedivisionof securities may revoke the qualification of the securities ofthe issuer, or suspend or revoke the sale of any securitiesof the issuer which have been registered by description, andsuch securities shall not thereafter be sold by any dealer untilthe order of the court or of the division is withdrawn.

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

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

(C) A court order granting restitution or rescission based upon a request made pursuant to division (A) of this section shall meet the requirements of division (B) of this section and may not be based solely upon a final order issued by the division of securities pursuant to Chapter 119. of the Revised Code or upon an action to enforce a final order issued by the division pursuant to that chapter. Notwithstanding the foregoing provision, a request for restitution or rescission pursuant to division (A) of this section may concern the same acts, practices, or transactions that were, or may later be, the subject of a division of securities action for a violation of any provision of sections 1707.01 to 1707.45 of the Revised Code. If a request for restitution or rescission pursuant to division (A) of this section concerns the same acts, practices, or transactions that were the subject of a final order issued by the division of securities pursuant to Chapter 119. of the Revised Code, the court shall review the request in accordance with division (B) of this section, and the standard of review in section 119.12 of the Revised Code shall not apply to the request.

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

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

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

(F)(1) If a court of common pleas grants an injunction pursuant to section 1707.26 of the Revised Code against a bureau of workers' compensation chief investment officer, after consultation with the attorney general, the director of commerce may request that court to order the bureau of workers' compensation chief investment officer who is subject to the injunction to make restitution to the bureau of workers' compensation damaged by the bureau of workers' compensation chief investment officer's violation of any provision of sections 1707.01 to 1707.45 of the Revised Code.

(2) If the court of common pleas is satisfied with the sufficiency of the director's request for restitution under division (F)(1) of this section and with the sufficiency of the proof of a substantial violation of any provision of sections 1707.01 to 1707.45 of the Revised Code, or of the use of any act, practice, or transaction declared to be illegal or prohibited or defined as fraudulent by those sections or rules adopted under those sections by the division of securities, to the material prejudice of the bureau of workers' compensation, the court may order the bureau of workers' compensation chief investment officer subject to the injunction to make restitution to the bureau of workers' compensation damaged by the bureau of workers' compensation chief investment officer's violation of sections 1707.01 to 1707.45 of the Revised Code. A request for restitution pursuant to division (F)(1) of this section may concern the same acts, practices, or transactions that were, or may later be, the subject of a division of securities action for a violation of any provision of section 1707.01 to 1707.45 of the Revised Code.

Sec. 1707.431. For purposes of this section, the followingpersons shall not be deemed to have effected, participated in, oraided the seller in any way in making, a sale or contract of salein violation of sections 1707.01 to 1707.45 of the Revised Code:

(A) Any attorney, accountant, or engineer whoseperformance is incidental to the practice of the person'sprofession;

(B) Any person, other than an investment adviser, investmentadviser representative, bureau of workers' compensation chief investment officer, or state retirement system investment officer, who brings any issuer together with anypotential investor, without receiving, directly or indirectly, acommission, fee, or other remuneration based on the sale of anysecurities by the issuer to theinvestor. Remunerationreceived by the person solely for the purpose of offsettingthereasonable out-of-pocket costs incurred by the person shall notbe deemed a commission, fee, or other remuneration.

Any person claiming exemption under this division for apublicly advertised meeting shall file a notice with the divisionof securities indicating an intent to cause or hold such ameeting at least twenty-one days prior to the meeting. Thedivision may, upon receipt of such notice, issue an order denyingthe availability of an exemption under this division not morethan fourteen days after receipt of the notice based on afinding that the applicant is not entitled to the exemption. Notwithstanding the notice described in this section, a failureto file the notice does not create a presumption that apersonwas participating in or aiding in the making of a sale orcontract of sale in violation of this chapter.

Sec. 1707.44. (A)(1) No person shall engage in any act orpractice thatviolates division (A), (B), or (C) of section1707.14 of the RevisedCode, and no salesperson shall sellsecurities in this state withoutbeing licensed pursuant tosection 1707.16 of the Revised Code.

(2) No person shall engage in any act or practice thatviolatesdivision (A) of section 1707.141 or section 1707.161 ofthe Revised Code.

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

(4) No person shall engage in any act or practice that violates section 1707.164 of the Revised Code.

(B) No person shall knowingly make or cause to be made anyfalse representation concerning a material and relevant fact, inany oral statement or in any prospectus, circular, description,application, or written statement, for any of the followingpurposes:

(1)Registering securities or transactions, orexemptingsecurities or transactions from registration, under thischapter;

(3) Procuring the licensing of any dealer,salesperson,investment adviser, investment adviserrepresentative, bureau of workers' compensation chief investment officer, or state retirement system investment officerunderthis chapter;

(5) Advising for compensation, as to the value of securitiesor as to theadvisability of investing in, purchasing, or sellingsecurities;

(6) Submitting a notice filing to the division underdivision (X) of section 1707.03 or section1707.092 or 1707.141 ofthe Revised Code.

(C) No person shall knowingly sell,causeto be sold, offerfor sale, or cause to be offered forsale, anysecurity whichcomes under any of the followingdescriptions:

(1) Is not exempt under section 1707.02 of the RevisedCode,nor the subject matter of one of the transactions exemptedinsection 1707.03, 1707.04, or1707.34 of the Revised Code,has notbeen registered by coordination orqualification,and is not thesubject matter of a transactionthat has beenregistered bydescription;

(2) The prescribed fees for registering by description, bycoordination, or by qualification have not been paid in respecttosuch security;

(3)The person has been notified by the division, or hasknowledge of the notice, that the right to buy, sell, ordeal insuch security has been suspended or revoked, or that theregistration by description, by coordination, or by qualificationunder which it may be sold has been suspended or revoked;

(4) The offer or sale is accompanied by a statement thatthesecurity offered or sold has been or is to be in any mannerindorsed by the division.

(D) No person who is an officer, director, or trustee of,ora dealer for, any issuer, and who knows such issuer to beinsolvent in that the liabilities of the issuer exceed itsassets,shall sell any securities of or for any such issuer,withoutdisclosing the fact of the insolvency to thepurchaser.

(E) No person with intent to aid in the sale of anysecurities on behalf of the issuer, shall knowingly make anyrepresentation not authorized by such issuer or at materialvariance with statements and documents filed with the division bysuch issuer.

(F) No person, with intent to deceive, shall sell, causetobe sold, offer for sale, or cause to be offered for sale, anysecurities of an insolvent issuer, with knowledge that suchissueris insolvent in that the liabilities of the issuerexceeditsassets, taken at their fair market value.

(G) No person in purchasing or selling securities shallknowinglyengage in any act or practice that is, in this chapter,declaredillegal, defined as fraudulent, or prohibited.

(H) No licensed dealer shall refuse to buy from, sell to,ortrade with any person because the person appears on ablacklistissued by, or is being boycotted by, any foreigncorporate orgovernmental entity, nor sell any securities of orfor any issuerwho is known in relation to the issuance or saleofthesecurities to have engaged in such practices.

(I) No dealer in securities, knowing that the dealer'sliabilities exceed the reasonable value of the dealer'sassets,shall accept money or securities, except in payment of or assecurityfor an existing debt, from a customer who is ignorant ofthe dealer's insolvency, and thereby cause the customerto loseany part of the customer's securities or the valueof thosesecurities, by doingeither of the following without thecustomer's consent:

(1) Pledging, selling, or otherwise disposing of suchsecurities, when the dealer has no lien on or anyspecial propertyin such securities;

(2) Pledging such securities for more than the amount due,or otherwise disposing of such securities for the dealer'sownbenefit,when the dealer has a lien or indebtedness on suchsecurities.

It is an affirmative defense to a charge under thisdivisionthat, at the time the securities involved were pledged,sold, ordisposed of, the dealer had in the dealer'spossessionor control,and available for delivery, securities of the samekinds and inamounts sufficient to satisfy all customers entitledto thesecurities, upon demand and tender of any amountdue on thesecurities.

(J) No person, with purpose to deceive, shall make, issue,publish, or cause to be made, issued, or published any statementor advertisement as to the value of securities, or as to allegedfacts affecting the value of securities, or as to the financialcondition of any issuer of securities, when the person knowsthatsuch statement or advertisement is false in any materialrespect.

(K) No person, with purpose to deceive, shall make,record,or publish or cause to be made, recorded, or published, areportof any transaction in securities which is false in anymaterialrespect.

(L) No dealer shall engage in any act that violates theprovisions of section15(c) or 15(g) of the"Securities ExchangeAct of 1934," 48 Stat. 881, 15U.S.C.A. 78o(c) or (g), or any ruleor regulation promulgated by thesecurities and exchangecommission thereunder. If, subsequent toOctober 11, 1994,additional amendments to section 15(c) or 15(g) are adopted, oradditionalrules or regulations are promulgated pursuant to suchsections, the divisionof securities shall, by rule, adopt theamendments, rules, or regulations,unless the division finds thatthe amendments, rules, or regulations are notnecessary for theprotection of investors or in the public interest.

(M)(1) No investment adviser or investment adviserrepresentative shall do any of the following:

(b) Engage in any act, practice, or course of businessthatoperates or would operate as a fraud or deceit upon anyperson;

(c) In acting as principal for the investment adviser's orinvestment adviser representative's own account, knowingly sellany security to or purchase any security from a client, or inacting as salesperson for a person other than such client,knowingly effect any sale or purchase of any security for theaccount of such client, without disclosing to the client inwriting before the completion of the transaction the capacity inwhich the investment adviser or investment adviserrepresentativeis acting and obtaining the consent of the clientto thetransaction. Division (M)(1)(c)of this section does not apply toany investment adviserregistered with the securities and exchangecommission undersection 203 of the"Investment Advisers Act of1940," 15 U.S.C. 80b-3, or toany transaction with a customerof alicensed dealer or salesperson if the licensed dealer orsalesperson is not acting as an investment adviser or investmentadviser representative in relation to the transaction.

(d) Engage in any act, practice, orcourse of business thatis fraudulent, deceptive, ormanipulative. The division ofsecurities may adopt rulesreasonably designed to prevent suchacts, practices, or coursesof businessthat are fraudulent,deceptive, or manipulative.

(2) No investment adviser or investment adviserrepresentative licensed or required to be licensed under thischapter shall take or have custody of any securities or funds ofany person, except as provided in rules adopted by the division.

(3) In the solicitation of clients or prospective clients,noperson shall make any untrue statement of a material fact oromit to state a material fact necessary in order to make thestatements made not misleading in light of the circumstancesunderwhich the statements were made.

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

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

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

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

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

(4) Knowingly fail to comply with any policy adopted regarding the officer established pursuant to section 145.094, 742.104, 3307.043, 3309.043, or ~~5505.066~~ 5505.065 of the Revised Code.

(P) No bureau of workers' compensation chief investment officer shall do any of the following:

(1) Employ any device, scheme, or artifice to defraud the workers' compensation system;

(2) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit on the workers' compensation system;

(4) Knowingly fail to comply with any policy adopted regarding the officer established pursuant to section 4123.441 of the Revised Code.

Sec. 1707.46. The principal executive officer of the division of securitiesshall be the commissioner of securities, who shall be appointed by thedirector of commerce. The commissioner of securities shall enforce all thelaws and administrative rules enacted or adopted to regulate the saleof bonds, stocks,and other securities and to prevent fraud in such sales. The commissioner also shall enforce all the laws and administrative rulesenacted or adopted to regulate investment advisers, investment adviserrepresentatives, ~~and~~ state retirement system investment officers, and the bureau of workers' compensation chief investment officer and to prevent fraud in their acts, practices, andtransactions.

The commissioner shall be paid at a rate not less than pay range 47 set out inschedule E-2 of section 124.152 of the Revised Code, to be paid as otheroperating expenses of the division.

(A) Study any subject pertaining to amusement ride safety, includingadministrative, engineering, and technical subjects, and make findings andrecommendations to the director of agriculture;

(B) Prior to the ~~promulgation~~ adoption of any rules or amendments to those rules underdivision (B) of section 1711.53 and division (B) of section 1711.551 of theRevised Code, study the proposed rules to be ~~promulgated~~ adopted by the directorregarding amusement ride safety, advise the director, and make findings andrecommendations to the director;

(C) Not later than December 31, 2006, prepare and submit a report to the governor, the speaker and the minority leader of the house of representatives, the president and the minority leader of the senate, and the director concerning the advisory council's recommendations for alternative funding sources for the amusement ride safety program established under this chapter.

The director shall make available to the advisory councilany information,reports, and studies requested by the advisory council.

Sec. 1711.53. (A)(1) No person shall operate an amusementride within the state without a permit issued by the director ofagriculture under division (A)(2) of this section. The owner ofan amusement ride, whether the ride is a temporary amusement rideor a permanent amusement ride, who desires to operate theamusement ride within the state shall, prior to the operation ofthe amusement ride and annually thereafter, submit to thedepartment of agriculture an application for a permit, togetherwith the appropriate permit and inspection fee, on a form to befurnished by the department. Prior to issuing any permit thedepartment shall, within thirty days after the date on which itreceives the application, inspect each amusement ride describedinthe application.The owner of an amusement ride shall have theamusement ride ready for inspection not later than two hours afterthe time that is requested by the person for the inspection.

(2) For each amusement ride found to comply with the rulesadopted by the director under division (B) of thissection anddivision (B) of section 1711.551 of the Revised Code,thedirectorshall issue an annual permit, provided that evidenceofliabilityinsurance coverage for the amusement ride as requiredby section1711.54 of the Revised Code is on file with thedepartment.

(3) The director shall issue with each permit a decalindicating that the amusement ride has been issued the permit.Theowner of the amusement ride shall affix the decal on the rideat alocation where the decal is easily visible to the patrons oftheride. A copy of the permit shall be kept on file at the sameaddress as the location of the amusement ride identified on thepermit, and shall be made available for inspection, uponreasonable demand, by any person. An owner may operate anamusement ride prior to obtaining a permit, provided thattheoperation is for the purpose of testing the amusement ride ortraining amusement ride operators and other employees of theownerand the amusement ride is not open to the public.

(B) The director, in accordance with Chapter 119. of theRevised Code, shall adopt rules providing for a schedule offines,with no fine exceeding five thousand dollars, forviolations ofsections 1711.50 to 1711.57 of the Revised Code orany rulesadopted under this division and for theclassificationof amusement rides and rules for the safeoperationand inspectionof all amusement rides as are necessaryforamusement ride safetyand for the protection of the generalpublic. Rules adopted bythe director for the safe operation andinspection of amusementrides shall be reasonable and based upongenerally acceptedengineering standards and practices. Inadopting rules under thissection, the director may adopt byreference, in whole or in part,the national fire code or thenational electrical code (NEC) prepared bythe national fire protectionassociation, the standards of the American society for testing and materials (ASTM) orthe American nationalstandards institute (ANSI), or any otherprinciples, tests, or standardsof nationally recognized technicalor scientific authorities.Insofar as is practicable andconsistent with sections 1711.50 to1711.57 of the Revised Code,rules adopted under this divisionshall be consistent with therules of other states. Thedepartment shall cause sections1711.50 to 1711.57 of the RevisedCode and the rules adopted inaccordance with this division anddivision (B) of section 1711.551of the Revised Code to bepublished in pamphlet form and a copy tobe furnished withoutcharge to each owner of an amusement ride whoholds a currentpermit or is an applicant therefor.

(C) With respect to an application for a permit for anamusement ride, an owner may apply to the directorfor a waiver or modification of any rule adopted under division(B) of this section if there are practical difficulties orunnecessary hardships for the amusement ride to comply withtherules. Any applicationshall set forth the reasons fortherequest. The director, with the approval of the advisorycouncilon amusement ride safety, may waive or modify theapplicationofarule to any amusement ride if the public safetyis secure. Anyauthorization by the director under this divisionshall be inwriting and shall set forth the conditions under whichthe waiveror modification is authorized, and the department shallretainseparate records of all proceedings under this division.

(D)(1) The director shall employ and provide for trainingofa chief inspector and additional inspectors and employees asmaybe necessary to administer and enforce sections 1711.50 to1711.57of the Revised Code. The director may appoint orcontract withother persons to perform inspections of amusementrides, providedthat the persons meet the qualifications forinspectorsestablished by rules adopted under division (B) ofthis sectionand are not owners, or employees of owners, of anyamusement ridesubject to inspection under sections 1711.50 to1711.57 of theRevised Code. No person shall inspect anamusement ride who,within six months prior to the date ofinspection, was an employeeof the owner of the ride.

(2) Before the director contracts with other persons toinspect amusement rides, the director shall seek the advice oftheadvisory council on amusement ride safety on whethertocontractwiththose persons.The advice shall not be bindinguponthedirector. After having received the advice of thecouncil,thedirector may proceed to contract withinspectors inaccordancewith the procedures specified indivision (E)(2) of section1711.11 of theRevised Code.

(3) With the advice and consent of the advisory councilonamusement ride safety, the director may employ a specialconsultant to conduct an independent investigation of anamusementride accident. This consultant need not be in thecivil serviceof the state, but shall have qualifications toconduct theinvestigation acceptable to the council.

(E)(1) Except as otherwise provided in division (E)(1)of this section, the department shall chargethefollowing amusementridefees:

The go kart inspection fee is in addition to the inspectionfee for the go kart track.

The fees for an expedited inspection, failure to cancel ascheduled inspection, and failure to have an amusement ride readyfor inspection do not apply to go karts.

As used in division (E)(1) of this section, "expeditedinspection" means an inspection of an amusement ride by thedepartment not later than ten days after the owner of theamusement ride files an application for a permit under thissection.

(2) All fees andfines collected by the department under sections 1711.50 to1711.57 of the Revised Code shall be deposited in the statetreasury to the credit of the amusement ride inspection fund,which is hereby created, and shall be used only for the purposeofadministering and enforcing sections 1711.11 and 1711.50 to1711.57 of the Revised Code.

(3)The owner of an amusement ride shall be required to pay areinspection fee only if the reinspection was conducted at theowner's request under division (F) of this section, if thereinspection is required by division (F) of this section becauseof an accident, or if the reinspection is required by division(F)of section 1711.55 of the Revised Code. If a reinspection isconducted at the request of the chief officer of a fair,festival,or event where the ride is operating, the reinspectionfee shallbe charged to the fair, festival, or event.

(4)The rules adopted under division (B) of this sectionshalldefine "kiddie rides," "rollercoaster," "aeriallifts,""go karts," and "other rides" forpurposes of determining thefeesunder division(E) ofthis section. The rules shall define "other rides" to include gokart tracks.

(F) A reinspection of an amusement ride shall take placeifan accident occurs, if the owner of the ride or the chiefofficerof the fair, festival, or event where the ride isoperatingrequests a reinspection, or if the reinspection isrequired bydivision (F) of section 1711.55 of the Revised Code.

(G) As a supplement to its annual inspection of atemporaryamusement ride, the department may inspect the rideduring eachscheduled event, as listed in the schedule of eventsprovided tothe department by the owner pursuant to division (C)of section1711.55 of the Revised Code, at which the ride isoperated in thisstate. These supplemental inspections are inaddition to anyother inspection or reinspection of the ride asmay be requiredunder sections 1711.50 to 1711.57 of the RevisedCode, and theowner of the temporary amusement ride is notrequired to pay aninspection or reinspection fee for thissupplemental inspection.Nothing in this division shall beconstrued to prohibit the ownerof a temporary amusement ridehaving a valid permit to operate inthis state from operating theride at a scheduled event before thedepartment conducts asupplemental inspection.

(H) The departmentmay annually conduct a midseasonoperational inspection of every amusement ride upon which itconducts an annual inspection pursuant to division (A) of thissection. The midseason operational inspection is in addition toany other inspection or reinspection of the amusement ride as maybe required pursuant to sections 1711.50 to 1711.57 of theRevisedCode. The owner of an amusement ride shall submit to thedepartment, at the time determined by the department, themidseason operational inspection fee specified in division (E) ofthis section. The director, in accordance with Chapter 119. ofthe Revised Code, shall adopt rules specifying the time periodduring which the departmentwill conduct midseasonoperationalinspections.

Sec. 1711.531. (A) No person shall operate an amusement ride powered from an electric light company source unless the amusement ride operates through a fusible switch, enclosed circuit breaker, or panelboard that has been:

(B) An amusement ride owner shall not use an electric light company source as described in division (A) of this section unless the owner has written certification that the fusible switch, enclosed circuit breaker, or panelboard satisfies the requirements established in divisions (A)(1) to (3) of this section and that is issued by a person certified under section 3783.03 or licensed under section 4740.06 of the Revised Code. The owner shall make the certificate available to the director of agriculture upon request.

(D) A person licensed pursuant to section 4740.06 of the Revised Code, when conducting an inspection pursuant to this section, is not violating section 3783.06 of the Revised Code.

(E) As used in this section, "electric light company" has the same meaning as in section 4905.03 of the Revised Code.

Sec. 1713.03. The Ohio board of regents shall establishstandards for certificates of authorization to be issued toinstitutions as defined in section 1713.01 of the Revised Code, toprivate institutions exempt from regulation under Chapter 3332. ofthe Revised Code as prescribed insection 3333.046 of the RevisedCode,and to schools holdingcertificates of registration issuedby thestate board ofcareercolleges and schools pursuant todivision (C) ofsection 3332.05of theRevised Code. Acertificate ofauthorization may permit aninstitution or schoolto award one ormore types of degrees.

The standards for a certificate of authorization mayinclude,for various types of institutions, schools, or degrees,minimumqualifications for faculty, library, laboratories, andotherfacilities as adopted and published by the Ohio board ofregents.The standards shall be adopted by the board pursuant toChapter119. of the Revised Code.

An institution or school shall apply to the board for acertificate of authorization on forms containing such informationas is prescribed by the board. Each institution or school with acertificate of authorization shall file an annual report with theboard in such form and containing such information as the boardprescribes.

The board shall adopt a rule under Chapter 119. of the Revised Code establishing fees to pay the cost of reviewing an application for a certificate of authorization, which the institution or school shall pay when it applies for a certificate of authorization, and establishing fees, which an institution or school shall pay, for any further reviews the board determines necessary upon examining an institution's or school's annual report.

Sec. 1751.03. (A) Eachapplication for a certificate of authority under this chaptershall be verified by an officer or authorized representative ofthe applicant, shall be in a format prescribed by thesuperintendent of insurance, and shall set forth or beaccompanied by the following:

(1) A certified copy of the applicant's articles ofincorporation and all amendments to the articles ofincorporation;

(2) A copy of any regulations adopted for the governmentof the corporation, any bylaws, and any similar documents, and acopy of all amendments to these regulations, bylaws, anddocuments. The corporate secretary shall certify that theseregulations, bylaws, documents, and amendments have beenproperly adopted or approved.

(3) A list of the names, addresses, and officialpositions of the persons responsible for the conduct of theapplicant, including all members of the board, the principalofficers, and the person responsible for completing or filingfinancial statements with the department of insurance,accompanied by a completed original biographical affidavit andrelease of information for each of these persons on formsacceptable to the department;

(4) A full and complete disclosure of the extent andnature of any contractual or other financial arrangement betweenthe applicant and any provider or a person listed in division(A)(3) of this section,including, but not limited to, a full and complete disclosure ofthe financial interest held by any such provider or person inany health care facility, provider, or insurer that has enteredinto a financial relationship with the health insuringcorporation;

(5) A description of the applicant, its facilities, andits personnel, including, but not limited to, the location,hours of operation, and telephone numbers of all contractedfacilities;

(6) The applicant's projected annual enrollee populationover a three-year period;

(7) A clear and specific description of the health careplan or plans to be used by the applicant, including adescription of the proposed providers, procedures for accessingcare, and the form of all proposed and existing contractsrelating to the administration, delivery, or financing of healthcare services;

(8) A copy of each type of evidence of coverage andidentification card or similar document to be issued tosubscribers;

(9) A copy of each type of individual or group policy,contract, or agreement to be used;

(10) The schedule of the proposed contractual periodicprepayments or premium rates, or both, accompanied by appropriate supportingdata;

(11) A financial plan which provides a three-yearprojection of operating results, including the projectedexpenses, income, and sources of working capital;

(12) The enrollee complaint procedure to be utilized asrequired under section 1751.19 of theRevisedCode;

(13) A description of the procedures and programs to be implemented on anongoing basis to assure the quality of health care services delivered toenrollees, including, if applicable, a description of a qualityassurance programcomplying with the requirements ofsections 1751.73 to 1751.75 of the Revised Code;

(14) A statement describing the geographic area or areasto be served, by county;

(16) A balance sheet and other financial statementsshowing the applicant's assets, liabilities, income, and othersources of financial support;

(17) A description of the nature and extent of anyreinsurance program to be implemented, and a demonstration thaterrors and omission insurance and, if appropriate, fidelityinsurance, will be in place upon the applicant's receipt of acertificate of authority;

(18) Copies of all proposed or in force related-party orintercompany agreements with an explanation of the financialimpact of these agreements on the applicant. If the applicantintends to enter into a contract for managerial oradministrative services, with either an affiliated or an unaffiliated person,the applicant shall provide a copy of the contract and a detailed descriptionof the person toprovide these services. The description shall include that person'sexperience in managing or administering health care plans, acopy of that person's most recent audited financial statement,and a completed biographical affidavit on a form acceptable tothe superintendent for each of that person's principal officersand board members and for any additional employee to be directlyinvolved in providing managerial or administrative services tothe health insuring corporation. If the person to providemanagerial or administrative services is affiliated with thehealth insuring corporation, the contract must provide forpayment for services based on actual costs.

(19) A statement from the applicant's board that theadmitted assets of the applicant have not been and will not bepledged or hypothecated;

(20) A statement from the applicant's board that theapplicant will submit monthly financial statements during thefirst year of operations;

(21) The name and address of the applicant'sOhio statutory agent forservice of process, notice, or demand;

(23) The location of those books and records of theapplicant that must be maintained, which books and records shall bemaintained in Ohio if the applicant is a domestic corporation, andwhich maybe maintained either in the applicant's state of domicile or inOhio if the applicant is aforeign corporation;

(24) The applicant's federal identification number,corporate address, and mailing address;

(27) If the applicant has a parent company, the parentcompany's guaranty, on a form acceptable to the superintendent,that the applicant will maintainOhio's minimum net worth. Ifno parent company exists, a statement regarding the availabilityof future funds if needed.

(29) If the applicant is a foreign corporation, a copy of themost recent financial statements filed with the insuranceregulatory agency in the applicant's state of domicile;

(30) If the applicant is a foreign corporation, a statementfrom the insurance regulatory agency of the applicant's state ofdomicile stating that the regulatory agency has no objection tothe applicant applying for an Ohio license and that theapplicant is in good standing in the applicant's state ofdomicile;

(32) Documentation acceptable to the superintendent of the bond or securities required by section 1751.271 of the Revised Code.

(B)(1) A health insuringcorporation, unless otherwise provided for in this chapteror in section 3901.321 of theRevisedCode,shall file a timely notice with the superintendent describingany change to the corporation's articles of incorporation orregulations, or any major modification to its operations as setout in the information required by division(A) of this section thataffects any of the following:

(b) The health insuringcorporation's continued provision of services that it hascontracted to provide;

(2) If the change or modification is to be the result of an actionto be taken by the health insuring corporation, the notice shallbe filed with the superintendent prior to the health insuring corporationtakingthe action. The action shall be deemed approved if thesuperintendent does not disapprove it within sixty days offiling.

(3) The filing of a notice pursuant to division(B)(1) or (2) of this sectionshall also serve as the submission of a notice when required forthe superintendent's review for purposes of section 3901.341 ofthe RevisedCode, if the notice containsall of the informationthat section 3901.341 of theRevisedCode requires for suchsubmissions and a copy of any written agreement. The filing of such a notice,for the purpose of satisfying thisdivision and section 3901.341 of theRevisedCode, shall be subject to thesixty-day review period of division(B)(2) of this section.

(C)(1) No healthinsuring corporation shall expand its approved service areauntil a copy of the request for expansion, accompanied bydocumentation of the network of providers,forms of all proposed or existing provider contractsrelating to the delivery of health care services, a schedule ofproposed contractual periodic prepayments and premium rates forgroup contracts accompanied by appropriate supportingdata, enrollmentprojections, plan of operation, and any other changes have beenfiled with the superintendent.

(2) Within ten calendar days after receipt of a completefiling under division (C)(1) ofthis section, the superintendent shall refer the appropriatejurisdictional issues to the director of health if required pursuant tosection 1751.04 of the RevisedCode.

(3) Within seventy-five days after the superintendent's receiptof a complete filing under division(C)(1) of this section, thesuperintendent shall determine whether the plan for expansion islawful, fair, and reasonable. ~~The~~ If a referral is required pursuant to section 1751.04 of the Revised Code, the superintendent may not make adetermination until the superintendent has received thedirector's certification of compliance, which the director shallfurnish within forty-five days after the referral under division(C)(2) of this section. Thedirector shall not certify that the requirements of section1751.04 of the RevisedCode are not met, unless theapplicant has been given an opportunity for a hearing asprovided in division (D) ofsection 1751.04 of the RevisedCode. The forty-five-day andseventy-five-day review periods provided for in division(C)(3) of this section shallcease to run as of the date on which the notice of theapplicant's right to request a hearing is mailed and shallremain suspended until the director issues a finalcertification.

(4) If the superintendent has not approved or disapprovedall or a portion of a service area expansion within theseventy-five-day period provided for in division(C)(3) of this section, thefiling shall be deemed approved.

(5) Disapproval of all or a portion of the filing shallbe effected by written notice, which shall state the grounds forthe order of disapproval and shall be given in accordance withChapter 119. of the Revised Code.

Sec. 1751.04. (A) ~~Upon~~ Except as provided by division (F) of this section, upon thereceipt by the superintendent of insurance of a completeapplication for a certificate of authority to establish oroperate a health insuring corporation, which application setsforth or is accompanied by the information and documentsrequired by division (A) ofsection 1751.03 of the RevisedCode, the superintendent shalltransmit copies of the application and accompanying documents tothe director of health.

(B) The director shallreview the application and accompanying documents and makefindings as to whether the applicant for a certificate ofauthority has done all of the following with respect to any basic health careservices and supplementalhealth care services to be furnished:

(1) Demonstrated the willingness and potential ability toensure that all basic health care services and supplementalhealth care services described in theevidence of coverage willbe provided to all its enrollees as promptly as is appropriateand in a manner that assures continuity;

(2) Made effective arrangements to ensure that itsenrollees have reliable access to qualified providers in thosespecialties that are generally available in the geographic areaor areas to be served by the applicant and that are necessary toprovide all basic health care services and supplemental healthcare services described in the evidence ofcoverage;

(3) Made appropriate arrangements for the availability ofshort-term health care services in emergencies within thegeographic area or areas to be served by the applicant,twenty-four hours per day, seven days per week, and for theprovision of adequate coverage whenever an out-of-area emergencyarises;

(4) Made appropriate arrangements for an ongoing evaluation and assuranceof the quality of health care services provided to enrollees,including, if applicable, the development of a quality assurance programcomplying with therequirements of sections 1751.73 to 1751.75 of the Revised Code, and the adequacyof the personnel, facilities, and equipment by or through which the servicesare rendered;

(5) Developed a procedure to gather and report statisticsrelating to the cost and effectiveness of its operations, thepattern of utilization of its services, and the quality,availability, and accessibility of its services.

(C) Within ninety days of the director's receipt of theapplication forissuance of a certificate of authority, the director shallcertify to the superintendent whether or not the applicant meetsthe requirements of division (B) of this section and sections 3702.51to 3702.62 of the Revised Code. If the directorcertifies that the applicant does not meet these requirements,the director shall specify in what respects it is deficient. However, the director shall not certify that the requirements ofthis section are not met unless the applicant has been given anopportunity for a hearing.

(D) If the applicantrequests a hearing, the director shall hold a hearing beforecertifying that the applicant does not meet the requirements ofthis section. The hearing shall be held in accordance withChapter 119. of theRevised Code.

(E) Theninety-day review period provided for under division(C) of this section shall ceaseto run as of the date on which the notice of the applicant'sright to request a hearing is mailed and shall remain suspendeduntil the director issues a final certification order.

(F) Nothing in this section requires the director to review or make findings with regard to an application and accompanying documents to establish or operate a health insuring corporation to cover solely recipients of assistance under the medicaid program operated pursuant to Chapter 5111. of the Revised Code.

Sec. 1751.05. (A) Thesuperintendent of insurance shall issue or deny a certificate ofauthority to ~~establish or operate a~~ health insuring corporations within the deadlines specified as follows:

(1) For a health insuring corporation~~to any corporation~~ filing an application pursuant to section1751.03 of the RevisedCode ~~within~~, forty-five days of from thesuperintendent's receipt of the certification from the directorof health under division (C) of section 1751.04 ofthe Revised Code;

(2) For a health insuring corporation that covers solely recipients of assistance under the medicaid program operated pursuant to Chapter 5111. of the Revised Code, one hundred thirty-five days from the superintendent's receipt of a complete application and accompanying documents.

(B) A certificate of authority shall beissued upon payment of the application fee prescribed in section 1751.44 ofthe Revised Code if the superintendent issatisfied that the following conditions are met:

(1) The persons responsible for the conduct of theaffairs of the applicant are competent, trustworthy, and possessgood reputations.

(2) The director certifies, in accordance with division (C)of section 1751.04 of the Revised Code, that theorganization's proposed plan of operation meets the requirementsof division (B) of that section and sections 3702.51 to3702.62 of the Revised Code. If, after thedirector has certified compliance, the application is amended ina manner that affects its approval under section 1751.04 of theRevised Code, the superintendent shall request thedirector to review and recertify the amended plan of operation. Within forty-five days of receipt of the amended plan from thesuperintendent, the director shall certify to thesuperintendent, pursuant to section 1751.04 of theRevised Code, whether or not the amended planmeets the requirements of section 1751.04 of the RevisedCode. The superintendent's forty-five-day review periodshall cease to run as of the date on which the amended plan istransmitted to the director and shall remain suspended until thesuperintendent receives a new certification from the director.

(3) The applicant constitutes an appropriate mechanism toeffectively provide or arrange for the provision of the basic healthcare services, supplemental health care services, or specialty health careservices to be provided to enrollees.

(4) The applicant is financially responsible, complieswith section 1751.28 of the RevisedCode, and may reasonably be expected to meet its obligations toenrollees and prospectiveenrollees. In making this determination, the superintendent mayconsider:

(a) The financial soundness of the applicant's arrangements forhealth care services, including the applicant's proposed contractualperiodic prepayments or premiums and the use of copayments and deductibles;

(c) Any agreement withan insurer, a government, or any other person for insuring thepayment of the cost of health care services or providing forautomatic applicability of an alternative coverage in the eventof discontinuance of the health insuring corporation'soperations;

(d) Any agreement with providers or health care facilities forthe provision of health care services;

(e) Any deposit ofsecurities submitted in accordance with section 1751.27 of theRevised Code as a guarantee that the obligations will beperformed.

(5) The applicant has submitted documentation of anarrangement to provide health care services to its enrolleesuntil the expiration of the enrollees' contracts with theapplicant if a health care plan or the operations of the healthinsuring corporation are discontinued prior to the expiration ofthe enrollees' contracts. An arrangement to provide health careservices may be made by using any one, or any combination, ofthe following methods:

(b) A provision incontracts with providers and health care facilities, but no health insuringcorporation shall rely solely on such aprovision for more than thirty days;

(c) An agreement withother health insuring corporations or insurers, providingenrollees with automatic conversion rights upon thediscontinuation of a health care plan or the health insuringcorporation's operations;

(6) Nothing in the applicant's proposed method ofoperation, as shown by the information submitted pursuant tosection 1751.03 of the RevisedCode or by independentinvestigation, will cause harm to an enrollee or to the publicat large, as determined by the superintendent.

(8) The applicant has deposited securities as set forthin section 1751.27 of the Revised Code.

~~(B)~~(C) If an applicantelects to fulfill the requirements of division(A)(5) of this section throughan agreement with other health insuring corporations orinsurers, the agreement shall require those health insuringcorporations or insurers to give thirty days' notice to thesuperintendent prior to cancellation or discontinuation of theagreement for any reason.

~~(C)~~(D) A certificate ofauthority shall be denied only after compliance with therequirements of section 1751.36 of the Revised Code.

Sec. 1751.271. (A) Each health insuring corporation that provides coverage to medicaid recipients shall post a performance bond in the amount of three million dollars as security to fulfill the obligations of the health insuring corporation to pay claims of contracted providers for covered health care services provided to medicaid recipients. The bond shall be payable to the department of insurance in the event that the health insuring corporation is placed in rehabilitation or liquidation proceedings under Chapter 3903. of the Revised Code, and shall become a special deposit subject to section 3903.14 or 3903.421 of the Revised Code, as applicable. In lieu of the performance bond, a medicaid health insuring corporation may deposit securities with the superintendent of insurance, acceptable to the superintendent, in the amount of three million dollars, to satisfy the bonding requirements of this section. Upon rehabilitation or liquidation, the securities shall become a special deposit subject to sections 3903.14 and 3903.421 of the Revised Code, as applicable. The health insuring corporation shall receive the interest on the deposited securities as long as the health insuring corporation remains solvent.

(B) The bond shall be issued by a surety company licensed with the department of insurance. The bond or deposit, or any replacement bond or deposit, shall be in a form acceptable to the superintendent, and shall remain in effect during the duration of the medicaid health insuring corporation's license and thereafter until all claims against the medicaid health insuring corporation have been paid in full.

(C) Documentation of the bond acceptable to the superintendent of insurance shall be filed with the superintendent prior to the issuance of a certificate of authority. Annually, thirty days prior to the renewal of its certificate of authority, every medicaid health insuring corporation shall furnish the superintendent of insurance with evidence that the required bond is still in effect.

(1) "Contracted provider" means a provider that has a contract with a medicaid health insuring corporation to provide covered health care services to medicaid recipients.

(2) "Medicaid health insuring corporation" means a health insuring corporation that provides health insurance coverage or otherwise assumes claims liabilities for medicaid recipients.

(3) "Medicaid recipient" means a person eligible for assistance under the medicaid program operated pursuant to Chapter 5111. of the Revised Code.

Sec. 1901.26. (A) Subject to division (E) of thissection,costs in a municipal court shall be fixed and taxed as follows:

(1) The municipal court shall require an advance depositforthe filing of any new civil action or proceeding whenrequired bydivision (A)(9) of this section, and in all othercases, by rule,shall establish a schedule of fees and costs tobe taxed in anycivil or criminal action or proceeding.

(2) The municipal court, by rule, may require an advancedeposit for the filing of any civil action or proceeding andpublication fees as provided in section 2701.09 of the RevisedCode. The court may waive the requirement for advance depositupon affidavit or other evidence that a party is unable tomakethe required deposit.

(3) When a jury trial is demanded in any civil action orproceeding, the party making the demand may be required to makeanadvance deposit as fixed by rule of court, unless, uponaffidavitor other evidence, the court concludes that the partyis unable tomake the required deposit. If a jury iscalled, the fees of ajury shall be taxed as costs.

(4) In any civil or criminal action or proceeding,witnesses' fees shall be fixed in accordance with sections2335.06and 2335.08 of the Revised Code.

(5) A reasonable charge for driving, towing, carting,storing, keeping, and preserving motor vehicles and otherpersonalproperty recovered or seized in any proceeding may betaxed aspart of the costs in a trial of the cause, in anamount that shallbe fixed by rule of court.

(6) Chattel property seized under any writ or processissuedby the court shall be preserved pending final dispositionfor thebenefit of all persons interested and may be placed instoragewhen necessary or proper for that preservation. Thecustodian ofany chattel property so stored shall not be requiredto part withthe possession of the property until a reasonablecharge, to befixed by the court, is paid.

(7) The municipal court, as it determines, may refund alldeposits and advance payments of fees and costs,including thosefor jurors and summoning jurors, whenthey have been paid by thelosing party.

(8) Charges for the publication of legal notices requiredbystatute or order of court may be taxed as part of the costs,asprovided by section 7.13 of the Revised Code.

(B)(1) The municipal court may determine that, for theefficientoperation of the court, additional funds are necessaryto acquire and pay forspecial projects of the court including,but not limited to, the acquisitionof additional facilities orthe rehabilitation of existing facilities, theacquisition ofequipment, the hiring and training of staff, community serviceprograms, mediation or dispute resolution services, the employmentofmagistrates, the training and education of judges, actingjudges, andmagistrates, and other related services. Upon thatdetermination,the courtby rule may charge a fee, in addition toall othercourt costs, on the filing of each criminal cause, civilaction or proceeding,or judgment by confession.

If the municipal court offers a special program or service incases of aspecific type, the municipal court by rule may assessan additional charge ina case of that type, over and above courtcosts, to cover the special programor service. The municipalcourt shall adjust the special assessmentperiodically,but notretroactively, so that the amount assessed in those cases does notexceed the actual cost of providing the service or program.

All moneys collected under division (B)of this section shallbe paid to the county treasurer if the court is acounty-operatedmunicipal court or to the city treasurer if the court is not acounty-operated municipal court for deposit into eithera generalspecial projects fund or a fund established for a specific specialproject. Moneys from a fund of that nature shall be disbursedupon an orderof the court in an amount no greater than the actualcost to the court of aproject. If a specific fund is terminatedbecause of the discontinuance of aprogram or service establishedunder division(B) of this section, the municipal court mayorderthat moneys remaining in the fund be transferred to an accountestablished under this division for a similar purpose.

(a)"Criminal cause" means a charge alleging the violationofastatute or ordinance, or subsection of a statute orordinance,that requires aseparate finding of fact or a separateplea beforedisposition and of whichthe defendant may be foundguilty,whether filed as part of a multiple chargeon a singlesummons,citation, or complaint or as a separate charge on asinglesummons, citation, or complaint."Criminal cause" does notincludeseparateviolations of the same statute or ordinance, orsubsection of the same statuteor ordinance, unless each charge isfiled on a separate summons, citation, orcomplaint.

(b)"Civil action or proceeding" means any civil litigationthatmust be determined by judgment entry.

(C)The municipalcourt shallcollect in all its divisionsexcept the small claimsdivision thesum of ~~fifteen~~ twenty-six dollars asadditional filing fees ineach new civilaction or proceeding forthe charitable publicpurpose ofproviding financial assistance tolegal aid societiesthat operatewithin the state and to support the office of the state public defender.The municipalcourt shall collect in its smallclaims divisionthe sum of ~~seven~~ elevendollars as additional filingfees in each newcivil action orproceeding for the charitablepublic purpose ofprovidingfinancial assistance to legal aidsocieties that operatewithinthe state and to support the office of the state public defender. This division does notapply to any executionon ajudgment, proceeding in aid ofexecution, or otherpost-judgmentproceeding arising out of acivil action. Thefiling feesrequired to be collected underthis division shall bein additionto any other court costsimposed in the action orproceeding andshall be collected at thetime of the filing of theaction orproceeding. The court shallnot waive the payment oftheadditional filing fees in a newcivil action or proceedingunlessthe court waives the advancedpayment of all filing fees intheaction or proceeding. All suchmoneys collected during a month shall be transmitted on or beforethe~~first business~~ twentieth day of ~~each~~ the followingmonth by the clerk of the court tothetreasurer of state in a manner prescribed by the treasurer of state or by the Ohio legal assistance foundation. The~~moneys then shall be deposited by the~~treasurer of state shall deposit four per cent of the funds collected under this division to the credit of the civil case filing fee fund established under section 120.07 of the Revised Code and ninety-six per cent of the funds collected under this division to thecredit of the legal aid fund establishedunder section 120.52 ofthe Revised Code.

The court may retain up to one per cent of the moneys itcollects under this division to cover administrative costs,including the hiring of any additional personnel necessary toimplement this division.

(D) In the Cleveland municipal court, reasonable chargesforinvestigating titles of real estate to be sold or disposed ofunder any writ or process of the court may be taxed as part ofthecosts.

(E) Under the circumstances described in sections 2969.21to2969.27 of the Revised Code, the clerk of the municipal courtshall chargethe fees and perform the other duties specified inthose sections.

Sec. 1901.31. The clerk and deputy clerks of a municipalcourt shall be selected, be compensated, give bond, and havepowers and duties as follows:

(1)(a) Except in the Akron, Barberton, CuyahogaFalls,~~Medina,~~ Toledo, Hamiltoncounty, Portage county,and Wayne county municipal courts, if thepopulation of theterritory equals or exceeds one hundredthousand at the regularmunicipal election immediately preceding theexpiration of theterm of the present clerk, the clerk shall benominated andelected by the qualified electors of the territoryin the mannerthat is provided for the nomination and election ofjudges insection 1901.07 of the Revised Code.

The clerk so elected shall hold office for a term of sixyears, which term shall commence on the first day of Januaryfollowing theclerk's election and continue until the clerk'ssuccessor is electedand qualified.

(b) In the Hamilton county municipal court, the clerk ofcourts of Hamilton county shall be the clerk of the municipalcourt and may appoint an assistant clerk who shall receive thecompensation, payable out of the treasury of Hamilton county insemimonthly installments, that the board of county commissionersprescribes. The clerk of courts of Hamilton county, acting astheclerk of the Hamilton county municipal court and assuming theduties of that office, shall receive compensation at one-fourththe rate that is prescribed for the clerks of courts of commonpleas as determined in accordance with the population of thecounty and the rates set forth in sections 325.08 and 325.18 ofthe Revised Code. This compensation shall be paid from thecountytreasury in semimonthly installments and is in addition totheannual compensation that is received for the performance oftheduties of the clerk of courts of Hamilton county, as providedinsections 325.08 and 325.18 of the Revised Code.

(c) In the Portage county and Wayne county municipalcourts,the clerks of courts of Portage county and Wayne countyshall bethe clerks, respectively, of the Portage county andWayne countymunicipal courts and may appoint a chief deputyclerk for eachbranch that is established pursuant to section1901.311 of theRevised Code and assistant clerks as the judgesof the municipalcourt determine are necessary, all of whom shallreceive thecompensation that the legislative authorityprescribes. Theclerks of courts of Portage county and Waynecounty, acting as theclerks of the Portage county and Waynecounty municipal courts andassuming the duties of these offices,shall receive compensationpayable from the county treasury in semimonthlyinstallments atone-fourth the rate that is prescribed for the clerks ofcourts ofcommon pleas as determined in accordance with the population ofthecounty and the rates set forth in sections 325.08 and 325.18of the RevisedCode.

(d) Except as otherwise provided in division (A)(1)(d) ofthis section, in the Akron municipal court, candidates forelection to the office of clerk of the court shall be nominatedbyprimary election. The primary election shall be held on thedayspecified in the charter of the city of Akron for thenominationof municipal officers. Notwithstanding section3513.257 of theRevised Code, the nominating petitions ofindependent candidatesshall be signed by at least two hundredfifty qualified electorsof the territory of the court.

The candidates shall file a declaration of candidacy andpetition, or a nominating petition, whichever is applicable, notlater than four p.m. of the seventy-fifth day before the day ofthe primary election, in the form prescribed by section 3513.07or3513.261 of the Revised Code. The declaration of candidacyandpetition, or the nominating petition, shall conform to theapplicable requirements of section 3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filedbyany person for nomination as a candidate of a particularpoliticalparty for election to the office of clerk of the Akronmunicipalcourt, a primary election shall not be held for thepurpose ofnominating a candidate of that party for election tothat office.If only one person files a valid declaration ofcandidacy andpetition for nomination as a candidate of aparticular politicalparty for election to that office, a primaryelection shall not beheld for the purpose of nominating acandidate of that party forelection to that office, and thecandidate shall be issued acertificate of nomination in themanner set forth in section3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, and certificates of nomination for the office of clerkof the Akron municipal court shall contain a designation of theterm for which the candidate seeks election. At the followingregular municipal election, all candidates for the office shallbesubmitted to the qualified electors of the territory of thecourtin the manner that is provided in section 1901.07 of theRevisedCode for the election of the judges of the court. Theclerk soelected shall hold office for a term of six years, whichtermshall commence on the first day of January following the clerk'selection and continue until the clerk's successor is elected andqualified.

(e) Irrespective of the population of the territory of theMedina municipal court, the clerk of that court shall be appointedpursuant to division (A)(2)(a) of this section by thejudges ofthat court, shall hold office until the clerk's successor issimilarly appointed and qualified, and shall receive pursuant todivision(C) of this section the annual compensation that thelegislativeauthority prescribes and that is payable insemimonthly installments from thesame sources and in the samemanner as provided in section 1901.11 of theRevised Code.

~~(f)~~ Except as otherwise provided in division(A)(1)~~(f)~~(e) ofthissection, in the Barberton municipal court, candidates forelectionto the office of clerk of the court shall be nominated byprimaryelection. The primary election shall be held on the dayspecifiedin the charter of the city of Barberton for thenomination ofmunicipal officers. Notwithstanding section3513.257 of theRevised Code, the nominating petitions ofindependentcandidates shall be signed by at least two hundredfifty qualifiedelectors of the territory of the court.

The candidates shall file a declaration of candidacy andpetition,or a nominating petition, whichever is applicable, notlater thanfour p.m. of the seventy-fifth day before the day ofthe primaryelection, in the form prescribed by section 3513.07 or3513.261 ofthe Revised Code. The declaration of candidacy andpetition,or the nominating petition, shall conform to theapplicable requirements ofsection 3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filed byanyperson for nomination as a candidate of a particular politicalparty for election to the office of clerk of the Barbertonmunicipal court, a primary election shall not be held for thepurpose ofnominating a candidateof that party for election tothat office. If only one person files a validdeclaration ofcandidacy and petition for nomination as a candidate of aparticular political party for election to that office, a primaryelection shall not be held for the purpose of nominating acandidate of that party for election to that office, and thecandidate shall be issued a certificate of nomination in themanner set forth in section 3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, andcertificates of nomination for the office of clerkof theBarberton municipal court shall contain a designation ofthe termfor which the candidate seeks election. At the followingregular municipalelection, allcandidates for the office shall besubmitted to the qualified electors of theterritory of thecourtin the manner that is provided in section 1901.07 of theRevisedCode for the election of the judges of the court. The clerk soelected shall hold office for a term of six years, whichtermshall commence on the first day of January following theclerk'selection and continue until the clerk's successor is elected andqualified.

~~(g)~~(f) Except as otherwise provided in division(A)(1)~~(g)~~(f) ofthissection, in the Cuyahoga Falls municipal court, candidatesforelection to the office of clerk of the court shall benominated by primaryelection. The primary election shall be heldon the day specified in thecharter of the city of Cuyahoga Fallsfor the nomination ofmunicipal officers. Notwithstanding section3513.257 of theRevised Code, the nominating petitions ofindependentcandidates shall be signed by at least two hundredfifty qualifiedelectors of the territory of the court.

The candidates shall file a declaration of candidacy andpetition,or a nominating petition, whichever is applicable, notlater thanfour p.m. of the seventy-fifth day before the day ofthe primaryelection, in the form prescribed by section 3513.07 or3513.261 ofthe Revised Code. The declaration of candidacy andpetition, orthe nominating petition,shall conform to theapplicable requirements of section3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filed byanyperson for nomination as a candidate of a particular politicalparty for election to the office of clerk of the CuyahogaFallsmunicipal court, a primary election shall not be held for thepurpose of nominating a candidate of that party for election tothat office. If only one person files a valid declaration ofcandidacy and petition for nomination as a candidate of aparticular political party for election to that office, a primaryelection shall not be held for the purpose of nominating acandidate of that party for election to that office, and thecandidate shall be issued a certificate of nomination in themanner set forth in section 3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, andcertificates of nomination for the office of clerkof the CuyahogaFalls municipal court shall contain a designationof the term forwhich the candidate seeks election. At thefollowing regular municipalelection, all candidates for theoffice shall be submitted to thequalified electors of theterritory of the court in the mannerthat is provided in section1901.07 of the Revised Code fortheelection of the judges of thecourt. The clerk so elected shall hold officefora term of sixyears, which term shall commence on the first day ofJanuaryfollowing the clerk's election and continue until theclerk'ssuccessor is elected and qualified.

~~(h)~~(g) Except as otherwise provided in division(A)(1)~~(h)~~(g) ofthissection, in the Toledo municipal court, candidates forelectionto the office of clerk of the court shall be nominated byprimaryelection. The primary election shall be held on the dayspecifiedin the charter of the city of Toledo for the nominationofmunicipal officers. Notwithstanding section 3513.257 of theRevised Code, the nominating petitions of independentcandidatesshall be signed by at least two hundred fifty qualifiedelectorsof the territory of the court.

The candidates shall file a declaration of candidacy andpetition,or a nominating petition, whichever is applicable, notlater thanfour p.m. of the seventy-fifth day before the day ofthe primaryelection, in the form prescribed by section 3513.07 or3513.261 ofthe Revised Code. The declaration of candidacy andpetition,or the nominating petition, shall conform to theapplicable requirements ofsection 3513.05 or 3513.257 of theRevised Code.

If no valid declaration of candidacy and petition is filed byanyperson for nomination as a candidate of a particular politicalparty for election to the office of clerk of the Toledo municipalcourt, a primary election shall not be held for the purpose ofnominating a candidateof that party for election to that office.If only one person files a validdeclaration ofcandidacy andpetition for nomination as a candidate of aparticular politicalparty for election to that office, a primaryelection shall not beheld for the purpose of nominating acandidate of that party forelection to that office, and thecandidate shall be issued acertificate of nomination in themanner set forth in section3513.02 of the Revised Code.

Declarations of candidacy and petitions, nominatingpetitions, andcertificates of nomination for the office of clerkof theToledo municipal court shall contain a designation of thetermfor which the candidate seeks election. At the followingregular municipalelection, allcandidates for the office shall besubmitted to the qualified electors of theterritory of thecourtin the manner that is provided in section 1901.07 of theRevisedCode for the election of the judges of the court. The clerk soelected shall hold office for a term of six years, whichtermshall commence on the first day of January following theclerk'selection and continue until the clerk's successor is elected andqualified.

(2)(a) Except for the Alliance, Auglaize county,Browncounty, Columbianacounty, Lorain,Massillon, and Youngstownmunicipal courts, in amunicipal courtfor which the population ofthe territory is lessthan one hundred thousand ~~and in the Medinamunicipal court~~, theclerk shallbe appointed by the court, andthe clerk shall holdoffice untilthe clerk's successor isappointed and qualified.

(b) In the Alliance, Lorain, Massillon, and Youngstownmunicipal courts, the clerk shall be elected for a term of officeas described in division (A)(1)(a) of this section.

(c) In the Auglaize countyand Brown countymunicipalcourts, theclerks ofcourts of Auglaizecountyand Browncounty shall be theclerks,respectively, of theAuglaizecounty and Brown county municipalcourts and may appoint achief deputy clerkfor each branch thatisestablished pursuant tosection 1901.311of the Revised Code,andassistant clerks as thejudge of thecourt determines arenecessary, all of whom shallreceive thecompensation that thelegislative authorityprescribes. Theclerks of courts ofAuglaizecountyandBrown county, acting as theclerks of the Auglaize countyand Browncountymunicipalcourtsand assuming theduties ofthese offices, shallreceive compensationpayable fromthe county treasury in semimonthlyinstallments atone-fourth therate that is prescribed for the clerks ofcourts ofcommon pleasas determined in accordance with the population ofthecounty andthe rates set forth in sections 325.08 and 325.18of the RevisedCode.

(d) In the Columbiana county municipal court, the clerk ofcourts ofColumbiana county shall be theclerk of the municipalcourt, may appoint a chief deputyclerk for each branch officethat is established pursuant to section1901.311 of the RevisedCode, and may appoint any assistant clerks thatthe judges of thecourt determine are necessary. All of the chief deputyclerks andassistant clerks shall receive the compensation that thelegislative authority prescribes. The clerk of courts ofColumbiana county, acting asthe clerk of the Columbianacountymunicipal court and assuming the duties of that office,shallreceive compensation payable from the county treasury insemimonthly installments at one-fourth the rate that isprescribedfor the clerks of courts of common pleas asdetermined inaccordance with the population of the county andthe rates setforth in sections 325.08 and 325.18 of theRevised Code.

(3) During the temporary absence of the clerk due toillness, vacation, or other proper cause, the court may appoint atemporary clerk, who shall be paid the same compensation,havethesame authority, and perform the same duties as the clerk.

(B) Except in the Hamilton county,~~Medina,~~Portage county, and Wayne county municipal courts, if a vacancyoccurs in the office of the clerk of the Alliance, Lorain,Massillon, or Youngstown municipal court or occurs in the officeof the clerk of a municipal court for which the population of theterritory equals or exceeds one hundred thousand because theclerkceases to hold the office before the end of the clerk's term orbecause a clerk-elect fails to take office, the vacancy shall befilled, until a successor is elected and qualified, by a personchosen by the residents of the territory of the court who aremembers of the county central committee of the political party bywhich the last occupant of that office or the clerk-elect wasnominated. Not less than five nor more than fifteen days after avacancy occurs, those members of that county central committeeshall meet to make an appointment to fill the vacancy. At leastfour days before the date of the meeting, the chairperson or asecretary of the county central committee shall notify each suchmember of that county central committee by first classmail of thedate, time, and placeof the meeting and its purpose. A majorityof all such members ofthat county central committee constitutes aquorum, and amajority of the quorum isrequired to make theappointment. If the office so vacated wasoccupied or was to beoccupied by a person not nominated at aprimary election, or ifthe appointment was not made by thecommittee members inaccordance with this division, the courtshall make an appointmentto fill the vacancy. A successor shallbe elected to fill theoffice for the unexpired term at the firstmunicipal election thatis held more than one hundred twenty daysafter the vacancyoccurred.

(C)(1) In a municipal court, other than the Auglaize county,the Brown county,the Columbiana county, andthe Lorain municipalcourts,for whichthe population of theterritory isless than onehundred thousand~~and in the Medinamunicipalcourt~~, the clerk ofthe municipalcourtshall receivethe annual compensation that thepresidingjudge of the courtprescribes, if the revenue of thecourt for thepreceding calendaryear, ascertified by the auditoror chieffiscal officer of themunicipal corporationin which thecourt islocated or, in thecase of a county-operated municipalcourt, thecounty auditor, isequal to or greater than theexpenditures,including any debtcharges, for the operation of thecourt payableunder thischapterfrom the city treasury or, in thecase of acounty-operatedmunicipalcourt, the county treasury forthatcalendar year, asalso certified by theauditor or chieffiscalofficer. If therevenue of a municipal court, otherthantheAuglaize county,theBrown county, the Columbiana county, andtheLorain municipalcourts, for whichthe population of theterritoryis less than onehundred thousand ~~or therevenue of theMedinamunicipal court~~ forthe preceding calendar yearas socertified isnot equal to orgreater than those expenditures fortheoperationof the court forthat calendar year as so certified,the clerk ofamunicipal courtshall receive the annualcompensation that thelegislativeauthority prescribes. As usedin this division,"revenue" meansthe total of all costs and feesthat are collectedand paid to thecitytreasury or, in acounty-operated municipalcourt, the countytreasury by theclerkof the municipal courtunder division (F) ofthis section andallinterest received andpaid to the citytreasury or, in acounty-operatedmunicipalcourt, the countytreasury in relationto the costs and fees underdivision (G) ofthis section.

(2) Ina municipal court, other than theHamilton county, ~~Medina,~~ Portagecounty, and Waynecountymunicipal courts, for which the population of the territoryis onehundred thousand or more, and in the Lorain municipal court, theclerk of the municipal courtshall receive annual compensation ina sum equal to eighty-fiveper cent of the salary of a judge ofthe court.

(3) The compensationof a clerk described in division (C)(1)or (2) of thissection is payable in semimonthly installments fromthe same sources andin the same manner as provided in section1901.11 of the RevisedCode.

(D) Before entering upon the duties of the clerk's office,theclerk of a municipal court shall give bond of not less thansixthousand dollars to be determined by the judges of the court,conditioned upon the faithful performance of the clerk's duties.

(E) The clerk of a municipal court may do all of thefollowing: administer oaths, take affidavits, and issueexecutions upon any judgment rendered in the court, including ajudgment for unpaid costs; issue, sign, and attach the seal ofthecourt to all writs, process, subpoenas, and papers issuingout ofthe court; and approve all bonds, sureties, recognizances,andundertakings fixed by any judge of the court or by law. The clerkmayrefuse to accept for filing any pleading or paper submittedfor filing by aperson who has been found to be a vexatiouslitigator under section 2323.52of the Revised Code and who hasfailed to obtain leave to proceed under thatsection. The clerkshall do all of the following: file and safely keep alljournals,records, books, and papers belonging or appertaining tothe court;record the proceedings of the court; perform all otherduties thatthe judges of the court may prescribe; and keep abook showing allreceipts and disbursements, which book shall beopen for publicinspection at all times.

The clerk shall prepare and maintain a general index, adocket, and other records that the court, by rule, requires, allof which shall be the public records of the court. In thedocket,the clerk shall enter, at the time of the commencement ofanaction, the names of the parties in full, the names of thecounsel, and the nature of the proceedings. Under proper dates,the clerk shall note the filing of the complaint, issuing ofsummons orother process, returns, and any subsequent pleadings.The clerkalso shall enter all reports, verdicts, orders,judgments, andproceedings of the court, clearly specifying therelief grantedor orders made in each action. The court may orderan extendedrecord of any of the above to be made and entered,under theproper action heading, upon the docket at the request ofanyparty to the case, the expense of which record may be taxed ascosts in the case or may be required to be prepaid by the partydemanding the record, upon order of the court.

(F) The clerk of a municipal court shall receive, collect,and issue receipts for all costs, fees, fines, bail, and othermoneys payable to the office or to any officer of the court. Theclerkshall each month disburse to the proper persons or officers,andtake receipts for, all costs, fees, fines, bail, and othermoneysthat the clerk collects. Subject to sections 3375.50 and4511.193ofthe Revised Code and to any other section of theRevised Codethat requires a specific manner of disbursement ofany moneysreceived by a municipal court and except for theHamilton county,Lawrence county, and Ottawa county municipalcourts, the clerk shall pay allfines received for violation ofmunicipal ordinances into thetreasury of the municipalcorporation the ordinance of which wasviolated and shall pay allfines received for violation oftownship resolutions adoptedpursuant to Chapter 504. of theRevised Code into the treasury ofthe township the resolution ofwhich was violated. Subject tosections 1901.024 and 4511.193 ofthe Revised Code, in theHamilton county, Lawrence county, and Ottawa countymunicipalcourts, the clerk shall pay fifty per cent of the finesreceivedfor violation of municipal ordinances and fifty per centof thefines received for violation of township resolutionsadoptedpursuant to Chapter 504. of the Revised Code into thetreasury ofthe county. Subject to sections 3375.50, 3375.53,4511.19, and5503.04 of the Revised Code and to any other sectionof theRevised Code that requires a specific manner ofdisbursement ofany moneys received by a municipal court, theclerk shall pay allfines collected for the violation of statelaws into the countytreasury. Except in a county-operatedmunicipal court, the clerkshall pay all costs and fees thedisbursement of which is nototherwise provided for in theRevisedCode into the city treasury.The clerk of acounty-operatedmunicipal court shall pay the costsand fees thedisbursement ofwhich is not otherwise provided forin theRevised Code into thecounty treasury. Moneys deposited assecurity for costs shall beretained pending the litigation. Theclerk shall keep a separateaccount of all receipts anddisbursements in civil and criminalcases, which shall be apermanent public record of the office. Onthe expiration of theterm of the clerk, the clerk shall deliverthe records to theclerk'ssuccessor. The clerk shall have otherpowers and dutiesas are prescribed byrule or order of the court.

(G) All moneys paid into a municipal court shall be notedonthe record of the case in which they are paid and shall bedeposited in a state or national bank, or a domestic savings andloan association, as defined in section 1151.01 of the RevisedCode, that is selected by the clerk. Any interest received uponthe deposits shall be paid into the city treasury, except that, ina county-operated municipal court, the interest shall be paidintothe treasury of the county in which the court is located.

On the first Monday in January of each year, the clerkshallmake a list of the titles of all cases in the court thatwerefinally determined more than one year past in which thereremainsunclaimed in the possession of the clerk any funds, orany part ofa deposit for security of costs not consumed by thecosts in thecase. The clerk shall give notice of the moneys tothe partieswho are entitled to the moneys or to their attorneysof record.All the moneys remaining unclaimed on the first dayof April ofeach year shall be paid by the clerk to the citytreasurer, exceptthat, in a county-operated municipal court, themoneys shall bepaid to the treasurer of the county in which thecourt is located.The treasurer shall pay any part of themoneys at any time to theperson who has the right to themoneys upon proper certificationof the clerk.

(H) Deputy clerks may be appointed by the clerk and shallreceive the compensation, payable in semimonthly installments outof the city treasury, that the clerk may prescribe, except thatthe compensation of any deputy clerk of a county-operatedmunicipal court shall be paid out of the treasury of the countyinwhich the court is located. Each deputy clerk shall take anoathof office before entering upon the duties of the deputy clerk'sofficeand, when so qualified, may perform the duties appertainingto theoffice of the clerk. The clerk may require any of thedeputyclerks to give bond of not less than three thousanddollars,conditioned for the faithful performance of the deputyclerk's duties.

(I) For the purposes of this section, whenever thepopulation of the territory of a municipal court falls below onehundred thousand but not below ninety thousand, and thepopulationof the territory prior to the most recent regularfederal censusexceeded one hundred thousand, the legislativeauthority of themunicipal corporation may declare, byresolution, that theterritory shall be considered to have apopulation of at least onehundred thousand.

(J) The clerk or a deputy clerk shall be in attendance atall sessions of the municipal court, although not necessarily inthe courtroom, and may administer oaths to witnesses and jurorsand receive verdicts.

Sec. 1907.24. (A) Subject to division (C) of this section,a county courtshall fix and tax fees and costs as follows:

(1) The county court shall require an advance deposit forthe filing ofany new civil action or proceeding when required bydivision(C) of this section and, in all other cases, shallestablish aschedule of fees and costs to be taxed in any civil orcriminal action orproceeding.

(2) The county court by rule may require an advancedepositfor the filing of a civil action or proceeding and publicationfeesas provided in section 2701.09of the Revised Code. Thecourt may waive an advance deposit requirementupon thepresentation of an affidavit or other evidence thatestablishesthat a party is unable to make the requisite deposit.

(3) When a party demands a jury trial in a civil action orproceeding,the county court may require the party to make anadvance deposit as fixed byrule of court,unless the courtconcludes, on the basis of an affidavit or other evidencepresented by the party, that the party is unable to make therequisitedeposit. If a jury is called, the county court shalltax the fees of a juryas costs.

(4) In a civil or criminal action or proceeding, the countycourt shallfix the fees of witnesses in accordance with sections2335.06 and 2335.08 ofthe Revised Code.

(5) A county court may tax as part of the costs in a trialof the cause,in an amount fixed by rule of court, a reasonablecharge for driving, towing,carting, storing, keeping,andpreserving motor vehicles and other personal property recovered orseizedin a proceeding.

(6) The court shall preserve chattel property seized under awrit orprocess issued by the court pending final disposition forthe benefit of allinterested persons. The court may place thechattel property in storage whennecessary or proper for itspreservation. The custodian of chattel propertyso stored shallnot be required to part with the possession of the propertyuntila reasonable charge, to be fixed by the court, is paid.

(7) The county court, as it determines, may refund alldeposits andadvance payments of fees and costs, including thosefor jurors and summoning jurors, when they have been paid bythelosing party.

(8) The court may tax as part of costs charges for thepublication oflegal notices required by statute or order ofcourt, as provided by section7.13 of the Revised Code.

(B)(1) The county court may determine that, for theefficientoperation of the court, additional funds are necessaryto acquire and pay forspecial projects of the court including,but not limited to, the acquisitionof additional facilities orthe rehabilitation of existing facilities, theacquisition ofequipment, the hiring and training of staff, community serviceprograms, mediation or dispute resolution services, the employmentofmagistrates, the training and education of judges, actingjudges, andmagistrates, and other related services. Upon thatdetermination,the courtby rule may charge a fee, in addition toall othercourt costs, on the filing of each criminal cause, civilaction or proceeding,or judgment by confession.

If the county court offers a special program or service incases of aspecific type, the county court by rule may assess anadditional charge in acase of that type, over and above courtcosts, to cover the special program orservice. The county courtshall adjust the special assessment periodically,but notretroactively, so that the amount assessed in those cases does notexceed the actual cost of providing the service or program.

All moneys collected under division (B)of this section shallbe paid to the county treasurer for deposit into eithera generalspecial projects fund or a fund established for a specific specialproject. Moneys from a fund of that nature shall be disbursedupon an orderof the court in an amount no greater than the actualcost to the court of aproject. If a specific fund is terminatedbecause of the discontinuance of aprogram or service establishedunder division(B) of this section, the county court mayorderthat moneys remaining in the fund be transferred to an accountestablished under this division for a similar purpose.

(a)"Criminal cause" means a charge alleging the violationofastatute or ordinance, or subsection of a statute orordinance,that requires aseparate finding of fact or a separateplea beforedisposition and of whichthe defendant may be foundguilty,whether filed as part of a multiple chargeon asinglesummons,citation, or complaint or as a separate charge on asinglesummons, citation, or complaint."Criminal cause" does notincludeseparateviolations of the same statute or ordinance, orsubsection of the same statuteor ordinance, unless each charge isfiled on a separate summons, citation, orcomplaint.

(b)"Civil action or proceeding" means any civil litigationthatmust be determined by judgment entry.

(C) Subject to division (E) of this section,the countycourtshall collect in all its divisions except thesmall claimsdivision the sum of ~~fifteen~~ twenty-six dollars as additionalfiling fees ineach new civil action or proceeding for thecharitable publicpurpose of providing financial assistance tolegal aid societiesthat operate within the state and to support the office of the state public defender. Subject todivision (E) ofthissection, the county court shall collect in its smallclaimsdivision the sum of ~~seven~~ eleven dollars as additional filingfeesineach new civil action or proceeding for the charitablepublicpurpose of providing financial assistance to legal aidsocietiesthat operate within the state and to support the office of the state public defender. This division does notapply toany execution on a judgment, proceeding in aid ofexecution, orother post-judgment proceeding arising out of acivil action. Thefiling fees required to be collected underthis division shall bein addition to any other court costsimposed in the action orproceeding and shall be collected at thetime of the filing of theaction or proceeding. The court shallnot waive the payment ofthe additional filing fees in a newcivil action or proceedingunless the court waives the advancedpayment of all filing fees inthe action or proceeding. All suchmoneys collected during amonth shall be transmitted on orbefore the twentieth day ofthefollowingmonth by the clerk of the court to the treasurer ofstate in a manner prescribed by the treasurer of state or by the Ohio legal assistance foundation. The~~moneys then shall be deposited by the~~ treasurer ofstate shall deposit four per cent of the funds collected under this division to the credit of the civil case filing fee fund established under section 120.07 of the Revised Code and ninety-six per cent of the funds collected under this division to thecredit of the legal aid fund established undersection 120.52 ofthe Revised Code.

(D) The county court shall establish by rule a schedule offeesfor miscellaneous services performed by the county court orany of its judgesin accordance with law. If judges of the courtof common pleas performsimilar services, the fees prescribed inthe schedule shall not exceed thefees for those servicesprescribed by the court of common pleas.

(E) Under the circumstances described in sections 2969.21to2969.27 of the Revised Code, the clerk of the county court shallcharge thefees and perform the other duties specified in thosesections.

Sec. 2113.041. (A) The administrator of the estate recovery program established pursuant to section 5111.11 of the Revised Code may present an affidavit to a financial institution requesting that the financial institution release account proceeds to recover the cost of services correctly provided to a medicaid recipient who is subject to the estate recovery program. The affidavit shall include all of the following information:

(2) The name of any person who gave notice that the decedent was a medicaid recipient and that person's relationship to the decedent;

(B) A financial institution may release account proceeds to the administrator of the estate recovery program if all of the following apply:

(1) The decedent held an account at the financial institution that was in the decedent's name only.

(2) No estate has been, and it is reasonable to assume that no estate will be, opened for the decedent.

(3) The decedent has no outstanding debts known to the administrator of the estate recovery program.

(4) The financial institution has received no objections or has determined that no valid objections to release of proceeds have been received.

(C) If proceeds have been released pursuant to division (B) of this section and the department of job and family services receives notice of a valid claim to the proceeds that has a higher priority under section 2117.25 of the Revised Code than the claim of the estate recovery program, the department may refund the proceeds to the financial institution or pay them to the person or government entity with the claim.

(1) "Medicaid estate recovery program" means the program instituted under section 5111.11 of the Revised Code.

(2) "Permanently institutionalized individual" has the same meaning as in section 5111.11 of the Revised Code.

(3) "Person responsible for the estate" means the executor, administrator, commissioner, or person who filed pursuant to section 2113.03 of the Revised Code for release from administration of an estate.

(B) If ~~the~~ a decedent, at the time of death, was fifty-five years of age or older ~~at the time of death~~ or a permanently institutionalized individual, the person responsible for an the decedent's estate shall determine whether the decedent was, at any time during the decedent's life, a medicaid recipient ~~of medical assistance~~ under Chapter 5111. of the Revised Code. If the decedent was a medicaid recipient, the person responsible for the estate shall ~~give written notice to that effect~~ submit a properly completed medicaid estate recovery reporting form prescribed under division (D) of this section to the administrator of the medicaid estate recovery program ~~instituted under section 5111.11 of the Revised Code~~ not later than thirty days after the occurrence of any of the following:

(3) The filing of an application for release from administration or summary release from administration.

(C) The person responsible for an the estate shall mark the appropriate box on the appropriate probate form to indicate compliance with the requirements of division (B) of this section.

The probate court shall send a copy of the completed probate form to the administrator of the medicaid estate recovery program.

(D) The administrator of the estate recovery program shall prescribe a medicaid estate recovery reporting form for the purpose of division (B) of this section. The form shall require, at a minimum, that the person responsible for the estate list all of the decedent's real and personal property and other assets that are part of the decedent's estate as defined in section 5111.11 of the Revised Code. The administrator shall include on the form a statement printed in bold letters informing the person responsible for the estate that knowingly making a false statement on the form is falsification under section 2921.13 of the Revised Code, a misdemeanor of the first degree.

(E) The estate recovery program administrator shall present a claim for estate recovery to the person responsible for the estate or the person's legal representative not later than ninety days after the date on which ~~notice~~ the medicaid estate recovery reporting form is received under division (B) of this section or one year after the decedent's death, whichever is later.

Sec. 2151.282. (A) There is hereby created the Ohio court appointed special advocate/guardian ad litem (CASA/GAL) study committee consisting of five members. One member shall be a representative of the Ohio court appointed special advocate/guardian ad litem association appointed by the governor and shall be the chairperson of the committee. One member shall be a member of the Ohio juvenile judges association, appointed by the president of the senate. One member shall be a member of the Ohio state bar association appointed by the speaker of the house of representatives. One member shall be a representative of the office of the state public defender appointed by the minority leader of the senate. One member shall be a representative of the Ohio county commissioner's association appointed by the minority leader of the house of representatives. The members of the committee shall be appointed within sixty days after the effective date of this section. The committee shall do all of the following:

(1) Compile available public data associated with state and local costs of advocating on behalf of children who have been found to be abused, neglected, or dependent children;

(2) Examine the costs in counties that have established and operated an Ohio CASA/GAL association program, and the costs in counties that utilize the county public defender, joint county public defender, or court-appointed counsel, to advocate on behalf of children who have been found to be abused, neglected, or dependent children;

(3) Analyze the total cost of advocating on behalf of children who have been found to be abused, neglected, or dependent children on a per county basis and a per child served basis;

(4) Analyze the cost benefit of having an Ohio CASA/GAL association versus utilizing the county public defender, joint county public defender, or court-appointed counsel to advocate on behalf of children who have been found to be abused, neglected, or dependent children;

(5) Analyze the advocacy services provided to abused children, neglected children, or dependent children by Ohio CASA/GAL association programs versus the advocacy services provided to abused, neglected, or dependent children by county public defenders, joint county public defenders, or court-appointed counsel.

(B) The Ohio CASA/GAL association shall provide staff for the Ohio CASA/GAL study committee and shall pay for any expenses incurred by the study committee. The study committee shall meet within thirty days after the appointment of the members to the study committee.

(C) The Ohio CASA/GAL study committee shall prepare a report containing all relevant data and information that division (A) of this section requires the study committee to compile, examine, and analyze. The Ohio CASA/GAL study committee shall deliver a final copy of the report to the governor, the speaker of the house of representatives, and the president of the senate on or before July 1, 2007.

Sec. 2151.352. Achild, or the child's parents, or custodian,orany otherperson in loco parentis of ~~such~~ the child is entitled torepresentation by legal counsel at all stages of the proceedingsunder this chapter or Chapter 2152. of the Revised Code ~~and if~~. If, asanindigent person, ~~any such person~~ a party is unable toemploy counsel,the party is entitled tohave counsel provided for the person pursuant to Chapter120.of theRevised Code except in civil matters in which the juvenile court is exercising jurisdiction pursuant to division (A)(2), (3), (9), (10), (11), (12), or (13); (B)(2), (3), (4), (5), or (6); (C); (D); or (F)(1) or (2) of section 2151.23 of the Revised Code. If a party appears without counsel, thecourtshall ascertain whether the party knows of theparty's rightto counsel and ofthe party's right to be provided with counsel ifthe party is an indigentperson. The court may continue the caseto enable a party toobtain counsel or, to be represented by thecounty public defenderor the joint county public defender ~~andshall provide~~, or to be appointed counselupon request pursuant to Chapter 120. of theRevised Code.Counsel must be provided for a child not representedby thechild'sparent, guardian, or custodian. If the interestsof two or moresuch parties conflict, separate counsel shall beprovided foreach of them.

Section 2935.14 of the Revised Code applies to any childtaken into custody. The parents, custodian, or guardian of suchchild, and any attorney at law representing them or the child,shall be entitled to visit such child at any reasonable time, bepresent at any hearing involving the child, and be givenreasonable notice of such hearing.

Any report or part thereof concerning such child, which isused in the hearing and is pertinent thereto, shall for goodcauseshown be made available to any attorney at law representingsuchchild and to any attorney at law representing the parents,custodian, or guardian of such child, upon written request priorto any hearing involving such child.

Sec. 2151.416. (A) Each agency that is required bysection2151.412 of the Revised Code to prepare a case plan for achildshall complete a semiannual administrative review of thecase planno later than six months after the earlier of the dateon whichthe complaint in the case was filed or the child wasfirst placedin shelter care. After the first administrativereview, theagency shall complete semiannual administrativereviews no laterthan every six months. If the court issues anorder pursuant tosection 2151.414 or 2151.415of the RevisedCode, the agency shallcomplete an administrative review no laterthan six months afterthe court's order and continue to completeadministrative reviewsno later than every six months after thefirst review, except thatthe court hearing held pursuant tosection 2151.417 of the RevisedCode may take the place of anyadministrative review that wouldotherwise be held at the time ofthe court hearing. Whenconducting a review, the child's health and safetyshall be theparamount concern.

(B) Each administrative review required by division (A) ofthis section shall be conducted by a review panel of at leastthree persons, including, but not limited to, both of thefollowing:

(1) A caseworker with day-to-day responsibility for, orfamiliarity with, the management of the child's case plan;

(2) A person who is not responsible for the management ofthe child's case plan or for the delivery of services to thechildor the parents, guardian, or custodian of the child.

(C) Each semiannual administrative review shall include,butnot be limited to, a joint meeting by the review panel withtheparents, guardian, or custodian of the child, the guardian adlitem of the child, and the child's foster care provider andshallinclude an opportunity for those persons to submit anywrittenmaterials to be included in the case record of the child.If aparent, guardian, custodian, guardian ad litem, or fostercareprovider of the child cannot be located after reasonableeffortsto do so or declines to participate in the administrativereviewafter being contacted, the agency does not have to includethem inthe joint meeting.

(D) The agency shall prepare a written summary of thesemiannual administrative review that shall include, but not belimited to, all of the following:

(1) A conclusion regarding the safety and appropriateness ofthechild's foster care placement;

(3) The extent of progress that has been made towardalleviating the circumstances that required the agency to assumetemporary custody of the child;

(4) An estimated date by which the child may be returnedtoand safely maintained in the child's home or placed for adoptionorlegal custody;

(5) An updated case plan that includes any changes thattheagency is proposing in the case plan;

(6) The recommendation of the agency as to which agency orperson should be given custodial rights over the child for thesix-month period after the administrative review;

(E) The agency shall file the summary withthe court nolater than seven days after the completion of the administrativereview. If the agency proposes a change to the case plan as aresult ofthe administrative review, the agency shall file theproposed change with thecourt at the time it files the summary.The agency shall give notice of thesummary and proposed change inwriting before the end of the next day afterfiling them to allparties and the child's guardian ad litem. All parties andtheguardian ad litem shall have seven days after the date the noticeis sentto object to and request a hearing on the proposed change.

(1) If the court receives a timely request for a hearing,the court shallschedule a hearing pursuant to section 2151.417 ofthe Revised Code to be held not later thanthirty days after thecourt receives the request. The court shall give noticeof thedate, time, and location of the hearing to all parties and theguardianad litem. The agency may implement the proposed changeafter the hearing, ifthe court approves it. The agency shall notimplement the proposed changeunless it is approved by the court.

(2) If the court does not receive a timely request for ahearing, thecourt may approve the proposed change without ahearing. If the courtapproves the proposed change without ahearing, it shall journalize the caseplan with the change notlater than fourteen days after the change is filedwith the court.If the court does not approve the proposed change to the caseplan, it shall schedule a review hearing to be held pursuant tosection2151.417 of the Revised Code no later than thirty daysafter the expiration of thefourteen-day time period and givenotice of the date, time, and location ofthe hearing to allparties and the guardian ad litem of the child. If,despite therequirements of this division and division (D) of section2151.417of the Revised Code, the court neither approves and journalizesthe proposed changenor conducts a hearing, the agency mayimplement the proposed change notearlier than fifteen days afterit is submitted to the court.

(F) The director of job andfamily services may adoptrulespursuant to Chapter 119. of the Revised Code for procedures andstandard forms for conducting administrative reviews pursuant tothis section.

(G) The juvenile court that receives the written summaryofthe administrative review, upon determining, either from thewritten summary, case plan, or otherwise, that the custody orcarearrangement is not in the best interest of the child, mayterminate the custody of an agency and place the child in thecustody of another institution or association certifiedby thedepartment of job and family services undersection 5103.03 of theRevised Code.

(H) The department of job and family services shallreportannuallyto the public and to the general assembly on the resultsof thereview of case plans of each agency ~~and on the results ofthesummaries submitted to the department under section 3107.10 ofthe Revised Code~~. The annual report shall include anyinformationthat is required by the department, including, butnot limited to,all of the following:

(1) A statistical analysis of the administrative reviewsconducted pursuant to this section and section 2151.417 of theRevised Code;

(2) The number of children in temporary or permanentcustodyfor whom an administrative review was conducted, thenumber ofchildren whose custody status changed during theperiod, thenumber of children whose residential placementchanged during theperiod, and the number of residentialplacement changes for eachchild during the period;

(3) An analysis of the utilization of public socialservicesby agencies and parents or guardians, and theutilization of theadoption listing service of the departmentpursuant to section5103.154 of the Revised Code;

~~(4) A compilation and analysis of data submitted to thedepartment under section 3107.10 of the Revised Code~~.

Sec. 2152.43. (A) A board of countycommissioners thatprovides a detention facilityand the board of trustees of adistrict detention facilitymay apply tothe department of youthservices under section 5139.281 of the Revised Codeforassistancein defraying the cost of operating andmaintainingthefacility.The application shall bemade on formsprescribed andfurnished bythe department.

The board of county commissioners of each county thatparticipatesin a district detention facility may apply to thedepartment of youthservices for assistance in defraying thecounty's share of thecost of acquisition or construction of thefacility, as providedin section 5139.271 of the Revised Code.Application shall be madein accordance with rules adopted by thedepartment. No county shall bereimbursed for expenses incurredin the acquisition or construction of adistrictdetentionfacility that serves a district having a population ofless thanone hundred thousand.

(B)(1) Thejoint boards of countycommissioners of districtdetention facilities shall defrayall necessary expenses of thefacility not paid fromfunds made available undersection 5139.281of the Revised Code, through annual assessments oftaxes, throughgifts, or through other means.

If any county withdraws from a district under division (D) ofsection 2152.41 of the Revised Code, it shall continue tohavelevied against its tax duplicate any tax levied by the districtduring theperiod in which the county was a member of the districtfor current operating expenses, permanent improvements, or theretirement of bonded indebtedness. The levy shall continue to bea levy against the tax duplicate of the county until the timethatit expires or is renewed.

(2) The current expenses of maintaining the facility notpaidfrom funds made available under section 5139.281 of theRevisedCode or division (C) of thissection, and the cost ofordinary repairs to the facility, shall be paid byeach county inaccordance with one of the following methods as approved by thejoint board ofcountycommissioners:

(a) In proportion to the number of children from that countywhoare maintained in the facility during the year;

(b) By a levy submitted by the joint board of countycommissioners under division (A) of section 5705.19 of theRevisedCode and approved by the electors of the district;

(d) In any ~~combination of the methods for payment describedindivision (B)(2)(a), (b), or(c) of this section~~ other method agreed upon by unanimous vote of the joint board of county commissioners.

(C) When any person donates or bequeaths any realorpersonal property to a county or district detention facility, thejuvenilecourt or the trusteesof the facility may accept and usethe gift, consistent with the best interestofthe institution andthe conditions of thegift.

Sec. 2152.74. (A) As used in this section,"DNAanalysis"and "DNA specimen" have the same meanings as in section109.573 ofthe Revised Code.

(B)(1) A child who is adjudicated a delinquent child forcommitting an actlisted in division (D) of this section and whois committed to the custody ofthe department of youth services,placed in a detention facility or district detention facilitypursuant to division (A)(3) of section 2152.19 of the RevisedCode, orplaced in a school, camp, institution,or otherfacility for delinquentchildren described in division(A)(2) ofsection 2152.19 of theRevised Codeshall submit to a DNAspecimen collection procedureadministered by the director ofyouth servicesif committed to thedepartment or by the chiefadministrativeofficer of thedetention facility, districtdetention facility, school,camp, institution, or other facilityfordelinquent children towhich the child was committedor inwhich the child was placed. If thecourt commits the child tothedepartment of youth services, thedirector of youth servicesshallcause the DNA specimen to becollected from the child duringtheintake process at an institutionoperated by or under thecontrolof the department. If thecourt commits the child toor placesthe child in adetention facility, district detention facility,school, camp, institution, or otherfacility for delinquentchildren, the chief administrativeofficer of thedetentionfacility, district detention facility, school, camp,institution,or facility to whichthe child is committedor in which the childis placed shallcause theDNA specimen to be collectedfrom thechild during theintake process for thedetention facility,district detention facility, school, camp,institution, orfacility. Inaccordance with division (C) of this section,thedirector or thechief administrative officershall cause theDNAspecimen to beforwarded tothe bureau of criminal identificationandinvestigation no laterthan fifteen days after the date of thecollection of theDNA specimen. The DNA specimen shall becollectedfrom the child in accordance with division(C) of thissection.

(2) If a child is adjudicated a delinquent child forcommitting an actlisted in division (D) of this section, iscommitted toor placed in thedepartment of youthservices, adetention facility or district detention facility, or a school,camp, institution, or other facility fordelinquent children, anddoes not submit to a DNAspecimen collectionprocedure pursuant todivision (B)(1) of this section, prior to the child'srelease fromthe custody of the department ofyouth services, from the custodyof the detention facility or district detention facility, or fromthecustody of the school, camp,institution, or facility, thechildshall submit to, and thedirector of youth services or thechiefadministrator of thedetention facility, district detentionfacility, school, camp, institution, or facility towhich thechild iscommittedor in which the child was placed shalladminister, a DNA specimencollectionprocedure at the institutionoperated by or under thecontrol ofthe department of youthservices or at thedetention facility, district detentionfacility, school,camp, institution, orfacility to which thechild is committedor in which the child was placed.Inaccordancewithdivision (C) of this section, the director orthechiefadministrative officer shall cause the DNAspecimen tobeforwarded to the bureau of criminal identification andinvestigation no later than fifteen days after the date of thecollection ofthe DNA specimen. The DNA specimen shall becollected inaccordance with division (C) of this section.

(C)If the DNA specimen is collected by withdrawing bloodfrom the child or a similarly invasive procedure, a physician,registered nurse,licensed practical nurse,duly licensed clinicallaboratory technician, orother qualifiedmedical practitionershall collect in a medically approvedmannerthe DNA specimenrequired to be collected pursuant to division(B)of this section.If the DNA specimen is collected by swabbing for buccal cells or asimilarly noninvasive procedure, this section does not requirethat the DNA specimen be collected by a qualified medicalpractitioner of that nature. No later than fifteen days after thedate ofthecollection of the DNA specimen, thedirector of youthservices orthe chiefadministrative officer of thedetentionfacility, district detention facility, school, camp,institution,orother facility for delinquent children to whichthe child iscommittedor in which the child was placed shall cause the DNAspecimen to beforwarded to thebureau of criminalidentificationandinvestigation in accordancewith procedures established by thesuperintendentof the bureauunder division (H) of section 109.573ofthe Revised Code. Thebureau shall provide thespecimen vials,mailing tubes, labels,postage, and instructionneeded for thecollection andforwardingof the DNA specimen to the bureau.

(D) The director of youth services and the chiefadministrativeofficer of adetention facility, district detentionfacility, school, camp, institution, or otherfacility fordelinquentchildren shall cause a DNA specimen to becollected inaccordancewith divisions (B) and (C) of this sectionfrom eachchildin its custody who is adjudicated a delinquentchild forcommitting anyof the followingacts:

(1) A violation of section 2903.01, 2903.02,2903.11,2905.01,2907.02, 2907.03, 2907.05,2911.01, 2911.02,2911.11,or2911.12 of the Revised Code;

(2) A violation of section 2907.12 of the Revised Code as itexisted prior toSeptember 3, 1996;

(3) An attempt to commit a violation of section2903.01,2903.02, 2907.02,2907.03,or2907.05 of the Revised Code or tocommit a violationofsection 2907.12 of the Revised Code as itexisted prior toSeptember 3,1996;

(4) Aviolation of any law that arose out of the samefactsandcircumstances andsame act as did a charge against thechildof a violationof section 2903.01, 2903.02,2905.01,2907.02,2907.03,2907.05,or2911.11 of the RevisedCodethat previouslywas dismissed oramended or as did a chargeagainst thechild of aviolation ofsection 2907.12 of the RevisedCode as it existedprior toSeptember 3, 1996, that previously wasdismissed oramended;

(5) A violation of section 2905.02 or 2919.23 of theRevisedCode that would have been aviolation of section 2905.04 of theRevised Code as it existed prior to July1, 1996, had theviolation been committed prior to that date;

(6) A felony violation of any law that arose out of the samefacts and circumstances and same act as did a charge against thechild of a violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code that previously was dismissed oramended;

(7) A violation of section 2923.01 of the Revised Codeinvolving a conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(8) A violation of section 2923.03 of the Revised Codeinvolving complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

(E) The director of youth services and the chiefadministrativeofficer of adetention facility, district detentionfacility, school, camp, institution, or otherfacility fordelinquentchildren is not required to comply withthis sectioninrelation to the following acts until thesuperintendentof thebureau of criminalidentification andinvestigation gives agenciesin thejuvenilejustice system, asdefined in section ~~181.51~~ 5502.61 ofthe Revised Code,inthe stateofficial notification that thestate DNA laboratoryis prepared toaccept DNAspecimensof thatnature:

(1) A violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code;

(2) An attempt to commit a violation of section 2903.01 or2903.02 of the Revised Code;

(3) A felony violation of any law that arose out of the samefactsand circumstances and same act as did a charge against thechildof a violation of section 2903.11, 2911.01, 2911.02, or2911.12 ofthe Revised Code that previously was dismissed oramended;

(4) A violation of section 2923.01 of the Revised Codeinvolving a conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(5) A violation of section 2923.03 of the Revised Codeinvolving complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

Sec. 2303.201. (A)(1) The court of common pleas of anycounty may determine that for the efficient operation of thecourtadditional funds are required to computerize the court, tomakeavailable computerized legal research services, or to doboth.Upon making a determination that additional funds arerequired foreither or both of those purposes, the court shallauthorize anddirect the clerk of the court of common pleas tocharge oneadditional fee, not to exceed three dollars, on thefiling of eachcause of action or appeal under divisions (A),(Q), and (U) ofsection 2303.20 of the Revised Code.

(2) All fees collected under division (A)(1) of thissectionshall be paid to the county treasurer. The treasurershall placethe funds from the fees in a separate fund to bedisbursed, uponan order of the court, in an amount not greaterthan the actualcost to the court of procuring and maintainingcomputerization ofthe court, computerized legal researchservices, or both.

(3) If the court determines that the funds in the funddescribed in division (A)(2) of this section are more thansufficient to satisfy the purpose for which the additional feedescribed in division (A)(1) of this section was imposed, thecourt may declare a surplus in the fund and expend those surplusfunds for other appropriate technological expenses of the court.

(B)(1) The court of common pleas of any county maydeterminethat, for the efficient operation of the court,additional fundsare required to computerize the office of theclerk of the courtof common pleas and, upon that determination,authorize and directthe clerk of the court of common pleas tocharge an additionalfee, not to exceed ten dollars, on thefiling of each cause ofaction or appeal, on the filing,docketing, and endorsing of eachcertificate of judgment, or onthe docketing and indexing of eachaid in execution or petitionto vacate, revive, or modify ajudgment under divisions (A), (P),(Q), (T), and (U) of section2303.20 of the Revised Code.Subject to division (B)(2) of thissection, all moneys collectedunder division (B)(1) of thissection shall be paid to the countytreasurer to be disbursed,upon an order of the court of commonpleas and subject toappropriation by the board of countycommissioners, in an amountno greater than the actual cost tothe court of procuring andmaintaining computer systems for theoffice of the clerk of thecourt of common pleas.

(2) If the court of common pleas of a county makes thedetermination described in division (B)(1) of this section, theboard of county commissioners of that county may issue one ormoregeneral obligation bonds for the purpose of procuring andmaintaining the computer systems for the office of the clerk ofthe court of common pleas. In addition to the purposes stated indivision (B)(1) of this section for which the moneys collectedunder that division may be expended, the moneys additionally maybe expended to pay debt charges on and financing costs related toany general obligation bonds issued pursuant to division (B)(2)ofthis section as they become due. General obligation bondsissuedpursuant to division (B)(2) of this section are Chapter133.securities.

(C)Thecourt of common pleas shall collect the sum of~~fifteen~~ twenty-six dollarsasadditional filing fees in each new civil actionor proceedingforthe charitable public purpose of providingfinancialassistanceto legal aid societies that operate withinthe state and to support the office of the state public defender.Thisdivision does not apply to proceedings concerningannulments,dissolutions of marriage, divorces, legal separation,spousalsupport, marital property or separate propertydistribution,support, or other domestic relations matters; to ajuveniledivision of a court of common pleas; to a probatedivision of acourt of common pleas, except that the additionalfiling feesshall apply to name change, guardianship, ~~and~~ adoption, and decedents' estateproceedings; or to an execution on a judgment, proceeding in aidof execution, or other post-judgment proceeding arising out of acivil action. The filing fees required to be collected underthisdivision shall be in addition to any other filing feesimposed inthe action or proceeding and shall be collected at thetime of thefiling of the action or proceeding. The court shallnot waive thepayment of the additional filing fees in a newcivil action orproceeding unless the court waives the advancedpayment of allfiling fees in the action or proceeding. All suchmoneyscollected during a month shall be transmitted on or before thetwentieth day of the following month by the clerk of the court tothetreasurer of state in a manner prescribed by the treasurer of state or by the Ohio legal assistance foundation. The~~moneys then shall be deposited by the~~treasurer of state shall deposit four per cent of the funds collected under this division to the credit of the civil case filing fee fund established under section 120.07 of the Revised Code and ninety-six per cent of the funds collected under this division to thecredit of the legal aid fund establishedunder section 120.52 ofthe Revised Code.

(D) On and after the thirtieth day after December 9, 1994,the court ofcommon pleas shall collect the sumof thirty-twodollars as additional filing fees in each newaction or proceedingfor annulment, divorce, or dissolution ofmarriage for the purposeof funding shelters for victims ofdomestic violence pursuant tosections 3113.35 to 3113.39 of theRevised Code. The filing feesrequired to be collected underthis division shall be in additionto any other filing feesimposed in the action or proceeding andshall be collected at thetime of the filing of the action orproceeding. The court shallnot waive the payment of theadditional filing fees in a newaction or proceeding forannulment, divorce, or dissolution ofmarriage unless the courtwaives the advanced payment of allfiling fees in the action orproceeding. On or before the twentieth day ofeach month, allmoneys collected during the immediately preceding monthpursuantto this divisionshallbe deposited by the clerk of the court intothe county treasuryin the special fund used for deposit ofadditional marriagelicense fees as described in section 3113.34of the Revised Code. Upon their deposit into the fund, the moneysshall be retainedin the fund and expended only as described insection 3113.34 ofthe Revised Code.

(E)(1) The court of common pleas may determine that, for theefficient operation of the court, additional funds are necessaryto acquireand pay for special projects of the court, including,but not limited to, theacquisition of additional facilities orthe rehabilitation of existingfacilities, the acquisition ofequipment, the hiring and training of staff,community serviceprograms, mediation or dispute resolution services, theemploymentof magistrates, the training and education of judges, actingjudges, and magistrates, and other related services. Upon thatdetermination,the court by rule may charge a fee, in addition toall other court costs, onthe filing of each criminal cause, civilaction or proceeding, or judgment byconfession.

If the court of common pleas offers a special program orservice in casesof a specific type, the court by rule may assessan additional charge in acase of that type, over and above courtcosts, to cover the special program orservice. The court shalladjust the special assessment periodically, but notretroactively,so that the amount assessed in those cases does not exceed theactual cost of providing the service or program.

All moneys collected under division (E) of this section shallbepaid to the county treasurer for deposit into either a generalspecialprojects fund or a fund established for a specific specialproject. Moneysfrom a fund of that nature shall be disbursedupon an order of the court in anamount no greater than the actualcost to the court of a project. If aspecific fund is terminatedbecause of the discontinuance of a program orservice establishedunder division (E) of this section, the court mayorder thatmoneys remaining in the fund be transferred to an accountestablished under this division for a similar purpose.

(a)"Criminal cause" means a charge alleging the violationofastatute or ordinance, or subsection of a statute orordinance,that requires aseparate finding of fact or a separateplea beforedisposition and of whichthe defendant may be foundguilty,whether filed as part of a multiple chargeon a singlesummons,citation, or complaint or as a separate charge on asinglesummons, citation, or complaint."Criminal cause" does notincludeseparate violations of the same statute or ordinance, orsubsection of thesame statute or ordinance, unless each charge isfiled on a separate summons,citation, or complaint.

(b)"Civil action or proceeding" means any civil litigationthatmust be determined by judgment entry.

(1)"Chiropractic claim,""medical claim," and"optometricclaim"have the same meanings as in section2305.113 ofthe RevisedCode.

(2)"Dental claim" has the same meaning as in section2305.113 of the RevisedCode, except that it does not include anyclaim arising out of a dentaloperation or any derivative claimfor relief that arises out of a dentaloperation.

(3)"Governmental health care program" has the same meaningas insection4731.65 of the Revised Code.

(4)"Health care facility or location" means a hospital, clinic, ambulatory surgical facility, office of a health care professional or associated group of health care professionals, training institution for health care professionals, or any other place where medical, dental, or other health-related diagnosis, care, or treatment is provided to a person.

(5) "Health care professional" means any of the followingwhoprovide medical, dental, or other health-relateddiagnosis,care,or treatment:

(a) Physicians authorized under Chapter 4731. of the RevisedCode to practicemedicine and surgery or osteopathic medicine andsurgery;

(b) Registered nurses and licensed practical nurses licensedunder Chapter4723. of theRevised Code and individuals who hold a certificate of authority issued under that chapter that authorizes the practice of nursing as a certified registered nurse anesthetist, clinical nurse specialist, certified nurse-midwife, or certified nurse practitioner;

(d) Dentists and dental hygienists licensed under Chapter4715. of theRevised Code;

(e) Physical therapists, physical therapist assistants, occupational therapists, and occupational therapy assistants licensed under Chapter 4755. of theRevisedCode;

(h) Podiatrists authorized under Chapter 4731. of theRevised Code topractice podiatry;

(k) Emergency medical technicians-basic, emergency medicaltechnicians-intermediate, and emergency medicaltechnicians-paramedic, certified under Chapter 4765. of theRevised Code;

(l) Respiratory care professionals licensed under Chapter 4761. of the Revised Code;

(m) Speech-language pathologists and audiologists licensed under Chapter 4753. of the Revised Code.

(6)"Health care worker" means a person other than a healthcareprofessional who provides medical, dental, or otherhealth-related care ortreatment under the direction of a healthcare professional with the authorityto direct that individual'sactivities, includingmedical technicians, medical assistants,dental assistants,orderlies, aides, and individuals acting insimilar capacities.

(7)"Indigent and uninsured person" means a person who meetsall of thefollowing requirements:

(a) The person's income is not greater than two hundred percent of the current poverty line as defined by theUnited States office ofmanagement and budget and revised inaccordance with section 673(2) of the"Omnibus BudgetReconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, asamended.

(b) The person is not eligible to receive medical assistanceunder Chapter5111.~~, disability medical assistanceunder Chapter 5115.~~ of theRevised Code, or assistance under anyother governmental health careprogram.

(i) The person is not a policyholder, certificateholder,insured, contract holder, subscriber, enrollee, member,beneficiary, or other covered individual under a health insuranceor health care policy, contract, or plan.

(ii) The person is a policyholder, certificate holder,insured, contract holder, subscriber, enrollee, member,beneficiary, or other covered individual under a health insuranceor health care policy, contract, or plan, but the insurer,policy,contract, or plan denies coverage or is the subject ofinsolvencyor bankruptcy proceedings in any jurisdiction.

(8) "Nonprofit health care referral organization" means an entity that is not operated for profit and refers patients to, or arranges for the provision of, health-related diagnosis, care, or treatment by a health care professional or health care worker.

(9)"Operation" means any procedure that involves cutting orotherwiseinfiltrating human tissue by mechanical means, includingsurgery, lasersurgery, ionizing radiation, therapeuticultrasound, or the removal ofintraocular foreign bodies."Operation" does not include the administrationof medication byinjection, unless the injection is administered inconjunctionwith a procedure infiltrating human tissue by mechanical meansother than the administration of medicine by injection. "Operation" does not include routine dental restorative procedures, the scaling of teeth, or extractions of teeth that are not impacted.

(10)"Tort action" means a civil action fordamages forinjury, death, or loss to person or property otherthan a civilaction for damages for a breach of contract oranother agreementbetween persons or government entities.

(11)"Volunteer" means an individual who provides anymedical, dental, orother health-care related diagnosis, care, ortreatment withoutthe expectation of receiving and without receiptof any compensation or otherform of remuneration from an indigentand uninsured person,another person on behalf of an indigent anduninsured person, any health care facility or location, any nonprofit health care referral organization, or anyother person or government entity.

(12) "Community control sanction" has the same meaning as in section 2929.01 of the Revised Code.

(13) "Deep sedation" means a drug-induced depression of consciousness during which a patient cannot be easily aroused but responds purposefully following repeated or painful stimulation, a patient's ability to independently maintain ventilatory function may be impaired, a patient may require assistance in maintaining a patent airway and spontaneous ventilation may be inadequate, and cardiovascular function is usually maintained.

(14) "General anesthesia" means a drug-induced loss of consciousness during which a patient is not arousable, even by painful stimulation, the ability to independently maintain ventilatory function is often impaired, a patient often requires assistance in maintaining a patent airway, positive pressure ventilation may be required because of depressed spontaneous ventilation or drug-induced depression of neuromuscular function, and cardiovascular function may be impaired.

(B)(1) Subject to divisions (F) and (G)(3) of this section,a health careprofessional who is a volunteer and complies withdivision (B)(2) of thissection is not liable in damages to anyperson or government entity in a tortor other civil action,including an action on a medical, dental,chiropractic,optometric, or other health-related claim, for injury, death, orloss to person or property that allegedly arises from an action oromission of the volunteer in the provision to an indigent and uninsured person ofmedical, dental, or otherhealth-related diagnosis, care, ortreatment, including the provision of samples of medicine andother medicalproducts, unless the action or omission constituteswillful or wantonmisconduct.

(2) To qualify for the immunity described in division(B)(1)of this section, a health care professional shalldo all of thefollowing prior to providing diagnosis, care, or treatment:

(a) Determine, in good faith, that the indigent anduninsuredperson is mentally capable of giving informed consent tothe provision of the diagnosis, care, or treatment and isnotsubject to duress or under undue influence;

(b) Inform the person of the provisions of this section, including notifying the person that, by giving informed consent to the provision of the diagnosis, care, or treatment, the person cannot hold the health care professional liable for damages in a tort or other civil action, including an action on a medical, dental, chiropractic, optometric, or other health-related claim, unless the action or omission of the health care professional constitutes willful or wanton misconduct;

(c) Obtain the informed consent of the person and a writtenwaiver, signed by the person or byanother individual on behalf ofand in the presence of the person, that statesthat the person ismentally competent to give informed consent and,without beingsubject to duress or under undue influence, givesinformed consentto the provision of the diagnosis, care, ortreatment subject tothe provisions of this section. A written waiver under division (B)(2)(c) of this section shall state clearly and in conspicuous type that the person or other individual who signs the waiver is signing it with full knowledge that, by giving informed consent to the provision of the diagnosis, care, or treatment, the person cannot bring a tort or other civil action, including an action on a medical, dental, chiropractic, optometric, or other health-related claim, against the health care professional unless the action or omission of the health care professional constitutes willful or wanton misconduct.

(3) A physician or podiatrist who is not coveredby medicalmalpractice insurance, but complies with division(B)(2) of thissection, is not required to comply with division (A) of section4731.143 of the Revised Code.

(C) Subject to divisions (F) and (G)(3) of this section,health care workerswho are volunteers are not liable in damagesto any person or governmententity in a tort or other civilaction, including an action upon a medical,dental, chiropractic,optometric, or other health-related claim, for injury,death, orloss to person or property that allegedly arises froman action oromission of the health care worker in theprovision to an indigent anduninsuredperson of medical, dental, or other health-related diagnosis,care,or treatment, unless the action or omission constituteswillful or wantonmisconduct.

(D) Subject to divisions (F) and (G)(3) of this section, a nonprofit health care referral organization is not liable in damages to any person or government entity in a tort or other civil action, including an action on a medical, dental, chiropractic, optometric, or other health-related claim, for injury, death, or loss to person or property that allegedly arises from an action or omission of the nonprofit health care referral organization in referring indigent and uninsured persons to, or arranging for the provision of, medical, dental, or other health-related diagnosis, care, or treatment by a health care professional described in division (B)(1) of this section or a health care worker described in division (C) of this section, unless the action or omission constitutes willful or wanton misconduct.

(E) Subject to divisions (F) and (G)(3) of this section andto the extent that the registration requirements of section 3701.071of the Revised Code apply, a health care facility or location associatedwith a health care professionaldescribed in division (B)(1) of this section, a health careworker described in division (C) of this section, or a nonprofit health care referral organization described in division (D) of this section isnot liable indamages to any person or government entity in a tort or othercivil action, including an action on a medical, dental,chiropractic,optometric, orother health-related claim, forinjury, death, or loss to person or propertythat allegedly arisesfrom an action or omission of the health careprofessional orworker or nonprofit health care referral organization relative to the medical,dental,or other health-related diagnosis, care, or treatment provided to anindigentand uninsured person on behalf of or at the health care facility or location, unless the action or omissionconstitutes willful orwanton misconduct.

(F)(1) Except as provided in division (F)(2) of thissection, the immunities provided by divisions(B), (C), (D), and (E) ofthis section are notavailable to a health care professional, health care worker, nonprofit health care referral organization, or health care facility or location if, at the time of an allegedinjury, death, or loss to person or property, the health care professionals or health care workers involved areproviding one of the following:

(a) Any medical, dental, or other health-related diagnosis,care,or treatment pursuantto a community service work orderentered by a court under division(B) of section 2951.02 of theRevisedCode or imposed by a court as a community controlsanction;

(i) The operation requires the administration of deep sedation or general anesthesia.

(iii) The individual involved is a health care professional, and the operation is beyond the scope of practice or the education, training, and competence, as applicable, of the health care professional.

(2) Division (F)(1) of this section does not apply when a health care professional or health care worker provides medical, dental, or other health-related diagnosis, care, ortreatment that isnecessary to preserve the life of a person in amedical emergency.

(G)(1) This section does not create a new causeof action orsubstantive legal right against a health care professional,healthcare worker, nonprofit health care referral organization, or health care facility or location.

(2) This section does not affect any immunities fromcivilliability or defenses established by another section of theRevised Code or available at common law to whicha health care professional, health care worker, nonprofit health care referral organization, orhealth care facility or location may be entitled inconnection with theprovision of emergency or other medical, dental, or other health-related diagnosis,care, ortreatment.

(3) This section does not grant an immunity from tortorother civil liability to a health care professional, health care worker, nonprofit health care referral organization, orhealthcare facility or location for actions that are outside the scope ofauthority of healthcare professionals or health care workers.

(4) This section does not affect any legal responsibility ofahealth care professional, health care worker, or nonprofit health care referral organization to comply withany applicable law of this state or rule of an agency of thisstate.

(5) This section does not affect any legalresponsibility ofa health care facility or location to complywith anyapplicable law of this state, rule of an agency of thisstate, orlocal code, ordinance, or regulation that pertains toor regulatesbuilding, housing, air pollution, water pollution,sanitation,health, fire, zoning, or safety.

Sec. 2305.2341. (A) The medical liability insurance reimbursement program is hereby established. Free clinics, including the clinics' staff and volunteer health care professionals and volunteer health care workers, may participate in the medical liability insurance reimbursement program established by this section. The coverage provided under the program shall be limited to claims that arise out of the diagnosis, treatment, and care of patients of free clinics, as defined in division (D)(1) of this section.

(B) A free clinic is eligible to receive reimbursement under the medical liability insurance reimbursement program for the premiums that the clinic pays for medical liability insurance coverage for the clinic, its staff, and volunteer health care professionals and health care workers. Free clinics shall register with the department of health by the thirty-first day of January of each year in order to participate in and to obtain reimbursement under the program. Free clinics shall provide all of the following to the department of health at the time of registration:

(1) A statement of the number of volunteer and paid health care professionals and health care workers providing health care services at the free clinic at that time;

(2) A statement of the number of health care services rendered by the free clinic during the previous fiscal year;

(3) A signed form acknowledging that the free clinic agrees to follow its medical liability insurer's risk management and loss prevention policies;

(4) A copy of the medical liability insurance policy purchased by the free clinic, or the policy's declaration page, and documentation of the premiums paid by the clinic.

(C) The department of health shall reimburse free clinics participating in the professional liability insurance reimbursement program for eighty per cent of the premiums that the free clinic pays for medical liability insurance coverage up to twenty thousand dollars. Appropriations to the department of health may be made from the general fund of the state for this purpose.

(1) "Free clinic" means a nonprofit organization exempt from federal income taxation under section 501(c)(3) of the "Internal Revenue Code of 1986," as amended, or a program component of a nonprofit organization, whose primary mission is to provide health care services for free or for a minimal administrative fee to individuals with limited resources. A free clinic facilitates the delivery of health care services through the use of volunteer health care professionals and voluntary care networks. For this purpose, a free clinic shall comply with all of the following:

(a) If a free clinic does request a minimal administrative fee, a free clinic shall not deny an individual access to its health care services based on an individual's ability to pay the fee.

(c) Free clinics shall not perform operations, as defined by divisions (A)(9) and (F)(1)(b) of section 2305.234 of the Revised Code.

A clinic is not a free clinic if the clinic bills medicaid, medicare, or other third-party payers for health care services rendered at the clinic, and receives twenty-five per cent or more of the clinic's annual revenue from the third-party payments.

(2) "Health care professional" and "health care worker" have the same meanings as in section 2305.234 of the Revised Code.

Sec. 2307.65. (A) The attorney general may bring a civil action in the Franklin county court of common pleas on behalf of the department of job and family services, and the prosecuting attorney of the county in which a violation of division (B) of section 2913.401 of the Revised Code occurs may bring a civil action in the court of common pleas of that county on behalf of the county department of job and family services, against a person who violates division (B) of section 2913.401 of the Revised Code for the recovery of the amount of benefits paid on behalf of a person that either department would not have paid but for the violation minus any amounts paid in restitution under division (C)(2) of section 2913.401 of the Revised Code and for reasonable attorney's fees and all other fees and costs of litigation.

(B) In a civil action brought under division (A) of this section, if the defendant failed to disclose a transfer of property in violation of division (B)(3) of section 2913.401 of the Revised Code, the court may also grant any of the following relief to the extent permitted by 42 U.S.C. 1396p:

(1) Avoidance of the transfer of property that was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code to the extent of the amount of benefits the department would not have paid but for the violation;

(2) An order of attachment or garnishment against the property in accordance with Chapter 2715. or 2716. of the Revised Code;

(3) An injunction against any further disposition by the transferor or transferee, or both, of the property the transfer of which was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code or against the disposition of other property by the transferor or transferee;

(4) Appointment of a receiver to take charge of the property transferred or of other property of the transferee;

(C) To the extent permitted by 42 U.S.C. 1396p, the department of job and family services or the county department of job and family services may enforce a judgment obtained under this section by levying on property the transfer of which was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code or on the proceeds of the transfer of that property in accordance with Chapter 2329. of the Revised Code.

(D) The remedies provided in divisions (B) and (C) of this section do not apply if the transferee of the property the transfer of which was not disclosed in violation of division (B)(3) of section 2913.401 of the Revised Code acquired the property in good faith and for fair market value.

(E) The remedies provided in this section are not exclusive and do not preclude the use of any other criminal or civil remedy for any act that is in violation of section 2913.401 of the Revised Code.

(F) Amounts of medicaid benefits paid and recovered in an action brought under this section shall be credited to the general revenue fund, and any applicable federal share shall be returned to the appropriate agency or department of the United States.

Sec. 2329.66. (A) Every person who is domiciled in thisstate may hold property exempt from execution, garnishment,attachment, or sale to satisfy a judgment or order, as follows:

(1)(a) In the case of a judgment or order regarding moneyowed for health care services rendered or health care suppliesprovided to the person or a dependent of the person, one parceloritem of real or personal property that the person or adependentof the person uses as a residence. Division (A)(1)(a)of thissection does not preclude, affect, or invalidate thecreationunder this chapter of a judgment lien upon the exemptedpropertybut only delays the enforcement of the lien until theproperty issold or otherwise transferred by the owner or inaccordance withother applicable laws to a person or entity otherthan thesurviving spouse or surviving minor children of thejudgmentdebtor. Every person who is domiciled in this state mayholdexempt from a judgment lien created pursuant to division(A)(1)(a)of this section the person's interest, not to exceed fivethousanddollars, in the exempted property.

(b) In the case of all other judgments and orders, theperson's interest, not to exceed five thousand dollars, in oneparcel or item of real or personal property that the person or adependent of the person uses as a residence.

(2) The person's interest, not to exceed one thousanddollars, in onemotor vehicle;

(3) The person's interest, not to exceed two hundreddollarsin any particular item, in wearing apparel, beds, andbedding, andthe person's interest, not to exceed three hundreddollars in eachitem, in one cooking unit and one refrigerator orother foodpreservation unit;

(4)(a) The person's interest, not to exceed four hundreddollars, in cash on hand, money due and payable, money to becomedue within ninety days, tax refunds, and money on deposit with abank, savings and loan association, credit union, public utility,landlord, or other person. Division (A)(4)(a) of this sectionapplies only inbankruptcy proceedings. This exemption mayinclude the portionof personal earnings that is not exempt underdivision (A)(13) ofthis section.

(b) Subject to division (A)(4)(d) of this section, theperson's interest, not to exceed two hundred dollars in anyparticular item, in household furnishings, household goods,appliances, books, animals, crops, musical instruments, firearms,and hunting and fishing equipment, that are held primarily forthepersonal, family, or household use of the person;

(c) Subject to division (A)(4)(d) of this section, theperson's interest in one or more items of jewelry, not to exceedfour hundred dollars in one item of jewelry and not to exceed twohundred dollars in every other item of jewelry;

(d) Divisions (A)(4)(b) and (c) of this section do notinclude items of personal property listed in division (A)(3) ofthis section.

If the person does not claim an exemption under division(A)(1) of this section, the total exemption claimed underdivision(A)(4)(b) of this section shall be added to the totalexemptionclaimed under division (A)(4)(c) of this section, andthe totalshall not exceed two thousand dollars. If the personclaims anexemption under division (A)(1) of this section, thetotalexemption claimed under division (A)(4)(b) of this sectionshallbe added to the total exemption claimed under division(A)(4)(c)of this section, and the total shall not exceed onethousand fivehundred dollars.

(5) The person's interest, not to exceed an aggregate ofseven hundred fifty dollars, in all implements, professionalbooks, or tools of the person's profession, trade, or business,includingagriculture;

(6)(a) The person's interest in a beneficiary fund setapart, appropriated, or paid by a benevolent association orsociety, as exempted by section 2329.63 of the Revised Code;

(b) The person's interest in contracts of life orendowmentinsurance or annuities, as exempted by section 3911.10of theRevised Code;

(c) The person's interest in a policy of group insuranceorthe proceeds of a policy of group insurance, as exempted bysection 3917.05 of the Revised Code;

(d) The person's interest in money, benefits, charity,relief, or aid to be paid, provided, or rendered by a fraternalbenefit society, as exempted by section 3921.18 of the RevisedCode;

(e) The person's interest in the portion of benefits underpolicies of sickness and accident insurance and inlumpsum payments for dismemberment and other losses insured underthosepolicies, as exempted by section 3923.19 of the RevisedCode.

(8) The person's interest in a burial lot, including, butnot limited to, exemptions under section 517.09 or 1721.07 of theRevised Code;

(a) Moneys paid or payable for living maintenance orrights,as exempted by section 3304.19 of the Revised Code;

(d) Cash assistance payments under the Ohio works firstprogram, as exemptedbysection 5107.75 of the Revised Code;

(e)Benefits and services under the prevention, retention,and contingency program, as exempted by section 5108.08 of theRevised Code;

(f) Disability financial assistance payments, as exempted by section 5115.06 of the Revised Code.

(10)(a) Except in cases in which the person was convictedofor pleaded guilty to a violation of section 2921.41 of theRevisedCode and in which an order for the withholding ofrestitution frompayments was issued under division (C)(2)(b) ofthat section or incases in which an order for withholding was issued undersection2907.15 of the Revised Code, and only to theextent providedinthe order,andexcept as provided in sections 3105.171, 3105.63,3119.80, 3119.81, 3121.02, 3121.03, and3123.06 of the RevisedCode, the person's right to a pension,benefit, annuity,retirement allowance, or accumulatedcontributions, the person'sright to a participant account in anydeferred compensationprogram offered by the Ohio publicemployees deferred compensationboard, a government unit, or amunicipal corporation, or theperson's other accrued or accruingrights, as exempted by section145.56, 146.13, 148.09,742.47,3307.41, 3309.66, or 5505.22 ofthe Revised Code, andtheperson's right to benefits from the Ohiopublic safety officersdeath benefitfund;

(b) Except as provided in sections 3119.80, 3119.81,3121.02, 3121.03, and 3123.06 ofthe Revised Code, the person'sright to receive a payment underany pension, annuity, or similarplan or contract, not includinga payment from a stock bonus orprofit-sharing plan or a paymentincluded in division (A)(6)(b) or(10)(a) of this section, onaccount of illness, disability, death,age, or length of service,to the extent reasonably necessary forthe support of the personand any of the person's dependents,except if all the followingapply:

(i) The plan or contract was established by or under theauspices of an insider that employed the person at the time theperson's rights under the plan or contract arose.

(iii) The plan or contract is not qualified under the"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, asamended.

(c) Except for any portion of the assets that weredepositedfor the purpose of evading the payment of any debt andexcept asprovided in sections 3119.80, 3119.81,3121.02, 3121.03, and3123.06 of the RevisedCode, the person's right in the assets heldin, or to receiveany payment under, any individual retirementaccount,individual retirement annuity,"Roth IRA," or educationindividual retirementaccount that providesbenefits by reason ofillness, disability, death, or age, to the extentthat the assets,payments, or benefits described in division(A)(10)(c) of thissection are attributableto any of the following:

(i) Contributions of the person that were lessthan or equalto the applicable limits on deductiblecontributions to anindividual retirement account or individualretirement annuity inthe year that the contributions were made,whether or not theperson was eligible to deduct thecontributions on the person'sfederal tax return for the year inwhich the contributions weremade;

(ii) Contributions of the person that were lessthan orequal to the applicable limits on contributions to aRoth IRA oreducation individualretirement account in the year that thecontributions were made;

(iii) Contributions of the person that are withintheapplicable limits on rollover contributions undersubsections 219,402(c), 403(a)(4),403(b)(8), 408(b), 408(d)(3),408A(c)(3)(B),408A(d)(3),and 530(d)(5) of the"Internal Revenue Code of 1986,"100Stat. 2085, 26U.S.C.A. 1, as amended.

(d) Except for any portion of theassets that were depositedfor the purpose of evading thepayment of any debt and except asprovided in sections3119.80, 3119.81, 3121.02, 3121.03, and3123.06 of the Revised Code, the person'sright in the assets heldin, or to receive any payment under,any Keogh or"H.R. 10" planthat provides benefitsby reason of illness, disability, death, orage, to the extent reasonablynecessary for the support of theperson and any of the person'sdependents.

(11) The person's right to receive spousal support, childsupport, an allowance, or other maintenance to the extentreasonably necessary for the support of the person and any of theperson'sdependents;

(12) The person's right to receive, or moneys receivedduring the preceding twelve calendar months from, any of thefollowing:

(a) An award of reparations under sections 2743.51 to2743.72 of the Revised Code, to the extent exempted by division(D) of section 2743.66 of the Revised Code;

(b) A payment on account of the wrongful death of anindividual of whom the person was a dependent on the date of theindividual's death, to the extent reasonably necessary for thesupport of the person and any of the person's dependents;

(c) Except in cases in which the person who receives thepayment is aninmate, as defined in section 2969.21 of the RevisedCode, and in which thepayment resulted from a civil action orappeal against a government entity oremployee, as defined insection 2969.21 of the Revised Code, a payment, not toexceed fivethousand dollars, onaccount of personal bodily injury, notincluding pain andsuffering or compensation for actual pecuniaryloss, of theperson or an individual for whom the person is adependent;

(d) A payment in compensation for loss of future earningsofthe person or an individual of whom the person is or was adependent, to the extent reasonably necessary for the support ofthe debtor and any of the debtor's dependents.

(13) Except as provided in sections 3119.80, 3119.81,3121.02, 3121.03, and 3123.06 of the RevisedCode, personalearnings ofthe person owed to theperson for services in anamount equal to the greater of the followingamounts:

(a) If paid weekly, thirty times the current federalminimumhourly wage; if paid biweekly, sixty times the currentfederalminimum hourly wage; if paid semimonthly, sixty-fivetimes thecurrent federal minimum hourly wage; or if paidmonthly, onehundred thirty times the current federal minimumhourly wage thatis in effect at the time the earnings arepayable, as prescribedby the"Fair Labor Standards Act of 1938,"52 Stat. 1060, 29U.S.C. 206(a)(1), as amended;

(14) The person's right in specific partnership property,asexempted by division (B)(3) of section 1775.24 of the RevisedCode;

(15) A seal and official register of a notary public, asexempted by section 147.04 of the Revised Code;

(16) The person's interest in a tuition ~~credit~~ unit or a paymentunder section3334.09 of the Revised Code pursuant to a tuition~~credit~~ payment contract, as exemptedby section 3334.15 of the RevisedCode;

(17) Any other property that is specifically exempted fromexecution, attachment, garnishment, or sale by federal statutesother than the"Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11U.S.C.A. 101, as amended;

(18) The person's interest, not to exceed four hundreddollars, in any property, except that division (A)(18) of thissection appliesonly in bankruptcy proceedings.

(1)"Disposable earnings" means net earnings after thegarnishee has made deductions required by law, excluding thedeductions ordered pursuant to section 3119.80, 3119.81,3121.02,3121.03, or 3123.06 of theRevised Code.

(a) If the person who claims an exemption is anindividual,a relative of the individual, a relative of a generalpartner ofthe individual, a partnership in which the individualis a generalpartner, a general partner of the individual, or acorporation ofwhich the individual is a director, officer, or incontrol;

(b) If the person who claims an exemption is acorporation,a director or officer of the corporation; a personin control ofthe corporation; a partnership in which thecorporation is ageneral partner; a general partner of thecorporation; or arelative of a general partner, director,officer, or person incontrol of the corporation;

(c) If the person who claims an exemption is apartnership,a general partner in the partnership; a generalpartner of thepartnership; a person in control of thepartnership; a partnershipin which the partnership is a generalpartner; or a relative in, ageneral partner of, or a person incontrol of the partnership;

(i) The entity directly or indirectly owns, controls, orholds with power to vote, twenty per cent or more of theoutstanding voting securities of the person who claims anexemption, unless the entity holds the securities in a fiduciaryor agency capacity without sole discretionary power to vote thesecurities or holds the securities solely to secure to debt andthe entity has not in fact exercised the power to vote.

(ii) The entity is a corporation, twenty per cent or moreofwhose outstanding voting securities are directly or indirectlyowned, controlled, or held with power to vote, by the person whoclaims an exemption or by an entity to which division(B)(2)(d)(i)of this section applies.

(iii) A person whose business is operated under a lease oroperating agreement by the person who claims an exemption, or aperson substantially all of whose business is operated under anoperating agreement with the person who claims an exemption.

(iv) The entity operates the business or all orsubstantially all of the property of the person who claims anexemption under a lease or operating agreement.

(e) An insider, as otherwise defined in this section, of aperson or entity to which division (B)(2)(d)(i), (ii), (iii), or(iv) of this section applies, as if the person or entity were aperson who claims an exemption;

(3)"Participant account" has the same meaning as insection148.01 of the Revised Code.

(4)"Government unit" has the same meaning as in section148.06 of the Revised Code.

(1) In bankruptcy proceedings, as of the date a petitionisfiled with the bankruptcy court commencing a case under Title11of the United States Code;

(2) In all cases other than bankruptcy proceedings, as ofthe date of an appraisal, if necessary under section 2329.68 ofthe Revised Code, or the issuance of a writ of execution.

An interest, as determined under division (C)(1) or (2) ofthis section, shall not include the amount of any lien otherwisevalid pursuant to section 2329.661 of the Revised Code.

Sec. 2743.191. (A)(1) There is hereby created in the statetreasury the reparations fund, which shall be used only for thefollowing purposes:

(b) Thecompensation of anypersonnel needed by the attorneygeneral toadminister sections2743.51 to 2743.72 of the RevisedCode;

(d) Other administrative costs of hearing anddeterminingclaims for an award of reparations by the attorney general;

(e) The costs ofadministering sections 2907.28 and 2969.01to 2969.06 of theRevised Code;

(f) The costs of investigation and decision-making ascertified by theattorney general;

(g) The provision of state financial assistance tovictimassistance programs in accordance with sections 109.91 and109.92of the Revised Code;

(h) The costs of paying the expensesof sex offense-relatedexaminations and antibiotics pursuant tosection 2907.28 of theRevised Code;

(i) The cost of printing and distributingthe pamphletprepared by the attorney general pursuant to section109.42 of theRevised Code;

(j) Subject to division (D) ofsection 2743.71 of the RevisedCode, the costs associated withthe printing and providing ofinformation cards or other printedmaterials to law enforcementagencies and prosecuting authoritiesand with publicizing theavailability of awards of reparationspursuant to section 2743.71of the Revised Code;

(k) The payment of costs of administering a DNA specimencollection procedure pursuant to sections 2152.74 and 2901.07 of the RevisedCode, of performing DNA analysis of thoseDNAspecimens, and of entering the resulting DNA records regardingthose analyses into theDNA database pursuant to section 109.573of the Revised Code;

(l) The payment of actual costs associated with initiatives by the attorney general for the apprehension, prosecution, and accountability of offenders, and the enhancing of services to crime victims. The amount of payments made pursuant to division (A)(1)(l) of this section during any given fiscal year shall not exceed five per cent of the balance of the reparations fund at the close of the immediately previous fiscal year;

(m) The costs of administering the adult parole authority's supervision of sexually violent predators with an active global positioning system device pursuant to section 2971.05 of the Revised Code.

(2) All costs paidpursuant to section 2743.70 of the RevisedCode, theportions of license reinstatement fees mandated bydivision(F)(2)(b) of section 4511.191 of the Revised Code to becreditedto the fund, the portions of the proceeds of the sale ofaforfeited vehicle specified in division (C)(2) of section4503.234 of the Revised Code, paymentscollected by the departmentof rehabilitation and correction from prisonerswho voluntarilyparticipate in an approved work and training program pursuanttodivision (C)(8)(b)(ii) of section 5145.16of the Revised Code, andall moneyscollected by thestate pursuant to its right ofsubrogation provided in section2743.72 of the Revised Code shallbe deposited in the fund.

(B) In making an award of reparations, the attorneygeneralshallrender the award against the state. The awardshall beaccomplished only through the following procedure,and thefollowing proceduremay be enforced by writ of mandamus directedto the appropriateofficial:

(1) The attorney general shall providefor payment of theclaimant or providers in the amountof the award only if the amount of the award is fifty dollars or more.

(2) The expense shall be charged against all availableunencumbered moneys in the fund.

(3) If sufficientunencumbered moneys do not exist in thefund, the attorneygeneral shall makeapplication for payment ofthe award out of the emergencypurposes account or any otherappropriation for emergencies orcontingencies, and payment out ofthis account or otherappropriation shall be authorized if thereare sufficient moneysgreater than the sum total of then pendingemergency purposesaccount requests or requests for releases fromthe otherappropriations.

(4) If sufficient moneys do not exist in the account oranyother appropriation for emergencies or contingencies to paytheaward, the attorney general shall request thegeneral assembly tomake an appropriation sufficient to pay the award, and no paymentshall be made until the appropriation has been made. Theattorneygeneral shall make this appropriation requestduring the currentbiennium and during each succeeding biennium until a sufficientappropriation is made. If, prior to the time that anappropriation is made by the general assembly pursuant to thisdivision, the fund has sufficient unencumbered funds to pay theaward or part of the award, the available funds shall be used topay the award or part of the award, and the appropriation requestshall be amended to request only sufficient funds to pay thatpartof the award that is unpaid.

(C) The attorney general shall not make payment on adecisionor order granting an award until all appealshave beendetermined and all rights to appeal exhausted, exceptas otherwiseprovided in this section. If any party to a claimfor an award ofreparations appeals from only a portion of anaward, and aremaining portion provides for the payment of moneyby the state,that part of the award calling for the payment of money by thestate and not a subject of the appeal shall be processed forpayment as described in this section.

(D) The attorney general shall prepare itemized bills forthe costs ofprinting anddistributing the pamphlet the attorneygeneral preparespursuant to section 109.42 of the Revised Code.The itemized bills shall setforth the nameand address of thepersons owed the amounts set forth in them.

(E) As used in this section, "DNA analysis" and "DNAspecimen"have the same meanings as in section 109.573 of theRevised Code.

Sec. 2744.05. Notwithstanding any other provisions of theRevised Code or rules of a court to the contrary, in an actionagainst a political subdivision to recover damages for injury,death, or loss to person or property caused by an act oromissionin connection with a governmental or proprietaryfunction:

(B)(1) If a claimant receives or is entitled to receivebenefits for injuries or loss allegedly incurred from a policy orpolicies of insurance or any other source, the benefits shall bedisclosed to the court, and the amount of the benefits shall bededucted from any award against a political subdivisionrecoveredby that claimant. No insurer or other person isentitled to bringan action under a subrogation provision in aninsurance or othercontract against a political subdivision withrespect to thosebenefits.

The amount of the benefits shall be deductedfrom an awardagainst a political subdivision under division(B)(1) of thissection regardless of whether the claimant may beunder anobligation to pay back the benefits upon recovery, inwhole or inpart, for the claim. A claimant whose benefits havebeen deductedfrom an award under division (B)(1) of this sectionis notconsidered fully compensated and shall not be required toreimburse a subrogated claim for benefits deducted from an awardpursuant to division (B)(1) of this section.

(2) Nothing in division(B)(1) of this section shall beconstrued to do either ofthe following:

(a) Limit the rights ofa beneficiary under a lifeinsurancepolicy or the rights of sureties under fidelity orsurety bonds;

(b) Prohibit the department of job and family servicesfromrecoveringfrom the political subdivision, pursuant tosection5101.58 of the RevisedCode, the cost ofmedicalassistancebenefits provided under Chapter 5107., or 5111.~~, or5115.~~of theRevised Code.

(C)(1) There shall not be any limitation on compensatorydamages that represent the actual loss of the person who isawarded the damages. However, except in wrongful death actionsbrought pursuant to Chapter 2125. of the Revised Code, damagesthat arise from the same cause of action, transaction oroccurrence, or series of transactions or occurrences and that donot represent the actual loss of the person who is awarded thedamages shall not exceed two hundred fifty thousand dollars infavor of any one person. The limitation on damages that do notrepresent the actual loss of the person who is awarded thedamagesprovided in this division does not apply to court coststhat areawarded to a plaintiff, or to interest on a judgmentrendered infavor of a plaintiff, in an action against apoliticalsubdivision.

(2) As used in this division, "the actual loss of thepersonwho is awarded the damages" includes all of the following:

(a) All wages, salaries, or other compensation lost by theperson injured as a result of the injury, including wages,salaries, or other compensation lost as of the date of a judgmentand future expected lost earnings of the person injured;

(b) All expenditures of the person injured or anotherpersonon behalf of the person injured for medical care ortreatment, forrehabilitation services, or for other care, treatment, services,products, or accommodations that were necessary because of theinjury;

(c) All expenditures to be incurred in the future, asdetermined by the court, by the person injured or another personon behalf of the person injured for medical care ortreatment, forrehabilitationservices, or for other care, treatment, services,products, oraccommodations that will be necessary because of theinjury;

(d) All expenditures of a person whose property wasinjuredor destroyed or of another person on behalf of theperson whoseproperty was injured or destroyed in order to repair orreplacethe property that was injured or destroyed;

(e) All expenditures of the person injured or of the personwhoseproperty was injured or destroyed or of another person onbehalfof the person injured or of the person whose property wasinjured ordestroyed in relation to the actual preparation orpresentation ofthe claim involved;

(f) Any other expenditures of the person injured or of thepersonwhose property was injured or destroyed or of anotherperson on behalfof the person injured or of the person whoseproperty was injured ordestroyed that the court determinesrepresent an actual lossexperienced because of the personal orproperty injury orproperty loss.

"The actual loss of the person who is awarded the damages"does not include any fees paid or owed to an attorney for anyservices rendered in relation to a personal or property injury orproperty loss, and does not include any damages awarded for painand suffering, for the loss of society, consortium,companionship,care, assistance, attention, protection, advice,guidance,counsel, instruction, training, or education of thepersoninjured, for mental anguish, or for any other intangibleloss.

Sec. 2744.08. (A)(1) A political subdivision may usepublic funds to secure insurance with respect to its and itsemployees' potential liability in damages in civil actions forinjury, death, or loss to persons or property allegedly caused byan act or omission of the political subdivision or any of itsemployees in connection with a governmental or proprietaryfunction. The insurance may be at the limits, for thecircumstances, and subject to the terms and conditions, that aredetermined by the political subdivision in its discretion.

The insurance may be for the period of time that is setforth in specifications for competitive bids or, when competitivebidding is not required, for the period of time that is mutuallyagreed upon by the political subdivision and insurance company.The period of time does not have to be, but can be, limited tothe fiscal cycle under which the political subdivision is fundedand operates.

(2)(a) Regardless of whether a political subdivisionprocures a policy or policies of liability insurance pursuant todivision (A)(1) of this section or otherwise, the politicalsubdivision may establish and maintain a self-insurance programrelative to its and its employees' potential liability in damagesin civil actions for injury, death, or loss to persons orproperty allegedly caused by an act or omission of the politicalsubdivision or any of its employees in connection with agovernmental or proprietary function. The political subdivisionmay reserve such funds as it deems appropriate in a special fundthat may be established pursuant to an ordinance or resolution ofthe political subdivision and not subject to section 5705.12 ofthe Revised Code. The political subdivision may allocate thecosts of insurance or a self-insurance program, or both, amongthe funds or accounts in the subdivision's treasury on the basisof relative exposure and loss experience. The political subdivision may require any deductibles under an insurance or self-insurance program, or both, to be paid from funds or accounts in the subdivision's treasury from which a loss was directly attributable. If it so chooses, thepolitical subdivision may contract with any person, otherpolitical subdivision, or regional council of governments forpurposes of the administration of such a program.

(b) Political subdivisions that have establishedself-insurance programs relative to their and their employees'potential liability as described in division (A)(2)(a) of thissection may mutually agree that their self-insurance programswill be jointly administered in a specified manner.

(B) The purchase of liability insurance, or theestablishment and maintenance of a self-insurance program, by apolitical subdivision does not constitute a waiver of anyimmunity or defense of the political subdivision or itsemployees, except that the political subdivision may specificallywaive any immunity or defense to which it or its employees may beentitled if a provision to that effect is specifically includedin the policy of insurance or in a written plan of operation ofthe self-insurance program, or, if any, the legislative enactmentof the political subdivision authorizing the purchase of theinsurance or the establishment and maintenance of theself-insurance program. Such a specific waiver shall be only tothe extent of the insurance or self-insurance program coverage.

(C) The authorizations for political subdivisions tosecure insurance and to establish and maintain self-insuranceprograms in this section are in addition to any other authorityto secure insurance or to establish and maintain self-insuranceprograms that is granted pursuant to the Revised Code or theconstitution of this state, and they are not in derogation of anyother authorization.

Sec. 2744.082. (A) If a political subdivision, pursuant to division (A)(2)(a) of section 2744.08 of the Revised Code, has allocated costs to, or required the payment of deductibles from, funds or accounts in the subdivision's treasury, the subdivision's fiscal officer, pursuant to an ordinance or resolution of the subdivision's legislative authority, shall transfer amounts equal to those costs or deductibles from the funds or accounts to the subdivision's general fund if both of the following occur:

(1) The subdivision requests payment from the employee responsible for the funds or accounts for those costs or deductibles;

(2) The employee receiving the request fails to remit payment within forty-five days after the date of receipt of the request.

(B) Sections 5705.14, 5705.15, and 5705.16 of the Revised Code do not apply to transfers made pursuant to this section.

(1)"DNA analysis" and"DNA specimen" have the samemeaningsas in section 109.573 of the Revised Code.

(2)"Jail" and"community-based correctional facility" havethesame meanings as in section 2929.01 of the Revised Code.

(3)"Post-release control" has the same meaning as insection2967.01of the Revised Code.

(B)(1) A person who is convicted of or pleadsguilty to afelony offense listed in division(D) of this section and who issentenced to a prison term or to a community residential sanctionin a jailor community-based correctional facility pursuant tosection 2929.16 of theRevised Code, anda person who is convictedof or pleads guilty to a misdemeanor offense listedin division(D) of this section and who is sentenced to a term ofimprisonmentshall submit to aDNA specimen collectionprocedure administeredby the director of rehabilitation andcorrection or the chiefadministrative officer of the jail or otherdetention facility inwhich the person is serving theterm of imprisonment. If theperson serves the prisonterm in a state correctional institution,thedirector of rehabilitation and correction shall cause theDNAspecimen to be collected from the person during the intakeprocessat the receptionfacility designated by the director. If theperson serves thecommunity residential sanction or term ofimprisonment in a jail, acommunity-based correctional facility,or another county, multicounty,municipal,municipal-county, ormulticounty-municipal detention facility, the chiefadministrativeofficer of the jail,community-based correctional facility, ordetentionfacility shall cause theDNA specimen to be collectedfrom the person during the intakeprocess at the jail,community-based correctional facility, ordetention facility. Inaccordance withdivision (C) of this section, the director orthechief administrative officer shall cause theDNA specimen to beforwarded to the bureau of criminal identificationandinvestigation no later than fifteen days after the date of thecollectionof the DNA specimen. The DNA specimen shall becollected inaccordance with division (C) of this section.

(2) If a person is convicted of or pleads guilty toanoffense listed in division (D) of this section, isservingaprison term, community residential sanction, or term ofimprisonmentfor that offense, and does not provide a DNAspecimenpursuant to division (B)(1) of this section, prior to the person'srelease from the prison term, community residential sanction, orimprisonment, theperson shall submit to, and the director ofrehabilitation andcorrection or the chief administrative officerof the jail, community-basedcorrectional facility, or detentionfacility in which the person is servingtheprison term, communityresidential sanction, or term of imprisonmentshall administer, aDNA specimen collectionprocedure at the state correctionalinstitution, jail, community-basedcorrectional facility, ordetention facility in which the person is servingthe prison term,communityresidential sanction, or term of imprisonment. Inaccordance with division(C) of this section, the director orthechief administrative officer shall cause the DNA specimen to beforwarded to thebureau of criminal identification andinvestigation no later than fifteen daysafter the date of thecollection of the DNA specimen. TheDNA specimen shall becollected in accordance with division (C)of this section.

(3) If a personsentenced to a term of imprisonment orserving aprison termor communityresidential sanction forcommitting anoffense listed in division (D) of thissection is onprobation, isreleased on parole,undertransitionalcontrol, oron another typeof release, or is onpost-releasecontrol,if theperson isunderthe supervision ofa probationdepartment ortheadult paroleauthority, if the person issent tojail or isreturned to a jail,community-basedcorrectionalfacility, orstate correctionalinstitution for a violationoftheterms andconditions of theprobation,parole,transitionalcontrol, otherrelease, orpost-releasecontrol, if the person wasor will beservingatermof imprisonment, prison term, orcommunityresidentialsanctionforcommitting an offense listed indivision(D) of this section,and if the person didnot provide aDNAspecimenpursuant todivision (B)(1) or(2) of this section,theperson shall submitto, and thedirector of rehabilitation andcorrection or the chiefadministrativeofficer of the jail orcommunity-based correctionalfacility shalladminister, a DNAspecimen collectionprocedure atthe jail, community-basedcorrectional facility, or statecorrectional institution in whichthe person is servingthetermof imprisonment, prison term, orcommunity residentialsanction.In accordance withdivision (C) ofthis section,thedirector orthe chiefadministrative officershall cause theDNAspecimen tobe forwarded tothe bureau ofcriminal identificationandinvestigation no laterthan fifteendays after the date of thecollection of theDNA specimen. TheDNA specimen shall becollected from theperson in accordance withdivision(C) of thissection.

(C)If the DNA specimen is collected by withdrawing bloodfrom the person or a similarly invasive procedure, a physician,registerednurse, licensed practical nurse,duly licensed clinicallaboratory technician,or other qualifiedmedical practitionershall collect in a medically approvedmannerthe DNA specimenrequired to be collected pursuant to division(B)of this section.If the DNA specimen is collected by swabbing for buccal cells or asimilarly noninvasive procedure, this section does not requirethat the DNA specimen be collected by a qualified medicalpractitioner of that nature. No later than fifteen days after thedate ofthecollection of the DNA specimen, the director ofrehabilitationandcorrection or the chief administrative officerof the jail,community-based correctional facility, or othercounty,multicounty,municipal, municipal-county, ormulticounty-municipaldetention facility,in which the person isserving the prisonterm,community residential sanction, or termof imprisonmentshall cause the DNA specimen to be forwarded tothe bureau ofcriminal identification and investigation inaccordance withproceduresestablished by the superintendentofthe bureau underdivision (H) of section 109.573 of theRevisedCode. The bureaushall provide thespecimen vials, mailing tubes,labels, postage,and instructions needed forthe collection andforwarding of theDNA specimen to the bureau.

(D) The director of rehabilitation and correction and thechiefadministrative officer of the jail, community-basedcorrectional facility,or other county, multicounty, municipal,municipal-county, or multicounty-municipal detention facilityshall cause aDNA specimen to be collected inaccordancewithdivisions (B) and (C) of this section from a person inits custodywho is convicted of or pleads guilty toany of thefollowingoffenses:

(1) A violation of section 2903.01, 2903.02,2903.11,2905.01,2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02,2911.11, or 2911.12 of theRevisedCode;

(2) A violation of section 2907.12 of the Revised Code as itexisted prior toSeptember 3, 1996;

(3) An attempt to commit a violation of section2903.01,2903.02, 2907.02,2907.03, 2907.04, or 2907.05 of the Revised Codeor to commit aviolation of section 2907.12 of the Revised Code asit existedprior toSeptember 3, 1996;

(4) Aviolation of any law that arose out of the samefactsandcircumstances andsame act as did a charge against thepersonof a violation of section2903.01,2903.02,2905.01,2907.02,2907.03, 2907.04, 2907.05,or2911.11 of theRevised Codethatpreviously wasdismissed oramended or as did a charge against theperson of aviolation ofsection 2907.12 of the Revised Codeas itexistedprior toSeptember 3,1996, that previously was dismissedoramended;

(5) A violation of section 2905.02 or 2919.23 of theRevisedCode that wouldhave been aviolation of section 2905.04 of theRevised Code as it existed prior to July1,1996, had it beencommitted prior to that date;

(6) A sexually oriented offense or a child-victim oriented offense, both as defined in section2950.01 of theRevised Code, if, in relation to that offense, theoffenderhas been adjudicated a sexual predator or a child-victim predator, both asdefined insection 2950.01 of the Revised Code;

(7) A felony violation of any law that arose out of the samefacts and circumstances and same act as did a charge against theperson of a violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code that previously was dismissed oramended;

(8) A conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(9) Complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

(E) The director of rehabilitation and correction or a chiefadministrative officer of a jail, community-based correctionalfacility, orother detention facility describedin division (B) ofthis sectionin relation to the following offensesis not requiredto comply with this section until thesuperintendent of thebureauof criminal identification andinvestigation gives agencies in thecriminal justice system, asdefined in section ~~181.51~~ 5502.61 of theRevised Code, inthe stateofficial notification that the stateDNA laboratory isprepared toaccept DNA specimensof that nature:

(1) A violation of section 2903.11, 2911.01, 2911.02, or2911.12 of the Revised Code;

(2) An attempt to commit a violation of section 2903.01 or2903.02 of the Revised Code;

(3) A felony violation of any law that arose out of the samefactsand circumstances and same act as did a charge against thepersonof a violation of section 2903.11, 2911.01, 2911.02, or2911.12of the Revised Code that previously was dismissed oramended;

(4) A conspiracy to commit a violation of section 2903.01,2903.02, 2905.01, 2911.01, 2911.02, 2911.11, or 2911.12 of theRevised Code;

(5) Complicity in committing a violation of section 2903.01,2903.02, 2903.11, 2905.01, 2907.02, 2907.03, 2907.04, 2907.05,2911.01, 2911.02, 2911.11, or 2911.12 of the Revised Code or aviolation of section 2907.12 of the Revised Code as it existedprior to September 3, 1996.

(1)"Statement or representation" means any oral, written,electronic, electronic impulse, or magnetic communication that isused to identify an item of goods or a service for whichreimbursement may be made under the medical assistance program orthat states income and expense and is or may be used to determinea rate of reimbursement under the medical assistance program.

(2)"Medical assistance program" means the programestablished by the department of job and family servicestoprovidemedical assistance under section 5111.01 of the RevisedCode andthe medicaid program of Title XIX of the"Social SecurityAct,"49 Stat. 620 (1935), 42 U.S.C. 301, as amended.

(3)"Provider" means any person who has signed a provideragreement with the department of job and family servicestoprovide goodsor services pursuant to the medical assistanceprogram or anyperson who has signed an agreement with a party tosuch aprovider agreement under which the person agrees to providegoodsor services that are reimbursable under the medicalassistanceprogram.

(4)"Provider agreement" means an oral or writtenagreementbetween the department of job and familyservices and a personinwhich the person agrees to provide goods or services under themedical assistance program.

(5)"Recipient" means any individual who receives goods orservices from a provider under the medical assistance program.

(6)"Records" means any medical, professional, financial,orbusiness records relating to the treatment or care of anyrecipient, to goods or services provided to any recipient, or torates paid for goods or services provided to any recipient andanyrecords that are required by the rules of thedirector of job andfamily services to be kept forthe medicalassistance program.

(B) No person shall knowingly make or cause to be made afalse or misleading statement or representation for use inobtaining reimbursement from the medical assistance program.

(C) No person, with purpose to commit fraud or knowingthatthe person is facilitating a fraud, shall do either of thefollowing:

(1) Contrary to the terms of the person's provideragreement,charge, solicit, accept, or receive for goods orservices that thepersonprovides under the medical assistanceprogram any property,money, or other consideration in addition tothe amount ofreimbursement under the medical assistance programand the person'sprovider agreement for the goods or services andany deductiblesor co-payments authorized by~~rules adopted under~~section5111.0112 ofthe Revised Codeor ~~by any~~ rulesadoptedpursuant to ~~that~~ section 5111.01, 5111.011, or 5111.02 of the Revised Code.

(2) Solicit, offer, or receive any remuneration, otherthanany deductibles or co-payments authorized by section 5111.0112 of the Revised Code orrules adopted undersection~~5111.0112~~ 5111.01, 5111.011, or 5111.02 ofthe Revised Code ~~or by any rulesadoptedpursuant to thatsection~~,in cash or in kind, including,but notlimited to, akickback orrebate, in connection with thefurnishing of goods orservices forwhich whole or partialreimbursement is or may bemade under themedical assistanceprogram.

(D) No person, having submitted a claim for or providedgoods or services under the medical assistance program, shall doeither of the following for a period of at least six years afterareimbursement pursuant to that claim, or a reimbursement forthosegoods or services, is received under the medical assistanceprogram:

(1) Knowingly alter, falsify, destroy, conceal, or removeany records that are necessary to fully disclose the nature ofallgoods or services for which the claim was submitted, or forwhichreimbursement was received, by the person;

(2) Knowingly alter, falsify, destroy, conceal, or removeany records that are necessary to disclose fully all income andexpenditures upon which rates of reimbursements were based fortheperson.

(E) Whoever violates this section is guilty of medicaidfraud. Except as otherwise provided in this division,medicaidfraud is amisdemeanor of the first degree. If the value ofproperty, services, or fundsobtained in violation of this sectionis five hundred dollars or more and isless than five thousanddollars, medicaid fraud is a felony of the fifthdegree. If thevalue of property, services, or funds obtained in violation ofthis section is five thousand dollars or more and is less than onehundredthousand dollars, medicaid fraud isa felony of the fourthdegree. If the value of theproperty, services, or funds obtainedin violation of thissection is one hundred thousand dollars ormore, medicaid fraud isafelony of the third degree.

(F) Upon application of the governmental agency, office,orother entity that conducted the investigation and prosecutionin acase under this section, the court shall order any personwho isconvicted of a violation of this section for receiving anyreimbursement for furnishing goods or services under the medicalassistance program to which the person is not entitled topay totheapplicant its cost of investigating and prosecuting the case.The costs of investigation and prosecution that a defendant isordered to pay pursuant to this division shall be in addition toany other penalties for the receipt of that reimbursement thatareprovided in this section, section 5111.03 of the RevisedCode, orany other provision of law.

(G) The provisions of this section are not intended to beexclusive remedies and do not preclude the use of any othercriminal or civil remedy for any act that is in violation of thissection.

(1) "Medicaid benefits" means benefits under the medical assistance program established under Chapter 5111. of the Revised Code.

(2) "Property" means any real or personal property or other asset in which a person has any legal title or interest.

(B) No person shall knowingly do any of the following in an application for medicaid benefits or in a document that requires a disclosure of assets for the purpose of determining eligibility to receive medicaid benefits:

(3)(a) Except as provided in division (B)(3)(b) of this section, fail to disclose a transfer of property that occurred during the period beginning thirty-six months before submission of the application or document and ending on the date the application or document was submitted;

(b) Fail to disclose a transfer of property that occurred during the period beginning sixty months before submission of the application or document and ending on the date the application or document was submitted and that was made to an irrevocable trust a portion of which is not distributable to the applicant for medicaid benefits or the recipient of medicaid benefits or to a revocable trust.

(C)(1) Whoever violates this section is guilty of medicaid eligibility fraud. Except as otherwise provided in this division, a violation of this section is a misdemeanor of the first degree. If the value of the medicaid benefits paid as a result of the violation is five hundred dollars or more and is less than five thousand dollars, a violation of this section is a felony of the fifth degree. If the value of the medicaid benefits paid as a result of the violation is five thousand dollars or more and is less than one hundred thousand dollars, a violation of this section is a felony of the fourth degree. If the value of the medicaid benefits paid as a result of the violation is one hundred thousand dollars or more, a violation of this section is a felony of the third degree.

(2) In addition to imposing a sentence under division (C)(1) of this section, the court shall order that a person who is guilty of medicaid eligibility fraud make restitution in the full amount of any medicaid benefits paid on behalf of an applicant for or recipient of medicaid benefits for which the applicant or recipient was not eligible, plus interest at the rate applicable to judgments on unreimbursed amounts from the date on which the benefits were paid to the date on which restitution is made.

(3) The remedies and penalties provided in this section are not exclusive and do not preclude the use of any other criminal or civil remedy for any act that is in violation of this section.

(D) This section does not apply to a person who fully disclosed in an application for medicaid benefits or in a document that requires a disclosure of assets for the purpose of determining eligibility to receive medicaid benefits all of the interests in property of the applicant for or recipient of medicaid benefits, all transfers of property by the applicant for or recipient of medicaid benefits, and the circumstances of all those transfers.

(E) Any amounts of medicaid benefits recovered as restitution under this section and any interest on those amounts shall be credited to the general revenue fund, and any applicable federal share shall be returned to the appropriate agency or department of the United States.

Sec. 2921.13. (A) No person shall knowingly make a falsestatement, or knowingly swear or affirm the truth of a falsestatement previously made, when any of the following applies:

(3) The statement is made with purpose to mislead a publicofficial in performing the public official's official function.

(4) The statement is made with purpose to secure the paymentof unemploymentcompensation; Ohio worksfirst; prevention,retention, and contingency benefits and services;disability financialassistance;retirement benefits;economic development assistance,as definedin section 9.66 of the RevisedCode; or other benefitsadministered by a governmental agencyor paidoutof a publictreasury.

(5) The statement is made with purpose to secure theissuance by a governmental agency of a license, permit,authorization, certificate, registration, release, or provideragreement.

(6) The statement is sworn or affirmed before a notarypublic or another person empowered to administer oaths.

(7) The statement is in writing on or in connection with areport or return that is required or authorized by law.

(8) The statement is in writing and is made with purposetoinduce another to extend credit to or employ the offender, toconfer anydegree, diploma, certificate of attainment, awardofexcellence, or honor on the offender, or to extend to orbestowupon the offender any other valuable benefit ordistinction, whenthe person to whom the statement is directedrelies upon it tothat person's detriment.

(9) The statement is made with purpose to commit orfacilitate the commission of a theft offense.

(10) The statement is knowingly made to a probate court inconnection with any action, proceeding, or other matter withinitsjurisdiction, either orally or in a written document,including,but not limited to, an application, petition,complaint, or otherpleading, or an inventory, account, orreport.

(11) The statement is made on an account, form, record,stamp, label, orother writing that is required by law.

(12) The statement is made in connection with thepurchaseof a firearm, as defined insection 2923.11 of the Revised Code,and in conjunctionwith the furnishing to the seller of thefirearm of a fictitious or altereddriver's or commercial driver'slicense or permit, a fictitious or alteredidentification card, orany other document that contains false informationabout thepurchaser's identity.

(13) The statement is made in a document or instrument ofwritingthat purports to be a judgment, lien, or claim ofindebtedness and is filed orrecorded with the secretary of state,a county recorder, or the clerk of acourt of record.

(14) The statement is made with purpose to obtain an Ohio's best Rx program enrollment card under section 5110.09 of the Revised Code or a payment from the department of job and family services under section 5110.17 of the Revised Code.

~~(14)~~(15) The statement is made in an application filed withacounty sheriff pursuant to section 2923.125 of theRevised Code inorder to obtain or renew a licenseto carry a concealed handgun or is made in an affidavit submitted to a county sheriff to obtain a temporary emergency license to carry a concealed handgun under section 2923.1213 of the Revised Code.

(16) The statement is required under section 5743.72 of the Revised Code in connection with the person's purchase of cigarettes or tobacco products in a delivery sale.

(B) No person, in connection with the purchase of a firearm,asdefined in section 2923.11 of theRevised Code, shall knowinglyfurnish to the seller of thefirearm a fictitious or altereddriver's or commercial driver's license orpermit, a fictitious oraltered identification card, or any other documentthat containsfalse information about the purchaser's identity.

(C)No person, in an attempt to obtain a license to carry aconcealed handgun under section 2923.125 of the Revised Code,shall knowingly present to a sheriff a fictitiousor altereddocument that purports to be certification of the person'scompetencein handling a handgun as described in division (B)(3)of section 2923.125 of the Revised Code.

(D) It is no defense to a charge under division (A)(6) ofthis section that the oath or affirmation was administered ortaken in an irregular manner.

(E) If contradictory statements relating to the samefactare made by the offender within the period of the statute oflimitations for falsification, it is not necessary for theprosecution to prove which statement was false but only that oneor the other was false.

(F)(1) Whoever violates division (A)(1), (2), (3), (4),(5),(6), (7), (8), (10), (11), (13), or (14), or (16)of this section is guiltyoffalsification, a misdemeanor of the first degree.

(2) Whoever violates division (A)(9) of this section isguilty of falsification in a theft offense. Except as otherwiseprovided inthis division, falsification in a theftoffense is amisdemeanor of the first degree. If the value of the property orservices stolen is five hundred dollars or more and is less thanfive thousanddollars, falsification in a theft offense is afelony of the fifth degree. Ifthe value of the property orservices stolen is five thousand dollars or moreand is less thanone hundred thousand dollars, falsification in a theftoffense isa felony of the fourth degree. If the value of the property orservices stolen is one hundred thousand dollars or more,falsification in atheft offense is a felony of the third degree.

(3) Whoever violates division (A)(12)or (B) of thissection is guilty of falsification to purchase a firearm, afelonyof the fifth degree.

(4) Whoever violates division (A)~~(14)~~(15) or(C) of thissection is guilty of falsification to obtaina concealed handgunlicense, a felony of the fourth degree.

(G) A person who violates this section is liable in a civilaction to any person harmed by the violation for injury, death, orloss topersonor property incurred as a result of the commissionof the offense and forreasonable attorney's fees, court costs,and other expenses incurred as aresult of prosecuting the civilaction commenced under this division. A civilaction under thisdivision is not the exclusive remedy of a person who incursinjury, death, or loss to person or property as a result of aviolation ofthis section.

Sec. 2923.25. Each federally licensed firearms dealer who sells any firearm, at the time of the sale of the firearm, shall offer for sale to the purchaser of the firearm a trigger lock, gun lock, or gun locking device that is appropriate for that firearm. Each federally licensed firearms dealer shall post in a conspicuous location in the dealer's place of business the poster furnished to the dealer pursuant to section ~~181.521~~ 5502.63 of the Revised Code and shall make available to all purchasers of firearms from the dealer the brochure furnished to the dealer pursuant to that section.

As used in this section, "federally licensed firearms dealer" has the same meaning as in section ~~181.251~~ 5502.63 of the Revised Code.

Sec. 2923.35. (A)(1) With respect to property orderedforfeited under section 2923.32 of the Revised Code, with respectto any fine or civil penalty imposed in any criminal or civilproceeding under section 2923.32 or 2923.34 of the Revised Code,and with respect to any fine imposed for a violation of section2923.01 of the Revised Code for conspiracy to violate section2923.32 of the Revised Code, the court, upon petition of theprosecuting attorney, may do any of the following:

(b) Award compensation to persons who provide informationthat results in a forfeiture, fine, or civil penalty undersection 2923.32 or 2923.34 of the Revised Code;

(c) Grant petitions for mitigation or remission offorfeiture, fines, or civil penalties, or restore forfeitedproperty, imposed fines, or imposed civil penalties to personsinjured by the violation;

(d) Take any other action to protect the rights ofinnocent persons that is in the interest of justice and that isconsistent with the purposes of sections 2923.31 to 2923.36 ofthe Revised Code.

(2) The court shall maintain an accurate record of theactions it takes under division (A)(1) of this section withrespect to the property ordered forfeited or the fine or civilpenalty. The record is a public record open for inspection undersection 149.43 of the Revised Code.

(B)(1) After the application of division (A) of thissection, any person who prevails in a civil action pursuant tosection 2923.34 of the Revised Code has a right to any property,or the proceeds of any property, criminally forfeited to thestate pursuant to section 2923.32 of the Revised Code or againstwhich any fine under that section or civil penalty under division(I) of section 2923.34 of the Revised Code may be imposed.

The right of any person who prevails in a civil actionpursuant to section 2923.34 of the Revised Code, other than aprosecuting attorney performing official duties under thatsection, to forfeited property, property against which fines andcivil penalties may be imposed, and the proceeds of that propertyis superior to any right of the state, a municipal corporation,or a county to the property or the proceeds of the property, ifthe civil action is brought within one hundred eighty days afterthe entry of a sentence of forfeiture or a fine pursuant tosection 2923.32 of the Revised Code or the entry of a civilpenalty pursuant to division (I) of section 2923.34 of theRevised Code.

The right is limited to the total value of the trebledamages, civil penalties, attorney's fees, and costs awarded tothe prevailing party in an action pursuant to section 2923.34 ofthe Revised Code, less any restitution received by the person.

(2) If the aggregate amount of claims of persons who haveprevailed in a civil action pursuant to section 2923.34 of theRevised Code against any one defendant is greater than the totalvalue of the treble fines, civil penalties, and forfeitedproperty paid by the person against whom the actions werebrought, all of the persons who brought their actions within onehundred eighty days after the entry of a sentence or dispositionof forfeiture or a fine pursuant to section 2923.32 of theRevised Code or the entry of a civil penalty pursuant to division(I) of section 2923.34 of the Revised Code, first shall receive apro rata share of the total amount of the fines, civil penalties,and forfeited property. After the persons who brought theiractions within the specified one-hundred-eighty-day period havesatisfied their claims out of the fines, civil penalties, andforfeited property, all other persons who prevailed in civilactions pursuant to section 2923.34 of the Revised Code shallreceive a pro rata share of the total amount of the fines, civilpenalties, and forfeited property that remains in the custody ofthe law enforcement agency or in the corrupt activityinvestigation and prosecution fund.

(C)(1) Subject to divisions (A) and (B) of this sectionand notwithstanding any contrary provision of section 2933.41 ofthe Revised Code, the prosecuting attorney shall order thedisposal of property ordered forfeited in any proceeding undersections 2923.32 and 2923.34 of the Revised Code as soon asfeasible, making due provisions for the rights of innocentpersons, by any of the following methods:

(a) Transfer to any person who prevails in a civil actionpursuant to section 2923.34 of the Revised Code, subject to thelimit set forth in division (B)(1) of this section;

(e) If the property is contraband and is not needed forevidence in any pending criminal or civil proceeding, pursuant tosection 2933.41 or any other applicable section of the RevisedCode.

(2) Any interest in personal or real property not disposedof pursuant to this division and not exercisable by, ortransferable for value to, the state shall expire and shall notrevert to the person found guilty of or adjudicated a delinquentchild for a violation of section 2923.32 of the Revised Code. Noperson found guilty of or adjudicated a delinquent child for aviolation of that section and no person acting in concert with aperson found guilty of or adjudicated a delinquent child fora violation of that section is eligible to purchase forfeited property fromthestate.

(3) Upon application of a person, other than thedefendant, the adjudicated delinquent child, or a person actingin concert with or on behalf of either the defendant or theadjudicated delinquent child, the court may restrain or stay thedisposal of the property pursuant to this division pending theconclusion of any appeal of the criminal case or delinquency casegiving rise to the forfeiture or pending the determination of thevalidity of a claim to or interest in the property pursuant todivision (E) of section 2923.32 of the Revised Code, if theapplicant demonstrates that proceeding with the disposal of theproperty will result in irreparable injury, harm, or loss to theapplicant.

(4) The prosecuting attorney shall maintain an accuraterecord of each item of property disposed of pursuant to thisdivision, which record shall include the date on which each itemcame into the prosecuting attorney's custody, the manner and dateof disposition, and,if applicable, the name of the person who received the item. Therecord shall not identify or enable the identification of theindividual officer who seized the property, and the record is apublic record open for inspection under section 149.43 of theRevised Code.

Each prosecuting attorney who disposes in any calendar yearof any item of property pursuant to this division shall prepare areport covering the calendar year that cumulates all of theinformation contained in all of the records kept by theprosecuting attorney pursuant to this division for that calendaryear and shall send the cumulative report, no later than thefirst day of March in the calendar year following the calendaryear covered by the report, to the attorney general. Each reportreceived by the attorney general is a public record open forinspection under section 149.43 of the Revised Code. Not later than the fifteenth day of April in the calendar yearfollowing the calendar year covered by the reports,the attorney general shall send to the president of the senate and thespeaker of the house of representatives a written notification that doesall of the following:

(a) Indicates that the attorney general has received fromprosecuting attorneysreports of the type described in this division that cover the previouscalendar year and indicates that the reports were received under thisdivision;

(b) Indicates that the reportsare open for inspection under section 149.43 of theRevised Code;

(c) Indicates that the attorney generalwill provide a copy of any or all of the reports to thepresident of the senate or the speaker of the house ofrepresentatives upon request.

(D)(1)(a) Ten per cent of the proceeds of all property orderedforfeited by a juvenile court pursuant to section 2923.32 of the Revised Codeshall be applied to one ormore alcohol and drug addiction treatment programs that are certified by thedepartment of alcohol and drug addiction services under section 3793.06 ofthe Revised Code and that are specified in the order of forfeiture. Ajuvenile court shall notspecify an alcohol or drug addiction treatment program in the order offorfeiture unless the program is a certified alcohol and drug addictiontreatment program and, except as provided in division(D)(1)(a) of this section, unless the programis located in the county in which the court that orders the forfeiture islocated or in a contiguous county. If no certified alcohol and drug addictiontreatment program is located in any of those counties, the juvenile court mayspecify in the order a certified alcohol and drug addiction treatment programlocated anywhere within this state. The remaining ninety per cent of theproceeds shall be disposed of as provided in divisions(D)(1)(b) and (D)(2) of this section.

All of the proceeds of all property ordered forfeited by a court other thana juvenile court pursuant to section 2923.32 of the Revised Code shall bedisposed of as provided in divisions (D)(1)(b) and (D)(2) of this section.

(b) The remaining proceeds of all property ordered forfeitedpursuant to section 2923.32 of the Revised Code, after compliancewith division (D)(1)(a) of this section when thatdivision is applicable,and all fines andcivil penalties imposed pursuant to sections 2923.32 and 2923.34of the Revised Code shall be deposited into the state treasuryand credited to the corrupt activity investigation andprosecution fund, which is hereby created.

(2) The proceeds, fines, and penalties credited to thecorrupt activity investigation and prosecution fund pursuant todivision (D)(1) of this section shall be disposed of in thefollowing order:

(a) To a civil plaintiff in an action brought within theone-hundred-eighty-day time period specified in division (B)(1)of this section, subject to the limit set forth in that division;

(b) To the payment of the fees and costs of the forfeitureand sale, including expenses of seizure, maintenance, and custodyof the property pending its disposition, advertising, and courtcosts;

(c) Except as otherwise provided in division (D)(2)(c) ofthis section, the remainder shall be paid to the law enforcementtrust fund of the prosecuting attorney that is establishedpursuant to division (D)(1)(c) of section 2933.43 of the RevisedCode and to the law enforcement trust fund of the county sheriffthat is established pursuant to that division if the countysheriff substantially conducted the investigation, to the lawenforcement trust fund of a municipal corporation that isestablished pursuant to that division if its police departmentsubstantially conducted the investigation, to the law enforcementtrust fund of a township that is established pursuant to thatdivision if the investigation was substantially conducted by atownship police department, township police district policeforce, or office of a township constable, or to the lawenforcement trust fund of a park district created pursuant tosection 511.18 or 1545.01 of the Revised Code that is establishedpursuant to that division if the investigation was substantiallyconducted by its park district police force or law enforcementdepartment. The prosecuting attorney may decline to accept anyof the remaining proceeds, fines, and penalties, and, if theprosecuting attorney so declines, they shall be applied to the funddescribed in division(D)(2)(c) of this section that relates to the appropriate lawenforcement agency that substantially conducted theinvestigation.

If the state highway patrol substantially conducted theinvestigation, the director of budget and management shalltransfer the remaining proceeds, fines, and penalties to thestate highway patrol for deposit into the ~~state~~ highway patrol statecontraband, forfeiture, and other fund that is created bydivision (D)(1)(c) of section 2933.43 of the Revised Code. If the department of taxation substantially conducted the investigation, the director, shall transfer the remaining proceeds, fines, and penalties to the department for deposit into the department of taxation enforcement fund. Ifthe state board of pharmacy substantially conducted theinvestigation, the director shall transfer the remainingproceeds, fines, and penalties to the board for deposit into theboard of pharmacy drug law enforcement fund that is created bydivision (B)(1) of section 4729.65 of the Revised Code. If astate law enforcement agency, other than the state highway patrol, the department of taxation,or the state board of pharmacy, substantially conducted the investigation, thedirector shall transfer the remaining proceeds, fines, andpenalties to the treasurer of state for deposit into the peaceofficer training commission fund.

The remaining proceeds, fines, and penalties that are paidto a law enforcement trust fund or that are deposited into the~~state~~ highway patrol state contraband, forfeiture, and other fund, the department of taxation enforcement fund, theboard of pharmacy drug law enforcement fund, or the peace officertraining commission fund pursuant to division (D)(2)(c)of thissection shall be allocated, used, and expended only in accordancewith division (D)(1)(c) of section 2933.43 of the Revised Code,only in accordance with a written internal control policy adoptedunder division (D)(3) of that section, and, if applicable, onlyin accordance with division (B) of section 4729.65 of the RevisedCode. The annual reports that pertain to the funds and that arerequired by divisions (D)(1)(c) and (3)(b) of section 2933.43 ofthe Revised Code also shall address the remaining proceeds,fines, and penalties that are paid or deposited into the fundspursuant to division (D)(2)(c) of this section.

(3) If more than one law enforcement agency substantiallyconducted the investigation, the court ordering the forfeitureshall equitably divide the remaining proceeds, fines, andpenalties among the law enforcement agencies that substantiallyconducted the investigation, in the manner described in division(D)(2) of section 2933.43 of the Revised Code for the equitabledivision of contraband proceeds and forfeited moneys. Theequitable shares of the proceeds, fines, and penalties sodetermined by the court shall be paid or deposited into theappropriate funds specified in division (D)(2)(c) of thissection.

(E) As used in this section, "law enforcement agency"includes, but is not limited to, the state board of pharmacy and the department of taxation.

Sec. 2923.46. (A) If property is seized pursuant tosection 2923.44 or 2923.45 of the Revised Code, it is considered tobe in the custody of the head of the law enforcement agency thatseized it, and the head of that agency may do any of thefollowing with respect tothat property prior to its disposition in accordance withdivision (A)(4) or (B) of this section:

(3) Request the issuance of a court order that requiresany other appropriate municipal corporation, county, township,park district created pursuant to section 511.18 or 1545.01of the Revised Code, or state law enforcement officer or otherofficer to take custody of the property and, if practicable,remove it to an appropriate location for eventual disposition inaccordance with division (B) of this section;

(4)(a) Seek forfeiture of the property pursuant to federallaw. If the head of that agency seeks its forfeiture pursuant to federal law,the law enforcement agency shall deposit, use, and account for proceeds from asale ofthe property upon its forfeiture, proceeds from another disposition of theproperty upon itsforfeiture, or forfeited moneys it receives, in accordancewith the applicable federal law and otherwise shall comply withthat law.

(b) If the state highway patrol seized the property and if thesuperintendent of the state highway patrol seeks its forfeiture pursuant tofederal law, the appropriate governmental officials shall deposit into the~~state~~ highway patrol federal contraband, forfeiture, and other fund all interest orother earningsderived from the investment of the proceeds from a sale of the property uponits forfeiture, the proceeds from another disposition of the property upon itsforfeiture, or the forfeited moneys. The state highway patrol shall use andaccount for that interest or other earnings in accordance with the applicablefederal law.

(c) Division (B) of this section and divisions(D)(1) to (3) of section 2933.43 of the Revised Code do not apply to proceeds orforfeited moneys received pursuant to federal law or to the interest or otherearnings that are derived from the investment of proceeds or forfeited moneysreceived pursuant to federal law and that are described in division(A)(4)(b) of this section.

(B) In addition to complying with any requirements imposedby a court pursuant to section 2923.44 or 2923.45 of the Revised Code, and the requirementsimposed by those sections, in relationto the disposition of property forfeited to the state undereither of those sections, the prosecuting attorney who isresponsible for its disposition shall dispose of the property asfollows:

(1) Any vehicle that was used in aviolation of section 2923.42 of the Revised Code or inan act of a juvenile that is a violation of section 2923.42 of the Revised Code shall begivento the law enforcement agency of themunicipal corporation or county in which the offense or act occurred ifthat agency desires to have the vehicle, except that, if theoffense or act occurred in a township or in a park district createdpursuant to section 511.18 or 1545.01 of the Revised Code and alaw enforcement officer employed by the township or the park district wasinvolved in the seizure of the vehicle, the vehicle may be given to the lawenforcement agency of that township or park district if thatagency desires to have the vehicle, and except that, if the statehighway patrol made the seizure of the vehicle, the vehicle maybe given to the state highway patrol if it desires to have thevehicle.

(2) Drugs shall be disposed of pursuant to section 3719.11of the Revised Code or placed in the custody of the secretary ofthe treasury of the United States for disposal or use formedicalor scientific purposes under applicable federal law.

(3) Firearms and dangerous ordnance suitable for policework may be given to a law enforcement agency for that purpose.Firearms suitable for sporting use, or as museum pieces orcollectors' items, may be disposed of by sale pursuant todivision (B)(7) of this section. Other firearms and dangerousordnance shall be destroyed by a law enforcement agency or shallbe sent to the bureau of criminal identification andinvestigation for destruction by it.

(4) Computers, computer networks, computer systems, andcomputer software suitable for police work may be given to a lawenforcement agency for that purpose. Other computers, computernetworks, computer systems, and computer software shall bedisposed of by sale pursuant to division (B)(7) of this sectionor disposed of in another manner that the court that issued theorder of forfeiture considers proper under the circumstances.

(6) Beer, intoxicating liquor, and alcohol shall bedisposed of in accordance with division (D)(4) of section 2933.41of the Revised Code.

(7) In the case of property not described in divisions(B)(1) to (6) of this section and of property described in thosedivisions but not disposed of pursuant to them, the propertyshall be sold in accordance with division (B)(7) of this section or,in the case of forfeited moneys, disposed of in accordance with division(B)(7) of this section. If the property is to be sold, theprosecuting attorney shallcause a notice of the proposed sale of the property to be givenin accordance with law, and the property shall be sold, withoutappraisal, at a public auction to the highest bidder for cash. The proceedsof a sale and forfeited moneys shall be applied inthe following order:

(a) First, to the payment of the costs incurred inconnection with the seizure of, storage of, maintenance of, andprovision of security for the property, the forfeiture proceedingor civil action, and, if any, the sale;

(b) Second, the remaining proceeds or forfeited moneysafter compliance with division (B)(7)(a) of thissection, to thepayment of the value of any legal right, title, or interest inthe property that is possessed by a person who, pursuant todivision (F) of section 2923.44 of the Revised Code or division(E) of section 2923.45 of the Revised Code, established thevalidity of and consequently preserved that legal right, title,or interest, including, but not limited to, any mortgage,perfected or other security interest, or other lien in theproperty. The value of these rights, titles, or interests shallbe paid according to their record or other order of priority.

(c) Third, the remaining proceeds or forfeited moneysafter compliance with divisions (B)(7)(a) and(b) of this section, as follows:

(i) If the forfeiture was ordered in a juvenile court, ten percent to one or more alcohol and drug addiction treatment programs that arecertified by the department of alcohol and drug addiction services undersection 3793.06 of the Revised Code and that are specified in the order of forfeiture. Ajuvenile court shall not specify an alcohol or drug addiction treatmentprogramin the order of forfeiture unless the program is a certified alcohol and drugaddiction treatment program and, except as provided in division(B)(7)(c)(i) of this section, unlessthe program is located in the county in which the court that orders theforfeiture is located or in a contiguous county. If no certified alcohol anddrug addiction treatment program is located in any of those counties, thejuvenile court may specify in the order a certified alcohol and drug addictiontreatment program located anywhere within this state.

(ii) If the forfeiture was ordered in a juvenile court, ninetyper cent, and if the forfeiture was ordered in a court other than a juvenilecourt, one hundred per cent to appropriate funds in accordance withdivisions (D)(1)(c) and (2) of section 2933.43 of the Revised Code. The remaining proceeds or forfeited moneys so deposited shall be usedonly for the purposes authorized by those divisions and division(D)(3)(a)(ii) of that section.

(C)(1) Sections 2923.44 to 2923.47 of the Revised Code donot preclude a financial institution that possessed a valid mortgage, securityinterest, or lien that is not satisfied prior to a sale underdivision (B)(7) of this section or following a sale byapplication of division (B)(7)(b) of this section,fromcommencing a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtorif the financial institution otherwise would have been entitledto do so in this or another state.

(2) Any law enforcement agency that obtains any vehiclepursuant to division (B)(1) of this section shall take thevehicle subject to the outstanding amount of any securityinterest or lien that attaches to the vehicle.

(3) Nothing in this section impairs a mortgage, securityinterest, lien, or otherinterest of a financial institution in property that was thesubject of a forfeiture order under section 2923.44 or 2923.45 of the Revised Code and thatwas sold or otherwise disposed of in amanner that does not conform to the requirements of division (B)of this section, or any right of a financial institution ofthat nature to commence a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtor.

(4) Following the sale under division (B)(7) of thissection of any property that is required to be titled orregistered under the law of this state, the prosecuting attorneyresponsible for the disposition of the property shall cause thestate to issue an appropriate certificate of title orregistration to the purchaser of the property. If,in a disposition of property pursuant to division (B) of thissection, the state or a political subdivision is given anyproperty that is required to be titled or registered under thelaw of this state, the prosecuting attorney responsible for thedisposition of the property shall cause the state to issue anappropriate certificate of title or registration to itself or tothe political subdivision.

(D) Property that has been forfeited to the state pursuantto an order of criminal forfeiture under section 2923.44 of the Revised Code or an order ofcivil forfeiture under section2923.45 of the Revised Code shall not be available for use to payany fine imposed upon a person who is convicted of or pleadsguilty to a violation of section 2923.42 of the Revised Code or upon a juvenile who isfound by a juvenile court to be a delinquent child for an actthat is a violation of section 2923.42 of the Revised Code.

(E) Sections 2923.44 to 2923.47 of the Revised Code do notprohibit a law enforcement officer from seeking the forfeiture of contrabandassociated with a violation of section 2923.42 of the Revised Code pursuant to section2933.43 of the Revised Code.

Sec. 2925.44. (A) If property is seized pursuant tosection 2925.42 or 2925.43 of the Revised Code, it is deemed tobe in the custody of the head of the law enforcement agency thatseized it, and the head of that agency may do any of thefollowing with respect tothat property prior to its disposition in accordance withdivision (A)(4) or (B) of this section:

(4)(a) Seek forfeiture of the property pursuant to federallaw. If the head of that agency seeks its forfeiture pursuant to federal law,the lawenforcement agency shall deposit, use, and account for proceeds from a sale ofthe property upon its forfeiture, proceeds from another disposition of theproperty upon itsforfeiture, or forfeited moneys it receives, in accordancewith the applicable federal law and otherwise shall comply withthat law.

(b) If the state highway patrol seized the property and if the superintendentof the state highway patrol seeks its forfeiture pursuant to federal law, theappropriate governmental officials shall deposit into the ~~state~~ highwaypatrol federal contraband, forfeiture, and other fund all interest or other earningsderived from the investment of the proceeds from a sale of the property uponits forfeiture, the proceeds from another disposition of the property upon itsforfeiture, or the forfeited moneys. The state highway patrol shall use andaccount for that interest or other earnings in accordance with the applicablefederal law.

(c) If the investigative unit of thedepartment of publicsafety seized the property and if the director of public safetyseeks its forfeiture pursuant to federal law, the appropriategovernmental officials shall deposit into thedepartment of public safety investigative unit~~contraband, forfeiture, and other~~ federal equitable share account fund all interest or otherearnings derived from the investment of the proceeds from a saleof the property upon its forfeiture, the proceeds from anotherdisposition of the property upon its forfeiture, or theforfeited moneys. The department shall use and account for thatinterest or other earnings in accordance with the applicablefederal law.

(d) If the enforcement division of the department of taxation seized the property and if the tax commissioner seeks its forfeiture pursuant to federal law, the appropriate governmental officials shall, deposit into the department of taxation enforcement fund all interest or other earnings derived from the investment of the proceeds from a sale of the property upon its forfeiture, the proceeds from another disposition of the property upon its forfeiture, or the forfeited moneys. The department shall use and account for that interest or other earnings in accordance with the applicable federal law.

(e) Division (B) of this section and divisions (D)(1) to(3) of section 2933.43 of the Revised Code do not apply to proceeds orforfeited moneys received pursuant to federal law or to the interest or otherearnings that are derived from the investment of proceeds or forfeited moneysreceived pursuant to federal law and that are described in division (A)(4)(b) or (d)of this section.

(B) In addition to complying with any requirements imposedby a court pursuant to section 2925.42 or 2925.43 of the RevisedCode, and the requirements imposed by those sections, in relationto the disposition of property forfeited to the state undereither of those sections, the prosecuting attorney who isresponsible for its disposition shall dispose of the property asfollows:

(1) Any vehicle, as defined in section 4501.01 of theRevised Code, that was used in a felony drug abuse offense or inan act that, if committed by an adult, would be a felony drugabuse offense shall be given to the law enforcement agency of themunicipal corporation or county in which the offense occurred ifthat agency desires to have the vehicle, except that, if theoffense occurred in a township or in a park district createdpursuant to section 511.18 or 1545.01 of the Revised Code and alaw enforcement officer employed by the township or the park district wasinvolved inthe seizure of the vehicle, the vehicle may be given to the lawenforcement agency of that township or park district if thatagency desires to have the vehicle, and except that, if the statehighway patrol made the seizure of the vehicle, the vehicle maybe given to the state highway patrol if it desires to have thevehicle.

(2) Any drug paraphernalia that was used, possessed, sold,or manufactured in a violation of section 2925.14 of the RevisedCode that would be a felony drug abuse offense or in a violationof that section committed by a juvenile that, if committed by anadult, would be a felony drug abuse offense, may be given to thelaw enforcement agency of the municipal corporation or county inwhich the offense occurred if that agency desires to have and canuse the drug paraphernalia, except that, if the offense occurredin a township or in a park district created pursuant to section511.18 or 1545.01 of the Revised Code and a law enforcementofficer employed by the township or the park district was involved in theseizure of thedrug paraphernalia, the drug paraphernalia may be given to thelaw enforcement agency of that township or park district if thatagency desires to have and can use the drug paraphernalia. Ifthe drug paraphernalia is not so given, it shall be disposed ofby sale pursuant to division (B)(8) of this section or disposedof in another manner that the court that issued the order offorfeiture considers proper under the circumstances.

(3) Drugs shall be disposed of pursuant to section 3719.11of the Revised Code or placed in the custody of the secretary ofthe treasury of the United States for disposal or use for medicalor scientific purposes under applicable federal law.

(4) Firearms and dangerous ordnance suitable for policework may be given to a law enforcement agency for that purpose.Firearms suitable for sporting use, or as museum pieces orcollectors' items, may be disposed of by sale pursuant todivision (B)(8) of this section. Other firearms and dangerousordnance shall be destroyed by a law enforcement agency or shallbe sent to the bureau of criminal identification andinvestigation for destruction by it. As used in this division,"firearms" and "dangerous ordnance" have the same meanings as insection 2923.11 of the Revised Code.

(5) Computers, computer networks, computer systems, andcomputer software suitable for police work may be given to a lawenforcement agency for that purpose. Other computers, computernetworks, computer systems, and computer software shall bedisposed of by sale pursuant to division (B)(8) of this sectionor disposed of in another manner that the court that issued theorder of forfeiture considers proper under the circumstances. Asused in this division, "computers," "computer networks,""computer systems," and "computer software" have the samemeanings as in section 2913.01 of the Revised Code.

(7) Beer, intoxicating liquor, and alcohol shall bedisposed of in accordance with division (D)(4) of section 2933.41of the Revised Code.

(8) In the case of property not described in divisions(B)(1) to (7) of this section and of property described in thosedivisions but not disposed of pursuant to them, the propertyshall be sold in accordance with division (B)(8) of this section or, in thecase offorfeited moneys, disposed of in accordance with division (B)(8) of thissection. If the property is to be sold, the prosecuting attorney shallcause a notice of the proposed sale of the property to be givenin accordance with law, and the property shall be sold, withoutappraisal, at a public auction to the highest bidder for cash. The proceedsof a sale and forfeited moneys shall be applied inthe following order:

(b) Second, the remaining proceeds or forfeited moneysafter compliance with division (B)(8)(a) of this section, to thepayment of the value of any legal right, title, or interest inthe property that is possessed by a person who, pursuant todivision (F) of section 2925.42 of the Revised Code or division(E) of section 2925.43 of the Revised Code, established thevalidity of and consequently preserved that legal right, title,or interest, including, but not limited to, any mortgage,perfected or other security interest, or other lien in theproperty. The value of these rights, titles, or interests shallbe paid according to their record or other order of priority.

(c) Third, the remaining proceeds or forfeited moneysafter compliance with divisions (B)(8)(a) and (b) of thissection, as follows:

(i) If the forfeiture was ordered in a juvenile court, ten percent to one or more alcohol and drug addiction treatment programs that arecertified by the department of alcohol and drug addiction services undersection 3793.06 of the Revised Code and that are specified in the order of forfeiture. Ajuvenile court shall not specify an alcohol or drug addiction treatment programin the order of forfeiture unless the program is a certified alcohol and drugaddiction treatment program and, except as provided in division(B)(8)(c)(i) of this section, unlessthe program is located in the county in which the court that orders theforfeiture is located or in a contiguous county. If no certified alcohol anddrug addiction treatment program is located in any of those counties, thejuvenile court may specify in the order a certified alcohol and drug addictiontreatment program located anywhere within this state.

(ii) If the forfeiture was ordered in a juvenile court, ninetypercent, and if the forfeiture was ordered in a court other than a juvenilecourt,one hundred per centto appropriate funds in accordance with divisions(D)(1)(c) and (2) of section 2933.43 of the Revised Code. Theremaining proceeds or forfeited moneys so deposited shall be usedonly for the purposes authorized by those divisions and division(D)(3)(a)(ii) of that section.

(C)(1) Sections 2925.41 to 2925.45 of the Revised Code donot preclude a financial institution that possessed a valid mortgage, securityinterest, or lien that is not satisfied prior to a sale underdivision (B)(8) of this section or following a sale byapplication of division (B)(8)(b) of this section, fromcommencing a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtorif the financial institution otherwise would have been entitledto do so in this or another state.

(3) Nothing in this section impairs a mortgage, securityinterest, lien, or otherinterest of a financial institution in property that was thesubject of a forfeiture order under section 2925.42 or 2925.43 ofthe Revised Code and that was sold or otherwise disposed of in amanner that does not conform to the requirements of division (B)of this section, or any right of a financial institution ofthat nature tocommence a civil action in any appropriate court in this oranother state to obtain a deficiency judgment against the debtor.

(4) Following the sale under division (B)(8) of thissection of any property that is required to be titled orregistered under the law of this state, the prosecuting attorneyresponsible for the disposition of the property shall cause thestate to issue an appropriate certificate of title orregistration to the purchaser of the property. Additionally, if,in a disposition of property pursuant to division (B) of thissection, the state or a political subdivision is given anyproperty that is required to be titled or registered under thelaw of this state, the prosecuting attorney responsible for thedisposition of the property shall cause the state to issue anappropriate certificate of title or registration to itself or tothe political subdivision.

(D) Property that has been forfeited to the state pursuantto an order of criminal forfeiture under section 2925.42 of theRevised Code or an order of civil forfeiture under section2925.43 of the Revised Code shall not be available for use to payany fine imposed upon a person who is convicted of or pleadsguilty to a felony drug abuse offense or upon any juvenile who isfound by a juvenile court to be a delinquent child for an actthat, if committed by an adult, would be a felony drug abuseoffense.

(E) Sections 2925.41 to 2925.45 of the Revised Code do notprohibit a law enforcement officer from seeking the forfeiture of contrabandassociated with a felony drug abuse offense pursuant to section2933.43 of the Revised Code.

Sec. 2927.023. (A) As used in this section "authorized recipient of tobacco products" means a person who is:

(1) Licensed as a cigarette wholesale dealer under section 5743.15 of the Revised Code;

(2) Licensed as a distributor of tobacco products under section 5743.61 of the Revised Code;

(3) An export warehouse proprietor as defined in section 5702 of the Internal Revenue Code;

(4) An operator of a customs bonded warehouse under 19 U.S.C. 1311 or 19 U.S.C. 1555;

(5) An officer, employee, or agent of the federal government or of this state acting in the person's official capacity;

(6) A department, agency, instrumentality, or political subdivision of the federal government or of this state;

(7) A person having a consent for consumer shipment issued by the tax commissioner under section 5743.71 of the Revised Code.

The purpose of this section is to prevent the sale of cigarettes to minors and to ensure compliance with the Master Settlement Agreement, as defined in section 1346.01 of the Revised Code.

(B)(1) No person shall cause to be shipped any cigarettes to any person in this state other than an authorized recipient of tobacco products.

(2) No common carrier, contract carrier, or other person shall knowingly transport cigarettes to any person in this state that the carrier or other person reasonably believes is not an authorized recipient of tobacco products. If cigarettes are transported to a home or residence, it shall be presumed that the common carrier, contract carrier, or other person knew that the person to whom the cigarettes were delivered was not an authorized recipient of tobacco products.

(C) No person engaged in the business of selling cigarettes who ships or causes to be shipped cigarettes to any person in this state in any container or wrapping other than the original container or wrapping of the cigarettes shall fail to plainly and visibly mark the exterior of the container or wrapping in which the cigarettes are shipped with the words "cigarettes."

(D) A court shall impose a fine of up to one thousand dollars for each violation of division (B)(1), (B)(2), or (C) of this section.

Sec. 2933.43. (A)(1) Except as provided in this division orin section2913.34 or sections 2923.44 to 2923.47 or2925.41 to2925.45 of the Revised Code,a law enforcement officer shall seizeany contraband that has been, isbeing, or is intended to be usedin violation of division (A) ofsection 2933.42 of the RevisedCode. A law enforcement officershall seize contraband that is awatercraft, motor vehicle, oraircraft and that has been, isbeing, or is intended to be usedin violation of division (A) ofsection 2933.42 of the RevisedCode only if the watercraft, motorvehicle, or aircraft iscontraband because of its relationship toan underlying criminaloffense that is a felony.

Additionally, a law enforcement officer shall seize anywatercraft, motor vehicle, aircraft, or other personal propertythat is classified as contraband under division (B) of section2933.42 of the Revised Code if the underlying offense involved inthe violation of division (A) of that section that resulted inthewatercraft, motor vehicle, aircraft, or personal propertybeingclassified as contraband, is a felony.

(2) If a law enforcement officer seizes property that istitled or registered under law, including a motor vehicle,pursuant to division (A)(1) of this section, the officer or theofficer'semploying law enforcement agency shall notify the ownerof theseizure. The notification shall be given to the owner atthe owner's lastknown address within seventy-two hours after theseizure,and may be given orally by any means, includingtelephone, or bycertified mail, return receipt requested.

If the officer or the officer's agency is unable to providethenotice required by this division despite reasonable, goodfaithefforts to do so, the exercise of the reasonable, good faithefforts constitutes fulfillment of the notice requirement imposedby this division.

(B)(1) A motor vehicle seized pursuant to division (A)(1)ofthis section and the contents of the vehicle may be retainedfor areasonable period of time, not to exceed seventy-two hours,forthe purpose of inspection, investigation, and the gatheringofevidence of any offense or illegal use.

At any time prior to the expiration of the seventy-two-hourperiod, the law enforcement agency that seized the motor vehiclemay petition the court of common pleas of the county that hasjurisdiction over the underlying criminal case or administrativeproceeding involved in the forfeiture for an extension of theseventy-two-hour period if the motor vehicle or its contents areneeded as evidence or if additional time is needed for theinspection, investigation, or gathering of evidence. Upon thefiling of such a petition, the court immediately shall schedule ahearing to be held at a time as soon as possible after thefiling,but in no event at a time later than the end of the nextbusinessday subsequent to the day on which the petition wasfiled, andupon scheduling the hearing, immediately shall notifythe owner ofthe vehicle, at the address at which notification ofthe seizurewas provided under division (A) of this section, ofthe date,time, and place of the hearing. If the court, at thehearing,determines that the vehicle or its contents, or both,are neededas evidence or that additional time is needed for theinspection,investigation, or gathering of evidence, the courtmay grant thepetition and issue an order authorizing theretention of thevehicle or its contents, or both, for anextended period asspecified by the court in its order. An orderextending a periodof retention issued under this division may berenewed.

If no petition for the extension of the initialseventy-two-hour period has been filed, prior to the expirationofthat period, under this division, if the vehicle was not inthecustody and control of the owner at the time of its seizure,andif, at the end of that seventy-two-hour period, the owner ofthevehicle has not been charged with an offense oradministrativeviolation that includes the use of the vehicle asan element andhas not been charged with any other offense oradministrativeviolation in the actual commission of which themotor vehicle wasused, the vehicle and its contents shall bereleased to its owneror the owner's agent, provided that the lawenforcement agencythat seized the vehicle may require proof ofownership of thevehicle, proof of ownership or legal possessionof the contents,and an affidavit of the owner that the owner neitherknew of norexpressly or impliedly consented to the use of thevehicle thatresulted in its forfeiture as conditions precedentto release. Ifa petition for the extension of the initialseventy-two-hourperiod has been filed, prior to the expirationof that period,under this division but the court does not grantthe petition, ifthe vehicle was not in the custody and controlof the owner at thetime of its seizure, and if, at the end ofthat seventy-two-hourperiod, the owner of the vehicle has notbeen charged with anoffense or administrative violation thatincludes the use of thevehicle as an element and has not beencharged with any otheroffense or administrative violation in theactual commission ofwhich the motor vehicle was used, thevehicle and its contentsshall be released to its owner or the owner's agent,provided thatthe court may require the proof andaffidavit described in thepreceding sentence as conditionsprecedent to release. If theinitial seventy-two-hour period hasbeen extended under thisdivision, the vehicle and its contentsto which the extensionapplies may be retained in accordance withthe extension order.If, at the end of that extended period, theowner of the vehiclehas not been charged with an offense oradministrative violationthat includes the use of the vehicle asan element and has notbeen charged with any other offense oradministrative violation inthe actual commission of which themotor vehicle was used, and ifthe vehicle was not in the custodyand control of the owner at thetime of its seizure, the vehicleand its contents shall bereleased to its owner or the owner's agent,provided that thecourt may require the proof and affidavitdescribed in the thirdpreceding sentence as conditions precedentto release. In casesin which the court may require proof andaffidavits as conditionsprecedent to release, the court also mayrequire the posting of abond, with sufficient sureties approvedby the court, in an amountequal to the value of the property tobe released, as determinedby the court, and conditioned upon thereturn of the property tothe court if it is forfeited under thissection, as a furthercondition to release. If, at the end ofthe initialseventy-two-hour period or at the end of any extendedperiodgranted under this section, the owner has been chargedwith anoffense or administrative violation that includes the useof thevehicle as an element or has been charged with anotheroffense oradministrative violation in the actual commission ofwhich themotor vehicle was used, or if the vehicle was in thecustody andcontrol of the owner at the time of its seizure, thevehicle andits contents shall be retained pending disposition ofthe charge,provided that upon the filing of a motion for releaseby theowner, if the court determines that the motor vehicle oritscontents, or both, are not needed as evidence in theunderlyingcriminal case or administrative proceeding, the courtmay permitthe release of the property that is not needed asevidence to theowner; as a condition precedent to a release of that nature,thecourt may require the owner to execute a bond withthe court. Anybond so required shall be in an amount equal tothe value of theproperty to be released, as determined by thecourt, shall havesufficient sureties approved by the court, andshall beconditioned upon the return of the property to the courtto whichit is forfeited under this section.

The final disposition of a motor vehicle seized pursuant todivision (A)(1) of this section shall be determined in accordancewith division (C) of this section.

(2) Pending a hearing pursuant to division (C) of thissection, and subject to divisions (B)(1) and (C) of this section,any property lawfully seized pursuant to division (A) of thissection because it was contraband of a type described in division(A)(13)(b), (d), (e),(f), (g), (h), (i), or (j) of section2901.01 of the Revised Code shall not be subject to replevin orother action in any court and shall not be subject to releaseuponrequest of the owner, and no judgment shall be enforcedagainstthe property. Pending the hearing, and subject todivisions(B)(1) and (C) of this section, the property shall bekept in thecustody of the law enforcement agency responsible forits seizure.

Pending a hearing pursuant to division (C) of this section,and notwithstanding any provisions of division (B)(1) or (C) ofthis section to the contrary, any property lawfully seizedpursuant to division (A) of this section because it wascontrabandof a type described in division (A)(13)(a) or(c) of section2901.01 of the Revised Code shall not besubject to replevin orother action in any court and shall not be subjectto release uponrequest of the owner, and no judgment shall beenforced againstthe property. Pending the hearing, andnotwithstanding anyprovisions of division (B)(1) or (C) of thissection to thecontrary, the property shall be kept in thecustody of the lawenforcement agency responsible for itsseizure.

A law enforcement agency that seizes property underdivision(A) of this section because it was contraband of anytypedescribed in division (A)(13) of section 2901.01 ordivision (B)of section 2933.42 of the Revised Code shall maintain an accuraterecord of each item of property so seized, which record shallinclude the date on which each item was seized, the manner anddate of its disposition, and if applicable, the name of thepersonwho received the item; however, the record shall notidentify orenable the identification of the individual officerwho seized theitem. The record of property of that nature that nolonger isneeded as evidence shall be open to public inspectionduring theagency's regular business hours. Each law enforcementagencythat, during any calendar year, seizes property underdivision (A)of this section because it was contraband shallprepare a reportcovering the calendar year that cumulates all ofthe informationcontained in all of the records kept by theagency pursuant tothis division for that calendar year, andshall send a copy of thecumulative report, no later than thefirst day of March in thecalendar year following the calendaryear covered by the report,to the attorney general. Each reportreceived by the attorneygeneral is a public record open forinspection under section149.43 of the Revised Code. Not later than thefifteenth day ofApril in the calendar yearin which the reports are received, theattorneygeneral shall send to thepresident of the senate and thespeaker of the house ofrepresentatives a written notificationthat does all of thefollowing:

(a) Indicates that the attorney general has received fromlaw enforcement agencies reportsof the type described in thisdivision that cover the previouscalendar year and indicates thatthe reports were received under thisdivision;

(b) Indicates that the reportsare open for inspection undersection 149.43 of theRevised Code;

(c) Indicates that the attorney generalwill provide a copyof any or all of the reports to thepresident of the senate or thespeaker of the house ofrepresentatives upon request.

(C) The prosecuting attorney, village solicitor, citydirector of law, or similar chief legal officer who hasresponsibility for the prosecution of the underlying criminalcaseor administrative proceeding, or the attorney general if theattorney general has that responsibility, shall file a petitionfor the forfeiture, to the seizing law enforcement agency of thecontraband seized pursuant to division (A) of this section. Thepetition shall be filed in the court that has jurisdiction overthe underlying criminal case or administrative proceedinginvolvedin the forfeiture. If the property was seized on thebasis ofboth a criminal violation and an administrativeregulationviolation, the petition shall be filed by the officerand in thecourt that is appropriate in relation to the criminalcase.

The petitioner shall conduct or cause to be conducted asearch of the appropriate public records that relate to theseizedproperty for the purpose of determining, and shall make orcauseto be made reasonably diligent inquiries for the purpose ofdetermining, any person having an ownership or security interestin the property. The petitioner then shall give notice of theforfeiture proceedings by personal service or by certified mail,return receipt requested, to any persons known, because of theconduct of the search, the making of the inquiries, or otherwise,to have an ownership or security interest in the property, andshall publish notice of the proceedings once each week for twoconsecutive weeks in a newspaper of general circulation in thecounty in which the seizure occurred. The notices shall bepersonally served, mailed, and first published at least fourweeksbefore the hearing. They shall describe the propertyseized;state the date and place of seizure; name the lawenforcementagency that seized the property and, if applicable,that isholding the property; list the time, date, and place ofthehearing; and state that any person having an ownership orsecurityinterest in the property may contest the forfeiture.

If the property seized was determined by the seizing lawenforcement officer to be contraband because of its relationshipto an underlying criminal offense or administrative violation, noforfeiture hearing shall be held under this section unless theperson pleads guilty to or is convicted of the commission of, oran attempt or conspiracy to commit, the offense or a differentoffense arising out of the same facts and circumstances or unlessthe person admits or is adjudicated to have committed theadministrative violation or a different violation arising out ofthe same facts and circumstances; a forfeiture hearing shall beheld in a case of that nature no later than forty-five days aftertheconviction or the admission or adjudication of the violation,unless the time for the hearing is extended by the court for goodcause shown. The owner of any property seized because of itsrelationship to an underlying criminal offense or administrativeviolation may request the court to release the property to theowner. Uponreceipt of a request of that nature, if the courtdetermines that theproperty is not needed as evidence in theunderlying criminalcase or administrative proceeding, the courtmay permit therelease of the property to the owner. As acondition precedentto a release of that nature, the court mayrequire the owner to execute abond with the court. Any bond sorequired shall have sufficientsureties approved by the court,shall be in a sum equal to thevalue of the property, asdetermined by the court, and shall beconditioned upon the returnof the property to the court if theproperty is forfeited underthis section. Any property seizedbecause of its relationship toan underlying criminal offense oradministrative violation shallbe returned to its owner ifcharges are not filed in relation tothat underlying offense orviolation within thirty days after theseizure, if charges of that nature arefiled and subsequently aredismissed, or if charges of that nature are filedand the personcharged does not plead guilty to and is not convicted of theoffense or does not admit and is not found to have committed theviolation.

If the property seized was determined by the seizing lawenforcement officer to be contraband other than because of arelationship to an underlying criminal offense or administrativeviolation, the forfeiture hearing under this section shall beheldno later than forty-five days after the seizure, unless thetimefor the hearing is extended by the court for good causeshown.

Where possible, a court holding a forfeiture hearing underthis section shall follow the Rules of Civil Procedure. When ahearing is conducted under this section, property shall beforfeited upon a showing, by a preponderance of the evidence, bythe petitioner that the person from which the property was seizedwas in violation of division (A) of section 2933.42 of theRevisedCode. If that showing is made, the court shall issue anorder offorfeiture. If an order of forfeiture is issued inrelation tocontraband that was released to the owner or the owner's agentpursuant to this division or division (B)(1) of thissection, theorder shall require the owner to deliver theproperty, by aspecified date, to the law enforcement agency thatemployed thelaw enforcement officer who made the seizure of theproperty, andthe court shall deliver a copy of the order to theowner or send acopy of it by certified mail, return receiptrequested, to theowner at the address to which notice of theseizure was givenunder division (A)(2) of this section. Exceptas otherwiseprovided in this division, all rights, interest, andtitle to theforfeited contraband vests in the state, effectivefrom the dateof seizure.

No property shall be forfeited pursuant to this division ifthe owner of the property establishes, by a preponderance of theevidence, that the owner neither knew, nor should have known afterareasonable inquiry, that the property was used, or was likely tobe used, in a crime or administrative violation. No bona fidesecurity interest shall be forfeited pursuant to this division ifthe holder of the interest establishes, by a preponderance of theevidence, that the holder of the interest neither knew, nor shouldhave knownafter areasonable inquiry, that the property was used,or likely to beused, in a crime or administrative violation, thatthe holder of the interestdid notexpressly or impliedly consentto the use of the property in acrime or administrative violation,and that the security interestwas perfected pursuant to law priorto the seizure. If theholder of the interest satisfies the courtthat theserequirements are met, the interest shall be preservedby thecourt. In a case of that nature, the court shall eitherorder that theagency to which the property is forfeited reimbursethe holder of the interestto the extent of the preserved interestor order that theholder be paid for the interest from theproceeds of anysale pursuant to division (D) of this section.

(D)(1) Contraband ordered forfeited pursuant to thissectionshall be disposed of pursuant to divisions (D)(1) to (7)ofsection 2933.41 of the Revised Code or, if the contraband isnotdescribed in those divisions, may be used, with the approvalofthe court, by the law enforcement agency that has custody ofthecontraband pursuant to division (D)(8) of that section. Inthecase of contraband not described in any of those divisionsand ofcontraband not disposed of pursuant to any of thosedivisions, thecontraband shall be sold in accordance with thisdivision or, inthe case of forfeited moneys, disposed of inaccordance with thisdivision. If the contraband is to be sold,the prosecutingattorney shall cause a notice of the proposedsale of thecontraband to be given in accordance with law, andthe propertyshall be sold, without appraisal, at a publicauction to thehighest bidder for cash. The proceeds of a saleand forfeitedmoneys shall be applied in the following order:

(a) First, to the payment of the costs incurred inconnection with the seizure of, storage of, maintenance of, andprovision of security for the contraband, the forfeitureproceeding, and, if any, the sale;

(b) Second, the remaining proceeds or forfeited moneysaftercompliance with division (D)(1)(a) of this section, to thepaymentof the balance due on any security interest preservedpursuant todivision (C) of this section;

(c) Third, the remaining proceeds or forfeited moneysaftercompliance with divisions (D)(1)(a) and (b) of thissection, asfollows:

(i) If the forfeiture was ordered in a juvenile court, tenpercent to one or more alcohol and drug addiction treatmentprograms that arecertified by the department of alcohol and drugaddiction services undersection 3793.06 of the Revised Code andthat are specified in the order offorfeiture. Ajuvenile courtshall not certify an alcohol or drug addiction treatmentprogramin the order of forfeiture unless the program is a certifiedalcoholand drug addiction treatment program and, except asprovided in division(D)(1)(c)(i) of this section, unless theprogramis located in the county in which the court that ordersthe forfeiture islocated or in a contiguous county. If nocertified alcohol and drug addictiontreatment program is locatedin any of those counties, the juvenile court mayspecify in theorder a certified alcohol and drug addiction treatment programlocated anywhere within this state.

(ii) If the forfeiture was ordered in a juvenile court,ninetyper cent, and if the forfeiture was ordered in a courtother than a juvenilecourt, one hundred per cent to the lawenforcement trust fund of theprosecutingattorney and to the lawenforcement trust fund of the countysheriff if the county sheriffmade the seizure, to the lawenforcement trust fund of a municipalcorporation if its policedepartment made the seizure, to the lawenforcement trust fund ofa township if the seizure was made by atownship policedepartment, township police district police force,or office of atownship constable, to the law enforcement trustfund of a parkdistrict created pursuant to section 511.18 or1545.01 of theRevised Code if the seizure was made by the parkdistrict policeforce or law enforcement department, to the ~~state~~highway patrol statecontraband, forfeiture, and other fund if the statehighwaypatrol made the seizure, to the department ofpublicsafety investigative unit contraband, forfeiture, andother fundif the investigative unit of thedepartment of publicsafety madetheseizure, to the department of taxation enforcement fund if the department of taxation made the seizure, totheboard of pharmacy drug law enforcement fundcreated by division (B)(1) of section 4729.65 of the Revised Codeif the board made the seizure, or to the treasurer of state fordeposit into the peace officer training commission fund if a statelaw enforcement agency, other than the state highway patrol, theinvestigative unit of the department of public safety, the enforcement division of the department of taxation, or thestateboard of pharmacy,made the seizure. The prosecutingattorney may decline to acceptany of the remaining proceeds orforfeited moneys, and, if the prosecutingattorney sodeclines,the remaining proceeds or forfeited moneys shall beapplied to thefund described in this division that relates tothe lawenforcement agency that made the seizure.

A law enforcement trust fund shall be established by theprosecuting attorney of each county who intends to receive anyremaining proceeds or forfeited moneys pursuant to this division,by the sheriff of each county, by the legislative authority ofeach municipal corporation, by the board of township trustees ofeach township that has a township police department, townshippolice district police force, or office of the constable, and bythe board of park commissioners of each park district createdpursuant to section 511.18 or 1545.01 of the Revised Code thathasa park district police force or law enforcement department,forthe purposes of this division. There is hereby created inthestate treasury the ~~state~~ highway patrol state contraband,forfeiture,and other fund, the department ofpublic safety investigative unitcontraband, forfeiture, andother fund, the department of taxation enforcement fund, andthepeace officertraining commission fund, for the purposesdescribed in thisdivision.

Proceeds or forfeited moneys distributed to any municipalcorporation, township, or park district law enforcement trustfundshall be allocated from the fund by the legislativeauthority onlyto the police department of the municipalcorporation, by theboard of township trustees only to thetownship police department,township police district policeforce, or office of the constable,and by the board of parkcommissioners only to the park districtpolice force or lawenforcement department.

Additionally, no proceeds or forfeited moneys shall beallocated to or used by the state highway patrol, the departmentof public safety, the department of taxation, the state board of pharmacy, or a countysheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department unless the state highwaypatrol, department of public safety, department of taxation, state board of pharmacy,sheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department has adopted a writteninternalcontrol policy under division (D)(3) of this sectionthataddresses the use of moneys received from the ~~state~~ highwaypatrol statecontraband, forfeiture, and other fund, thedepartment of publicsafety investigative unitcontraband, forfeiture, and other fund,the department of taxation enforcement fund, the board of pharmacy drug lawenforcement fund, or theappropriate law enforcement trust fund.

The ~~state~~highway patrol state contraband, forfeiture, and otherfund,the department of public safety investigativeunitcontraband, forfeiture, and other fund, the department of taxation enforcement fund, and a lawenforcementtrust fund shall be expended only in accordance withthe writteninternal control policy so adopted by the recipient,and, subjectto the requirements specified in division(D)(3)(a)(ii) of thissection, only to pay the costs ofprotracted or complexinvestigations or prosecutions, to providereasonable technicaltraining or expertise, to provide matchingfunds to obtain federalgrants to aid law enforcement, in thesupport of DARE programs orother programs designed to educateadults or children with respectto the dangers associated withthe use of drugs of abuse,to paythe costs of emergency action taken under section 3745.13 of theRevised Code relative to the operation of an illegalmethamphetamine laboratory if the forfeited property or moneyinvolved was that of a person responsible for the operation of thelaboratory, or for other law enforcementpurposes that thesuperintendent of the state highway patrol,department of publicsafety, department of taxation, prosecuting attorney, countysheriff, legislativeauthority, board of township trustees, orboard of parkcommissioners determines to be appropriate. Theboard of pharmacydrug law enforcement fund shall be expendedonly in accordancewith the written internal control policy soadopted by the boardand only in accordance with section 4729.65of the Revised Code,except that it also may be expended to pay the costs of emergencyaction taken under section 3745.13 of the Revised Code relative tothe operation of an illegal methamphetamine laboratory if theforfeited property or money involved was that of a personresponsible for the operation of the laboratory. The ~~state~~highway patrol state contraband,forfeiture, and other fund, thedepartment ofpublic safety investigative unit contraband,forfeiture, andother fund, the department of taxation enforcement fund, theboardof pharmacy drug lawenforcementfund, and a law enforcement trust fund shall not beused to meetthe operating costs of the state highway patrol, oftheinvestigativeunit of the department ofpublic safety, of the department of taxation enforcement division, of thestate board of pharmacy, ofany political subdivision, or of anyoffice of a prosecutingattorney or county sheriff that areunrelated to law enforcement.

Proceeds and forfeited moneys that are paid into the statetreasury to be deposited into the peace officer trainingcommission fund shall be used by the commissiononly to pay thecosts of peaceofficer training.

Any sheriff or prosecuting attorney who receives proceedsorforfeited moneys pursuant to this division during any calendaryear shall file a report with the county auditor, no later thanthe thirty-first day of January of the next calendar year,verifying that the proceeds and forfeited moneys were expendedonly for the purposes authorized by this division and division(D)(3)(a)(ii) of this section and specifying the amounts expendedfor each authorized purpose. Any municipal corporation policedepartment that is allocated proceeds or forfeited moneys from amunicipal corporation law enforcement trust fund pursuant to thisdivision during any calendar year shall file a report with thelegislative authority of the municipal corporation, no later thanthe thirty-first day of January of the next calendar year,verifying that the proceeds and forfeited moneys were expendedonly for the purposes authorized by this division and division(D)(3)(a)(ii) of this section and specifying the amounts expendedfor each authorized purpose. Any township police department,township police district police force, or office of the constablethat is allocated proceeds or forfeited moneys from a townshiplawenforcement trust fund pursuant to this division during anycalendar year shall file a report with the board of townshiptrustees of the township, no later than the thirty-first day ofJanuary of the next calendar year, verifying that the proceedsandforfeited moneys were expended only for the purposesauthorized bythis division and division (D)(3)(a)(ii) of thissection andspecifying the amounts expended for each authorizedpurpose. Anypark district police force or law enforcementdepartment that isallocated proceeds or forfeited moneys from apark district lawenforcement trust fund pursuant to thisdivision during anycalendar year shall file a report with theboard of parkcommissioners of the park district, no later thanthe thirty-firstday of January of the next calendar year,verifying that theproceeds and forfeited moneys were expendedonly for the purposesauthorized by this division and division(D)(3)(a)(ii) of thissection and specifying the amounts expendedfor each authorizedpurpose. The superintendent of the statehighway patrol shallfile a report with the attorney general, nolater than thethirty-first day of January of each calendar year,verifying thatproceeds and forfeited moneys paid into the ~~state~~highway patrol statecontraband, forfeiture, and other fund pursuant tothis divisionduring the prior calendar year were used by thestate highwaypatrol during the prior calendar year only for thepurposesauthorized by this division and specifying the amountsexpendedfor each authorized purpose. The executive director ofthe stateboard of pharmacy shall file a report with the attorneygeneral,no later than the thirty-first day of January of eachcalendaryear, verifying that proceeds and forfeited moneys paidinto theboard of pharmacy drug law enforcement fund during thepriorcalendar year were used only in accordance with section4729.65 ofthe Revised Code and specifying the amounts expendedfor eachauthorized purpose. The peace officer trainingcommission shallfile a report with the attorney general, no later thanthethirty-first day of January of each calendar year, verifying thatproceeds and forfeited moneys paid into the peace officertrainingcommission fund pursuant to this divisionduring the priorcalendar year were used by the commission during thepriorcalendaryear only to pay the costs of peace officer training andspecifying the amount used for that purpose.

The tax commissioner shall file a report with the attorney general, not later than the thirty-first day of January of each calendar year, verifying that proceeds and forfeited moneys paid into the department of taxation enforcement fund pursuant to this division during the prior calendar year were used by the enforcement division during the prior calendar year to pay only the costs of enforcing the tax laws and specifying the amount used for that purpose.

(2) If more than one law enforcement agency issubstantiallyinvolved in the seizure of contraband that isforfeited pursuantto this section, the court ordering theforfeiture shall equitablydivide the proceeds or forfeitedmoneys, after calculating anydistribution to the law enforcementtrust fund of the prosecutingattorney pursuant to division(D)(1)(c) of this section, among anycounty sheriff whose officeis determined by the court to besubstantially involved in theseizure, any legislative authorityof a municipal corporationwhose police department is determinedby the court to besubstantially involved in the seizure, anyboard of townshiptrustees whose law enforcement agency isdetermined by the courtto be substantially involved in theseizure, any board of parkcommissioners of a park district whosepolice force or lawenforcement department is determined by thecourt to besubstantially involved in the seizure, the state boardofpharmacy if it is determined by the court to be substantiallyinvolved in the seizure, the investigative unit of the departmentofpublic safetyif itis determined by the court to besubstantially involved in theseizure, the enforcement division of the department of taxation if it is determined by the court to be substantially involved in the seizure and the state highwaypatrol if it is determined by thecourt to be substantiallyinvolved in the seizure. The proceedsor forfeited moneys shallbe deposited in the respective lawenforcement trust funds of thecounty sheriff, municipalcorporation, township, and parkdistrict, the board of pharmacydrug law enforcement fund, thedepartment of public safety investigativeunitcontraband,forfeiture, and other fund, the department of taxation enforcement fund, or the ~~state~~ highwaypatrol statecontraband,forfeiture, and other fund, in accordance withdivision (D)(1)(c)of this section. If a state law enforcementagency, other thanthe state highway patrol, the investigativeunit of the department ofpublic safety,the department of taxation, or the state board ofpharmacy, is determined by the court to besubstantially involvedin the seizure, the state agency'sequitable share of the proceedsand forfeited moneys shall bepaid to the treasurer of state fordeposit into the peace officertraining commission fund.

(3)(a)(i) Prior to being allocated or using any proceedsorforfeited moneys out of the ~~state~~ highway patrol state contraband,forfeiture, and other fund, the department ofpublic safetyinvestigative unit contraband, forfeiture, andother fund, the department of taxation enforcement fund, theboard ofpharmacy drug law enforcementfund, or a law enforcementtrust fund under division (D)(1)(c) ofthis section, the statehighway patrol, the department of public safety, the department of taxation, thestate boardof pharmacy, and a county sheriff,prosecuting attorney, municipalcorporation police department,township police department,township police district policeforce, office of the constable, orpark district police force orlaw enforcement department shalladopt a written internal controlpolicy that addresses the statehighway patrol's, department ofpublic safety's, department of taxation's, state board ofpharmacy's, sheriff's,prosecuting attorney's, policedepartment's, police force's,office of the constable's, or lawenforcement department's useand disposition of all the proceedsand forfeited moneys receivedand that provides for the keeping ofdetailed financial recordsof the receipts of the proceeds andforfeited moneys, the generaltypes of expenditures made out ofthe proceeds and forfeitedmoneys, the specific amount of eachgeneral type of expenditure,and the amounts, portions, andprograms described in division(D)(3)(a)(ii) of this section. Thepolicy shall not provide foror permit the identification of anyspecific expenditure that ismade in an ongoing investigation.

All financial records of the receipts of the proceeds andforfeited moneys, the general types of expenditures made out ofthe proceeds and forfeited moneys, the specific amount of eachgeneral type of expenditure by the state highway patrol, by thedepartment of public safety, by the department of taxation, by the state board of pharmacy, andby a sheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department, and the amounts, portions,and programs described in division (D)(3)(a)(ii) of this sectionare public records open for inspection under section 149.43 oftheRevised Code. Additionally, a written internal controlpolicyadopted under this division is a public record of that nature, andthe state highway patrol, the department of public safety, the department of taxation, thestate board of pharmacy, or the sheriff, prosecuting attorney,municipal corporation police department, township policedepartment, township police district police force, office of theconstable, or park district police force or law enforcementdepartment that adopted it shall comply with it.

(ii) The written internal control policy of a countysheriff, prosecuting attorney, municipal corporation policedepartment, township police department, township police districtpolice force, office of the constable, or park district policeforce or law enforcement department shall provide that at leastten per cent of the first one hundred thousand dollars ofproceedsand forfeited moneys deposited during each calendar yearin thesheriff's, prosecuting attorney's, municipalcorporation's,township's, or park district's law enforcementtrust fund pursuantto division (B)(7)(c)(ii) of section 2923.46or division(B)(8)(c)(ii) of section 2925.44 ofthe Revised Code, and at leasttwenty per cent of the proceedsand forfeited moneys exceeding onehundred thousand dollars thatare so deposited, shall be used inconnection with communitypreventive education programs. Themanner in which the describedpercentages are so used shall bedetermined by the sheriff,prosecuting attorney, department,police force, or office of theconstable after the receipt andconsideration of advice onappropriate community preventiveeducation programs from thecounty's board of alcohol, drugaddiction, and mental healthservices, from the county's alcoholand drug addiction servicesboard, or through appropriatecommunity dialogue. The financialrecords described in division(D)(3)(a)(i) of this section shallspecify the amount of theproceeds and forfeited moneys depositedduring each calendar yearin the sheriff's, prosecutingattorney's, municipal corporation's,township's, or parkdistrict's law enforcement trust fund pursuantto division(B)(7)(c)(ii) of section 2923.46 or division(B)(8)(c)(ii) ofsection 2925.44 of the Revised Code, the portionofthat amount that was used pursuant to the requirements of thisdivision, and the community preventive education programs inconnection with which the portion of that amount was so used.

As used in this division,"community preventive educationprograms" includes, but is not limited to, DARE programs andotherprograms designed to educate adults or children withrespect tothe dangers associated with the use of drugs of abuse.

(b) Each sheriff, prosecuting attorney, municipalcorporation police department, township police department,township police district police force, office of the constable,orpark district police force or law enforcement department thatreceives in any calendar year any proceeds or forfeited moneysoutof a law enforcement trust fund under division (D)(1)(c) ofthissection or uses any proceeds or forfeited moneys in its lawenforcement trust fund in any calendar year shall prepare areportcovering the calendar year that cumulates all of theinformationcontained in all of the public financial records keptby thesheriff, prosecuting attorney, municipal corporationpolicedepartment, township police department, township policedistrictpolice force, office of the constable, or park districtpoliceforce or law enforcement department pursuant to division(D)(3)(a)of this section for that calendar year, and shall senda copy ofthe cumulative report, no later than the first day ofMarch in thecalendar year following the calendar year covered bythe report,to the attorney general.

The superintendent of the state highway patrol shallpreparea report covering each calendar year in which the statehighwaypatrol uses any proceeds or forfeited moneys in the ~~state~~highwaypatrol state contraband, forfeiture, and other fund underdivision(D)(1)(c) of this section, that cumulates all of theinformationcontained in all of the public financial records keptby the statehighway patrol pursuant to division (D)(3)(a) ofthis section forthat calendar year, and shall send a copy of thecumulativereport, no later than the first day of March in thecalendar yearfollowing the calendar year covered by the report,to the attorneygeneral.

The department of public safety shall prepare a reportcovering each fiscal year in which the department uses anyproceeds or forfeited moneys in the department of public safetyinvestigative unit contraband, forfeiture, and other fund underdivision (D)(1)(c) of this section thatcumulates all of theinformation contained in all of the publicfinancial records keptby the department pursuant to division(D)(3)(a) of this sectionfor that fiscal year. The departmentshall send a copy of thecumulative report to the attorneygeneral no later than the firstday of August in the fiscal yearfollowing the fiscal year coveredby the report. The director ofpublic safety shall include in thereport a verification thatproceeds and forfeited moneys paid intothe department ofpublic safety investigative unit contraband,forfeiture, and other fund under division (D)(1)(c) of thissection during theprecedingfiscal year were used by thedepartment during that fiscal year only forthe purposesauthorized by that division and shall specify theamount used foreach authorized purpose.

The tax commissioner shall prepare a report covering each calendar year in which the department of taxation enforcement division uses any proceeds or forfeited moneys in the department of taxation enforcement fund under division (D)(1)(c) of this section, that cumulates all of the information contained in all of the public financial records kept by the department of taxation enforcement division pursuant to division (D)(3)(a) of this section for that calendar year, and shall send a copy of the cumulative report, not later than the first day of March in the calendar year following the calendar year covered by the report, to the attorney general.

The executive director of the state board of pharmacy shallprepare a report covering each calendar year in which the boarduses any proceeds or forfeited moneys in the board of pharmacydrug law enforcement fund under division (D)(1)(c) of thissection, that cumulates all of the information contained in allofthe public financial records kept by the board pursuant todivision (D)(3)(a) of this section for that calendar year, andshall send a copy of the cumulative report, no later than thefirst day of March in the calendar year following the calendaryear covered by the report, to the attorney general. Each reportreceived by the attorney general is a public record open forinspection under section 149.43 of the Revised Code. Not laterthan thefifteenth day of April in the calendar year inwhich thereports are received, the attorneygeneral shall send to thepresident of the senate and the speaker of the house ofrepresentatives a written notification that does all of thefollowing:

(i) Indicates that the attorney general has received fromentities or persons specified in this division reportsof the typedescribed in this division that cover the previouscalendar yearand indicates that the reports were received under thisdivision;

(ii) Indicates that the reportsare open for inspectionunder section 149.43 of theRevised Code;

(iii) Indicates that the attorney generalwill provide acopy of any or all of the reports to thepresident of the senateor the speaker of the house ofrepresentatives upon request.

(4)(a) A law enforcement agency that receives pursuant tofederal law proceeds from a sale of forfeited contraband, proceedsfromanother disposition of forfeited contraband, orforfeitedcontraband moneys shall deposit, use, and account forthe proceedsor forfeited moneys in accordance with, andotherwise comply with,the applicable federal law.

(b) If the state highway patrol receives pursuant to federallaw proceedsfrom a sale of forfeited contraband, proceeds fromanother disposition offorfeited contraband, or forfeitedcontraband moneys, the appropriategovernmental officials shalldeposit the proceeds into the ~~state~~ highway patrol federal contraband,forfeiture, andother fund ~~all~~, which is hereby created in the state treasury. All interest or other earnings derived from theinvestment of the proceeds or forfeited moneys shall be credited to the fund. The state highwaypatrolshall use and account for that interest or other earningsin accordance withthe applicable federal law.

(c) If the investigative unit of thedepartment of publicsafety receives pursuant to federal law proceeds from asale offorfeited contraband, proceeds from another disposition offorfeited contraband, or forfeited contraband moneys, theappropriate governmental officials shall deposit the proceeds into thedepartment ofpublic safety investigative unit~~contraband,forfeiture, and other~~ federal equitable share account fund ~~all~~, which is hereby created in the state treasury. All interestor other earnings derivedfrom the investment of the proceeds orforfeited moneys shall be credited to the fund. Thedepartment shall use and account for thatinterest or otherearnings in accordance with the applicablefederal law.

(d) If the tax commissioner receives pursuant to federal law proceeds from a sale of forfeited contraband, proceeds from another disposition of forfeited contraband, or forfeited contraband moneys, the appropriate governmental officials, shall deposit into the department of taxation enforcement fund all interest or other earnings derived from the investment of the proceeds or forfeited moneys. The department shall use and account for that interest or other earnings in accordance with the applicable federal law.

(e) Divisions (D)(1) to (3) of this section do not apply toproceedsorforfeited moneys received pursuant to federal law orto the interest or otherearnings that are derived from theinvestment of proceeds or forfeited moneysreceived pursuant tofederal law and that are described in division (D)(4)(b)of thissection.

(E) Upon the sale pursuant to this section of any propertythat is required to be titled or registered under law, the stateshall issue an appropriate certificate of title or registrationtothe purchaser. If the state is vested with title pursuant todivision (C) of this section and elects to retain property thatisrequired to be titled or registered under law, the state shallissue an appropriate certificate of title or registration.

(F) Notwithstanding any provisions of this section to thecontrary, any property that is lawfully seized in relation to aviolation of section 2923.32 of the Revised Code shall be subjectto forfeiture and disposition in accordance with sections 2923.32to 2923.36of the Revised Code; any property that is forfeitedpursuantto section 2923.44 or 2923.45 of the Revised Code inrelation to a violation of section2923.42 of the Revised Code orin relation to an act of a juvenile that is a violation ofsection2923.42 of the Revised Code may be subject to forfeiture anddisposition inaccordance with sections 2923.44 to 2923.47 of theRevised Code;and anyproperty that is forfeited pursuant tosection 2925.42 or 2925.43of the Revised Code in relation to afelony drug abuse offense,as defined in section 2925.01 of theRevised Code, or in relationto an act that, if committed by anadult, would be a felonydrug abuse offense of that nature, may besubject to forfeiture anddisposition in accordance with sections2925.41 to 2925.45 of the Revised Codeor this section.

(G) Any failure of a law enforcement officer or agency, aprosecuting attorney, village solicitor, city director of law, orsimilar chief legal officer, a court, or the attorney general tocomply with any duty imposed by this section in relation to anyproperty seized or with any other provision of this section inrelation to any property seized does not affect the validity ofthe seizure of the property, provided the seizure itself was madein accordance with law, and is not and shall not be considered tobe the basis for the suppression of any evidence resulting fromthe seizure of the property, provided the seizure itself was madein accordance with law.

(H) Contraband that has been forfeited pursuant todivision(C) of this section shall not be available for use topay any fineimposed upon a person who is convicted of or pleadsguilty to anunderlying criminal offense or a different offensearising out ofthe same facts and circumstances.

Sec. 2933.74. (A)(1) With respect to forfeitable propertyordered forfeited under section 2933.73 of the Revised Code, thecourt that issued the order, upon petition of the prosecutingattorney or attorney general who prosecuted the case, may do anyof the following:

(b) Award compensation to persons who provide informationthat results in a forfeiture under section 2933.73 of the RevisedCode;

(c) Take any other action to protect the rights ofinnocent persons that is in the interest of justice and that isconsistent with the purposes of sections 2933.71 to 2933.75 ofthe Revised Code.~~(2)~~

(2) The court shall maintain an accurate record of theactions it takes under division (A)(1) of this section withrespect to the forfeitable property ordered forfeited. Therecord is a public record open for inspection under section149.43 of the Revised Code.

(B)(1) Subject to division (A) of this section andnotwithstanding any contrary provision of section 2933.41 of theRevised Code, the prosecuting attorney or attorney general whoprosecuted the case shall order the disposal of forfeitableproperty ordered forfeited in any proceeding under section2933.73 of the Revised Code as soon as feasible, making dueprovisions for the rights of innocent persons, by any of thefollowing methods:

(d) If the property is contraband and is not needed forevidence in any pending criminal or civil proceeding, pursuant tosection 2933.41 or any other applicable section of the RevisedCode.

(2) Any interest in personal or real property not disposedof pursuant to division (B) of this section and not exercisableby, or transferable for value to, the state shall expire andshall not revert to the person who was convicted of or pleadedguilty to the medicaid fraud offense. No person who wasconvicted of or pleaded guilty to the medicaid fraud offense andno person acting in concert with a person who was convicted of orpleaded guilty to the medicaid fraud offense is eligible topurchase forfeited property from the state.

(3) Upon application of a person, other than the personwho was convicted of or pleaded guilty to the medicaid fraudoffense or a person acting in concert with or on behalf of theperson who was convicted of or pleaded guilty to the medicaidfraud offense, the court may restrain or stay the disposal of theforfeitable property pursuant to this division pending theconclusion of any appeal of the criminal case giving rise to theforfeiture or pending the determination of the validity of aclaim to or interest in the property pursuant to division (F) ofsection 2933.73 of the Revised Code, if the applicantdemonstrates that proceeding with the disposal of the propertywill result in irreparable injury, harm, or loss to theapplicant.

(4) The prosecuting attorney or attorney general whoprosecuted the case shall maintain an accurate record of eachitem of property disposed of pursuant to division (B) of this section, whichrecord shall include the date on which each item came into theprosecuting attorney's or attorney general'scustody, the manner and date of disposition, and, if applicable,the name of the person who received the item. The record shallnot identify or enable the identification of the individualofficer who seized the property, and the record is a publicrecord open for inspection under section 149.43 of the RevisedCode.

Each prosecuting attorney who disposes in any calendar yearof any item of property pursuant to division (B) of this section shall preparea report covering the calendar year that cumulates all of theinformation contained in all of the records the prosecutingattorney kept pursuant tothis division for that calendar year and shall send thecumulative report, no later than the first day of March in thecalendar year following the calendar year covered by the report,to the attorney general. No later than the first day of March inthe calendar year following the calendar year covered by thereport, the attorney general shall prepare a report covering thecalendar year that cumulates all of the records the attorneygeneral kept pursuantto this division for that calendar year. Each report received orprepared by the attorney general is a public record open forinspection under section 149.43 of the Revised Code. Not later thanthe fifteenth day of April in the calendar year following thecalendar year covered by the reports, the attorney generalshall send to the president of the senate and the speaker of the house ofrepresentatives a written notification that does all of thefollowing:

(a) Indicates that the attorney general has received fromprosecuting attorneys reportsof the type described in this division that cover the previouscalendar year and indicates that the reports were received under thisdivision;

(b) Lists the attorney general's own cumulative report coveringthe previous calendar year;

(d) Indicates that the attorney generalwill provide a copy of any or all of the reports to thepresident of the senate or the speaker of the house ofrepresentatives upon request.

(C)(1) The proceeds of the sale of all forfeitableproperty ordered forfeited pursuant to section 2933.73 of theRevised Code shall be deposited into the state treasury andcredited to the medicaid fraud investigation and prosecutionfund, which is hereby created.

(2) The proceeds credited to themedicaid fraud investigation and prosecution fund pursuant todivision (C)(1) of this section shall be disposed of in thefollowing order:

(a) To the payment of the fees and costs of the forfeitureand sale, including expenses of seizure, maintenance, and custodyof the property pending its disposition, advertising, and courtcosts;

(b) Except as otherwise provided in division (C)(2)(b) ofthis section, the remainder shall be paid to the law enforcementtrust fund of the prosecuting attorney that is establishedpursuant to division (D)(1)(c) of section 2933.43 of the RevisedCode or to the attorney general, and to the law enforcement trustfund of the county sheriff that is established pursuant to thatdivision if the county sheriff substantially conducted theinvestigation, to the law enforcement trust fund of a municipalcorporation that is established pursuant to that division if itspolice department substantially conducted the investigation, tothe law enforcement trust fund of a township that is establishedpursuant to that division if the investigation was substantiallyconducted by a township police department, township policedistrict police force, or office of a township constable, or tothe law enforcement trust fund of a park district createdpursuant to section 511.18 or 1545.01 of the Revised Code that isestablished pursuant to that division if the investigation wassubstantially conducted by its park district police force or lawenforcement department. The prosecuting attorney or attorneygeneral may decline to accept any of the remaining proceeds,and, if the prosecuting attorney or attorney general sodeclines, they shall beapplied to the fund described in division (C)(2)(b) of thissection that relates to the appropriate law enforcement agencythat substantially conducted the investigation.

If the state highway patrol substantially conducted theinvestigation, the director of budget and management shalltransfer the remaining proceeds to thestate highway patrol for deposit into the ~~state~~ highway patrol statecontraband, forfeiture, and other fund that is created bydivision (D)(1)(c) of section 2933.43 of the Revised Code. Ifthe state board of pharmacy substantially conducted theinvestigation, the director shall transfer the remainingproceeds to the board for deposit into theboard of pharmacy drug law enforcement fund that is created bydivision (B)(1) of section 4729.65 of the Revised Code. If astate law enforcement agency, other than the state highwaypatrol, the board, or the attorney general, substantiallyconducted the investigation, the director shall transfer theremaining proceeds to the treasurer ofstate for deposit into the peace officer trainingcommission fundthat is created by division (D)(1)(c) of section 2933.43 of theRevised Code.

The remaining proceeds that are paidto the attorney general shall be used and expended only inrelation to the investigation and prosecution of medicaid fraudoffenses or the activities identified in section 109.85 of theRevised Code, and those that are paid to a law enforcement trustfund or that are deposited into the ~~state~~ highway patrol statecontraband, forfeiture, and other fund, the board of pharmacydrug law enforcement fund, or the peace officer trainingcommissionfund pursuant to division (C)(2)(b) of this section shall beallocated, used, and expended only in accordance with division(D)(1)(c) of section 2933.43 of the Revised Code, only inaccordance with a written internal control policy adopted underdivision (D)(3) of that section, and, if applicable, only inaccordance with division (B)(1) of section 4729.65 of the RevisedCode. The annual reports that pertain to the funds and that arerequired by divisions (D)(1)(c) and (3)(b) of section 2933.43 ofthe Revised Code also shall address the remaining proceedsthat are paid or deposited into the fundspursuant to division (C)(2)(b) of this section.

(3) If more than one law enforcement agency substantiallyconducted the investigation, the court ordering the forfeitureshall equitably divide the remaining proceeds among the law enforcementagencies that substantiallyconducted the investigation, in the manner described in division(D)(2) of section 2933.43 of the Revised Code for the equitabledivision of contraband proceeds and forfeited moneys. Theequitable shares of the proceeds sodetermined by the court shall be paid or deposited into theappropriate funds specified in division (C)(2)(b) of thissection.

(D) As used in this section, "law enforcement agency"includes, but is not limited to, the state board of pharmacy.

Sec. 2949.092. If a person is convicted of or pleads guilty to an offense andthe court specifically is required, pursuant to section 2743.70 or, 2949.091, or 2949.093 ofthe Revised Code or pursuant to any other section of the Revised Code, toimpose a specified sumof money as costs in the case in addition to any other costs that the court isrequired or permitted by law to impose in the case, the court shall not waivethe payment of the specified additional court costs that the section of theRevised Code specifically requires the court to impose unless the courtdetermines that the offender is indigent and the court waives the payment ofall court costs imposed upon the offender.

Sec. 2949.093. (A) A board of county commissioners of any county containing fifty-five or more law enforcement agencies by resolution may elect to participate in a criminal justice regional information system, either by creating and maintaining a new criminal justice regional information system or by participating in an existing criminal justice regional information system.

(B) A county is not eligible to participate in any criminal justice regional information system unless it creates in its county treasury, pursuant to section 305.28 of the Revised Code, a criminal justice regional information fund.

(C) A county that elects to participate in a criminal justice regional information system shall obtain revenues to fund its participation by establishing an additional court cost not exceeding five dollars to be imposed for moving violations that occur in that county. The board of county commissioners of that county shall establish the amount of the additional court cost by resolution. The board shall give written notice to all courts located in that county that adjudicate or otherwise process moving violations that occur in that county of the county's election to participate in the system and of the amount of the additional court cost. Upon receipt of such notice, each recipient court shall impose that amount as an additional court cost for all moving violations the court adjudicates or otherwise processes, in accordance with divisions (D) and (E) of this section.

(D)(1) The court in which any person is convicted of or pleads guilty to any moving violation that occurs in a county that has elected to participate in a criminal justice regional information system shall impose the sum established by the board pursuant to division (C) of this section as costs in the case in addition to any other court costs that the court is required by law to impose upon the offender. The court shall not waive the payment of the additional court cost established by the board pursuant to division (C) of this section unless the court determines that the offender is indigent and waives the payment of all court costs imposed upon the indigent offender.

All such money collected during a month shall be transmitted on the first business day of the following month by the clerk of the court to the county treasurer of the county in which the court is located and thereafter the county treasurer shall deposit the money in that county's criminal justice regional information fund.

(2) The juvenile court in which a child is found to be a juvenile traffic offender for an act that is a moving violation occurring in a county participating in a criminal justice regional information system shall impose the sum established by the board pursuant to division (C) of this section as costs in the case in addition to any other court costs that the court is required by law to impose upon the juvenile traffic offender. The juvenile court shall not waive the payment of the additional court cost established by the board pursuant to division (C) of this section unless the court determines that the juvenile is indigent and waives the payment of all court costs imposed upon the indigent offender.

All such money collected during a month shall be transmitted on the first business day of the following month by the clerk of the court to the county treasurer of the county in which the juvenile court is located and thereafter the county treasurer shall deposit the money in that county's criminal justice regional information fund.

(E) Whenever a person is charged with any offense that is a moving violation and posts bail, the court shall add to the amount of the bail the set sum required to be paid by division (D)(1) of this section. The clerk of the court shall retain that set sum until the person is convicted, pleads guilty, forfeits bail, is found not guilty, or has the charges dismissed. If the person is convicted, pleads guilty, or forfeits bail, the clerk shall transmit the set sum to the county treasurer, who shall deposit it in the county criminal justice regional information fund. If the person is found not guilty or the charges are dismissed, the clerk shall return the set sum to the person.

(F) No person shall be placed or held in a detention facility as defined in section 2921.01 of the Revised Code for failing to pay the court cost or bail that is required to be paid by this section.

(G)(1) Except as provided in division (G)(2) of this section, all funds collected by a county under this section shall be used by that county only to pay the costs it incurs in creating and maintaining a new criminal justice regional information system or to pay the costs it incurs in participating in an existing criminal justice regional information system.

(2) If the board of county commissioners of a county determines that the funds in that county's criminal justice regional information fund are more than sufficient to satisfy the purpose for which the additional court cost described in division (C) of this section was imposed, the board may declare a surplus in the fund. The county may expend the surplus only to pay the costs it incurs in improving the law enforcement computer technology of local law enforcement agencies located in that county.

(1) "Moving violation" means any violation of any statute or ordinance, other than section 4513.263 of the Revised Code or an ordinance that is substantially equivalent to that section, that regulates the operation of vehicles, streetcars, or trackless trolleys on highways or streets or that regulates size or load limitations or fitness requirements of vehicles. "Moving violation" does not include the violation of any statute or ordinance that regulates pedestrians or the parking of vehicles.

(2) "Bail" means cash, a check, a money order, a credit card, or any other form of money that is posted by or for an offender pursuant to sections 2937.22 to 2937.46 of the Revised Code, Criminal Rule 46, or Traffic Rule 4 to prevent the offender from being placed or held in a detention facility, as defined in section 2921.01 of the Revised Code.

(3) "Criminal justice regional information system" means a governmental computer system that serves as a cooperative between political subdivisions in a particular region for the purpose of providing a consolidated computerized information system for criminal justice agencies in that region.

Sec. 2971.05. (A)(1) After control over an offender's serviceof a prison term imposed pursuant to division (A)(3) of section2971.03 of the Revised Code has beentransferred pursuant to section 2971.04 of the Revised Code to the court, thecourt shallschedule, within thirtydays of any of the following, a hearing on whether to modify in accordancewithdivision (C) of this section the requirement that the offender servethe entire prison term in a state correctionalinstitution or to terminate theprison term inaccordance with division (D) of this section:

(a) Control over the offender's service of a prison termis transferred pursuant to section 2971.04 of the Revised Code to the court,and no hearingto modify therequirement has been held;

(b) Two years elapse after the most recent prior hearing heldpursuant to division (A)(1) or (2) of this section;

(c) The prosecuting attorney, the department of rehabilitationandcorrection, or the adult parole authority requests the hearing, and recommendsthat the requirement be modified or that the offender's prisonterm be terminated.

(2) After control over the offender's service of a prison termhas been transferred pursuant to section 2971.04 of the Revised Code to the court, the court,within thirty days of either of the following, shall conduct a hearing onwhetherto modify in accordance with division (C) of this section therequirement that the offender serve the entire prison term in a statecorrectionalinstitution, whether to continue, revise, or revoke an existing modificationofthat requirement, or whether to terminate the term in accordance with division(D)of this section:

(a) The requirement that the offender serve the entire prisonterm in a state correctional institution has been modified, and the offenderis taken into custody for any reason.

(b) Thedepartment of rehabilitation and correction or the prosecuting attorneynotifies the court pursuant to section 2971.06 of the Revised Code regarding a known orsuspected violation of a term or condition of themodification or a belief that there is a substantial likelihood that theoffender has committed or is about to commit a sexually violent offense.

(3) After control over the offender's service of a prison termhas been transferred pursuant to section 2971.04 of the Revised Code to the court, the court,in any of the following circumstances, may conduct a hearing within thirtydays to determine whether to modify in accordance with division (C)of this section the requirement that the offender serve the entire prison termin a state correctional institution, whether to continue, revise, or revoke anexisting modification of that requirement, or whether to terminate thesentence in accordancewith division (D) of this section:

(c) One or more examiners who have conducted a psychologicalexamination and assessment of the offender file a statement that states thatthere no longer is a likelihood that the offender will engage in the future ina sexually violent offense.

(B)(1) Before a court holds a hearing pursuant to division(A) of this section, the court shall provide notice of the date,time,place, and purpose of the hearing to the offender, the prosecuting attorney,the department of rehabilitation and correction, and the adult paroleauthorityand shall request the department to preparepursuant to section 5120.61 of the Revised Code an update of the most recent risk assessmentand report relative to the offender. The offenderhas the right to be present at any hearing held under this section. At the hearing, theoffender and the prosecuting attorney may make a statementand present evidence as to whether the requirement shouldor should not be modified, whether the existing modification of therequirement should be continued, revised, or revoked, and whether the prisonterm should or should not be terminated.

(2) At a hearing held pursuant to division (A) of this section,the court may and, if the hearing is held pursuant to division(A)(1)(a), (1)(b), or (3)(c)of this section, shall determine by clear and convincing evidence whetherthe offender is unlikely to commit a sexually violentoffense in the future.

(3) At the conclusion of the hearing held pursuant to division(A)of this section, the court may order that the requirement that the offenderserve the entire prison term in a state correctional institution be continued,that the requirement be modified pursuant to division (C) of thissection, that an existing modification be continued, revised, or revokedpursuant to division (C) of this section, or that the prison term beterminated pursuant to division (D) of this section.

(C)(1) If, at the conclusion of a hearing held pursuant todivision(A) of this section, the court determines by clear and convincingevidence that the offender will not represent a substantialrisk of physical harm to others, the court may modify the requirement that theoffender serve the entire prison term in a state correctional institution in amanner that the court considers appropriate. If the court modifies the requirement, the offender is subject to supervision under division (E) of this section.

(2) The modification of the requirement does not terminate the prison termbut servesonly to suspend the requirement that the offender serve the entire term in astate correctional institution. The prison term shall remain ineffect for the offender's entire life unless the court terminates the prisonterm pursuant to division (D) of this section. The offender shallremain under the jurisdiction of the court for the offender's entire lifeunless the court so terminates the prison term. The modification of therequirement does not terminate theclassification of the offender, as described in division(F) of section 2971.03 of the Revised Code, as a sexual predator forpurposes of Chapter 2950. of the Revised Code, and the offender is subject to supervision under division (E) of this section.

(3) If the court revokes the modification under consideration, the courtshall order that the offender be returned to the custody of the department ofrehabilitation and correction to continue serving the prison term to which themodification applied, and section 2971.06 of the Revised Code applies regarding the offender.

(D)(1) If, at the conclusion of a hearing held pursuant todivision (A) of this section, the court determines by clear andconvincing evidence that the offender is unlikely to commit asexually violent offense in the future, the court mayterminate the offender's prison term imposed under division(A)(3) of section 2971.03 of the Revised Code, subject to the offendersatisfactorilycompleting the period of conditional release required by this division and compliance with division (E) of this section. Ifthe court terminates the prison term, the court shall place the offender onconditional release for five years, require the offender to comply with division (E) of this section, notify the adult parole authority of itsdetermination and of the termination of the prison term, and order the adultparole authority to supervise the offender during the five-year period ofconditional release and to supervise the offender pursuant to division (E) of this section. Upon receipt of a notice from a court pursuant to thisdivision, theadult parole authority shall supervise the offender who is the subject of thenotice during the five-year period of conditional release, periodically notifythe court of the offender's activitiesduring that five-year period of conditional release, and file with the courtno later than thirty days prior to the expiration of the five-year period ofconditional release a written recommendation as to whether the termination ofthe offender's prison term should be finalized, whether the period ofconditional release should be extended, or whether another type of actionauthorized pursuant to this chapter should be taken.

Upon receipt of a recommendation of the adult parole authority filedpursuant to this division, the court shall hold ahearing to determine whether to finalize the termination of the offender'sprison term, toextend the period of conditional release, or to take anothertype of action authorized pursuant to this chapter. The court shall hold thehearing no later than the date on which the five-year period of conditionalrelease terminates and shall provide notice of the date, time, place, andpurpose of the hearing to the offender and to the prosecuting attorney. Atthe hearing, the offender, the prosecuting attorney, and the adultparole authority employee who supervised the offender during the period ofconditional release may make a statement and present evidence.

(2) If the court determines to extend an offender's period of conditionalrelease, it may do so for additional periods of one year in the same manneras the original period of conditional release, and except as otherwisedescribed in this division, all procedures and requirements that applied tothe original period of conditional release apply to the additional period ofextended conditional release unless the court modifies a procedure orrequirement. If an offender's period of conditional release is extended asdescribed in this division, all references to a five-year period ofconditional release that are contained in division (D)(1) of thissection shall be construed, in applying the provisions of that division to theextension, as being references to the one-year period of the extension of theconditional release.

If the court determines to take another type of action authorized pursuantto this chapter, it may do so in the same manner as if the action had beentaken at any other stage of the proceedings under this chapter. As used in this division, "another type of action" includes the revocation ofthe conditional release and the return of the offender to a state correctionalinstitution to continue to serve the prison term.

If the court determines to finalize the termination of the offender'sprison term,it shall notify the department of rehabilitation andcorrection, the department shall enter into its records a final release andissue to the offender a certificate of final release, and the prison termthereafter shall be considered completed and terminated in everyway.

The termination of the offender's prison term pursuant todivision (D)(1) or (2) of thissection does not affect the classification of theoffender, as described in division(F) of section 2971.03 of the Revised Code, as a sexual predator forpurposes of Chapter 2950. of the Revised Code, and does not terminate the adult parole authority's supervision of a sexually violent predator with an active global positioning system device, pursuant to division (E) of this section. The classification of the offender as a sexual predator is permanent and continues until the offender's death as described in division (D)(2) of section 2950.09 of the Revised Code.

(E) The adult parole authority shall supervise an offender whose prison term is modified as provided in division (C) of this section or whose prison term is terminated as provided in division (D) of this section with an active global positioning system device during any time period in which the offender is not incarcerated in a state correctional institution. Unless the court removes the offender's classification as a sexually violent predator, an offender is subject to supervision with an active global positioning system pursuant to this division for the offender's entire life. The costs of administering the supervision of sexually violent offenders with an active global positioning system device shall be paid out of funds from the reparations fund, created pursuant to section 2743.191 of the Revised Code. This division shall only apply to a sexually violent predator who is released from the custody of the department of rehabilitation and correction on or after the effective date of this amendment.

Sec. 3107.10. (A) Notwithstanding section 3107.01 of theRevised Code, as used in this section,"agency" does notinclude apublic children services agency.

(B) An agency or attorney, whichever arranges a minor'sadoption,shall file with the court apreliminary estimateaccounting not later than the timethe adoption petition for theminor is filed with the court. The agency orattorney, whicheverarranges the adoption, also shall file afinal accounting with thecourt before a final decreeof adoption is issued or aninterlocutory order of adoption is finalized forthe minor. Theagency or attorney shall complete and fileaccountings in a manneracceptable to the court.

An accounting shall specify all disbursements of anything ofvaluethe petitioner, a person on the petitioner's behalf, and theagency orattorney made and has agreed to make in connection withtheminor's permanent surrender under division (B) of section5103.15of the Revised Code, placement undersection 5103.16 ofthe Revised Code, and adoption underthis chapter. The agency orattorney shallinclude in an accounting an itemization of eachexpense listed in division(C) of this section. The itemizationof the expenses specified indivisions (C)(3) and (4) of thissection shall show the amount theagency or attorney charged or isgoing tocharge for the services and the actual cost to the agencyorattorney of providing the services. An accounting shallindicate whether any expenses listed in division (C) ofthissection do not apply to the adoption proceeding for whichtheaccounting is filed.

The agency or attorney shall include with a preliminaryestimate accountingand a final accounting a written statementsigned by the petitioner that thepetitioner has reviewedtheaccounting and attests to its accuracy.

(C) No petitioner, person acting on apetitioner's behalf,or agency or attorney shallmake or agree to make anydisbursements inconnection with the minor's permanent surrender,placement, or adoption other than for the following:

(1) Physician expenses incurred on behalf of the birthmother or minorin connection with prenatal care, delivery, andconfinement prior to or following the minor's birth;

(2) Hospital or other medical facility expenses incurred onbehalfof the birth mother or minor in connection with the minor'sbirth;

(3) Expenses charged by the attorney arranging the adoptionfor providinglegal services in connection with the placement andadoption,including expenses incurred by the attorney pursuant tosections 3107.031,3107.081, 3107.082, 3107.09, and 3107.12 of theRevised Code;

(4) Expenses charged by the agency arranging the adoptionfor providingservices in connection with the permanent surrenderand adoption, includingthe agency's application fee and theexpenses incurred by the agency pursuantto sections 3107.031,3107.09, 3107.12, 5103.151, and 5103.152 of theRevised Code;

(5) Temporary costs of routine maintenance and medicalcarefor a minor required under section 5103.16 of the Revised Code iftheperson seeking to adopt the minor refuses to acceptplacementof the minor;

(6) Guardian ad litem fees incurred on behalf of theminorin any court proceedings;

(7) Foster care expenses incurred in connection withanytemporary care and maintenance of the minor;

(8) Court expenses incurred in connection with theminor'spermanent surrender, placement, and adoption.

(D) If a court determines from an accounting that an amountthatis going to be disbursed for an expense listed in division(C) of this sectionis unreasonable, the court may order areduction in the amount to bedisbursed. If a court determinesfrom an accounting that an unreasonableamount was disbursed foran expenselisted in division (C) of this section, the court mayorder theperson who received the disbursement to refund to theperson who made thedisbursement an amount the court orders.

If a court determines from an accounting that a disbursementfor an expensenot permitted by division (C) of this section isgoing to be made,the court may issue an injunction prohibitingthe disbursement. Ifa court determines from an accounting that adisbursement for an expense not permitted by division (C)of thissection was made, the court may order the person who received thedisbursement to return it to the person who made the disbursement.

If a court determines that a finalaccounting does notcompletely report all the disbursements thatare going to be madeor have been made in connection with theminor's permanentsurrender, placement, and adoption, the court shallorder theagency or attorney to file with thecourt an accounting thatcompletely reports all such disbursements.

The agency or attorney shall file the final accounting withthe court not later than ten days prior to the date scheduled forthe finalhearing on the adoption. The court may not issue afinaldecree of adoptionor finalize an interlocutory order ofadoption of a minor until at least tendays after the agency orattorney files the final accounting.

(E) At the conclusion of each adoption proceeding, thecourtshall prepare a summary of the proceeding, and on or beforethetenth day of each month, send copies of the summaries for allproceedings concluded during the preceding calendar month to thedepartment of job and family services. The summary shall contain:

(1) A notation of the nature and approximate value oramountof anything paid in connection with the proceeding,compiled fromthe final accounting required by division(B) of this section andindicating the category of division(C) of this section to whichany payment relates;

(2) If the court has not issued a decree because of therequirements of division (D) of this section, a notation ofthatfact and a statement of the reason for refusing to issue thedecree, related to the financial data summarized under division(E)(1) of this section;

The summary shall contain no information identifying bynameany party to the proceeding or any other person, but maycontainadditional narrative material that the court considersuseful toan analysis of the summary.

~~(F)~~ This section does not apply to an adoption by astepparent whose spouse is a biological or adoptive parent of theminor.

Sec. 3111.04. (A) An action to determine the existence ornonexistence of the father and child relationship may be broughtby the child or the child's personal representative, the child'smother or her personal representative, a man alleged or alleginghimself to be the child's father, the child support enforcementagency of the county in which the child resides if the child'smother is a recipient of public assistance or of services under Title IV-D ofthe "Social Security Act," 88 Stat. 2351 (1975), 42 U.S.C.A. 651,as amended, or the alleged father's personal representative.

(C) If an action under this section is brought before thebirth of the child and if the action is contested, allproceedings, except service of process and the taking ofdepositions to perpetuate testimony, may be stayed until afterthe birth.

(D) A recipient of public assistance or of services under Title IV-D ofthe "Social Security Act," 88 Stat. 2351 (1975), 42 U.S.C.A. 651,as amended, shall cooperate with the child supportenforcement agency ofthe county in which a child resides to obtain anadministrativedetermination pursuant to sections 3111.38 to3111.54 of theRevised Code, or, if necessary, a courtdetermination pursuant to sections 3111.01 to 3111.18of the Revised Code, oftheexistence or nonexistence of a parent andchild relationship between the father and the child. If the recipient failstocooperate, the agency may commence an action to determine the existence ornonexistence of a parent and child relationship between the father and thechild pursuant to sections 3111.01 to 3111.18 of theRevised Code.

(E) As used in this section, "public assistance" means medicalassistance under Chapter 5111. of the Revised Code, assistance underChapter 5107. of the Revised Code, or disability financial assistance under Chapter5115. of the Revised Code~~, or disability medical assistance under Chapter 5115. of the Revised Code~~.

Sec. 3119.54. Ifeither party to a childsupport orderissued inaccordance withsection 3119.30 of theRevised Code iseligiblefor medical assistance under Chapter5111. ~~or 5115.~~ oftheRevised Code and theother party hasobtained health insurancecoverage, theparty eligible formedical assistance shall notify any physician, hospital, orotherprovider of medical services for which medical assistanceisavailable of the name and address of theother party'sinsurer andofthe number of theother party's healthinsurance or health carepolicy, contract, or plan. Anyphysician, hospital, or otherprovider of medical services forwhich medical assistance isavailable under Chapter 5111. ~~or 5115.~~of the RevisedCode who isnotified under this division of theexistence of a healthinsurance or health care policy, contract,or plan with coveragefor children who are eligible for medicalassistance shall firstbill the insurer for any services providedfor those children. Ifthe insurer fails to pay all or any partof a claim filedunderthis section and the services for which theclaim is filed arecoveredbyChapter 5111. ~~or 5115.~~ of theRevised Code, thephysician, hospital, or othermedical servicesprovider shall billthe remaining unpaid costs ofthe services inaccordance withChapter 5111. ~~or 5115.~~ of theRevised Code.

Sec. 3121.12. (A) On receipt of a noticethat alump sum payment of one hundred fifty dollars or more is to be paid tothe obligor, the court, with respect to a court support order, or the childsupport enforcement agency, with respect to an administrative child supportorder,shall do either of the following:

(1) If the obligor is in default under the support orderor has any arrearages under the support order, issue anorder requiring the transmittal of the lump sum payment, or any portion of the lump sum payment sufficient to pay the arrearage in full, to theoffice of child support;

(2) If the obligor is not in default under the supportorder and does not have any arrearages under the supportorder, issue an order directing the person who gave the notice tothe court or agency to immediately pay the full amount of the lump sumpayment to the obligor.

(B) ~~On receipt of any~~ Any moneys received by the office of child support pursuant to division(A) of this section~~, the office ofchild support~~shall pay the amount of the lump sum payment that is necessary todischarge all of the obligor's arrearages to the obligee and,within two business days after its receipt of the money, anyamount that is remaining after the payment of the arrearages tothe obligor be distributed in accordance with rules adopted under section 3121.71 of the Revised Code.

(C) A court that issued an order prior to January 1,1998, requiring an employer to withhold an amount from anobligor's personal earnings for the payment of support shallissue a supplemental order that does not change the originalorder or the related support order requiring the employer to doall of the following:

(1) No later than the earlier of forty-five days before alump sum payment is to be made or, if the obligor's right to alump sum payment is determined less than forty-five days beforeit is to be made, the date on which that determination is made,notify the child support enforcement agency of any lump sumpayment of any kind of one hundred fifty dollars ormore that is to bepaid to the obligor;

(2) Hold the lump sum payment for thirty days after thedate on which it would otherwise be paid to the obligor;

(3) On order of the court, pay any specified amount ofthe lump sum payment to the office of child support.

(D) An employer that knowingly fails to notify the childsupport enforcement agency in accordance withthis section or section 3121.03 of the Revised Code of anylump sum payment to be made to an obligoris liable for any support payment not made to theobligee as a result of its knowing failure to give the notice.

Sec. 3121.50. On receipt of any amount forwarded froma payor or financial institution,the office of child support shalldistribute the amount tothe obligee within two business days of its receipt of the amountforwarded. ~~The~~ Unless otherwise prohibited from doing so by a law of this state or the United States, the office may distribute the amount by means of electronic disbursement, and the obligee shall accept payment by means of electronic disbursement. The director of job and family services may adopt, revise,or amend rules under Chapter 119. of the RevisedCode to assist in theimplementation of this section.

Sec. 3125.18. A child support enforcement agency shalladminister a Title IV-A program identified under division(A)~~(3)~~(4)(c) or ~~(d)~~(f) of section 5101.80 of the Revised Code that thedepartment of job and family services provides for the agency toadminister under the department's supervision pursuant to section5101.801 of the Revised Code.

Sec. 3125.191. There is hereby created in the state treasury the child support operating fund, which is a state special revenue fund. The department of job and family services may deposit into the fund a portion of the federal incentives described in division (A) of section 3125.19 of the Revised Code and authorized by 42 U.S.C. 658a that are received by the department of job and family services from the United States department of health and human services. The department of job and family services may use money in the child support operating fund for program and administrative purposes associated with the program of child support enforcement authorized by section 3125.03 of the Revised Code.

Sec. 3301.079. (A)(1) Not later than December 31, 2001,thestate board of education shall adoptstatewide academicstandardsfor each of grades kindergartenthrough twelve inreading,writing, and mathematics. Not later than December 31,2002, thestate board shall adopt statewide academic standards foreach ofgrades kindergarten through twelve in science andsocialstudies.The standards shall specify the academic contentandskills thatstudents are expected to know and be able to doateach gradelevel.

(2) When academic standards have beencompleted for anysubject area required by this division, thestate board shallinform allschool districts of the content ofthose standards.

(B) Not later than eighteen months after the completion ofacademicstandards for any subject area required by division (A)of this section, the state boardshall adopt a model curriculumfor instruction in that subjectarea for each of gradeskindergarten through twelve that is sufficient to meet the needsof students in every community. The model curriculum shall bealignedwith the standards to ensure that the academic content andskillsspecified for each grade level are taught to students.When any model curriculum hasbeen completed, the state boardshall inform all school districtsof the content of that modelcurriculum.

Allschool districts may utilize the state standards and themodel curriculum established by the state board, together withother relevantresources, examples, or models to ensure thatstudents have theopportunity to attain the academic standards.Upon request, thedepartment of education shall provide technicalassistance to anydistrict in implementing the model curriculum.

Nothing in this section requires any school district toutilize all or any part of a model curriculum developed under thisdivision.

(C) The state board shall develop achievement tests alignedwith the academic standards and model curriculum for each of thesubject areas and grade levels required by section 3301.0710 ofthe Revised Code.

When any achievementtest has been completed,the state boardshall inform all schooldistricts of itscompletion, and thedepartment of education shallmake theachievement test availableto the districts. Schooldistrictsshall administer theachievement test beginning in theschool yearindicated in section3301.0712 of the Revised Code.

(D)(1) ~~Not later than July 1, 2008, and except as providedindivision (D)(3) of this section, the~~ The state board shall adopt adiagnostic assessment aligned with the academic standards andmodel curriculum for each of grades kindergarten through two inreading, writing, and mathematics and for ~~each of grades~~ grade three~~through eight~~ in ~~reading,~~ writing~~, mathematics, science, andsocial studies~~. The diagnostic assessment shall be designed tomeasure student comprehension of academic content and mastery ofrelated skills for the relevant subject area and grade level. Anydiagnostic assessment shall not include components toidentifygiftedstudents. Blank copiesof diagnostic tests shall be publicrecords.

(2)When each diagnostic assessment has beencompleted,thestate boardshall inform all school districts ofitscompletionand thedepartment of education shall make thediagnosticassessmentavailable to the districts at no cost to thedistrict.Schooldistricts shall administer the diagnosticassessmentpursuant tosection 3301.0715 of the Revised Codebeginning thefirst schoolyear following the development of theassessment.

~~(3) The state board shall not adopt a diagnostic assessmentfor any subject area and grade level for which the state boarddevelops an achievement test under division (C) of this section.~~

(E) Whenever the state board or the department of educationconsults with persons for the purpose of drafting or reviewing anystandards, diagnostic assessments, achievement tests, or modelcurriculum required under this section, the state board or thedepartment shall first consult with parents of students inkindergarten through twelfth grade and with active Ohio classroomteachers, other school personnel,and administrators withexpertise in the appropriate subject area.Whenever practicable,the state board anddepartment shall consultwith teachersrecognized as outstandingin their fields.

If the department contracts with more than one outside entity for the development of the achievement tests required by this section, the department shall ensure the interchangeability of those tests.

(F) The fairness sensitivity review committee, establishedby rule of the state board of education, shall not allow anyquestion on any achievement test or diagnostic assessmentdeveloped under this section or any proficiency test prescribed byformer section 3301.0710 of the Revised Code, as it existed priortoSeptember 11, 2001, toinclude, be written topromote, or inquire as to individual moralor social values orbeliefs. The decision of the committee shallbe final. Thissection does not create a private cause of action.

Sec. 3301.0710. The state board of education shall adoptrules establishing a statewide program to test studentachievement. The state board shallensure that all testsadministered under the testing program arealigned with theacademic standards and model curricula adopted bythe state boardand are created with input from Ohio parents, Ohioclassroomteachers, Ohio school administrators, and otherOhioschoolpersonnelpursuant to section 3301.079 ofthe Revised Code.

The testing program shall be designed to ensure that studentswho receivea high school diploma demonstrate at least highschoollevels ofachievement in reading, writing,mathematics,science,andsocial studies.

(a) Two statewide achievement tests, one each designed to measure thelevel of reading and mathematics skill expected at the end of third grade;

(b) Three statewide achievement tests, one each designed tomeasure the level of reading, writing, and mathematics skill expected at theend of fourth grade;

(c) Four statewide achievement tests, one each designed tomeasure the level of reading, mathematics, science, and social studies skill expected atthe end of fifth grade;

(d) Two statewide achievement tests, one each designed to measure the level of reading and mathematics skill expected at the end of sixth grade;

(e) Three statewide achievement tests, one each designed tomeasure the level of reading, writing, and mathematics skillexpected at the end of seventh grade;

(f) Four statewide achievement tests, one each designed tomeasure the level of reading, mathematics, science, and social studies skill expected atthe end of eighth grade.

(2) The state board shall determine and designate at least five ranges of scores on each of the achievement tests describedin divisions (A)(1) and (B) of this section. Each range of scores shall bedeemed to demonstrate a level of achievement so that any studentattaining a score within such range has achieved one of thefollowing:

(B)The tests prescribed under this division shallcollectively be known as the Ohio graduation tests. The stateboard shall prescribe five statewide highschoolachievementtests, one each designed to measurethe levelof reading,writing, mathematics, science, andsocialstudies skill expectedat the end of tenthgrade. The state board shall designate a score in at least the range designated under division (A)(2)(c) of this section on each such test that shall be deemed to be a passing score on the test as a condition toward granting high school diplomas under sections 3313.61, 3313.611, 3313.612, and 3325.08 of the Revised Code.

The state board may enter into a reciprocal agreement withthe appropriate body or agency of any other state that hassimilarstatewideachievement testing requirements forreceivinghighschool diplomas, under which any student who hasmetanachievement testing requirement of one stateis recognized ashaving met the similarachievementtesting requirement of theother state for purposes of receiving ahigh school diploma. Forpurposes of this section and sections3301.0711 and 3313.61 oftheRevised Code, any student enrolled inany public high schoolinthis state who has metan achievement testing requirementspecified in a reciprocalagreement entered into under thisdivision shall be deemed to haveattained at least the applicablescore designated under thisdivision on each test required bythisdivision that is specifiedin the agreement.

(C) ~~The~~ Except as provided in division (H) of this section, the state board shall annually designate as followsthedates on which the tests prescribed under this section shallbeadministered:

(1) For the reading test prescribed under division(A)(1)(a) of thissection, as follows:

(b) At least one date of each school year that is notearlierthan Monday of the week containing the ~~eighth~~ first day of~~March~~ May;

(c) One date during the summer that is not earlier than the tenth day of June nor later than the fifteenth day of July for studentsreceiving summerremediation services under section 3313.608 ofthe RevisedCode.

(2) For the mathematics test prescribed under division (A)(1)(a) of this section and the tests prescribed underdivisions(A)(1)(b),(c), (d), (e), and (f)of this section, at least onedate of eachschool year that is not earlier than Monday of theweekcontainingthe~~eighth~~ first day of ~~March~~ May;

(3) For the tests prescribed under division (B) of thissection, at least one date in each school year that isnot earlierthan Monday of the week containing the fifteenth dayofMarch forall tenth grade students and atleast one date prior to thethirty-first day ofDecember and at least one date subsequent tothat date but priorto the thirty-first day of March of eachschool year for eleventh andtwelfth grade students.

(D) In prescribing test dates pursuant to division(C)(3)ofthis section, the state board shall, to the greatestextentpracticable,provide options to school districts in the case oftestsadministered under that division to eleventh and twelfthgradestudents and in the case of tests administered to studentspursuant to division(C)(2) of section3301.0711 of the RevisedCode. Such options shall include at least anopportunityforschool districtsto give such tests outside of regular schoolhours.

(E) In prescribing test dates pursuant to this section, thestateboard of education shall designate the dates in such a wayas to allow areasonable length of time between the administrationof tests prescribed underthis section and any administration ofthe NationalAssessment of EducationProgress Test given tostudents in the same grade levelpursuant to section3301.27 ofthe Revised Code or federal law.

(F) The state board shall prescribe a practice version of each Ohio graduation test described in division (B) of this section that is of comparable length to the actual test.

(G) Any committee established by the department of education for the purpose of making recommendations to the state board regarding the state board's designation of scores on the tests described by this section shall inform the state board of the probable percentage of students who would score in each of the ranges established under division (A)(2) of this section on the tests if the committee's recommendations are adopted by the state board. To the extent possible, these percentages shall be disaggregated by gender, major racial and ethnic groups, limited English proficient students, economically disadvantaged students, students with disabilities, and migrant students.

If the state board intends to make any change to the committee's recommendations, the state board shall explain the intended change to the Ohio accountability task force established by section 3302.021 of the Revised Code. The task force shall recommend whether the state board should proceed to adopt the intended change. Nothing in this division shall require the state board to designate test scores based upon the recommendations of the task force.

(H)(1) The state board shall require any alternate assessment administered to a student under division (C)(1) of section 3301.0711 of the Revised Code to be completed and submitted to the entity with which the department contracts for the scoring of the test not later than the first day of April of the school year in which the test is administered.

(2) For any test prescribed by this section, the state board may designate a date one week earlier than the applicable date designated under division (C) of this section for the administration of the test to limited English proficient students.

(3) In designating days for the administration of the tests prescribed by division (A) of this section, the state board shall require the tests for each grade level to be administered on consecutive days.

(1) Annually furnishto, grade, and score all tests requiredbysection 3301.0710 of the Revised Code tobe administered bycity,local,exemptedvillage, and joint vocational schooldistricts, except that each district shall score any test administered pursuant to division (B)(10) of this section. Each test so furnished shall include the data verification code of the student to whom the test will be administered, as assigned pursuant to division (D)(2) of section 3301.0714 of the Revised Code. In furnishing the practice versions of Ohio graduation tests prescribed by division (F) of section 3301.0710 of the Revised Code, the department shall make the tests available on its web site for reproduction by districts. In awarding contracts for grading tests, thedepartment shall give preference to Ohio-based entities employingOhio residents.

(2) Adopt rules for the ethical use of tests andprescribingthe manner in which the tests prescribed by section3301.0710 ofthe Revised Code shall be administered to students.

(B) Except as provided in divisions (C) and (J) of thissection, the board of education of each city, local, and exemptedvillage school district shall, in accordance with rules adoptedunder division (A) of this section:

(1) Administer the reading test prescribed under division (A)(1)(a)ofsection 3301.0710 of the Revised Code twice annually toallstudents in thethird grade who have not attained the scoredesignated for that test under division (A)(2)(c) of section3301.0710 of the RevisedCode and once each summer to studentsreceiving summer remediationservices undersection 3313.608 ofthe Revised Code.

(2) Administer the mathematics test prescribed under division (A)(1)(a) of section 3301.0710 of the Revised Code at least once annually to all students in the third grade.

(3) Administer the tests prescribed under division (A)(1)(b)of section 3301.0710 of the Revised Code at least onceannuallyto all students in the fourth grade.

(4) Administer the tests prescribedunder division(A)(1)(c)of section 3301.0710 of the Revised Code at leastonce annuallytoall students in thefifth grade.

(5) Administer the tests prescribed under division (A)(1)(d) of section 3301.0710 of the Revised Code at least once annually to all students in the sixth grade.

(6) Administerthe tests prescribed under division(A)(1)(e)of section 3301.0710 of the Revised Code at leastonceannuallytoall students in theseventhgrade.

(7)Administerthe tests prescribed under division (A)(1)(f)of section 3301.0710 of the Revised Code at least once annually toall students in the eighth grade.

(8) Except as provided in division (B)(9) of thissection,administer any test prescribed under division (B) ofsection3301.0710 of the Revised Code as follows:

(a) At least once annually to all tenth grade students andatleast twice annuallyto all students in eleventh or twelfthgrade who have not yet attained the score on that test designatedunder that division;

(b) To any person who has successfully completed thecurriculum in any high school or the individualized educationprogram developed for the person by any high school pursuant tosection 3323.08 of the Revised Code but has not received a highschool diploma and who requests to take such test, at any timesuch test is administered in the district.

(9) In lieu of the board of education of any city, local, orexempted village school district in which the student is alsoenrolled, the board of a joint vocational school district shalladminister any test prescribed under division (B) of section3301.0710 of the Revised Code at least twice annually to any student enrolled in the joint vocational school district who hasnot yet attained the score on that test designated under thatdivision. A board of a joint vocational school district may alsoadminister such a test to any student described in division(B)(8)(b) of this section.

(10) If the district has been declared to be under an academic watch or in a state of academic emergency pursuant to section 3302.03 of the Revised Code or has a three-year average graduation rate of not more than seventy-five per cent, administer each test prescribed by division (F) of section 3301.0710 of the Revised Code in September to all ninth grade students, beginning in the school year that starts July 1, 2005.

(C)(1)(a) Any student receiving special education servicesunderChapter 3323. of the Revised Codemay be excused fromtakingany particular test required to be administered under thissection if the individualized education program developed for thestudent pursuant to section 3323.08 of the Revised Code excusesthe student from taking that testandinstead specifies analternate assessment method approved by thedepartment ofeducation as conforming to requirements of federallaw for receiptof federal funds for disadvantaged pupils. To theextentpossible, the individualized education program shall notexcusethe student from taking a test unless no reasonableaccommodationcan be made to enable the student to take the test.

(b) Any alternate assessment approved by the departmentfora student under this division shall produce measurable resultscomparable to those produced by the tests which the alternateassessments are replacing in order to allow for the student'sassessment results to be included in the data compiled for aschool district or building under section 3302.03 of the Revised Code.

(c) Any studentenrolled in a charterednonpublic schoolwho has been identified,based on an evaluation conducted inaccordance with section3323.03 of the Revised Code or section 504of the"RehabilitationAct of 1973," 87 Stat. 355, 29 U.S.C.A.794, as amended, as achild with a disability shall be excusedfrom taking anyparticular testrequired to be administered underthis section ifa plan developed for thestudent pursuant to rulesadopted by thestate board excuses the student fromtaking thattest. In thecase of any student so excused from taking a test,the charterednonpublic school shall not prohibit the student fromtaking thetest.

(2) A district board may, for medical reasons or othergoodcause, excuse a student from taking a test administeredunder thissection on the date scheduled, but any such test shallbeadministered to such excused student not later thannine daysfollowing the scheduled date. The board shall annuallyreport thenumber of students who have not taken one or more ofthe testsrequired by this section to the state board ofeducation not laterthan the thirtieth day ofJune.

(3) As used in this division, "limited English proficient student"has the same meaning as in 20 U.S.C. 7801.

No school district board shall excuse any limited English proficient student from taking any particular test required to be administered under this section, except that any limited English proficient student who has been enrolled in United States schools for less than one full school year shall not be required to take any such reading or writing test. However, no board shall prohibit a limited English proficient student who is not required to take a test under this division from taking the test. A board may permit any limited English proficient student to take any test required to be administered under this section with appropriate accommodations, as determined by the department. For each limited English proficient student, eachschool district shall annually assess that student's progressin learningEnglish, in accordance with procedures approved by thedepartment.

Thegoverning authority of acharterednonpublic school may excuse a limited English proficient student from taking any test administered under this section. However, no governing authority shall prohibita limited English proficient studentfromtaking the test.

(D)(1) In the school year next succeedingthe school year inwhich the tests prescribed by division (A)(1) or (B) ofsection3301.0710of the Revised Codeor former division (A)(1), (A)(2), or (B) ofsection3301.0710 of the Revised Code as it existed prior toSeptember 11, 2001, are administered to anystudent,the boardof education of any school district in whichthestudentisenrolled in that year shall provideto the student interventionservicescommensurate with the student's testperformance,including any intensive intervention required undersection3313.608 of the Revised Code, in any skill in which thestudentfailed to demonstrate at leasta score at the proficientlevelon the test.

(2) Following any administration of the tests prescribed by division (F) of section 3301.0710 of the Revised Code to ninth grade students, each school district that has a three-year average graduation rate of not more than seventy-five per cent shall determine for each high school in the district whether the school shall be required to provide intervention services to any students who took the tests. In determining which high schools shall provide intervention services based on the resources available, the district shall consider each school's graduation rate and scores on the practice tests. The district also shall consider the scores received by ninth grade students on the reading and mathematics tests prescribed under division (A)(1)(f) of section 3301.0710 of the Revised Code in the eighth grade in determining which high schools shall provide intervention services.

Each high school selected to provide intervention services under this division shall provide intervention services to any student whose test results indicate that the student is failing to make satisfactory progress toward being able to attain scores at the proficient level on the Ohio graduation tests. Intervention services shall be provided in any skill in which a student demonstrates unsatisfactory progress and shall be commensurate with the student's test performance. Schools shall provide the intervention services prior to the end of the school year, during the summer following the ninth grade, in the next succeeding school year, or at any combination of those times.

(E) Except as provided in section 3313.608 of the RevisedCode and division(M) of this section,no school district board ofeducation shallutilize any student's failure toattain aspecified score onany test administered under thissectionas afactor in any decision to deny the student promotionto a highergrade level. However, a district board maychoose notto promotetothe next grade level any student who does not takeanytestadministered under this section or make upsuch test asprovidedby division (C)(2) of this section and who is not exempt from the requirement to take the test under division (C)(3) of this section.

(F) No person shall be charged a fee for taking any testadministered under this section.

(G) ~~Not later than sixty days after any administration ofany test prescribed by division (A)(1) or (B) of section 3301.0710 of the Revised Code, the~~ (1) Each school district board shall submit the tests administered in the spring under division (B)(1) of this section and the tests administered under divisions (B)(2) to (7) of this section to the entity with which the department contracts for the scoring of the tests not later than the Friday after the tests are administered, except that any such test that a student takes during the make-up period described in division (C)(2) of this section shall be submitted not later than the Friday following the day the student takes the test.

(2)The department or an entity with which the department contracts for the scoring of the test shall send to each school district board a list of theindividual test scores of all persons taking ~~the~~ any test prescribed by division (A)(1) or (B) of section 3301.0710 of the Revised Code within sixty days after its administration, but in no case shall the scores be returned later than the fifteenth day of June following the administration. For anytests administered under this section by a joint vocational schooldistrict, the department or entity shall also send to each city, local, orexempted village school district a list of the individual testscores of any students of such city, local, or exempted villageschool district who are attending school in the joint vocationalschool district.

(H) Individual test scores on any tests administered underthis section shall be released by a district board only inaccordance with section 3319.321 of the Revised Code and therulesadopted under division (A) of this section. No districtboard orits employees shall utilize individual or aggregate testresultsin any manner that conflicts with rules for the ethicaluse oftests adopted pursuant to division (A) of this section.

(I) Except as provided in division (G) of this section,thedepartment or an entity with which the department contracts for the scoring of the test shall not release any individual test scores onanytest administered under this section ~~and~~. The state board of education shall adopt rules toensure the protection of student confidentiality at all times. The rules may require the use of the data verification codes assigned to students pursuant to division (D)(2) of section 3301.0714 of the Revised Code to protect the confidentiality of student test scores.

(J) Notwithstandingdivision (D) of section 3311.52 of theRevised Code, this sectiondoes not apply to the board ofeducation of any cooperative education school district except asprovided underrules adopted pursuant to this division.

(1) In accordance with rules that the state board ofeducation shall adopt, the board of education of any city,exempted village, or local school district with territory in acooperative educationschooldistrict established pursuant todivisions (A) to (C) ofsection3311.52 of the Revised Code mayenter into an agreementwith theboard of education of thecooperativeeducation school district for administering any testprescribedunder this section to students of the city, exemptedvillage, orlocal school district who are attending school in thecooperative education school district.

(2) In accordance with rules that the state board ofeducation shall adopt, the board of education of any city,exempted village, or local school district with territory in acooperative education school district established pursuant tosection 3311.521 of the Revised Code shall enter into anagreementwith the cooperative district that provides for theadministrationof any test prescribed under this section to bothof thefollowing:

(a) Students who are attending school in the cooperativedistrict and who, if the cooperative district were notestablished, would be entitled to attend school in the city,local, or exempted village school district pursuant to section3313.64 or 3313.65 of the Revised Code;

Any testing of students pursuant to such an agreement shallbe in lieu of any testing of such students or persons pursuant tothis section.

(K)(1) Any chartered nonpublic school may participate inthetesting program by administering any of the tests prescribedbysection 3301.0710 or 3301.0712 of the Revised Code if the chiefadministratorof the school specifies which tests the schoolwishes toadminister. Such specification shall be made inwriting to thesuperintendent of public instruction prior to thefirst day ofAugust of any school year in which tests areadministered andshall include a pledge that the nonpublic schoolwill administerthe specified tests in the same manner as publicschools arerequired to do under this section and rules adoptedby thedepartment.

(2) The department of education shall furnish the testsprescribed by section 3301.0710 or 3301.0712 of the Revised Code to anychartered nonpublic school electing to participate under thisdivision.

(L)(1)The superintendent of the state school for the blindandthesuperintendent of the state school for the deaf shalladministerthe tests described by section 3301.0710 of theRevisedCode.Eachsuperintendent shall administer the tests inthe samemannerasdistrict boards are required to do under thissectionand rulesadopted by the department of educationand in conformitywithdivision (C)(1)(a) of this section.

(2) The department of education shall furnish the testsdescribed by section 3301.0710 of the Revised Code to eachsuperintendent.

(M) Notwithstanding division (E) of this section,a schooldistrict mayuse a student's failure to attain a score in atleast the basic range on the mathematics test described by division (A)(1)(a) of section 3301.0710 of the Revised Code or on any of thetestsdescribed by division(A)(1)(b), (c), (d), (e), or (f) ofsection 3301.0710 of theRevisedCodeas a factor in retaining that student in the currentgradelevel.

(N)(1) ~~The~~ In the manner specified in divisions (N)(3) to (5) of this section, the tests required by section3301.0710of theRevised Code shall become public records pursuant tosection149.43 of the Revised Code onthe first day of Julyfollowing theschool year that the test wasadministered, except that the reading test prescribed under division (A)(1)(a) of section 3301.0710 of the Revised Code shall become a public record on the sixteenth day of July following the school year that the test was administered.

(2) The department may field test proposed testquestionswithsamples of students to determine the validity,reliability,or appropriatenessof test questions for possibleinclusion in afuture year's test. The department also may use anchor questions on tests to ensure that different versions of the same test are of comparable difficulty.

Field test questions and anchor questions shall not be considered in computingtest scores forindividual students. Field test questions and anchor questions may beincludedas part of the administration of any testrequired bysection3301.0710 of the Revised Code.

(3) Any field test question or anchor question administered under division(N)(2) ofthis section shall not be a public record. Such fieldtest questions and anchor questions shall beredacted from any tests whicharereleased as a public record pursuant to division (N)(1) ofthissection.

(4) This division applies to the tests prescribed by division (A) of section 3301.0710 of the Revised Code.

(a) The first administration of each test, as specified in section 3301.0712 of the Revised Code, shall be a public record.

(b) For subsequent administrations of each test, not less than forty per cent of the questions on the test that are used to compute a student's score shall be a public record. The department shall determine which questions will be needed for reuse on a future test and those questions shall not be public records and shall be redacted from the test prior to its release as a public record.

(5) Each test prescribed by division (B) of section 3301.0710 of the Revised Code that is administered in the spring shall be a public record. Each test prescribed by that division that is administered in the fall or summer shall not be a public record.

(1) "Three-year average" means the average of the most recent consecutive three school years of data.

(2) "Dropout" means a student who withdraws from school before completing course requirements for graduation and who is not enrolled in an education program approved by the state board of education or an education program outside the state. "Dropout" does not include a student who has departed the country.

(3) "Graduation rate" means the ratio of students receiving a diploma to the number of students who entered ninth grade four years earlier. Students who transfer into the district are added to the calculation. Students who transfer out of the district for reasons other than dropout are subtracted from the calculation. If a student who was a dropout in any previous year returns to the same school district, that student shall be entered into the calculation as if the student had entered ninth grade four years before the graduation year of the graduating class that the student joins.

Sec. 3301.0714. (A) The state board of education shalladopt rules for a statewide education management informationsystem. The rules shall require the state board toestablishguidelines for the establishment and maintenance of the system inaccordance with this section and the rules adopted under thissection. The guidelines shall include:

(1) Standards identifying and defining the types of datainthe system in accordance with divisions (B) and (C) of thissection;

(2) Procedures for annually collecting and reporting thedata to the state board in accordance with division(D) of thissection;

(3) Procedures for annually compiling the data inaccordancewith division (G) of this section;

(4) Procedures for annually reporting the data to thepublicin accordance with division (H) of this section.

(B) The guidelines adopted under this section shallrequirethe data maintained in the education managementinformation systemto include at least the following:

(1) Student participation and performance data, for eachgrade in each school district as a whole and for each grade ineach school building in each school district, thatincludes:

(a) The numbers of students receiving each category ofinstructional service offered by the school district, such asregular education instruction, vocational education instruction,specialized instruction programs or enrichment instruction thatispart of the educational curriculum, instruction for giftedstudents, instruction for handicapped students, and remedialinstruction. The guidelines shall require instructional servicesunder this division to be divided into discrete categories if aninstructional service is limited to a specific subject, aspecifictype of student, or both, such as regular instructionalservicesin mathematics, remedial reading instructional services,instructional services specifically for students gifted inmathematics or some other subject area, or instructional servicesfor students with a specific type of handicap. The categories ofinstructional services required by the guidelines under thisdivision shall be the same as the categories of instructionalservices used in determining cost units pursuant to division(C)(3) of this section.

(b) The numbers of students receiving support orextracurricular services for each of the support services orextracurricular programs offered by the school district, such ascounseling services, health services, and extracurricular sportsand fine arts programs. The categories of services required bythe guidelines under this division shall be the same as thecategories of services used in determining cost units pursuant todivision (C)(4)(a) of this section.

(d) Academic achievement levels as assessed by the testingof studentachievement under sections 3301.0710 and3301.0711 ofthe Revised Code;

(e) The number of students designated as having ahandicapping condition pursuant to division (C)(1) of section3301.0711 of the Revised Code;

(f) The numbers of students reported to the state boardpursuant to division (C)(2) of section 3301.0711 of the RevisedCode;

(g) Attendance rates and the average daily attendance forthe year. For purposes of this division, a student shall becounted as present for any field trip that is approved by theschool administration.

(m) For pupils in grades nine through twelve, the averagenumber of carnegie units, as calculated in accordance with stateboard of education rules;

(n) Graduation rates, to be calculated in a mannerspecifiedby the department of education that reflects the rateatwhichstudents who were in the ninth grade three years priortothecurrent year complete school and that is consistent withnationally accepted reporting requirements;

(o) Results of diagnostic assessments administered tokindergarten students as required under section 3301.0715 of theRevised Code to permit a comparison of the academic readiness ofkindergarten students. However, no district shall be required toreport to the department the results of any diagnostic assessmentadministered to a kindergarten student if the parent of thatstudent requests the district not to report those results.

(a) The total numbers of licensed employees andnonlicensedemployees and the numbers of full-timeequivalent licensedemployees and nonlicensed employees providingeach category ofinstructional service, instructional supportservice, andadministrative support service used pursuant todivision (C)(3) ofthis section. The guidelines adopted underthis section shallrequire these categories of data to bemaintained for the schooldistrict as a whole and, whereverapplicable, for each grade inthe school district as a whole, foreach school building as awhole, and for each grade in eachschool building.

(b) The total number of employees and the number offull-time equivalent employees providing each category of serviceused pursuant to divisions (C)(4)(a) and (b) of this section, andthe total numbers of licensed employees and nonlicensedemployeesand the numbers of full-time equivalent licensedemployees andnonlicensed employees providing each categoryused pursuant todivision (C)(4)(c) of this section. Theguidelines adopted underthis section shall require thesecategories of data to bemaintained for the school district as awhole and, whereverapplicable, for each grade in the schooldistrict as a whole, foreach school building as a whole, and foreach grade in each schoolbuilding.

(c) The total number of regular classroom teachersteachingclasses of regular education and the average number ofpupilsenrolled in each such class, in each of gradeskindergartenthrough five in the district as a whole and in eachschoolbuilding in the school district.

(d) The number of master teachers employed by each school district and each school building, once a definition of master teacher has been developed by the educator standards board pursuant to section 3319.61 of the Revised Code.

(3)(a) Student demographic data for each school district,including information regarding the gender ratio of the schooldistrict's pupils, the racial make-up of the school district'spupils, the number of limited English proficient students in the district, and an appropriate measure of the number of the schooldistrict's pupils who reside in economically disadvantagedhouseholds. The demographic data shall be collected in a mannerto allow correlation with data collected under division (B)(1) ofthis section. Categories for data collected pursuant to division(B)(3) of this section shall conform, where appropriate, tostandard practices of agencies of the federal government.

(b) With respect to each student entering kindergarten,whetherthe student previously participated in a public preschoolprogram, a privatepreschool program, or a head start program, andthe number of years thestudent participated in each of theseprograms.

(C) The education management information system shallinclude cost accounting data for each district as a whole and foreach school building in each school district. The guidelinesadopted under this section shall require the cost data for eachschool district to be maintained in a system of mutuallyexclusivecost units and shall require all of the costs of eachschooldistrict to be divided among the cost units. Theguidelines shallrequire the system of mutually exclusive costunits to include atleast the following:

(1) Administrative costs for the school district as awhole.The guidelines shall require the cost units under thisdivision(C)(1) to be designed so that each of them may becompiled andreported in terms of average expenditure per pupilin formula ADMin the schooldistrict, as determined pursuant to section 3317.03of the Revised Code.

(2) Administrative costs for each school building in theschool district. The guidelines shall require the cost unitsunder this division (C)(2) to be designed so that each of themmaybe compiled and reported in terms of average expenditure perfull-time equivalent pupil receiving instructional or supportservices in each building.

(3) Instructional services costs for each category ofinstructional service provided directly to students and requiredby guidelines adopted pursuant to division (B)(1)(a) of thissection. The guidelines shall require the cost units underdivision (C)(3) of this section to be designed so that each ofthem may be compiled and reported in terms of average expenditureper pupil receiving the service in the school district as a wholeand average expenditure per pupil receiving the service in eachbuilding in the school district and in terms of a total cost foreach category of service and, as a breakdown of the total cost, acost for each of the following components:

(a) The cost of each instructional services categoryrequired by guidelines adopted under division (B)(1)(a) of thissection that is provided directly to students by a classroomteacher;

(b) The cost of the instructional support services, suchasservices provided by a speech-language pathologist, classroomaide, multimedia aide, or librarian, provided directly tostudentsin conjunction with each instructional servicescategory;

(c) The cost of the administrative support servicesrelatedto each instructional services category, such as the costofpersonnel that develop the curriculum for the instructionalservices category and the cost of personnel supervising orcoordinating the delivery of the instructional services category.

(4) Support or extracurricular services costs for eachcategory of service directly provided to students and required byguidelines adopted pursuant to division (B)(1)(b) of thissection.The guidelines shall require the cost units underdivision (C)(4)of this section to be designed so that each ofthem may becompiled and reported in terms of average expenditureper pupilreceiving the service in the school district as a wholeandaverage expenditure per pupil receiving the service in eachbuilding in the school district and in terms of a total cost foreach category of service and, as a breakdown of the total cost, acost for each of the following components:

(a) The cost of each support or extracurricular servicescategory required by guidelines adopted under division (B)(1)(b)of this section that is provided directly to students by alicensed employee, such as services provided by a guidancecounselor or any services provided by a licensed employeeunder asupplemental contract;

(b) The cost of each such services category provideddirectly to students by a nonlicensed employee, such asjanitorialservices, cafeteria services, or services of a sportstrainer;

(c) The cost of the administrative services related toeachservices category in division (C)(4)(a) or (b) of thissection,such as the cost of any licensed or nonlicensedemployees thatdevelop, supervise, coordinate, or otherwise areinvolved inadministering or aiding the delivery of each servicescategory.

(D)(1) The guidelines adopted under this sectionshallrequireschool districts to collect information about individualstudents, staff members, or both in connection with any datarequired by division (B) or (C) of this section or otherreportingrequirements established in the Revised Code. Theguidelines mayalso require school districts to reportinformation aboutindividual staff members in connection with anydata required bydivision (B) or (C) of this section or otherreportingrequirements established in the Revised Code. Theguidelinesshall notauthorize school districts to request socialsecuritynumbers ofindividual students.The guidelines shall prohibitthereportingunder thissection of a student'sname,address,andsocial security number to the state board ofeducation or thedepartment ofeducation. The guidelines shallalso prohibit thereportingunderthis section of any personallyidentifiableinformationabout anystudent, except for the purposeof assigningthe dataverificationcode required by division(D)(2) of thissection, toanyotherpersonunless such personisemployed bytheschooldistrict orthe dataacquisition siteoperated undersection3301.075 of theRevised Codeand isauthorizedby thedistrict oracquisitionsiteto haveaccess tosuchinformation or is employed by an entity with which the department contracts for the scoring of tests administered under section 3301.0711 or 3301.0712 of the Revised Code.Theguidelines mayrequireschooldistricts toprovide the socialsecurity numbersofindividualstaff members.

(2) The guidelines shall provide for each school district orcommunity school to assign a data verification codethat is uniqueon a statewide basis over time to eachstudent whoseinitial Ohioenrollment is in that district orschool and to reportallrequired individual student data for thatstudent utilizing suchcode. The guidelines shall also providefor assigningdataverification codes to all students enrolled indistricts orcommunityschools on theeffective date of theguidelinesestablished under this section.

Individual student data shall be reported to the departmentthrough thedataacquisition sites utilizing the code but at notime shallthe state boardor the department have access toinformationthat would enable anydata verification code to bematched to personallyidentifiablestudent data.

Each school district shall ensure that the data verificationcode isincluded in the student's records reported to anysubsequent school districtor community school in which thestudent enrolls. Any such subsequentdistrict orschool shall utilize the same identifier in its reporting of dataunder this section.

(E) The guidelines adopted under this section may requireschool districts to collect and report data, information, orreports other than that described in divisions (A), (B), and (C)of this section for the purpose of complying with other reportingrequirements established in the Revised Code. The other data,information, or reports may be maintained in the educationmanagement information system but are not required to be compiledas part of the profile formats required under division (G) ofthissection or the annual statewide report required underdivision (H)of this section.

(F) Beginning with the school year that begins July 1,1991,the board of education of each school district shallannuallycollect and report to the state board, inaccordancewith theguidelines established by the board, the datarequiredpursuant tothis section. A school district may collect andreport these datanotwithstanding section 2151.358 or 3319.321 ofthe Revised Code.

(G) The state board shall, in accordance with theproceduresit adopts, annually compile the data reported by eachschooldistrict pursuant to division (D) of this section. Thestateboard shall design formats for profiling eachschooldistrict as awhole and each school building within each districtand shallcompile the data in accordance with these formats. These profileformats shall:

(1) Include all of the data gathered under this section inamanner that facilitates comparison among school districts andamong school buildings within each school district;

(2) Present the data on academic achievement levels asassessed by the testing of studentachievementmaintainedpursuant to division (B)(1)(d) of this section.

(H)(1) The state board shall, in accordance with theprocedures it adopts, annually prepare a statewide report for allschool districts and the general public that includes the profileof each of the school districts developed pursuant to division(G)of this section. Copies of the report shall be sent to eachschool district.

(2) The state board shall, in accordance with theproceduresit adopts, annually prepare an individual report foreach schooldistrict and the general public that includes theprofiles of eachof the school buildings in that school districtdeveloped pursuantto division (G) of this section. Copies ofthe report shall besent to the superintendent of the districtand to each member ofthe district board of education.

(3) Copies of the reports received from the state boardunder divisions(H)(1) and (2) of this section shall be madeavailable to the general public at each school district'soffices.Each district board of education shall make copies ofeach reportavailable to any person upon request and payment of areasonablefee for the cost of reproducing the report. The boardshallannually publish in a newspaper of general circulation intheschool district, at least twice during the two weeks prior totheweek in which the reports will first be available, a noticecontaining the address where the reports are available and thedate on which the reports will be available.

(I) Any data that is collected or maintained pursuant tothis section and that identifies an individual pupil is not apublic record for the purposes of section 149.43 of the RevisedCode.

(1) "School district" means any city, local, exemptedvillage, or joint vocational school district.

(2) "Cost" means any expenditure for operating expensesmadeby a school district excluding any expenditures for debtretirement except for payments made to any commercial lendinginstitution for any loan approved pursuant to section 3313.483 ofthe Revised Code.

(K) Any person who removes data from the informationsystemestablished under this section for the purpose ofreleasing it toany person not entitled under law to have accessto suchinformation is subject to section 2913.42 of the RevisedCodeprohibiting tampering with data.

(L) Any time the department of education determines that aschool districthas taken any of the actions described underdivision(L)(1), (2), or (3) of this section, it shall make areport of the actions of the district, send a copy of the reportto the superintendent of such school district, and maintain acopyof the report in its files:

(1) The school district fails to meet any deadlineestablished pursuant to this section for the reporting of anydatato the education management information system;

(2) The school district fails to meet any deadlineestablished pursuant to this section for the correction of anydata reported to the education management informationsystem;

(3) The school district reports data to the educationmanagementinformation system in a condition, as determined bythedepartment, that indicates that the district did not make a goodfaith effort in reporting the data to the system.

Any report made under this division shall includerecommendationsfor corrective action by the school district.

Upon making a report for the first timein a fiscal year, thedepartment shallwithhold ten per cent of the total amount dueduring that fiscalyear under Chapter 3317. of the Revised Code tothe school district to whichthe report applies. Upon making asecondreport in a fiscal year, the department shall withholdanadditional twenty per cent of such total amount due duringthatfiscal year to the school district to which the reportapplies.The department shall not release such fundsunless it determinesthat the district has taken corrective action. However, no suchrelease of funds shall occur if the districtfails to takecorrective action withinforty-five days of the dateuponwhich thereport was made by the department.

(M) No data acquisition site or school district shall acquire, change, or update its student administration software package to manage and report data required to be reported to the department unless it converts to a student software package that is certified by the department.

(N) The state board of education, in accordance withsections 3319.31 and3319.311 of the Revised Code, may suspend orrevoke a license as defined underdivision (A) of section 3319.31of the Revised Code that has been issued toany school districtemployee found to have willfully reportederroneous, inaccurate,or incomplete data to the educationmanagement information system.

(O) No person shall release or maintain any informationabout anystudent in violation of this section. Whoever violatesthis division isguilty of a misdemeanor of the fourth degree.

(P) The department shall disaggregate the data collectedunderdivision (B)(1)(o) of this section according to the race andsocioeconomic status of the students assessed. No data collectedunder that division shall be included on the report cards requiredby section 3302.03 of the Revised Code.

(Q) If the department cannot compile any of the informationrequired by division (C)(5) of section 3302.03 of the Revised Codebased upon the data collected under this section, the departmentshall develop a plan and a reasonable timeline for the collectionof any data necessary to comply with that division.

Sec. 3301.0715. (A) Except as provided in division (E) of this section, the board of education of each city,local, andexempted village school district shall administer each applicable diagnosticassessment developed and provided to the district inaccordancewith section 3301.079 of theRevised Code to the following:

(1) Each student enrolled in a building subject to division (E) of section 3302.04 of the Revised Code;

(2) Any student who transfers into the district or to a different school within the district if each applicable diagnostic assessment was not administered by the district or school the student previously attended in the current school year, within thirty days after the date of transfer. If the district or school into which the student transfers cannot determine whether the student has taken any applicable diagnostic assessment in the current school year, the district or school may administer the diagnostic assessment to the student.

(3) Each kindergarten student, not later than six weeks after the first day of school. For the purpose of division (A)(3) of this section, the district shall administer the kindergarten readiness assessment provided by the department of education. The district may administer the readiness assessment to a student prior to the student's enrollment in kindergarten, but in no case shall the results of the readiness assessment be used to prohibit the student from enrolling in kindergarten.

(B) Each district board shall administer each diagnosticassessment as the board deems appropriate.However, the boardshall administer any diagnostic assessment atleast once annuallyto all students in the appropriate gradelevel. A district boardmay administer any diagnostic assessmentin the fall and spring ofa school year to measure the amount of academic growth attributable to the instructionreceived by students during that schoolyear.

(C) Each district board shall utilize and score anydiagnostic assessment administered under division (A) of thissection in accordance with rules established by the department. Except as required by division (B)(1)(o) of section3301.0714 of the Revised Code, neither the state board of education nor thedepartmentshall require school districts to report the results ofdiagnosticassessments for any students to the department or tomake any suchresults available in any form to the public. Aftertheadministration of any diagnostic assessment, each districtshallprovide a student's completed diagnostic assessment, theresultsof such assessment, and any other accompanying documentsusedduring the administration of the assessment to the parent ofthatstudent upon the parent's request.

(D) Each district board shall provide intervention servicesto students whose diagnostic assessments show that they arefailing to make satisfactory progress toward attaining theacademic standards for their grade level.

(E) Any district that made adequate yearly progress, as defined in section 3302.01 of the Revised Code, in the immediately preceding school year may assess student progress in grades one through ~~eight~~ three using a diagnosticassessment other than the diagnostic assessment required bydivision (A) of this section.

(F) A district board may administer ~~any~~ the third grade writing diagnostic assessment provided to the district in accordance with section 3301.079 of the Revised Code to any student enrolled in a building that is not subject to division (A)(1) of this section. Any district electing to administer the diagnostic ~~assessments~~ assessment to students under this division shall provide intervention services to any such student whose diagnostic assessment shows unsatisfactory progress toward attaining the academic standards for the student's grade level.

Sec. 3301.12. (A) The superintendent of publicinstruction in addition to the authority otherwise imposed on~~him~~ the superintendent, shall perform the following duties:

(1) He The superintendent shall provide technical andprofessional assistanceand advice to all school districts in reference to all aspects ofeducation, including finance, buildings and equipment,administration, organization of school districts, curriculum andinstruction, transportation of pupils, personnel problems, andthe interpretation of school laws and state regulations.

(2) He The superintendent shall prescribe and require thepreparation andfiling of such financial and other reports from school districts,officers, and employees as are necessary or proper. He Thesuperintendent shall prescribe and require the installation by schooldistricts ofsuch standardized reporting forms and accounting procedures asare essential to the businesslike operations of the publicschools of the state.

(3) He The superintendent shall conduct such studies andresearch projects asare necessary or desirable for the improvement of public schooleducation in Ohio, and such as may be assigned to ~~him~~ thesuperintendent by the state board of education. Such studies and projects may include analysis of data contained in the education management information system established under section 3301.0714 of the Revised Code. For any study or project that requires the analysis of individual student data, the department of education or any entity with which the superintendent or department contracts to conduct the study or project shall maintain the confidentiality of student data at all times. For this purpose, the department or contracting entity shall use the data verification code assigned pursuant to division (D)(2) of section 3301.0714 of the Revised Code for each student whose data is analyzed. Except as otherwise provided in division (D)(1) of section 3301.0714 of the Revised Code, at no time shall the superintendent, the department, the state board of education, or any entity conducting a study or research project on the superintendent's behalf have access to a student's name, address, or social security number while analyzing individual student data.

(4) He The superintendent shall prepare and submit annually tothe stateboard of education a report of the activities of the departmentof education and the status, problems, and needs of education inthe state of Ohio.

(5) He The superintendent shall supervise all agencies overwhich the boardexercises administrative control, including schools for educationof handicapped persons.

(B) The superintendent of public instruction may annuallyinspect and analyze the expenditures of each school district andmake a determination as to the efficiency of each district'scosts, relative to other school districts in the state, forinstructional, administrative, and student support services. Thesuperintendent shall notify each school district as to the natureof, and reasons for, ~~his~~ the determination. The state board ofeducation shall adopt rules in accordance with Chapter 119. ofthe Revised Code setting forth the procedures and standards forthe performance of the inspection and analysis.

Sec. 3301.16. Pursuant to standards prescribed bythe state board of education as provided in division (D) ofsection 3301.07 of the Revised Code, the state board shallclassify and charter school districts and individual schoolswithin each district except that no charter shall be granted to anonpublic school unless pursuant to division (K) of section3301.0711 of the Revised Code the school elects to administer thetests prescribed by division (B) of section 3301.0710 of theRevised Code beginning July 1, 1995. ~~The~~

In the course of considering the charter of a new school district created under section 3311.26 or 3311.38 of the Revised Code, the state board shall require the party proposing creation of the district to submit to the board a map, certified by the county auditor of the county in which the proposed new district is located, showing the boundaries of the proposed new district. In the case of a proposed new district located in more than one county, the map shall be certified by the county auditor of each county in which the proposed district is located.

The state board shallrevoke the charter of any school district or school which failsto meet the standards for elementary and high schools asprescribed by the board. The state board shall also revoke thecharter of any nonpublic school that does not comply withsection 3313.612 of the Revised Code or, on or after July 1,1995, does not participate in the testing program prescribed bydivision (B) of section 3301.0710 of the Revised Code. In

In theissuance and revocation of school district or school charters,the state board shall be governed by the provisions of Chapter119. of the Revised Code.

No school district, or individual school operated by a school district, shall operate without a charter issued by the state board under this section.

In case a school district charter is revoked pursuant tothis section, the state board may dissolve the school districtand transfer its territory to one or more adjacent districts. Anequitable division of the funds, property, and indebtedness ofthe school district shall be made by the state board among thereceiving districts. The board of education of a receivingdistrict shall accept such territory pursuant to the order of thestate board. Prior to dissolving the school district, the stateboard shall notify the appropriateeducational service center governing board andall adjacent school district boards of education of its intentionto do so. Boards so notified may make recommendations to thestate board regarding the proposed dissolution and subsequenttransfer of territory. Except as provided in section 3301.161 ofthe Revised Code, the transfer ordered by the state board shallbecome effective on the date specified by the state board, butthe date shall be at least thirty days following the date ofissuance of the order.

A high school is one of higher grade than an elementaryschool, in which instruction and training are given in accordancewith sections 3301.07 and 3313.60 of the Revised Code and whichalso offers other subjects of study more advanced than thosetaught in the elementary schools and such other subjects as maybe approved by the state board of education.

An elementary school is one in which instruction andtraining are given in accordance with sections 3301.07 and3313.60 of the Revised Code and which offers such other subjectsas may be approved by the state board of education. In districtswherein a junior high school is maintained, the elementaryschools in that district may be considered to include only thework of the first six school years inclusive, plus thekindergarten year.

Sec. 3301.311. (A) As used in this section, "preschool program" has the same meaning as in section 3301.52 of the Revised Code.

~~After June 30, 2001~~ (B)(1) Subject to division (B)(2) of this section, after July 1, 2005, no ~~head start~~ preschool program, and no early childhood education program or early learning program as defined by the department of education shallreceive any funds from the state unless fifty per cent of the staff membersemployed by that program as teachers are working toward an associate degree ofa type approved by the department of education. After June 30, 2003,no head start program shallreceive any funds from the state unless each staff member employed by thatprogram as a teacher is working toward an associatedegree of a type approved by the department of education. ~~Beginning~~ Subject to division (B)(2) of this section, beginning in fiscal year 2008, no ~~head start~~ preschool program, early childhood education program, or early learning program, shall receiveany funds from the state unless every staff member employed bythat program as a teacher has attained such a degree.

(2) After July 1, 2010, no preschool program, and no early childhood education program or early learning program as defined by the department of education, shall receive any funds from the state unless fifty per cent of the staff members employed by the program as teachers have attained a bachelor's degree of a type approved by the department.

Sec. 3301.32. (A)(1) The chief administrator of any headstart agency shall request the superintendent of the bureau ofcriminal identification and investigation to conduct a criminalrecords check with respect to any applicant who has applied tothehead start agency for employment as a person responsible forthecare, custody, or control of a child. If the applicant doesnotpresent proof that the applicant has been a resident of thisstatefor the five-year period immediately prior to the date uponwhichthe criminal records check is requested or does not provideevidence that within that five-year period the superintendent hasrequested information about the applicant from the federal bureauof investigation in a criminal records check, the chiefadministrator shall request that the superintendent obtaininformation from the federal bureau of investigation as a part ofthe criminal records check for the applicant. If the applicantpresents proof that the applicant has been a resident of thisstate for that five-year period, the chief administrator mayrequest that the superintendent include information from thefederal bureau of investigation in the criminal records check.

(2) Any person required by division (A)(1) of this sectionto request a criminal records check shall provide to eachapplicant a copy of the form prescribed pursuant to division(C)(1) of section 109.572 of the Revised Code, provide to eachapplicant a standard impression sheet to obtain fingerprintimpressions prescribed pursuant to division (C)(2) of section109.572 of the Revised Code, obtain the completed form andimpression sheet from each applicant, and forward the completedform and impression sheet to the superintendent of the bureau ofcriminal identification and investigation at the time the chiefadministrator requests a criminal records check pursuant todivision (A)(1) of this section.

(3) Any applicant who receives pursuant to division (A)(2)of this section a copy of the form prescribed pursuant todivision(C)(1) of section 109.572 of the Revised Code and a copyof animpression sheet prescribed pursuant to division (C)(2) ofthatsection and who is requested to complete the form andprovide aset of fingerprint impressions shall complete the formor provideall the information necessary to complete the form andshallprovide the impression sheets with the impressions of theapplicant'sfingerprints. If an applicant, upon request, fails toprovidethe information necessary to complete the form or fails toprovide impressions of the applicant's fingerprints, theheadstart agency shall not employ that applicant for any position forwhicha criminal records checkis required by division (A)(1) ofthis section.

(B)(1) Except as provided in rules adopted by thedirectorof job and familyservices in accordance with division (E) ofthissection, no head start agency shall employ a person as apersonresponsible for the care, custody, or control of a childif theperson previously has been convicted of or pleaded guiltyto anyof the following:

(a) A violation of section 2903.01, 2903.02, 2903.03,2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04,2907.05,2907.06, 2907.07, 2907.08, 2907.09, 2907.21,2907.22, 2907.23,2907.25, 2907.31, 2907.32, 2907.321, 2907.322,2907.323, 2911.01,2911.02, 2911.11, 2911.12, 2919.12, 2919.22,2919.24, 2919.25,2923.12, 2923.13, 2923.161, 2925.02, 2925.03,2925.04, 2925.05,2925.06, or 3716.11 of the Revised Code, a violation ofsection2905.04 of the Revised Code as it existed prior to July 1, 1996, aviolation of section 2919.23 of the Revised Code that would havebeen aviolation of section 2905.04 of the Revised Code as itexisted prior to July1, 1996, had the violation occurred prior tothat date, a violationofsection 2925.11 of the Revised Codethatis not a minor drug possessionoffense, or felonious sexualpenetration in violation of formersection 2907.12 of the RevisedCode;

(b) A violation of an existing or former law of this state,any otherstate, or the United States that is substantiallyequivalent toany of the offenses or violations described indivision (B)(1)(a)of this section.

(2) A head start agency may employ an applicantconditionally until the criminal records check required by thissection is completed and the agency receives the results of thecriminal records check. If the results of the criminal recordscheck indicate that, pursuant to division (B)(1) of this section,the applicant does not qualify for employment, the agency shallrelease the applicant from employment.

(C)(1) Each head start agency shall pay to the bureau ofcriminal identification and investigation the fee prescribedpursuant to division (C)(3) of section 109.572 of the RevisedCodefor each criminal records check conducted in accordance withthatsection upon the request pursuant to division (A)(1) of thissection of the chief administrator of the head start agency.

(2) A head start agency may charge an applicant a fee forthe costs it incurs in obtaining a criminal records check underthis section. A fee charged under this division shall not exceedthe amount of fees the agency pays under division (C)(1) of thissection. If a fee is charged under this division, the agencyshall notify the applicant at the time of the applicant's initialapplicationfor employment of the amount of the fee and that,unless the feeis paid, the head start agency will not considerthe applicant foremployment.

(D) The report of any criminal records check conducted bythe bureau of criminal identification and investigation inaccordance with section 109.572 of the Revised Code and pursuantto a request made under division (A)(1) of this section is not apublic record for the purposes of section 149.43 of the RevisedCode and shall not be made available to any person other than theapplicant who is the subject of the criminal records check or theapplicant'srepresentative, the head start agency requesting thecriminalrecords check or its representative, and any court,hearingofficer, or other necessary individual involved in a casedealingwith the denial of employment to the applicant.

(E) The director of job andfamily services shall adoptrulespursuant to Chapter 119. of the Revised Code to implementthissection, including rules specifying circumstances under whichahead start agency may hire a person who has been convicted of anoffense listed in division (B)(1) of this section but who meetsstandards in regard to rehabilitation set by thedirector.

(F) Any person required by division (A)(1) of this sectionto request a criminal records check shall inform each person, atthe time of the person's initial application for employment, thatthe person is required to provide a set of impressions of theperson'sfingerprints andthat a criminal records check isrequired to be conducted andsatisfactorily completed inaccordance with section 109.572 ofthe Revised Code if the personcomes under final consideration forappointment or employment as aprecondition to employment forthat position.

(1)"Applicant" means a person who is under finalconsideration for appointment or employment in a position with ahead start agency as a person responsible for the care, custody,or control of a child.

(2)"Head start agency" ~~has the same meaning as in section3301.31 of the Revised Code~~ means an entity in this state that has been approved to be an agency for purposes of the "Head Start Act," 95 State 489 (1981), 42 U.S.C. 9831, as amended.

(3)"Criminal records check" has the same meaning as insection 109.572 of the Revised Code.

(4)"Minor drug possession offense" has the same meaning asin section 2925.01 of the Revised Code.

Sec. 3301.56. (A) The director of each preschool programshall be responsible for the following:

(1) Ensuring that the health and safety of the childrenaresafeguarded by an organized program of school health servicesdesigned to identify child health problems and to coordinateschool and community health resources for children, as evidencedby but not limited to:

(a) Requiring immunization and compliance with emergencymedical authorization requirements in accordance with rulesadopted by the state board of education under section 3301.53 ofthe Revised Code;

(b) Providing procedures for emergency situations,includingfire drills, rapid dismissals, and tornado drills inaccordancewith section 3737.73 of the Revised Code, and keepingrecords ofsuch drills or dismissals;

(e) Supervising grounds, play areas, and other facilitieswhen scheduled for use by children;

(3) Supervising each child's admission, placement, andwithdrawal according to established procedures;

(4) Preparing at least once annually for each group ofchildren in the program a roster of names and telephone numbersofparents, guardians, and custodians of children in the groupand,on request, furnishing the roster for each group to theparents,guardians, and custodians of children in that group.The directormay prepare a similar roster of all children in theprogram and,on request, make it available to the parents,guardians, andcustodians, of children in the program. Thedirector shall notinclude in either roster the name or telephonenumber of anyparent, guardian, or custodian who requests thatthe parent's,guardian's, or custodian's name or number notbe included, andshall not furnish any roster to any person other than aparent,guardian, or custodian of a child in the program.

(6) Supervising the instructional program and the dailyoperation of the program;

(7) Supervising and evaluating preschool staff membersaccording to a planned sequence of observations and evaluationconferences, and supervising nonteaching employees.

(B)(1) In each program the maximum number of children perpreschool staff member and the maximum group size by age categoryof children shall be as follows:

(2) When age groups are combined, the maximum number ofchildren per preschool staff member shall be determined by theageof the youngest child in the group, except that when no morethanone child thirty months of age or older receives child care ina group in which all the other children are in thenext older agegroup, the maximum number of children perchild-care staff memberand maximum group size requirements ofthe older age groupestablished under division (B)(1) of thissection shall apply.

(3) In a room where children are napping, if all thechildren are at least eighteen months of age, the maximum numberof children per preschool staff member shall, for a period not toexceed one and one-half hours in any twenty-four hour day, betwice the maximum number of children per preschool staff memberestablished under division (B)(1) of this section if all thefollowing criteria are met:

(b) Sufficient preschool staff members are present on thepreschool program premises to comply with division (B)(1) of thissection;

(4) Any accredited program that uses the Montessori method endorsed by the American Montessori society or the association Montessori internationale as its primary method of instruction and is licensed as a preschool program under section 3301.58 of the Revised Code may combine preschool children of ages three to five years old with children enrolled in kindergarten. Notwithstanding anything to the contrary in division (B)(2) of this section, when such age groups are combined, the maximum number of children per preschool staff member shall be twelve and the maximum group size shall be twenty-four children.

(C) In each building in which a preschool program isoperated there shall be on the premises, and readily available atall times, at least one employee who has completed a course infirst aid and in the prevention, recognition, and management ofcommunicable diseases which is approved by the state departmentofhealth, and an employee who has completed a course in childabuserecognition and prevention.

(D) Any parent, guardian, or custodian of a child enrolledin a preschool program shall be permitted unlimited access to theschool during its hours of operation to contactthe parent's,guardian's, or custodian's child, evaluate the care provided bytheprogram, or evaluate the premises, or for other purposesapproved by thedirector. Upon entering the premises, the parent,guardian, or custodianshall report to the school office.

Sec. 3301.86. The ~~OhioReads~~classroom reading improvement grants program is hereby established. TheOhioReads council shall award grants under the program inaccordance with the standards it establishes under section 3301.91 ofthe Revised Code. The OhioReadsoffice is the fiscal agent for the program and shall pay thegrants awarded by the council Under the program, the department of education shall award reading intervention grants to public schools and classrooms operated by city, local, and exempted village school districts, by community schools, and by educational service centers. The grants shall be used to fund the engagement of volunteers to assist struggling students in grades kindergarten through twelve improve their reading skills, to improve reading outcomes in low-performing schools, and to facilitate closing the achievement gap between students of different subgroups.

Sec. 3301.88. (A) A recipient of a grant under section 3301.86~~or 3301.87~~ of the Revised Code~~or an entity approved by the OhioReads council~~may request from the bureau of criminal identification and investigation acriminal records check on anyindividual, other than an individual described in division (B) ofthis section, who applies to participate in providing directly to children anyprogram orservice ~~through an entity approved by the OhioReads councilor~~ funded in whole or in part by the grant. If a recipient~~or an entity approved by the OhioReads council~~elects to request a criminal records check, the request shall consist of arequest for the information aschool district board of education may request under division(F)(2)(a) of section 109.57 of the Revised Codeand shall be accompanied by one of the following identification options:

(1) The form and standard impression sheet prescribed by the bureau underdivision (C) of section 109.572 of the Revised Code;

(2) A form prescribed by the bureau on which is specified the individual'sname, social security number, and date of birth.

(B) A grant recipient~~or an entity approved by the OhioReads council~~shall not request a criminal records check under division (A) of thissection with respect to any individual who furnishes the grant recipient~~or an entity approved by the OhioReads council~~with a certified copy of a report of a criminal records check completed by thebureau within one year prior toapplying to participate in providing programs or services~~through an entity approved by the OhioReads councilor~~ under ~~an OhioReads~~ the grant.

(C) Except as provided in rules adopted under division(G)(2) of this section, a grant recipient~~or an entity approved by the OhioReads council~~shall not allow an individual to participate in providingdirectly to children any program or service~~through an entity approved by the OhioReads councilor~~ funded in whole or in part by thegrant if the information requested under this section from the bureauindicates that the individual has ever pleadedguilty to or been found guilty by a jury or court of any of the following:

(2) A violationof section 2903.16, 2903.34, 2905.05, 2907.04, 2907.06, 2907.07,2907.08, 2907.09, 2907.23, 2907.25, 2907.31, 2919.12, 2919.22, 2919.24,2925.04, or 3716.11 of the Revised Code; a violation of section 2905.04of the Revised Codeas it existed prior to July 1, 1996; or a violation of section2919.23 of the Revised Code that would have been a violation ofsection 2905.04 of the Revised Code as it existed prior toJuly 1, 1996, had it been committed prior to that date;

(6) A violation of an existing or former ordinance of a municipalcorporation or law of the United States or another state that issubstantively comparable to anoffense listed in divisions (C)(1) to (5) of this section.

(D) A grant recipient ~~or an entity approved by the OhioReads council~~that elects to request criminal recordschecks may conditionally allow an individual to participate in providingprograms or services directly to children until the criminal recordscheck is completed and the grant recipient~~or an entity approved by the OhioReads council~~receives the results. If the results of the criminal records check indicatethat theindividual has been convicted of or pleaded guilty to an offense listed indivision (C) of this section,the grant recipient~~or an entity approved by the OhioReads council~~shall not allow the individual to further participatein providing directly to children any program or service~~through an entity approved by the OhioReads councilor~~ funded in whole or inpart by the grant, except as provided in the rules adopted under division(G)(2) of this section.

(E) The report of any criminal records check conducted inaccordance with division (F)(5) of section 109.57 of theRevised Code pursuant to a request under thissection is not a public record for purposes of section 149.43 of theRevised Code. The report shall not be made available toany person other than the individual who is the subject of the criminalrecords check or the individual's representative, thegrant recipient or the grant recipient's representative~~or an entity approved by the OhioReads council~~, and anycourt, hearing officer, or other necessary individual in a casedealing with the denial of the individual's participation in aprogram or service~~through an entity approved by the OhioReads councilor~~ funded by ~~an OhioReads~~ a grant awarded under section 3301.86 of the Revised Code.

(F) The ~~OhioReads office~~ department of education shall reimburse each grant recipient~~or an entity approved by the OhioReads council~~ for eachcriminal records check the actual amount paid by the grant recipient~~or an entity approved by the OhioReads council~~for the portion of the criminal records check conducted bythe bureau of criminal identification and investigation. Reimbursement shall be paid under this division only for criminal recordschecks on individuals who apply to participate in providing directly tochildren anyprogram or service ~~through an entity approved by the OhioReads councilor~~ funded in whole or in part by the grant. To receive it,the grant recipient~~or an entity approved by the OhioReads council~~must submit information to the ~~office~~ department in theform and manner required by the ~~office~~ department. The reimbursement is inaddition to the grant awarded to the recipient under section3301.86 ~~or 3301.87~~ of the Revised Code.

(G) The ~~department~~ state board of education shall adopt rules in accordancewith Chapter 119. of the Revised Code:

(1) Prescribing the form and manner in which grant recipients~~or an entity approved by the OhioReads council~~must submit information to the ~~OhioReads office~~ department to receivereimbursement under division (F) of this section;

(2) Specifying circumstances under which a grant recipient~~or an entity approved by the OhioReads council~~ may allow anindividual whose criminal records check report indicates that theindividual has been convicted of or pleaded guilty to an offense listedin division (C) of this section, but who meets standards in regardto rehabilitation set forth in the rules, to participate in providing directlyto children any program or service~~through an entity approved by the OhioReads councilor~~funded in whole or in part by the grant.

Sec. 3302.03. (A)Annually thedepartmentofeducationshall report for eachschool district and each school building in a district all of the following:

(1) The extent to which the school district or buildingmeets each of the applicableperformance indicatorscreated by thestateboard ofeducation undersection 3302.02 of the Revised Code and thenumber ofapplicable performanceindicators that have beenachieved;

(4) Whether the school district or building is excellent,effective,needscontinuous improvement, isunder anacademicwatch, or is inastate of academic emergency.

(1) A school district or building shall be declaredexcellent if it fulfills one of the following requirements:

(a) It makes adequate yearly progress and either meets at least ninety-four per cent of the applicable stateperformance indicators or has a performance index score established by the department.

(b) It has failed to make adequate yearly progress for not more than two consecutive years and either meets at least ninety-four per cent of the applicable state performance indicators or has a performance index score established by the department.

(2) A school districtor building shall be declaredeffective if it fulfills one of the following requirements:

(a) It makes adequate yearly progress and either meets at least seventy-five per cent but less than ninety-four per cent oftheapplicablestate performanceindicators or has a performance index score established by the department.

(b) It does not make adequate yearly progress and either meets at least seventy-five per cent of the applicable state performance indicators or has a performance index score established by the department, except that if it does not make adequate yearly progress for three consecutive years, it shall be declared in need of continuous improvement.

(3) A school districtor building shall be declared to beinneed ofcontinuous improvement if it fulfills one of the following requirements:

(a) It makes adequate yearly progress, meets less than seventy-five per cent of theapplicable stateperformanceindicators, and has a performance index score established by the department.

(b) It does not make adequate yearly progress and either meets at least fifty per cent but less than seventy-five per cent of the applicable state performance indicators or has a performance index score established by the department.

(4) A school districtor building shall be declared to beunder anacademic watch if it does not make adequate yearly progress and either meets at least thirty-one per cent but less than fifty per cent of theapplicablestateperformanceindicators or has a performance index score established by the department.

(5) A school districtor building shall be declared to beina stateof academic emergency if it does not make adequate yearly progress, does not meet at least thirty-one per centof theapplicable state performanceindicators, and has a performance index score established by the department.

(6) When designating performance ratings for school districts and buildings under divisions (B)(1) to (5) of this section, the department shall not assign a school district or building a lower designation from its previous year's designation based solely on one subgroup not making adequate yearly progress.

(C)(1) The department shall issue annual report cards foreach schooldistrict, each building within each district, and forthe state as a wholereflecting performance on theindicatorscreated by the state board under section 3302.02 of theRevisedCode, the performance index score, and adequate yearly progress.

(2) The department shall include on the report card for eachdistrict information pertaining to any changefrom the previousyear made by the school district or schoolbuildings within thedistrict on any performance indicator.

(3) When reporting data on student performance, thedepartment shall disaggregate that data according to the followingcategories:

(d) Performance of students grouped by those who have beenenrolled in a district or school for three or more years;

(e) Performance of students grouped by those who have beenenrolled in a district or school for more than one year and lessthan three years;

(f) Performance of students grouped by those who have beenenrolled in a district or school for one year or less;

(h) Performance of students grouped by those who are enrolledin a conversion community school established under Chapter 3314.of the Revised Code;

(i) Performance of students grouped by those who are classified as limited English proficient;

(l) Performance of students grouped by those who are identified as gifted pursuant to Chapter 3324. of the Revised Code.

The department may disaggregate data on student performanceaccording to other categories that the department determines areappropriate. To the extent possible, the department shall disaggregate data on student performance according to any combinations of two or more of the categories listed in divisions (C)(3)(a) to (l) of this section that it deems relevant.

In reporting data pursuant to division (C)(3) of thissection, thedepartment shall not include in the report cards anydata statistical in nature that is statistically unreliable orthat could result in the identification of individual students. For this purpose, the department shall not report student performance data for any group identified in division (C)(3) of this section that contains less than ten students.

(4) The department may include with the report cards anyadditional education and fiscalperformance datait deemsvaluable.

(5) The department shall include on each report card a listof additional information collected by the department that isavailable regarding the district or building for which the reportcard is issued. When available, such additional information shallinclude student mobility data disaggregated by race andsocioeconomic status, college enrollment data, and the reportsprepared under section 3302.031 of the Revised Code.

The department shall maintain a site on the world wide web.The report card shall include the address of the site and shallspecify that such additional information is available to thepublic at that site. The department shall also provide a copy ofeach item on the list to the superintendent of each schooldistrict. The district superintendent shall provide a copy of anyitem on the list to anyone who requests it.

(6) ~~For~~ This division does not apply to conversion community schools that primarily enroll students between sixteen and twenty-two years of age who dropped out of high school or are at risk of dropping out of high school due to poor attendance, disciplinary problems, or suspensions.

For any district that sponsors a conversion communityschool under Chapter 3314. of the Revised Code, the departmentshall combine data regarding the academic performance of studentsenrolled in the community school with comparable data from theschools of the district for the purpose of calculating theperformance of the district as a whole on the report card issuedfor the district.

(7) The department shall include on each report card the percentage of teachers in the district or building who are highly qualified, as defined by the "No Child Left Behind Act of 2001," and a comparison of that percentage with the percentages of such teachers in similar districts and buildings.

(8) The department shall include on the report card the number of master teachers employed by each district and each building once the data is available from the education management information system established under section 3301.0714 of the Revised Code.

(D)(1) In calculatingreading, writing, mathematics, socialstudies, or science proficiencyor achievement testpassage ratesused to determine school district or building performance underthissection,the department shall include allstudentstaking a test withaccommodationor towhom analternate assessment is administeredpursuant todivision(C)(1) or (3)of section 3301.0711 of theRevisedCode.

(2) In calculating performance index scores, rates of achievement on the performance indicators established by the state board under section 3302.02 of the Revised Code, and adequate yearly progress for school districts and buildings under this section, the department shall do all of the following:

(a) Include for each district or building only those students who are included in the ADM certified for the first full school week of October and are continuously enrolled in the district or building through the time of the spring administration of any test prescribed by section 3301.0710 of the Revised Code that is administered to the student's grade level;

(b) Include cumulative totals from both the fall and spring administrations of the third grade reading achievement test;

(c) Except as required by the "No Child Left Behind Act of 2001" for the calculation of adequate yearly progress, exclude for each district or building any limited English proficient student who has been enrolled in United States schools for less than one full school year.

Sec. 3302.10. (A) Beginning July 1, 2007, the superintendent of public instruction shall establish an academic distress commission for each school district that has been declared to be in a state of academic emergency pursuant to section 3302.03 of the Revised Code and has failed to make adequate yearly progress for four or more consecutive school years. Each commission shall assist the district for which it was established in improving the district's academic performance.

(B) Each academic distress commission shall consist of five voting members, three of whom shall be appointed by the superintendent of public instruction and two of whom shall be appointed by the president of the board of education of the applicable school district.

(C) Each academic distress commission shall seek input from the district board of education regarding ways to improve the district's academic performance, but any decision of the commission related to any authority granted to the commission under this section shall be final.

(1) Appoint school building administrators and reassign administrative personnel;

(2) Terminate the contracts of administrators or administrative personnel. The commission shall not be required to comply with section 3319.16 of the Revised Code with respect to any contract terminated under this division.

(3) Contract with a private entity to perform school or district management functions;

(4) Establish a budget for the district and approve district expenditures, unless a financial planning and supervision commission has been established for the district pursuant to section 3316.05 of the Revised Code.

(D) If the board of education of a district for which an academic distress commission has been established under this section renews any collective bargaining agreement under Chapter 4117. of the Revised Code during the existence of the commission, the district board shall not enter into any agreement that would render any decision of the commission unenforceable. Section 3302.08 of the Revised Code does not apply to this division.

Notwithstanding any provision to the contrary in Chapter 4117. of the Revised Code, if the board of education has entered into a collective bargaining agreement after the effective date of this section that contains stipulations relinquishing one or more of the rights or responsibilities listed in division (C) of section 4117.08 of the Revised Code, those stipulations are not enforceable and the district board shall resume holding those rights or responsibilities as if it had not relinquished them in that agreement until such time as both the academic distress commission ceases to exist and the district board agrees to relinquish those rights or responsibilities in a new collective bargaining agreement. The provisions of this paragraph apply to a collective bargaining agreement entered into after the effective date of this section and those provisions are deemed to be part of that agreement regardless of whether the district satisfied the conditions prescribed in division (A) of this section at the time the district entered into that agreement.

(E) An academic distress commission shall cease to exist when the district for which it was established receives a performance rating under section 3302.03 of the Revised Code of in need of continuous improvement or better for two out of three school years; however, the superintendent of public instruction may dissolve the commission earlier if the superintendent determines that the district can perform adequately without the supervision of the commission.

(A) "Chartered nonpublic school" means a nonpublic school that holds a valid charter issued by the state board of education under section 3301.16 of the Revised Code and meets the standards established for such schools in rules adopted by the state board.

(B) An "eligible student" is a student who satisfies the conditions specified in section 3310.03 of the Revised Code.

(D) "Resident district" means the school district in which a student is entitled to attend school under section 3313.64 or 3313.65 of the Revised Code.

(E) "School year" has the same meaning as in section 3313.62 of the Revised Code.

Sec. 3310.02. The educational choice scholarship pilot program is hereby established. Under the program,the department of education annually shall pay scholarships to attend chartered nonpublic schools in accordancewith section 3310.08 of theRevisedCode for up to the number of eligible students prescribed by the general assembly. If the number of students who apply for a scholarship exceeds the number prescribed by the general assembly, the department first shall award scholarships to eligible students who received scholarships in the prior school year, and then shall give priority to eligible students with family incomes at or below two hundred per cent of the federal poverty guidelines, as defined in section 5101.46 of the Revised Code. After awarding scholarships to previous recipients and to low-income eligible students, the department shall select students by lot to receive any remaining scholarships.

Sec. 3310.03. (A) A student is an "eligible student" for purposes of the educational choice scholarship pilot program if the student satisfies both of the following conditions:

(a) Is enrolled in a school building that is operated by the student's resident district and that the department of education declared, in the most recent rating of school buildings published prior to the first day of July of the school year for which a scholarship is sought and in the two preceding school years, to be in a state of academic emergency under section 3302.03 of the Revised Code;

(b) Is eligible to enroll in kindergarten in the school year for which a scholarship is sought and otherwise would be assigned under section 3319.01 of the Revised Code to a school building described in division (A)(1)(a) of this section;

(c) Is enrolled in a community school established under Chapter 3314. of the Revised Code but otherwise would be assigned under section 3319.01 of the Revised Code to a building described in division (A)(1)(a) of this section.

(2) The student's resident district is not a school district in which the pilot project scholarship program is operating under sections 3313.974 to 3313.979 of the Revised Code.

(B) A student who receives a scholarship under the educational choice scholarship pilot program remains an eligible student and may continue to receive scholarships in subsequent school years until the student completes grade twelve, so long as all of the following apply:

(2) The student takes each state test prescribed for the student's grade level under section 3301.0710 or 3301.0712 of the Revised Code while enrolled in a chartered nonpublic school;

(3) In each school year that the student is enrolled in a chartered nonpublic school, the student is absent from school for not more than twenty days that the school is open for instruction, not including absences due to illness or injury confirmed in writing by a physician.

(C) The superintendent shall cease awarding first-time scholarships with respect to a school building that, in the most recent ratings of school buildings published under section 3302.03 of the Revised Code prior to the first day of July of the school year, ceases to be in a state of academic emergency. However, students who have received scholarships in the prior school year remain eligible students pursuant to division (B) of this section.

Sec. 3310.04. Any eligible student who is enrolled in a chartered nonpublic school and for whom a scholarship under the educational choice scholarship pilot program has been awarded shall be entitled to transportation to and from the chartered nonpublic school by the student's resident district in the manner prescribed in section 3327.01 of the Revised Code.

Sec. 3310.05. A scholarship under the educational choice scholarship pilot program is not available for any student whose resident district is a school district in which the pilot project scholarship program is operating under sections 3313.974 to 3313.979 of the Revised Code. The two pilot programs are separate and distinct. The general assembly has prescribed separate scholarship amounts for the two pilot programs in recognition of their differing eligibility criteria. The pilot project scholarship program operating under sections 3313.974 to 3313.979 of the Revised Code is a district-wide program that may award scholarships to students who do not attend district schools that face academic challenges, whereas the educational choice scholarship pilot program established under sections 3310.01 to 3310.17 of the Revised Code is limited to students of individual district school buildings that face academic challenges.

Sec. 3310.06. It is the policy adopted by the general assembly that the educational choice scholarship pilot program shall be construed as one of several educational options available for students enrolled in academic emergency school buildings. Students may be enrolled in the schools of the student's resident district, in a community school established under Chapter 3314. of the Revised Code, in the schools of another school district pursuant to an open enrollment policy adopted under section 3313.98 of the Revised Code, in a chartered nonpublic school with or without a scholarship under the educational choice scholarship pilot program, or in other schools as the law may provide.

Sec. 3310.07. Any parent, or any student who is at least eighteen years of age, who is seeking a scholarship underthe educational choice scholarship pilot program shall notify thedepartment ofeducationof the student's and parent's namesand address, thechartered nonpublic school in which the student has beenacceptedfor enrollment, and the tuition chargedbythe school.

Sec. 3310.08. (A) The amount paid for an eligible student under the educational choicescholarship pilot program shall bethe lesser ofthe tuition of the chartered nonpublic school in which thestudent is enrolled or the maximum amount prescribed in section 3310.09 of the Revised Code.

(B)(1) The department shall pay to the parent of each eligible student for whom a scholarship is awarded under the program, or to the student if at least eighteen years of age, periodic partial payments of the scholarship.

(2) The department shallproportionately reduce or terminate the paymentsfor any studentwho withdraws from a chartered nonpublic school prior to the end of theschool year.

(C)(1) The department shall deductfrom the payments made to each schooldistrict underChapter 3317.and, if necessary, sections 321.24 and 323.156 oftheRevisedCode the amount of five thousand two hundred dollars for each eligible student awarded a scholarship under the educational choice scholarship pilot program who is entitled under section 3313.64 or 3313.65 of the Revised Code to attend school in the district. The amount deducted under this division funds scholarships for students under both the educational choice scholarship pilot program and the pilot project scholarship program under sections 3313.974 to 3313.979 of the Revised Code.

(2) If the department reduces or terminates payments to a parent or a student, as prescribed in division (B)(2) of this section, and the student re-enrolls in the schools of the student's resident district before the end of the school year, the department shall proportionally restore to the resident district the amount deducted for that student under division (C)(1) of this section.

(D) In the case of any school district from which a deduction is made under division (C) of this section, the department shall disclose on the district's SF-3 form, or any successor to that form used to calculate a district's state funding for operating expenses, a comparison of the following:

(1) The district's state base-cost payment, as calculated under division (A)(1) of section 3317.022 of the Revised Code prior to making the adjustments under divisions (A)(2) and (3) of that section, with the scholarship students included in the district's formula ADM;

(2) What the district's state base-cost payment would have been, as calculated under division (A)(1) of that section prior to making the adjustments under divisions (A)(2) and (3) of that section, if the scholarship students were not included in the district's formula ADM.

This comparison shall display both the aggregate difference between the amounts described in divisions (D)(1) and (2) of this section, and the quotient of that aggregate difference divided by the number of eligible students for whom deductions are made under division (C) of this section.

Sec. 3310.09. (A) The maximum amount awarded to an eligible student in fiscal year 2007 under the educational choice scholarship pilot program shall be as follows:

(1) For grades kindergarten through eight, four thousand two hundred fifty dollars;

(B) In fiscal year 2008 and in each fiscal year thereafter, the maximum amount awarded under the program shall be the applicable maximum amount awarded in the previous fiscal year increased by the same percentage by which the general assembly increased the formula amount, as defined in section 3317.02 of the Revised Code, from the previous fiscal year.

Sec. 3310.10. A scholarship awarded under section 3310.08 of the Revised Code may be used only to pay tuition to any chartered nonpublic school.

Sec. 3310.13. (A) No chartered nonpublic school shall charge any student whose family income is at or below two hundred per cent of the federal poverty guidelines, as defined in section 5101.46 of the Revised Code, a tuition fee that is greater than the total amount paid for that student under section 3310.08 of the Revised Code.

(B) A chartered nonpublic school may charge any other student who is paid a scholarship under that section the difference between the amount of the scholarship and the regular tuition charge of the school. Each chartered nonpublic school shall permit such an eligible student's family, at the family's option, to provide volunteer services in lieu of cash payment to pay all or part of the amount of the school's tuition not covered by the scholarship paid under section 3310.08 of the Revised Code.

Sec. 3310.14. Notwithstanding division (K) of section 3301.0711 of the Revised Code, each chartered nonpublic school that enrolls students awarded scholarships under sections 3310.01 to 3310.17 of the Revised Code annually shall administer the tests prescribed by section 3301.0710 or 3301.0712 of the Revised Code to each scholarship student in accordance with section 3301.0711 of the Revised Code. Each chartered nonpublic school shall report to the department of education the results of each test administered to each scholarship student under this section.

Nothing in this section requires a chartered nonpublic school to administer any achievement test, except for an Ohio graduation test prescribed by division (B) of section 3301.0710 of the Revised Code, as required by section 3313.612 of the Revised Code, to any student enrolled in the school who is not a scholarship student.

Sec. 3310.16. (A) The state board of education shall adopt rules in accordance with Chapter 119. of the Revised Code prescribing procedures for the administration of the educational choice scholarship pilot program.

(B) The state board and the department of education shall not require chartered nonpublic schools to comply with any education laws or rules or other requirements that are not specified in sections 3310.01 to 3310.17 of the Revised Code and that otherwise would not apply to a chartered nonpublic school.

Sec. 3310.17. The general assembly shall prescribe the number of students that may be selected each fiscal year for scholarships under the educational choice scholarship pilot program.

Sec. 3311.11. If the state board of education adopts a resolution under this chapter proposing the creation of a new city or local school district that was not in operation during the 2004-2005 school year, the district shall not be created unless both houses of the general assembly approve the creation of the district through passage of a concurrent resolution.

Sec. 3311.19. (A) The management and control of a jointvocational school district shall be vested in the jointvocationalschool district board of education. Where a jointvocationalschool district is composed only of two or more localschooldistricts located in one county, or when all theparticipatingdistricts are in one county and the boards of suchparticipatingdistricts so choose, the educationalservice center governingboardof the county in which the joint vocational school districtislocated shall serve as the joint vocational school districtboardof education. Where a joint vocational school district iscomposed of local school districts of more than one county, or ofany combination of city, local, or exempted villageschooldistricts or educational service centers, unless administration bytheeducational service center governing board has been chosen byall theparticipating districts inone county pursuant to thissection, the board of education ofthe joint vocational schooldistrict shall be composed of one ormore persons who are membersof the boards of education from eachof the city or exemptedvillage school districts ormembers of the educational servicecenters' governing boardsaffected to be appointed by the boardsof education or governing boards ofsuchschool districts andeducational service centers. In such joint vocationalschooldistricts thenumber and terms of members of the joint vocationalschooldistrict board of education and the allocation of a givennumberof members to each of the city and exempted villagedistricts and educational service centers shall be determined inthe plan forsuch district,provided that each such jointvocational school district board ofeducation shall be composed ofan odd number of members.

(B) Notwithstanding division (A) of this section, agoverningboard of an educational service center that has membersofitsgoverning board serving on ajoint vocational schooldistrict board of education may make arequest to the jointvocational district board that the jointvocational schooldistrict plan be revised to provide for one ormore members ofboards of education of local school districtsthat are within theterritory of the educationalservice district and within the jointvocational school district to serve in the place of or inadditionto its educational service center governing board members. Ifagreementis obtained among a majority of the boards of educationand governing boardsthat havea member serving on the jointvocational school district board ofeducation and among a majorityof the local school districtboards of education included in thedistrict and located withinthe territory of the educationalservice centerwhose board requests the substitutionor addition,the state board of education may revise the jointvocationalschool district plan to conform with such agreement.

(C) If the board of education of any school districtoreducational service center governing board included within a jointvocational district that has had itsboard or governing boardmembership revised under division (B) of this sectionrequests thejoint vocational school district board to submit tothe stateboard of education a revised plan under which one ormore jointvocational board members chosen in accordance with aplan revisedunder such division would again be chosen in themanner prescribedby division (A) of this section, the jointvocational board shallsubmit the revised plan to the state boardof education, providedthe plan is agreed to by a majority of theboards of educationrepresented on the joint vocational board, amajority of the localschool district boards included within thejoint vocationaldistrict, and each educational service centergoverning boardaffected by such plan. The state board of education may revisethe joint vocational school district plan to conform with therevised plan.

(D) The vocational schools in such joint vocational schooldistrict shall be available to all youth of school age within thejoint vocational school district subject to the rules adopted bythe joint vocational school district board of education in regardto the standards requisite to admission. A joint vocationalschool district board of education shall have the same powers,duties, and authority for the management and operation of suchjoint vocational school district as is granted by law, except bythis chapter and Chapters 124., 3317., 3323., and 3331. of theRevised Code, to a board of education of a city school district,and shall be subject to all the provisions of law that apply to acity school district, except such provisions in this chapter andChapters 124., 3317., 3323., and 3331. of the Revised Code.

(E) Where a governing board of an educationalservice centerhas been designatedto serve as the joint vocational schooldistrict board ofeducation, the educational service centersuperintendent shall be theexecutive officer for the jointvocational school district, andthe governing board may providefor additional compensation to be paid tothe educational servicecenter superintendent by the jointvocational school district, butthe educational servicecentersuperintendent shall have nocontinuing tenure other than that of educational service centersuperintendent. Thesuperintendent of schools of a jointvocational school districtshall exercise the duties and authorityvested by law in asuperintendent of schools pertaining to theoperation of a schooldistrict and the employment and supervisionof its personnel. The jointvocational school district board ofeducation shallappoint a treasurer of the joint vocational schooldistrict whoshall be the fiscal officer for such district and whoshall haveall the powers, duties, and authority vested by law inatreasurer of a board of education. Where a governing board ofan educational service center has been designated to serve asthejoint vocationalschool district board of education, such boardmay appoint theeducational service center superintendent asthetreasurer of the jointvocational school district.

(F) Each member of a joint vocational school districtboardof education may be paid such compensation as the boardprovidesby resolution, but it shall not exceedone hundredtwenty-fivedollarsper member for each meeting attended plusmileage, at therate per mileprovided by resolution of the board,to and frommeetings of the board.

The board may provide by resolution for the deduction ofamounts payable for benefits under ~~division (D) of~~ section3313.202 of the Revised Code. No member of a board of a jointvocational school district who is purchasing any category ofbenefits under such section offered by a city, local, or exemptedvillage school board or educational service center governingboard,shall purchase the same category of benefits as a member ofthejoint vocational school board.

Each member of a joint vocational school district board maybe paid such compensation as the board provides by resolution forattendance atan approved training program, provided that suchcompensationshall not exceed sixty dollars per day for attendanceat atraining program three hours or fewer in length and onehundredtwenty-five dollars a day for attendance at a trainingprogramlonger than three hours in length. However, no boardmember shallbe compensated for the same training program underthis sectionand section 3313.12 of the Revised Code.

Sec. 3313.12. Each member of the educational service centergoverning boardmay be paid such compensation as the governingboard provides byresolution, provided that any such compensationshall not exceedone hundred twenty-five dollars a day plusmileage both ways, at the rate per mileprovided by resolution ofthe governing board,for attendanceat anymeeting of the board.Suchcompensation and the expenses of theeducationalservicecentersuperintendent, itemized andverified, shall bepaid fromtheeducational service center governing board fund uponvoucherssigned bythepresident of the governing board.

The board of education of any city, local, or exemptedvillage school districtmay provide by resolution for compensationof itsmembers, provided that such compensation shall not exceedone hundred twenty-fivedollars per member for meetingsattended.The board may provide by resolution for the deduction ofamountspayable for benefits under ~~division (D) of~~ section3313.202 of theRevised Code.

Each member of a district board or educational service centergoverning board may be paid such compensation as the respectiveboard provides by resolution for attendance at an approvedtrainingprogram, provided that such compensation shall not exceedsixtydollars a day for attendance at a training program threehours orfewer in length and one hundred twenty-five dollars a dayforattendance at a training program longer than three hours inlength.

Sec. 3313.202. (A) The board of education of a schooldistrict may procure and pay all or part of the cost of groupterm life, hospitalization, surgical care, or major medicalinsurance, disability, dental care, vision care, medical care,hearing aids, prescription drugs, sickness and accidentinsurance, group legal services~~, or a combination of any of theforegoing types of insurance or~~ coverage~~, whether~~ issued by aninsurance company ~~or a healthinsuringcorporation~~ duly licensed by this state, covering the teachingor nonteaching employees of the school district, or a combinationof both, or the dependent children and spouses of such employees,provided if such coverage affects only the teaching employees ofthe district such coverage shall be with the consent of amajority of such employees of the school district, or if suchcoverage affects only the nonteaching employees of the districtsuch coverage shall be with the consent of a majority of suchemployees. If such coverage is proposed to cover all theemployees of a school district, both teaching and nonteachingemployees, such coverage shall be with the consent of a majorityof all the employees of a school district. A board of educationshall continue to carry, on payroll records, all school employeeswhose sick leave accumulation has expired, or who are on adisability leave of absence or an approved leave of absence, forthe purpose of group term life~~, hospitalization, surgical, majormedical, or any other~~ insurance. A board of education may payall or part of such coverage except when such employees are on anapproved leave of absence, or on a disability leave of absencefor that period exceeding two years. As used in this section,"teaching employees" means any person employed in the publicschools of this state in a position for which the person is required tohave a certificate or license pursuant to sections 3319.22 to 3319.31 of theRevised Code. "Nonteaching employees" as used in this sectionmeans any person employed in the public schools of the state in aposition for which the person is not required to have acertificate or license issued pursuant to sections 3319.22 to 3319.31 of theRevised Code.

(B) The board of education of a school district may enterinto an agreement with a jointly administered trust fund whichreceives contributions pursuant to a collective bargainingagreement entered into between the board and any collectivebargaining representative of the employees of the board for thepurpose of providing for self-insurance of all risk in theprovision of fringe benefits similar to those that may be paidpursuant to division (A) of this section, and may provide throughthe self-insurance method specific fringe benefits as authorizedby the rules of the board of trustees of the jointly administeredtrust fund. Benefits provided under this section include, butare not limited to, hospitalization, surgical care, major medicalcare, disability, dental care, vision care, medical care, hearingaids, prescription drugs, group life insurance, sickness andaccident insurance, group legal services, or a combination of theabove benefits, for the employees and their dependents.

(C) Notwithstanding any other provision of the RevisedCode, the board of education and any collective bargainingrepresentative of employees of the board may agree in acollective bargaining agreement that any mutually agreed fringebenefit, including, but not limited to, hospitalization, surgicalcare, major medical care, disability, dental care, vision care,medical care, hearing aids, prescription drugs, group lifeinsurance~~, sickness and accident insurance,~~ group legal services,or a combination thereof, for employees and their dependents beprovided through a mutually agreed upon contribution to a jointlyadministered trust fund. The amount, type, and structure offringe benefits provided under this division are subject to thedetermination of the board of trustees of the jointlyadministered trust fund. Notwithstanding any other provision ofthe Revised Code, competitive bidding does not apply to thepurchase of fringe benefits for employees under this divisionthrough a jointly administered trust fund.

~~(D)~~ Any elected or appointed member of the board ofeducation of a school district and the dependent children and spouse of the member maybe covered, at the option of the member, ~~as an employee of theschool district~~ under any ~~benefit~~ medical plan ~~adopted~~ designed by the school employees health care board under ~~this~~section 9.901 of the Revised Code. The member shall pay ~~to the school district the amountcertified~~ all premiums for that coverage ~~under division (D)(1) or (2) of thissection~~. Payments for such coverage shall be made, in advance,in a manner prescribed by the school employees health care board. The member's exercise of anoption to be covered under this section shall be in writing,announced at a regular public meeting of the board of education, and recordedas a public record in the minutes of the board.

~~For the purposes of determining the cost to board membersunder this division:~~

(1) In the case of a benefit plan purchased under division(A) of this section, the provider of the benefits shall certifyto the board the provider's charge for coverage under each optionavailable to employees under that benefit plan;

(2) In the case of benefits provided under division (B) or(C) of this section, the board of trustees of the jointlyadministered trust fund shall certify to the board of educationthe trustees' charge for coverage under each option available toemployees under each benefit plan.

~~(E) The board may provide the benefits described in thissection through an individual self-insurance program or a jointself-insurance program as provided in section 9.833 of theRevised Code.~~

(A) "Children" means children who are enrolled inkindergarten or who are of compulsory school age.

(B) "Latchkey program" means a program under whichchildren are provided with child care during a fiscal year at anytime outside of regular school hours. A program that containsany religious content, that uses any religious materials, or thatin any way promotes or furthers any religious beliefs is not alatchkey program.

~~(D)~~ "Program provider" means any agency, organization, orindividual, licensed under Chapter 5104. of the Revised Code orexempted from the licensing requirements of that chapter.

(1) Space in a building that is owned or controlled by aschool district and that is used for other school districtpurposes in addition to latchkey programs;

Sec. 3313.208. A board of education of a school district or the governing board of an educational service center may assess the needfor latchkey programs in its district or territory and determine the best andmost efficient manner of providing latchkey programs to childrenresiding in the district or territory. Prior to operating any latchkeyprogram, making any payments, or providing any employees orancillary services under sections 3313.207 to 3313.209 of theRevised Code, a board ~~of education~~ shall provide notification toparents and other interested parties that the board isconsidering ~~district~~ participation in the provision of latchkeyprograms and shall adopt a policy ensuring public input on theboard's decision whether or not to participate, as well as anydecisions concerning the district's or service center's role in the implementationand funding of any latchkey programs if the board does decide toparticipate. The policy shall also include provision forregular, periodic public input in the evaluation of any schooldistrict or service center participation in the provision of latchkey programs.

A board ~~of education~~ may ~~operate~~ provide a latchkey program,subject to the following limitations:

(A) The program shall be maintained and operated andpupils shall be admitted pursuant to rules adopted by the board;

(B) Fees or tuition, in amounts determined by the board,may be charged for participation in the program and shall bedeposited in a special fund;

~~(C) The board shall not expend any money from the generalfund of the district for the program, except as follows:~~

(1) The board may expend any money in the district'sgeneral fund resulting from an appropriation of the generalassembly that specifically permits the expenditure of suchappropriated funds for such a program.

~~(2) The board may provide ancillary services for theprogram notwithstanding the fact that some portions of suchservices may be supported by money from the district's generalfund~~.

Sec. 3313.209. (A) A board of education of a schooldistrict that does not ~~operate~~ provide a latchkey program may provideancillary services to and may make payments to any programprovider that operates a latchkey program that enrolls one ormore children who are residents of the school district.

(B) A board of education of a school district that doesnot ~~operate~~ provide a latchkey program and that does not make paymentsunder division (A) of this section may furnish to any person orentity that operates a latchkey program ancillary services oremployees for use solely in conjunction with the program'soperation.

(C) ~~No board of education shall expend any money from thegeneral fund of the district pursuant to division (A) or (B) ofthis section, except as follows:~~

(1) The board may expend any money in the district'sgeneral fund resulting from an approrpriation ofthe generalassembly that specifically permits the expenditure of suchappropriated funds for latchkey programs.

(2) The board may provide ancillary services pursuant todivision (A) or (B) of this section notwithstanding the fact thatsome portion of such services may be supported by money from thedistrict's general fund.

~~(D)~~ A board of education shall enter into a contract witha program provider as a condition for making any payments orfurnishing any ancillary services or employees authorized bydivision (A) or (B) of this section.

Sec. 3313.33. (A) Conveyances made by a board of educationshall be executed by the president and treasurer thereof.

(B) Except as provided in division (C) of this section, no member of the board shall have, directly or indirectly, anypecuniary interest in any contract of the board or be employed inany manner for compensation by the board of which the personis a member. No contract shall be binding upon any board unless it is made orauthorized at a regular or special meeting of such board.

(1) The member's pecuniary interest in that contract is that the member is employed by a political subdivision, instrumentality, or agency of the state that is contracting with the board;

(2) The member does not participate in any discussion or debate regarding the contract or vote on the contract;

(3) The member files with the school district treasurer an affidavit stating the member's exact employment status with the political subdivision, instrumentality, or agency contracting with the board.

(D) This section does not apply where a member of the board,being a shareholder of a corporation but not being an officer ordirector thereof, owns not in excess of five per cent of thestock of such corporation. If a stockholder desires to avail self of the exception, before entering upon suchcontract such person shall first file with the treasurer an affidavit stating the stockholder's exact status and connection with saidcorporation.

This section does not apply where a member of the boardelects to be covered by a ~~benefit~~ medical plan ~~of the school district~~under ~~division (D) of~~ section 3313.202 of the Revised Code.

Sec. 3313.489. (A) The superintendent of publicinstruction shall examine each ~~spending plan and appropriationsmeasure~~ five-year projection of revenues and expenditures submitted under section 5705.391 of the Revised Code andshall determine whether the information contained therein,together with any other relevant information, indicates that thedistrict may be financially unable to operate its instructionalprogram on all days set forth in its adopted school calendars andpay all obligated expenses during the current fiscal year. If aboard of education has not adopted a school calendar for theschool year beginning on the first day of July of the currentfiscal year at the time an examination is required under thisdivision, the superintendent shall examine the ~~spending plan andappropriations measure~~ five-year projection and determine whether the district may befinancially unable to pay all obligated expenses and operate itsinstructional program for the number of days on which instructionwas held in the preceding fiscal year.

(B) If the superintendent of public instruction determinespursuant to division (A) of this section that a schooldistrict may be financially unable to operate its instructionalprogram on all days required by such division and pay allobligated expenses during the current fiscal year, thesuperintendent shall provide written notification of suchdetermination to the president of the district's board ofeducation and the auditor of state.

(C) This section does not apply to a school districtdeclared to be under a fiscal emergency pursuant to division (B) of section3316.03 of the Revised Code.

Sec. 3313.6410. This section applies to any school that is operated by a school district and in which the enrolled students work primarily on assignments in nonclassroom-based learning opportunities provided via an internet- or other computer-based instructional method.

(A) Any school to which this section applies shall withdraw from the school any student who, for two consecutive school years, has failed to participate in the spring administration of any test prescribed under section 3301.0710 or 3301.0712 of the Revised Code for the student's grade level and was not excused from the test pursuant to division (C)(1) or (3) of section 3301.0711 of the Revised Code. The school shall report any such student's data verification code, as assigned pursuant to section 3301.0714 of the Revised Code, to the department of education to be added to the list maintained by the department under section 3314.26 of the Revised Code.

(B) No school to which this section applies shall receive any state funds under Chapter 3317. of the Revised Code for any enrolled student whose data verification code appears on the list maintained by the department under section 3314.26 of the Revised Code. Notwithstanding any provision of the Revised Code to the contrary, the parent of any such student shall pay tuition to the school district that operates the school in an amount equal to the state funds the district otherwise would receive for that student, as determined by the department. A school to which this section applies may withdraw any student for whom the parent does not pay tuition as required by this division.

Sec. 3313.975. As used in this section and in sections3313.975 to 3313.979 of the Revised Code, "the pilot projectschool district"or "thedistrict" means any school district included in the pilot project scholarshipprogram pursuant to this section.

(A) The superintendent of public instructionshall establish a pilot projectscholarship program and shall include in such program anyschool districts that are or have ever been under federalcourt order requiring supervision andoperational management of the district by the state superintendent. Theprogram shall provide for a number of studentsresiding in any such district to receive scholarships to attendalternative schools, and for an equal number of students toreceive tutorial assistance grants while attending public schoolin any such district.

(B) The state superintendent shall establish an applicationprocess and deadline for accepting applications from students residing inthe district to participate in the scholarship program. In theinitial year of the program students may only use a scholarshipto attend school in grades kindergarten through third.

The state superintendent shall award as many scholarships and tutorialassistance grants as can be funded given the amount appropriatedfor the program. In no case, however, shall more than fifty percent of all scholarships awarded be used by students who wereenrolled in a nonpublic school during the school year ofapplication for a scholarship.

(C)(1) The pilot project program shallcontinue ineffect each year that the general assembly has appropriatedsufficient money to fund scholarships and tutorial assistancegrants. In each year the program continues, no new students mayreceive scholarships unless they are enrolled in ~~grade~~ gradeskindergarten~~, one, two, or three~~ to eight. However, any student whohasreceived a scholarship the preceding year may continue to receiveone until the student has completed grade ~~eight~~ ten. Beginning in the ~~2003-2004~~ 2005-2006 academic year, a student who previously has received a scholarship may receive a scholarship in grade ~~nine~~ eleven. Beginning in the ~~2004-2005~~ 2006-2007 academic year, a student who previously has received a scholarship may receive a scholarship in grade ~~ten~~ twelve.

(2) If the general assembly discontinues the scholarshipprogram, all students who are attending an alternative schoolunder the pilot project shall beentitled to continued admittance to that specific school throughall grades ~~up to the tenth grade~~ that are provided insuch school, under the same conditionsas when they were participating in the pilot project. Thestate superintendent shall continue to make scholarship payments inaccordance with division(A) or (B) of section 3313.979 of theRevised Code for students who remain enrolledin an alternative school under this provision in any year thatfunds have been appropriated for this purpose.

If funds are not appropriated, the tuition charged to the parentsof a student who remains enrolledin an alternative school under this provision shall not beincreased beyond the amount equal to the amount of thescholarship plus any additional amount charged that student's parent in themost recent year of attendance as aparticipant in the pilot project, except that tuition for all thestudents enrolled in such school may be increased by the samepercentage.

(D) Notwithstanding sections 124.39, 3307.54,and 3319.17 of the Revised Code, if the pilotproject school district experiences a decrease in enrollment dueto participation in a state-sponsoredscholarship program pursuant to sections 3313.974 to 3313.979 ofthe Revised Code, the district board of education mayenter into an agreement with any teacher it employs to provide tothat teacher severance pay or early retirement incentives, orboth, if the teacher agrees to terminate the employment contractwith the district board, provided any collective bargainingagreement in force pursuant to Chapter 4117. of theRevised Code does not prohibit such an agreementfor termination of a teacher's employment contract.

Sec. 3313.976. (A) No private school mayreceive scholarship payments from parents pursuant to section3313.979 of the Revised Code until the chiefadministrator of the private school registers the school with thesuperintendent of public instruction. The state superintendent shall registerany school that meets the following requirements:

(1) The school is located within the boundaries of thepilot project school district;

(2) The school indicates in writing its commitment tofollow all requirements for a state-sponsored scholarship programspecifiedundersections 3313.974 to 3313.979 of the RevisedCode, including, but not limited to, the requirementsforadmitting students pursuant to section 3313.977 of the RevisedCode;

(3) The school meets all state minimum standards forchartered nonpublic schools in effect on July 1, 1992,except that the state superintendent at the superintendent's discretion mayregisternoncharterednonpublic schoolsmeeting the other requirements of this division;

(4) The school does not discriminate on the basis ofrace, religion, or ethnic background;

(5) The school enrolls a minimum of ten students perclass or a sum of at least twenty-five students in all theclasses offered;

(6) The school does not advocate or foster unlawfulbehavior or teach hatred of any person or group on the basis ofrace, ethnicity, national origin, or religion;

(7) The school does not provide false or misleadinginformation about the school to parents, students, or the generalpublic;

(8) For students in grades kindergarten through eight, the school agrees not to charge any tuition tolow-income families receiving ninety per cent of the scholarship amount through the scholarship program, pursuant to division (A) of section 3313.978 of the Revised Code, inexcess of ten percent of the scholarship amount established pursuant to division(C)(1) of section 3313.978 of the RevisedCode, excluding any increase described in division(C)(2) of that section. Theschool shall permit any such tuition, at the discretion of theparent, to be satisfied by the low-income family's provision ofin-kind contributions or services.

(9) For students in grades kindergarten through eight, the school agrees not to charge any tuition to low-income families receiving a seventy-five per cent scholarship amount through the scholarship program, pursuant to division (A) of section 3313.978 of the Revised Code, in excess of the difference between the actual tuition charge of the school and seventy-five per cent of the scholarship amount established pursuant to division (C)(1) of section 3313.978 of the Revised Code, excluding any increase described in division (C)(2) of that section. The school shall permit such tuition, at the discretion of the parent, to be satisfied by the low-income family's provision of in-kind contributions or services.

(10) The school agrees not to charge any tuition to families of students in grades nine ~~and ten~~ through twelve receiving a scholarship in excess of the actual tuition charge of the school less seventy-five or ninety per cent of the scholarship amount established pursuant to division (C)(1) of section 3313.978 of the Revised Code, as applicable, excluding any increase described in division (C)(2) of that section.

(B) The state superintendent shall revokethe registration of any school if, after a hearing, the superintendentdeterminesthat the school is in violation of any of the provisions ofdivision (A) of this section.

(C) Any public school located in a school districtadjacent tothe pilot project district may receive scholarship payments onbehalf of parents pursuant tosection 3313.979 of the Revised Code if thesuperintendent of the district in which such public school islocated notifies the state superintendent prior to the first day ofMarch that the districtintends to admit students from the pilot project districtfor the ensuing school year pursuant to section 3327.06 of theRevisedCode.

(D) Any parent wishing to purchase tutorialassistance from any person or governmental entity pursuant to thepilot project program under sections 3313.974 to3313.979 of the Revised Code shall apply to thestate superintendent. The state superintendent shall approveproviders who appear to possess the capability of furnishing theinstructional services they are offering to provide.

Sec. 3313.977. (A)(1) Each registered privateschool shall admit students to kindergarten and first, second, and thirdgrades in accordance with the following priorities:

(b) Siblings of students enrolled in the school duringthe preceding year, at the discretion of the school;

(c) Children from low-income families attending schoolor residing in the school district in which the school is locateduntil the number of such students in each grade equals the number thatconstituted twenty percent of the total number of students enrolled in the schoolduring the preceding year in such grade. Admission of suchtwenty per cent shall be by lot from among all low-income familyapplicants who apply prior to the fifteenth day of Februaryprior to admission.

(d) All other applicants residing anywhere, providedthat all remaining available spaces shall be filled from amongsuch applicants by lot.

Children from low-income families not selected by lotunder division (A)(1)(c) of this section shall beincludedin the lottery of all remaining applicants pursuant to division(A)(1)(d) of this section.

(2) Each registered private school shall first admit to grades fourthrough ~~ten~~ twelve students who were enrolled in the school during the precedingyear. Any remaining spaces for students in these grades may be filled asdetermined by the school.

(B) Notwithstanding division (A) ofthis section, except where otherwise prohibited by federal law, aregistered private school may elect to admit students of only one genderand may deny admission to any separately educated handicappedstudent.

(C) If a scholarship student who has been accepted in accordancewith this section fails to enroll in the school for any reason orwithdraws from the school during the school year for any reason,the school may elect to replace such student with another scholarship studentonly by firstoffering the admission to any low-income scholarship students who filedapplicationsby the preceding fifteenth day of February and who were notaccepted at that time due to space limitations.

Sec. 3313.978. (A) Annually by the first day ofNovember,the superintendent of public instruction shall notify thepilotproject school district of the number of initialscholarships thatthe state superintendent will be awarding ineach of gradeskindergarten through ~~third~~ eight.

The state superintendent shall provide information about thescholarship programto all students residing in the district,shall acceptapplications from anysuch students until such dateas shall be established by thestate superintendent as adeadlinefor applications, and shall establish criteria for the selectionofstudents to receivescholarships from among all those applyingprior to thedeadline, which criteria shall give preference tostudents fromlow-income families. For each student selected, thestate superintendentshall also determine whether the studentqualifies for seventy-five or ninetyper cent of the scholarshipamount. Students whose family income is at orabove two hundredper cent of the maximum income level established by thestatesuperintendent for low-income families shall qualify forseventy-fiveper cent ofthe scholarship amount and students whosefamily income is below two hundredper cent of that maximum incomelevel shall qualify for ninety per cent of thescholarship amount.The state superintendent shall notifystudents of their selectionprior to the fifteenth day of January andwhether they qualify forseventy-five or ninety per cent of the scholarshipamount.

(1) A student receiving a pilot project scholarship mayutilize it at an alternativepublic school by notifying thedistrict superintendent, at any time before the beginning of theschool year,of the name of the public school in an adjacentschool districtto which the student has beenaccepted pursuant tosection 3327.06 of the RevisedCode.

(2) A student may decide to utilize a pilot projectscholarship ata registered private school in the district if allof thefollowing conditions are met:

(a) By the fifteenth day of February of thepreceding schoolyear, or at any time prior to the start of theschool year, theparent makes an application on behalf of thestudent to aregistered private school.

(b) The registered private school notifies theparent andthe state superintendent as follows that thestudent has beenadmitted:

(i) By the fifteenth day of March ofthe preceding schoolyear if the student filed an application by thefifteenth day ofFebruary and was admitted by the schoolpursuant to division (A)of section 3313.977 of theRevised Code;

(ii) Within one week of the decision to admitthe student ifthe student is admitted pursuant to division(C) of section3313.977 of theRevised Code.

(c) The student actually enrolls in theregistered privateschool to which the student was first admitted or inanotherregistered private school in the district or in a public schoolinan adjacent school district.

(B) The state superintendent shall also award inany schoolyear tutorial assistance grants to a number ofstudentsequal tothe number of students who receive scholarships underdivision (A)of this section. Tutorial assistancegrants shall be awardedsolely to students who are enrolledin the public schools of thedistrict in a grade level covered bythepilot project. Tutorialassistancegrants may be used solely to obtaintutorial assistancefrom a provider approved pursuant to division(D) of section3313.976 of the RevisedCode.

All students wishing to obtain tutorial assistance grantsshall make application to the state superintendent by thefirstday ofthe school year in which theassistance will be used. Thestate superintendent shallaward assistance grants in accordancewith criteria the superintendent shallestablish. For eachstudent awarded a grant, the state superintendent shallalsodetermine whether the student qualifies for seventy-fiveor ninetyper cent of the grant amount and so notify the student. Studentswhose family income is at or above two hundred per cent of themaximum incomelevel established by the state superintendent forlow-income families shallqualify forseventy-five per cent of thegrant amount and students whose family income isbelow two hundredper cent of that maximum income level shall qualify forninety percent of the grant amount.

(C)(1) In the case of basic scholarships for students in grades kindergarten through eight, thescholarshipamount shall not exceed the lesser of the tuitioncharges of thealternative school the scholarship recipientattends or ~~an amountestablished by the state superintendent not in excessof~~ three thousand dollars before fiscal year 2007 and three thousand four hundred fifty dollars in fiscal year 2007 and thereafter.

In the case of basic scholarships for students in grades nine ~~and ten~~ through twelve, the scholarship amount shall not exceed the lesser of the tuition charges of the alternative school the scholarship recipient attends or ~~an amount established by the state superintendent not in excess of~~ two thousand seven hundred dollars before fiscal year 2007 and three thousand four hundred fifty dollars in fiscal year 2007 and thereafter.

(2) The state superintendent shall provide for an increasein the basicscholarship amount in the case of any student who isamainstreamed handicapped student and shall further increase suchamount in the case of any separately educated handicapped child.Such increases shall take into account the instruction, relatedservices, and transportation costs of educating such students.

(3) In the case of tutorialassistance grants, the grantamount shall not exceed thelesser of the provider's actualcharges for such assistance or a:

(a) Before fiscal year 2007, apercentage established by thestate superintendent, not to exceed twentyper cent, of the amountof the pilot project school district'saverage basic scholarshipamount;

(4) No scholarship or tutorial assistance grant shall beawarded unless the state superintendent determines thattwenty-five or ten per cent, as applicable, of the amountspecified for suchscholarship or grant pursuant to division(C)(1), (2), or (3) of thissection will be furnished by apolitical subdivision, a privatenonprofit or for profit entity,or another person. Onlyseventy-five or ninety per cent of suchamounts, as applicable, shall be paidfrom state funds pursuant tosection 3313.979 of the RevisedCode.

(D)(1) Annually by the first day ofNovember, the statesuperintendent shall estimate the maximumper-pupilscholarshipamounts for the ensuing school year. The statesuperintendentshall make this estimate available to thegeneralpublic at theoffices of the district board of education togetherwith theformsrequired by division (D)(2) of this section.

(2) Annually by the fifteenth day ofJanuary, the chiefadministrator of each registeredprivate school located in thepilot project district and theprincipal of each public school insuchdistrict shall complete a parental information form andforwardit to the president of the board of education. Theparentalinformation form shall be prescribed by the department ofeducation and shall provide information about the grade levelsoffered, the numbers of students, tuition amounts,achievementtest results, and any sectarian or otherorganizationalaffiliations.

Sec. 3313.98. Notwithstanding division (D) of section3311.19 and division (D) of section 3311.52 of the Revised Code,the provisions of this section and sections 3313.981 to 3313.983of the Revised Code that apply to a city school district do notapply to a joint vocational or cooperative education schooldistrict unless expressly specified.

(A) As used in this section and sections 3313.981 to3313.983 of the Revised Code:

(1) "Parent" means either of the natural or adoptiveparents of a student, except under the following conditions:

(a) When the marriage of the natural or adoptive parentsof the student has been terminated by a divorce, dissolution ofmarriage, or annulment or the natural or adoptive parents of thestudent are living separate and apart under a legal separationdecree and the court has issued an order allocating the parentalrights and responsibilities with respect to the student, "parent"means the residential parent as designated by the court exceptthat "parent" means either parent when the court issues a sharedparenting decree.

(b) When a court has granted temporary or permanentcustody of the student to an individual or agency other thaneither of the natural or adoptive parents of the student,"parent" means the legal custodian of the child.

(2) "Native student" means a student entitled undersection 3313.64 or 3313.65 of the Revised Code to attend schoolin a district adopting a resolution under this section.

(3) "Adjacent district" means a city, exempted village,or local school district having territory that abuts theterritory of a district adopting a resolution under this section.

(4) "Adjacent district student" means a student entitledunder section 3313.64 or 3313.65 of the Revised Code to attendschool in an adjacent district.

(5) "Adjacent district joint vocational student" meansan adjacent district student who enrolls in a city, exemptedvillage, or local school district pursuant to this section andwho also enrolls in a joint vocational school district that doesnot contain the territory of the district for which that studentis a native student and does contain the territory of the city,exempted village, or local district in which the student enrolls.

(6) "Formula amount" has the same meaning as in section 3317.02of the Revised Code.

(a) The fiscal year 2005 formulaamount multiplied by the fiscal year 2005cost-of-doing-business factor for adistrict defined in the version of section 3317.02 of theRevised Code in effect that year;

(b) The sum of (the current formula amount times the current cost-of-doing-business factor as defined in section 3317.02 of the Revised Code) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(8) "Poverty line" means the poverty line established bythe director of the United States office of management and budgetas revised by the director of the office of community services inaccordance with section 673(2) of the "Community Services BlockGrant Act," 95 Stat. 1609, 42 U.S.C.A. 9902, as amended.

(9) "IEP" means an individualized educationprogramdefined by division (E) of section 3323.01 of the Revised Code.

(10) "Other district" means a city,exempted village, or local school district having territoryoutside of the territory of a district adopting a resolutionunder this section.

(11) "Other district student" means a student entitledunder section 3313.64 or 3313.65 of the Revised Code to attend school in another district.

(12) "Other district joint vocational student" means astudent who is enrolled in any city, exempted village, or localschool district and who also enrolls in a joint vocationalschool district that does not contain the territory of thedistrict for which that student is a native student inaccordance with a policy adopted under section 3313.983 of theRevised Code.

(B)(1) The board of education of each city, local, andexempted village school district shall adopt a resolutionestablishing for the school district one of the following policies:

(a) A policy that entirelyprohibits the enrollment of students from adjacent districts orother districts, other than students for whomtuition ispaid in accordance with section 3317.08 of the Revised Code;

(b) A policy that permitsenrollment of students from all adjacentdistricts in accordance with policy statements contained inthe resolution;

(c) A policy that permits enrollment ofstudents from all other districts in accordance with policystatements contained in the resolution.

(2) A policy permitting enrollment of students from adjacentor from other districts, as applicable, shallprovide for all of the following:

(a) Application procedures, including deadlines forapplication and for notification of students and thesuperintendent ofthe applicable district whenever an adjacent or otherdistrict student's application isapproved.

(b) Procedures for admitting adjacent or other district applicants free ofany tuition obligation to the district's schools,including, but not limited to:

(i) The establishment of district capacity limits by gradelevel, school building, and education program;

(ii) A requirement that all native students wishing to beenrolled in the district will be enrolled and that any adjacentor other district students previouslyenrolled in the district shallreceive preference over first-time applicants;

(iii) Procedures to ensure that an appropriate racialbalance is maintained in the district schools.

(C) Except as provided in section 3313.982 of the RevisedCode, the procedures for admitting adjacent or other districtstudents, as applicable, shall not include:

(1) Any requirement of academic ability, or any level ofathletic, artistic, or other extracurricular skills;

(2) Limitations on admitting applicants because ofhandicapping conditions, except that a board may refuse to admita student receiving services under Chapter3323. of the Revised Code, if the services described in thestudent's IEP are not available in the district's schools;

(4) Rejection of any applicant because the student hasbeen subject to disciplinary proceedings, except that if anapplicant has been suspended or expelled by thestudent's districtfor ten consecutive days or more in the term for which admissionis sought or in the term immediately preceding the term for whichadmission is sought, the procedures may include a provisiondenying admission of such applicant.

(D)(1) Each school board permitting only enrollment of adjacentdistrict students shall provide information about thepolicy adopted under this section, including the applicationprocedures and deadlines, to the superintendent and the board ofeducation of each adjacent district and, upon request, to theparent of any adjacent district student.

(2) Each school board permitting enrollment of otherdistrict students shall provide information about the policyadopted under this section, including the application proceduresand deadlines, upon request, to the board of education of anyother school district or to the parent of any studentanywhere in the state.

(E) Any school board shall accept all credits towardgraduation earned in adjacent or other district schools by anadjacent or other district student or a native student.

(F)(1) No board of education may adopt a policydiscouraging or prohibiting its native students from applying toenroll in the schools of an adjacent or any other district that hasadopted a policy permitting such enrollment, except that:

(a) A district may object to the enrollment of a nativestudent in an adjacent or other district in order to maintain anappropriate racial balance.

(b) The board of education of a district receiving fundsunder 64 Stat. 1100 (1950), 20 U.S.C.A. 236 et seq., as amended,may adopt a resolution objecting to the enrollment of its nativestudents in adjacent or other districts if at least ten per cent ofits students are included in the determination of the United States secretaryof education made under section 20 U.S.C.A. 238(a).

(2) If a board objects to enrollment of native studentsunder this division, any adjacent or other district shall refuse toenrollsuch native students unless tuition is paid for the students inaccordance with section 3317.08 of the Revised Code. An adjacentor other district enrolling such students may not receive funding forthose students in accordance with section 3313.981 of the RevisedCode.

(G) The state board of education shall monitor schooldistricts to ensure compliance with this section and thedistricts' policies. The board may adopt rules requiring uniformapplication procedures, deadlines for application, notificationprocedures, and record-keeping requirements for all school boardsthat adopt policies permitting the enrollment of adjacent or otherdistrict students, as applicable. Ifthe state board adopts such rules, noschool board shall adopt a policy that conflicts with thoserules.

(H) A resolution adopted by a board of education underthis section that entirely prohibits the enrollment of studentsfrom adjacent and from other school districts does not abrogate anyagreemententered into under section 3313.841 or 3313.92 of the RevisedCode or any contract entered into under section 3313.90 of theRevised Code between the board of education adopting theresolution and the board of education of any adjacent or otherdistrict or prohibit these boards of education from entering into any suchagreement or contract.

(I) Nothing in this section shall be construed to permitor require the board of education of a city, exempted village, orlocal school district to exclude any native student of thedistrict from enrolling in the district.

Sec. 3314.013. (A)(1) Until July 1, 2000, nomore thanseventy-five contracts between start-up schools and the stateboard ofeducation may be in effect outside the pilot project areaat any time underthis chapter.

(2) After July 1, 2000, and until July 1, 2001, no morethanonehundred twenty-five contracts between start-up schools and thestate board ofeducation may be in effect outside the pilotproject area at any timeunder this chapter.

(3) This division applies only to contracts between start-upschools and the state board of education and contracts betweenstart-up schools and entities described in divisions (C)(1)(b) to(f) of section 3314.02 of the Revised Code.

Until July 1, 2005, not more than two hundred twenty-fivecontractsto which thisdivision applies may be in effect at anytimeunderthis chapter.

(4) This division applies only to contracts between start-up schools and entities described in divisions (C)(1)(b) to (f) of section 3314.02 of the Revised Code.

Except as otherwise provided in section 3314.014 of the Revised Code, after July 1, 2005, and until July 1, 2007, the number of contracts to which this division applies in effect at any time under this chapter shall be not more than thirty plus the number of such contracts with schools that were open for operation as of May 1, 2005.

(5) This division applies only to contracts between a conversion school that is an internet- or computer-based community school or a start-up school and the board of education of the school district in which the school is or is proposed to be located.

Except as otherwise provided in section 3314.014 of the Revised Code,until July 1, 2007, the number of contracts to which this division applies in effect at any time under this chapter shall be not more than thirty plus the number of such contracts with schools that were open for operation as of May 1, 2005.

(6) Until the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools, no internet- or computer-based community school shall operate unless the school was open for instruction as of May 1, 2005. No entity described in division (C)(1) of section 3314.02 of the Revised Code shall enter into a contract to sponsor an internet- or computer-based community school, including a conversion school, between May 1, 2005, and the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools, except as follows:

(a) Any entity described in division (C)(1) of that section may renew a contract that the entity entered into with an internet- or computer-based community school prior to May 1, 2005, if the school was open for operation as of that date.

(b) Any entity described in divisions (C)(1)(a) to (e) of that section may assume sponsorship of an existing internet- or computer-based community school that was formerly sponsored by another entity and may enter into a contract with that community school in accordance with section 3314.03 of the Revised Code.

(c) Any entity described in division (C)(1)(f) of that section may assume sponsorship of an existing internet- or computer-based community school in accordance with division (A)(7) of this section and may enter into a contract with that community school in accordance with section 3314.03 of the Revised Code.

If a sponsor entered into a contract with an internet- or computer-based community school, including a conversion school, but the school was not open for operation as of May 1, 2005, the contract shall be void and the entity shall not enter into another contract with the school until the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools.

(7) Until July 1, 2005, any entity described in division (C)(1)(f) of section 3314.02 of the Revised Code may sponsor only a community school that formerly was sponsored by the state board of education under division (C)(1)(d) of that section, as it existed prior to April 8, 2003. After July 1, 2005, any such entity may assume sponsorship of any existing community school, and may sponsor any new community school that is not an internet- or computer-based community school. Beginning on the effective date of any standards enacted by the general assembly governing the operation of internet- or computer-based community schools, any such entity may sponsor a new internet- or computer-based community school.

(8) Nothing in division (A) of this section prohibits a community school from increasing the number of grade levels it offers.

(B) Within twenty-four hours of a request by any person, thesuperintendent of public instruction shall indicate the number ofpreliminary agreements for start-up schoolscurrently outstanding and the number of contracts for theseschools in effect at the time of the request.

(C) It is the intent of the general assembly to considerwhetherto provide limitations on the number of start-up communityschools afterJuly 1, 2001, following its examination of theresults ofthe studies by the legislative office of educationoversight required underSection 50.39 ofAm.Sub.H.B.No. 215 of the 122nd generalassembly andSection 50.52.2ofAm.Sub.H.B.No. 215 of the 122nd generalassembly, as amendedby Am.Sub.H.B.No. 770 of the 122nd generalassembly.

Sec. 3314.014. As used in this section, "operator" means an organization that manages the daily operations of a community school pursuant to a contract between the operator and the school's governing authority.

(A)(1) Notwithstanding the limit prescribed by division (A)(4) of section 3314.013 of the Revised Code, a start-up school sponsored by an entity described in divisions (C)(1)(b) to (f) of section 3314.02 of the Revised Code may be established after the date that limit is reached, provided the school's governing authority enters into a contract with an operator permitted to manage the school under division (B) of this section.

(2) Notwithstanding the limit prescribed by division (A)(5) of section 3314.013 of the Revised Code, a conversion school that is an internet- or computer-based community school or a start-up school sponsored by the school district in which the school is or is proposed to be located may be established after the date that limit is reached, provided the school's governing authority enters into a contract with an operator permitted to manage the school under division (B) of this section. However, a conversion school that is an internet- or computer-based community school may be established after that date only if the prohibition prescribed by division (A)(6) of section 3314.013 of the Revised Code is no longer in effect.

(B) An operator may enter into contracts with the governing authorities of community schools established after the date the limit prescribed by division (A)(4) or (5) of section 3314.013 of the Revised Code, as applicable, is reached, provided the total number of schools for which the operator enters into such contracts, excluding conversion schools that are not internet- or computer-based community schools, does not exceed the number of community schools managed by the operator on the applicable date that are rated excellent, effective, or in need of continuous improvement pursuant to section 3302.03 of the Revised Code.

Sec. 3314.015. (A) The department of education shall beresponsible for the oversight of sponsors of the community schoolsestablishedunder this chapter and shall provide technicalassistance to schools and sponsors in their compliance withapplicable laws and the terms of the contracts entered into undersection 3314.03 of the Revised Code and in the development andstart-up activities of those schools. In carrying out its dutiesunder this section, the department shall do all of the following:

(1) In providing technical assistance to proposing parties,governing authorities, and sponsors, conduct training sessions anddistribute informational materials;

(2) Approve entities to be sponsors of community schools andmonitor the effectiveness of those sponsors in their oversight ofthe schools with which they have contracted;

(3) By December thirty-first of each year, issue a reportto the governor, the speaker ofthe house of representatives, thepresident of the senate, and thechairpersons of the house andsenate committees principallyresponsible for education mattersregarding the effectiveness ofacademic programs, operations, andlegal compliance and of the financial condition of allcommunityschools established under this chapter;

(4) From time to time, make legislative recommendations tothe general assembly designed to enhance the operation andperformance of community schools.

(B)(1) No entity listed in division (C)(1) of section3314.02 of the Revised Code shall enter into a preliminaryagreement under division (C)(2) of section 3314.02 of the RevisedCode until it has received approval from the department ofeducation to sponsor community schools under this chapter and hasentered into a written agreement with the department regarding themanner in which the entity will conduct such sponsorship. Thedepartment shall adopt in accordance with Chapter 119. of theRevised Code rules containing criteria, procedures, anddeadlinesforprocessing applications for such approval, for oversight ofsponsors, for revocation of the approval of sponsors, and forentering into written agreements with sponsors. Therules shallrequire an entity to submit evidence of the entity'sability andwillingness to comply with the provisions of division(D) ofsection 3314.03 of the Revised Code. The rules also shall require entities approved as sponsors on and after the effective date of this amendment to demonstrate a record of financial responsibility and successful implementation of educational programs. If an entity seeking approval on or after the effective date of this amendment to sponsor community schools in this state sponsors or operates schools in another state, at least one of the schools sponsored or operated by the entity must be comparable to or better than the performance of Ohio schools in a state of academic watch under section 3302.03 of the Revised Code, as determined by the department.

An entity that ~~is approved to sponsor~~ sponsors community schools mayenter into ~~any number of~~ preliminary agreements and sponsor ~~anynumber of~~ schools as follows, provided each school and the contract forsponsorship meets the requirements of this chapter:

(a) An entity that sponsored fifty or fewer schools that were open for operation as of May 1, 2005, may sponsor not more than fifty schools.

(b) An entity that sponsored more than fifty but not more than seventy-five schools that were open for operation as of May 1, 2005, may sponsor not more than the number of schools the entity sponsored that were open for operation as of May 1, 2005.

(c) Until June 30, 2006, an entity that sponsored more than seventy-five schools that were open for operation as of May 1, 2005, may sponsor not more than the number of schools the entity sponsored that were open for operation as of May 1, 2005. After June 30, 2006, such an entity may sponsor not more than seventy-five schools.

Upon approval of an entity to be a sponsor under this division, the department shall notify the entity of the number of schools the entity may sponsor.

The limit imposed on an entity to which division (B)(1)(b) or (c) of this section applies shall be decreased by one for each school sponsored by the entity that permanently closes until the number of schools sponsored by the entity is fifty.

If at any time an entity exceeds the number of schools it may sponsor under this division, the department shall assist the schools in excess of the entity's limit in securing new sponsors. If a school is unable to secure a new sponsor, the department shall assume sponsorship of the school in accordance with division (C) of this section. Those schools for which another sponsor or the department assumes sponsorship shall be the schools that most recently entered into contracts with the entity under section 3314.03 of the Revised Code.

(2) The department of education shall determine, pursuant tocriteria adopted by rule of the department, whether the missionproposed to be specified in the contract of a community school tobe sponsored by a state university board of trustees or theboard's designee under division (C)(1)(e) of section 3314.02 ofthe Revised Code complies with the requirements of that division.Such determination of the department is final.

(3) The department of education shall determine, pursuant tocriteria adopted by rule of the department, if any tax-exemptentity under section 501(c)(3) of the Internal Revenue Code thatis proposed to be a sponsor of a community school is aneducation-oriented entity for purpose of satisfying the conditionprescribed in division (C)(1)~~(e)(iv)~~(f)(iii) of section 3314.02 of theRevised Code. Such determination of the department is final.

(C) If at any time the state board of educationfinds that asponsor is not in compliance or is no longer willingto complywith its contract with any community school or with thedepartment's rules for sponsorship, thestate board or designeeshall conduct a hearing in accordance with Chapter119. of theRevised Code on that matter. If after the hearing,the stateboard or designee has confirmed the original finding, thedepartment of education may revoke the sponsor's approval tosponsorcommunity schools and may assume the sponsorship of anyschoolswith which the sponsor has contracted until the earlier oftheexpiration of two school years or until a new sponsor asdescribedin division (C)(1) of section 3314.02 of the RevisedCode issecured by the school's governing authority. Thedepartment mayextend the term of the contract in the case of aschool for whichit has assumed sponsorship under this division asnecessary toaccommodate the term of the department'sauthorization to sponsorthe school specified in this division.

(D) The decision of the department to disapprove an entityfor sponsorship of a community school or to revoke approval forsuch sponsorship, as provided in division (C) of this section, maybe appealed by the entity in accordance with section 119.12 of theRevised Code.

(E) The department shall adopt procedures for use by a community school governing authority and sponsor when the school permanently closes and ceases operation, which shall include at least procedures for data reporting to the department, handling of student records, distribution of assets in accordance with section 3314.074 of the Revised Code, and other matters related to ceasing operation of the school.

(F) In carrying out its duties under this chapter, thedepartment shall not impose requirements on community schools ortheir sponsors that are not permitted by law or duly adoptedrules.

(1)"Sponsor" meansan entity listed in division(C)(1)ofthissection, which has been approved by the departmentof education to sponsor community schools and with which thegoverningauthority of theproposedcommunity school enters into acontract pursuant to thissection.

(2)"Pilot project area" meansthe school districtsincludedin the territory of the former communityschool pilot projectestablished by former Section 50.52 of Am. Sub. H.B. No. 215ofthe 122nd general assembly.

(b) A school district that iseither in a state of academicemergencyor in a state of academic watch under section 3302.03 ofthe RevisedCode;

(4)"Big eight school district" meansa school district thatfor fiscal year 1997 hadboth of the following:

(a) A percentage of children residing in thedistrict andparticipating in the predecessor ofOhio works first greater thanthirty per cent, as reported pursuant to section 3317.10 of theRevisedCode;

(b) An average daily membership greater thantwelvethousand, as reported pursuant to former division(A) of section3317.03 of theRevised Code.

(5)"New start-up school" means a community school otherthanone createdby converting all or part of an existing publicschool, as designated in theschool's contract pursuant todivision (A)(17) of section 3314.03of the Revised Code.

(6)"Urban school district" means one of the state'stwenty-oneurban school districts as defined in division (O) ofsection 3317.02of the Revised Code as that section existed priorto July 1, 1998.

(7) "Internet- orcomputer-based community school" means acommunity schoolestablished under this chapter in which theenrolled students work primarily from their residences onassignments in nonclassroom-based learning opportunities provided via an internet- or other computer-basedinstructional method that does not rely on regular classroominstruction or via comprehensive instructional methods that include internet-based, other computer-based, and noncomputer-based learning opportunities.

(B) Any person or group ofindividuals may initially proposeunder thisdivision the conversion of all or a portion of a publicschool to a communityschool. The proposalshall be made to theboard of education ofthe city, local, orexempted village schooldistrictinwhich the public school isproposed to be converted.Upon receipt of aproposal, a board mayenter into a preliminaryagreement with the person orgroupproposing the conversion of thepublic school, indicating theintention of the board of educationtosupport the conversion to acommunity school. A proposingperson or groupthat has apreliminaryagreement under thisdivision may proceed to finalizeplans for the school,establish agoverning authority for theschool, and negotiate a contract withthe board of education.Provided the proposing person or groupadheres to thepreliminaryagreement and all provisions of thischapter, the board ofeducation shall negotiate in good faith toenter into a contractin accordancewith section 3314.03 of theRevised Code anddivision (C) of this section.

(C)(1) Any person or group ofindividuals may propose underthis division theestablishment of a new start-up school to belocated ina challengedschool district. The proposal may bemadetoany of the followingentities:

(a) The board of education of thedistrict in which theschool is proposed to belocated;

(b) The board of education of any jointvocational schooldistrict with territory in the county in which islocated themajorityof the territory of the district in which theschool isproposed to be located;

(c) The board of education of any othercity, local, orexempted village school district havingterritory in the samecounty where thedistrict in which the school is proposed to belocated has the majorportion of its territory;

(e) Asponsoringauthority designated by theboardoftrustees ofany of the thirteen state universities listed in section3345.011 of the Revised Codeor the board oftrustees itselfaslong as a mission of the proposed school to be specified in thecontract under division (A)(2) of section 3314.03 of the RevisedCode and as approved by the department of education under division(B)(2) of section 3314.015 of the Revised Code will be thepractical demonstration of teaching methods,educationaltechnology, or other teaching practices that areincluded in thecurriculum of the university's teacher preparationprogramapproved by the state board of education;

(f) Any qualified tax-exempt entity under section501(c)(3) of the Internal Revenue Code as long as all of thefollowing conditions are satisfied:

(i) The entity has been in operation for at least fiveyears prior to applying to be a community school sponsor.

(iii) The department of education has determined that theentity is an education-oriented entity under division (B)(3) ofsection 3314.015 of the Revised Code.

Until July 1, 2005, any entity described in division(C)(1)(f) of this section may sponsor only schools that formerlywere sponsoredby the state board of education under division(C)(1)(d) of thissection, as it existed prior to April 8, 2003. After July 1, 2005, such entity maysponsor any new orexisting school.

Any entitydescribed in division (C)(1) of thissection may enterinto apreliminary agreementpursuanttodivision (C)(2) of thissection with the proposingperson orgroup.

(2) A preliminary agreement indicates theintention ofan entity described in division (C)(1)of this sectiontosponsor the community school. A proposing person orgroup thathas such a preliminary agreement may proceed tofinalize plans forthe school, establish a governing authorityas described indivision (E) of this sectionfor the school, andnegotiate acontract with the entity. Provided theproposing person orgroup adheres to thepreliminary agreement andall provisions ofthis chapter, the entity shall negotiatein good faith toenter into acontract in accordance with section3314.03 of theRevisedCode.

(3) A new start-up school that is established in a schooldistrict while that district iseither in a state of academicemergencyor in a state of academic watch under section3302.03 ofthe Revised Code maycontinue inexistence once the schooldistrict is no longerin astate ofacademic emergencyor academicwatch, provided there is a validcontract betweentheschool and asponsor.

(4) A copy of every preliminary agreement entered into underthisdivision shall be filed with the superintendent of publicinstruction.

(D) A majority vote ofthe board of a sponsoringentityand amajority vote of the members of thegoverning authority of acommunity school shall be required toadopt a contract andconvertthe public school to a communityschool or establish the newstart-up school. ~~Up to thestatewide limit prescribed in section~~ Beginning on the effective date of this amendment, adoption of the contract shall occur not later than the fifteenth day of March prior to the school year in which the school will open. Subject to sections 3314.013 and 3314.014 of the RevisedCode, an unlimited numberofcommunity schoolsmay beestablishedin any school districtprovided that a contract isentered intofor each community schoolpursuant tothis chapter.

(E) As used in this division, "immediate relatives" arelimited to spouses, children, parents, grandparents, siblings, andin-laws.

Each new start-up community school established underthischapter shall be under the direction of a governing authoritywhich shall consist of a board of not less than five individualswho are not owners or employees, or immediate relatives of ownersor employees, of any for-profit firm thatoperates ormanages aschool for the governing authority.

No person shall serve on the governing authority oroperate the community school under contract with the governingauthority so long as the person owes the state any money or is ina dispute over whether the person owes the state any moneyconcerning the operation of a community school that has closed.

(F) Nothing in this chapter shall be construed to permit theestablishment of a community school in more than one schooldistrict under the same contract.

(G)(1) A new start-up school that is established prior to ~~the effective date of this amendment~~ August 15, 2003, in an urban school district that is not also a big-eight school district may continue to operate after ~~the effective~~ that date ~~of this amendment~~ and the contract between the school's governing authority and the school's sponsor may be renewed, as provided under this chapter, after ~~the effective~~ that date ~~of this amendment~~, but no additional new start-up schools may be established in such a district unless the district is a challenged school district as defined in this section as it exists on and after ~~the effective~~ that date ~~of this amendment~~.

(2) A community school that was established prior to June 29, 1999, and is located in a county contiguous to the pilot project area and in a school district that is not a challenged school district may continue to operate after that date, provided the school complies with all provisions of this chapter. The contract between the school's governing authority and the school's sponsor may be renewed, but no additional start-up community school may be established in that district unless the district is a challenged school district.

Sec. 3314.021. (A) This section applies to any entity that isexempt from taxation under section 501(c)(3) of the InternalRevenue Code and that satisfies the conditions specified indivisions (C)(1)(f)(ii) and (iii) of section 3314.02 of theRevised Code but does not satisfy the condition specified indivision (C)(1)(f)(i) of that section.

(B) Notwithstanding division (C)(1)(f)(i) of section 3314.02of the Revised Code, an entity described in division (A) of thissection may do both of the following without obtaining the department of education's approval of its sponsorship under division (B)(1) of section 3314.015 of the Revised Code:

(1) Succeed the board of trustees of a state universitylocated in the pilot project area or that board's designee as thesponsor of a community school established under this chapter;

(2) Continue to sponsor that school in conformance withthe terms of the contract between the board of trustees or itsdesignee and the governing authority of the community school and renew that contract as provided in division (E) of section3314.03 of the Revised Code.

(C) The entity that succeeds the board of trustees or the board's designee as sponsor of a community school under division (B) of this section also may enter into contracts to sponsor other community schools located in any challenged school district, without obtaining the department's approval of its sponsorship under division (B)(1) of section 3314.015 of the Revised Code, and not subject to the restriction of ~~the paragraph following division (C)(1)(f)(iii)~~ division (A)(7) of section ~~3314.02~~ 3314.013 of the Revised Code, as long as the contracts conform with and the entity complies with all other requirements of this chapter.

Sec. 3314.03. A copy of every contract entered intounder this section shall be filed with the superintendent ofpublic instruction.

(A) Each contract entered into between a sponsor and the governingauthority of acommunity school shall specify the following:

(a) A nonprofitcorporation establishedunder Chapter 1702.of the Revised Code,if established prior to April 8, 2003;

(b) A public benefit corporation established under Chapter1702. of the Revised Code, if established after April 8, 2003;

(2) The education program of the school, including theschool's mission,the characteristics of the students the schoolis expected to attract, the ages and grades of students, and thefocus of thecurriculum;

(3) The academic goals to be achieved and the method ofmeasurement thatwill be used to determine progress toward thosegoals, which shall include the statewideachievementtests;

(4) Performance standards by which the success of theschoolwill be evaluated by the sponsor;. If the sponsor will evaluate the school in accordance with division (D) of section 3314.36 of the Revised Code, the contract shall specify the number of school years that the school will be evaluated under that division.

(5) The admission standards of section 3314.06 of theRevised Code and, if applicable, section 3314.061 of the Revised Code;

(b) A requirement that the governing authority adopt anattendance policy that includes a procedure for automaticallywithdrawing a student from the school if the student without alegitimate excuse fails to participate in one hundred fiveconsecutive hours of the learning opportunities offered to thestudent. ~~Such a policy shall provide for withdrawing the studentby the end of the thirtieth day after the student has failed toparticipate as required under this division.~~

(7) The ways by which the school will achieve racial andethnic balancereflective of the community it serves;

(8) Requirements forfinancial audits by theauditor of state. The contract shall requirefinancial records ofthe school to be maintained inthe same manner as are financialrecords of school districts, pursuant torules of the auditor ofstate, and the audits shall be conducted inaccordance withsection 117.10 of the Revised Code.

(10) Qualifications of teachers,including a requirementthat the school'sclassroom teachers be licensed in accordancewith sections 3319.22 to3319.31 of the Revised Code, except thata community school may engagenoncertificated persons to teach upto twelvehours per week pursuant to section 3319.301 of theRevised Code;

(a) The school will provide learning opportunities to aminimumof twenty-five students for a minimum of ninehundredtwenty hours per school year;

(b) The governing authority willpurchase liabilityinsurance, or otherwise provide for thepotential liability of theschool;

(c) The school will benonsectarian in its programs,admission policies,employment practices, and all otheroperations, and will not beoperated by a sectarian school orreligious institution;

(d) The school will comply with sections 9.90, 9.91, 109.65,121.22,149.43, 2151.358, 2151.421, 2313.18,3301.0710, 3301.0711,3301.0712,3301.0715, 3313.50,3313.608, 3313.6012,3313.643,3313.648, 3313.66, 3313.661,3313.662,3313.67,3313.671,3313.672,3313.673, 3313.69, 3313.71, 3313.716,3313.80,3313.96,3319.073, 3319.321, 3319.39, 3321.01,3321.13, 3321.14,3321.17,3321.18, 3321.19, 3321.191, 3327.10, 4111.17,4113.52, and5705.391andChapters 117., 1347.,2744., 3365.,3742., 4112., 4123.,4141., and4167. ofthe Revised Codeas if it were aschooldistrictand will comply with section3301.0714 of theRevisedCode in the manner specified in section3314.17 of theRevisedCode;

(e) The school shall comply with Chapter 102. of the RevisedCode except thatnothing in that chapter shall prohibit amemberof the school's governing board from also being an employeeof theschool and nothing in that chapter or section 2921.42 oftheRevised Code shall prohibit a member of theschool's governingboard from having an interest in acontract into which thegoverning board entersthat is not a contract with a for-profitfirm for the operation ormanagement of a school under theauspices of the governingauthority;

(f) The school will comply with sections 3313.61,3313.611,and 3313.614 of the Revised Code, except that therequirement insections3313.61 and 3313.611 of the RevisedCode that a personmust successfullycomplete the curriculuminany high school priorto receiving ahigh school diploma may bemet by completing thecurriculum adopted by thegoverningauthority of the communityschoolrather than the curriculumspecified in Title XXXIII of theRevised Code or any rules of thestate board of education;

(g) The school governing authority will submitwithin four months after the end of each school year areportofits activities and progress in meeting the goals andstandards ofdivisions(A)(3) and (4) of this section and itsfinancial statusto thesponsor, the parents of all studentsenrolled in theschool, and the legislative office of educationoversight. Theschool willcollect and provideany data that thelegislativeoffice of education oversight requests infurtheranceof any studyor research that the general assembly requires theoffice toconduct, including the studies required under Section50.39of Am.Sub. H.B. 215 of the122nd general assembly andSection 50.52.2 ofAm. Sub. H.B. 215 of the122nd generalassembly, as amended.

(13) The length of the contract, which shall begin at thebeginning of anacademic year. No contract shall exceedfive yearsunless such contract has been renewed pursuant todivision (E) of this section.

(14) The governing authority of the school, which shall beresponsible for carrying out the provisions of the contract;

(15) A financial plan detailing an estimated school budgetfor each yearof the period of the contract and specifying thetotal estimated per pupilexpenditure amount for each such year.The plan shall specify foreach year the base formula amountthatwill be used for purposes of funding calculations under section3314.08of the Revised Code. This base formula amount for anyyear shall not exceedthe formula amount defined under section3317.02of the Revised Code. The plan may alsospecify for anyyear a percentage figure to be used for reducing the per pupilamount of ~~disadvantaged pupil impact aid~~ the subsidy calculated pursuant tosection 3317.029 of the Revised Code the school is toreceive thatyear under section 3314.08 of the Revised Code.

(16) Requirements and procedures regarding the dispositionofemployees of the school in the event the contract is terminatedor not renewed pursuant to section 3314.07 of the Revised Code;

(17) Whether the school is to be created byconverting allor part of an existing public school or is to be a new start-upschool, and if it is a converted public school, specification ofany duties orresponsibilities of an employer that the board ofeducation that operated theschool before conversion is delegatingto the governing board of the communityschool with respect to allor any specified group of employees provided thedelegation is notprohibited by a collective bargaining agreement applicableto suchemployees;

(18) Provisions establishing procedures for resolvingdisputes ordifferences of opinion between the sponsor and thegoverning authority of thecommunity school;

(19) A provision requiring the governing authority to adopta policyregardingthe admission of students who reside outsidethe district in which the schoolis located. That policy shallcomply with the admissions procedures specifiedin ~~section~~ sections 3314.06 and 3314.061of the Revised Code and, at the solediscretion of the authority,shall do one of the following:

(a) Prohibit the enrollment of students who reside outsidethedistrict in which the school is located;

(b) Permit the enrollment of students who reside indistrictsadjacent to the district in which the school is located;

(20) A provision recognizing the authority of the departmentof education to take over the sponsorship of the school inaccordance with the provisions of division (C) of section 3314.015of the Revised Code;

(21) A provision recognizing the sponsor's authority toassume the operation of a school under the conditions specified indivision (B) of section 3314.073 of the Revised Code;

(a) The authority of public health and safety officials toinspect the facilities of the school and to order the facilitiesclosed if those officials find that the facilities are not incompliance with health and safety laws and regulations;

(b) The authority of thedepartment of education as thecommunity school oversight body tosuspend the operation of theschool under section 3314.072 of theRevised Code if thedepartment has evidence of conditions orviolations of law at theschool that pose an imminent danger tothe health and safety ofthe school's students and employees andthe sponsor refuses totake such action;

(23) A description of the learning opportunities that willbe offered to students including both classroom-based andnon-classroom-based learning opportunities that is in compliancewith criteria for student participation established by thedepartment under division (L)(2) of section 3314.08 of the RevisedCode;

(24) The school will comply with section 3302.04 of the Revised Code, including division (E) of that section to the extent possible, except that any action required to be taken by a school district pursuant to that section shall be taken by the sponsor of the school. However, the sponsor shall not be required to take any action described in division (F) of that section.

(25) Beginning in the 2006-2007 school year, the school will open for operation not later than the thirtieth day of September each school year, unless the mission of the school as specified under division (A)(2) of this section is solely to serve dropouts. In its initial year of operation, if the school fails to open by the thirtieth day of September, or within one year after the adoption of the contract pursuant to division (D) of section 3314.02 of the Revised Code if the mission of the school is solely to serve dropouts, the contract shall be void.

(B) The community school shall also submit to the sponsor acomprehensive plan for theschool. The plan shall specify thefollowing:

(1) The process by which the governing authority of theschool will beselected in the future;

(3) If the community school is a currently existingpublicschool, alternative arrangementsfor current public schoolstudents who choosenot to attend the school and teachers whochoose not to teach inthe school after conversion;

(C) A contract entered into under section 3314.02 of theRevisedCode between a sponsor and the governingauthority of acommunity school may provide for the community school governingauthority to make payments to the sponsor, which is herebyauthorized toreceive such payments as set forth in the contractbetween the governingauthority and the sponsor.The total amountof such payments for oversight and monitoring of the school shallnot exceed three per cent of the totalamount of payments foroperating expenses that the school receivesfrom the state.

(D) The contract shall specify the duties of the sponsorwhich shall be in accordance with the written agreement enteredinto with the department of education under division (B) ofsection 3314.015 of the Revised Code and shall include thefollowing:

(1) Monitor the community school's compliance with all lawsapplicable to the school and with the terms of the contract;

(2) Monitor and evaluate the academic and fiscalperformance and the organization and operation of the communityschool on at least an annual basis;

(3) Report on an annual basis the results of the evaluationconducted under division (D)(2) of this section to the departmentof education and to the parents of students enrolled in thecommunity school;

(4) Provide technical assistance to the community schoolin complying with laws applicable to the school and terms of thecontract;

(5) Take steps to intervene in the school's operation tocorrect problems in the school's overallperformance, declare theschool to be on probationary statuspursuant to section 3314.073of the Revised Code, suspend theoperation of the school pursuantto section 3314.072 of theRevised Code, or terminate the contractof the school pursuant tosection 3314.07 of the Revised Code asdetermined necessary by thesponsor;

(6) Have in place a plan of action to be undertaken in theevent the community school experiences financial difficulties orcloses prior to the end of a school year.

(E) Upon the expiration of acontract entered into underthis section, the sponsor of acommunity school may, with theapproval of the governing authorityof the school, renew thatcontract fora period of time determined by the sponsor, but notending earlierthan the end of any school year, if the sponsorfinds that theschool's compliance with applicable laws and termsof the contractand the school's progress in meeting the academicgoals prescribedin the contract have been satisfactory. Anycontract that is renewedunder this division remains subject tothe provisions of sections3314.07, 3314.072, and 3314.073 of theRevised Code.

(F) If a community school fails to open for operation within one year after the contract entered into under this section is adopted pursuant to division (D) of section 3314.02 of the Revised Code or permanently closes prior to the expiration of the contract, the contract shall be void and the school shall not enter into a contract with any other sponsor. A school shall not be considered permanently closed because the operations of the school have been suspended pursuant to section 3314.072 of the Revised Code. Any contract that becomes void under this division shall not count toward any statewide limit on the number of such contracts prescribed by section 3314.013 of the Revised Code.

Sec. 3314.06. The governing authority of each communityschoolestablished under this chapter shall adopt admissionprocedures that specifythe following:

(A) That except as otherwise provided in this section,admission to theschool shall be open to any individualagefiveto twenty-twoentitled toattend school pursuant to section3313.64 or 3313.65 of the Revised Code ina school district in thestate.

(B)(1) That admission to the school may be limited tostudentswhohave attained a specific grade level or are withinaspecificage group; to students that meet a definition of"at-risk," asdefined in the contract; or to residents of aspecific geographicareawithin the district,as defined in thecontract; or to separate groups of autistic students and nonhandicapped students, as authorized in section 3314.061 of the Revised Code and as defined in the contract.

(2) For purposes of division (B)(1) of this section,"at-risk" students may include those students identified as giftedstudents under section 3324.03 of the Revised Code.

(C) Whether enrollment is limited to students who reside inthe districtin which the school is located or is open toresidents of other districts, asprovided in the policy adoptedpursuant to the contract.

(D)(1) That there will be no discrimination in the admissionofstudents to the school on the basis of race, creed, color,handicappingcondition, or sexexcept that ~~the~~:

(a) Thegoverningauthority may establish single-gender schools for thepurposedescribed in division (G) of this section providedcomparable facilities and learning opportunities are offered forboth boys and girls. Such comparable facilities and opportunitiesmay be offered for each sex at separate locations.

(b) The governing authority may establish a school that simultaneously serves a group of students identified as autistic and a group of students who are not handicapped, as authorized in section 3314.061 of the Revised Code. However, unless the total capacity established for the school has been filled, no student with any handicap shall be denied admission on the basis of that handicap.

(2) That uponadmission of anyhandicapped student, thecommunityschool willcomply with allfederal and state lawsregarding theeducation ofhandicappedstudents.

(E) That the school may not limit admission to students onthebasis of intellectual ability, measures of achievement oraptitude, orathletic ability, except that a school may limit itsenrollment to students as described in division (B)~~(2)~~ of thissection.

(F) That the community school will admit the number ofstudentsthat does not exceedthe capacity of the school'sprograms, classes, grade levels, orfacilities.

(G)That the purpose of single-gender schools that areestablished shall be to take advantage of the academic benefitssome students realize from single-gender instruction andfacilities and to offer students and parents residing in thedistrict the option of a single-gender education.

(H) That, except as otherwise provided under division(B) ofthis section or section 3314.061 of the Revised Code, if the number of applicants exceeds the capacityrestrictions of division (F) of this section, studentsshall beadmitted by lot from all those submitting applications,exceptpreference shall be given to students attending theschool theprevious year and to students who reside in the district inwhichthe school is located. Preference may be given to siblings ofstudents attending the school the previous year.

Notwithstanding divisions (A)to (H) of thissection,in the event the racial composition of the enrollment ofthecommunity school is violative of a federal desegregationorder,thecommunity school shall take any and all correctivemeasures tocomply with the desegregation order.

Sec. 3314.061. A governing authority may establish a community school under this chapter that is limited to providing simultaneously special education and related services to a specified number of students identified as autistic and regular educational programs to a specified number of students who are not handicapped. The contract between the governing authority and the school's sponsor shall specify the target ratio of number of autistic students to number of nonhandicapped students in the school's population, the total number of autistic students that may be enrolled in the school, and the total number of nonhandicapped students that may be enrolled in the school. A school established in accordance with this section is subject to division (H) of section 3314.06 of the Revised Code, except that because the governing authority establishes a separate capacity for autistic students and nonhandicapped students, if the number of applicants among the group of autistic students or the group of nonhandicapped students exceeds the capacity restrictions for that group, students shall be admitted by lot from all those of that same group submitting applications. However, unless the total capacity established for the school has been filled, no student with any handicap shall be denied admission on the basis of that handicap.

Sec. 3314.074. Divisions (A) and (B) of this section applyonly to the extent permitted under Chapter 1702. of the RevisedCode.

(A) If any community school established under thischapterpermanently closes and ceases its operation as a communityschool,the assets of that school shall be distributed first totheretirementfunds of employees of the school, employees of theschool, and private creditors who are owedcompensation andthenany remaining funds shall be paid to thestate treasury tothecredit of the general revenue fund.

(B) If a community school closes and ceases to operate as acommunity school and the school has received computer hardware orsoftware from the former Ohio SchoolNet commission or the eTech Ohio commission, such hardware orsoftware shall be returned to the eTech Ohio commission, and the eTech Ohio commission shall redistribute the hardware and software, to the extent suchredistribution is possible, to school districts in conformancewith the provisions of the programs operated and administered bythe eTech Ohio commission.

(C) If the assets of the schoolare insufficient to pay allpersons or entities to whomcompensation is owed, theprioritization of the distribution ofthe assets to individualpersons or entities within each class ofpayees may be determinedby decree of a court in accordance withthis section and Chapter1702. of the Revised Code.

(1)"Base formula amount" means theamount specified as suchin a community school's financial plan for a schoolyear pursuantto division (A)(15) of section 3314.03 of theRevised Code.

(2)"Cost-of-doing-business factor" has the same meaning asin section3317.02 of the Revised Code.

(3)"IEP" means anindividualized education program asdefined in section 3323.01 ofthe Revised Code.

(4)"Applicablespecial education weight" means themultiplespecified in section 3317.013 ofthe Revised Code for a handicapdescribedin thatsection.

(a) For a student enrolled in vocational education programsorclasses described in division (A) of section 3317.014 of theRevised Code, themultiple specified in that division;

(b) For a student enrolled in vocational education programsorclasses described in division (B) of section 3317.014 of theRevised Code, themultiple specified in that division.

(6)"Entitled to attend school" means entitled to attendschoolin a district under section 3313.64 or 3313.65 of theRevisedCode.

(7)A community school studentis "included in the ~~DPIA~~poverty student count" of a school district ifthe student is entitled toattend school in the district and:

~~(a) For school years prior to fiscal year 2004,~~ thestudent's family receives assistance under the Ohio works firstprogram.

(b) For school years in and after fiscal year 2004, thestudent's family income does not exceed the federal povertyguidelines, as defined in section 5101.46 of the Revised Code, andthe student's family receives family assistance, as defined insection 3317.029 of the Revised Code.

(8) "~~DPIA~~ Poverty-based assistance reduction factor" means thepercentage figure,ifany, for reducing the per pupil amountof ~~disadvantaged pupilimpact aid~~poverty-based assistance a community school is entitled to receive pursuant todivisions (D)(5) and(6) of thissection in any year,asspecifiedin the school's financial plan for the year pursuant todivision(A)(15) of section 3314.03 of the Revised Code.

(9)"All-day kindergarten" has the same meaning as insection3317.029 of the Revised Code.

(10) "SF-3 payment" means the sum of the payments to a school district in a fiscal year under divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section 3317.022, divisions (J), (P), and (R) of section 3317.024, and sections 3317.029, ~~3317.0212, 3317.0213,~~ 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and 3317.053 of the Revised Code after making the adjustments required by sections 3313.981 and 3313.979, divisions (B), (C), (D), (E), (K), (L), ~~and~~ (M), (N), and (O) of section 3317.023, and division (C) of section 3317.20 of the Revised Code.

(B) The state board of education shall adopt rules requiringbothof the following:

(1) The board of education of each city, exempted village,and local school district to annually report the number ofstudents entitled to attend school in the district who areenrolled in gradesone throughtwelve in acommunity schoolestablished under this chapter, the number ofstudents entitled toattend school in the district who are enrolled inkindergarten ina community school,the number of thosekindergartners who areenrolled in all-day kindergarten in theircommunity school,andfor each child,thecommunity school in which the child isenrolled.

(2) The governing authority of each community schoolestablished under this chapter to annually report all of thefollowing:

(a) The number ofstudents enrolled in grades one throughtwelve and the numberofstudents enrolled in kindergarten in theschoolwho are not receiving special education andrelatedservices pursuant to an IEP;

(b) The number of enrolled students in grades one throughtwelve and the number of enrolled students inkindergarten,whoare receiving specialeducation and related servicespursuant toan IEP;

(c) The number of students reported under division(B)(2)(b)ofthis section receiving special education and related servicespursuant toan IEP for a handicap described in each of divisions(A)to (F)of section 3317.013 ofthe Revised Code;

(d)The full-time equivalent number of students reportedunder divisions(B)(2)(a) and (b) of this section who areenrolledin vocational education programs or classes described in each ofdivisions (A) and (B) of section 3317.014 of the Revised Code thatareprovided by the community school;

(e) Twenty per cent of the number of students reported underdivisions (B)(2)(a) and (b) of this section who are not reportedunder division (B)(2)(d) of this section but who are enrolled invocational education programs or classes described in each ofdivisions (A) and (B) of section 3317.014 of the Revised Code at ajoint vocational school district under a contract between thecommunity school and the joint vocational school district and areentitled to attend school in a city, local, or exempted villageschool district whose territory is part of the territory of thejoint vocational district;

(f) The number ofenrolled preschool handicapped studentsreceiving special educationservices in a state-funded unit;

(h) For each student, thecity, exempted village, orlocalschool district in which thestudent isentitled to attendschool;

(i) Any ~~DPIA~~ poverty-based assistance reduction factor that applies to aschoolyear.

(C) From the SF-3 payment made to a city, exempted village, orlocalschool district and,if necessary, from the payment made to the district undersections 321.24 and 323.156 of the Revised Code, thedepartment of educationshall annually subtract the sum of the amounts described in divisions (C)(1) to ~~(6)~~(9) of this section. However, when deducting payments on behalf of students enrolled in internet- or computer-based community schools, the department shall deduct only those amounts described in divisions (C)(1) and (2) of this section. Furthermore, the aggregate amount deducted under this division shall not exceed the sum of the district's SF-3 payment and its payment under sections 321.24 and 323.156 of the Revised Code.

(1) An amount equal to the sum of the amounts obtained when,for eachcommunity school where the district's students areenrolled, the number of thedistrict's students reported underdivisions(B)(2)(a), (b), and (e) of this section who areenrolled ingrades one through twelve, and one-half the number ofstudentsreported under those divisions who are enrolled inkindergarten,in that community schoolis multiplied bythe greater of the following:

(a) The fiscal year 2005 baseformula amountof that community schoolas adjusted by the schooldistrict's fiscal year 2005 cost-of-doing-business factor;

(b) The sum of (the current base formula amount of that community school times the school district's current cost-of-doing-business factor) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(2) Thesum of theamounts calculated under divisions(C)(2)(a)and(b) of thissection:

(a) For each of the district's students reported underdivision(B)(2)(c) of this section as enrolled in a communityschool ingrades one through twelve and receiving specialeducation and related servicespursuant to an IEP for a handicapdescribed in section 3317.013 ofthe Revised Code, the product ofthe applicable special education weighttimesthecommunityschool's base formulaamount;

(b) For each of the district's students reported underdivision (B)(2)(c) of this section as enrolled in kindergarteninacommunity school and receiving special education and relatedservicespursuant toan IEP for a handicap described in section3317.013 of theRevisedCode, one-half of the amount calculated asprescribed in division(C)(2)(a) of this section.

(3)For each of the district's students reported underdivision(B)(2)(d) of this section for whom payment is made underdivision (D)(4) of this section, the amount of that payment;

(4) An amount equal to the sum of the amounts obtained when,for eachcommunity school where the district's students areenrolled, the number of thedistrict's students enrolled in thatcommunity schoolwho are included in the district's ~~DPIA~~ poverty studentcountis multiplied by the per pupil amount of~~disadvantaged pupilimpact aid~~ poverty-based assistance the school district receives thatyear pursuanttodivision (B) or (C) of section 3317.029 oftheRevisedCode, asadjusted by any ~~DPIA~~ poverty-based assistance reduction factor of thatcommunityschool.Ifthe district receives~~disadvantaged pupilimpact aid~~ poverty-based assistance underdivision (B) of that section,the per pupilamount of that aid isthe quotient of the amount the districtreceived under thatdivision divided by thedistrict's ~~DPIA~~ poverty student count,as definedin that section. Ifthedistrict receives~~disadvantaged pupilimpact aid~~ poverty-based assistance under division(C) of section3317.029 of the RevisedCode, theper pupilamountof that aid ~~isthe per pupil dollaramount prescribed~~ for thedistrict in~~division~~ ~~(C)(1)~~ ~~or (2)~~ ~~ofthat section~~ shall be calculated by the department.

(5) An amount equal to the sum of the amounts obtainedwhen,foreach community school where the district's students areenrolled, thedistrict's per pupil amount of aid received underdivision (E) ofsection 3317.029 of the Revised Code, as adjustedby any~~DPIA~~poverty-based assistance reduction factor of the community school, ismultiplied by the sum of thefollowing:

(a) The number of the district's students reported underdivision(B)(2)(a) of this section who are enrolled in grades onetothree inthat community school and who are not receivingspecial education and relatedservices pursuant toan IEP;

(b) One-half of the district's students who are enrolled inall-day or any other kindergarten class in that community schooland who arenot receiving special education and relatedservicespursuant to an IEP;

(c) One-half of the district's students who are enrolled inall-day kindergarten in that community school and who are notreceivingspecial education and related services pursuant to anIEP.

The district's per pupil amount of aid under division (E) ofsection 3317.029 of the Revised Code is the quotient of theamountthe district received under that division divided by thedistrict'skindergarten through third grade ADM, as defined inthatsection.

(6) An amount equal to the sum of the amounts obtained when, for each community school where the district's students are enrolled, the district's per pupil amount received under division (F) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of that community school, is multiplied by the number of the district's students enrolled in the community school who are identified as limited-English proficient.

The district's per pupil amount under division (F) of section 3317.029 of the Revised Code is the amount calculated under division (F)(1) or (2) of that section, times a multiple of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(7) An amount equal to the sum of the amounts obtained when, for each community school where the district's students are enrolled, the district's per pupil amount received under division (G) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of that community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under division (G) of section 3317.029 of the Revised Code is the district's amount per teacher calculated under division (G)(1) or (2) of that section divided by 17, times a multiple of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(8) An amount equal to the sum of the amounts obtained when, for each community school where the district's students are enrolled, the district's per pupil amount received under divisions (H) and (I) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of that community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under divisions (H) and (I) of section 3317.029 of the Revised Code is the amount calculated under each division divided by the district's formula ADM, as defined in section 3317.02 of the Revised Code.

(9) An amount equal to the per pupil state parity aid funding calculated for the school district under either division (C) or (D) of section 3317.0217 of the Revised Code multiplied by the sum of the number of students in grades one through twelve, and one-half of the number of students in kindergarten, who are entitled to attend school in the district and are enrolled in a community school as reported under division (B)(1) of this section.

(D) The department shall annually pay to a community schoolestablished underthis chapter the sum of the amounts described in divisions (D)(1) to ~~(7)~~(10) of this section. However, the department shall calculate and pay to each internet- or computer-based community school only the amounts described in divisions (D)(1) to (3) of this section. Furthermore, the sum of the payments to all community schools under divisions (D)(1), (2), and (4)~~, (5), (6), and (7)~~ to (10) of this section for the students entitled to attend school in any particular school district shall not exceed the sum of that district's SF-3 payment and its payment under sections 321.24 and 323.156 of the Revised Code. If the sum of the payments calculated under those divisions for the students entitled to attend school in a particular school district exceeds the sum of that district's SF-3 payment and its payment under sections 321.24 and 323.156 of the Revised Code, the department shall calculate and apply a proration factor to the payments to all community schools under those divisions for the students entitled to attend school in that district.

(1) An Subject to section 3314.085 of the Revised Code, an amount equal to the sum of the amounts obtained whenthe number of students enrolled in grades one through twelve, plusone-half of the kindergarten students in the school,reportedunderdivisions (B)(2)(a), (b), and (e) ofthissection whoare notreceiving special education and related services pursuantto anIEP for a handicap described in section3317.013 of theRevisedCodeismultiplied by the greater of the following:

(a) The community school's fiscal year 2005 base formulaamount,asadjusted by the fiscal year 2005 cost-of-doing-business factor of theschooldistrict in which the student isentitled to attend school;

(b) The sum of (the community school's current base formula amount times the current cost-of-doing-business factor of the school district in which the student is entitled to attend school) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(2) ~~The~~ Prior to fiscal year 2007, the greater of the ~~following~~ amount calculated under division (D)(2)(a) or (b) of this section, and in fiscal year 2007 and thereafter, the amount calculated under division (D)(2)(b) of this section:

(a) The aggregate amount that the department paid to thecommunity school in fiscal year 1999 for students receivingspecial educationand related servicespursuant to IEPs, excludingfederal funds and statedisadvantagedpupil impact aid funds;

(b) The sum of the amounts calculated under divisions(D)(2)(b)(i) and (ii) ofthis section:

(i) Foreach student reported under division (B)(2)(c)ofthis section as enrolled in the school ingrades one throughtwelve and receiving special educationand related servicespursuant to an IEPfor a handicap described insection3317.013of theRevisedCode, the following amount:

the greater of (the community school's fiscal year 2005 base formula amount

is entitled to attend school) or [(the school's current base formula amount times the current cost-of-doing-business factor of the school district where the student is entitled to attend school) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code] +

(ii) For each student reported under division(B)(2)(c)ofthis section as enrolled in kindergarten and receiving specialeducation and related services pursuant to an IEP for ahandicapdescribed in section3317.013 of the RevisedCode, one-halfoftheamount calculated under the formula prescribed in division(D)(2)(b)(i) of this section.

(3) An amount received from federalfunds to provide specialeducation and related services to students in thecommunityschool, asdetermined by the superintendent ofpublic instruction.

(4)For each student reported under division (B)(2)(d)ofthis section as enrolled in vocational education programs orclasses thatare described in section 3317.014 of the RevisedCode, are provided by the community school,and are comparable asdetermined by the superintendent of public instruction toschooldistrict vocational education programs and classes eligible forstateweighted funding under section 3317.014 of the Revised Code,an amount equal to the applicablevocational education weighttimes the community school's base formula amounttimes thepercentage of time the student spends in the vocational educationprograms or classes.

(5) An amount equal to the sum of the amounts obtainedwhen,for eachschool district where the community school's students areentitled to attendschool,the number of that district's studentsenrolled in the communityschoolwho are included in thedistrict's ~~DPIA~~ poverty student count ismultiplied by the per pupilamount of ~~disadvantagedpupilimpactaid~~ poverty-based assistance that school districtreceives that year pursuant todivision(B) or (C) ofsection3317.029 of the Revised Code, asadjusted byany ~~DPIA~~ poverty-based assistance reductionfactor of the community school.Theper pupilamount ofaid shallbe determined as described indivision(C)(4) of thissection.

(6) An amount equal to the sum of the amounts obtainedwhen,foreach school district where the community school'sstudents areentitled to attend school, the district's per pupilamount of aidreceived under division (E) of section 3317.029 oftheRevisedCode, as adjusted by any ~~DPIA~~poverty-based assistance reduction factor of thecommunityschool, is multiplied by the sum of thefollowing:

(c) One-half of the district's students who are enrolled inall-day kindergarten in that community school and who are notreceivingspecial education and related services pursuant to anIEP.

The district's per pupil amount of aid under division (E) ofsection 3317.029 of the Revised Code shall be determined asdescribed in division (C)(5) of this section.

(7) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the number of that district's students enrolled in the community school who are identified as limited-English proficient is multiplied by the district's per pupil amount received under division (F) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of the community school.

The district's per pupil amount under division (F) of section 3317.029 of the Revised Code shall be determined as described in division (C)(6) of this section.

(8) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the district's per pupil amount received under division (G) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of the community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under division (G) of section 3317.029 of the Revised Code shall be determined as described in division (C)(7) of this section.

(9) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the district's per pupil amount received under divisions (H) and (I) of section 3317.029 of the Revised Code, as adjusted by any poverty-based assistance reduction factor of the community school, is multiplied by the sum of the following:

(a) The number of the district's students enrolled in grades one through twelve in that community school;

(b) One-half of the number of the district's students enrolled in kindergarten in that community school.

The district's per pupil amount under divisions (H) and (I) of section 3317.029 of the Revised Code shall be determined as described in division (C)(8) of this section.

(10) An amount equal to the sum of the amounts obtained when, for each school district where the community school's students are entitled to attend school, the district's per pupil amount of state parity aid funding calculated under either division (C) or (D) of section 3317.0217 of the Revised Code is multiplied by the sum of the number of that district's students enrolled in grades one through twelve, and one-half of the number of that district's students enrolled in kindergarten, in the community school as reported under division (B)(2)(a) and (b) of this section.

(E)(1) If a community school's costs for a fiscal year for astudentreceiving special education and related services pursuantto anIEP for a handicapdescribed indivisions (B) to(F) ofsection3317.013 of theRevisedCodeexceed the thresholdcatastrophic cost for serving the student as specified in division(C)(3)(b) of section 3317.022 of the Revised Code, the school maysubmitto thesuperintendent ofpublic instruction documentation,asprescribedby thesuperintendent, of all its costs for thatstudent. Uponsubmission of documentation for a student of thetype and in themanner prescribed, the department shall pay to thecommunityschool an amount equal to the school's costsfor thestudent inexcess ofthe threshold catastrophic costs.

(2) The community school shall only reportunder division(E)(1) of this section, and the departmentshallonly payfor, thecosts of educational expenses and therelatedservicesprovided tothe student in accordance with thestudent'sindividualizededucation program. Any legal fees, courtcosts, orother costsassociated with any cause of action relatingto thestudent maynot be included in the amount.

(F) A community school may apply to the department ofeducation forpreschool handicapped or gifted unit funding theschool would receive if it were a school district. Upon requestof itsgoverning authority, a community school that receivedunitfunding as a school district-operated school before it became acommunityschool shall retain any units awarded to it as a schooldistrict-operatedschool provided the school continues to meeteligibility standards for theunit.

A community school shall be considered a school districtandits governing authority shall be considered a board ofeducationfor the purpose of applying to any state or federalagency forgrants that a school district may receive underfederal or statelaw or any appropriations act of the generalassembly. Thegoverning authority of a community school may apply to anyprivateentity for additional funds.

(G) A board of education sponsoring a community school mayutilize local funds to make enhancement grants to the school ormay agree,either as part of the contract or separately, toprovide any specific servicesto the community school at no costto the school.

(H) A community school may not levy taxes or issue bondssecured by tax revenues.

(J)(1)(a) A community school may borrow money to pay anynecessaryand actualexpenses of the school in anticipation of thereceiptof any portion of thepayments to be received by theschoolpursuant to division (D) of thissection. The school mayissuenotes to evidence such borrowing. Theproceedsof the notes shall be used only for the purposes forwhich theanticipated receipts may be lawfully expended by theschool.

(b) A school may also borrow money for a term not toexceedfifteen years for the purpose of acquiring facilities.

(2) Except for any amount guaranteed under section 3318.50 ofthe Revised Code, the state is not liable for debt incurred by thegoverning authority of a community school.

(K) For purposes of determining thenumber of students forwhich divisions(D)(5) and(6) of this section applies inanyschool year, a community school may submit tothe departmentofjob and family services, nolater than the first day ofMarch,alist of the students enrolled in theschool. For each studentonthe list, the community school shall indicate thestudent'sname,address, and date of birth and the school district where thestudent is entitled to attend school. Upon receipt of a listunder thisdivision, the departmentofjob and family servicesshall determine,for each school district where one or morestudents on the list is entitledto attend school,thenumberofstudents residing in that school district who were included in thedepartment's reportunder section 3317.10 of the Revised Code.Thedepartment shall make thisdetermination on the basis ofinformation readily available to it. Uponmaking thisdeterminationand no later than ninety days after submission ofthe list by the communityschool, the department shall report tothe state department of education thenumber of students on thelist who reside in each schooldistrict who were included in thedepartment's reportunder section 3317.10 of the Revised Code. Incomplying with this division,the department of job and familyservices shall not reportto the state department ofeducation anypersonally identifiable information on any student.

(L) The departmentof education shall adjust the amountssubtracted and paid under divisions (C) and (D) of thissection toreflect any enrollment of students in community schools for lessthan the equivalent of a full school year. The state board ofeducation within ninetydays after April 8, 2003, shall adopt inaccordance with Chapter 119. of theRevised Code rules governingthe payments to community schoolsunder this section includinginitial payments in a school year andadjustments and reductionsmade in subsequent periodic payments tocommunity schools andcorresponding deductions from schooldistrict accounts as providedunder divisions (C) and (D) of thissection. Forpurposes of thissection:

(1) Astudent shall be considered enrolled in the communityschool for any portionof the school year the student isparticipating at a college underChapter 3365. of the RevisedCode.

(2) A student shall be considered to be enrolled in acommunity school during a school year for the period of time~~between~~ beginning on the later of the date on which the school both has receiveddocumentation of the student's enrollment from a parent and the student hascommenced participation in learning opportunities as defined inthe contract with the sponsor, or thirty days prior to the date on which the student is entered into the education management information system established under section 3301.0714 of the Revised Code. For purposes ofapplying thisdivision to a community school student, "learningopportunities"shall be defined in the contract, which shalldescribe bothclassroom-based and non-classroom-based learningopportunities andshall be in compliance with criteria anddocumentationrequirements for student participation which shallbe establishedby the department. Any student's instruction timeinnon-classroom-based learning opportunities shall be certifiedbyan employee of the community school. A student's enrollmentshallbe considered to cease on the date on which any of the followingoccur:

(a) The community school receives documentation from aparent terminating enrollment of the student.

(b) The community school is provided documentation of astudent's enrollment in another public or private school.

(c) The community school ceases to offer learningopportunities to the student pursuant to the terms of the contractwith the sponsor or the operation of any provision of thischapter.

(3) A student's percentage of full-time equivalency shallbe considered to be the percentage the hours of learningopportunity offered to that student is of nine hundred and twentyhours. However, no internet- or computer-based community school shall be credited for any time a student spends participating in learning opportunities beyond ten hours within any period of twenty-four consecutive hours.

(M) The department of education shall reduce the amountspaidunder division (D) of this section to reflect payments madetocolleges under division (B) of section 3365.07 of the RevisedCode.

(N)(1)No student shall be considered enrolled in anyinternet-or computer-based community school or, if applicable to the student, in any community school that is required to provide the student with a computer pursuant to division (C) of section 3314.22 of the Revised Code, unless both of the following conditions are satisfied:

(a) The studentpossesses orhas been provided with all required hardware andsoftwarematerials and all such materials are operational so that the student is capable of fully participating in the learning opportunities specified in the contract between the school and the school's sponsor as required by division (A)(23) of section 3314.03 of the Revised Code;

(b) Theschool is in compliance with division (A)(1) or (2) of section~~3314.032~~ 3314.22 of the Revised Code, relative to such student.

(2) Inaccordance with policies adopted jointly by thesuperintendentofpublic instructionand the auditor of state,thedepartmentshallreduce the amounts otherwise payableunderdivision (D) ofthissection to any~~internet- orcomputer-based~~communityschool thatincludes in its program theprovision ofcomputerhardware andsoftware materials to ~~each~~any student, if suchhardwareand softwarematerials have not beendelivered,installed, andactivated for~~all students~~ each such student in a timely manner orother educationalmaterials orservices have not been providedaccording to thecontract betweenthe individual community schooland its sponsor.

The superintendent of public instructionand the auditor ofstate shall jointlyestablish a method for auditing any communityschool to which thisdivision pertains to ensure compliance withthis section.

The superintendent, auditor of state, and the governor shalljointlymake recommendations to the general assembly forlegislativechanges that may be required to assure fiscal andacademicaccountability for such~~internet- orcomputer-based~~schools.

(O)(1) If the department determines that a review of acommunity school's enrollment is necessary, such review shall becompleted and written notice of the findings shall be provided tothe governing authority of the community school and its sponsorwithin ninety days of the end of the community school's fiscalyear, unless extended for a period not to exceed thirty additionaldays for one of the following reasons:

(b) Delays in data submission caused by either a communityschool or its sponsor.

(2) If the review results in a finding that additionalfunding is owed to the school, such payment shall be made withinthirty days of the written notice. If the review results in afinding that the community school owes moneys to the state, thefollowing procedure shall apply:

(a) Within ten business days of the receipt of the notice offindings, the community school may appeal the department'sdetermination to the state board of education or its designee.

(b) The board or its designee shall conduct an informalhearing on the matter within thirty days of receipt of such anappeal and shall issue a decision within fifteen days of theconclusion of the hearing.

(c) If the board has enlisted a designee to conduct thehearing, the designee shall certify its decision to the board.Theboard may accept the decision of the designee or may rejectthedecision of the designee and issue its own decision on thematter.

(3) If it is decided that the community school owes moneysto the state, the department shall deduct such amount from theschool's future payments in accordance with guidelines issued bythe superintendent of public instruction.

(1) "Formula ADM" has the same meaning as in section 3317.03 of the Revised Code.

(3) "School district of residence" has the same meaning as in section 3323.01 of the Revised Code; however, a community school established under this chapter is not a "school district of residence" for purposes of this section.

(B) Notwithstanding anything to the contrary in section 3314.08 or 3317.03 of the Revised Code, all of the following apply in the case of a child who is enrolled in a community school and is also living in a home:

(1) For purposes of the report required under division (B)(1) of section 3314.08 of the Revised Code, the child's school district of residence, and not the school district in which the home that the child is living in is located, shall be considered to be the school district in which the child is entitled to attend school. That school district of residence, therefore, shall make the report required under division (B)(1) of section 3314.08 of the Revised Code with respect to the child.

(2) For purposes of the report required under division (B)(2) of section 3314.08 of the Revised Code, the community school shall report the name of the child's school district of residence.

(3) The child's school district of residence shall count the child in that district's formula ADM.

(4) The school district in which the home that the child is living in is located shall not count the child in that district's formula ADM.

(5) The Department of Education shall deduct the applicable amounts prescribed under division (C) of section 3314.08 and division (D) of section 3314.13 of the Revised Code from the child's school district of residence and shall not deduct those amounts from the school district in which the home that the child is living in is located.

(6) The Department shall make the payments prescribed in divisions (D) and (E) of section 3314.08 and section 3314.13 of the Revised Code, as applicable, to the community school.

Sec. 3314.085. (A) In each fiscal year beginning in fiscal year 2007, each internet- or computer-based community school shall spend for pupil instruction at least the amount per pupil designated in division (B)(1) of section 3317.012 of the Revised Code as the amount for base classroom teachers. For this purpose, expenditures for pupil instruction include expenditures for teachers, curriculum, academic materials other than computers, and any other instructional purposes designated in the rules adopted under this section. Expenditures to provide the computer hardware and filtering software required by sections 3314.21 and 3314.22 of the Revised Code do not qualify as pupil instruction for purposes of this section.

(B) Beginning in fiscal year 2007, each internet- or computer-based community school annually shall report data to the department of education concerning its expenditures for pupil instruction. Each school shall report the data in the form and manner required by the department.

(C) If the department determines, after offering the school an opportunity for a hearing in accordance with Chapter 119. of the Revised Code, that an internet- or computer-based community school has failed in any fiscal year to comply with division (A) or (B) of this section, the department shall assess a fine against the school equivalent to the greater of the following:

(1) Five per cent of the total state payments to the school under this chapter for the fiscal year in which the failure occurred;

(2) The difference between the amount the department determines the school was required to have spent for pupil instruction and the amount the department determines the school actually spent for pupil instruction.

The department's methods of collecting the fine may include withholding state payments under this chapter in the current or subsequent fiscal year.

The department may cancel a fine it has imposed under this section if the school submits a plan for coming into compliance with the requirements of this section that the department approves, and the school demonstrates to the department's satisfaction that it is implementing the plan.

(D) The superintendent of public instruction shall adopt rules in accordance with Chapter 119. of the Revised Code specifying expenditures that qualify as expenditures for pupil instruction for purposes of this section.

Sec. 3314.12. On or before the first day of November each year, the sponsor of each community school established under this chapter shall submit to the department of education, in accordance with guidelines adopted by the department for purposes of this section, a report that describes the special education and related services provided by that school to enrolled students during the previous fiscal year and the school's expenditures for those services.

(1)"All-day kindergarten"has the same meaning as insection3317.029 oftheRevised Code.

(2)"Formula amount" has the same meaning as in section3317.02 of the Revised Code.

(B) ~~The~~ Except as provided in division (C) of this section, the department of education annually shall pay eachcommunity schoolestablished under this chapter one-half of theformulaamount for each student to whom both of the followingapply:

(1) The student is entitled to attend school under section3313.64 or3313.65 of the Revised Code in a school district thatiseligible to receive a payment under division (D) of section3317.029of the Revised Code if it provides all-day kindergarten;

(2) The student is reported by the community school as enrolledinall-daykindergarten at the community school.

(D) If a student for whom paymentis made under division (B)of this section is entitled toattend school in a district thatreceives any paymentfor all-day kindergarten under division (D)of section 3317.029 of theRevised Code, the department shalldeduct the payment to the community school under this sectionfromthe amount paid that school district under that division. If thatschool district does not receive payment for all-daykindergartenunder that division because it does not provide all-daykindergarten, the department shall pay the community school fromstatefunds appropriated generally for ~~disadvantaged pupil impactaid~~ poverty-based assistance to school districts.

~~(D)~~(E) The department shalladjust the amounts deducted fromschool districts and paid tocommunity schools under this sectionto reflect any enrollmentsof students in all-day kindergarten incommunity schools forless than the equivalent of a full schoolyear.

(1) "Harmful to juveniles" has the same meaning as insection 2907.01 of the Revised Code.

(2) "Obscene" has the same meaning as in division (F) ofsection 2907.01 of the Revised Code as that division has beenconstrued by the supreme court of this state.

(3) "Teacher of record" means a teacher who is responsible for the overall academic development and achievement of a student and not merely the student's instruction in any single subject.

(B)(1)It is the intent of the general assembly that teachersemployed by internet- or computer-based community schools conductvisits with their students in person throughout the school year .

(2) Each internet- or computer-based community school shall retain an affiliation with at least one full-time teacher of record licensed in accordance with division (A)(10) of section 3314.03 of the Revised Code.

(3) Each student enrolled in an internet- or computer-based community school shall be assigned to at least one teacher of record. No teacher of record shall be primarily responsible for the academic development and achievement of more than one hundred twenty-five students enrolled in the internet- or computer-based community school that has retained that teacher.

(C) For any internet- or computer-based community school,thecontract between the sponsor and the governing authority oftheschool described in section 3314.03 of the Revised Code shallspecify each of the following:

(1) A requirement that the school use a filtering device orinstall filtering softwarethat protects against internet accessto materials that areobscene or harmful to juveniles on eachcomputer provided tostudents for instructional use. The schoolshall provide suchdevice or software at no cost to any studentwho works primarily from thestudent's residence on a computerobtained from a source otherthan the school.

(2) A plan for fulfilling the intent of the general assembly specified in division (B)(1) of this section. The plan shallindicate the number of times teachers will visit each studentthroughout the school year and the manner in which those visitswill be conducted.

(3) That the school will set up a central base of operationand the sponsor will maintain a representative within fifty milesof that base of operation to provide monitoring and assistance.

Sec. ~~3314.032~~ 3314.22. (A)(1) Each child enrolled in an internet- orcomputer-based community school is entitled to a computer suppliedby the school. In no case shall an internet- or computer-based community school provide a stipend or other substitute to an enrolled child or the child's parent in lieu of supplying a computer to the child. The prohibition contained in the preceding sentence is intended to clarify the meaning of this division as it existed prior to the effective date of this amendment and is not intended to change that meaning in any way.

(2) Notwithstanding division (A)(1) of this section, ifmorethan one child living in a single ~~household~~ residence is enrolled in aninternet- or computer-based community school, at the option of theparent of those children, the school may supply less than onecomputer per child, as long as at least one computer is suppliedto the ~~household~~ residence. The parent may amend the decision to acceptless than one computer per child anytime during the school year,and, in such case, within thirty days after the parent notifiesthe school of such amendment, the school shall provide anyadditiona1 computers requested by the parent up to the numbernecessary to comply with division (A)(1) of this section.

(B) Each internet- or computer-based community school shallprovide to each parent who is considering enrolling the parent'schild in the school and to the parent of each child alreadyenrolled in the school a written notice of the provisionsprescribed in divisions (A)(1) and (2) of this section.

(C) If a community school that is not an internet- or computer-based community school provides any of its enrolled students with nonclassroom-based learning opportunities provided via an internet- or other computer-based instructional method and requires such students to participate in any of those learning opportunities from their residences, the school shall be subject to this section and division (C)(1) of section 3314.21 of the Revised Code relative to each such student in the same manner as an internet- or computer-based community school, unless both of the following conditions apply to the student:

(1) The nonclassroom-based learning opportunities in which the student is required to participate from the student's residence are supplemental in nature or do not constitute a significant portion of the total classroom-based and nonclassroom-based learning opportunities provided to the student by the school;

(2) The student's residence is equipped with a computer available for the student's use.

Sec. ~~3314.034~~ 3314.24. (A) On or after July 1, 2004, no internet- or computer-based community school shall enter into a contract with a nonpublic school to use or rent any facility space at the nonpublic school for the provision of instructional services to students enrolled in the internet- or computer-based community school.

(B) If, on or after July 1, 2004, an internet- or computer-based community school has a contract with a nonpublic school as described in division (A) of this section, the department of education shall not make any payments under section 3314.08 of the Revised Code to the internet- or computer-based community school for any student who is enrolled in the internet- or computer-based community school and receives any instructional services from the internet- or computer-based community school at the nonpublic school.

Sec. 3314.25. Each internet- or computer-based community school shall provide its students a location within a fifty-mile radius of the student's residence at which to complete the statewide achievement tests and diagnostic assessments prescribed under sections 3301.079 and 3301.0710 of the Revised Code.

Sec. 3314.26. (A) Each internet- or computer-based community school shall withdraw from the school any student who, for two consecutive school years, has failed to participate in the spring administration of any test prescribed under section 3301.0710 or 3301.0712 of the Revised Code for the student's grade level and was not excused from the test pursuant to division (C)(1) or (3) of section 3301.0711 of the Revised Code. The school shall report any such student's data verification code, as assigned pursuant to section 3301.0714 of the Revised Code, to the department of education. The department shall maintain a list of all data verification codes reported under this division and section 3313.6410 of the Revised Code and provide that list to each internet- or computer-based community school and to each school to which section 3313.6410 of the Revised Code applies.

(B) No internet- or computer-based community school shall receive any state funds under this chapter for any enrolled student whose data verification code appears on the list maintained by the department under division (A) of this section.

Notwithstanding any provision of the Revied Code to the contrary, the parent of any such student shall pay tuition to the internet- or computer-based community school in an amount equal to the state funds the school otherwise would receive for that student, as determined by the department. An internet- or computer-based community school may withdraw any student for whom the parent does not pay tution as required by this division.

Sec. 3314.27. No student enrolled in an internet- or computer-based community school may participate in more than ten hours of learning opportunities in any period of twenty-four consecutive hours. Any time such a student participates in learning opportunities beyond the limit prescribed in this section shall not count toward the annual minimum number of hours required to be provided to that student as prescribed in division (A)(11)(a) of section 3314.03 of the Revised Code. If any internet- or computer-based community school requires its students to participate in learning opportunities on the basis of days rather than hours, one day shall consist of a minimum of five hours of such participation.

Sec. 3314.28. (A) Each internet- or computer-based community school established under this chapter shall submit to the school's sponsor a plan for providing special education and related services to disabled students enrolled in the school in accordance with division (A)(1) or (2) of this section.

(1) If the school was established prior to the effective date of this section, the plan shall be submitted to the sponsor on or before September 1, 2005, and on or before the first day of September in each year thereafter that the school is in operation.

(2) If the school is established after the effective date of this section, the plan shall be submitted to the sponsor prior to the school's receipt of its first payment under this chapter and on or before the first day of September in each year thereafter that the school is in operation.

(B) Within thirty days after receiving the plan prescribed in division (A) of this section, the sponsor of each internet- or computer-based community school shall certify all of the following to the department of education:

(2) If the plan received is not satisfactory to the sponsor, the sponsor's assurance that it will promptly assist the school in developing a plan that is satisfactory to the sponsor;

(3) The sponsor's assurance that it will monitor the implementation of the plan;

(4) The sponsor's assurance that it will take any necessary corrective action to ensure that the school's plan is properly and fully implemented.

Sec. 3314.35. (A) This section applies to any community school established under this chapter that meets one or more of the following criteria:

(1) The school is declared to be in need of continuous improvement, under an academic watch, or in a state of academic emergency pursuant to section 3302.03 of the Revised Code.

(3) The school does not offer any grade level for which an achievement test is prescribed under section 3301.0710 of the Revised Code or the number of students enrolled in each grade level offered by the school for which an achievement test is prescribed is too small to yield statistically reliable data about student performance, as determined by the department of education.

(B) Beginning in the 2006-2007 school year, each community school to which this section applies shall administer a reading and mathematics assessment approved by the department in the fall and spring of the school year to each student who is enrolled in any of grades one through twelve to measure the academic progress made by students during the school year. For each grade level, the community school shall administer the same assessment in the spring that the school administers in the fall.

(C) Each community school that administers the assessments required by division (B) of this section shall be responsible for all costs associated with the administration and scoring of the assessments. Each community school shall report the scores of all students taking the assessments to the department in a manner prescribed by the department.

(D) The department shall establish a list of nationally normed assessments in reading and mathematics that it approves for use by community schools under this section. The department may approve assessments in other subject areas, but no community school shall be required to administer an assessment in a subject area other than reading or mathematics under this section.

(E) The sponsor of any community school to which this section does not apply may elect to have the school administer reading and mathematics assessments in accordance with this section.

Sec. 3314.36. (A) Not later than July 1, 2006, the state board of education shall adopt rules establishing reasonable standards for expected gains in student achievement between the fall and spring administrations of the reading and mathematics assessments administered under section 3314.35 of the Revised Code and for expected gains in the graduation rate.

(B) Any community school that is declared to be under an academic watch or in a state of academic emergency pursuant to section 3302.03 of the Revised Code after July 1, 2006, or to which division (A)(3) of section 3314.35 of the Revised Code applies shall be subject to division (C) of this section beginning the next school year if either of the following apply to the school:

(1) The percentage of the school's total student population showing the expected gains in student achievement established under division (A) of this section on the reading or mathematics assessments administered most recently under section 3314.35 of the Revised Code is less than fifty-five per cent.

(2) The school offers a high school diploma but is not showing the expected gains in the graduation rate established under division (A) of this section.

A community school that has been in operation for one school year shall not be subject to division (C) of this section.

(C)(1) In the first school year that a community school is subject to division (C) of this section, if the school is an internet- or computer-based community school, the school shall not enroll any students in excess of the number of students the school enrolled at the conclusion of the preceding school year.

(2) In the second consecutive school year that a community school is subject to division (C) of this section, if the school is an internet- or computer-based community school, the school shall do both of the following:

(b) Withdraw from the school at the conclusion of the school year any student for whom any of the following conditions apply, unless the student's parent agrees to pay tuition to the school in an amount equal to the state funds the school otherwise would receive for that student as determined by the department of education:

(i) For two consecutive school years, the student has taken the reading and mathematics assessments administered under section 3314.35 of the Revised Code but has failed to show the expected gains in student achievement established under division (A) of this section for both reading and mathematics.

(ii) For two consecutive school years, the student has not taken one or more of the reading and mathematics assessments described in division (C)(2)(b)(i) of this section.

(iii) For one of two consecutive school years, the student took the reading and mathematics assessments described in division (C)(2)(b)(i) of this section but failed to show the expected gains in student achievement also described in that division for both reading and mathematics, and, for the other school year, the student did not take one or more of those assessments.

After the conclusion of the school year, the school shall not receive state funds for any student who is required to be withdrawn or for whom tuition is owed under division (C)(2)(b) of this section.

(3) In the third consecutive school year that any community school is subject to division (C) of this section, the following shall apply:

(a) If the school is an internet- or computer-based community school, the school shall continue to comply with division (C)(1)(a) of this section.

(b) The school shall be permanently closed at the conclusion of the school year.

(D) The sponsor of any community school that is declared to be in need of continuous improvement, effective, or excellent pursuant to section 3302.03 of the Revised Code and offers one or more grade levels for which an achievement test is prescribed under section 3301.0710 of the Revised Code may elect to evaluate the performance of the school in accordance with division (B) of this section, provided the school administers reading and mathematics assessments under section 3314.35 of the Revised Code. If the sponsor so elects, the evaluation method shall be used for a minimum of three school years and shall be specified in the contract required by section 3314.03 of the Revised Code. Nothing in this division requires the sponsor of a community school that elects to evaluate the school in accordance with division (B) of this section to take any action specified in division (C) of this section, unless the contract requires such action.

(E) In calculating the gains in student achievement demonstrated by a community school for the purposes of division (B) of this section, the department shall include the scores of all students who participated in the fall and spring administrations of the assessments administered under section 3314.35 of the Revised Code. If the school's participation rate for any grade level is less than ninety per cent, the department shall calculate the gains in academic achievement demonstrated by the students in that grade level as if the participation rate was ninety per cent by assuming a score of zero for each student that it is necessary to add to the participation rate to make that rate equal ninety per cent.

Sec. 3315.17. (A) Theboard of education of each city,exempted village, local, andjoint vocational school districtshall establish a textbook andinstructional materials fund. Eachboard annuallyshall deposit into that fund an amount derivedfrom revenues received bythe district foroperating expensesthatis equal to three per cent of the formula amountfor the precedingfiscal year, as defined in section 3317.02 of the Revised Code, oranotherpercentage if established by the auditor of state underdivision (C)of this section, multiplied bythe district's studentpopulation for the preceding fiscal year. Money in the fund shallbe used solely fortextbooks, instructional software, andinstructional materials,supplies, and equipment. Any money inthe fund that is not usedin any fiscal year shall carry forwardto the next fiscalyear.

(B)(1) Notwithstanding division (A) of this section, if in afiscal yeara district board deposits in the textbook andinstructionalmaterials fund an amount of money greater than theamount requiredto be deposited by this section or the rulesadopted underdivision (C) of this section, the board may deductthe excessamount of money from the amount of money required to bedeposited insucceeding fiscal years.

(2) Notwithstanding division (A) of this section, in any year a district is in fiscal emergency status as declared pursuant to section 3316.03 of the Revised Code, the district may deposit an amount less than required by division (A) of this section, or make no deposit, into the district textbook and instructional materials fund for that year.

(3) Notwithstanding division (A) of this section, in any fiscal year that a school district is either in fiscal watch status, as declared pursuant to section 3316.03 of the Revised Code, or in fiscal caution status, as declared pursuant to section 3316.031 of the Revised Code, the district may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district textbook and instructional materials fund for that year. The superintendent may grant a waiver under division (B)(3) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will create an undue financial hardship on the district.

(4) Notwithstanding division (A) of this section, not more often than one fiscal year in every three consecutive fiscal years, any school district that does not satisfy the conditions for the exemption described in division (B)(2) of this section or the conditions to apply for the waiver described in division (B)(3) of this section may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district textbook and instructional materials fund for that year. The superintendent may grant a waiver under division (B)(4) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will necessitate the reduction or elimination of a program currently offered by the district that is critical to the academic success of students of the district and that no reasonable alternatives exist for spending reductions in other areas of operation within the district that negate the necessity of the reduction or elimination of that program.

(C) The statesuperintendent of public instruction and theauditor of statejointly shall adopt rules in accordance withChapter 119. of theRevised Code defining what constitutestextbooks, instructional software, and instructional materials,supplies, and equipment for which money in a school district'stextbook and instructional materials fund may be used. Theauditor of state also may designate apercentage, otherthanthreeper cent, of the formula amount multiplied by thedistrict'sstudent population thatmust bedeposited into thefund.

(D) Notwithstandingdivision (A) of this section, adistrictboard of education in any fiscal year may appropriatemoney in thedistrict textbook and instructional materials fundfor purposesother than those permitted by that division if bothof thefollowing occur during that fiscal year:

(1) All of the following certify to the district board inwritingthat the district has sufficient textbooks, instructionalsoftware, and instructional materials, supplies, and equipmenttoensure a thorough and efficient education within thedistrict:

(b) In districts required to have a business advisorycouncil, aperson designated by vote of the business advisorycouncil;

(c) If the district teachers are represented by anexclusivebargaining representative for purposes ofChapter 4117. of theRevisedCode, the president of thatorganization or thepresident's designee.

(2) The district board adopts, by unanimous vote of allmembers of the board, a resolution stating that the district hassufficient textbooks, instructional software, and instructionalmaterials, supplies, and equipment to ensure a thorough andefficient education within the district.

(E) Notwithstanding any provision to the contrary inChapter4117. of the Revised Code, the requirements of this sectionprevailover anyconflicting provisions of agreements betweenemployee organizations and publicemployers entered into on orafterNovember 21, 1997.

(F) As used in this section and in section 3315.18 of theRevised Code,"studentpopulation" means the average, daily,full-time-equivalent number of studentsin kindergartenthroughtwelfth gradereceiving any educational services from the schooldistrict during the firstfull school week in October, excludingstudents enrolled in adulteducation classes, but including all ofthe following:

(1) Adjacent or other district students enrolled in thedistrictunder an open enrollment policy pursuant to section3313.98 of theRevised Code;

(2) Students receiving services in the district pursuant toacompact, cooperative education agreement, or a contract, but whoareentitled to attend school in another district pursuant tosection3313.64 or 3313.65 of the Revised Code;

(3) Students for whom tuition is payable pursuant tosections3317.081 and 3323.141 of the Revised Code.

The department of education shall determine a district'sstudent populationusing data reported to it under section 3317.03of the Revised Code for the applicable fiscalyear.

Sec. 3315.18. (A) The board of education of each city,exempted village, local, and joint vocational school districtshall establish a capital and maintenance fund. Eachboardannually shall depositinto that fund an amount derived fromrevenues received by the districtthat would otherwisehave beendeposited in the general fundthat is equal to three per cent ofthe formula amountfor the preceding fiscal year, as defined insection 3317.02 of the Revised Code, or anotherpercentage ifestablished by the auditor of state under division (B)of thissection, multiplied bythe district's student population for thepreceding fiscal year,except that moneyreceived from a permanentimprovement levy authorized by section5705.21 of the Revised Codemay replace general revenue moneys inmeeting the requirements ofthis section. Money in the fundshall be used solely foracquisition, replacement, enhancement, maintenance,or repair ofpermanent improvements, as that term is defined insection 5705.01of the Revised Code. Any money in the fund thatis not used inany fiscal year shall carry forward to the nextfiscal year.

(B) The state superintendent of public instruction andtheauditor of state jointly shall adopt rules in accordancewithChapter 119. of the Revised Code defining what constitutesexpenditures permitted by division (A) of this section. Theauditor of state maydesignate a percentage, other than three percent, of the formula amount multiplied by the district'sstudentpopulation that must be deposited into the fund.

(C) Within its capital and maintenance fund, a schooldistrict boardof education may establish a separate accountsolely for thepurpose of depositing funds transferred from thedistrict'sreserve balance account established under formerdivision (H) ofsection 5705.29 of the Revised Code. After~~theeffectivedate of this amendment~~April 10, 2001, a board may deposit all or partof the funds formerlyincluded in such reserve balance account inthe separate account establishedunder this section. Fundsdeposited in this separate account and interest onsuchfundsshall be utilized solely for the purpose of providing thedistrict's portion of the basic project costs of any projectundertaken in accordance with Chapter 3318. of the RevisedCode.

(D) (1) Notwithstanding division (A) of this section, in any year a district is in fiscal emergency status as declared pursuant to section 3316.03 of the Revised Code, the district may deposit an amount less than required by division (A) of this section, or make no deposit, into the district capital and maintenance fund for that year.

(2) Notwithstanding division (A) of this section, in any fiscal year that a school district is either in fiscal watch status, as declared pursuant to section 3316.03 of the Revised Code, or in fiscal caution status, as declared pursuant to section 3316.031 of the Revised Code, the district may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district capital and maintenance fund for that year. The superintendent may grant a waiver under division (D)(2) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will create an undue financial hardship on the district.

(3) Notwithstanding division (A) of this section, not more often than one fiscal year in every three consecutive fiscal years, any school district that does not satisfy the conditions for the exemption described in division (D)(1) of this section or the conditions to apply for the waiver described in division (D)(2) of this section may apply to the superintendent of public instruction for a waiver from the requirements of division (A) of this section, under which the district may be permitted to deposit an amount less than required by that division or permitted to make no deposit into the district capital and maintenance fund for that year. The superintendent may grant a waiver under division (D)(3) of this section if the district demonstrates to the satisfaction of the superintendent that compliance with division (A) of this section that year will necessitate the reduction or elimination of a program currently offered by the district that is critical to the academic success of students of the district and that no reasonable alternatives exist for spending reductions in other areas of operation within the district that negate the necessity of the reduction or elimination of that program.

(E) Notwithstanding any provision to the contrary inChapter4117. of the Revised Code, the requirements of this sectionprevailover any conflicting provisions of agreements betweenemployee organizationsand public employers entered into afterNovember 21, 1997.

Sec. 3315.37. The board of education of a school districtmay establish a teacher education loan program and may expendschool funds for the program. The program shall be for thepurpose of making loans to students who are residents of theschool district or graduates of schools in the school district,who are enrolled in teacher preparation programs at institutionsapproved by the state board pursuant to section 3319.23 of theRevised Code, and who indicate an intent to teach in the schooldistrict providing the loan. The district board may forgive theobligation to repay any or all of the principal and interest onthe loan if the borrower teaches in that school district.

The district board shall adopt rules establishingeligibility criteria, application procedures, procedures forreview of applications, loan amounts, interest, repaymentschedules, conditions under which principal and interestobligations incurred under the program will be forgiven, and anyother matter incidental to the operation of the program.

The board may contract with a private, nonprofitfoundation, one or more institutions of higher education, orother educational agencies to administer the program.

The receipt of a loan under this section does not affect astudent's eligibility for assistance, or the amount of suchassistance, granted under section 3315.33, 3333.12, 3333.122, 3333.22,3333.26, 3333.27, 5910.04, or 5919.34 of the Revised Code, butthe board's rules may provide for taking such assistance intoconsideration when determining a student's eligibility for a loanunder this section.

Sec. 3316.043. Upon the approval by the superintendent of public instruction of an initial financial plan under section 3316.04 of the Revised Code or a financial recovery plan under section 3316.06 of the Revised Code, the board of education of the school district for which the plan was approved shall revise the district's five-year projection of revenues and expenditures in accordance with rules adopted under section 5705.391 of the Revised Code so that the five-year projection is consistent with the financial plan or financial recovery plan. In the case of a school district declared to be in a state of fiscal emergency, the five-year projection shall be revised by the financial planning and supervision commission for that district.

Sec. 3316.06. (A) Within one hundred twenty days after thefirst meeting of a school district financial planning andsupervisioncommission, the commission shall adopt a financialrecovery plan regarding theschool district for which thecommission was created. During the formulationof the plan, thecommission shall seek appropriate input from the schooldistrictboard and from the community. This plan shall contain thefollowing:

(a) Eliminate all fiscal emergency conditions declaredtoexist pursuant to division (B) of section 3316.03 of the RevisedCode;

(b) Satisfy any judgments, past-due accounts payable, andall past-due and payable payroll and fringe benefits;

(c) Eliminate the deficits in all deficit funds, except that any prior year deficits in the textbook and instructional materials fund established pursuant to section 3315.17 of the Revised Code and the capital and maintenance fund established pursuant to section 3315.18 of the Revised Code shall be forgiven;

(d) Restore to special funds any moneys from such funds thatwereused for purposes not within thepurposes of such funds, orborrowed from such fundsby the purchase of debt obligations ofthe school district with themoneys of such funds, or missing fromthe special funds and not accounted for,if any;

(e) Balance the budget, avoid future deficits in anyfunds,and maintain on a current basis payments of payroll, fringebenefits,and all accounts;

(g) Restore the ability of the school district to marketlong-term general obligation bonds under provisions of lawapplicable to school districts generally.

(2) The management structure that will enable the schooldistrict totake the actions enumerated in division (A)(1) of thissection. The plan shall specify the level of fiscal andmanagement controlthat the commission will exercise within theschool district during the periodof fiscal emergency, and shallenumerate respectively, the powers and dutiesof the commissionand the powers and duties of the school board during thatperiod.The commission may elect to assume any of the powers and duties ofthe school board it considers necessary, including all powersrelated topersonnel, curriculum, and legal issues in order tosuccessfully implement theactions described in division (A)(1) ofthis section.

(3) The target dates for the commencement, progressupon,and completion of the actions enumerated indivision (A)(1) ofthis section and a reasonable period of timeexpected to berequired to implement the plan. The commission shall prepare areasonable time schedule for progress toward andachievement ofthe requirements for the plan, and theplan shall be consistentwith that time schedule.

(4) The amount and purpose of any issue of debtobligationsthat will be issued, together with assurances thatany such debtobligations that will be issued will not exceeddebt limitssupported by appropriate certifications by the fiscalofficer ofthe school district and the county auditor. Debt obligationsissued pursuant to section 133.301 of the Revised Code shallincludeassurances that such debt shall be in an amount not toexceed the amountcertified under division (B) of such section.Ifthecommissionconsiders itnecessary in order to maintain orimprove educational opportunities of pupilsin the schooldistrict, the plan may include a proposal to restructure orrefinance outstanding debt obligations incurred by the board undersection3313.483 of the Revised Code contingent uponthe approval,during the period of the fiscal emergency, by district voters ofatax levied under section 718.09, 718.10, 5705.194, 5705.21,5748.02, or5748.08 ofthe Revised Code, that is not a renewal orreplacement levy and thatwill provide new operating revenue.Notwithstanding any provision ofChapter 133.or sections 3313.483to 3313.4811 of the Revised Code,following therequired approvalof the district voters and with the approval of thecommission,the school district may issue securities to evidence therestructuring or refinancing. Those securities may extend theoriginal period for repayment, not to exceed ten years, andmayalterthe frequency and amount of repayments, interest or otherfinancing charges, and other terms of agreements under which thedebtoriginally was contracted, at the discretion of thecommission, provided thatany loans received pursuant to section3313.483 of the Revised Code shall bepaid from funds the districtwould otherwise receive under sections 3317.022to 3317.025 of theRevised Code, as required under division (E)(3) of section3313.483 of the Revised Code. The securities issued for thepurpose ofrestructuring or refinancing the debt shall be repaidin equal payments and atequal intervals over the term of the debtand are not eligible to be includedin any subsequent proposal forthe purpose of restructuring or refinancingdebt under thissection.

(B) Any financial recovery plan may be amended subsequent toitsadoption. Each financial recovery plan shall be updatedannually.

(C) Each school district financial planning and supervisioncommission shall submit the financial recovery plan it adopts orupdates underthis section to the statesuperintendent of publicinstruction for approval immediatelyfollowing its adoption orupdating. The state superintendentshall evaluate the plan andeither approve or disapprove it withinthirty calendar days fromthe date of its submission. If theplan is disapproved, the statesuperintendent shall recommendmodifications that will render itacceptable. No financialplanning and supervision commissionshall implement a financialrecovery plan that is adopted orupdated on or after~~the effectivedate of this amendment~~April 10, 2001, unlessthe state superintendent hasapproved it.

Sec. 3316.16. (A) A school district financial planning andsupervision commission, with respect to its functionsunder this chapter, shall continue in existence until such timeas a determination is made under division (B) of thissection that all of the following have occurred:

(1) An effective financial accounting andreporting system in accordance with section 3316.10 of the Revised Codeis in the process of being implemented, and it is reasonably expected thatthis implementation will be completed within two years.

(2) All of the fiscal emergency conditions determined pursuant to division(B) of section 3316.03 of the Revised Code have been corrected or eliminated,and no new fiscal emergency conditions have occurred.

(3) The objectives of the financial recovery plan described insection 3316.06 of the Revised Code are being met.

(4) The school district board has prepared a financial forecast for afive-year period in accordance with the standards issued by theauditor of state and an opinion has been rendered by the auditor of state thatthe financial forecast is considered to be nonadverse. The forecast shall display the district's projected compliance with sections 3315.17 and 3315.18 of the Revised Code beginning in the year the commission is proposed for termination.

(B) The determination that all conditions listed in division(A) of this section for thetermination of the existence of the commission and its functionsexist may be made either by the auditor of state or by thecommission and shall be certified to the commission, the auditorof state, the governor, the director of budget and management, and the budgetcommission, whereupon suchcommission and its functions under this chapter shall terminate. Thisdetermination shall be made by the auditor of state upon thefiling with the auditor of state of a written request forsuch a determination by the school district board,the governor, or the commission, or may be madeby the auditor of state upon the auditor of state's owninitiative.

(C) The commission shall prepare and submit at the time of suchcertification a final report of its activities, in such form asis appropriate for the purpose of providing a record of itsactivities and assisting other commissions created under thischapter in the conduct of their functions. All of the books andrecords of the commission shall be delivered to the auditor ofstate for retention and safekeeping.

(D) Upon receipt of the certification provided for indivision (B) of this section, the director of budget and managementshall follow theprocedures set forth in section 126.29 of the Revised Code.

(E) If, at the time of termination of the commission, aneffective financial accounting and reporting system has not beenfully implemented, the auditor of state shall monitor theprogress of implementation and shall exercise authority under this section andChapter 117. of the Revised Code to securefull implementation at the earliest time feasible but within twoyears after such termination.

Sec. 3317.01. As used in this section and section 3317.011of the Revised Code,"school district," unless otherwisespecified, means any city, local, exempted village, jointvocational, or cooperative education school district andanyeducational service center.

This chapter shall be administered by the state board ofeducation. The superintendent of public instruction shallcalculate the amounts payable to each school district and shallcertify the amounts payable to each eligible district to thetreasurer of the district as provided by this chapter. As soon as possible after such amounts are calculated, the superintendent shall certify to the treasurer of each school district the district's adjusted charge-off amount, as defined in section 5705.211 of the Revised Code, for the fiscal year for which those amounts are computed and for the fiscal year preceding that fiscal year. A separate certification of the adjusted charge-off amounts is not required if the certification of other amounts computed under this chapter indicates those adjusted charge-off amounts. No moneysshall be distributed pursuant to this chapter without theapprovalof the controlling board.

The state board of education shall, in accordance withappropriations made by the general assembly, meet the financialobligations of this chapter.

Annually, the department of education shall calculate andreport to eachschool district the district's total state andlocal funds for providing anadequate basic education to thedistrict's nonhandicapped students, utilizingthe determination insection 3317.012 of the Revised Code. In addition, thedepartmentshallcalculate and report separately for each school district thedistrict's totalstate and local funds for providing an adequateeducation for its handicappedstudents, utilizing thedeterminations in both sections 3317.012 and 3317.013of theRevised Code.

Not later than the thirty-first day of August of each fiscalyear,the department of education shall provide to each schooldistrict andcounty MR/DD board a preliminary estimate of theamount of fundingthat the department calculates the district willreceive under each ofdivisions (C)(1) and(4) of section3317.022of the Revised Code. No laterthan the first day ofDecember ofeach fiscal year, the department shallupdate thatpreliminaryestimate.

Moneys distributed pursuant to this chapter shall becalculated and paid on a fiscal year basis, beginning with thefirst day of July and extending through the thirtieth day ofJune.The moneys appropriated for each fiscal year shall bedistributedat least monthly to each school district unlessotherwise providedfor. The state board shall submit a yearlydistribution plan tothe controlling board at itsfirst meeting in July. The stateboard shall submit any proposed midyearrevision of the plan tothe controllingboard in January. Any year-end revision of theplan shall be submitted tothe controlling board in June. Ifmoneys appropriated for eachfiscal year are distributed otherthan monthly, such distributionshall be on the same basis foreach school district.

The total amounts paid each month shall constitute, asnearlyas possible, one-twelfth of the total amount payable fortheentire year. ~~Payments~~

Until fiscal year 2006, payments made during the first six months ofthefiscal year may be based on an estimate of the amountspayable forthe entire year. Payments made in the last sixmonths shall bebased on the final calculation of the amountspayable to eachschool district for that fiscal year. Paymentsmade in the lastsix months may be adjusted, if necessary, tocorrect the amountsdistributed in the first six months, and toreflect enrollmentincreases when such are at least three percent. ~~Except~~

Beginning in fiscal year 2006, payments shall be calculated to reflect the biannual reporting of average daily membership. In fiscal year 2006 and in each fiscal year thereafter, payments for July through December shall be based on student counts certified pursuant to section 3317.03 of the Revised Code for the first full week in October, and payments for January through June shall be based on the average of student counts certified pursuant to that section for the first full week of the previous October and the third full week in February.

Except asotherwise provided, payments under this chaptershall be made onlyto those school districts in which:

(A) The school district, except for anyeducational servicecenter and any jointvocational or cooperative education schooldistrict, levies forcurrent operating expenses at least twentymills. Levies forjoint vocational or cooperative educationschool districts orcounty school financing districts, limited toor to the extentapportioned to current expenses, shall beincluded in thisqualification requirement. School districtincome tax leviesunder Chapter 5748. of the Revised Code, limitedto or to theextent apportioned to current operating expenses,shall beincluded in this qualification requirement to the extentdetermined by the tax commissioner under division (D) ofsection3317.021 of the Revised Code.

(B) The school year next preceding the fiscal year forwhichsuch payments are authorized meets the requirement ofsection3313.48 or 3313.481 of the Revised Code, with regard totheminimum number of days or hours school must be open forinstruction with pupils in attendance, for individualizedparent-teacher conference and reporting periods, and forprofessional meetings of teachers. This requirement shall bewaived by the superintendent of public instruction if it had beennecessary for a school to be closed because of disease epidemic,hazardous weather conditions, inoperability of school buses orother equipmentnecessary to the school's operation, damage to aschool building, orother temporary circumstances due to utilityfailure renderingthe school building unfit for school use,provided that for thoseschool districts operating pursuant tosection 3313.48 of theRevised Code the number of days the schoolwas actually open forinstruction with pupils in attendance andfor individualizedparent-teacher conference and reporting periodsis not less thanone hundred seventy-five, or for those schooldistricts operatingon a trimester plan the number of days theschool was actuallyopen for instruction with pupils in attendancenot less thanseventy-nine days in any trimester, for those schooldistrictsoperating on a quarterly plan the number of days theschool wasactually open for instruction with pupils in attendancenot lessthan fifty-nine days in any quarter, or for those schooldistricts operating on a pentamester plan the number of days theschool was actually open for instruction with pupils inattendancenot less than forty-four days in any pentamester.

A school district shall not be considered to have failed tocomply with this division or section 3313.481 of the Revised Codebecause schools were open for instruction but either twelfthgradestudents were excused from attendance for up to three daysor onlya portion of the kindergarten students were in attendancefor upto three days in order to allow for the gradualorientation toschool of such students.

The superintendent of public instruction shall waive therequirements of this section with reference to the minimum numberof days or hours school must be in session with pupils inattendance for the school year succeeding the school year inwhicha board of education initiates a plan of operation pursuanttosection 3313.481 of the Revised Code. The minimumrequirements ofthis section shall again be applicable to such adistrictbeginning with the school year commencing the secondJulysucceeding the initiation of one such plan, and for eachschoolyear thereafter.

A school district shall not be considered to have failed tocomply withthis division or section 3313.48 or 3313.481 of theRevised Code becauseschools were open for instruction but thelength of the regularly scheduledschool day, for any number ofdays during the school year, was reduced by notmore than twohours due to hazardous weather conditions.

(C) The school district has on file, and is paying inaccordance with, a teachers' salary schedulewhich complies withsection 3317.13 of the Revised Code.

A board of education or governing board of an educationalservice center whichhas not conformed with other lawand therules pursuant thereto, shall not participate in thedistributionof funds authorized by sections 3317.022 to3317.0211, 3317.11,3317.16, 3317.17, and 3317.19 of the RevisedCode, except for goodand sufficient reason established to thesatisfaction of the stateboard of education and the statecontrolling board.

All funds allocated to school districts under this chapter,except those specifically allocated for other purposes, shall beused to pay current operating expenses only.

Sec. 3317.012. (A) The general assembly, having deliberated on the model with which to calculate the base cost of an adequate education per pupil, has made a policy decision to calculate that amount as consisting of the following building blocks:

(2) Other personnel support, which includes additional teachers, such as music, arts, and physical education teachers funded by state, local, or federal funds or other funds that are above the base cost funding level, and other school personnel including administrators;

This model reflects policy decisions made by the general assembly concerning the cost of base classroom teachers, which decisions entail two policy variables: the number of students per base classroom teacher necessary for an adequate education and the average compensation for a base classroom teacher necessary for an adequate education. The model requires the general assembly to decide the amount of other personnel support necessary for an adequate education, and increase that amount from year to year by the same percentage as it increases the average compensation for base classroom teachers. The model finally requires the general assembly to decide the nonpersonnel costs necessary for an adequate education and to inflate the nonpersonnel costs from year to year using the projected inflationary measure for the gross domestic product deflator (all items) prepared by the bureau of labor statistics of the United States department of labor.

(B)(1) For fiscal year 2006, the general assembly has resolved that a ratio of one base classroom teacher per twenty students is necessary for an adequate education. The general assembly has made a policy decision that the average compensation for base classroom teachers is $53,680 for fiscal year 2006, which includes an amount for the value of fringe benefits. For fiscal year 2007, the general assembly has resolved that a ratio of one base classroom teacher per twenty students is necessary for an adequate education. The general assembly has made a policy decision that the average compensation for base classroom teachers is $54,941, which includes an amount for the value of fringe benefits. Based on a ratio of twenty students per base classroom teacher, these amounts equal $2,684 per pupil in fiscal year 2006 and $2,747 per pupil in fiscal year 2007.

(2) The general assembly has made a policy decision that the per pupil cost of salary and benefits of other personnel support is $1,807 in fiscal year 2006. Based on the percentage increase for the average compensation of base classroom teachers from fiscal year 2006 to fiscal year 2007, the per pupil cost of other personnel support is $1,850 in fiscal year 2007.

(3) The general assembly has made a policy decision that the per pupil cost of nonpersonnel support is $792 in fiscal year 2006 and $806 in fiscal year 2007. The amount for fiscal year 2007 reflects the projected inflationary measure for the gross domestic product deflator (all items) of 1.80%.

(4) Based on the determinations specified in divisions (B)(1) to (3) of this section, the per-pupil base cost is $5,283 in fiscal year 2006 and $5,403 in fiscal year 2007.

(C) In addition to the per-pupil base cost as determined under divisions (A) and (B) of this section, the general assembly determines that the following base funding supplements shall be paid to each school district:

(1) Base funding for large-group academic intervention for all students, based on 25 hours per group of students per year at an hourly rate of $20.00 in fiscal year 2006 and $20.40 in fiscal year 2007, as follows:

(a) "Large-group intervention units" equals the district's formula ADM divided by 20;

(b) "Hourly rate" equals $20.00 in fiscal year 2006 and $20.40 in fiscal year 2007.

(2) Base funding for professional development, phased in according to the following formula:

(a) For each school district, the district's "teacher factor" is the district's formula ADM divided by 17;

(b) "Phase-in percentage" equals 0.25 in fiscal year 2006 and 0.75 in fiscal year 2007.

(3) Base funding for data-based decision making, calculated according to the following formula:

(4) Base funding for professional development regarding data-based decision making, calculated according to the following formula:

(a) For each school district, the district's "teacher factor" is the district's formula ADM divided by 17;

(b) For each school district, the district's "principal factor" is the district's formula ADM divided by 340.

(D) The general assembly intends that school districts spend the state funds calculated and paid for each component of the building blocks methodology described in divisions (B)(1) to (3) and (C)(1) to (4) of this section according to the purposes described in those divisions.

Analysis of special education cost data has resulted in afinding that the average special education additionalcost perpupil, includingthe costs of related services, can be expressedas a multiple of the base costper pupilcalculated under section3317.012 of the Revised Code. Themultiples for the followingcategories of special educationprograms, as these programs aredefined for purposes of Chapter3323. of the Revised Code,andadjusted as provided in this section, are asfollows:

(A)A multiple of 0.2892 for students whose primary or onlyidentified handicap is a speech and language handicap, as thisterm is defined pursuant to Chapter 3323. of the Revised Code;

(B) A multiple of0.3691 for students identified asspecificlearning disabled ordevelopmentallyhandicapped, asthese terms are defined pursuantto Chapter 3323.ofthe RevisedCode, or other healthhandicapped-minor;

(C) A multiple of1.7695 for students identified ashearinghandicapped, visionimpaired,or severe behavior handicapped, asthesetermsare defined pursuant toChapter 3323. of the RevisedCode;

(D) A multiple of 2.3646 for students identified asorthopedically handicapped, as thisterm is defined pursuant toChapter 3323. of the Revised Code or other health handicapped -major;

(E) A multiple of 3.1129 for students identified asmultihandicapped, asthis term is defined pursuant to Chapter3323. of the RevisedCode;

(F) A multiple of 4.7342 for students identified asautistic, having traumatic brain injuries, or as both visuallyand hearing disabled, as these terms aredefinedpursuant toChapter 3323. of the Revised Code.

In fiscal year 2004, the multiples specified in divisions (A)to (F) of this section shall be adjusted by multiplying them by 0.88. In fiscal ~~year~~ years 2005, 2006, and 2007, the multiples specified in thosedivisions shall be adjusted by multiplying them by 0.90.

Not later than the thirtieth day of May ~~30,~~ in 2004, ~~and May 30,~~ 2005, 2006, and 2007, the department shall submit to the office of budget and management a report that specifies for each city, local, exempted village, and joint vocational school district the fiscal year allocation of the state and local shares of special education and related services additional weighted funding and federal special education funds passed through to the district.

Sec. 3317.016. In addition to its form SF-3, or any successor to that form, the department of education shall publish on its web site a spreadsheet for each school district that specifies the constituent components of the district's "building blocks" funds, as follows:

(A) For compensation of base classroom teachers, as described in division (B)(1) of section 3317.012 of the Revised Code, each spreadsheet shall specify the district's aggregate and per pupil amounts of state funds and of combined state and local funds, the average compensation decided by the general assembly for base classroom teachers, as specified in that division, and the number of base classroom teachers attributable to the district based on the student-teacher ratio decided by the general assembly, as specified in that division.

(B) Each spreadsheet shall specify the district's aggregate and per pupil amounts of state funds and of combined state and local funds for each of the following:

(1) Other personnel support, as described in division (B)(2) of section 3317.012 of the Revised Code;

(3) Academic intervention services, as described in division (C)(1) of that section;

(5) Data-based decision making, as described in division (C)(3) of that section;

(6) Professional development for data-based decision making, as described in division (C)(4) of that section.

(C) Each spreadsheet shall separately specify the district's aggregate and per pupil state funds for each of the following components of poverty-based assistance under section 3317.029 of the Revised Code:

(1) Poverty-based assistance guarantee payment under division (B) of that section;

(5) Services to limited English proficient students under division (F) of that section;

Sec. 3317.017. (A) Not later than July 1, 2006, the superintendent of public instruction shall adopt a rule under which the superintendent may issue an order with respect to the spending, by a school district declared to be under an academic watch or in a state of academic emergency under section 3302.03 of the Revised Code, of the following state building block funds intended to pay instructional-related costs:

(1) State funds for compensation of base classroom teachers, as described in division (B)(1) of section 3317.012 of the Revised Code;

(2) State funds for academic intervention services under division (C)(1) of section 3317.012 and division (C) of section 3317.029 of the Revised Code;

(3) State funds for professional development under divisions (C)(2) and (4) of section 3317.012 and division (G) of section 3317.029 of the Revised Code;

(4) State funds for data based decision making under division (C)(3) of section 3317.012 of the Revised Code;

(5) The poverty-based assistance guarantee payment under division (B) of section 3317.029 of the Revised Code;

(6) State funds for all-day kindergarten under division (D) of section 3317.029 of the Revised Code;

(7) State funds for class-size reduction under division (E) of section 3317.029 of the Revised Code;

(8) State funds for services to limited English proficient students under division (F) of section 3317.029 of the Revised Code;

(9) State funds for dropout prevention under division (H) of section 3317.029 of the Revised Code;

(10) State funds for community outreach under division (I) of section 3317.029 of the Revised Code.

(B) The rule shall authorize the superintendent of public instruction to issue an order that does one or a combination of the following:

(1) Requires the school district to periodically report to the superintendent of public instruction on its spending of the state funds paid for each building blocks component described in divisions (A)(1) to (10) of this section;

(2) Requires the district to establish a separate account for each of the building blocks components described in divisions (A)(1) to (10) of this section to which the district shall credit the state funds paid for each;

(3) Directs the district's spending of any or all of the state funds paid for the components described in divisions (A)(1) to (10) of this section in accordance with the descriptions and requirements of sections 3317.012 and 3317.029 of the Revised Code.

(C) The rule shall specify situations in which the superintendent may issue an order and the types of orders the superintendent will issue for each of those situations. The rule, however, shall authorize the superintendent to issue orders in situations that are not enumerated or described in the rule.

(D) The board of education of each school district to which the superintendent of public instruction issues an order pursuant to the rule adopted under this section shall comply with that order.

(A) Unless otherwise specified,"school district" meanscity,local, and exempted village school districts.

(B)"Formula amount" means the base cost for the fiscal yearspecified in division (B)(4) of section 3317.012 of theRevised Code.

(C)"FTE basis" means acount of students based on full-timeequivalency, in accordancewith rules adopted by the department ofeducation pursuant tosection 3317.03 of the Revised Code. Inadopting its rules under thisdivision, the department shallprovide forcounting any student in category one, two, three,four, five, or sixspecialeducation ADM or in category one or twovocationaleducationADM in the same proportion the student iscounted informula ADM.

(D)~~(1)~~"FormulaADM" means, for a city, local, or exemptedvillage schooldistrict, the number reported pursuant todivision(A) of section 3317.03 of the Revised Code, and for a jointvocational school district, the number reported pursuant todivision(D) of ~~that~~ section 3317.03 of the Revised Code. Beginning in fiscal year 2006, for payments in which formula ADM is a factor, for the months of July through December, formula ADM means the number reported in October of that year, and for the months of January through June, formula ADM means the average of the numbers reported in the previous October and in February.

~~(2)~~(E) "Three-year average formula ADM" means the average offormula ADMs for thecurrent and preceding two fiscal years.However, as applicable infiscal years 1999 and 2000, thethree-year average for city, local, andexempted village schooldistricts shall be determined utilizing theFY 1997 ADM or FY 1998ADM in lieu offormula ADM for fiscal year 1997 or 1998. Infiscal years 2000and 2001, the three-year average for jointvocational school districts shallbe determined utilizing theaverage daily membership reported in fiscal years1998 and 1999under division (D) of section 3317.03 of the Revised Code in lieuofformula ADM for fiscal years 1998 and 1999.

(E)"FY 1997 ADM" or"FY 1998 ADM" means the schooldistrict'saverage daily membership reported for the applicablefiscal yearunder the version of division (A) of section 3317.03of theRevised Code in effect during thatfiscal year, adjusted asfollows:

~~(3) Minus three-fourths of theaverage daily membershipattending a joint vocational schooldistrict;~~

(4) Plus the average daily membership entitled undersection3313.64 or 3313.65 of the RevisedCode to attend school in thedistrict but receiving educational services inapproved units froman educationalservice center or another school district under acompact or acooperative education agreement, as determined by thedepartment;

(5) Minus the average daily membership receiving educationalservices from the district in approved units but entitled undersection3313.64 or 3313.65 of the Revised Code to attend school inanother schooldistrict, as determined by the department.

(F)(1)"Category onespecial education ADM" meanstheaveragedaily membership of handicapped children receivingspecialeducation services forthe handicapspecified indivision (A)ofsection 3317.013 of theRevised Code and reportedunderdivision(B)(5) or(D)(2)(b) of section 3317.03 of theRevisedCode.

(2)"Category twospecial education ADM" meansthe averagedaily membership of handicapped children receivingspecialeducation services for those handicaps specified indivision (B)of section 3317.013 of the Revised Code and reported underdivision (B)(6) or (D)(2)(c) of section 3317.03 ofthe RevisedCode.

(3)"Category three special education ADM" meansthe averagedaily membership of students receiving specialeducation servicesforthose handicaps specified in division (C) of section 3317.013of the Revised Code, andreportedunder division(B)(7) or(D)(2)(d) of section 3317.03 oftheRevised Code.

(4)"Category four specialeducation ADM" means the averagedaily membership of studentsreceiving special education servicesfor those handicaps specifiedin division (D) of section 3317.013of the Revised Code andreported under division (B)(8) or(D)(2)(e) of section 3317.03 ofthe Revised Code.

(5) "Category five special education ADM" means the averagedaily membership of students receiving special education servicesfor the handicap specified in division (E) of section 3317.013ofthe Revised Code and reported under division (B)(9) or(D)(2)(f)of section 3317.03 of the Revised Code.

(6) "Category six special education ADM" means the averagedaily membership of students receiving special education servicesfor the handicap specified in division (F) of section 3317.013ofthe Revised Code and reported under division (B)(10) or(D)(2)(g)of section 3317.03 of the Revised Code.

(7) "Category one vocational education ADM"means theaveragedaily membership of students receiving vocationaleducationservices described in division (A) of section 3317.014of theRevised Code and reported under division (B)(11) or(D)(2)(h)ofsection 3317.03 of the Revised Code.

(8)"Category two vocational education ADM" means theaveragedaily membership of students receiving vocationaleducationservicesdescribed in division (B) of section 3317.014of theRevised Code and reportedunder division (B)(12) or(D)(2)(i) ofsection3317.03 of the Revised Code.

Beginning in fiscal year 2006, for payments in which category one through six special education ADM or category one or two vocational education ADM is a factor, for the months of July through December, those terms mean the numbers as described in division (F)(1) through (8) of this section, respectively, reported in October of that year, and for the months of January through June, those terms mean the average of the numbers as described in division (F)(1) through (8) of this section, respectively, reported in the previous October and in February.

(G)"Handicapped preschool child" means ahandicapped child,as defined in section 3323.01 of theRevised Code, who is at leastage threebut is not of compulsory school age, as defined insection3321.01 of the Revised Code, and who is not currentlyenrolled inkindergarten.

(H)"County MR/DD board" means a countyboard of mentalretardation and developmentaldisabilities.

(I)"Recognized valuation" means theamount calculated for aschool district pursuant to section3317.015 of the Revised Code.

(J)"Transportation ADM" means the number ofchildrenreported under division(B)(13) of section 3317.03 of theRevisedCode.

(K)"Average efficient transportation use cost perstudent"means a statistical representation oftransportation costs ascalculated under division (D)(2) of section 3317.022 of theRevised Code.

(L)"Taxes charged and payable" means the taxes chargedandpayable against real and public utility property after makingthereduction required by section 319.301 of the Revised Code,plusthe taxes levied against tangible personal property.

(M)"Total taxable value" means the sumof the amountscertified for a city, local, exempted village, orjoint vocationalschool district under divisions (A)(1) and (2)of section 3317.021of the Revised Code.

(N)"Cost-of-doing-business factor" means the amountindicated in ~~this~~ division (N)(1) or (2) of this section for the county in which a city,local,exempted village, or joint vocational school district is located.If acity, local, or exempted village schooldistrict is locatedinmore than one county,the factor is the amount indicated forthecounty to which thedistrict is assigned by the statedepartmentof education. If a jointvocational school district islocated inmore than one county, the factor isthe amountindicated for thecounty in which the joint vocational school withthe greatestformula ADM operated by the district islocated.

(O)"Tax exempt value" of a school district means theamountcertified for a school district under division (A)(4) ofsection3317.021 of the Revised Code.

(P)"Potential value" of a school district means therecognized valuation of a school district plusthe taxexemptvalueofthe district.

(Q)"District median income" means the median Ohioadjustedgross income certified for a school district. On or before thefirstday of July of each year, the tax commissioner shall certifyto thedepartment of education for each city, exempted village,and local schooldistrict the median Ohio adjusted gross income ofthe residents ofthe school district determined on the basis oftax returns filed for thesecond preceding tax year by theresidents of the district.

(R)"Statewide median income" means the median districtmedianincome of all city, exempted village, and local schooldistricts in the state.

(S)"Income factor" for a city, exempted village, or localschooldistrict means the quotient obtained by dividing thatdistrict's median incomeby the statewide median income.

(1) The child requires the services of a doctor of medicineor osteopathic medicine at least once a week due to theinstability of the child's medical condition.

(3) The child is at risk of institutionalization in ahospital, skilled nursing facility, or intermediate care facilityfor the mentally retarded.

(U) A child may be identified as "other healthhandicapped-major" if the child's condition meets the definitionof "other health impaired" established in rules adopted by thestate board of education prior toJuly 1, 2001, and if either of the following apply:

(1) The child is identified as having a medical conditionthat is among those listed by the superintendent of publicinstruction as conditions where a substantial majority of casesfall within the definition of "medically fragile child." Thesuperintendent of public instruction shall issue an initial listno later than September 1, 2001.

(2) The child is determined by the superintendent of publicinstruction to be a medically fragile child. A school districtsuperintendent may petition the superintendent of publicinstruction for a determination that a child is a medicallyfragile child.

(V) A child may be identified as "other healthhandicapped-minor" if the child's condition meets the definitionof "other health impaired" established in rules adopted by thestate board of education prior toJuly 1, 2001, but the child's condition does not meeteither of theconditions specified in division (U)(1) or (2) ofthis section.

(W) "SF-3 payment" means the sum of the payments to a school district in a fiscal year under divisions (A), (C)(1), (C)(4), (D), (E), and (F) of section 3317.022, divisions (J), (P), and (R) of section 3317.024, and sections 3317.029, 3317.0216, 3317.0217, 3317.04, 3317.05, 3317.052, and 3317.053 of the Revised Code after making the adjustments required by sections 3313.981 and 3313.979 of the Revised Code, divisions (B), (C), (D), (E), (K), (L), (M), (N), and (O) of section 3317.023, and division (C) of section 3317.20 of the Revised Code.

(X) "Property exemption value" means zero in fiscal year 2006, and in fiscal year 2007 and each fiscal year thereafter, the amount certified for a school district under divisions (A)(6) and (7) of section 3317.021 of the Revised Code.

Sec. 3317.021. (A) On or before the first day of June ofeach year, the tax commissioner shall certify to the departmentofeducation the following information for each city, exemptedvillage, and local school district, and the information requiredby divisions (A)(1) and (2) of this section for each jointvocational school district, and it shall be used, along with theinformation certified under division (B) of this section, inmaking the computations for the district undersections3317.022and 3317.0217 orsection 3317.16 of the Revised Code:

(1) The taxable value of real and public utility realproperty in the school district subject to taxation in thepreceding tax year, by class and by county of location;

(2) The taxable value of tangible personal property,including public utility personal property, subject to taxationbythe district for the preceding tax year;

(3)(a) The total property tax rate and total taxes chargedand payable for the current expenses for the preceding tax yearand the total property tax rate and the total taxes charged andpayable to a joint vocational district for the preceding tax yearthat are limited to or to the extent apportioned to currentexpenses;

(b) The portion of the amount of taxes charged and payablereported for each city, local, and exempted village schooldistrict underdivision (A)(3)(a) of this section attributable toajoint vocational school district.

(4) The value of all real and public utility real propertyin the school district exempted from taxation minus both of thefollowing:

(a) The value of real and public utility real property inthe district owned by the United States government and usedexclusively for a public purpose;

(b) The value of real and public utility real property inthe district exempted from taxation under Chapter 725. or 1728. orsection3735.67, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632,5709.73, or 5709.78 ofthe Revised Code.

(5) The totalfederal adjusted gross income of theresidentsof the schooldistrict, based on tax returns filed bytheresidents of thedistrict, for the most recent year for whichthisinformation isavailable;

(6) The aggregate value of real property in the school district exempted from taxation pursuant to an ordinance adopted by the legislative authority of a municipal corporation under division (C) of section 5709.40 of the Revised Code or pursuant to a resolution adopted by a board of township trustees or board of county commissioners under division (C) of section 5709.73 or division (B) of section 5709.78 of the Revised Code, respectively, but not including payments in lieu of taxes provided under division (D)(1) of section 5709.40, division (D)(1) of section 5709.73, or division (C)(1) of section 5709.78 of the Revised Code, respectively, as indicated on the list of exempted property for the preceding tax year under section 5713.08 of the Revised Code and as if such property had been assessed for taxation that year, minus the following amounts:

(a) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to such ordinance or resolution, if the ordinance or resolution is adopted prior to January 1, 2006, and the legislative authority or board of township trustees or county commissioners, prior to January 1, 2006, executes a contract or agreement with a developer, whether for-profit or not-for-profit, with respect to the development of a project undertaken or to be undertaken and identified in the ordinance or resolution, and upon which parcels such project is being, or will be, undertaken;

(b) The product determined by multiplying (i) the aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to any such ordinance or resolution, minus the aggregate value of any improvement excluded pursuant to division (A)(6)(a) of this section, by (ii) a fraction, the numerator of which is the difference between (I) the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation pursuant to such ordinance or resolution had not been exempted from taxation and (II) the aggregate amount of payments and other compensation received in the preceding fiscal year by the school district pursuant to all agreements between the school district and a legislative authority or board of township trustees or county commissioners that were entered into in relation to such ordinance or resolution, and the denominator of which is the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation pursuant to such ordinance or resolution had not been exempted from taxation;

(c) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to such ordinance or resolution, if and to the extent that, on or before April 1, 2006, the fiscal officer of the municipal corporation that adopted the ordinance, or of the township or county that adopted the resolution, certifies and provides appropriate supporting documentation to the tax commissioner and the director of development that, based on hold-harmless provisions in any agreement between the school district and the legislative authority of the municipal corporation, board of township trustees, or board of county commissioners that was entered into on or before June 1, 2005, the ability or obligation of the municipal corporation, township, or county to repay bonds, notes, or other financial obligations issued or entered into prior to January 1, 2006, will be impaired, including obligations to or of any other body corporate and politic with whom the legislative authority of the municipal corporation or board of township trustees or county commissioners has entered into an agreement pertaining to the use of service payments derived from the improvements exempted;

(d) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation pursuant to such ordinance or resolution, if the ordinance or resolution is adopted prior to January 1, 2006, in a municipal corporation with a population that exceeds one hundred thousand, as shown by the most recent federal decennial census, that includes a major employment center and that is adjacent to historically distressed neighborhoods, if the legislative authority of the municipal corporation, the board of township trustees, or the board of county commissioners that exempted the property prepares an economic analysis that demonstrates that all taxes generated within the incentive district accruing to the state by reason of improvements constructed within the district during its existence exceed the amount the state pays the school district under section 3317.022 of the Revised Code attributable to such property exemption from the school district's recognized valuation. The analysis shall be submitted to and approved by the department of development prior to January 1, 2006, and the department shall not unreasonably withhold approval. Approval shall permit use of the aggregate value for the life of the incentive district as designated in the ordinance or resolution creating it.

(e) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation under such ordinance or resolution, if the ordinance or resolution is adopted prior to January 1, 2006, and if service payments have been pledged to be used for mixed-use riverfront entertainment development in any county with a population that exceeds six hundred thousand, as shown by the most recent federal decennial census;

(f) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation under such ordinance or resolution, if, prior to January 1, 2006, the legislative authority of a municipal corporation, board of township trustees, or board of county commissioners has pledged service payments for a designated transportation capacity project approved by the transportation review advisory council under Chapter 5512. of the Revised Code;

(g) The aggregate value of the improvements to parcels of real property in the school district exempted from taxation under such ordinance or resolution if the legislative authority of a municipal corporation, board of township trustees, or board of county commissioners have, by January 1, 2006, pledged proceeds for designated transportation improvement projects that involve federal funds for which the proceeds are used to meet a local share match requirement for such funding.

As used in division (A)(6) of this section, "project" has the same meaning as in section 5709.40 of the Revised Code.

(7) The aggregate value of real property in the school district for which an exemption from taxation is granted on or after January 1, 2006, under Chapter 725. or 1728., sections 3735.65 to 3735.70, or section 5709.62, 5709.63, 5709.632, 5709.84, or 5709.88 of the Revised Code, as indicated on the list of exempted property for the preceding tax year under section 5713.08 of the Revised Code and as if such property had been assessed for taxation that year, but not including compensation for tax revenue foregone pursuant to an agreement entered into on or after January 1, 2006, under section 5709.82 of the Revised Code, and minus the product determined by multiplying (a) the aggregate value of the real property in the school district exempted from taxation under any of the chapters or sections specified in this division, by (b) a fraction, the numerator of which is the difference between (i) the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation had not been exempted from taxation and (ii) the aggregate amount of payments and other compensation received in the preceding fiscal year by the school district pursuant to any agreements between the school district and the legislative authority of a political subdivision that acted under the authority of a chapter or statute specified in this division, that were entered into in relation to such exemption, and the denominator of which is the amount of anticipated revenue such school district would have received in the preceding fiscal year if the real property exempted from taxation had not been exempted.

(B) On or before the first day of May each year, the taxcommissioner shall certify to the department of education thetotal taxable real property value of railroads and, separately,the total taxable tangible personal property value of all publicutilities for the preceding tax year, by school district and bycounty of location.

(C) If a public utility has properly and timely filed apetition forreassessment under section 5727.47 of the RevisedCode with respect to an assessment issuedunder section 5727.23 ofthe Revised Code affecting taxable propertyapportioned by the taxcommissioner to a school district, the taxable value of publicutilitytangible personal propertyincluded in the certificationunder divisions (A)(2) and (B)ofthis section for the schooldistrict shall include only the amount of taxablevalue on thebasis ofwhich the public utility paid tax for the preceding yearas provided indivision (B)(1) or (2)of section 5727.47 of theRevised Code.

(D) If on the basis of the information certified underdivision (A) of this section, the department determines that anydistrict fails in any year to meet the qualification requirementspecified in division (A) of section 3317.01 of the Revised Code,the department shall immediately request the tax commissioner todetermine the extent to which any school district income taxlevied by the district under Chapter 5748. of the Revised Codeshall be included in meeting that requirement. Within five daysof receiving such a request from the department, the taxcommissioner shall make the determination required by thisdivision and report the quotient obtained under division(D)(3)ofthis section to the department. This quotient represents thenumber of mills that the department shall include in determiningwhether the district meets the qualification requirement ofdivision (A) of section 3317.01 of the Revised Code.

The tax commissioner shall make the determination requiredbythis division as follows:

(1) Multiply one mill times the total taxable value of thedistrict as determined in divisions (A)(1) and (2) of thissection;

(2) Estimate the total amount of tax liability for thecurrent tax year under taxes levied by Chapter 5748. of theRevised Code that are apportioned to current operating expensesofthe district;

(3) Divide the amount estimated under division (D)(2) ofthis section by the product obtained under division (D)(1)ofthissection.

(E) On or before June 1, 2006, and the first day of June of each year thereafter, the director of development shall certify to the department of education the total amount of payments received by each city, local, exempted village, or joint vocational school district during the preceding tax year pursuant to an agreement entered into under division (B) of section 5709.82 of the Revised Code in relation to exemptions from taxation granted pursuant to an ordinance adopted by the legislative authority of a municipal corporation under division (C)(1) of section 5709.40 of the Revised Code, or a resolution adopted by a board of township trustees or board of county commissioners under division (C)(1) of section 5709.73 or division (B)(1) of section 5709.78 of the Revised Code, respectively. On or before April 1, 2006, and the first day of April of each year thereafter, the treasurer of each city, local, exempted village, or joint vocational school district that has entered into such an agreement shall report to the director of development the total amount of such payments the district received during the preceding tax year pursuant to each such agreement. The state board of education, in accordance with sections 3319.31 and 3319.311 of the Revised Code, may suspend or revoke the license of a treasurer found to have willfully reported erroneous, inaccurate, or incomplete data under this division.

Sec. 3317.022. (A)~~(1)~~ The department of education shallcomputeand distribute state base cost funding toeach schooldistrict for the fiscal year ~~in accordance with thefollowingformula,making any adjustment required bydivision (A)(2) ofthis section and~~usingtheinformation obtainedunder section3317.021 of the RevisedCode inthe calendar year inwhich thefiscal year begins.

formula ADM) + the sum of the base funding supplements prescribed in divisions (C)(1) to (4) of section 3317.012 of the Revised Code] -

~~(.023 Xrecognized valuation)~~[.023 x (the sum of recognized valuation and property exemption (value)]

If the difference obtained is a negative number, thedistrict's computation shall be zero.

(a) The difference of (i) the district's fiscal year 2005 base cost payment under the version of division (A)(1) of this section in effect in fiscal year 2005, minus (ii) the amount computed for the district for the current fiscal year under current division (A)(1) of this section;

ADM) X current year formula ADM] minus the amount computed for the

If one of the amounts computed under division (A)(2)(a) or (b) of this section is a positive amount, the department shall pay the district that amount in addition to the amount calculated under division (A)(1) of this section. If both amounts are positive amounts, the department shall pay the district the lesser of the two amounts in addition to the amount calculated under division (A)(1) of this section.

(3)(a) For each school district for which the tax exemptvalue of the district equals or exceeds twenty-five per cent ofthe potential value of the district, the department of educationshall calculate the difference between the district's tax exemptvalue and twenty-five per cent of the district's potential value.

(b) For each school district to which division(A)~~(2)~~(3)(a) ofthis section applies, thedepartmentshall adjust the recognizedvaluation used inthecalculationunderdivision (A)(1) of thissection by subtracting from it the amountcalculated underdivision (A)~~(2)~~(3)(a) of this section.

(1) The "total special education weight" for a districtmeans the sum of the following amounts:

(a) The district's category one special education ADMmultiplied by themultiple specifiedin division(A) ofsection3317.013 of the Revised Code;

(b) The district's category twospecial educationADMmultiplied by themultiplespecifiedin division(B) of section3317.013 of the RevisedCode;

(c) The district's category three special education ADMmultiplied by the multiple specified in division (C) of section3317.013 of the Revised Code;

(d) The district's category four special education ADMmultiplied by the multiple specified in division (D) of section3317.013 of the Revised Code;

(e) The district's category five special education ADMmultiplied by the multiple specified in division (E) of section3317.013 of the Revised Code;

(f) The district's category six special education ADMmultiplied by the multiple specified in division (F) of section3317.013 of the Revised Code.

(2) "State share percentage" means the percentage calculatedfor adistrict as follows:

(a) Calculate the state base cost funding amount forthedistrict forthe fiscal year under division (A) of this section.Ifthe district would not receive any state base costfunding forthat yearunder that division, the district's state sharepercentage is zero.

(b) If the district would receive state base costfundingunder thatdivision, divide that amount by an amount equal to thefollowing:

formula ADM) + the sum of the base funding supplements prescribed in divisions (C)(1) to (4) of section 3317.012 of the Revised Code

(a) Child study, special education supervisors andcoordinators, speech and hearing services, adaptive physicaldevelopment services, occupational or physical therapy,teacherassistants for handicapped children whosehandicaps are describedin division(B) of section 3317.013 or division (F)(3) of section3317.02 of the Revised Code, behavioral intervention,interpreterservices, work study, nursing services, andspecializedintegrative services as those terms are defined by the department;

(b) Speech and language services provided to anystudentwith a handicap, including any student whose primary oronlyhandicap is a speech and language handicap;

(c) Any related service not specifically coveredby otherstate funds but specified in federal law, including butnotlimited to, audiology and school psychological services;

(d) Any service included in units funded underformerdivision (O)(1) ofsection 3317.023 of the Revised Code;

(e) Any other related service needed byhandicapped childrenin accordance with their individualizededucation plans.

(4) The "total vocational education weight" for a districtmeansthe sum of the following amounts:

(a) The district's category one vocational education ADMmultiplied by the multiple specified in division (A) of section3317.014 of the Revised Code;

(b) The district's category two vocational education ADMmultiplied by the multiple specified in division (B) of section3317.014 of the Revised Code.

(C)(1) The department shall compute and distribute statespecial education and related services additional weighted costsfundsto each school district in accordance with the followingformula:

(2) Theattributed local share of special education andrelated services additionalweighted costs equals:

(3)(a) The department shall compute andpay in accordancewiththis division additional state aid toschool districts forstudents incategories two through six specialeducation ADM. Ifa district'scosts for the fiscal year for astudent in itscategories two through sixspecialeducation ADMexceed thethreshold catastrophic cost for serving the student,thedistrictmay submit tothe superintendent of publicinstructiondocumentation, asprescribed by the superintendent, ofall itscosts for thatstudent. Upon submission of documentationfor astudent of thetype and in the manner prescribed, thedepartmentshall pay tothe district an amount equal to thesum of thefollowing:

(i) One-half of the district's costs for the student inexcess of the threshold catastrophic cost;

(ii) The product of one-half of thedistrict's costs for thestudent in excess ofthe threshold catastrophic cost multipliedbythe district's state share percentage.

(b) For purposes of division (C)(3)(a) of this section, thethreshold catastrophic cost for serving a student equals:

(i) For a student in the school district's category two,three, four, or five special education ADM, twenty-five thousanddollars in fiscal year 2002 ~~and~~, twenty-five thousand seven hundreddollars in fiscal years 2003, 2004, and 2005, and twenty-six thousand five hundred dollars in fiscal years 2006 and 2007;

(ii) For a student in the district's category six specialeducation ADM, thirty thousand dollars in fiscal year 2002 ~~and~~,thirty thousand eight hundred forty dollars in fiscal years 2003, 2004, and 2005, and thirty-one thousand eight hundred dollars in fiscal years 2006 and 2007.

(c) The district shall only reportunder division (C)(3)(a)of this section, and the department shall onlypayfor, thecostsof educational expenses and the relatedservices providedtothestudent in accordance with the student'sindividualizededucationprogram. Any legal fees, court costs, orother costsassociatedwith any cause of action relating to thestudent maynot beincluded in the amount.

(4)(a) As used in this division, the "personnelallowance"means thirtythousand dollarsin fiscalyears 2002, 2003, 2004, ~~and~~, 2005, 2006, and 2007.

(b) For the provision of speech language pathology services to students,including studentswho donot haveindividualized educationprograms prepared forthem underChapter3323. of the RevisedCode, and fornoother purpose, the department of education shallpay eachschool district anamount calculated under the followingformula:

(5) In any fiscal year, a school district shall spendforpurposes that the department designates as approved forspecialeducationand related servicesexpensesat least the amountcalculatedas follows:

The purposes approved by the department for special educationexpenses shall include, but shall not be limited to,identification of handicapped children, compliance with staterules governing the education of handicapped children andprescribing the continuum of program options for handicappedchildren, provision of speech language pathology services, and the portion of the school district's overalladministrative and overhead costs that are attributable to thedistrict's special education student population.

The department shall require school districts to report dataannually to allow for monitoring compliance with division (C)(5)of this section. The department shall annually report to thegovernor and the general assembly the amount of money spent byeach school district for special education and related services.

(6) In any fiscal year, a school district shall spend for the provision of speech language pathology services not less than the sum of the amount calculated under division (C)(1) of this section for the students in the district's category one special education ADM and the amount calculated under division (C)(4) of this section.

(a) "Daily bus miles per student" equals the number of busmilestraveled per day, divided by transportation base.

(b) "Transportation base" equals total student count asdefinedin section 3301.011 of the Revised Code, minus the numberofstudents enrolled in preschool handicapped units, plus thenumberof nonpublic school students included in transportationADM.

(d) "Transportation cost per student" equals total operatingcosts for board-owned or contractor-operated school buses dividedbytransportation base.

(2) Analysis of student transportation cost data hasresulted in afinding that an average efficient transportation usecost per studentcan be calculated by means of a regressionformula that has as its twoindependent variables the number ofdaily bus miles per studentand the transported studentpercentage. For fiscalyear 1998 transportation cost data, theaverage efficienttransportation use cost per student is expressedas follows:

The department of education shall annually determine theaverageefficient transportation use cost per student inaccordance with theprinciples stated in division (D)(2) of thissection, updating theintercept and regression coefficients of theregression formulamodeled in this division, based on an annualstatewide analysis ofeach school district's daily bus miles perstudent, transportedstudent percentage, and transportation costper student data. Thedepartment shall conduct the annual updateusing data, includingdaily bus miles per student, transportedstudent percentage, andtransportation cost per student data, fromthe prior fiscal year. The department shall notify the office ofbudget and management ofsuch update by the fifteenth day ofFebruary of each year.

(3) In addition to funds paid under divisions (A), (C), and(E) of thissection, eachdistrict with a transported studentpercentage greater thanzero shall receive a payment equal to apercentage of the product of the district's transportationbasefrom the prior fiscal year times the annuallyupdated averageefficient transportation use cost per student,times an inflationfactorof two and eight tenths per cent to account for theone-year differencebetween the data used in updating theformulaand calculating the payment and the year in which the payment ismade. The percentage shall be the following percentage of thatproductspecified for the corresponding fiscal year:

The payments made under division (D)(3) of this section eachyearshall be calculated based on all of the same prior year'sdata used to updatethe formula.

(4) In addition to funds paid under divisions (D)(2)and (3)of this section, a school district shall receive arough roadsubsidy ifboth of the following apply:

(a) Its county rough road percentage is higher than thestatewiderough road percentage, as those terms are defined indivision(D)(5) of this section;

(b) Its district student density islower than the statewidestudent density, as those terms are defined inthat division.

(5) The rough road subsidy paid to each district meetingthequalifications of division (D)(4) of this section shallbecalculated in accordance with the following formula:

(a) "Per rough mile subsidy" equals the amount calculated inaccordance with the following formula:

(i) "Maximum rough road percentage" means the highest countyrough road percentage in the state.

(ii) "County rough road percentage" equals the percentage ofthe mileage of state, municipal, county, and township roads thatis rated bythe department of transportation astype A, B, C, E2,or F in thecounty in which the school district is locatedor, ifthe district is located in more than one county, the countytowhich it is assigned for purposes of determining itscost-of-doing-business factor.

(iii) "Statewide rough road percentage" means the percentageofthe statewide total mileage of state, municipal, county, andtownship roadsthat is rated as type A, B, C, E2, orF by thedepartment of transportation.

(b) "Total rough road miles" means a school district's totalbusmiles traveled in one year times its county rough roadpercentage.

(i) "Minimum student density" means the lowest districtstudentdensity in the state.

(ii) "District student density" means a school district'stransportation base divided by the number of square miles in thedistrict.

(iii) "Statewide student density" means the sum of thetransportation bases for all school districts divided by the sumof the squaremiles in all school districts.

(6) In addition to funds paid under divisions(D)(2) to (5)of this section, each districtshall receive in accordance withrules adopted by the state board of educationa payment forstudents transported bymeans other than board-owned orcontractor-operated buses and whosetransportation is not fundedunder division (J) of section 3317.024of the Revised Code. Therules shall includeprovisions for school district reporting ofsuch students.

(E)(1) The department shall compute and distribute statevocationaleducation additional weighted costs funds to eachschool district inaccordance with the following formula:

In any fiscal year, a school district receiving funds underdivision (E)(1) of this section shall spend those funds only forthe purposes that the department designates as approved forvocationaleducation expenses. Vocational educational expenses approved by the department shall include only expenses connected to the delivery of career-technical programming to career-technical students. The department shall require the school district to report data annually so that the department may monitor the district's compliance with the requirements regarding the manner in which funding received under division (E)(1) of this section may be spent.

(2) The department shall compute for each schooldistrictstate funds for vocational education associated services inaccordance with the following formula:

In any fiscal year, a school district receiving funds underdivision (E)(2) of this section, or through a transfer of fundspursuant to division (L) of section 3317.023 of the Revised Code,shall spendthose funds only forthe purposes that the departmentdesignates as approved for vocationaleducation associatedservices expenses, which mayinclude such purposes asapprenticeship coordinators, coordinators for othervocationaleducation services, vocationalevaluation, and other purposesdesignated by the department. Thedepartment may deny paymentunder division (E)(2) of this section toany district that thedepartment determines is not operating those services oris usingfunds paid underdivision (E)(2) of this section, or through atransfer of fundspursuant to division (L) of section 3317.023 ofthe Revised Code, for otherpurposes.

(F) The actual local share inany fiscal year for thecombination of special education andrelated services additionalweighted costs funding calculatedunder division (C)(1) of thissection, transportation fundingcalculated under divisions (D)(2)and (3) of this section, andvocational education and associatedservices additional weightedcosts funding calculated underdivisions (E)(1) and (2) of thissection shall not exceed for anyschool district the product ofthree and three-tenths mills times the district'srecognized valuation. The department annually shall payeachschooldistrict as an excess cost supplement any amount bywhichthe sumof the district's attributed local shares for thatfundingexceedsthat product. For purposes of calculating theexcess costsupplement:

(1) The attributed local share for special education andrelated services additional weighted costs funding is the amountspecified in division (C)(2) of this section.

(2) The attributed local share of transportation fundingequals the difference of the total amount calculated for thedistrict using the formula developed under division (D)(2) of thissection minus the actual amount paid to the district afterapplying the percentage specified in division (D)(3) of thissection.

(3) The attributed local share of vocational education andassociated services additional weighted costs funding is theamount determined as follows:

Sec. 3317.023. (A) Notwithstanding section 3317.022 oftheRevised Code, the amounts required to be paid to a districtunderthis chapter shall be adjusted by the amountof the computationsmade under divisions (B) to~~(M)~~(O) of thissection.

(1)"Classroom teacher" means a licensed employee whoprovides direct instruction to pupils, excluding teachers fundedfrom money paid to the district from federal sources; educationalservice personnel; and vocational and special education teachers.

(2)"Educational service personnel" shall not include suchspecialists funded from money paid to the district from federalsources or assigned full-time to vocational or special educationstudents and classes and may only include those persons employedin the eight specialist areas in a pattern approved by thedepartment of education under guidelines established by the stateboard of education.

(3)"Annual salary" means the annual base salary stated inthe state minimum salary schedule for the performance of theteacher's regular teaching duties that the teacher earns forservices rendered for the first full week of October of thefiscalyear for which the adjustment is made under division(C) of thissection. It shall not include any salary payments forsupplemental teachers contracts.

(4)"Regular student population" means the formula ADMplusthe number of students reported as enrolled in the districtpursuantto division (A)(1) of section 3313.981 of the RevisedCode;minus the number of students reported underdivision (A)(2)of section 3317.03 of the RevisedCode; minus the FTE of studentsreported underdivision (B)(6), (7), (8), (9), (10), (11),or (12) ofthatsection who are enrolledin a vocational educationclass orreceiving special education;and minus twenty per cent of thestudentsenrolled concurrently in a jointvocational schooldistrict.

(5)"State share percentage"has the samemeaning as insection3317.022of the Revised Code.

(6)"VEPD" means a school district or group of schooldistrictsdesignated by the department of education as beingresponsible for theplanning for and provision of vocationaleducationservices to students within the district or group.

(7)"Lead district" means a school district, including ajointvocational school district, designated by the department asaVEPD, or designated to provide primary vocational educationleadership within a VEPD composed of a group of districts.

(B) If the district employs less than one full-timeequivalent classroom teacher for each twenty-five pupils intheregular student population in any school district, deduct the sumof the amounts obtainedfrom the following computations:

(1) Divide the number of the district's full-timeequivalentclassroom teachers employed by one twenty-fifth;

(C) If a positive amount, add one-half of the amountobtained by multiplying the number of full-time equivalentclassroom teachers by:

(1) The mean annual salary of all full-time equivalentclassroom teachers employed by the district at their respectivetraining and experience levels minus;

(2) The mean annual salary of all such teachers at theirrespective levels in all school districts receiving paymentsunderthis section.

The number of full-time equivalent classroom teachers usedinthis computation shall not exceed one twenty-fifth of thedistrict's regular student population. In calculatingthedistrict's mean salary underthis division, those full-timeequivalent classroom teachers withthe highest training levelshall be counted first, those with thenext highest training levelsecond, and so on, in descendingorder. Within the respectivetraining levels, teachers with thehighest years of service shallbe counted first, the next highestyears of service second, and soon, in descending order.

(D) This division does not apply to a school district thathas entered into an agreement under division (A) of section3313.42 of the Revised Code. Deduct the amount obtained from thefollowing computations if the district employs fewer than fivefull-time equivalent educational service personnel, includingelementary school art, music, and physical education teachers,counselors, librarians, visiting teachers, school social workers,and school nurses for each one thousand pupils in theregularstudent population:

(1) Divide the number of full-time equivalent educationalservice personnel employed by the district by fiveone-thousandths;

(E) If a local school district, or a city or exemptedvillage school district to which a governing board ofaneducational service center provides servicespursuant to section3313.843 of the RevisedCode, deduct the amount of the paymentrequired for thereimbursement of the governing board undersection 3317.11 of the RevisedCode.

(F)(1) If the district is required to pay to or entitledtoreceive tuition from another school district under division(C)(2)or (3) of section 3313.64 or section 3313.65 of theRevised Code,or if the superintendent of public instruction isrequired todetermine the correct amount of tuition and make adeduction orcredit under section 3317.08 of the Revised Code,deduct andcredit such amounts as provided in division (J) ofsection 3313.64or section 3317.08 of the Revised Code.

(2) For each child for whom the district is responsiblefortuition or payment under division (A)(1) of section 3317.082 orsection 3323.091 of the Revised Code, deductthe amount of tuitionor payment for which the district is responsible.

(G) If the district has been certified by thesuperintendentof public instruction under section 3313.90 of theRevised Code asnot in compliance with the requirements of thatsection, deduct anamount equal to ten per cent of the amountcomputed for thedistrict under section 3317.022 of the RevisedCode.

(H) If the district has received a loan from acommerciallending institution for which payments are made by thesuperintendent of public instruction pursuant to division (E)(3)of section 3313.483 of the Revised Code, deduct an amount equaltosuch payments.

(I)(1) If the district is a party to an agreement enteredinto under division (D), (E), or (F) of section 3311.06 ordivision (B) of section 3311.24 of the Revised Code and isobligated to make payments to another district under such anagreement, deduct an amount equal to such payments if thedistrictschool board notifies the department in writing that itwishes tohave such payments deducted.

(2) If the district is entitled to receive payments fromanother district that has notified the department to deduct suchpayments under division (I)(1) of this section, add theamount ofsuch payments.

(J) If the district is required to pay an amount of fundstoa cooperative education district pursuant to a provisiondescribedby division (B)(4) of section 3311.52 or division(B)(8) ofsection 3311.521 of the Revised Code, deduct suchamounts asprovided under that provision and credit those amountsto thecooperative education district for payment to the districtunderdivision (B)(1) of section 3317.19 of the Revised Code.

(K)(1) If a district is educating a student entitled toattendschool in another district pursuant to a shared educationcontract, compact,or cooperative education agreement other thanan agreement entered intopursuant to section 3313.842 of theRevised Code, credit tothat educating district on an FTE basis both of the following:

(i) The fiscal year 2005 formula amount times the fiscal year 2005 cost ofdoingbusiness factor of the school district where the student isentitled to attendschool pursuant to section 3313.64 or 3313.65of the RevisedCode;

(ii) The sum of (the current formula amount times the current cost-of-doing-business factor of the school district when the student is entitled to attend school pursuant to section 3313.64 or 3313.65 of the Revised Code) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

(b) An amount equal to the current formula amount times the statesharepercentage times any multiple applicable to the studentpursuant to section3317.013 or 3317.014 of the Revised Code.

(2) Deduct any amount credited pursuant to division (K)(1)ofthis section from amounts paid to the school district in whichthe student isentitled to attend school pursuant to section3313.64 or 3313.65 of theRevised Code.

(3) If the district is required by a shared educationcontract, compact,or cooperative education agreement to makepayments to an educational servicecenter, deduct the amounts frompayments to the district and add them to theamounts paid to theservice center pursuant to section 3317.11 of the RevisedCode.

(L)(1) If a district, including a joint vocational schooldistrict, is a lead district of a VEPD, credit to that districtthe amounts calculated for all the school districts within thatVEPD pursuant to division (E)(2) of section3317.022 of theRevised Code.

(2) Deduct from each appropriate district that is not a leaddistrict, the amount attributable to that district that iscredited to alead district under division (L)(1) of this section.

(M) If the department pays a joint vocational school district under division (G)(4) of section 3317.16 of the Revised Code for excess costs of providing special education and related services to a handicapped student, as calculated under division (G)(2) of that section, the department shall deduct the amount of that payment from the city, local, or exempted village school district that is responsible as specified in that section for the excess costs.

(N)(1) If the district reports an amount of excess cost for special education services for a child under division (C) of section 3323.14 of the Revised Code, the department shall pay that amount to the district.

(2) If the district reports an amount of excess cost for special education services for a child under division (C) of section 3323.14 of the Revised Code, the department shall deduct that amount from the district of residence of that child.

(O) If the department of job and family services presents to the department of education a payment request through an intrastate transfer voucher for the nonfederal share of reimbursements made to a school district for medicaid services provided by the district, the department of education shall pay the amount of that request to the department of job and family services and shall deduct the amount of that payment from the district.

Sec. 3317.024. In addition to the moneys paid to eligibleschool districts pursuant to section3317.022 of the Revised Code,moneysappropriated for the education programs in divisions (A) to(H), (J) to (L),(O), (P), and (R) of thissection shall bedistributed to school districts meetingthe requirements ofsection 3317.01 of the Revised Code;in the case of divisions (J)and (P) of thissection, to educational service centers asprovided in section3317.11 of the Revised Code; in the case ofdivisions (E),(M), and (N) of this section, tocounty MR/DDboards; in the case of division (R)of this section,to jointvocational school districts; in thecase of division (K) of thissection, tocooperative education school districts; and in thecase of division (Q) ofthis section, to the institutions definedunder section 3317.082 of theRevised Code providing elementary orsecondary education programs to childrenother than childrenreceiving special education under section 3323.091 of theRevisedCode. The following shall be distributed monthly, quarterly, orannually as may be determined by the state board of education:

(A) A per pupil amount to each school district thatestablishes a summer school remediation program that complieswithrules of the state board of education.

(B) An amount for each island school district and eachjointstate school district for the operation of each high schoolandeach elementary school maintained within such district andforcapital improvements for such schools. Such amounts shall bedetermined on the basis of standards adopted by the state boardofeducation.

(C) An amount for each school district operating classesforchildren of migrant workers who are unable to be inattendance inan Ohio school during the entire regular schoolyear. The amountsshall be determined on the basis of standardsadopted by the stateboard of education, except that paymentshall be made only forsubjects regularly offered by the schooldistrict providing theclasses.

(D) An amount for each school district with guidance,testing, and counseling programs approved by the state board ofeducation. The amount shall be determined on the basis ofstandards adopted by the state board of education.

(E) An amount for the emergency purchase of school busesasprovided for in section 3317.07 of the Revised Code;

(F) An amount for each school district required to paytuition for a child in an institution maintained by thedepartmentof youth services pursuant to section 3317.082 of theRevisedCode, provided the child wasnot included in the calculation ofthe district's average dailymembership for the preceding schoolyear.

(G) In fiscal year 2000 only, an amount to each schooldistrict for supplemental salary allowances for each licensedemployee exceptthose licensees serving as superintendents,assistant superintendents, principals, or assistant principals,whose term ofservice in any year is extended beyond the term ofservice of regularclassroom teachers, as described in section3301.0725 of the RevisedCode;

(H) An amount for adult basic literacy education for eachdistrict participating in programs approved by the state board ofeducation. The amount shall be determined on the basis ofstandards adopted by the state board of education.

(I) Notwithstanding section 3317.01 of the Revised Code, butonly untilJune 30, 1999,to each city, local, and exemptedvillage school district, anamount forconducting driver educationcourses at high schools for which thestate board of educationprescribes minimum standards and tojoint vocational andcooperative education schooldistricts and educational servicecenters, an amount for conductingdriver education courses topupils enrolled in a high school forwhich the state boardprescribes minimum standards. Nopayments shall be made underthis division after June 30, 1999.

(J) An amount for the approved cost of transporting~~developmentally handicapped~~ eligible pupils with disabilities attending a special education program approved by the department of education whom it is impossible orimpractical to transport by regular school bus in the course ofregular route transportation provided by the district or servicecenter. No district or service center is eligible to receive apayment under this division forthe cost of transporting any pupilwhom it transports by regularschool bus and who is included inthe district's transportationADM. The state board of educationshall establishstandards and guidelines for use by the departmentof educationin determining the approved cost of suchtransportation for eachdistrict or service center.

(K) An amount to each school district, including eachcooperative education school district, pursuant to section3313.81of the Revised Code to assist in providing free lunchesto needychildren and an amount to assist needy school districtsinpurchasing necessary equipment for food preparation. Theamountsshall be determined on the basis of rules adopted by thestateboard of education.

(L) An amount to each school district, for each pupilattending a chartered nonpublic elementary or high school withinthe district. The amount shall equal the amount appropriated forthe implementation of section 3317.06 of the Revised Code dividedby the average daily membership in grades kindergarten throughtwelve in nonpublic elementary and high schools within the stateas determined during the first full week in October of eachschoolyear.

(M) An amount for each county MR/DD board,distributed onthe basis of standards adopted by the state board of education,for the approved cost of transportation required for childrenattending special education programs operated by the county MR/DDboard under section 3323.09 of the Revised Code;

(N) An amount for each county MR/DD board,distributed onthe basis of standards adopted by the state board of education,for supportive home services for preschool children;

(O) An amount for each school district that establishes amentor teacher program that complies with rules of the stateboardof education. No school district shall be required to establishormaintain such a program in any year unless sufficient funds areappropriatedto cover the district's total costs for the program.

(P) An amount to each school district or educational servicecenter for the total number of gifted units approved pursuant tosection 3317.05 of the Revised Code. The amount for each suchunit shall be the sum of the minimum salary for the teacher oftheunit, calculated on the basis of the teacher's traininglevel andyears of experience pursuant tothe salary schedule prescribed inthe version of section 3317.13 of the Revised Codein effect priortoJuly 1, 2001,plus fifteenper cent ofthat minimum salaryamount, plus two thousand sixhundredseventy-eightdollars.

(Q) An amount to eachinstitution defined under section3317.082 of theRevised Code providing elementary orsecondaryeducation to children other than children receivingspecialeducation under section 3323.091 of theRevised Code. This amountfor anyinstitution in any fiscal year shall equal the total ofalltuition amounts required to be paid to the institution underdivision (A)(1) of section3317.082 of the Revised Code.

(R) A grant to each school district and joint vocationalschooldistrict that operates a "graduation, reality, anddual-role skills"(GRADS) program for pregnant and parentingstudents that isapproved by the department. The amount of thepayment shall be the district'sstate sharepercentage, as definedin section 3317.022 or 3317.16 of theRevised Code, times theGRADSpersonnel allowance times the full-time-equivalent number ofGRADSteachers approved by the department. The GRADS personnelallowance is $47,555 in fiscalyears 2004 ~~and~~, 2005, 2006, and 2007.

The state board of education or any other board ofeducationor governing board may provide for any resident of a districtoreducational service center territory anyeducational service forwhich funds are made available to theboard by the United Statesunder the authority of public law,whether such funds comedirectly or indirectly from the UnitedStates or any agency ordepartment thereof or through the stateor any agency, department,or political subdivision thereof.

Sec. 3317.026. (A) As used in this section,"refundedtaxes" means taxes charged and payable fromreal and tangiblepersonal property, including public utilityproperty, that havebeen found to have been overpaid as theresult of reductions inthe taxable value of such property and thathave been refunded,including any interest or penalty refundedwith those taxes. Iftaxes are refunded over a period of time pursuant todivision(B)(2), (3), or (4) of section 319.36 or division (C) ofsection5727.471 of the Revised Code,the total amount of taxes requiredto be refunded, excluding any interestaccruing after the day theundertaking is entered into, shall be considered tohave beenrefunded on the day the first portion of the overpayment is paidorcredited.

(B) Not later than the last day of February each year,eachcounty auditor shall certify to the tax commissioner, foreachschool district in the county, the amount of refunded taxesrefundedin the preceding calendar year and the reductions intaxable value thatresulted in those refunds, except forreductions in taxable value thatpreviously have been reported tothe tax commissioner on anabstract. If the tax commissionerdetermines thatthe amount of refunded taxes certified for aschool districtexceeds three per cent of the total taxes chargedand payable for currentexpenses of the school district for thecalendar year in which those taxeswere refunded, the taxcommissioner shall certify thereductions in taxable value thatresulted in those refunds on or before thefirst day of June tothe department of education. Upon receiving thecertification bythe tax commissioner, the department ofeducation shall reduce thetotal taxable value of the schooldistrict, as defined in section3317.02 of theRevised Code, by the total amount of thereductionsin taxable value that resulted in those refunds for the purpose ofcomputing the ~~state aid~~ SF-3 payment forthe school district for the currentfiscal year ~~under section3317.022 of the Revised Code~~. Theincrease in theamount of such aid resulting from the adjustmentrequired bythis section shall be paid to the school district onor beforethe ~~thirtieth~~ thirty-first day of ~~June~~ July ofthe ~~current~~ following fiscal year.

If an adjustment ismade under thisdivision intheamountof state aid paid to aschool district, the tax valuereductionsfrom which thatadjustment results shall not be used inrecomputing aid to aschool district under section 3317.027 of theRevised Code.

~~(D)~~(C) If a school district received a grant from thecatastrophic expenditures account pursuant to division (C) ofsection 3316.20 of the Revised Code on the basis of the samecircumstances for which an adjustment is made under this section,the amount of the adjustment shall be reduced and transferred inaccordance with division (C) of section 3316.20 of the RevisedCode.

(D) Not later than the first day of June each year, the taxcommissioner shall certify to the department of education foreachschool district the total of the increases in taxable valueabovethe amount of taxable value on which tax was paid, asprovided indivision (B)(1) or (2) of section 5727.47 of theRevised Code, asdetermined by the commissioner, and for which anotification wassent pursuant to section 5727.471 of the RevisedCode, in thepreceding calendar year.Upon receiving thecertification, thedepartment shall increasethe total taxablevalue, as defined insection 3317.02 of theRevised Code, of theschool district by thetotal amount of theincrease in taxablevalue certified by thecommissioner fortheschool district forthe purpose of computingthe schooldistrict's~~state aid~~ SF-3 payment for thefollowing fiscal year~~under sections3317.022 and 3317.0212 oftheRevised Code~~.

Sec. 3317.027. On or before the fifteenth day of May ofeachyear, the tax commissioner shall certify to the departmentofeducation:

(A) The amount by which applications filed under section5713.38 of the Revised Code or complaints filed under section5715.19 of the Revised Code resulted in a reduction in the secondpreceding year's taxable value in each school district in whichsuch a reduction occurred, and the amount by which such reductionreduced the district's taxes charged and payable for such year;and

(B) The taxes charged and payable for the second precedingtax year that were remitted under section 5713.081 of the RevisedCode and the taxable value against which such taxes were imposed.

Upon receipt of such certifications, the department shallrecompute the ~~state aid for such year under section3317.022 ofthe Revised Code~~ district's SF-3 payment and determine the amount ~~of aid~~ that the SF-3 paymentwould havebeen paid had the taxable value not been used in thecomputationmade under division (A)(1) of section 3317.021 of theRevised Codeandhad the taxes charged and payable not been includedin thecertification made under division (A)(3) of such section. Thedepartment shall ~~adjust~~ calculate the amount that the remainder of the fiscal year'spayments ~~so the district's total payments~~ should have been for the fiscal year~~equal~~ including the amount of the ~~recomputation~~ SF-3 payment as recomputed. The increase or decrease in the amount of aid resulting from the adjustment required under this section shall be paid to the school district on or before the thirty-first day of July of the following fiscal year.

If a school district received a grant from the catastrophicexpenditures account pursuant to division (C) of section 3316.20of the Revised Code on the basis of the same circumstances forwhich a recomputation is made under this section, the amount ofthe recomputation shall be reduced and transferred in accordancewith division (C) of section 3316.20 of the Revised Code.

Sec. 3317.028. (A) On or before the fifteenth day of May ineach calendar year prior to calendar year 2007, the tax commissioner shall determine for eachschool district whether the taxable value of all tangiblepersonalproperty, including utility tangible personal property,subject totaxation by the district in the preceding tax year wasless orgreater than the taxable value of such property duringthe secondpreceding tax year. If any such decrease exceeds fiveper cent ofthe district's tangible personal property taxablevalue includedin the total taxable value used in computing the district's~~state aidcomputation~~ SF-3 payment for the fiscal year that ends in thecurrent calendaryear, or if any such increase exceeds five percent of thedistrict's total taxable value used in computing the district's~~state aidcomputation~~ SF-3 payment for the fiscal year that ends in thecurrent calendaryear, the tax commissioner shall certify both of thefollowing tothedepartment of education:

(1) The taxable value of the tangible personal propertyincrease or decrease, including utility tangible personalpropertyincrease or decrease, which shall be considered a changeinvaluation;

(2) The decrease or increase in taxes charged and payableonsuch change in taxable value calculated in the same manner asindivision (A)(3) of section 3317.021 of the Revised Code.

(B) Notwithstanding division(A)of this section, whendetermining under that division incalendar year 2002 whether thetaxable value of tangiblepersonal property subject to taxation byeach school district inthe preceding tax year was less or greaterthan the taxablevalue of such property during the secondpreceding tax year, thetax commissioner shall exclude from thetaxable value for bothyears the tax value loss, as defined insection 5727.84 of the Revised Code On or before May 15, 2007, and the fifteenth day of May in each calendar year thereafter, the tax commissioner shall determine for each school district whether the taxable value of all utility tangible personal property subject to taxation by the district in the preceding tax year was less or greater than the taxable value of such property during the second preceding tax year. If any decrease exceeds five per cent of the district's tangible personal property taxable value included in the total taxable value used in the district's state aid computation for the fiscal year that ends in the current calendar year, or if any increase exceeds five per cent of the district's total taxable value used in the district's state aid computation for the fiscal year that ends in the current calendar year, the tax commissioner shall certify both of the following to the department of education:

(1) The taxable value of the utility tangible personal property increase or decrease, which shall be considered a change in valuation;

(2) The decrease or increase in taxes charged and payable on such change in taxable value calculated in the same manner as in division (A)(3) of section 3317.021 of the Revised Code.

(C) Upon receipt of ~~such~~ a certification specified in this section, the department ofeducation shall reduce or increase by the respective amountscertified, and the taxable value and the taxes charged and payablethat were used in computing the district's ~~state aid computation undersection 3317.022 of the Revised Code~~ SF-3 payment for the fiscalyear that endsin the current calendar year and shall recomputethe ~~state aid~~ SF-3 payment forsuch fiscal year. ~~During the last six monthsof the fiscal year,the~~ The department shall pay the district a sumequal to one-half ofthe recomputed payments in lieu of thepayments otherwise requiredunder ~~such sections~~ that section on or before the thirty-first day of July of the following fiscal year.

(D) If a school district received a grant from thecatastrophic expenditures account pursuant to division (C) ofsection 3316.20 of the Revised Code on the basis of the samecircumstances for which a recomputation is made under thissection, the amount of the recomputation shall be reduced andtransferred in accordance with division (C) of section 3316.20 ofthe Revised Code.

~~(a) In fiscal years prior to fiscal year 2004,~~ the quotientobtained bydividingthe five-year average number of childrenagesfive toseventeenresiding in the school district andliving in afamilyreceiving assistanceunder the Ohio works firstprogram oran antecedent program known as TANF or ADC, ascertified oradjustedundersection 3317.10of the Revised Code,by thedistrict'sthree-yearaverage formulaADM.

(b) Beginning in fiscal year 2004, theunduplicated number of children ages five to seventeen residing inthe school district and living in a family that has family incomenot exceeding the federal poverty guidelines and that receivesfamily assistance, as certified or adjusted under section 3317.10of the Revised Code, divided by the district's three-year averageformula ADM.

~~(c) The medical assistance program, including the healthystart program, established under Chapter 5111. of the RevisedCode;~~

(d) The children's health insurance program part Iestablished under section 5101.50 of the Revised Code or, prior tofiscal year 2000, an executive order issued under section 107.17of the Revised Code;

~~(e) The disability financial assistance program established underChapter 5115. of the Revised Code;~~

~~(f) The disability medical assistance program established under Chapter 5115. of the Revised Code.~~

~~(a) In fiscal years prior to fiscal year 2004,~~ the five-yearaverageof the total number ofchildren ages five to seventeenyearsresiding in the state andreceiving assistanceundertheOhio works first program or an antecedent program known asTANF orADC, divided bythesum of the three-year average formulaADMsforall schooldistricts in the state.

(b) Beginning in fiscal year 2004, the total unduplicated number of children ages five to seventeenresiding in the state and living in a family that has familyincome not exceeding the federal poverty guidelines and thatreceives family assistance, divided by the sum of the three-yearaverage formula ADMs for all school districts in the state.

~~(4)~~(3)"~~DPIA~~ Poverty index"means the quotient obtained by dividing theschool district's ~~DPIA~~ poverty percentageby the statewide ~~DPIA~~poverty percentage.

~~(5)"Federal povertyguidelines" has the same meaning as insection 5101.46 of theRevised Code.~~

~~(a) In fiscal years prior to fiscal year 2004,~~ thefive-yearaverage number of children ages five to seventeenresiding in theschool district and living in a family receivingassistance underthe Ohio works first program or an antecedentprogram known asTANF or ADC, as certified under section 3317.10of the RevisedCode;

~~(7)~~(5) "Kindergarten ADM" means the number ofstudents reportedunder section 3317.03 of the Revised Code as enrolled inkindergarten, excluding any kindergarten students reported under division (B)(3)(e) or (f) of section 3317.03 of the Revised Code.

~~(8)~~(6)"Kindergarten through third gradeADM" means theamountcalculated as follows:

(a) Multiply the kindergartenADM by the sum of one plus theall-daykindergarten percentage;

(c) Subtract from the sum calculated under division(A)(6)(b) of this section thenumber of special education studentsin grades kindergartenthrough three.

(9)"Statewide average teacher salary" meansforty-twothousandfour hundredsixty-ninedollars infiscal year2002,andforty-three thousandsix hundredfifty-eight dollarsinfiscalyear2003,whichincludes an amount for thevalue offringebenefits.

~~(10)~~ "Kindergarten through third grade ADM" shall not include any students reported under division (B)(3)(e) or (f) of section 3317.03 of the Revised Code.

(7)"All-day kindergarten" means akindergarten classthatisin session five days per week for notless than the samenumberofclock hours each day as for pupilsin grades one throughsix.

~~(11)~~(8)"All-day kindergarten percentage" means thepercentageofadistrict's actual total number of studentsenrolled inkindergarten who areenrolled in all-day kindergarten.

~~(a) In fiscal years prior to fiscal year 2004,~~the schoolbuildings in a district with percentages ofstudents in gradeskindergartenthrough threereceivingassistance under Ohio worksfirstat least as high as thedistrict-wide percentage ofstudentsreceivingsuchassistance.

(b) Beginning in fiscal year 2004, the school buildings inadistrict with percentages of students in grades kindergartenthrough three receiving family assistance at least as high as thedistrict-wide percentage of students receiving family assistance.

~~(c)~~ If, in any fiscal year, theinformationprovided by thedepartment ofjob and family servicesundersection 3317.10 of theRevisedCode is insufficient todeterminetheOhio works first ~~orfamily assistance~~ percentage in each building,"buildings withthehighest concentration of need" has themeaninggiven in rulesthatthe department of education shalladopt. Therules shallbase thedefinition of"buildings withthe highestconcentrationof need"on family income of students ingradeskindergartenthrough threein a manner that, to the extentpossiblewithavailable data,approximates the intent of thisdivisionanddivision ~~(G)~~(K) of thissection to designate buildingswhere theOhio works first ~~orfamily assistance~~percentage in those grades equals orexceeds thedistrict-wideOhio works first ~~orfamily assistance~~ percentage.

(B) In addition to theamounts required to be paid to aschool district under section3317.022 of the Revised Code, athe department of education shall compute and distribute to each school district ~~shallreceive~~ for poverty-based assistance the greater of the following:

(1) The amount thedistrict received in fiscalyear ~~1998~~ 2005 for disadvantaged pupil impact aid pursuant to ~~division (B) ofsection3317.023 of the Revised Code as itexisted at that time or the~~ Section 41.10 of Am. Sub. H.B. 95 of the 125th General Assembly, as amended, minus the amount deducted from the district under Section 16 of Am. Sub. S.B. 2 of the 125th General Assembly that year for payments to internet- and computer-based community schools;

(2) The sum of thecomputations made under divisions (C) to ~~(E)~~(I) ofthis section.

(C) A ~~supplemental~~ payment ~~that may be utilized~~ for ~~measuresrelated to safety and security and for remediation or similar~~ academic interventionprograms,if the district's poverty index is greater than or equal to 0.25, calculated as follows:

(1) If the DPIA indexof the school district is greater thanor equal tothirty-five-hundredths, but less than one, an amountobtained bymultiplying thedistrict's DPIA studentcount by twohundred thirtydollars;

(2) If the DPIA indexof the school district is greater thanor equal to one,an amount obtained by multiplying theDPIA indexby twohundred thirty dollars and multiplying that product by thedistrict's DPIA student count.

Except as otherwise provided in division (F) of this section,beginning with the school year that starts July 1, 2002, eachschool district annually shall use at least twenty per cent of thefunds calculated for the district under this division forintervention services required by section 3313.608 of the RevisedCode.

(1) If the district's poverty index is greater than or equal to 0.25, calculate the district's level one amount for large-group academic intervention for all students as follows:

(a) If the district's poverty index is greater than or equal to 0.25 but less than 0.75:

(i) "Large-group intervention units" equals the district's formula ADM divided by 20;

(ii) "Hourly rate" equals $20.00 in fiscal year 2006 and $20.40 in fiscal year 2007;

(iv) "Phase-in percentage" equals 0.60 in fiscal year 2006 and 1.00 in fiscal year 2007.

Where "large-group intervention units," "hourly rate," "level one hours," and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section.

(2) If the district's poverty index is greater than or equal to 0.75, calculate the district's level two amount for medium-group academic intervention for all students as follows:

(a) If the district's poverty index is greater than or equal to 0.75 but less than 1.50:

(i) "Medium group intervention units" equals the district's formula ADM divided by 15;

(ii) "Hourly rate," "level one hours," and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section.

(i) "Medium group intervention units" has the same meaning as in division (C)(2)(a)(i) of this section;

(ii) "Hourly rate" and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section;

(3) If the district's poverty index is greater than or equal to 1.50, calculate the district's level three amount for small-group academic intervention for impoverished students as follows:

(a) If the district's poverty index is greater than or equal to 1.50 but less than 2.50:

{level one hours + [level three hours X (poverty index – 1.50)]}

(i) "Small group intervention units" equals the quotient of (the district's poverty student count times 3) divided by 10;

(ii) "Hourly rate," "level one hours," and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section;

(i) "Small group intervention units" has the same meaning as in division (C)(3)(a)(i) of this section;

(ii) "Hourly rate" and "phase-in percentage" have the same meanings as in division (C)(1)(a) of this section;

Any district that receives funds under division (C)(2) or (3) of this section annually shall submit to the department of education by a date established by the department a plan describing how the district will deploy those funds. The deployment measures described in that plan shall comply with any applicable spending requirements prescribed in division (J)(6) of this section or with any order issued by the superintendent of public instruction under section 3317.017 of the Revised Code.

(D) A payment for all-day kindergarten if the~~DPIA~~ poverty index ofthe school district is greaterthan or equal to ~~one~~1.0 or if thedistrict's three-year average formula ADM exceededseventeenthousand five hundred~~, calculated~~. In addition, the department shall make a payment under this division to any school district that, in a prior fiscal year, qualified for this payment and provided all-day kindergarten, regardless of changes to the district's poverty index. The department shall calculate the payment under this division bymultiplying the all-daykindergarten percentageby thekindergarten ADM and multiplyingthat product by the formulaamount.

(E) A class-sizereduction payment based on calculating thenumber of newteachers necessary to achieve a lowerstudent-teacherratio, as follows:

(1) Determine or calculate a formula number of teachers peronethousand students based on the~~DPIA~~ poverty index of the schooldistrict as follows:

(a) If the ~~DPIA~~poverty index of the school district is less than~~six-tenths~~ 1.0, theformula number of teachers is ~~43.478~~ 50.0, which is thenumber ofteachers per one thousand students at a student-teacherratioof ~~twenty-three~~ twenty to one;

(b) If the ~~DPIA~~ poverty index of the schooldistrict is greater thanor equal to ~~six-tenths~~ 1.0, but less than~~two and one-half~~ 1.5, theformula number of teachers is calculated asfollows:

Where ~~43.478~~ 50.0 is the number of teachers per one thousandstudents at a student-teacher ratio of ~~twenty-three~~ twenty to one; ~~1.9~~0.5 isthe interval from a ~~DPIA~~poverty index of ~~six-tenths~~ 1.0 to a~~DPIA~~ poverty index of~~two andone-half~~ 1.5; and ~~23.188~~ 16.667 is the difference in the number ofteachers per one thousand students at a student-teacher ratio offifteen to one and the number of teachers per one thousandstudents at a student-teacher ratio of ~~twenty-three~~ twenty toone.

(c) If the ~~DPIA~~poverty index of the school district is greater thanor equal to~~two and one-half~~ 1.5, the formula number of teachers is66.667,which is the number of teachers per one thousand studentsat astudent-teacher ratio of fifteen to one.

(2) Multiply the formula number of teachers determined orcalculated indivision (E)(1) of this section by thekindergartenthrough third grade ADM for the district and divide thatproductby one thousand;

(a) Multiply the kindergarten through third grade ADMby~~43.478~~ 50.0, which is thenumber of teachers per one thousand studentsat a student-teacher ratio of~~twenty-three~~ twenty to one, and divide thatproduct by one thousand;

(b) Subtract the quotient obtained indivision (E)(3)(a) ofthis sectionfrom the product in division (E)(2) of this section.

(4) Multiply the greater of the difference obtained underdivision (E)(3) of this sectionor zero by the statewide averageteachers ~~salary~~ compensation. For this purpose, the "statewide average teacher compensation" is $53,680 in fiscal year 2006 and $54,941 in fiscal year 2007, which includes an amount for the value of fringe benefits.

(F) A payment for services to limited English proficient students, if the district's poverty index is greater than or equal to 1.0 and the proportion of its students who are limited English proficient, as reported in 2003 on its school district report issued under section 3302.03 of the Revised Code for the 2002-2003 school year, is greater than or equal to 2.0%, calculated as follows:

(1) If the district's poverty index is greater than or equal to 1.0, but less than 1.75, determine the amount per limited English proficient student as follows:

(2) If the district's poverty index is greater than or equal to 1.75, the amount per limited English proficient student equals:

(3) Multiply the per student amount determined for the district under division (F)(1) or (2) of this section by the number of the district's limited English proficient students, times a phase-in percentage of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007. For purposes of this calculation, the number of limited English proficient students for each district shall be the number determined by the department when it calculated the district's percentage of limited English students for its school district report card issued in 2003 for the 2002-2003 school year.

Not later than December 31, 2006, the department of education shall recommend to the general assembly and the director of budget and management a method of identifying the number of limited English proficient students for purposes of calculating payments under this division after fiscal year 2007.

(G) A payment for professional development of teachers, if the district's poverty index is greater than or equal to 1.0, calculated as follows:

(1) If the district's poverty index is greater than or equal to 1.0, but less than 1.75, determine the amount per teacher as follows:

(2) If the district's poverty index is greater than or equal to 1.75, the amount per teacher equals:

(4) Multiply the per teacher amount determined for the district under division (G)(1) or (2) of this section by the number of teachers determined under division (G)(3) of this section, times a phase-in percentage of 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(H) A payment for dropout prevention, if the district is a big eight school district as defined in section 3314.02 of the Revised Code, calculated as follows:

Where "phase-in percentage" equals 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(I) An amount for community outreach, if the district is an urban school district as defined in section 3314.02 of the Revised Code, calculated as follows:

Where "phase-in percentage" equals 0.40 in fiscal year 2006 and 0.70 in fiscal year 2007.

(J) This division applies only to school districts whose~~DPIA~~ poverty index is ~~one~~ 1.0 or greater.

(1) Each school district subject to this division shallfirst utilizefunds received under this section so that, whencombined with other fundsof the district, sufficient funds existto provide all-daykindergarten to at least the number of childrenin the district's all-daykindergarten percentage.

(2) ~~Up to an amount equal to the district's DPIA indexmultiplied byits DPIA student count multiplied bytwo hundredthirtydollars of the moneydistributed underthissection may beutilized~~ Each school district shall use its payment under division (F) of this section for one or more of the following purposes:

(a) To hire teachers for limited English proficient students or other personnel to provide intervention services for those students;

(c) To provide other services to assist those students in passing the third-grade reading achievement test, and to provide for those students the intervention services required by section 3313.608 of the Revised Code.

(3) Each school district shall use its payment under division (G) of this section for professional development of teachers or other licensed personnel providing educational services to students only in one or more of the following areas:

In addition, each district shall use the payment only to implement programs identified on a list of eligible professional development programs provided by the department of education. The department annually shall provide the list to each district receiving a payment under division (G) of this section. However, a district may apply to the department for a waiver to implement an alternative professional development program in one or more of the areas specified in divisions (J)(3)(a) to (c) of this section. If the department grants the waiver, the district may use its payment under division (G) of this section to implement the alternative program.

(4) Each big eight school district shall use its payment under division (H) of this section either for preventing at-risk students from dropping out of school, for safety and security measures described in division (J)(5)(b) of this section, for academic intervention services described in division (J)(6) of this section, or for a combination of those purposes. Not later than September 1, 2005, the department of education shall provide each big eight school district with a list of dropout prevention programs that it has determined are successful. The department subsequently may update the list. Each district that elects to use its payment under division (H) of this section for dropout prevention shall use the payment only to implement a dropout prevention program specified on the department's list. However, a district may apply to the department for a waiver to implement an alternative dropout prevention program. If the department grants the waiver, the district may use its payment under division (H) of this section to implement the alternative program.

(5) Each urban school district that has a poverty index greater than or equal to 1.0 shall use its payment under division (I) of this section for one or a combination of the following purposes:

(a) To hire or contract for community liaison officers, attendance or truant officers, or safety and security personnel;

(b) To implement programs designed to ensure that schools are free of drugs and violence and have a disciplined environment conducive to learning;

(6) Each school district with a poverty index greater than or equal to 1.0 shall use the amount of its payment under division (C) of this section, and may use any amount of its payment under division (H) or (I) of this section, for ~~one or both of thefollowing:~~

~~(a) Programs designed to ensure thatschools are free ofdrugs and violence and have a disciplinedenvironment conducive tolearning;~~

~~(b) Remediation~~ academic intervention services for students who havefailed or are indanger of failing any of the testsadministeredpursuant tosection 3301.0710 of the Revised Code.

Beginning with the school year that starts on July 1, 2002,each school district shall use at least twenty per cent of thefunds set aside for the purposes of divisions (F)(2)(a) and (b) ofthis section to provide, including intervention services required by section3313.608 of the Revised Code. No district shall spend any portion of its payment under division (C) of this section for any other purpose. Notwithstanding any provision to the contrary in Chapter 4117. of the Revised Code, no collective bargaining agreement entered into after the effective date of this amendment shall require use of the payment for any other purpose.

~~(3)~~(7) Except as otherwise required by division ~~(G)~~(K) orpermitted under division ~~(K)~~(O) of this section,all ~~other~~ remaining fundsdistributed under this section to districts ~~subject tothisdivision~~ with a poverty index greater than or equal to 1.0 shall be utilized for the purpose ofthe third gradeguarantee. The third grade guarantee consistsof increasing theamount ofinstructional attention received per pupil inkindergartenthrough third grade, either by reducing the ratio ofstudents toinstructional personnel or by increasing the amount ofinstruction and curriculum-related activities by extending thelength of the school day or the school year.

School districts may implement a reduction of the ratio ofstudents to instructional personnel through any or all of thefollowing methods:

(b) Employing full-time educational aides oreducationalparaprofessionals issued a permit or license undersection3319.088 of the Revised Code;

Districts may extend the school day either by increasingtheamount of time allocated for each class, increasing thenumber ofclasses provided per day, offering optional academic-relatedafter-school programs, providing curriculum-relatedextracurricular activities, or establishing tutoring orremedialservices for students who have demonstrated aneducational need.In accordance with section 3319.089 of the Revised Code, adistrictextending the school day pursuant to this division mayutilize a participantof the work experience program who has achild enrolled in a public school inthat district and who isfulfilling the work requirements of that program byvolunteeringor working in that public school. If the work experience programparticipant is compensated, the school district may use the fundsdistributedunder this section for all or part of thecompensation.

Districts may extend the school year either through addingregular days of instruction to the school calendar or byprovidingsummer programs.

~~(G)~~(K) Each district ~~subject to division(F) of this section~~shall not expend any fundsreceived under division (E) of thissection inany school buildings that are not buildings with thehighest concentration ofneed, unless there is a ratio ofinstructional personnel to students of nomore than fifteen to onein each kindergarten and first grade class in allbuildings withthe highest concentration of need. This division does not requirethat the funds used inbuildings with the highest concentration ofneed be spent solelyto reduce the ratio of instructionalpersonnel to students inkindergarten and first grade. A schooldistrict may spend thefunds in those buildings in any mannerpermitted by division~~(F)(3)~~(J)(7) of this section, but maynot spendthe money in other buildings unless the fifteen-to-one ratiorequired by this division is attained.

~~(H)~~(L)(1) By the first day of August of each fiscal year, eachschool district wishing to receive any funds under division (D)ofthis section shall submit to the department ofeducation anestimate of itsall-day kindergarten percentage. Each districtshall update its estimate throughout thefiscal year in the formand manner required by the department,and the department shalladjust payments under this section toreflect the updates.

(2) Annually by the end of December, the department ofeducation, utilizing data from the information systemestablishedunder section 3301.0714of the Revised Code and after consultationwith thelegislative office of education oversight, shalldetermine for each school district subject to division ~~(F)~~(J) ofthissection whether in the preceding fiscal year thedistrict's ratioof instructional personnel to students and its numberofkindergarten students receiving all-day kindergarten appearreasonable, given the amounts of money the districtreceived forthat fiscal year pursuant to divisions (D) and (E) ofthissection. If the department is unable to verify from thedataavailable that students are receiving reasonable amounts ofinstructional attention and all-day kindergarten, given the fundsthe districthas received under this sectionand that class-sizereductionfunds are being used in school buildings with thehighest concentration ofneed as required by division ~~(G)~~(K) of thissection, thedepartment shall conduct a more intensiveinvestigation toensure that funds have been expended as requiredby thissection. The department shall file an annual report ofits findings underthis division with the chairpersons of thecommittees in each house of thegeneral assembly dealing withfinance and education.

~~(I) Any~~ (M)(1) Each school district with a ~~DPIA~~ poverty index less than ~~one~~1.0 anda three-year average formula ADM exceeding seventeen thousand fivehundred shall first utilize funds receivedunderthis section sothat,when combined with other funds of thedistrict,sufficientfundsexist to provide all-day kindergartento at least thenumberofchildren in the district's all-daykindergartenpercentage.~~Sucha district~~

(2) Each school district with a poverty index less than 1.0 that receives a payment under division (C) of this section shall use its payment under that division in accordance with all requirements of division (J)(6) of this section.

(3) Each school district with a poverty index less than 1.0 that receives a payment under division (I) of this section shall use its payment under that division for one or a combination of the following purposes:

(a) To hire or contract for community liaison officers, attendance or truant officers, or safety and security personnel;

(b) To implement programs designed to ensure that schools are free of drugs and violence and have a disciplined environment conducive to learning;

(4) Each school district to which division (M)(1), (2), or (3) of this section applies shall expend ~~at leastseventy percent of~~ theremainingfunds received under thissection, andany otherdistrict with a~~DPIA~~poverty index less than~~one~~ 1.0 shall expend ~~atleastseventy per cent of~~all funds receivedunder thissection, for anyof the followingpurposes:

~~(1)~~(a) The purchase of technology forinstructional purposes for remediation;

~~(3)~~(c) Reduction of class sizes in grades kindergarten through three, as described in division (J)(7) of this section;

~~(5)~~(e) Dropout prevention programs approved by the department of education under division (J)(4) of this section;

~~(6)~~(f) Guaranteeing that all third graders areready toprogress to more advanced work;

~~(9)~~(i) Head start or, preschool, early childhood education, or early learning programs;

~~(10)~~(j) Reading improvement and remediation programs describedby thedepartment of education;

~~(11)~~(k) Programs designed to ensure that schoolsare free ofdrugs and violence and have a disciplinedenvironment conducive tolearning;

~~(12)~~(l) Furnishing, free of charge, materials used incoursesof instruction, except for the necessary textbooksor electronictextbooks required to be furnished without charge pursuant tosection 3329.06 of the Revised Code, to pupils living in familiesparticipating in Ohio works first in accordance with section3313.642 of the Revised Code;

~~(13)~~(m) School breakfasts provided pursuant to section3313.813of the Revised Code.

~~Each district shall submit to the department, in such formatand at suchtime as the department shall specify, a report on theprograms for which itexpended funds under this division.~~

~~(J)~~(N) If at any time the superintendent of public instructiondetermines that a school district receiving fundsunder division(D) of this section has enrolled less than the all-daykindergartenpercentage reported for that fiscal year, thesuperintendentshall withhold from the funds otherwise due thedistrict underthis section a proportional amount as determined bythe difference in thecertified all-daykindergarten percentageand the percentage actually enrolled inall-day kindergarten.

The superintendent shall also withhold an appropriate amountof fundsotherwise due a district for any other misuse of fundsnot in accordance withthis section.

~~(K)~~(O)(1) A district may use a portion of the funds calculatedforit under division (D) of this section to modify or purchaseclassroom space to provide all-day kindergarten, if both of thefollowingconditions are met:

(a) The district certifies to the department, in a manneracceptable to the department, that it has a shortage of space forproviding all-day kindergarten.

(b) The district provides all-day kindergarten to the numberof children inthe all-day kindergarten percentage it certifiedunder this section.

(2) A district may use a portion of the funds described indivision ~~(F)(3)~~(J)(7) of this section to modify or purchase classroomspace to enable it to further reduce class size in gradeskindergarten through two with a goal of attaining class sizes offifteen students per licensed teacher. To do so, the districtmust certify its need for additional space to the department, in amanner satisfactory to the department.

(1) "Total taxes charged and payable for currentexpenses"means the sum of the taxes charged and payable ascertified underdivision (A)(3)(a) of section 3317.021 of theRevised Code lessany amounts reported under division (A)(3)(b) of thatsection,andthe tax distribution for the preceding year under any schooldistrict income tax levied by the district pursuant toChapter5748. of the Revised Code to the extent therevenue from theincome tax is allocated or apportioned to currentexpenses.

(2)"Charge-off amount" means ~~the product obtained bymultiplying~~ two and three-tenths per cent multipled by (the sum of recognizedvaluation and property exemption value).

(3) Until fiscal year 2003, the "actual local share ofspecial education,transportation, and vocational educationfunding" for any schooldistrict means the sum of the district'sattributed local sharesdescribed in divisions (F)(1) to (3) ofsection 3317.022 of theRevised Code. Beginning in fiscal year2003, the "actual local share of special education,transportation, and vocational education funding" means that summinus the amount of any excess cost supplementpayment calculatedfor the district under division (F) ofsection 3317.022 of theRevised Code.

(4) "Current expense revenues from the tangible property tax replacement fund" means payments received from the school district tangible property tax replacement fund or the general revenue fund under section 5751.21 of the Revised Code for fixed-rate levies for current expenses and for fixed-sum levies for current expenses, including school district emergency levies under sections 5705.194 to 5705.197 of the Revised Code.

(B) Upon receiving the certifications under section 3317.021ofthe Revised Code, the department of education shall determinefor each city,local, and exempted village school district whetherthedistrict's charge-off amount is greater than the sum of the district'stotaltaxes charged and payable for currentexpenses and current expense revenues from the tangible property tax replacement fund, and if itthe charge-off amount is greater,shall pay the district the amount of thedifference. Apayment shall not bemade to any school districtfor which thecomputation under division(A) of section 3317.022of the RevisedCodeequals zero.

(C)(1) If a district's charge-off amount is equal to orgreaterthan the sum of its totaltaxes charged andpayable for currentexpenses and current expense revenues from the tangible property tax replacement fund, thedepartment shall, in addition tothe paymentrequired underdivision (B) of this section, pay thedistrict theamount ofits actual local share of specialeducation,transportation, and vocationaleducationfunding.

(2) If a district's charge-off amount is less than the sum of itstotaltaxes charged and payable for current expenses and current expense revenues from the tangible property tax replacement fund,the departmentshall pay the district any amount bywhich itsactual local shareofspecial education,transportation, and vocational educationfunding exceeds the sum of itstotaltaxes charged and payable for currentexpenses and current expense revenues from the tangible property tax replacement fund minus itscharge-off amount.

(D) If a school district that received a payment under division (B) or (C) of this section in the prior fiscal year is ineligible for payment under those divisions in the current fiscal year, the department shall determine if the ineligibility is the result of a property tax or income tax levy approved by the district's voters to take effect in tax year 2005 or thereafter. If the department determines that is the case, and calculates that the levy causing the ineligibility exceeded by at least one mill the equivalent millage of the prior year's payment under divisions (B) and (C) of this section, the department shall make a payment to the district for the first three years that the district loses eligibility for payment under divisions (B) and (C) of this section, as follows:

(1) In the first year of ineligibility, the department shall pay the district seventy-five per cent of the amount it last paid the district under divisions (B) and (C) of this section.

(2) In the second year of ineligibility, the department shall pay the district fifty per cent of the amount it last paid the district under those divisions.

(3) In the third year of ineligibility, the department shall pay the district twenty-five per cent of the amount it last paid the district under those divisions.

(E) A district that receives payment under division (D) of this section and subsequently qualifies for payment under division (B) or (C) of this section is ineligible for future payments under division (D) of this section.

Sec. 3317.0217. The department of education shall annually compute and pay state parity aid to school districts, as follows:

(A) Calculate the local wealth per pupil of each schooldistrict, which equals the following sum:

(1) Two-thirds times the quotient of (a) the district'srecognized valuation divided by (b) its formula ADM; plus

(2) One-third times the quotient of (a) the average of thetotal federal adjusted gross income of the school district'sresidents for the three years most recently reported under section3317.021 of the Revised Code divided by (b) its formula ADM.

(B) Rank all school districts in order of local wealth perpupil, from the district with the lowest local wealth per pupil tothe district with the highest local wealth per pupil.

(1) "Payment percentage," for purposes of division (C) ofthis section, equals 20% infiscal year 2002, 40%in fiscal year2003, 58% in fiscal year 2004, 76% in fiscal year2005, and 100%afterfiscal year 2005.

(2) Nine and one-half mills (0.0095) is the generalassembly'sdetermination of the average number of effectiveoperating millsthat districts in the seventieth to ninetiethpercentiles ofvaluations per pupil collected in fiscal year 2001above therevenues required to finance their attributed localshares of thecalculated cost of an adequate education. This wasdetermined by(a) adding the district revenues from operatingproperty taxlevies and income tax levies, (b) subtracting fromthat total thesum of (i) twenty-three mills times adjustedrecognized valuationplus (ii) the attributed local shares ofspecial education,transportation, and vocational educationfunding as described indivisions (F)(1) to (3) of section3317.022 of the Revised Code,and (c) converting the result to aneffective operating propertytax rate Seven and one-half mills (0.0075) is an adjustment to the original parity aid standard of nine and one-half mills, to account for the general assembly's policy decision to phase-out use of the cost-of-doing-business factor in the base cost formula.

~~(3)~~(2) The "threshold local wealth per pupil" is the localwealth per pupil of the school district with thefour-hundred-ninetieth lowest local wealth per pupil.

If the result of the calculation for a school district underdivision (C) of this section is less than zero, the district's perpupil parity aid shall be zero.

(D) Compute the per pupil alternative parity aid for eachschool district that has a combination of an income factor of 1.0or less, a ~~DPIA~~ poverty index of 1.0 or greater, and a fiscal year 2005cost-of-doing-business factor of 1.0375 or greater, in accordancewith the following formula:

(1) "~~DPIA~~ Poverty index" has the same meaning as in section 3317.029of the Revised Code.

(2) "Payment percentage," for purposes of division (D) ofthis section, equals 50% in fiscal year 2002 and 100% after fiscalyear 2002.

(E) Pay each district that has a combination of an incomefactor of 1.0 or less, a ~~DPIA~~ poverty index of 1.0 or greater, and a fiscal year 2005cost-of-doing-business factor of 1.0375 or greater, the greater ofthe following:

(1) The product of the district's per pupil parity aidcalculated under division (C) of this section times its net formulaADM;

(2) The product of its per pupil alternative parity aidcalculated under division (D) of this section times its net formulaADM.

(F) Pay every other district the product of its per pupilparity aid calculated under division (C) of this section times its netformula ADM.

(G) As used in divisions (E) and (F) of this section, "net formula ADM" means formula ADM minus the number of internet- and computer-based community school students and scholarship students reported under divisions (B)(3)(e) and (f) of section 3317.03 of the Revised Code.

Sec. 3317.03. Notwithstanding divisions(A)(1), (B)(1), and(C) of this section, anystudent enrolled in kindergarten morethan half time shall be reported asone-half student under thissection.

(A) The superintendent of each city and exemptedvillageschool district and of each educational service center shall,forthe schools under the superintendent's supervision,certify to thestate board ofeducation on or before the fifteenth day of Octoberin each year forthe first full school week in October the formulaADM~~,which~~. Beginning in fiscal year 2006, each superintendent also shall certify to the state board, for the schools under the superintendent's supervision, the formula ADM for the third full week in February. If a school under the superintendent's supervision is closed for one or more days during that week due to hazardous weather conditions or other circumstances described in the first paragraph of division (B) of section 3317.01 of the Revised Code, the superintendent may apply to the superintendent of public instruction for a waiver, under which the superintendent of public instruction may exempt the district superintendent from certifying the formula ADM for that school for that week and specify an alternate week for certifying the formula ADM of that school.

The formula ADM shall consist of the average daily membership duringsuch week of thesum of the following:

(1) On an FTE basis, the number ofstudents in gradeskindergarten through twelve receiving any educationalservicesfrom the district,except that the following categories ofstudents shall not beincluded in the determination:

(b) Adjacent or other district students enrolled in thedistrict under an open enrollment policy pursuant to section3313.98 of the Revised Code;

(c) Students receiving services in the district pursuant toa compact,cooperative education agreement, or a contract, but whoare entitled to attendschool in another district pursuant tosection 3313.64 or 3313.65 of theRevised Code;

(d) Students for whom tuition ispayable pursuant tosections 3317.081 and 3323.141 of theRevised Code.

(2) On an FTE basis, the number ofstudents entitled toattend school in the district pursuant tosection 3313.64 or3313.65 of theRevised Code, but receiving educationalservices ingrades kindergarten through twelve from one or more of thefollowing entities:

(a) A community school pursuant to Chapter3314. of theRevised Code, including any participation in a collegepursuant toChapter 3365. of the Revised Code while enrolled in such communityschool;

(b) An alternative school pursuant to sections 3313.974 to3313.979 of the Revised Code as described in division(I)(2)(a) or(b) of this section;

(c) A college pursuant to Chapter 3365. of the Revised Code,exceptwhen the student is enrolled in the college while alsoenrolled in a communityschool pursuant to Chapter 3314. of theRevised Code;

(d) An adjacent or otherschool district under an openenrollment policy adopted pursuantto section 3313.98 of theRevised Code;

(f) Another school districtunder a cooperative educationagreement, compact, or contract;

(g) A chartered nonpublic school with a scholarship paid under section 3310.08 of the Revised Code.

(3) Twenty per cent of the number of students enrolled in a jointvocational school district or under a vocational educationcompact,excluding any studentsentitled to attend school in thedistrict under section 3313.64 or3313.65 of the Revised Code whoare enrolled in anotherschool district through an open enrollmentpolicy as reported underdivision (A)(2)(d) of this section andthen enroll ina joint vocational school district or under avocational educationcompact;

(4) The number of handicapped children, other thanhandicapped preschool children, entitled to attend school in thedistrict pursuant to section 3313.64 or 3313.65 of theRevisedCode who are placed with acounty MR/DD board, minus thenumber ofsuch children placed with a countyMR/DD board in fiscal year1998. If this calculation produces a negative number, thenumberreported under division(A)(4) of this section shall bezero.

(5) In the case of the report submitted for the third full week in February, or the alternative week if specified by the superintendent of public instruction, the number of students reported under division (A)(1) or (2) of this section for the first full week of the preceding October but who since that week have received high school diplomas.

(B) To enable thedepartment of education to obtain the dataneeded to completethe calculation of payments pursuant to thischapter, inaddition to the formula ADM, eachsuperintendent shallreport separately the following studentcounts for the same week for which formula ADM is certified:

(1) The total average daily membership in regular dayclasses included in the report under division (A)(1) or (2) ofthissection for kindergarten, and each of grades one throughtwelve inschools under thesuperintendent's supervision;

(2) The number of all handicappedpreschoolchildrenenrolled as of the first day ofDecember in classes in thedistrict that are eligible for approval under division (B) of section 3317.05 of the RevisedCodeand the number of those classes, which shall be reported notlater than thefifteenth day of December, in accordance with rulesadopted underthat section;

(3) The number of children entitled to attend school inthedistrict pursuant to section 3313.64 or 3313.65 of theRevisedCode who are ~~participating~~:

(a) Participating in apilot project scholarship programestablished under sections3313.974 to 3313.979 of the RevisedCode as described in division(I)(2)(a) or (b) of this section~~,are enrolled~~;

(b) Enrolled in a college under Chapter3365. of the Revised Code,except when thestudent is enrolled in the college while alsoenrolled in a community schoolpursuant to Chapter 3314. of theRevised Code~~, are enrolled~~;

(d) Enrolled in acommunity schoolestablished under Chapter 3314.of the RevisedCode that is not an internet- or computer-based community school as defined in section 3314.02 of the Revised Code, including any participation in a collegepursuant to Chapter3365. of the Revised Code while enrolled in such communityschool~~,or are participating~~;

(e) Enrolled in an internet- or computer-based community school, as defined in section 3314.02 of the Revised Code, including any participation in a college pursuant to Chapter 3365. of the Revised Code while enrolled in the school;

(f) Enrolled in a chartered nonpublic school with a scholarship paid under section 3310.08 of the Revised Code;

(g) Participating in aprogram operated by a county MR/DD boardor a stateinstitution;

(5) The average daily membership ofhandicapped childrenreported under division (A)(1) or (2) of thissection receivingspecial educationservicesfor the category onehandicap describedin division (A)of section 3317.013 of theRevised Code;

(6) The average daily membership of handicapped childrenreported underdivision (A)(1) or (2) of this section receivingspecialeducation servicesfor category twohandicaps describedin division(B)of section 3317.013 of theRevised Code;

(7) The average daily membership of handicapped childrenreported underdivision (A)(1) or (2) of this sectionreceivingspecial education services forcategory three handicapsdescribedin division(C)ofsection3317.013 of the Revised Code;

(8)The average dailymembership of handicapped childrenreported under division (A)(1)or (2) of this section receivingspecial education services forcategory four handicaps describedin division (D) of section3317.013 of the Revised Code;

(9) The average daily membership of handicapped childrenreported under division (A)(1) or (2) of this section receivingspecial education services for the category five handicapdescribedin division (E) of section 3317.013 of the Revised Code;

(10) The average daily membership of handicapped childrenreported under division (A)(1) or (2) of this section receivingspecial education services for category six handicaps described indivision (F) of section 3317.013 of the Revised Code;

(11) The average daily membership of pupils reported underdivision(A)(1) or (2) of this section enrolled in category onevocational education programs or classes, described in division(A) of section 3317.014 of the Revised Code, operated by theschooldistrict or by another district, other than a jointvocational schooldistrict, or by an educational service center, excluding any student reported under division (B)(3)(e) of this section as enrolled in an internet- or computer-based community school, notwithstanding division (C) of section 3317.02 of the Revised Code and division (C)(3) of this section;

(12) The average daily membership of pupils reportedunderdivision(A)(1) or (2) of this section enrolled in categorytwovocationaleducation programs or services, described indivision(B) of section3317.014 of the Revised Code, operated bytheschool district or another school district,other than a jointvocational school district, or by an educational servicecenter, excluding any student reported under division (B)(3)(e) of this section as enrolled in an internet- or computer-based community school, notwithstanding division (C) of section 3317.02 of the Revised Code and division (C)(3) of this section;

(13) The average number ofchildren transported by theschool district on board-owned or contractor-owned and -operatedbuses,reported in accordance with rules adopted bythe departmentof education;

(14)(a) The number of children, other thanhandicappedpreschool children, the district placed with acounty MR/DD boardin fiscalyear 1998;

(b) The number of handicapped children, other thanhandicapped preschool children, placed with a countyMR/DD boardin the currentfiscal year to receive specialeducation servicesfor the category one handicapdescribed indivision (A) ofsection3317.013of the RevisedCode;

(c) The number of handicapped children, other thanhandicapped preschool children, placed with a countyMR/DD boardin the currentfiscal year to receive specialeducation servicesfor category two handicapsdescribed indivision (B) ofsection3317.013of the RevisedCode;

(d) The number of handicapped children, other thanhandicapped preschool children, placed with a countyMR/DD boardin the currentfiscal year to receive specialeducationservicesfor category three handicaps described indivision(C) of section3317.013 of the RevisedCode;

(e) The number of handicapped children, other thanhandicapped preschool children, placed with a county MR/DD boardin the current fiscal year to receive special education servicesfor category four handicaps described in division (D) of section3317.013 of the Revised Code;

(f) The number of handicapped children, other thanhandicapped preschool children, placed with a county MR/DD boardin the current fiscal year to receive special education servicesfor the category five handicap described in division (E) ofsection3317.013 of the Revised Code;

(g) The number of handicapped children, other thanhandicapped preschool children, placed with a county MR/DD boardin the current fiscal year to receive special education servicesfor category six handicaps described in division (F) of section3317.013 of the Revised Code.

(C)(1) Except as otherwise provided in this section forkindergarten students, the average daily membership in divisions(B)(1) to(12) of this section shall be basedupon the numberoffull-time equivalent students. The state board ofeducationshalladopt rules defining full-time equivalent students and fordetermining the average daily membership therefromfor thepurposes of divisions (A), (B), and(D) of this section.

(2) A student enrolled in a community school establishedunder Chapter 3314. of the Revised Code shall be counted in theformula ADM and, if applicable, the category one, two, three,four, five, or sixspecial education ADM of the school district inwhich the studentis entitled to attend school under section3313.64 or 3313.65 ofthe Revised Code for the same proportion ofthe school year thatthe student is counted in the enrollment ofthe community schoolfor purposes of section 3314.08 of theRevised Code.

(3) No childshall becounted as more than a total of onechild in thesum ofthe average daily memberships of aschooldistrict under division(A), divisions(B)(1) to(12), or division(D) of thissection,except as follows:

(a) A child with a handicap described in section 3317.013ofthe Revised Code may becounted both in formulaADM and incategory one, two, three,four, five, or sixspecial educationADM and, if applicable, incategory one or twovocationaleducationADM. As provided indivision (C) of section3317.02 ofthe Revised Code,such a childshall be counted incategory one,two, three, four, five, orsix special educationADM in the sameproportion that the child iscounted in formulaADM.

(b) A child enrolled in vocational education programs orclasses describedin section3317.014 of the Revised Codemay becounted both in formula ADM andcategory one or twovocationaleducation ADM and, if applicable, incategory one, two,three,four, five, or sixspecial education ADM. Such a childshall becounted in categoryone or two vocational education ADMinthesame proportion as thepercentage of time that the childspends inthevocationaleducation programs or classes.

(4) Based on the information reportedunder this section,thedepartment of education shall determine the totalstudentcount,as defined in section 3301.011 of the Revised Code, foreachschool district.

(D)(1) The superintendent of each joint vocational schooldistrictshall certify tothe superintendent of public instructionon or before the fifteenthday of October in each year for thefirst full school week inOctober the formula ADM~~, which~~. Beginning in fiscal year 2006, each superintendent also shall certify to the state superintendent the formula ADM for the third full week in February. If a school operated by the joint vocational school district is closed for one or more days during that week due to hazardous weather conditions or other circumstances described in the first paragraph of division (B) of section 3317.01 of the Revised Code, the superintendent may apply to the superintendent of public instruction for a waiver, under which the superintendent of public instruction may exempt the district superintendent from certifying the formula ADM for that school for that week and specify an alternate week for certifying the formula ADM of that school.

The formula ADM, exceptas otherwise provided in this division, shallconsist oftheaverage dailymembership during such week, on anFTE basis, of thenumber ofstudents receiving any educationalservices from thedistrict,including students enrolled in acommunity school established under Chapter 3314. of the RevisedCode who are attending the joint vocational district under anagreement between the district board of education and thegoverning authority of the community school and are entitled toattend school in a city, local, or exempted village schooldistrict whose territory is part of the territory of the jointvocational district. In the case of the report submitted for the third week in February, or the alternative week if specified by the superintendent of public instruction, the superintendent of the joint vocational school district may include the number of students reported under division (D)(1) of this section for the first full week of the preceding October but who since that week have received high school diplomas.

The following categoriesof students shall not beincludedin the determinationmade under division (D)(1) of this section:

(b) Adjacent or other district joint vocational studentsenrolledin the district under an open enrollment policy pursuantto section3313.98 of the Revised Code;

(c) Students receiving services in the district pursuanttoa compact, cooperative education agreement, or a contract, but whoareentitled to attend school in a city, local, orexemptedvillage school district whose territory is not part oftheterritory of the joint vocational district;

(d) Students for whom tuition is payable pursuant tosections3317.081 and 3323.141 of the Revised Code.

(2) To enable the department of education to obtain the dataneeded to complete the calculation of payments pursuant to thischapter,in addition to the formula ADM, each superintendent shallreportseparately the average daily membership included in thereport under division(D)(1) of this section for each of thefollowing categories ofstudents for the same week for which formula ADM is certified:

(a) Students enrolled in each grade included in the jointvocational district schools;

(b) Handicapped children receiving specialeducationservicesfor the category one handicap described indivision (A)of section 3317.013of the Revised Code;

(c) Handicapped children receiving specialeducationservicesfor the category two handicaps described indivision (B)of section 3317.013of the Revised Code;

(d) Handicapped childrenreceiving special educationservices for category threehandicapsdescribed in division(C)of section3317.013 of theRevised Code;

(e)Handicapped childrenreceiving special education servicesfor category four handicapsdescribed in division (D) of section3317.013 of the Revised Code;

(f) Handicapped children receiving special educationservices for the category five handicap described in division (E)ofsection 3317.013 of the Revised Code;

(g) Handicapped children receiving special educationservices for category six handicaps described in division (F) ofsection 3317.013 of the Revised Code;

(h) Students receiving category one vocational educationservices, described in division (A) of section 3317.014 of theRevised Code;

(i) Students receiving category two vocational educationservices, described in division (B) of section 3317.014 of theRevised Code.

The superintendent of each joint vocational school districtshall also indicate the city, local, orexempted village schooldistrict in which eachjoint vocational district pupil is entitledto attend schoolpursuant to section 3313.64 or 3313.65 of theRevised Code.

(E) In each school of each city, local, exempted village,joint vocational, and cooperative education school district thereshall be maintained a record of school membership, which recordshall accurately show, for each day the school is in session, theactual membership enrolled in regular day classes. For thepurpose of determining average daily membership, the membershipfigure of any school shall not include any pupils except thosepupils described by division (A) of this section. Therecord ofmembership for each school shall be maintained in suchmanner thatno pupil shall be counted as in membership prior tothe actualdate of entry in the school and also in suchmanner that where forany cause a pupil permanently withdrawsfrom the school that pupilshall not be counted as inmembership from andafter the date ofsuch withdrawal. There shall not be includedin the membership ofany school any of the following:

(3) Any pupil who was enrolled in the schoolsof thedistrict during the previous school year when tests wereadministered under section 3301.0711 of the Revised Code but didnot take one or more of the tests required by that section andwasnot excused pursuant to division (C)(1) or (3) of that section;

(4) Any pupil who has attained the age of twenty-two years,except for veterans of the armed services whose attendance wasinterrupted before completing the recognized twelve-year courseofthe public schools by reason of induction or enlistment in thearmed forces and who apply for reenrollment in the public schoolsystem of their residence not later than four years aftertermination of war or their honorable discharge.

If, however, any veteran described bydivision (E)(4) ofthissection elects toenroll in special courses organized forveteransfor whom tuition is paid under the provisions of federallaws, orotherwise, that veteran shall not be included inaveragedailymembership.

Notwithstanding division (E)(3) of this section, themembership of any school may include a pupil who did not take atest required by section 3301.0711 of the Revised Code if thesuperintendent of public instruction grants a waiver from therequirement to take the test to the specific pupil. Thesuperintendent may grant such a waiver only for good cause inaccordance with rules adopted by the state board of education.

Except as provided indivisions (B)(2)and (F) ofthis section,theaverage daily membership figure of any local,city,exemptedvillage, or joint vocational school district shallbedeterminedby dividingthe figure representing the sum of thenumber ofpupils enrolled during eachday the school of attendanceisactually open forinstruction during the ~~first full school~~ week~~inOctober~~ for which the formula ADM is being certified by the total numberof days the school was actuallyopenfor instruction during thatweek. For purposes of statefunding,"enrolled" persons are onlythose pupils who areattending school,those who have attendedschool during thecurrent school year andare absent forauthorized reasons, andthose handicapped childrencurrentlyreceiving home instruction.

The average daily membership figure of any cooperativeeducation schooldistrict shall be determined in accordance withrules adopted by the stateboard of education.

(F)(1) If the formula ADM for the first full schoolweek inFebruary is atleast three per cent greater than that certifiedfor the firstfull school week in the preceding October, thesuperintendent ofschools of any city, exempted village, or jointvocational school districtor educational service center shallcertify such increase to thesuperintendent of publicinstruction.Such certification shall be submitted no later thanthe fifteenthday of February. For the balance of the fiscalyear, beginningwith the February payments, the superintendent ofpublicinstruction shall use the increased formulaADM in calculating orrecalculating the amounts to be allocated inaccordance with section 3317.022 or 3317.16 ofthe RevisedCode. In no eventshall the superintendent use an increasedmembership certified tothe superintendent after thefifteenth day of February. Division (F)(1) of this section does not apply after fiscal year 2005.

(2) If on the first school day of April the total numberofclasses or units for handicappedpreschool children thatareeligible for approval under division (B) of section 3317.05of theRevised Code exceeds the number of unitsthat have been approvedfor the year under that division, thesuperintendent of schools ofany city, exempted village,or cooperative education schooldistrict or educationalservice center shall make thecertifications required by thissection for that day. If thedepartment determines additional units can beapproved for thefiscal year within any limitations set forth inthe actsappropriating moneys for the funding of such units,the department shall approve additional units for the fiscal year onthebasis of such average daily membership. For each unit soapproved, the department shall pay an amountcomputedin the manner prescribed in section3317.052 or 3317.19andsection3317.053 of the Revised Code.

(3) If a student attending a community school under Chapter3314. of the Revised Code is not included in the formula ADMcertified ~~for the first full school week of October~~ for the schooldistrict in which the student is entitled to attend school undersection 3313.64 or 3313.65 of the Revised Code, the department ofeducation shall adjust the formula ADM of that school district toinclude the community school student in accordance with division(C)(2) of this section, and shall recalculate the schooldistrict's payments under this chapter for the entire fiscal yearon the basis of that adjusted formula ADM. This requirementapplies regardless of whether the student was enrolled, as definedin division (E) of this section, in the community school duringthe first full school week in October.

(G)(1)(a) The superintendent of an institution operating aspecial education program pursuant to section 3323.091 of theRevised Code shall, for the programs under suchsuperintendent'ssupervision,certify to the state board of education ~~the~~, in the manner prescribed by the superintendent of public instruction, both of the following:

(i) The average daily membership of all handicapped children other than handicapped preschool children receiving services at the institution for each category of handicap described in divisions (A) to (F) of section 3317.013 of the Revised Code;

(ii) The averagedailymembership of all handicapped preschool children in classes orprogramsapproved annually by the department of education~~, in themanner prescribedby the superintendent of public instruction~~ for unit funding under section 3317.05 of the Revised Code.

(b) The superintendent of aninstitution with vocationaleducation units approved underdivision (A) of section 3317.05 ofthe RevisedCode shall, for the units underthe superintendent'ssupervision, certify to the state board ofeducation the averagedaily membership in those units, in themanner prescribed by thesuperintendent of publicinstruction.

(2) The superintendent of each county MR/DD board thatmaintains special education classesunder section 3317.20 of theRevised Code or units approved pursuant to section3317.05 of the Revised Code shalldo both ofthe following:

(a) Certify to the state board, in themanner prescribed bythe board, the average dailymembership in classesunder section3317.20 ofthe Revised Code for eachschool district that hasplaced childrenin the classes;

(b) Certify to the state board, in the manner prescribed bytheboard, the number of all handicapped preschool childrenenrolled as ofthe first day of December in classes eligible forapprovalunder division (B) ofsection 3317.05 of the RevisedCode, and the number of thoseclasses.

(3)(a) If on the first school day ofApril the number ofclasses or units maintained for handicapped preschoolchildren bythe county MR/DD boardthat are eligible for approval underdivision (B) of section 3317.05 of theRevised Code is greaterthan the number of units approved for the year underthatdivision,the superintendent shall make thecertification requiredby this section for that day.

(b) If the department determines that additional classesorunits can beapproved for the fiscal year within anylimitationsset forth inthe acts appropriating moneys for thefunding of theclasses and units described in division (G)(3)(a) of thissection, the department shall approve andfundadditional units for thefiscal year on the basis of such averagedaily membership. Foreachunit so approved, the department shall pay anamountcomputed in the manner prescribed insections3317.052 and3317.053 of the RevisedCode.

(H) Except as provided in division (I)of this section, whenany city, local, or exempted village schooldistrict providesinstruction for a nonresident pupil whoseattendance isunauthorized attendance as defined in section3327.06 of theRevised Code, that pupil's membership shall not beincluded inthat district's membership figure used in thecalculation of thatdistrict's formulaADM or included in the determination of anyunit approved forthe district under section 3317.05 of theRevised Code. Thereporting official shall report separately theaverage dailymembership of all pupils whose attendance in thedistrict isunauthorized attendance, and the membership of eachsuch pupilshall be credited to the school district in which thepupil isentitled to attend school under division (B) of section3313.64or section 3313.65 of the Revised Code as determined bythedepartment of education.

(I)(1) A city, local, exempted village, or joint vocationalschooldistrict admittinga scholarship studentof a pilot projectdistrict pursuant to division (C) of section 3313.976of theRevised Code may count such student in its average dailymembership.

(2) In any year for which funds are appropriated for pilotprojectscholarship programs, a school district implementing astate-sponsored pilotproject scholarship program that yearpursuant tosections 3313.974to3313.979 of the RevisedCodemay count in average daily membership:

(a) All children residing in the district and utilizing ascholarship to attend kindergarten in any alternative school, asdefined insection 3313.974 of the Revised Code;

(b) All children who were enrolled in the district in thepreceding year who are utilizing a scholarship to attend any suchalternativeschool.

(J) The superintendent of each cooperative education schooldistrict shall certify to the superintendent of publicinstruction, in amanner prescribed by the state board ofeducation, the applicable averagedaily memberships for allstudents in the cooperative education district, alsoindicatingthe city, local, or exempted village district where each pupil isentitled to attend school under section 3313.64 or 3313.65 of theRevisedCode.

Sec. 3317.031. A membership record shall be kept by gradelevel in each city, local, exempted village, joint vocational,and cooperative education school district and such a record shallbe kept by grade level in each educationalservice center thatprovides academic instruction to pupils, classes for handicappedpupils, or any other direct instructional services to pupils. Such membership record shall show the following information foreach pupil enrolled: Name, date of birth, name of parent, dateentered school, date withdrawn from school, days present, daysabsent, and the number of days school was open for instructionwhile the pupil was enrolled. At the end of the school year thismembership record shall show the total days present, the totaldays absent, and the total days due for all pupils in each grade. Such membership record shall show the pupils that are transportedto and from school and it shall also show the pupils that aretransported living within one mile of the school attended. Thismembership record shall also show any other informationprescribed by the state board of education.

This membership record shall be kept intact for at leastfive years and shall be made available to the state board ofeducation or its representative in making an audit of the averagedaily membership or the transportation of the district or educationalservice center. Themembership records of local school districts shall be filed atthe close of each school year in the office of theeducational service center superintendent.

The state board of education may withhold any money due anyschool district or educational service center under sections 3317.022to ~~3317.0212~~ 3317.0211, 3317.11,3317.16, 3317.17, or 3317.19 of the Revised Code until it hassatisfactory evidence that the board of education or educational servicecenter governing board has fullycomplied with all of the provisions of this section.

Nothing in this section shall require any person torelease, or to permit access to, public school records inviolation of section 3319.321 of the Revised Code.

Sec. 3317.035. The auditor of state may conduct annual audits of the information certified under section 3317.03 of the Revised Code by a number of school districts determined by the auditor of state and selected at random.

Sec. 3317.05. (A) For the purpose of calculatingpaymentsunder sections3317.052 and3317.053 of theRevised Code, the department ofeducation shall determine foreach institution, bythe last day ofJanuary of each year andbased on informationcertified undersection 3317.03 of theRevised Code, the number ofvocational education units orfractions of unitsapproved by the department on the basis ofstandardsand rules adopted by thestate board of education. As used in thisdivision,"institution" means aninstitution operated by adepartment specified insection 3323.091of the Revised Code andthat providesvocational educationprograms under the supervisionof thedivision of vocationaleducation of the department that meet the standardsand rules for these programs,includinglicensure of professionalstaff involved in theprograms, asestablished by the state board.

(B) For the purpose of calculating paymentsunder sections3317.052, 3317.053, 3317.11, and 3317.19 oftheRevised Code, the department shalldetermine, basedoninformation certified undersection 3317.03 of the RevisedCode,the following by the last dayof January of eachyear for eacheducationalservice center, foreach school district, includingeachcooperative education schooldistrict, for each institutioneligible for payment under section3323.091 ofthe Revised Code,and for each county MR/DD board:thenumber ofclasses operatedby the school district, servicecenter,institution, orcountyMR/DD board forhandicappedpreschoolchildren, or fractionthereof, including in the case ofa districtor service centerthat is a funding agent, classestaught by alicensed teacheremployed by that district or servicecenter undersection3313.841of the Revised Code, approvedannually by the department on thebasis of standards and rulesadopted bythestate board.

(C) For the purpose of calculating payments under sections3317.052, 3317.053, 3317.11, and 3317.19 oftheRevisedCode, the department shall determine, based oninformation certifiedundersection 3317.03 of the RevisedCode,the following by the lastdayof January of each year foreachschool district, including eachcooperative educationschooldistrict, for each institutioneligible for payment undersection3323.091 of the Revised Code,and for each countyMR/DD board:thenumber ofpreschoolhandicapped ~~related services~~ units for~~childstudy,occupational,physical, or speech and hearingtherapy,specialeducationsupervisors, and special educationcoordinators~~related services, as defined in section 3323.01 of the Revised Code, approved annuallyby the department on the basisofstandards andrules adopted bythe state board.

(D) For the purpose ofcalculating payments under sections3317.052 and3317.053 of theRevised Code, the department shalldetermine, based oninformation certified undersection 3317.03 ofthe RevisedCode, the following by the last dayof January of eachyear foreach institutioneligible for paymentunder section3323.091 of theRevised Code:

(1) The number of classes operated by an institution forhandicappedchildren other than handicappedpreschool children, orfractionthereof, approved annually by the department onthebasis of standards and rules adopted by thestate board;

(2) The number of related services units for childrenotherthan handicapped preschool children for child study,occupational,physical, or speech and hearing therapy, specialeducationsupervisors, and special education coordinatorsapproved annuallyby the department on the basisof standards and rules adopted bythe state board.

~~(E)~~ All of the arithmetical calculations made under thissection shall be carried to the second decimal place. The totalnumber of units for school districts, servicecenters, andinstitutionsapproved annually under thissection shall not exceedthe number of units included in the estimate ofcost for these units andappropriations madefor them by thegeneral assembly.

In the case of units described in division(D)(1) of thissection operated by institutionseligiblefor payment undersection 3323.091 of the Revised Code,the department shallapprove only units for personswho are under agetwenty-two on thefirst day of the academicyear, but not lessthan six years of ageon the thirtieth day ofSeptember of thatyear, except that such aunit mayinclude one or more children whoare under six years ofage onthe thirtieth day of September ifsuch children have beenadmitted to the unit pursuant to rules ofthe stateboard. In thecase of handicapped preschool unitsdescribed in division (B) ofthis section,the department shall approve onlypreschool unitsfor childrenwho are under age six on the thirtieth day of September of the academic year, or on the first day of August of the academic year if the school district in which the child is enrolled has adopted a resolution under division (A)(3) of section 3321.01 of the Revised Code, but not lessthan age three onthe firstday of December of the academicyear, except thatsuch a unit mayinclude one or more children whoare under agethree or are agesix or over on the ~~first day of December~~ applicable date, as reported under division (B)(2) or (G)(2)(b) of section 3317.03 of the Revised Code, ifsuch childrenhave been admitted to the unit pursuantto rules ofthe stateboard. The number of units forcounty MR/DDboardsand institutions eligiblefor payment undersection 3323.091 ofthe Revised Code approvedunder this sectionshall not exceed the number thatcan be fundedwith appropriationsmade for such purposes by the generalassembly.

No unit shall be approved under divisions (B)~~to (D)~~ and (C) of thissection unless a plan has been submitted andapproved underChapter 3323. of the Revised Code.

~~(F)~~(E) The department shall approveunits or fractions thereoffor gifted children on the basis of standards andrules adopted bythe state board.

Sec. 3317.052. As used in this section,"institution"meansan institution operated by a departmentspecified in division (A) of section3323.091of the Revised Code.

(A)(1) The department of educationshall pay each schooldistrict, educational service center,institution eligible forpayment under section 3323.091 of the Revised Code,or countyMR/DD board an amount for the total ofall classroom units forhandicapped preschool children approved under division(B) ofsection 3317.05 of the Revised Code. For each unit, the amountshall be the sum of the minimum salary for the teacher of theunit, calculated on the basis of the teacher's training levelandyears of experience pursuant tothe salary schedule prescribed inthe version of section 3317.13 of theRevisedCodein effect priorto~~the effective date of this amendment~~July 1, 2001, plus fifteen per cent ofthat minimum salaryamount, andeight thousand twenty-threedollars.

(2) The department shall pay each school district,educational servicecenter, institution eligible for payment undersection 3323.091 of the RevisedCode, or county MR/DD board anamount for the totalof all related services units for handicappedpreschool children approvedunder division (C) of section 3317.05of the Revised Code. For each suchunit, the amount shall be thesumof the minimum salary for the teacher of the unit calculatedon the basis ofthe teacher's training level and years ofexperience pursuant tothe salary schedule prescribed in theversion of section3317.13 of the Revised Code in effect prior to~~the effective date of this amendment~~July 1, 2001,fifteen per cent of thatminimum salary amount,and two thousandone hundred thirty-twodollars.

(B) If a school district, educational service center, orcounty MR/DD board has had additionalhandicapped preschoolunitsapprovedfor the year under division(F)(2) or (G)(3) ofsection3317.03 of the Revised Code, the district, educationalservicecenter, or board shall receive an additional amount duringthelast half of the fiscal year. For each district, center, orboard, theadditional amount for each unit shall equal fifty percent of theamounts computed for the unit in the manner prescribedbydivision (A) of this section and division (C) of section3317.053 of the Revised Code.

(C)(1) The department shall pay each institution eligiblefor payment undersection 3323.091 of the Revised Code orcountyMR/DD board an amount for thetotal of all special education unitsapproved under division(D)(1) of section 3317.05 of the RevisedCode. The amount for each unitshall be the sum of the minimumsalary for the teacher of theunit, calculated on the basis of theteacher's training leveland years of experience pursuant tothesalary schedule prescribed in the version ofsection 3317.13 ofthe RevisedCodein effect prior tothe effective date of thisamendment, plus fifteen per cent ofthatminimum salary amount,and eight thousand twenty-threedollars.

(2) The department shall pay each institution eligible forpayment undersection 3323.091 of the Revised Code an amountforthe total of all related services unitsapproved under division(D)(2) of section 3317.05 of the RevisedCode. The amount foreach unitshall be the sum of the minimumsalary for the teacherof theunit, calculated on the basis of theteacher's trainingleveland years of experience pursuant tothesalary scheduleprescribed in the version ofsection 3317.13 oftheRevised Codein effect prior tothe effective date of thisamendment, plusfifteen per cent ofthatminimum salary amount,and two thousandone hundredthirty-twodollars.

~~(D)~~ The department shall pay each institution approved forvocational education unitsunder division (A) of section 3317.05of the RevisedCode an amount for the total ofall the unitsapproved under that division. The amount for eachunit shall bethe sum of the minimum salary for the teacher ofthe unit,calculated on the basis of the teacher's traininglevel and yearsof experience pursuant tothe salary schedule prescribed in theversion of section 3317.13 of theRevised Codein effect prior to ~~the effective date of this amendment~~ July 1, 2001,plus fifteen per cent ofthat minimum salary amount, and ninethousand five hundred tendollars. Each institution that receives units funds under this division annually shall report to the department on the delivery of services and the performance of students and any other information required by the department to evaluate the institution's vocational education program.

(1)"State share percentage" has the same meaning as insection 3317.022of the Revised Code.

(2)"Dollar amount" means the amount shown in the followingtable for the corresponding type of unit:

(3)"Average unit amount" means the amount shown in thefollowing table for the corresponding type of unit:

(B) In the case of each unit described in division (B),(C),or ~~(F)~~(E) of section3317.05 of the Revised Code and allocated to acity, local, or exempted village school district, thedepartmentof education, in addition to theamounts specified in division (P)ofsection 3317.024 and sections3317.052 and 3317.19oftheRevised Code, shallpay a supplemental unit allowance equal tothesum of the following amounts:

(2) An amount equal to the percentage of the dollar amountfor the unit thatequals the district's state share percentage.

If, prior to the fifteenth day of May of a fiscal year, aschool district'said computed under section 3317.022 of theRevised Code is recomputedpursuant to section 3317.027 or3317.028 of the RevisedCode, the department shall also recomputethe district's entitlement topayment under this section utilizinga new state share percentage. Such new state share percentageshall be determined using thedistrict's recomputed basic aidamount pursuant to section3317.027 or 3317.028 of the RevisedCode. During the last six months of thefiscal year, thedepartment shall pay the district a sum equal to one-half oftherecomputed payment in lieu of one-half the payment otherwisecalculatedunder this section.

(C)(1) In the case of each unit allocated to an institutionpursuant todivision (A) of section3317.05 of the Revised Code,thedepartment, in addition to the amount specified insection3317.052 of the Revised Code, shallpay a supplementalunitallowance of $7,227.

(2) In the case of each unit described in division (B) ~~or(D)(1)~~ of section 3317.05 of the RevisedCode that is allocated toany entity other than a city, exempted village, orlocal schooldistrict, the department, in addition tothe amount specified insection3317.052 of the Revised Code, shall pay asupplementalunit allowance of $7,799.

(3) In the case of each unit described in division (C)~~or(D)(2)~~ of section 3317.05 of the RevisedCode and allocated to anyentity other than a city, exempted village, or localschooldistrict, the department, in addition to theamounts specified insection3317.052 of the Revised Code, shall pay asupplementalunit allowance of $2,966.

(4) In the case of each unit described in division ~~(F)~~(E)ofsection 3317.05 of the Revised Code and allocatedto aneducational service center,the department, in addition to theamounts specifiedin division (P) of section 3317.024of theRevised Code, shall pay a supplemental unitallowance of$5,251.

Sec. 3317.06. Moneys paid to school districts underdivision(L) of section 3317.024 of the Revised Code shallbe usedfor thefollowing independent and fully severable purposes:

(A) To purchase such secular textbooks or electronictextbooks as havebeenapproved by the superintendent of publicinstruction for use inpublic schools in the state and to loansuch textbooks or electronictextbooks to pupilsattendingnonpublic schools within the district or to theirparents and tohire clerical personnel to administer such lendingprogram. Suchloans shall be based upon individual requestssubmitted by suchnonpublic school pupils or parents. Suchrequests shall besubmitted to the school district in which thenonpublic school islocated. Such individual requests for theloan of textbooks orelectronic textbooks shall, for administrativeconvenience, besubmitted by the nonpublic school pupil or the pupil'sparent tothe nonpublic school, which shall prepare and submitcollectivesummaries of the individual requests to the school district. Asused in this section:

(1) "Textbook" means any book or booksubstitute that apupil uses as a consumable ornonconsumable text, text substitute,or textsupplement in aparticular class or program in the schoolthe pupil regularlyattends.

(2) "Electronic textbook" means computer software,interactivevideodisc, magnetic media, CD-ROM, computercourseware,local and remote computer assisted instruction,on-line service, electronicmedium, or other means of conveyinginformation to the student or otherwisecontributing to thelearning process through electronic means.

(B) To provide speech and hearing diagnostic services topupils attending nonpublic schools within the district. Suchservice shall be provided in the nonpublic school attended by thepupil receiving the service.

(C) To provide physician, nursing, dental, and optometricservices to pupils attending nonpublic schools within thedistrict. Such services shall be provided in the school attendedby the nonpublic school pupil receiving the service.

(D) To provide diagnostic psychological services to pupilsattending nonpublic schools within the district. Such servicesshall be provided in the school attended by the pupil receivingthe service.

(E) To provide therapeutic psychological and speech andhearing services to pupils attending nonpublic schools within thedistrict. Such services shall be provided in the public school,in nonpublic schools, in public centers, or in mobile unitslocated onor off of the nonpublic premises. If such services areprovided in the publicschool or in public centers, transportationto and from such facilitiesshall be provided by the schooldistrict in which the nonpublicschool is located.

(F) To provide guidance and counseling services to pupilsattending nonpublic schools within the district. Such servicesshall be provided in the public school, in nonpublic schools, inpublic centers, orin mobile units located on or off of thenonpublic premises. If suchservices are provided in the publicschool or in public centers,transportation to and from suchfacilities shall be provided bythe school district in which thenonpublic school is located.

(G) To provide remedial services to pupils attendingnonpublic schools within the district. Such services shall beprovided in the public school, in nonpublic schools, in publiccenters, or inmobile units located on or off of the nonpublicpremises. If suchservices are provided inthe public school orin public centers, transportation to andfrom such facilitiesshall be provided by the school district inwhich the nonpublicschool is located.

(H) To supply for use by pupils attending nonpublicschoolswithin the district such standardized tests and scoringservicesas are in use in the public schools of the state;

(I) To provide programs for children who attend nonpublicschools within the district and are handicapped children asdefined in division (A) of section 3323.01 of the Revised Code orgifted children. Such programs shall be provided in the publicschool, in nonpublic schools, in public centers, or in mobileunits locatedon oroff ofthe nonpublic premises. If suchprograms are provided in the public school orin public centers,transportation to and from such facilitiesshall be provided bythe school district in which the nonpublicschool is located.

(J) To hire clerical personnel to assist in theadministration of programs pursuant to divisions (B), (C), (D),(E), (F), (G), and (I) of this section and to hire supervisorypersonnel to supervise the providing of services and textbookspursuant to this section.

(K) To purchaseor lease any secular, neutral, andnonideologicalcomputer software (including site-licensing),prerecordedvideolaserdiscs, digital video on demand (DVD),compact discs, andvideo cassette cartridges, wide areaconnectivity andrelatedtechnology as it relates to internetaccess, mathematics orscienceequipment andmaterials,instructional materials, andschool library materialsthat are ingeneral use in the publicschools of thestate and loan such itemsto pupils attendingnonpublic schools within the district or totheir parents, and tohire clerical personnel to administer thelending program. Onlysuch items that are incapable of diversiontoreligioususe andthat are susceptible of loan to individualpupils and arefurnished for the use of individual pupils shall bepurchased andloaned under this division. As used in thissection,"instructionalmaterials" means prepared learningmaterials thatare secular, neutral, andnonideological incharacter and are ofbenefit to the instruction of schoolchildren, and may includeeducational resources and servicesdeveloped by the eTechOhio ~~schoolnet~~commission.

(L) To purchaseor lease instructional equipment, includingcomputerhardware andrelated equipment in general use in thepublicschools of the state, foruseby pupils attending nonpublicschools within the district and to loan such items to pupilsattending nonpublic schools within the district or to theirparents, and tohire clerical personnel to administer the lendingprogram.

(M) To purchase mobile units to be used for theprovision ofservicespursuant to divisions (E), (F), (G),and (I)of thissection and to pay for necessary repairs and operatingcostsassociatedwith these units.

Clerical and supervisory personnel hired pursuant todivision(J) of this section shall perform their services in thepublicschools, in nonpublic schools, public centers, or mobile unitswherethe services are provided to the nonpublic school pupil,exceptthat such personnel may accompany pupils to and from theservice sites when necessary to ensure the safety of the childrenreceiving the services.

All services provided pursuant to this section may beprovided under contract witheducational service centers,thedepartment of health, city or general health districts, orprivateagencies whose personnel are properly licensed by anappropriatestate board or agency.

Transportation of pupils provided pursuant to divisions(E),(F), (G), and (I) of this section shall be provided by theschooldistrict from its general funds and not from moneys paidto itunder division (L) of section 3317.024 of the RevisedCode unlessa special transportation request is submitted by theparent of thechild receiving service pursuant to such divisions. If such anapplication is presented to the school district, itmay pay forthe transportation from moneys paid to it underdivision (L) ofsection 3317.024 of the Revised Code.

No school district shall provide health or remedialservicesto nonpublic school pupils as authorized by this sectionunlesssuch services are available to pupils attending the publicschoolswithin the district.

Materials, equipment, computer hardware or software,textbooks,electronic textbooks, andhealth and remedial servicesprovided for the benefit ofnonpublic school pupils pursuant tothis section and theadmission of pupils to such nonpublic schoolsshall be providedwithout distinction as to race, creed, color, ornational originof such pupils or of their teachers.

No school district shall provide services, materials, orequipmentthat contain religious content for use inreligiouscourses, devotional exercises, religious training, orany otherreligious activity.

As used in this section, "parent" includes a personstandingin loco parentis to a child.

Notwithstanding section 3317.01 of the Revised Code,paymentsshall be made under this section to any city, local, orexemptedvillage school district within which is located one ormorenonpublic elementary or high schoolsand any payments made toschool districts under division (L) of section 3317.024 of theRevised Code for purposes of thissection may be disbursed withoutsubmission to and approval of thecontrolling board.

The allocation of payments for materials, equipment,textbooks, electronic textbooks, health services, and remedialservices to city, local,and exempted village school districtsshall be on the basis ofthe state board of education's estimatedannual average dailymembership in nonpublic elementary and highschools located inthe district.

Payments made to city, local, and exempted village schooldistricts under this section shall be equal to specificappropriations made for the purpose. All interest earned by aschool district on such payments shall be used by the districtforthe same purposes and in the same manner as the payments maybeused.

The department of education shall adopt guidelines andprocedures under which such programs and services shall beprovided, under which districts shall be reimbursed foradministrative costs incurred in providing such programs andservices, and under which any unexpended balance of the amountsappropriated by the general assembly to implement this sectionmaybe transferred to the auxiliary services personnelunemploymentcompensation fund established pursuant to section4141.47 of theRevised Code. The department shall also adoptguidelines andprocedures limiting the purchase and loan ofthe itemsdescribedin division (K) ofthis section to items that are in general usein the publicschools of the state, that are incapable ofdiversion toreligious use, and that are susceptible to individualuse ratherthan classroom use. Within thirty days after the endof eachbiennium, each board of education shall remit to thedepartmentall moneys paid to it under division (L) of section3317.024 of the Revised Code and any interest earned on thosemoneys that arenot required to pay expenses incurred under thissection duringthe biennium for which the money was appropriatedand duringwhich the interest was earned. If a board of educationsubsequently determines that the remittal of moneys leaves theboard with insufficient money to pay all valid expenses incurredunder this section during the biennium for which the remittedmoney was appropriated, the board may apply to the department ofeducation for a refund of money, not to exceed the amount of theinsufficiency. If the department determines the expenses werelawfully incurred and would have been lawful expenditures of therefunded money, it shall certify its determination and the amountof the refund to be made to the director of job and familyservices who shall make a refund asprovided in section 4141.47 ofthe Revised Code.

Sec. 3317.063. The superintendent of public instruction,inaccordance with rules adopted by the department of education,shall annually reimburse each chartered nonpublic school for theactual mandated service administrative and clerical costsincurredby such school during the preceding school year inpreparing,maintaining, and filing reports, forms, and records,and inproviding such other administrative and clerical servicesthat arenot an integral part of the teaching process as may berequired bystate law or rule or by requirements duly promulgatedby city,exempted village, or local school districts. Themandated servicecosts reimbursed pursuant to this section shallinclude, but arenot limited to, the preparation, filing andmaintenance of forms,reports, or records and other clerical andadministrative servicesrelating to state chartering or approvalof the nonpublic school,pupil attendance, pupil health andhealth testing, transportationof pupils, federally fundededucation programs, pupil appraisal,pupil progress, educatorlicensure, unemployment and workers'compensation, transferof pupils, and such other education relateddata which are now orhereafter shall be required of suchnonpublic school by state lawor rule, or by requirements of thestate department of education,other state agencies, or city,exempted village, or local schooldistricts.

The reimbursement required by this section shall be forschool years beginning on or after July 1, 1981.

Each nonpublic school which seeks reimbursement pursuant tothis section shall submit to the superintendent of publicinstruction an application together with such additional reportsand documents as the department of education may require. Suchapplication, reports, and documents shall contain suchinformationas the department of education may prescribe in orderto carry outthe purposes of this section. No payment shall bemade until thesuperintendent of public instruction has approvedsuchapplication.

Each nonpublic school which applies for reimbursementpursuant to this section shall maintain a separate account orsystem of accounts for the expenses incurred in rendering therequired services for which reimbursement is sought. Suchaccounts shall contain such information as is required by thedepartment of education and shall be maintained in accordancewithrules adopted by the department of education.

Reimbursement payments to a nonpublic school pursuant tothissection shall not exceed an amount for each school yearequal totwo hundred ~~fifty~~ seventy-five dollars per pupil enrolled in that nonpublicschool.

The superintendent of public instruction may, from time totime, examine any and all accounts and records of a nonpublicschool which have been maintained pursuant to this section insupport of an application for reimbursement, for the purpose ofdetermining the costs to such school of rendering the servicesforwhich reimbursement is sought. If after such audit it isdetermined that any school has received funds in excess of theactual cost of providing such services, said school shallimmediately reimburse the state in such excess amount.

Any payments made to chartered nonpublic schools under thissection may be disbursed without submission to and approval of thecontrolling board.

Sec. 3317.07. The state board of education shall establishrules for the purpose of distributing subsidies for the purchaseof school buses under division (E) of section 3317.024 of theRevised Code.

No school bus subsidy payments shall be paid to anydistrict unless such district can demonstrate that pupilsresiding more than one mile from the school could not betransported without such additional aid.

The amount paid to a county MR/DD board for buses purchasedfor transportation of children in special education programsoperated by the board shall be ~~one hundred per cent of theboard's net cost~~ based on a per pupil allocation for eligible students.

The amount paid to a school district for buses purchasedfor transportation of handicapped and nonpublic school pupilsshall be ~~one hundred per cent of the school district's net cost~~ determined by a per pupil allocation based on the number of special education and nonpublic school pupils for whom transportation is provided.

The state board of education shall adopt a formula todetermine the amount of payments that shall be distributed toschool districts to purchase school buses for pupils other thanhandicapped or nonpublic school pupils.

If any district or MR/DD board obtains bus services forpupil transportation pursuant to a contract, such district orboard may use payments received under this section to defray thecosts of contracting for bus services in lieu of for purchasingbuses.

If the department of education determines that a county MR/DD board no longer needs a school bus because the board no longer transports children to a special education program operated by the board, or if the department determines that a school district no longer needs a school bus to transport pupils to a nonpublic school or special education program, the department may reassign a bus that was funded with payments provided pursuant to this section for the purpose of transporting such pupils. The department may reassign a bus to a county MR/DD board or school district that transports children to a special education program designated in the children's individualized education plans, or to a school district that transports pupils to a nonpublic school, and needs an additional school bus.

Sec. 3317.081. (A) Tuition shall be computed in accordance with this sectionif:

(1) The tuition is required by division (C)(3)(b) of section 3313.64 of theRevised Code; or

(2) Neither the child nor the child's parent resides inthis state and tuition isrequired by section 3327.06 of the Revised Code.

(B) Tuition computed in accordance with this section shall equal theattendance district's tuition rate computed under section 3317.08 of theRevised Code plus the amount that districtwould have received for the child pursuant tosections 3317.022, 3317.023, and 3317.025 to~~3317.0213~~ 3317.0211 of the Revised Code during the school year had the attendancedistrict been authorized tocount the child in its formula ADM for that school year undersection 3317.03 of the Revised Code.

Sec. 3317.09. All moneys distributed to a school district,including any cooperative education or joint vocationalschool district and all moneys distributed to any educational servicecenter, by the state whether from a state or federalsource, shall be accounted for by the division of school financeof the department of education. All moneys distributed shall becoded as to county, school district or educational service center,source, and other pertinentinformation, and at the end of each month, a report of suchdistribution shall be made by such division of school finance ~~tothe clerk of the senate and the chiefadministrative officer of the houseof representatives, to the Ohio legislative service commission tobe available for examination by any member of either house,~~ toeach school district and educational service center~~, and to thegovernor.~~

On or before the first day of September in each year, acopy of the annual statistical report required in section3319.33 of the Revised Code shall be filed by thestate board of education with the clerk of the senate and thechief administrative officer of the house ofrepresentatives, the Ohiolegislative service commission, the governor, and the auditor ofstate. The report shall contain an analysis for the prior fiscalyear on an accrual basis of revenue receipts from all sources andexpenditures for all purposes for each school district, includingeach joint vocational and cooperative education school district,in the state. If any board of education fails to make the reportrequired in section 3319.33 of the Revised Code, thesuperintendent of public instruction shall be without authorityto distribute funds to that school district or educational servicecenter pursuant to sections 3317.022 to ~~3317.0212~~ 3317.0211,3317.11, 3317.16, 3317.17, or 3317.19 of theRevised Code until such time as the required reports are filedwith all specified officers, boards, or agencies.

Sec. 3317.10. (A) On or before the first day of March ofeach year, the department of job and family servicesshall certifyto thestate board of education theunduplicated number ofchildren ages five throughseventeen residing in each schooldistrict and living in a familythat,during theprecedingOctober, ~~had family income not exceeding the federalpovertyguidelines as defined in section 5101.46 of the RevisedCode and~~participated in ~~one of the following:~~

~~(3) The medical assistance program, including the healthystart program, established under Chapter5111. of the RevisedCode;~~

~~(4) The children's health insurance program part Iestablished under section 5101.50 of the Revised Code;~~

~~(5) The disability financial assistance program established underChapter 5115. of the Revised Code;~~

~~(6) The disability medical assistance program established under Chapter 5115. of the Revised Code~~.

The department of job and family services shall certify thisinformation according to the school district of residenceforeach child. Except as provided under division (B) of thissection, the number of children so certified in any year shall beused bythe department of education in calculating thedistribution of moneys for the ensuing fiscal yearas provided insection 3317.029 of the Revised Code.

(B) Upon the transfer of part of the territory of oneschooldistrict to the territory of one or more other schooldistricts,the department of education may adjust the numberof childrencertified under division (A) of this section for anydistrictgaining or losing territory in such a transfer in order to takeinto account the effect of the transfer on the number ofsuchchildren who reside in the district.Withinsixty days ofreceiptof a request for informationfrom thedepartment ofeducation, thedepartment of job and familyservicesshallprovideanyinformation the department of educationdetermines isnecessary tomake such adjustments. The departmentof educationmay use theadjusted number for any district for theapplicablefiscal year,in lieu of the number certified for thedistrict forthat fiscalyear under division (A) of thissection,in thecalculation of thedistribution of moneys provided insection3317.029 of the RevisedCode.

(1) "State share percentage" means the percentage calculatedfor ajoint vocational school district as follows:

(a) Calculate the state base cost funding amount for thedistrictunderdivision (B) of this section. If the districtwould not receiveany base cost funding for that year under thatdivision, the district's stateshare percentage is zero.

(b) If the district would receive base cost funding underthatdivision,divide that base cost amount by an amount equal tothe following:

(2) The "total special education weight" for a jointvocationalschool district shall be calculated in the same manneras prescribed indivision (B)(1) of section 3317.022 of theRevisedCode.

(3) The "total vocational education weight" for a jointvocational school district shall be calculated in the same mannerasprescribed in division (B)(4) of section 3317.022 of theRevised Code.

(4) The "totalrecognized valuation"of a joint vocationalschool district shall be determined byadding therecognizedvaluations ofall its constituent school districts for theapplicable fiscalyear.

(5) "Resident district" means the city, local, or exempted village school district in which a student is entitled to attend school under section 3313.64 or 3313.65 of the Revised Code.

(6) "Community school" means a community school established under Chapter 3314. of the Revised Code.

(B) The department of education shall compute and distributestate base cost funding to each joint vocational school districtfor thefiscal year in accordance with division (B) of this section.

If the difference obtained under this division is a negativenumber, the district's computation shall be zero.

(a) The difference of (i) the district's fiscal year 2005 base cost payment under the version of division (B) of this section in effect in fiscal year 2005, minus (ii) the amount computed for the district for the current fiscal year under current division (B)(1) of this section;

If one of the amounts computed under division (B)(2)(a) or (b) of this section is a positive amount, the department shall pay the district that amount in addition to the amount calculated under division (B)(1) of this section. If both amounts are positive amounts, the department shall pay the district the lesser of the two amounts in addition to the amount calculated under division (B)(1) of this section.

(C)(1) The department shall compute and distribute statevocational education additional weighted costs funds to each jointvocationalschool district in accordance with the followingformula:

In each fiscal year, a joint vocational school district receiving funds under division (C)(1) of this section shall spend those funds only for the purposes the department designates as approved for vocational education expenses.Vocational educational expenses approved by the department shall include only expenses connected to the delivery of career-technical programming to career-technical students. The department shall require the joint vocational school district to report data annually so that the department may monitor the district's compliance with the requirements regarding the manner in which funding received under division (C)(1) of this section may be spent.

(2) The department shall compute for each jointvocationalschool district state funds for vocational educationassociatedservices costs in accordance with the followingformula:

In any fiscal year, a joint vocational school districtreceivingfunds under division (C)(2) of this section, or throughatransfer of funds pursuant to division (L)of section 3317.023of the Revised Code, shall spend thosefunds only for the purposesthat the department designates asapproved for vocationaleducation associated services expenses,which may include suchpurposes as apprenticeship coordinators,coordinators for othervocational education services, vocationalevaluation, and otherpurposes designated by the department. Thedepartment may denypayment under division (C)(2) of this section toany district thatthe department determines is not operating those services orisusing funds paid under division (C)(2) of this section,or througha transfer of funds pursuant to division (L)of section 3317.023of the Revised Code, for other purposes.

(D)(1) The department shall compute and distribute statespecialeducation and related services additional weighted costsfunds to each jointvocational school district in accordance withthefollowing formula:

(2)(a) As used in this division, the "personnel allowance"means thirtythousanddollars in fiscalyears 2002, 2003, 2004, ~~and~~ 2005, 2006, and 2007.

(b) For the provision of speech language pathology services to students,including studentswho do not have individualized educationprograms prepared forthem under Chapter 3323. of the RevisedCode, and fornoother purpose, the department shall pay eachjoint vocationalschool districtan amount calculatedunder thefollowing formula:

(3) In any fiscal year, a joint vocational school district shall spend for purposes that the department designates as approved for special education and related services expenses at least the amount calculated as follows:

The purposes approved by the department for special education expenses shall include, but shall not be limited to, compliance with state rules governing the education of handicapped children, providing services identified in a student's individualized education program as defined in section 3323.01 of the Revised Code, provision of speech language pathology services, and the portion of the district's overall administrative and overhead costs that are attributable to the district's special education student population.

The department shall require joint vocational school districts to report data annually to allow for monitoring compliance with division (D)(3) of this section. The department shall annually report to the governor and the general assembly the amount of money spent by each joint vocational school district for special education and related services.

(4) In any fiscal year, a joint vocational school district shall spend for the provision of speech language pathology services not less than the sum of the amount calculated under division (D)(1) of this section for the students in the district's category one special education ADM and the amount calculated under division (D)(2) of this section.

(E)(1) If a joint vocational schooldistrict's costs for afiscal year for a student in itscategories two through sixspecial educationADMexceed thethreshold catastrophic cost forserving thestudent, as specifiedin division (C)(3)(b) of section3317.022 ofthe Revised Code, the district maysubmit to thesuperintendent ofpublicinstructiondocumentation,asprescribedby thesuperintendent, ofall of its costs for thatstudent. Uponsubmission ofdocumentation for a student of thetype and in themannerprescribed, the department shall pay to thedistrict anamountequal to thesum of the following:

(a) One-half of the district's costs for the student inexcess of the threshold catastrophic cost;

(b) The product of one-half of the district's costs for thestudentin excess ofthe thresholdcatastrophic cost multipliedbythedistrict's statesharepercentage.

(2) The district shall only reportunder division (E)(1) ofthis section, and the department shall onlypayfor, thecosts ofeducational expenses and the relatedservices providedtothestudent in accordance with the student'sindividualizededucationprogram. Any legal fees, court costs, orother costsassociatedwith any cause of action relating to thestudent maynot beincluded in the amount.

(F) Each fiscal year, the department shall pay each jointvocational school district an amount for adult technical andvocationaleducation andspecialized consultants.

(G)(1) A joint vocational school district's local share ofspecialeducation and related services additional weighted costsequals:

(2) For each handicapped student receiving special education and related services under an individualized education program, as defined in section 3323.01 of the Revised Code, at a joint vocational district, the resident district or, if the student is enrolled in a community school, the community school shall be responsible for the amount of any costs of providing those special education and related services to that student that exceed the sum of the amount calculated for those services attributable to that student under divisions (B), (D), (E), and (G)(1) of this section.

Those excess costs shall be calculated by subtracting the sum of the following from the actual cost to provide special education and related services to the student:

(b) The product of the formula amount times the applicable multiple specified in section 3317.013 of the Revised Code;

(d) Any other funds received by the joint vocational school district under this chapter to provide special education and related services to the student, not including the amount calculated under division (G)(2) of this section.

(3) The board of education of the joint vocational school district ~~shall~~ may report the excess costs calculated under division (G)(2) of this section to the department of education.

(4) ~~The~~ If the board of education of the joint vocational school district reports excess costs under division (G)(3) of this section, the department shall pay the amount of excess cost calculated under division (G)(2) of this section to the joint vocational school district and shall deduct that amount as provided in division (G)(4)(a) or (b) of this section, as applicable:

(a) If the student is not enrolled in a community school, the department shall deduct the amount from the account of the student's resident district pursuant to division (M) of section 3317.023 of the Revised Code.

(b) If the student is enrolled in a community school, the department shall deduct the amount from the account of the community school pursuant to section 3314.083 of the Revised Code.

(H) In any fiscal year, if the total of all payments made toajoint vocational school district under divisions (B) to (D)ofthis section and division (R) of section 3317.024 of the RevisedCode islessthan the amount thatdistrict received in fiscal year1999 under the version of this section ineffect that year, plusthe amount that district received under the version ofsection3317.162 of the Revised Code in effect that year and minus theamounts received thatyear for driver education and adulteducation, the department shall pay thedistrict an additionalamount equal to the difference between those twoamounts.

(1)"Applicable weight" means the multiple specified insection3317.013 of the RevisedCodefor a handicapdescribed inthatsection.

(2)"Child's school district" means the school districtinwhich a child is entitled to attend school pursuant tosection3313.64 or 3313.65 of theRevised Code.

(3)"State share percentage" means the state sharepercentageof the child's school district as defined in section3317.022 ofthe Revised Code.

(B) Except as providedin division(C) of thissection,thedepartment shall annually pay each countyMR/DD board ~~anamountcalculated under the following formula~~ for each handicappedchild,other than a handicapped preschool child, for whom thecountyMR/DD board providesspecial education and relatedservices the greater of the amount calculated under division (B)(1) or (2) of this section:

(1) (The formula amount for fiscal year 2005 X the cost-of-doing-business factor for the child's school district for fiscal year 2005) + (state share percentage for fiscal year 2005 X formula amount for fiscal year 2005 X the applicable weight);

(2) (The current formula amount times the current cost-of-doing-business factor for the child's school district) + (state share percentage X current formula amount X the applicable weight).

(C) If any schooldistrict places with a countyMR/DDboardmore handicappedchildren than it had placed with a countyMR/DDboard in fiscal year1998, the department shall not make apaymentunder division(B) ofthis section for the number ofchildrenexceeding the number placed in fiscalyear 1998. Thedepartmentinstead shall deduct from the district's paymentsunderthischapter, and pay to the countyMR/DD board, an amountcalculatedin accordance with the formula prescribed in division(B) of thissection for eachchild over the number of childrenplaced infiscal year1998.

(D) The department shallcalculate for each county MR/DDboard receiving payments under divisions(B) and(C) of thissection thefollowing amounts:

(1) The amount received by the countyMR/DD board forapprovedspecial education and related services units, other thanpreschool handicapped units, in fiscal year 1998, divided by thetotal number of children served in the units that year;

(2) The product of the quotient calculated under division(D)(1) of this section timesthe number of children for whompayments are made underdivisions(B) and(C) of thissection.

If the amount calculated under division(D)(2) of thissection isgreater than the total amount calculated underdivisions(B) and(C) of this section, thedepartment shallpaythe countyMR/DD board one hundred percent of the differenceinaddition to the payments under divisions(B) and(C) ofthissection.

Sec. 3317.201. This section does not apply to handicapped preschool children.

(A) As used in this section, the "total special education weight" for an institution means the sum of the following amounts:

(1) The number of children reported by the institution under division (G)(1)(a)(i) of section 3317.03 of the Revised Code as receiving services for a handicap described in division (A) of section 3317.013 of the Revised Code multiplied by the multiple specified in that division;

(2) The number of children reported by the institution under division (G)(1)(a)(i) of section 3317.03 of the Revised Code as receiving services for a handicap described in division (B) of section 3317.013 of the Revised Code multiplied by the multiple specified in that division;

(3) The number of children reported by the institution under division (G)(1)(a)(i) of section 3317.03 of the Revised Code as receiving services for a handicap described in division (C) of section 3317.013 of the Revised Code multiplied by the multiple specified in that division;

(4) The number of children reported by the institution under division (G)(1)(a)(i) of section 3317.03 of the Revised Code as receiving services for a handicap described in division (D) of section 3317.013 of the Revised Code multiplied by the multiple specified in that division;

(5) The number of children reported by the institution under division (G)(1)(a)(i) of section 3317.03 of the Revised Code as receiving services for a handicap described in division (E) of section 3317.013 of the Revised Code multiplied by the multiple specified in that division;

(6) The number of children reported by the institution under division (G)(1)(a)(i) of section 3317.03 of the Revised Code as receiving services for a handicap described in division (F) of section 3317.013 of the Revised Code multiplied by the multiple specified in that division.

(B) The department of education annually shall pay each state institution required to provide special education services under division (A) of section 3323.091 of the Revised Code an amount equal to the greater of:

(2) The aggregate amount of special education and related services unit funding the institution received for all handicapped children other than handicapped preschool children in fiscal year 2005 under sections 3317.052 and 3317.053 of the Revised Code, as those sections existed prior to the effective date of this section.

Sec. 3317.50. The eTech Ohio ~~schoolnet~~ telecommunity education fund is herebycreated in the state treasury. The fund shall consist of certain excess localexchange telephone company contributions transferred from the reserve fund ofthe Ohio telecommunications advisory board pursuant to an agreementbetween the public utilities commission of Ohio and the Ohiodepartment of education. The fund shall be used to financetechnology grants to state-chartered elementary and secondaryschools. Investment earnings of the fund shall be credited tothe fund.

Sec. 3317.51. (A) The distance learning fund is hereby createdin the state treasury. The fund shall consist of moneys paid to the eTechOhio ~~SchoolNet~~ commission by any telephone company as a part of asettlement agreement between such company and the public utilities commissionin fiscal year 1995 in part to establish distance learning throughout thestate. The ~~authority~~ commission shall administer the fund and expendmoneys from it to finance technology grants to eligible schools chartered bythe state board of education toestablish distance learning in those schools. Chartered schools are eligiblefor funds if they are within the service area of the telephone company. Investment earnings of the fund shall be credited to the fund.

(B) For purposes of this section, "distance learning" means thecreation of a learning environment involving a school setting and at least oneother location outside of the school which allows for information available atone site to be accessed at the other through the use of such educationalapplications as one-way or two-way transmission of data, voice, and video,singularly or in appropriate combinations.

Sec. 3318.091. (A) Promptly after the written agreement between the schooldistrict board and the Ohio school facilities commission has been enteredinto, the school district board shall proceed with the issuance of its bondsor notes inanticipation thereof pursuant to the provision of such agreement required bydivision (A) of section 3318.08 of the Revised Code and the deposit of theproceeds thereof in the school district's project constructionfund pursuant to the provision of such agreement required by division(B) of section 3318.08 of the Revised Code, and the school district board,with theapproval of the commission shall employ a qualified professional person orfirm to prepare preliminary plans, working drawings,specifications, estimates of cost, and such data as the school district boardand the commission consider necessary for the project. When the preliminary plans and preliminary estimates of cost have beenprepared, and approved by the school district board, they shall be submittedto the commission for approval, modification, orrejection. The commission shall ensure that the plans and materialsproposed for use in the project comply with specifications for plans andmaterials that shall be established by the commission. When suchpreliminary plans and preliminary estimates of cost andany modifications thereof have been approved by the commission and theschool district board, the school district board shallcause such qualified professional person or firm to prepare the workingdrawings, specifications, and estimates of cost.

(B) Whenever project plans submitted to the commission for approval under division (A) of this section propose to locate a facility on a state route or United States highway or within one mile of a state route or United States highway, the commission shall send a copy of the plans to the director of transportation. The director of transportation shall review the plans to determine the feasibility of the proposed ingress and egress to the facility, the traffic circulation pattern on roadways around the facility, and any improvements that would be necessary to conform the roadways to provisions of the manual adopted by the department of transportation pursuant to section 4511.09 of the Revised Code or state or federal law. The director of transportation shall provide a written summary of the director's findings to the commission in a timely manner. The commission shall consider the findings in deciding whether to approve the plans.

(1) "Valuation" of a school district means the sum of the amounts described in divisions (A)(1) and (2) of section 3317.021 of the Revised Code as most recently certified for the district before the annual computation is made under division (B) of this section.

(2) "Valuation per pupil" of a school district means the district's valuation divided by the district's formula ADM as most recently reported for October under section 3317.03 of the Revised Code before the annual computation is made under division (B) of this section.

(3) "Statewide average valuation per pupil" means the total of the valuations of all school districts divided by the total of the formula ADMs of all school districts as most recently reported for October under section 3317.03 of the Revised Code before the annual computation is made under division (C) of this section.

(4) "Maintenance levy requirement" means the tax required to be levied pursuant to division (C)(2)(a) of section 3318.08 and division (B) of section 3318.05 of the Revised Code or the application of proceeds of another levy to paying the costs of maintaining classroom facilities pursuant to division (A)(2) of section 3318.052, division (C)(1) or (C)(2)(b) of section 3318.08, or division (D)(2) of section 3318.36 of the Revised Code, or a combination thereof.

(5) "Project agreement" means an agreement between a school district and the Ohio school facilities commission under section 3318.08 or division (B)(1) of section 3318.36 of the Revised Code.

(B) On or before July 1, 2006, the department of education shall compute the statewide average valuation per pupil and the valuation per pupil of each school district, and provide them to the Ohio school facilities commission. On or before the first day of July each year beginning in 2007, the department of education shall compute the statewide average valuation per pupil and the valuation per pupil of each school district that has not already entered into a project agreement, and provide the results of those computations to the commission.

(C)(1) At the time the Ohio school facilities commission enters into a project agreement with a school district, the commission shall compute the difference between the district's valuation per pupil and the statewide average valuation per pupil as most recently provided to the commission under division (B) of this section. If the school district's valuation per pupil is less than the average statewide valuation per pupil, the commission shall multiply the difference between those amounts by one-half mill times the formula ADM of the district as most recently reported to the department of education for October under division (A) of section 3317.03 of the Revised Code. The commission shall certify the resulting product to the department of education, along with the date on which the maintenance levy requirement terminates as provided in the project agreement between the school district board and the commission.

(2) In the case of a school district that entered into a project agreement after July 1, 1997, but before July 1, 2006, the commission shall make the computation described in division (C)(1) of this section on the basis of the district's valuation per pupil and the statewide average valuation per pupil computed as of September 1, 2006, and the district's formula ADM reported for October 2005.

(3) The amount computed for a school district under division (C)(1) or (2) of this section shall not change for the period during which payments are made to the district under division (D) of this section.

(4) A computation need not be made under division (C)(1) or (2) of this section for a school district that certified a resolution to the commission under division (D)(3) of section 3318.36 of the Revised Code until the district becomes eligible for state assistance as provided in that division.

(D) In the fourth quarter of each fiscal year, for each school district for which a computation has been made under division (C) of this section, the department of education shall pay the amount computed to each such school district. Payments shall be made to a school district each year until and including the tax year in which the district's maintenance levy requirement terminates. Payments shall be paid from the half-mill equalization fund, subject to appropriation by the general assembly.

(E) Payments made to a school district under this section shall be credited to the district's classroom facilities maintenance fund and shall be used only for the purpose of maintaining facilities constructed or renovated under the project agreement.

(F) There is hereby created in the state treasury the half-mill equalization fund. The fund shall receive transfers pursuant to section 5727.85 of the Revised Code. The fund shall be used first to make annual payments under division (D) of this section. If a balance remains in the fund after such payments are made in full for a year, the Ohio school facilities commission may request the controlling board to transfer a reasonable amount from such remaining balance to the public school building fund created under section 3318.15 of the Revised Code for the purposes of this chapter.

All investment earnings arising from investment of money in the half-mill equalization fund shall be credited to the fund.

Sec. 3318.33. (A) There is hereby created in the state treasurythe Ohio school facilities commission fund, which shall consist oftransfers of moneys authorized by the general assembly and revenuesreceived by the Ohio school facilities commission undersection 3318.31 of the Revised Code. Investmentearnings on moneys in the fund shall be credited to the fund. Moneys in thefund may be used by the commission to pay personnel andother administrative expenses, to pay the cost of conductingevaluations of classroom facilities, to pay the cost of preparingbuilding design specifications, to pay the cost of providingproject management services, and for other purposes determined bythe commission to be necessary to fulfill its duties under ~~Chapter3318. of the Revised Code~~ this chapter.

(B) The director of budget and management may transfer to theOhio school facilities commission fund the investment earnings on thepublic school building fund, created in section 3318.15 ofthe Revised Code, the investment earnings on the education facilities trust fund created in section 183.26 of the Revised Code, or both. The director of budget and management maytransfer to the Ohio school facilities commission fund the investmentearnings on the school building program assistance fund, created undersection 3318.25 of the Revised Code, in excess of theamounts needed to meet estimated federal arbitrage rebate requirements.

Sec. ~~3317.21~~ 3318.47. There is hereby created in the state treasury the ~~vocational~~career-technical school building assistance fund. Money in the fund shall be used solely toprovide interest-free loans to school districts, including joint vocationalschool districts, under sections ~~3317.22~~ 3318.48 and ~~3317.23~~ 3318.49 of the Revised Code toassist in financing the construction of new vocational classroom facilities,the renovation of existing vocational classroom facilities, or the purchase ofvocational education equipment or facilities. Moneys in the fund shallconsist of transfers made to the fund, any interest earned by the fund, andrepayments of loans made under sections ~~3317.22~~ 3318.48 and ~~3317.23~~ 3318.49 of the RevisedCode. Investment earnings of the fund shall be credited to the fund.

Sec. ~~3317.22~~ 3318.48. The ~~state board of education~~ Ohio school facilities commission shall adoptrules in accordance with Chapter 119. of the Revised Code underwhich, in any fiscal year that funds are appropriated from the~~vocational~~ career-technical school building assistance fund for such purpose, the~~state board~~ commission may make interest-free loans to school districts.The rules shall include all of the following:

(A) Application procedures, including the date by whichapplications shall be made;

(1) A requirement that an applicant district demonstratefinancial need for the loan. Indicators of need may include, butneed not be limited to, levels of assessed valuation, enrollmentlevels and enrollment changes, ability of the district tomaintain minimum educational standards, and demonstrated goodfaith efforts by the district to secure funds from sources otherthan the state.

(2) A requirement that an applicant district demonstratethe ability to repay the loan within the maximum period permittedby division (D) of this section;

(3) A requirement that an applicant district is not eligible for a loan, other than a loan for the purchase of any vocational education equipment that is not an approved project cost under this chapter, if the district, on the date of application for the loan, has at any time received any state assistance under sections 3318.01 to 3318.20, section 3318.37 or 3318.38, or sections 3318.40 to 3318.45 of the Revised Code or is reasonably expected to receive state assistance under any of those sections within three fiscal years;

(4) A requirement that an applicant district agree to comply with all applicable design specifications and policies of the commission established pursuant to this chapter in the construction, renovation, or purchase of facilities or equipment paid for with the loan, unless such specifications or policies are waived by the commission.

(C) Loan approval procedures and criteria, includingcriteria for prioritizing eligible applications. Criteria forsuch prioritization shall include:

(1) Preference for applicant districts that demonstratecommitment and innovative approaches to the implementation of thedepartment of education's vocational education modernization planpursuant to section 3313.901 of the Revised Code;

(2) Preference for applicant districts that have enteredinto or are in the process of entering into cooperativeagreements with technical colleges or other institutions ofhigher education either to coordinate secondary vocationaleducation and post-secondary technical education programs, or toshare facilities and equipment.

(D) Provisions governing the repayment of loans, includinga provision that loans for construction, acquisition, orrenovation of facilities shall be repaid within a maximum offifteen years and loans for vocational education equipment shallbe repaid within a maximum of five years;

(E) A requirement that no loan shall be applied to the local resources a district expends as a condition of participation in a program established under section 3318.36 or 3318.46 of the Revised Code.

Sec. ~~3317.23~~ 3318.49. The ~~state board of education~~ Ohio school facilities commission shall enter into a loan agreementwith each school district it approves for a loan under section ~~3317.22~~ 3318.48 of theRevised Code. The agreement shall specify the amount of the loan, thepurposes for which it is to be used, the duration of the loan, and therepayment schedule. Every such agreement shall contain a provision~~authorizing~~ directing the state board of education, upon the request of the executive director of the commission, to deduct from payments due to the district underChapter 3317. of the Revised Code or from any other funds appropriated to thedistrict by the general assembly, the amount of any scheduled loan payment duebut not paid by the district and, within ten days, to transfer that amount to the commission.

A copy of each loan agreement shall be furnished to the controlling board. Nomoney shall be released from the ~~vocational~~ career-technical school building assistance fundwithout the approval of the controlling board.

Sec. 3319.06. (A) The board of education of each city, exempted village, or local school district may create the position of internal auditor. Any person employed by the board as an internal auditor shall hold a valid permit issued under section 4701.10 of the Revised Code to practice as a certified public accountant or a public accountant.

(B) The board shall execute a written contract of employment with each internal auditor it employs. The contract shall specify the internal auditor's duties, the salary and other compensation to be paid for performance of those duties, the number of days to be worked, the number of days of vacation leave, if any, and any paid holidays in the contractual year. The salary and other compensation prescribed by the contract may be increased by the board during the term of the contract but shall not be reduced during that term unless such reduction is part of a uniform plan affecting employees of the entire district. The term of the initial contract shall not exceed three years. Any renewal of the contract shall be for a term of not less than two years and not more than five years.

The internal auditor shall be directly responsible to the board for the performance of all duties outlined in the contract. If the board does not intend to renew the contract upon its expiration, the board shall provide written notice to the internal auditor of its intention not to renew the contract not later than the last day of March of the year in which the contract expires. If the board does not provide such notice by that date, the internal auditor shall be deemed reemployed for a term of one year at the same salary plus any increments that may be authorized by the board. Termination of an internal auditor's contract shall be pursuant to section 3319.16 of the Revised Code.

(C) Each board that employs an internal auditor shall adopt procedures for the evaluation of the internal auditor and shall evaluate the internal auditor in accordance with those procedures. The evaluation based upon the procedures shall be considered by the board in deciding whether to renew the internal auditor's contract of employment. The establishment of an evaluation procedure shall not create an expectancy of continued employment. Nothing in this section shall prevent the board from making the final determination regarding the renewal or nonrenewal of the contract of an internal auditor.

Sec. 3319.081. Except as otherwise provided in division(G) of this section, in all school districts wherein theprovisions of Chapter 124. of the Revised Code do not apply, thefollowing employment contract system shall control for employeeswhose contracts of employment are not otherwise provided by law:

(A) Newly hired regular nonteaching school employees,including regular hourly rate and per diem employees, shall enterinto written contracts for their employment which shall be for aperiod of not more than one year. If such employees are rehired,their subsequent contract shall be for a period of two years.

(B) After the termination of the two-year contractprovided in division (A) of this section, if the contract of anonteaching employee is renewed, the employee shall be continuedin employment, and the salary provided in the contract may beincreased but not reduced unless such reduction is a part of auniform plan affecting the nonteaching employees of the entiredistrict.

(C) The contracts as provided for in this section may beterminated by a majority vote of the board of education. ~~Such~~ Except as provided in sections 3319.0810 and 3319.172 of the Revised Code, thecontracts may be terminated only for violation of written rulesand regulations as set forth by the board of education or forincompetency, inefficiency, dishonesty, drunkenness, immoralconduct, insubordination, discourteous treatment of the public,neglect of duty, or any other acts of misfeasance, malfeasance,or nonfeasance. In addition to the right of the board ofeducation to terminate the contract of an employee, the board maysuspend an employee for a definite period of time or demote theemployee for the reasons set forth in this division. The actionof the board of education terminating the contract of an employeeor suspending or demoting ~~him~~ the employee shall be served uponthe employeeby certified mail. Within ten days following the receipt of suchnotice by the employee, the employee may file an appeal, inwriting, with the court of common pleas of the county in whichsuch school board is situated. After hearing the appeal thecommon pleas court may affirm, disaffirm, or modify the action ofthe school board.

A violation of division (A)(7) of section 2907.03 of the Revised Code isgrounds for termination of employment of a nonteaching employee under thisdivision.

(D) All employees who have been employed by a schooldistrict where the provisions of Chapter 124. of the Revised Codedo not apply, for a period of at least three years on November24, 1967, shall hold continuing contracts of employment pursuantto this section.

(E) Any nonteaching school employee may terminate ~~his~~ thenonteaching school employee'scontract of employment thirty days subsequent to the filing of awritten notice of such termination with the treasurer of theboard.

(F) A person hired exclusively for the purpose ofreplacing a nonteaching school employee while such employee is onleave of absence granted under section 3319.13 of the RevisedCode is not a regular nonteaching school employee under thissection.

(G) All nonteaching employees employed pursuant to this section and Chapter124. of the Revised Code shall be paid for all time lost when the schools inwhich they are employed are closed owing to an epidemic or other publiccalamity. Nothing in this division shall be construed as requiring payment inexcess of an employee's regular wage rate or salary for any time worked whilethe school in which he the employee is employed is officiallyclosed for the reasons set forth in this division.

Sec. 3319.0810. (A) The board of education of any schooldistrict wherein the provisions of Chapter 124. of the RevisedCode do not apply may terminate any of its transportation staffpositions for reasons of economy and efficiency if the boardinstead of employing its own staff to transport some or all of thestudents enrolled in the district schools enters into a contractwith an independent agent for the provision of transportationservices for such students. Such a contract may be entered intoonly if all of the following conditions are satisfied:

(1) Any collective bargaining agreement between theemployee organization representing the employees whose positionsare terminated under this section and the board has expired orwill expire within sixty days and has not been renewed inconformance with provisions of that agreement and with Chapter4117. of the RevisedCode, or the agreement contains provisionspermitting thetermination of positions for reasons of economy andefficiencywhile the agreement is in force and the board is in conformancewith those provisions.

(2) The board permits any employee whose position isterminated under this section to fill any vacancy within thedistrict's organization for which the employee is qualified. Theboard shall select from among similarly qualified employees to fillsuch vacancies pursuant to procedures established under anycollective bargaining agreement between the employee organizationrepresenting the terminated employees and the board that is inforce at the time of the termination, or in absenceof suchprovisions on the basis of seniority of employment by theboardwith the employee with the greatest seniority having highestpriority.

(3) Unless a collective bargaining agreement between theemployee organization representing the terminated employees andthe board that is in force at the time of the termination providesotherwise, the board permits any employee whose position isterminated under this section to fill the employee's formerposition in the event that the board reinstates that positionwithin one year after the date the position is terminated underthis section.

(4) The board permits any employee whose position isterminated under this section to appeal in accordance with section119.12 of the Revised Code the board's decision to terminate theemployee's position, not to hire that employee for anotherposition pursuant to division (A)(2) of this section, or not torehire that employee for the position if it is reinstated withinone year after the position is terminated pursuant to division(A)(3) of this section.

(5) The contract entered into by the board and anindependent agent for the provision of transportation servicescontains a stipulation requiring the agent to consider hiring anyemployees of the school district whose positions are terminatedunder this section for similar positions within the agent'sorganization.

(6) The contract entered into by the board and anindependent agent for the provision of transportation servicescontains a stipulation requiring the agent to recognize forpurposes of employee representation in collective bargaining anyemployee organization that represented the employeeswhosepositions are terminated under this section in collectivebargaining with the board at the time of the termination provided:

(a) A majority of all employees in the bargaining unitagree to such representation;

(b) Such representation is not prohibited by federal law,including any ruling of the national labor relations board;

(c) The employee organization is not prohibited fromrepresenting nonpublic employees by other provisions of law or itsown governing instruments.

However, anyemployee whose position is terminated under thissection shall notbe compelled to be included in such bargainingunit if there isanother bargaining unit within the agent'sorganization that isapplicable to the employee.

(B) If after terminating any positions of employment underthis section the board fails to comply with any conditionprescribed in division (A) of this section or fails to enforce onthe agent its contractual obligations prescribed in divisions(A)(5) and (6) of this section, the terminations shall be void andthe board shall reinstate the positions and fill them with theemployees who filled those positions just prior to theterminations. Such employees shall be compensated at a rate equalto their rate of compensation in those positions just prior to theterminations plus any increases paid since the terminations toother nonteaching employees. The employees shall also be entitledto back pay at such rate for the period from the date of theterminations to the date of the reinstatements minus any payreceived by the employees during any time the board was incompliance with such conditions or during any time the boardenforced those obligations.

Any employee aggrieved by the failure of the board tocomply with any condition prescribed in division (A) of thissection or to enforce on the agent its contractual obligationsprescribed in divisions (A)(5) and (6) of this section shall havethe right to sue the board for reinstatement of the employee'sformer position as provided for in this division in the court ofcommon pleas for the county in which the school district islocated or, if the school district is located in more than onecounty,in the court of common pleas for the county in which themajorityof the territory of the school district is located.

Sec. 3319.17. (A) As used in this section, "interdistrictcontract" means any contract or agreement entered into byan educational service center governing boardand another board or other public entity pursuant tosection 3313.17, 3313.841, 3313.842,3313.843, 3313.91, or 3323.08 of the Revised Code, including anysuch contract or agreement for the provision of services fundedunder division (L) of section 3317.024 of the Revised Codeorprovided in any unit approved under section 3317.05 ofthe Revised Code.

(B) When, for any of the following reasons that apply toany city, exempted village, local, or joint vocationalschool district or any educational service center, the board decidesthat it will be necessary to reduce the number of teachers itemploys, it may make a reasonable reduction:

(1) In the case of any district or service center, return to duty of regularteachers after leaves of absence including leaves provided pursuant todivision (B) of section 3314.10 of the Revised Code, suspension of schools, orterritorial changes affecting the district or center, or financial reasons;

(2) In the case of any city, exempted village, local, orjoint vocational school district, decreased enrollment of pupilsin the district;

(3) In the case of any governing board of aservice center providingany particular service directly to pupils pursuant to one or moreinterdistrict contracts requiring such service, reduction in thetotal number of pupils the governing board is required toprovidewith the service under all interdistrict contracts as a result ofthe termination or nonrenewal of one or more of theseinterdistrict contracts;

(4) In the case of any governing boardprovidingany particular service that it does not provide directly topupils pursuant to one or more interdistrict contracts requiringsuch service, reduction in the total level of the service thegoverning board is required to provide under all interdistrictcontracts as a result of the termination or nonrenewal of one ormore of these interdistrict contracts.

(C) In making any such reduction, any city, exempted village,local, or joint vocational school board shall proceed to suspendcontracts in accordance with the recommendation of thesuperintendent of schools who shall, within each teaching fieldaffected, give preference first to teachers on continuing contracts and thento teachers who have greater seniority. In making any suchreduction, any governing board of a service center shallproceed to suspendcontracts in accordance with the recommendation of thesuperintendent who shall, within each teaching fieldor service area affected, give preference first to teachers oncontinuing contracts and then to teachers who have greater seniority.

On a case-by-case basis, in lieu of suspending a contract in whole, a board may suspend a contract in part, so that an individual is required to work a percentage of the time the employee otherwise is required to work under the contract and receives a commensurate percentage of the full compensation the employee otherwise would receive under the contract.

The teachers whose continuing contracts are suspended byany board pursuant to this section shall have the right ofrestoration to continuing service status by that board in theorder of seniority of service in the district or service center if and whenteaching positions become vacant or are created for which any ofsuch teachers are or become qualified. No teacher whose continuing contract has been suspended pursuant to this section shall lose that right of restoration to continuing service status by reason of having declined recall to a position that is less than full-time or, if the teacher was not employed full-time just prior to suspension of the teacher's continuing contract, to a position requiring a lesser percentage of full-time employment than the position the teacher last held while employed in the district or service center.

(D) Notwithstanding any provision to the contrary in Chapter 4117. of the Revised Code, the requirements of this section prevail over any conflicting provisions of agreements between employee organizations and public employers entered into after the effective date of this amendment.

Sec. 3319.172. The board of education of each school district wherein the provisions of Chapter 124. of the Revised Code do not apply and the governing board of each educational service center may adopt a resolution ordering reasonable reductions in the number of nonteaching employees for any of the reasons for which the board of education or governing board may make reductions in teaching employees, as set forth in division (B) of section 3319.17 of the Revised Code.

In making any reduction under this section, the board of education or governing board shall proceed to suspend contracts in accordance with the recommendation of the superintendent of the district or service center who shall, within each pay classification affected, give preference first to employees under continuing contracts and then to employees on the basis of seniority. On a case-by-case basis, in lieu of suspending a contract in whole, a board may suspend a contract in part, so that an individual is required to work a percentage of the time the employee otherwise is required to work under the contract and receives a commensurate percentage of the full compensation the employee otherwise would receive under the contract.

Any nonteaching employee whose continuing contract is suspended under this section shall have the right of restoration to continuing service status by the board of education or governing board that suspended that contract in order of seniority of service in the district or service center, if and when a nonteaching position for which the employee is qualified becomes vacant or is created. No nonteaching employee whose continuing contract has been suspended under this section shall lose that right of restoration to continuing service status by reason of having declined recall to a position requiring fewer regularly scheduled hours of work than required by the position the employee last held while employed in the district or service center.

Notwithstanding any provision to the contrary in Chapter 4117. of the Revised Code, the requirements of this section prevail over any conflicting provisions of agreements between employee organizations and public employers entered into after the effective date of this section.

Sec. 3319.22. (A)(1) The state board of education shall adoptrulesestablishing the standards and requirements for obtainingtemporary,associate, provisional, and professional educatorlicenses of any categories,types, and levels the board elects toprovide. However, no educator licenseshall be required forteaching children two years old or younger.

(2) If the state board requires any examinations for educator licensure, the department of education shall provide the results of such examinations received by the department to the Ohio board of regents, in the manner and to the extent permitted by state and federal law.

(B) Any rules the state board of education adopts, amends,or rescinds foreducator licenses under this section, division (D)of section 3301.07 of theRevised Code, or any other law shall beadopted, amended, or rescinded underChapter 119. of the RevisedCodeexcept as follows:

(1) Notwithstanding division (D) ofsection 119.03 anddivision (A)(1) of section119.04 of the Revised Code, in the case of the adoption of any rule or theamendment or rescission of any rule that necessitates institutions' offering teacher preparation programs that are approved by the state board of education under section 3319.23 of the Revised Code to revise the curriculum of those programs, the effective date shall not be as prescribed in division(D) of section119.03 and division (A)(1) of section 119.04 of theRevised Code.Instead, the effective date of such rules, or the amendment or rescission of such rules, shall be the date prescribedbysection 3319.23 of the Revised Code.

(2) Notwithstanding the authority to adopt, amend, orrescind emergencyrules in division (F) of section 119.03 of theRevised Code,this authority shall not apply to the state board ofeducation with regard torules for educator licenses.

(C)(1) The rules adopted under this section establishingstandards requiringadditional coursework for the renewal of anyeducator license shall require aschool district and a charterednonpublic school to establish localprofessional developmentcommittees. In a nonpublic school, the chiefadministrativeofficer shall establish the committees in any manner acceptabletosuch officer. The committees established under this divisionshalldetermine whether coursework that a district or charterednonpublic schoolteacher proposes to complete meets therequirement of the rules. The department of education shall provide technical assistance and support to committees as the committees incorporate the professional development standards adopted by the state board of education pursuant to section 3319.61 of the Revised Code into their review of coursework that is appropriate for license renewal. The rulesshall establish a procedureby which a teacher may appeal the decision of alocal professionaldevelopment committee.

(2) In any school district in which there is no exclusiverepresentativeestablished under Chapter 4117. of the RevisedCode, the professionaldevelopment committees shall be establishedas described in division (C)(2) ofthis section.

Not later than the effective date of the rules adopted underthis section, theboard of education of each school district shallestablish the structure forone or more local professionaldevelopment committees to be operated by suchschool district.Thecommittee structure so established by a district boardshallremain in effect unless within thirty days prior to an anniversaryofthe date upon which the current committee structure wasestablished, the boardprovides notice to all affected districtemployees that the committeestructure is to be modified.Professional development committees may have adistrict-level orbuilding-level scope of operations, and may beestablishedwithregard to particular grade or age levels for which an educatorlicense isdesignated.

Each professional development committee shall consist of atleast threeclassroom teachers employed by the district, oneprincipal employed by thedistrict, and one other employee of thedistrict appointed by the districtsuperintendent. For committeeswith a building-level scope, theteacher andprincipal membersshall be assigned to that building, and the teacher membersshallbe elected by majority vote of the classroom teachers assigned tothatbuilding. For committees with a district-level scope, theteachermembersshall be elected by majority vote of the classroomteachers of the district,and the principal member shall beelected by a majority vote of the principalsof the district,unless there are two or fewer principals employed by thedistrict,in which case the one or two principals employed shall serve onthecommittee. If a committee has a particular grade or age levelscope, theteacher members shall be licensed to teach such gradeor age levels, and shallbe elected by majority vote of theclassroom teachers holding such a licenseand the principal shallbe elected by all principals serving in buildingswhere any suchteachers serve. The district superintendent shall appoint areplacement to fill any vacancy that occurs on a professionaldevelopmentcommittee, except in the case of vacancies among theelected classroom teachermembers, which shall be filled by voteof the remaining members of thecommittee so selected.

Terms of office on professional development committees shallbe prescribed bythe district board establishing the committees.The conduct of elections formembers of professional developmentcommittees shall be prescribed by thedistrict board establishingthe committees. A professional developmentcommittee may includeadditional members, except that the majority of memberson eachsuch committee shall be classroom teachers employed by thedistrict. Any member appointed to fill a vacancy occurring priorto the expiration dateof the term for which a predecessor wasappointed shall hold office as amember for the remainder of thatterm.

The initial meeting of any professional developmentcommittee, upon electionand appointment of all committee members,shall be called by a memberdesignated by the districtsuperintendent. At this initial meeting, thecommittee shallselect a chairperson and such other officers the committeedeemsnecessary, and shall adopt rules for the conduct of its meetings.Thereafter, the committee shall meet at the call of thechairperson or uponthe filing of a petition with the districtsuperintendent signed by a majorityof the committee memberscalling for the committee to meet.

(3) In the case of a school district in which an exclusiverepresentative hasbeen established pursuant to Chapter 4117. ofthe Revised Code, professionaldevelopment committees shall beestablished in accordance with any collectivebargaining agreementin effect in the district that includes provisions forsuchcommittees.

If the collective bargaining agreement does not specify adifferent method forthe selection of teacher members of thecommittees, the exclusiverepresentative of the district'steachers shall select the teacher members.

If the collective bargaining agreement does not specify adifferent structurefor the committees, the board of education ofthe school district shallestablish the structure, including thenumber of committees and the number ofteacher and administrativemembers on each committee; the specificadministrative members tobe part of each committee; whether the scope of thecommitteeswill be district levels, building levels, or bytype of grade oragelevels for which educator licenses are designated; the lengthsof terms formembers; the manner of filling vacancies on thecommittees; and the frequencyand time and place of meetings.However, in all cases, except asprovided in division (C)(4) ofthis section, there shall be amajority of teacher members of anyprofessional development committee, thereshall be at least fivetotal members of any professional developmentcommittee, and theexclusive representative shall designate replacementmembers inthe case of vacancies among teacher members, unless the collectivebargaining agreement specifies a different method of selectingsuchreplacements.

(4) Whenever anadministrator's coursework plan is beingdiscussed or votedupon, the local professional developmentcommittee shall, at therequest of one of its administrativemembers, cause a majorityof the committee to consist ofadministrative members byreducing the number of teacher membersvoting on theplan.

(D)(1) The department of education, educational servicecenters,county boards of mental retardation and developmentaldisabilities, regional professional development centers, specialeducation regional resource centers, college and universitydepartments of education, head start programs, the eTech Ohio ~~SchoolNet~~commission, and the Ohio education computer network may establishlocal professional development committees to determine whether thecourseworkproposed by theiremployees who are licensed orcertificated under this section or section3319.222 of the RevisedCode meet the requirements of therules adopted under thissection. They may establish local professionaldevelopmentcommittees on their own or incollaboration with a school districtor other agency having authority toestablish them.

Local professional development committees established bycountyboards of mental retardation and developmental disabilitiesshall bestructured in a manner comparable to the structuresprescribed forschool districts in divisions (C)(2) and (3) ofthis section, asshall the committees established by any otherentity specified indivision (D)(1) of this section that provideseducationalservices by employing or contracting for services ofclassroom teacherslicensed orcertificated under this section orsection 3319.222 of the RevisedCode. All other entitiesspecified in division (D)(1) of thissection shall structure theircommittees in accordance with guidelineswhich shall be issued bythe state board.

(2) Any public agency that is not specified in division(D)(1) ofthis section but provides educational services andemploys orcontracts for services of classroom teachers licensedorcertificated under this section or section 3319.222 of theRevisedCode may establish a local professional developmentcommittee,subject to the approval of the department of education.The committee shallbe structured inaccordance with guidelinesissued by the state board.

Sec. 3319.235. (A) The standards for the preparation of teachers adoptedunder section 3319.23 of the Revised Code shall require any institution thatprovides a course of study for the training of teachers to ensure thatgraduates of such course of study are skilled at integrating educationaltechnology in the instruction of children, as evidenced by the graduate havingeither demonstrated proficiency in such skills in a manner prescribed by thedepartment of education or completed a course that includes training in suchskills.

(B) The eTech Ohio ~~SchoolNet~~ commission~~,established pursuant to section 3301.80 of the Revised Code,~~ shallestablish model professional development programs to assist teachers whocompleted theirteacher preparation prior to the effective date of division (A) ofthis section to become skilled at integrating educational technology in theinstruction of children. The commission shall providetechnical assistance toschool districts wishing to establish such programs.

Sec. 3319.55. (A) A grant program is hereby established torecognize and reward teachers in public and chartered nonpublic schools who hold valid teachingcertificates or licenses issued by the national board for professionalteachingstandards. The superintendent of public instruction shall administer thisprogram in accordance with this section and rules which the state board ofeducation shall adopt in accordance with Chapter 119. of the Revised Code.

In each fiscal year that the general assembly appropriates funds forpurposes of this section, the superintendent of public instruction shall awarda grant to each person who, by the first day of April of that yearand inaccordance with the rules adopted under this section, submits to thesuperintendent evidence indicating all of the following:

(1) The person holds a valid certificate or license issued by the nationalboard for professional teaching standards;

(2) The person has been employed full-time as a teacher by the board ofeducation of a school district or by a chartered nonpublic school in this state during the current school year;

(3) The date the person was accepted into the national board certification or licensure program.

An individual may receive a grant under this section in each fiscal year theperson is eligible for a grant and submits evidence of that eligibility inaccordance with this section. No person may receive a grant after the expiration of the person's initial certification or license issued by the national board.

(B) The amount of the grant awarded to each eligible person underdivision (A) of this section in any fiscal year shall equal the following:

(1) Twothousand five hundred dollars for any teacher accepted as a candidate for certification or licensure by the national board on or before May 31, 2003, and issued a certificate or license by the national board on or before December 31, 2004;

(2) One thousand dollars for any other teacher issued a certificate or license by the national board.

However, if the funds appropriated forpurposes of this section in any fiscal year are not sufficient to award thefull grant amount to each person who is eligible in that fiscal year, the superintendent shall prorate theamount of the grant awarded in that fiscal year to each eligible person.

Sec. 3323.021. As used in this section,"participatingcounty MR/DD board" means acounty board of mental retardation anddevelopmentaldisabilities electing to participate in theprovision of orcontracting for educational services for childrenunder division(D) of section 5126.05 of the Revised Code.

(A) When a school district, educational servicecenter, orparticipating countyMR/DD board enters into anagreement orcontract with another school district, educationalservice center,or participating countyMR/DD board to provideeducationalservices to a disabled child during a school year,both of thefollowing shall apply:

(1) Beginning with fiscal year 1999, if the provider of theservicesintends to increasethe amount it charges for some or allof those services duringthe next school year or if the providerintends to ceaseoffering all or part of those services during thenext schoolyear, the provider shall notify the entity for whichtheservices are provided of these intended changes no later thatthe first day of March of thecurrent fiscal year.

(2) Beginning with fiscal year 1999, if the entity for whichservices areprovided intendsto cease obtaining those servicesfrom the provider for the nextschool year or intends to changethe type or amount of servicesit obtains from the provider forthe next school year, theentity shall notify the service providerof these intendedchanges no later than the first day ofMarch ofthe current fiscalyear.

(B) School districts,educational service centers,participating countyMR/DD boards, and otherapplicablegovernmental entities shall collaborate wherepossible to maximizefederal sources of revenue~~, including thecommunity alternativefunding system of the medical assistanceprogram established underChapter 5111. of theRevisedCode,~~ to provide additionalfunds forspecial education related services for disabledchildren.Annually, each school district shall report to the department ofeducation any amounts of money the district received through suchmedicalassistance program.

(C) The state board ofeducation, the department of mentalretardation anddevelopmental disabilities, and the department ofjob and familyservicesshall develop working agreements forpursuing additional fundsfor services for disabled children.

Sec. 3323.091. (A) The department of mental health, thedepartment of mental retardation and developmental disabilities,the department of youth services, and the department ofrehabilitation and correction shall establish and maintainspecialeducation programs for handicapped children ininstitutions undertheir jurisdiction according to standardsadopted by the stateboard of education. ~~The~~

(B) The superintendent ofeach state institution required to provide services under division (A) of this section, and each county MR/DD board,providing special education for handicapped preschool children under this chaptermay apply to thestate department of education for unit funding,which shall bepaid in accordance with sections3317.052and3317.053 of theRevised Code.

~~(B) On~~ The superintendent of each state institution required to provide services under division (A) of this section may apply to the department of education for special education and related services weighted funding for handicapped children other than handicapped preschool children, calculated in accordance with section 3317.201 of the Revised Code.

Each county MR/DD board providing special education for handicapped children other than handicapped preschool children may apply to the department of education for base cost and special education and related services weighted funding calculated in accordance with section 3317.20 of the Revised Code.

(C) In addition to the authorization to apply for state funding described in division (B) of this section, each state institution required to provide services under division (A) of this section is entitled to tuition payments calculated in the manner described in division (C) of this section.

On or before the thirtieth day of June of each year,thesuperintendent of each institution that during the schoolyearprovided special education pursuant to this section shallpreparea statement for each handicapped child under twenty-twoyears ofage who has received special education. The statementshallcontain the child's name and the name of the child's schooldistrict of residence. Within sixty days after receipt of suchstatement, the department of education shall perform one of thefollowing:

(1) For any child except a handicapped preschool childdescribed in division ~~(B)~~(C)(2) of this section, pay to theinstitution submitting the statement an amount equal to thetuition calculated under division (A) of section 3317.08 of theRevised Code for the period covered by the statement, and deductthe same from the amount of state funds, if any, payable undersections 3317.022 and 3317.023 of the Revised Code, to thechild'sschool district of residence or, if the amount of suchstate fundsis insufficient, require the child's school districtof residenceto pay the institution submitting the statement anamount equal tothe amount determined under this division.

(2) For any handicapped preschool child not included in aunit approved under division (B) of section 3317.05 of theRevisedCode, perform the following:

(a) Pay to the institution submitting the statement anamount equal to the tuition calculated under division (B) ofsection 3317.08 of the Revised Code for the period covered by thestatement, except that in calculating the tuition under thatsection the operating expenses of the institution submitting thestatement under this section shall be used instead of theoperating expenses of the school district of residence;

(b) Deduct from the amount of state funds, if any, payableunder sections 3317.022 and 3317.023 of the Revised Code to thechild's school district of residence an amount equal to theamountpaid under division ~~(B)~~(C)(2)(a) of this section.

Sec. 3323.14. This section does not apply to anyhandicapped preschool child except if included in a unit approvedunder division (B) of section 3317.05 of the Revised Code.

(A) Where a child who is a school resident of one schooldistrict receives special education from another district and theper capita cost to the educating district for thatchild exceeds the sum of the amount received by theeducating district for that child underdivision (A) ofsection 3317.08 of the Revised Code and the amountreceived by the district from the state board of education for thatchild, then the board ofeducation of the district of residence shall pay ~~directly~~ to theboard of the school district that is providing the specialeducation such excess cost as is determined by using aformula approved by the department of education and agreed upon incontracts entered into by the boards of the district concerned atthe time the district providing such special education acceptsthe child for enrollment. The department of education shallcertify the amount of the payments under Chapter 3317. of theRevised Code for such handicapped pupils for each school yearending on the thirtieth day of July.

(B) In the case of a child described in division (A) of this section who has been placed in a home, as defined in section 3313.64 of the Revised Code, pursuant to the order of a court and who is not subject to section 3323.141 of the Revised Code, the district providing the child with special education and related services may charge to the child's district of residence the excess cost determined by formula approved by the department, regardless of whether the district of residence has entered into a contract with the district providing the services. If the district providing the services chooses to charge excess costs, the district may report the amount calculated under this division to the department.

(C) If a district providing special education for a child reports an amount for the excess cost of those services, as authorized and calculated under division (A) or (B) of this section, the department shall pay that amount of excess cost to the district providing the services and shall deduct that amount from the child's district of residence in accordance with division (N) of section 3317.023 of the Revised Code.

Sec. 3323.16. No unit for deaf children shall be disapproved for fundingunder division (B) ~~or (D)(1)~~ of section3317.05 of the Revised Code on the basis of themethods of instruction used in educational programs in the school district orinstitution to teach deaf children to communicate, and no preference inapproving units for funding shall be given for teachingdeaf children by the oral, manual, total communication, or other method ofinstruction.

Sec. ~~41.36~~ 3323.19. (A) ~~In the 2004-2005 and 2005-2006 school years, within~~ Within three months after a student identified with disabilities begins receiving services for the first time under an individualized education program~~, as defined in section 3323.01 of the Revised Code~~, the school district in which that student is enrolled shall require the student to undergo a comprehensive eye examination performed either by an optometrist licensed under Chapter 4725. of the Revised Code or by a physician authorized under Chapter 4731. of the Revised Code to practice medicine and surgery or osteopathic medicine and surgery who is comprehensively trained and educated in the treatment of the human eye, eye disease, or comprehensive vision services, unless the student underwent such an examination within the nine-month period immediately prior to being identified with disabilities.

However, no student who has not undergone the eye examination required under this section shall be prohibited from initiating, receiving, or continuing to receive services prescribed in the student's individualized education program.

(B) The superintendent of each school district or the superintendent's designee may determine fulfillment of the requirement prescribed in division (A) of this section based on any special circumstances of the student, the student's parent, guardian, or family that may prevent the student from undergoing the eye examination prior to beginning special education services.

(C) Except for a student who may be entitled to a comprehensive eye examination in the identification of the student's disabilities, in the development of the student's individualized education program, or as a related service under the student's individualized education program, neither the state nor any school district shall be responsible for paying for the eye examination required by this section.

Sec. 3323.20. On July 1, 2006, and on each first day of July thereafter, the department of education shall electronically report to the general assembly the number of handicapped preschool children who received services for which the department made a payment to any provider during the previous fiscal year, disaggregated according to each category of handicap described in divisions (A) to (F) of section 3317.013 of the Revised Code, regardless of whether payment for services was based on the multiples prescribed in those divisions.

Sec. 3323.30. The Ohio center for autism and low incidence is hereby established within the department of education's office for exceptional children, or any successor of that office. The center shall administer programs and coordinate services for infants, preschool and school-age children, and adults with autism and low incidence disabilities. The center's principal focus shall be programs and services for persons with autism. The center shall be under the direction of an executive director, appointed by the superintendent of public instruction in consultation with the advisory board established under section 3323.31 of the Revised Code. The department shall use state and federal funds appropriated to the department for operation of the center.

As used in this section and in sections 3323.31 to 3323.33 of the Revised Code, "autism and low incidence disabilities" includes any of the following:

Sec. 3323.31. The superintendent of public instruction shall establish an advisory board to assist and advise the department of education in the operation of the Ohio center for autism and low incidence. As determined by the superintendent, the advisory board shall consist of individuals who are stakeholders in the service to persons with autism and low incidence disabilities, including, but not limited to, the following:

Sec. 3323.32. The Ohio center for autism and low incidence shall do all of the following:

(A) Collaborate and consult with state agencies that serve persons with autism and low incidence disabilities;

(B) Collaborate and consult with institutions of higher education in development and implementation of courses for educators and other professionals serving persons with autism and low incidence disabilities;

(D) Create and implement programs for professional development, technical assistance, intervention services, and research in the treatment of persons with autism and low incidence disabilities;

(E) Create a regional network for communication and dissemination of information among educators and professionals serving persons with autism and low incidence disabilities. The regional network shall address educational services, evaluation, diagnosis, assistive technology, family support, leisure and recreational activities, transition, employment and adult services, and medical care for persons with autism and low incidence disabilities.

(F) Develop a statewide clearinghouse for information about autism spectrum disorders and low incidence disabilities, as described in section 3323.33 of the Revised Code.

Sec. 3323.33. In developing a clearinghouse for information about autism spectrum disorders and low incidence disabilities, as required under section 3323.32 of the Revised Code, the Ohio center for autism and low incidence shall do all of the following:

(B) Monitor information on resources, trends, policies, services, and current educational interventions;

(C) Respond to requests for information from parents and educators of children with autism and low incidence disabilities.

Sec. 3324.10. (A) Prior to June 30, 2006, the state board of education shall adopt a model student acceleration policy addressing recommendations in the department of education's 2005 study conducted under the gifted research and demonstration grant program. The policy shall address, but not be limited to, whole grade acceleration, subject area acceleration, and early high school graduation.

(B) The board of education of each city, local, and exempted village school district shall implement a student acceleration policy to take effect beginning in the 2006-2007 school year. The policy shall either be the model adopted by the state board under division (A) of this section or a policy covering similar issues that is adopted by the district board.

Sec. 3325.10. The state school for the blind may receive and administer any federal funds relating to the education of blind or visually impaired students. The school for the blind also may accept and administer any gifts, donations, or bequests made to it for programs or services relating to the education of blind or visually impaired students.

Sec. 3325.11. There is hereby created in the state treasury the state school for the blind student activity and work-study fund. Moneys received from donations, bequests, the school vocational program, and any other moneys designated for deposit in the fund by the superintendent of the state school for the blind shall be credited to the fund. Notwithstanding section 3325.01 of the Revised Code, the approval of the state board of education is not required to designate money for deposit into the fund. The school for the blind shall use money in the fund for school operating expenses, including, but not limited to, personal services, maintenance, and equipment related to student support, activities, and vocational programs, and for providing scholarships to students for further training upon graduation.

Sec. 3325.12. There is hereby created the state school for the blind student account fund, which shall be in the custody of the treasurer of state but shall not be part of the state treasury. The fund shall consist of all moneys received from the parents or guardians of students attending the state school for the blind that are designated for use by the respective students in activities of their choice. The treasurer of state may invest any portion of the fund not needed for immediate use in the same manner as, and subject to laws regarding the investment of, state funds. The treasurer of state shall disburse money from the fund on order of the superintendent of the state school for the blind or the superintendent's designee. All investment earnings of the fund shall be credited to the fund and allocated among the student accounts in proportion to the amount invested from each student's account.

Sec. 3325.15. The state school for the deaf may receive and administer any federal funds relating to the education of deaf or hearing-impaired students. The school for the deaf also may accept and administer any gifts, donations, or bequests given to it for programs or services relating to the education of deaf or hearing-impaired students.

Sec. 3325.16. There is hereby created in the state treasury the state school for the deaf educational program expenses fund. Moneys received by the school from donations, bequests, student fundraising activities, fees charged for camps and workshops, gate receipts from athletic contests, and the student work experience program operated by the school, and any other moneys designated for deposit in the fund by the superintendent of the school, shall be credited to the fund. Notwithstanding section 3325.01 of the Revised Code, the approval of the state board of education is not required to designate money for deposit into the fund. The state school for the deaf shall use moneys in the fund for educational programs, after-school activities, and expenses associated with student activities and clubs.

Sec. 3325.17. There is hereby created the state school for the deaf student account fund, which shall be in the custody of the treasurer of state but shall not be part of the state treasury. The fund shall consist of all moneys received from the parents or guardians of students attending the state school for the deaf that are designated for use by the respective students in activities of their choice. The treasurer of state may invest any portion of the fund not needed for immediate use in the same manner as, and subject to laws regarding the investment of, state funds. The treasurer of state shall disburse money from the fund on order of the superintendent of the state school for the deaf or the superintendent's designee. All investment earnings of the fund shall be credited to the fund and allocated among the student accounts in proportion to the amount invested from each student's account.

Sec. 3327.01. Notwithstanding division (D) of section3311.19 and division (D) of section 3311.52 of the Revised Code,this section and sections 3327.011, 3327.012, and 3327.02 ofthe RevisedCode do not apply to any joint vocational orcooperativeeducation school district.

In all city, local, and exempted village school districtswhere resident school pupils in grades kindergarten through eightlive more than two miles from the school for which the stateboardof education prescribes minimum standards pursuant todivision (D)of section 3301.07 of the Revised Code and to whichthey areassigned by the board of education of the district ofresidence orto and from the nonpublicor community school which they attendthe board of education shall provide transportation for suchpupils to and from such school exceptas provided insection 3327.02 of the Revised Code.

In all city, local, and exempted village school districts where pupil transportation is required under a career-technical plan approved by the state board of education under section 3313.90 of the Revised Code, for any student attending a career-technical program operated by another school district, including a joint vocational school district, as prescribed under that section, the board of education of the student's district of residence shall provide transportation from the public high school operated by that district to which the student is assigned to the career-technical program.

In all city, local, and exempted village school districtstheboard may provide transportation for resident school pupilsingrades nine through twelve to and from the high school towhichthey are assigned by the board of education of the districtofresidence or to and from thenonpublic or communityhigh school which theyattend for which the state board ofeducation prescribes minimumstandards pursuant to division (D) ofsection 3301.07 of theRevised Code.

A board of education shall not be required to transportelementary or high school pupils to and from anonpublic or community schoolwhere such transportation wouldrequire more than thirty minutesof direct travel time as measuredby school bus from the public school building to which the pupils would be assigned if attending the public school designated by thedistrict of residence.

Where it is impractical to transport a pupil by schoolconveyance, a board of education mayoffer payment, in lieu ofproviding suchtransportationin accordance with section 3327.02 of the Revised Code.

In all city, local, and exempted village school districtstheboard shall provide transportation for all children who aresocrippled that they are unable to walk to and from the schoolforwhich the state board of education prescribes minimumstandardspursuant to division (D) of section 3301.07 of theRevised Codeand which they attend. In case of dispute whetherthe child isable to walk to and from the school, the healthcommissioner shallbe the judge of such ability. In all city,exempted village, andlocal school districts the board shallprovide transportation toand from school or special educationclasses for educable mentallyretarded children in accordancewith standards adopted by thestate board of education.

When transportation of pupils is provided the conveyanceshall be run on a time schedule that shall be adopted and put inforce by the board not later than ten days after the beginning ofthe school term.

The cost of any transportation service authorized by thissection shall be paid first out of federal funds, if any,available for the purpose of pupil transportation, and secondlyout of state appropriations, in accordance with regulationsadopted by the state board of education.

No transportation of any pupils shall be provided by anyboard of education to or from any school which in the selectionofpupils, faculty members, or employees, practicesdiscriminationagainst any person on the grounds of race, color,religion, ornational origin.

Sec. 3332.092. Any school subject to this chapter receivingmoney undersection 3333.12 or 3333.122 of the Revised Code on behalf of astudent who is determinedby the state board ofcareer colleges and schools to be ineligible undersuch section because the program in whichthe student isenrolled does not lead to an associate or baccalaureate degree,shall beliable to the state for the amountspecified in section3333.12 or 3333.122 of the Revised Code. The state board ofcareer colleges and schools shall suspend thecertificate of registrationof a school receiving money undersection 3333.12 or 3333.122 of the Revised Code for suchineligible studentuntil such time as the money is repaid to theOhio board ofregents.

(A) Make studies of state policy in the field of highereducation and formulate a master plan for higher education forthestate, considering the needs of the people, the needs of thestate, and the role of individual public and private institutionswithin the state in fulfilling these needs;

(B)(1) Report annually to the governor and the generalassembly on the findings from its studies and the master plan forhigher education for the state;

(2) Report at least semiannually to the general assembly andthegovernor the enrollment numbers at each state-assistedinstitution of highereducation.

(D) Approve or disapprove the establishment of statetechnical colleges or any other state institution of highereducation;

(E) Recommend the nature of the programs, undergraduate,graduate, professional, state-financed research, and publicservices which should be offered by the state colleges,universities, and other state-assisted institutions of highereducation in order to utilize to the best advantage theirfacilities and personnel;

(F) Recommend to the state colleges, universities, andotherstate-assisted institutions of higher education graduate orprofessional programs, including, but not limited to, doctor ofphilosophy, doctor of education, and juris doctor programs, thatcould be eliminated because they constitute unnecessaryduplication, as shall be determined using the process developedpursuant to this section, or for other good and sufficient cause.For purposes of determining the amounts of any stateinstructionalsubsidies paid to these colleges, universities, andinstitutions,the board may exclude students enrolled in anyprogram that theboard has recommended for elimination pursuantto this divisionexcept that the board shall not exclude any suchstudent whoenrolled in the program prior to the date on whichthe boardinitially commences to exclude students under thisdivision. Theboard of regents and these colleges, universities,andinstitutions shall jointly develop a process for determiningwhichexisting graduate or professional programs constituteunnecessaryduplication.

(G) Recommend to the state colleges, universities, andotherstate-assisted institutions of higher education programswhichshould be added to their present programs;

(H) Conduct studies for the state colleges, universities,and other state-assisted institutions of higher education toassist them in making the best and most efficient use of theirexisting facilities and personnel;

(I) Make recommendations to the governor and generalassembly concerning the development of state-financed capitalplans for higher education; the establishment of new statecolleges, universities, and other state-assisted institutions ofhigher education; and the establishment of new programs at theexisting state colleges, universities, and other institutions ofhigher education;

(J) Review the appropriation requests of the publiccommunity colleges and the state colleges and universities andsubmit to the office of budget and management and to thechairpersons of the finance committees of the house ofrepresentativesand of the senate its recommendations in regard tothe biennial highereducation appropriation for the state,including appropriationsfor the individual state colleges anduniversities and publiccommunity colleges. For the purpose ofdetermining the amountsof instructional subsidies to be paid tostate-assisted collegesand universities, the board shall define"full-time equivalentstudent" by program per academic year. Thedefinition may takeinto account the establishment of minimumenrollment levels intechnical education programs below whichsupport allowances willnot be paid. Except as otherwise providedin this section, theboard shall make no change in the definitionof "full-timeequivalent student" in effect on November 15, 1981,which wouldincrease or decrease the number of subsidy-eligiblefull-timeequivalent students, without first submitting a fiscalimpactstatement to the president of the senate, the speaker ofthehouse of representatives,~~the legislative budget office of~~ thelegislative service commission, and the director of budget andmanagement. The board shall work in close cooperation with thedirector of budget and management in this respect and in allothermatters concerning the expenditures of appropriated fundsby statecolleges, universities, and other institutions of highereducation.

(K) Seek the cooperation and advice of the officers andtrustees of both public and private colleges, universities, andother institutions of higher education in the state in performingits duties and making its plans, studies, and recommendations;

(L) Appoint advisory committees consisting of personsassociated with public or private secondary schools, members ofthe state board of education, or personnel of the statedepartmentof education;

(M) Appoint advisory committees consisting of college anduniversity personnel, or other persons knowledgeable in the fieldof higher education, or both, in order to obtain their advice andassistance in defining and suggesting solutions for the problemsand needs of higher education in this state;

(N) Approve or disapprove all new degrees and new degreeprograms at all state colleges, universities, and otherstate-assisted institutions of higher education;

(O) Adopt such rules as are necessary to carry out itsduties and responsibilities;

(P) Establish and submit to the governor and the generalassembly a clear and measurable set of goals and timetables fortheir achievement for each program under the supervision of theboard that is designed to accomplish any of the following:

In July of each odd-numbered year, the board of regentsshallsubmit to the governor and the general assembly a report onprogress made toward these goals.

(Q) Make recommendations to the governor and the generalassembly regarding the design and funding of the studentfinancialaid programs specified in sections 3333.12, 3333.122, 3333.21 to3333.27,and 5910.02 of the Revised Code;

(R) Participate in education-related state or federalprograms on behalf of the state and assume responsibility for theadministration of such programs in accordance with applicablestate or federal law;

(S) Adopt rules for student financialaid programs asrequired by sections 3333.12, 3333.122, 3333.21 to3333.27, 3333.28,3333.29, and 5910.02 of theRevised Code, and perform any otheradministrative functions assigned to the board by thosesections;

(T) Administer contractsunder sections 3702.74 and 3702.75of theRevised Code in accordance with rulesadopted by thedirector of health under section 3702.79 of theRevised Code;

(U) Conduct enrollment audits of state-supportedinstitutions ofhigher education;

(V) Appoint consortiums of college and university personneltoparticipate in the development and operation of statewidecollaborativeefforts, including the Ohio supercomputer center,the Ohioacademic resources network, OhioLink, and theOhiolearning network. For each consortium, the board shall designateacollegeor university to serve as that consortium's fiscalagent,financial officer, and employer. Any funds appropriated totheboard for consortiums shall be distributed to the fiscalagentsfor the operation of the consortiums. A consortium shallfollowthe rules of the college or university that serves as itsfiscalagent.

Sec. 3333.044. (A) The Ohio board of regents maycontract with any consultants that are necessary for thedischarge of the board's duties under this chapter.

(B) The Ohio board of regents maypurchase, upon the terms that the board determines to beadvisable, one or more policies of insurance from insurersauthorized to do business in this state that insure consultantswho have contracted with the board under division(A) of this section or membersof an advisory committee appointed under section 3333.04 of theRevised Code, with respect to theactivities of the consultants or advisory committee members inthe course of the performance of their responsibilities asconsultants or advisory committee members.

(C) Subject to the approval of thecontrolling board, the Ohioboard of regents may contract with any entities for thedischarge of the board's duties and responsibilities under anyof the programs established pursuant to sections 3333.12, 3333.122,3333.21 to 3333.28, 3702.71 to 3702.81, and 5120.55, andChapter 5910. of theRevised Code. The board shall notenter into a contract under this division unless the proposedcontractor demonstrates that its primary purpose is to promoteaccess to higher education by providing student financialassistance through loans, grants, or scholarships, and byproviding high quality support services and information tostudents and their families with regard to such financialassistance.

Chapter 125. of the Revised Code does not apply tocontracts entered into pursuant to this section. In awardingcontracts under this division, the board shall consider factorssuch as the cost of the administration of the contract, theexperience of the contractor, and the contractor's ability toproperly execute the contract.

Sec. 3333.047. With regard to any state student financial aid program established in this chapter, Chapter 5910., or section 5919.34 of the Revised Code, the Ohio board of regents shall conduct audits to:

(A) Determine the validity of information provided by students and parents regarding eligibility for state student financial aid. If the board determines that eligibility data has been reported incorrectly or inaccurately, and where the board determines an adjustment to be appropriate, the institution of higher education shall adjust the financial aid awarded to the student.

(B) Ensure that institutions of higher education are in compliance with the board's rules governing state student financial aid programs. An institution that fails to comply with the board's rules in the administration of any state student financial aid program shall be fully liable to reimburse the board for the unauthorized use of student financial aid funds.

(a) An Ohio resident enrolled in an undergraduate program before the 2006-2007 academic year;

(i) An accredited institution of higher education in thisstate that meets the requirements of Title VI of the Civil RightsAct of 1964 and is state-assisted, is nonprofit and has acertificate of authorization from the Ohio board of regentspursuant to Chapter 1713. of the Revised Code, has acertificateof registration from the state board ofcareer colleges and schools and program authorizationto award anassociate orbachelor's degree, or is a privateinstitution exemptfromregulation under Chapter 3332. of theRevised Code asprescribedin section 3333.046 of the RevisedCode. Students whoattend aninstitution that holds a certificateof registrationshall beenrolled in a program leading to anassociate orbachelor'sdegreefor which associate or bachelor'sdegree programtheinstitutionhas program authorization issuedunder section3332.05 of theRevised Code.

(ii) A technical education program of at least two yearsduration sponsored by a private institution of higher educationinthis state that meets the requirements of Title VI of theCivilRights Act of 1964.

(c) Enrolled as a full-time student or enrolled as a lessthan full-time student for the term expected to be thestudent'sfinal termof enrollment and is enrolled for the number of credithoursnecessary to complete the requirements of the program inwhichthe student is enrolled.

(2)"Gross income" includes all taxable and nontaxableincomeof the parents, the student, and the student's spouse,exceptincome derived from an Ohio academic scholarship,incomeearned bythe student between the last day of the springterm andthe firstday of the fall term,and other income exclusionsdesignated bythe board. Gross incomemay be verified to theboard by theinstitution in which the student isenrolled usingthe federalfinancial aid eligibility verificationprocessor byother meanssatisfactory to the board.

(3)"Resident,""full-time student,""dependent,""financially independent," and"accredited" shall be defined byrules adopted by the board.

(B) The Ohio board of regents shall establish andadministeran instructional grant program and may adopt rules tocarry outthis section. The general assembly shall support theinstructional grant program by such sums and in such manner as itmay provide, but the board may also receive funds from othersources to support the program. If the amounts available forsupport of the program are inadequate to provide grants to alleligible students, preference in the payment of grants shall begiven in terms of income, beginning with the lowest incomecategory of gross income and proceeding upward by category to thehighest gross income category.

An instructional grant shall be paid to an eligible studentthrough the institution in which the student is enrolled,exceptthat noinstructional grant shall be paid to any person serving aterm ofimprisonment. Applications forsuch grants shall be madeas prescribed by the board, andsuch applications may be made inconjunction with and upon thebasis of information provided inconjunction with studentassistance programs funded by agencies ofthe United Statesgovernment or from financial resources of theinstitution ofhigher education. The institution shall certifythat the studentapplicant meets the requirements set forth indivisions (A)(1)(b)and (c) of this section. Instructional grantsshall be providedto an eligible student only as long as thestudent is makingappropriate progress toward a nursing diploma oran associate orbachelor's degree. Nostudent shall be eligibleto receive a grant for more than tensemesters, fifteen quarters,or the equivalent of five academicyears. A grant made to aneligible student on the basis of lessthan full-time enrollmentshall be based on the number of credithours for which the studentis enrolled and shall be computed inaccordance with a formulaadopted by the board. No studentshall receive more than onegrant on the basis of less thanfull-time enrollment.

An instructional grant shall not exceed the totalinstructional and general charges of the institution.

(C) The tables in this division prescribe the maximum grantamounts covering two semesters, three quarters, or a comparableportion of one academic year. Grant amounts for additionaltermsin the same academic year shall be determined underdivision (D)of this section.

For a full-time student who is a dependent andenrolled in anonprofit educational institution that is not astate-assistedinstitution and that has a certificate ofauthorization issuedpursuant to Chapter 1713. of the RevisedCode, the amount of theinstructional grant fortwo semesters, three quarters, or acomparable portion ofthe academic yearshall be determined inaccordance with the following table:

For a full-time student who is financially independent andenrolled in a nonprofit educational institution that is not astate-assisted institution and that has a certificate ofauthorization issued pursuant to Chapter 1713. of the RevisedCode, the amount of the instructional grant fortwo semesters,three quarters, or a comparable portion ofthe academic yearshallbe determined in accordance with the following table:

For a full-time student who is a dependent and enrolled inaneducational institution that holds a certificate ofregistrationfrom the state board ofcareercolleges and schoolsor aprivate institution exempt fromregulation under Chapter 3332. ofthe Revised Code as prescribedin section 3333.046 of the RevisedCode, theamount of theinstructional grant fortwo semesters,threequarters, or acomparable portion ofthe academic year shallbedetermined inaccordance with thefollowing table:

For a full-time student who is financially independent andenrolled in an educational institution that holds a certificateofregistration from the state board ofcareer colleges and schoolsor a private institutionexempt from regulation underChapter 3332. of the Revised Code asprescribed in section3333.046 of the Revised Code, the amount ofthe instructionalgrant fortwosemesters, three quarters, or acomparable portionofthe academicyear shall be determined inaccordance with thefollowing table:

For a full-time student who is a dependent and enrolled inastate-assisted educational institution, the amount of theinstructional grant fortwo semesters, three quarters, or acomparable portion ofthe academic year shall be determined inaccordance with the following table:

For a full-time student who is financially independent andenrolled in a state-assisted educational institution, the amountof the instructional grant fortwo semesters, three quarters, or acomparable portion ofthe academic year shall bedetermined inaccordance with the following table:

(D) For a full-time student enrolled in an eligibleinstitution for a semester or quarter in addition to the portionof theacademic year covered by a grant determined under division(C) of this section, themaximum grant amount shall be apercentage of the maximumprescribed in the applicable table ofthat division. Themaximum grant for a fourth quarter shall beone-third of themaximum amount prescribed under that division.The maximumgrant for a third semester shall be one-half of themaximumamount prescribed under that division.

(E) No grant shall be made to any student in a course ofstudy in theology, religion, or other field of preparation for areligious profession unless such course of study leads to anaccredited bachelor of arts, bachelor of science, associate ofarts, or associate of science degree.

(F)(1) Except as provided in division (F)(2) of thissection, no grant shall be made to any student for enrollmentduring a fiscal year in an institution with acohort default ratedetermined by the UnitedStates secretary of educationpursuant tothe"Higher EducationAmendments of 1986," 100Stat. 1278, 1408,20U.S.C.A. 1085, as amended, as ofthe fifteenth day of Junepreceding the fiscal year,equal to or greater than thirty percent for each of the preceding twofiscal years.

(a) Any student enrolled in an institution that under thefederal law appeals its loss of eligibility for federal financialaid and the United States secretary of education determines itscohort default rate after recalculation is lower than the ratespecifiedin division (F)(1) of this section or the secretarydetermines due to mitigating circumstances the institution maycontinue toparticipate in federal financial aid programs. Theboardshall adopt rules requiring institutions to provideinformationregarding an appeal to the board.

(b) Any student who has previously received a grant underthis section who meets all other requirements of this section.

(3) The board shall adopt rules for the notificationof allinstitutions whose students will be ineligible toparticipate inthe grant program pursuant to division(F)(1) of this section.

(4) A student's attendance at an institution whosestudentslose eligibility for grants under division (F)(1)of this sectionshall not affect that student's eligibility toreceive a grantwhen enrolled in another institution.

(G) Institutions of higher education that enroll studentsreceiving instructional grants under this section shall report tothe board all students who have received instructionalgrants butare no longer eligible for all or part of such grantsand shallrefund any moneys due the state within thirty daysafter thebeginning of the quarter or term immediately followingthe quarteror term in which the student was no longer eligibleto receive allor part of the student's grant. There shallbe an interestchargeof one per cent per month on all moneys due and payableafter suchthirty-day period. The board shall immediatelynotify the officeof budget and management and thelegislative service commissionof allrefunds so received.

Sec. 3333.121. There is hereby established in the state treasury the ~~instructional grant~~ state need-based financial aid reconciliation fund, which shall consist of refunds of instructional grant payments made pursuant to section 3333.12 of the Revised Code and refunds of state need-based financial aid payments made pursuant to section 3333.122 of the Revised Code. Revenues credited to the fund shall be used by the Ohio board of regents to pay to higher education institutions any outstanding obligations from the prior year owed for the Ohio instructional grant program and the Ohio college opportunity grant program that are identified through the annual reconciliation and financial audit. Any amount in the fund that is in excess of the amount certified to the director of budget and management by the board of regents as necessary to reconcile prior year payments under the program shall be transferred to the general revenue fund.

(a) An Ohio resident who first enrolls in an undergraduate program in the 2006-2007 academic year or thereafter;

(2) A student who participated in either the early college high school program administered by the department of education or in the post-secondary enrollment options program pursuant to Chapter 3365. of the Revised Code before the 2006-2007 academic year shall not be excluded from eligibility for a need based grant under this section.

(3)"Resident," "expected family contribution" or "EFC," "full-time student," "three-quarters-time student," "half-time student," "one-quarter-time student," and"accredited" shall be defined byrules adopted by the board.

(B) The Ohio board of regents shall establish andadministera needs-based financial aid program based on the United States department of education's method of determining financial need and may adopt rules tocarry outthis section. The program shall be known as the Ohio college opportunity grant program. The general assembly shall support theneeds-based financial aid program by such sums and in such manner as itmay provide, but the board may also receive funds from othersources to support the program. If the amounts available forsupport of the program are inadequate to provide grants to alleligible students, preference in the payment of grants shall begiven in terms of expected family contribution, beginning with the lowest expected family contributioncategory and proceeding upward by category to thehighest expected family contribution category.

A needs-based financial aid grant shall be paid to an eligible studentthrough the institution in which the student is enrolled,exceptthat noneeds-based financial aid grant shall be paid to any person serving aterm ofimprisonment. Applications forsuch grants shall be madeas prescribed by the board, andsuch applications may be made inconjunction with and upon thebasis of information provided inconjunction with studentassistance programs funded by agencies ofthe United Statesgovernment or from financial resources of theinstitution ofhigher education. The institution shall certifythat the studentapplicant meets the requirements set forth indivisions (A)(1)(a) and (b)of this section. Needs-based financial aid grantsshall be providedto an eligible student only as long as thestudent is makingappropriate progress toward a nursing diploma oran associate orbachelor's degree. Nostudent shall be eligibleto receive a grant for more than tensemesters, fifteen quarters,or the equivalent of five academicyears. A grant made to aneligible student on the basis of lessthan full-time enrollmentshall be based on the number of credithours for which the studentis enrolled and shall be computed inaccordance with a formulaadopted by the board. No studentshall receive more than onegrant on the basis of less thanfull-time enrollment.

A needs-based financial aid grant shall not exceed the totalinstructional and general charges of the institution.

(1) "Private institution" means an institution that is nonprofit and has a certificate of authorization from the Ohio board of regents pursuant to Chapter 1713. of the Revised Code.

(2) "Career college" means either an institution that holds a certificate of registration from the state board of career colleges and schools or a private institution exempt from regulation under Chapter 3332. of the Revised Code as prescribed in section 3333.046 of the Revised Code.

Full-time students shall be eligible to receive awards according to the following table:

Three-quarters-time students shall be eligible to receive awards according to the following table:

Half-time students shall be eligible to receive awards according to the following table:

One-quarter-time students shall be eligible to receive awards according to the following table:

(b) Any student who has previously received a grant underthis section who meets all other requirements of this section.

(3) The board shall adopt rules for the notificationof allinstitutions whose students will be ineligible toparticipate inthe grant program pursuant to division(F)(1) of this section.

(G) Institutions of higher education that enroll studentsreceiving needs-based financial aid grants under this section shall report tothe board all students who have received needs-based financial aidgrants butare no longer eligible for all or part of such grantsand shallrefund any moneys due the state within thirty daysafter thebeginning of the quarter or term immediately followingthe quarteror term in which the student was no longer eligibleto receive allor part of the student's grant. There shallbe an interestchargeof one per cent per month on all moneys due and payableafter suchthirty-day period. The board shall immediatelynotify the officeof budget and management and thelegislative service commissionof allrefunds so received.

(1) "The Ohio college opportunity grant program" means the program established under section 3333.122 of the Revised Code.

(2) "Rules for the Ohio college opportunity grant program" means the rules authorized in division (S) of section 3333.04 of the Revised Code for the implementation of the program.

(B) In adopting rules for the Ohio college opportunity grant program, the Ohio board of regents may include provisions that give preferential or priority funding to low-income students who in their primary and secondary school work participate in or complete rigorous academic coursework, attain passing scores on the tests prescribed in section 3301.0710 of the Revised Code, or meet other high academic performance standards determined by the board to reduce the need for remediation and ensure academic success at the postsecondary education level. Any such rules shall include a specification of procedures needed to certify student achievement of primary and secondary standards as well as the timeline for implementation of the provisions authorized by this section.

Sec. 3333.162. (A) As used in this section, "state institution of higher education" means an institution of higher education as defined in section 3345.12 of the Revised Code.

(B) By April 15, 2007, the Ohio board of regents, in consultation with the department of education, public adult and secondary career-technical education institutions, and state institutions of higher education, shall establish criteria, policies, and procedures that enable students to transfer agreed upon technical courses completed through an adult career-technical education institution, a public secondary career-technical institution, or a state institution of higher education to a state institution of higher education without unnecessary duplication or institutional barriers. The courses to which the criteria, policies, and procedures apply shall be those that adhere to recognized industry standards and equivalent coursework common to the secondary career pathway and adult career-technical education system and regionally accredited state institutions of higher education. Where applicable, the policies and procedures shall build upon the articulation agreement and transfer initiative course equivalency system required by section 3333.16 of the Revised Code.

(C) By April 15, 2006, the board shall report to the general assembly on its progress in establishing these policies and procedures.

(A) "Eligible institution" means a nonprofit Ohioinstitution of higher education that holds a certificate ofauthorization issued under section 1713.02 of the Revised Codeandmeets the requirements of Title VI of the Civil Rights Act of1964.

(B) "Resident" and "full-time student" have the meaningsestablished for purposes of this section by rule of the Ohioboardof regents.

The board shall establish and administer a studentchoicegrant program and shall adopt rules for the administrationof theprogram.

The board may make a grant to any resident of thisstate whois enrolled as a full-time student in a bachelor'sdegree programat an eligible institution and maintains anacademic record thatmeets or exceeds the standard establishedpursuant to this sectionby rule of the board, exceptthat no grant shall be made to anyindividual who was enrolled as astudent in an institution ofhigher education on or before July1, 1984, or is serving a termof imprisonment. The grant shallnot exceed the lesser of thetotalinstructional and general charges of the institution inwhich thestudent is enrolled, or an amount equal to one-fourth ofthetotal of any state instructional subsidy amount distributed bythe board in the second fiscal year of thepreceding biennium forall full-time students enrolled inbachelor's degree programs atfour-year state-assistedinstitutions of higher education dividedby the sum of the actualnumber of full-time students enrolled inbachelor's degreeprograms at four-year state-assistedinstitutions of highereducation reported to the board for suchyear by the institutionsto which the subsidy was distributed.

The board shall prescribe the form and manner ofapplicationfor grants including the manner of certification byeligibleinstitutions that each applicant from such institutionis enrolledin a bachelor's degree program as a full-time studentand has anacademic record that meets or exceeds the standardestablished bythe board.

A grant awarded to an eligible student shall be paid to theinstitution in which the student is enrolled, and the institutionshall reduce the student's instructional and general charges bythe amount of the grant. Each grant awarded shall be proratedandpaid in equal installments at the time of enrollment for eachtermof the academic year for which the grant is awarded. Nostudentshall be eligible to receive a grant for more than tensemesters,fifteen quarters, or the equivalent of five academicyears.

The receipt of an Ohio student choice grant shall notaffecta student's eligibility for assistance, or the amount ofsuchassistance, granted under section 3315.33, 3333.12, 3333.122, 3333.22,3333.26, 5910.03, 5910.032, or 5919.34 of the Revised Code. If astudent receives assistance under one or more of such sections,the student choice grant made to the student shall notexceed thedifference between the amount of assistance received under suchsections and the total instructional and general charges of theinstitution in which the student is enrolled.

The general assembly shall support the student choice grantprogram by such sums and in such manner as it may provide, buttheboard may also receive funds from other sourcesto support theprogram.

No grant shall be made to any student enrolled in a courseofstudy leading to a degree in theology, religion, or otherfield ofpreparation for a religious profession unless the course of studyleads to an accredited bachelor of arts or bachelor of sciencedegree.

Institutions of higher education that enroll studentsreceiving grants under this section shall report to theboard thename of each student who has received sucha grant but who is nolonger eligible for all or part of such grant andshall refund allmoneys due to the state within thirty days afterthe beginning ofthe term immediately following the term in whichthe student wasno longer eligible to receive all or part of thegrant. Thereshall be an interest charge of one per cent permonth on allmoneys due and payable after such thirty-day period. Theboardshall immediately notify the office ofbudget and management and~~the legislative budget office of~~ the legislativeservicecommission of all refunds received.

Sec. 3333.28. (A) The Ohio board of regents shall establishthe nurse educationassistance program, the purpose of which shall be to make loans to studentsenrolled in prelicensure nurse education programs at institutions approved bythe board ofnursing under section 4723.06 of the Revised Code andpostlicensure nurse education programs approved by the board ofregents under section 3333.04 of the Revised Code or offered byan institution holding a certificate of authorization issued bythe board of regents under Chapter 1713. of the Revised Code. The board ofnursing shall assist the board ofregents in administering the program.

(B) There is hereby created in the state treasury thenurse education assistance fund, which shall consist of all moneytransferred to it pursuant to section 4743.05 of the RevisedCode. The fund shall be used by the board ofregents for loans made under division (A) of this section and for expensesofadministering the loan program.

(C) ~~The~~ Between July 1, 2005, and January 1, 2012, the board of regents shall distribute money in the nurse education assistance fund in the following manner:

(1)(a) Fifty per cent of available funds shall be awarded as loans to registered nurses enrolled in postlicensure nurse education programs described in division (A) of this section. To be eligible for a loan, the applicant shall provide the board with a letter of intent to practice as a faculty member at a prelicensure or postlicensure program for nursing in this state upon completion of the applicant's academic program.

(b) If the borrower of a loan under division (C)(1)(a) of this section secures employment as a faculty member of an approved nursing education program in this state within six months following graduation from an approved nurse education program, the board may forgive the principal and interest of the student's loans received under division (C)(1)(a) of this section at a rate of twenty-five per cent per year, for a maximum of four years, for each year in which the borrower is so employed. A deferment of the service obligation, and other conditions regarding the forgiveness of loans may be granted as provided by the rules adopted under division (D)(7) of this section.

(c) Loans awarded under division (C)(1)(a) of this section shall be awarded on the basis of the student's expected family contribution, with preference given to those applicants with the lowest expected family contribution. However, the board of regents may consider other factors it determines relevant in ranking the applications.

(d) Each loan awarded to a student under division (C)(1)(a) of this section shall be not less than five thousand dollars per year.

(2) Twenty-five per cent of available funds shall be awarded to students enrolled in prelicensure nurse education programs for registered nurses, as defined in section 4723.01 of the Revised Code.

(3) Twenty-five per cent of available funds shall be awarded to students enrolled in prelicensure professional nurse education programs for licensed practical nurses, as defined in section 4723.01 of the Revised Code.

After January 1, 2012, the board of regents shall determine the manner in which to distribute loans under this section.

(D) Subject to the requirements specified in division (C) of this section, the board of regents shall adoptrules in accordance with Chapter 119. of the Revised Code establishing:

(3) The amounts in which loans may be made and the totalamount that may be loaned to an individual;

(5) The percentage of the money in the fund that mustremain in the fund at all times as a fund balance;

(7) Conditions under which a portion of principal andinterest obligations incurred by an individual under the programwill be forgiven;

(8) Ways that the program may be used to encourageindividuals who are members of minority groups to enter thenursing profession;

~~(D)~~(E) The obligation to repay a portion of the principal andinterest on a loan made under this section shall be forgiven ifthe recipient of the loan meets the criteria for forgivenessestablished by division (C)(1)(b) of this section, in the case of loans awarded under division (C)(1)(a) of this section, or by the board of regents byrule adopted under division ~~(C)~~(D)(7) of this section, in the case of other loans awarded under this section.

~~(E)~~(F) The receipt of a loan under this section shall notaffect a student's eligibility for assistance, or the amount ofthat assistance, granted under section 3333.12, 3333.122, 3333.22, 3333.26,3333.27, 5910.03, 5910.032, or 5919.34 of the Revised Code, butthe rules of the board of regents mayprovide for taking assistance received under those sections into considerationwhendetermining a student's eligibility for a loan under thissection.

Sec. 3333.36. ~~The~~ Provided that sufficient unencumbered and unexpended funds are available from general revenue fund appropriations made to the Ohio board of regents, the chancellor of the Ohio board of regents ~~may~~ shall allocate up to seventy thousand dollars in each fiscal year to make payments to the Columbus program in intergovernmental issues, an Ohio internship program at Kent state university, for scholarships of up to two thousand dollars for each student enrolled in the program. The chancellor may utilize any general revenue funds appropriated to the board of regents that the chancellor determines to be available for purposes of this section.

(a) A state institution of higher education, as defined in section 3345.011 of the Revised Code;

(b) A nonprofit institution issued a certificate of authorization by the Ohio board of regents under Chapter 1713. of the Revised Code;

(c) A private institution exempt from regulation under Chapter 3332. of the Revised Code, as prescribed in section 3333.046 of the Revised Code;

(d) An institution of higher education with a certificate of registration from the state board of career colleges and schools under Chapter 3332. of the Revised Code.

(2) "Student financial assistance supported by state funds" includes assistance granted under sections 3315.33, 3333.12, 3333.122, 3333.21, 3333.26, 3333.27, 3333.28, 3333.29, 3333.372, 5910.03, 5910.032, and 5919.34 of the Revised Code and any other post-secondary student financial assistance supported by state funds.

(B) An individual who is convicted of, pleads guilty to, or is adjudicated a delinquent child for one of the following violations shall be ineligible to receive any student financial assistance supported by state funds at an institution of higher education for two calendar years from the time the individual applies for assistance of that nature:

(2) A violation of section 2917.04 of the Revised Code that is a misdemeanor of the fourth degree;

(3) A violation of section 2917.13 of the Revised Code that is a misdemeanor of the fourth or first degree and occurs within the proximate area where four or more others are acting in a course of conduct in violation of section 2917.11 of the Revised Code.

(C) If an individual is convicted of, pleads guilty to, or is adjudicated a delinquent child for committing a violation of section 2917.02 or 2917.03 of the Revised Code, and if the individual is enrolled in a state-supported institution of higher education, the institution in which the individual is enrolled shall immediately dismiss the individual. No state-supported institution of higher education shall admit an individual of that nature for one academic year after the individual applies for admission to a state-supported institution of higher education. This division does not limit or affect the ability of a state-supported institution of higher education to suspend or otherwise discipline its students.

(A) "Aggregate original principal amount" means theaggregate of the initial offering prices to the public of collegesavings bonds, exclusive of accrued interest, if any. "Aggregateoriginal principal amount" does not mean the aggregate accretedamount payable at maturity or redemption of such bonds.

(1) An individual designated by the purchaser under atuition payment contract or through a scholarship programas theindividual on whose behalf tuition ~~credits~~ units purchasedunder thecontract or awarded through the scholarship program will beappliedtoward the payment of undergraduate, graduate, orprofessional tuition;or

(2) An individual designated by the contributor under avariablecollege savings program contract as the individual whosetuition and otherhigher education expenses will be paid from avariable college savings programaccount.

(1) The principal amount is less than the amount payableatmaturity or early redemption; and

(D) "Tuition ~~credit~~ unit" means a credit of the Ohio tuitiontrust authoritypurchased under section 3334.09 of the RevisedCode. "Tuition unit" includes a tuition credit purchased prior to July 1, 1994.

(E) "College savings bonds" means revenue and otherobligations issued on behalf of the state or any agency orissuingauthority thereof as a zero-coupon or capitalappreciation bond,and designated as college savings bonds asprovided in thischapter. "College savings bond issue" means anyissue of bonds ofwhich any part has been designated as collegesavings bonds.

(F) "Institution of higher education" means a stateinstitution of higher education, a private college,university, orother postsecondary institution located in this state thatpossesses a certificate of authorization issued by the Ohio boardof regentspursuant to Chapter 1713. of the Revised Code or acertificate of registrationissued by the state board ofcareer colleges and schools underChapter3332. of the Revised Code, or an accredited college,university, or other postsecondary institution located outsidethis state thatis accredited by anaccrediting organization orprofessional association recognizedby the authority. To beconsidered an institution of higher education, aninstitutionshall meet the definition of an eligible educational institutionunder section 529 of the Internal Revenue Code.

(G) "Issuing authority" means any authority, commission,body, agency, or individual empowered by the OhioConstitution orthe Revised Code to issue bonds or any other debt obligationofthe state or any agency or department thereof. "Issuer" meanstheissuing authority or, if so designated under division (B) ofsection 3334.04 of the Revised Code, the treasurer of state.

(H) "Tuition" means the charges imposed to attend aninstitution of higher education as an undergraduate, graduate, orprofessionalstudent and all fees required as a condition ofenrollment, as determined bythe Ohio tuition trust authority."Tuition" does not include laboratory fees,room and board, orother similar feesand charges.

(I) "Weighted average tuition" means the tuition costresulting from thefollowing calculation:

(1) Add the products of the annual undergraduate tuitioncharged to Ohio residentsat each four-year state universitymultiplied by thatinstitution's total number of undergraduatefiscal year equatedstudents; and

(2) Divide the gross total of the products from division(I)(1) of this section by the total number of undergraduatefiscalyear equated students attending four-year stateuniversities.

When making this calculation, the "annual undergraduate tuition charged to Ohio residents" shall not incorporate any tuition reductions that vary in amount among individual recipients and that are awarded to Ohio residents based upon their particular circumstances, beyond any minimum amount awarded uniformly to all Ohio residents. In addition, any tuition reductions awarded uniformly to all Ohio residents shall be incorporated into this calculation.

(J) "Zero-coupon bond" means a bond which has a statedinterest rate of zero per cent and on which no interest ispayableuntil the maturity or early redemption of the bond, andis offeredat a substantial discount from its original statedprincipalamount.

(K) "State institution of higher education" includes thestate universities listed in section 3345.011 of the RevisedCode,community colleges created pursuant to Chapter 3354. of theRevised Code, university branches created pursuant to Chapter3355. of the Revised Code, technical colleges created pursuant toChapter 3357. of the Revised Code, state community collegescreated pursuant to Chapter 3358. of the Revised Code, the medical university ofOhio at Toledo, and the northeastern Ohio universitiescollege of medicine.

(L) "Four-year state university" means those stateuniversities listed in section 3345.011 of the Revised Code.

(M) "Principal amount" refers to the initial offeringpriceto the public of an obligation, exclusive of the accruedinterest,if any. "Principal amount" does not refer to theaggregateaccreted amount payable at maturity or redemption of anobligation.

(N) "Scholarship program" means a program registered withthe Ohio tuitiontrust authority pursuant to section 3334.17 oftheRevised Code.

(O) "Internal Revenue Code" means the"Internal Revenue Codeof 1986," 100 Stat.2085, 26 U.S.C.A. 1 et seq., as amended.

(P) "Other higher education expenses" meansroom and boardand books, supplies, equipment, andnontuition-related feesassociated with the cost of attendanceof a beneficiary at aninstitution of higher education, but onlyto the extent that suchexpenses meet the definition of"qualified higher educationexpenses" under section 529 of theInternal Revenue Code. "Otherhigher educationexpenses" does not include tuition as defined indivision(H) of this section.

(Q) "Purchaser" meansthe person signing the tuition paymentcontract, who controlsthe account and acquires tuition ~~credits~~ unitsfor an account underthe terms and conditions of the contract.

(R) "Contributor" means a person who signs a variablecollegesavings program contract with the Ohio tuition trustauthority andcontributes to and owns the account created underthe contract.

(S) "Contribution" means any payment directly allocated to an account for the benefit of the designated beneficiary of the account.

Sec. 3334.02. (A) In order to help make higher educationaffordable and accessible to all citizens of Ohio, to maintainstate institutions of higher education by helping to provide astable financial base to these institutions, to provide thecitizens of Ohio with financing assistance for higher educationand protection against rising tuition costs, to encourage savingto enhance the ability of citizens of Ohio to obtain financialaccess to institutions of higher education, to encourageelementary and secondary students in this state to achieveacademic excellence, and to promote a well-educated andfinancially secure population to the ultimate benefit of allcitizens of the state of Ohio, there is hereby created the Ohio college savings program. The program shall consist of theissuanceof college savings bonds and the sale of tuition~~creditsand, ifoffered, supplemental credits~~units.

(B) The provisions of Chapter 1707. of the Revised Codeshall not apply to tuition~~credits~~units or any agreement ortransaction related thereto.

(C) To provide the citizens of Ohio with a choice oftax-advantaged college savings programs and the opportunity toparticipate inmore than one type ofcollege savings program at atime, the Ohio tuition trustauthority shall establish andadminister a variable college savings programas a qualified statetuition program under section 529 of theInternal Revenue Code.The program shallallow contributors tomake cash contributions to variable college savingsprogramaccounts created for the purpose of paying future tuition andotherhigher education expenses and providing variable rates ofreturnon contributions.

(D) A person may participate simultaneously in both theOhio collegesavings program and the variable collegesavings program.

Sec. 3334.03. (A) There is hereby created the Ohiotuitiontrust authority, which shall have the powers enumeratedin thischapter and which shall operate as a qualified state tuitionprogram within the meaning of section 529 of the InternalRevenueCode. The exercise by the authority of itspowers shall be and ishereby declared an essential state governmentalfunction. Theauthority is subject to all provisions of lawgenerally applicableto state agencieswhichdo not conflict withthe provisionsof this chapter.

(B) The Ohio tuition trust authority shall consist ofelevenmembers, no more than six of whom shall be of the samepoliticalparty. Six members shall be appointed by the governor withtheadvice and consent of the senate as follows: one shall representstate institutions of higher education, one shall representprivate nonprofit colleges and universities located in Ohio, oneshall haveexperience in the field of marketing or publicrelations, one shall haveexperience in the field of informationsystems design ormanagement, andtwo shall have experience in thefield of banking, investmentbanking, insurance, or law. Fourmembers shall beappointed by the speaker of the house ofrepresentatives and thepresident of the senate as follows: thespeaker of the house ofrepresentatives shall appoint one memberof the house from eachpolitical party and the president of thesenate shall appoint onemember of the senate from each politicalparty. The chancellorof the board of regents shall be an exofficio voting member;provided, however, that the chancellor maydesignate avice-chancellor of the board of regents to serve asthechancellor'srepresentative. The political party of thechancellor shall bedeemed the political party of the designee forpurposes ofdetermining that no more than six members are of thesamepolitical party.

Initial gubernatorial appointees to the authority shallservestaggered terms, with two terms expiring on January 31,1991, oneterm expiring on January 31, 1992, and one termexpiring onJanuary 31, 1993. The governor shall appoint two additionalmembers to the authority no later than thirty days after~~theeffective dateofthis amendment~~March 30, 1999, and their initialterms shall expire January 31,2002. Thereafter, terms of officeforgubernatorial appointees shall be for four years. The initialterms of the four legislative members shall expire on January 31,1991. Thereafter legislative members shall serve two-year terms,provided that legislative members may continue to serve on theauthority only if they remain members of the general assembly.Any vacancy on the authority shall be filled in the same mannerasthe original appointment, except that any person appointed tofilla vacancy shall be appointed to the remainder of theunexpiredterm. Any member is eligible for reappointment.

(C) Any member may be removed by the appointing authorityfor misfeasance, malfeasance, or willful neglect of duty or forother cause after notice and a public hearing, unless the noticeand hearing are waived in writing by the member. Members shallserve without compensation but shall receive their reasonable andnecessary expenses incurred in the conduct of authority business.

(D) The speaker of the house of representatives and thepresident of the senate shall each designate a member of theauthority to serve as co-chairpersons. The sixgubernatorialappointees and the chancellor of the board of regents orthechancellor'sdesignee shall serve as the executive committee ofthe authority,and shall elect an executive chairperson from amongtheexecutivecommittee members. The authority and the executivecommittee mayelect such other officers as determined by theauthority or theexecutive committee respectively. The authorityshall meet atleast annually at the call of either co-chairpersonand at such other times as either co-chairperson or theauthoritydetermines necessary. In the absence of both co-chairpersons,theexecutive chairperson shall serve as the presiding officer of theauthority. The executive committee shall meet at the call of theexecutivechairperson or as the executive committee determinesnecessary. The authority may delegate to the executive committeesuch dutiesand responsibilities as the authority determinesappropriate, exceptthat the authority may not delegate to theexecutive committeethe final determination of the annual price ofa tuition~~credit~~unit,the final designation of bonds as collegesavings bonds, or theemployment of an executive director of theauthority. Upon suchdelegation, the executive committee shallhave the authority toact pursuant to such delegation withoutfurther approval oraction by the authority. A majority of theauthority shallconstitute a quorum of the authority, and theaffirmative vote ofa majority of the members present shall benecessary for any action taken bythe authority. A majority ofthe executive committee shall constitute aquorum of the executivecommittee, and the affirmative vote of a majority ofthe memberspresent shallbe necessary for any action taken by the executivecommittee. Novacancy in the membership of the authority or theexecutivecommittee shall impair the rights of a quorum toexercise allrights and perform all duties of the authority or theexecutivecommittee respectively.

Sec. 3334.07. (A) The Ohio tuition trust authorityshall develop a plan for the sale of tuition ~~credits~~ units. The Ohio board of regents shallcooperate with the authority and provide technical assistanceupon request.

(B) Annually, the authority shall determine the weightedaverage tuition of four-year state universities in the academicyear that begins on or after the first day of August of thecurrent calendar year, and shall establish the price of a tuition~~credit~~ unit in the ensuing sales period. Such price shall be based onsound actuarial principles, and shall, to the extent actuariallypossible, reasonably approximate one per cent of the weightedaverage tuition for that academic year plus the costs ofadministering the ~~tuition credit~~ program that are in excess ofgeneral revenue fund appropriations for administrative costs. The salesperiod to which such price applies shall consist oftwelve months, and the authority by rule shall establish the dateon which the sales period begins. If circumstances arise during a salesperiod that the authoritydetermines causes the price of tuition ~~credits~~ units to be insufficient to ensuretheactuarial soundness of the Ohio tuition trustfund, the authority may adjust the price of tuition ~~credits~~ units purchased duringthe remainder of the sales period. To promote the purchase oftuition ~~credits~~ units and in accordance with actuarially soundprinciples, the authority may adjust the sales price as part ofincentive programs, such as discounting for ~~lump-sum~~ lump sum purchasesand multi-year installment plans at a fixed rate of purchase.

Sec. 3334.08. (A) Subject to division (B) of thissection, in addition to any other powersconferred by this chapter, the Ohio tuition trust authority maydo any of the following:

(1) Impose reasonable residency requirements forbeneficiaries of tuition ~~credits~~ units;

(2) Impose reasonable limits on the number of tuition~~credit~~ unit participants;

(3) Impose and collect administrative fees and charges inconnection with any transaction under this chapter;

(4) Purchase insurance from insurers licensed to dobusiness in this state providing for coverage against any loss inconnection with the authority's property, assets, or activitiesor to further ensure the value of tuition ~~credits~~ units;

(5) Indemnify or purchase policies of insurance on behalfof members, officers, and employees of the authority frominsurers licensed to do business in this state providing forcoverage for any liability incurred in connection with any civilaction, demand, or claim against a director, officer, or employeeby reason of an act or omission by the director, officer, oremployee that was not manifestly outside the scope of theemployment or official duties of the director, officer, or employee orwith malicious purpose, in badfaith, or in a wanton or reckless manner;

(6) Make, execute, and deliver contracts, conveyances, andother instruments necessary to the exercise and discharge of thepowers and duties of the authority;

(7) Promote, advertise, and publicize the Ohio collegesavingsprogram and the variable college savings program;

(8) Adopt rules under section 111.15 of the Revised Codefor the implementation of the Ohio college savings program;

(9) Contract, for the provision of all or part of theservices necessary for the management and operation of theOhiocollege savings program and the variable college savings program, witha bank, trust company, savings andloan association, insurance company, or licensed dealer insecurities if the bank, company, association, or dealer isauthorized to do business in this state and information about thecontract is filed with the controlling board pursuant to division(D)(6) of section 127.16 of the Revised Code;

(10) Contract for other services, or for goods, needed bythe authority in the conduct of its business, including but notlimited to credit card services;

(11) Employ an executive director and other personnel asnecessary to carry out its responsibilities under this chapter,and fix the compensation of these persons. All employees of theauthority shall be in the unclassified civil service and shall beeligible for membership in the public employees retirementsystem.

(12) Contract with financial consultants, actuaries,auditors, and other consultants as necessary to carry out itsresponsibilities under this chapter;

(13) Enter into agreements with any agency of the state orits political subdivisions or with private employers under whichan employee may agree to have a designated amount deducted ineach payroll period from the wages or salary due the employee forthe purpose of purchasing tuition ~~credits~~ units pursuant to a tuitionpayment contract or making contributions pursuant to a variable collegesavings program contract;

(14) Enter into an agreement with the treasurer of stateunder which the treasurer of state will receive, and credit tothe Ohio tuition trust fund or variable college savings program fund,from any bank or savings and loanassociation authorized to do business in this state, amounts thata depositor of the bank or association authorizes the bank orassociation to withdraw periodically from the depositor's accountfor thepurpose of purchasing tuition ~~credits~~ units pursuant to a tuitionpayment contract or making contributions pursuant to a variable collegesavings program contract;

(15) Solicit and accept gifts, grants, and loans from anyperson or governmental agency and participate in any governmentalprogram;

(16) Impose limitson the number of ~~credits~~ units which may bepurchased on behalf of or assigned or awarded to any beneficiary and on thetotal amount of contributions that may be made on behalf of a beneficiary;

(17) Impose restrictions on the substitution of anotherindividual for the original beneficiary under the Ohio collegesavings program;

(18) Impose a limit on the age of a beneficiary, abovewhich tuition ~~credits~~ units may not be purchased onbehalf of thatbeneficiary;

(19) Enter into a cooperative agreement with the treasurerof state to provide for the direct disbursement of payments undertuition payment or variable college savings program contracts;

(20) Determine the other higher education expenses for whichtuition ~~credits~~ units or contributions may be used;

(21) Terminate any tuition payment or variable collegesavings program contract if nopurchases or contributions are made for a period of three years or moreand thereare fewer than a total of five tuition units ~~or tuition credits~~ or lessthan a dollar amount set by ruleon account, provided that notice of a possible termination shallbe provided in advance, explaining any options to preventtermination, and a reasonable amount of time shall be providedwithin which to act to prevent a termination;

(22) Maintain a separate account for each tuition payment or variablecollege savings program contract;

(23) Perform all acts necessary and proper to carry outthe duties and responsibilities of the authority pursuant to thischapter.

(B) The authority shall adopt rulesunder section 111.15 of the Revised Code for theimplementationand administration of the variable college savings program. The rules shallprovide taxpayers with the maximum tax advantages and flexibility consistentwithsection 529 of the Internal Revenue Code andregulations adoptedthereunder with regard to disposition of contributions and earnings,designation of beneficiaries, and rollover of account assets to otherprograms.

(C) Except as otherwise specified in this chapter, theprovisions of Chapters 123., 125., and 4117. of the Revised Codeshall not apply to the authority. The department ofadministrative services shall, upon the request of the authority,act as the authority's agent for the purchase of equipment,supplies, insurance, or services, or the performance ofadministrative services pursuant to Chapter 125. of the RevisedCode.

Sec. 3334.09. (A) Except in the case of a scholarship programestablished in accordance with section 3334.17 of the Revised Code, the Ohiotuition trust authority may enter into a tuition payment contract with anyperson for the purchase of tuition ~~credits~~ units if either thepurchaser or the beneficiary is a resident of this state at the time thecontract is entered into. A tuition payment contract shall allow anyperson to purchase tuition ~~credits~~ units at the price determined by theauthority pursuant to section 3334.07 or 3334.12 of the RevisedCode for the year in which the tuition ~~credit~~ unit is purchased. The purchasershall name in the payment contract one specific individual as the beneficiaryfor the tuition ~~credits~~ units.

In accordance with rules of the authority, ~~credits~~ units maybe transferred to the credit of another beneficiary and a new beneficiarymay be substituted for thebeneficiary originally named in the contract.

(B) Each tuition ~~credit~~ unit shall entitle the beneficiary toan amount equal to one per cent of the weighted average tuition.

(C) Nothing in this chapter or in any tuition paymentcontract entered into pursuant to this chapter shall be construedas a guarantee by the state, the authority, or any institution ofhigher education that a beneficiary will be admitted to aninstitution of higher education, or, upon admission to aninstitution of higher education, will be permitted to continue toattend or will receive a degree from an institution of highereducation. Nothing in this chapter or in any tuition paymentcontract entered into pursuant to this chapter shall beconsidered a guarantee that the beneficiary's cost of tuition atan institution of higher education other than a state institutionof higher education will be covered in full by the proceeds ofthe beneficiary's tuition ~~credits~~ units.

(D) The following information shall be disclosed inwriting to each purchaser of tuition ~~credits~~ units and, whereappropriate, to each entity establishing a scholarshipprogram under section 3334.17 of the Revised Code:

(1) The terms and conditions for the purchase and useof tuition ~~credits~~ units;

(2) In the case of a contract described by division (A)of this section, any restrictions on the substitution of anotherindividual for the original beneficiary and any restrictions onthe transfer of ownership of ~~credits~~ units in the payment account;

(4) The terms and conditions under which the contract maybe terminated and the amount of the refund, if any, to which theperson or entity terminating the contract, or that person's orentity's designee, is entitled upon termination;

(5) The obligation of the authority to make payments to abeneficiary, or an institution of higher education on behalf of abeneficiary, under division (B) of this section based upon thenumber of tuition ~~credits~~ units purchased on behalf of the beneficiaryor awarded to the beneficiary pursuant to a scholarship program;

(6) The method by which tuition ~~credits~~ units shall be appliedtoward payment of tuition and other higher education expenses if in anyacademic term the beneficiary is a part-time student;

(7) The period of time during which a beneficiary mayreceive benefits under the contract;

(8) The terms and conditions under which money may bewholly or partially withdrawn from the program, including, butnot limited to, any reasonable charges and fees that may beimposed for withdrawal;

(9) All other rights and obligations of the purchaser andthe authority, including the provisions of division (A) ofsection 3334.12 of the Revised Code, and any other terms,conditions, and provisions the authority considers necessary andappropriate.

(E) A tuition payment contract may provide that theauthority will pay directly to the institution of highereducation in which a beneficiary is enrolled during a term theamount represented by the tuition ~~credits~~ units being used that term.

(F) A tuition payment contract described by division(A) of this section may provide that if the contract hasnot been terminated or ~~credits~~ units purchased under the contract have not beenappliedtoward the payment of tuition or other higher education expenses within aspecified period of time, the authority may, after making a reasonableeffort to locate the purchaser of the tuition ~~credits~~ units, thebeneficiary, and any person designated in the contract to act onbehalf of the purchaser of the ~~credits~~ units or the beneficiary,terminate the contract and retain the amounts payable under thecontract.

(G) If, at any time after tuition ~~credits~~ units are purchased onbehalf of a beneficiary or awarded to a beneficiary or pursuantto a scholarship program, thebeneficiary becomes a nonresident of this state, or, if the beneficiary wasnot a resident of this state at the time the tuition payment contract wasentered into, the purchaser becomes a nonresident of this state,~~credits~~ units purchased or awarded while the beneficiary was a resident may beapplied on behalf of the beneficiary towardthe payment of tuition at aninstitution of higher education and other highereducation expensesin the manner specified in division (B) of this section, except thatif the beneficiary enrolls in a state institution of highereducation, the beneficiary shall be responsible for payment ofall nonresident fees charged to out-of-state residents by theinstitution in which the beneficiary is enrolled.

Sec. 3334.10. Divisions (A),and (B)~~, (C),and (D)~~ of thissection do not apply toscholarship programs established undersection 3334.17 of the Revised Code.

(A) Unless otherwise provided for in the~~contract, a~~ tuitionpaymentcontract ~~may beterminated by thepurchaser under any ofthefollowing circumstances upon the written request of thepurchaser to the authority:~~

(2) Upon notification to theOhio tuition trust authorityinwriting that the beneficiary is age eighteen or older, hasdecidednot to attend an institution of higher education, andrequeststhat thecontract beterminated;

~~(3) Upon the beneficiary's completion of the degreerequirements atan institution of higher education;~~

~~(4) Upon the rollover of allamounts in a tuitioncreditaccount toan equivalent account inanother state;~~

~~(5) Uponthe occurrence of othercircumstancesdeterminedbythe authorityto be grounds for termination.~~

~~(B) The authority shall determine the method and scheduleforpayment of refundsupon termination of atuition paymentcontract.~~ , the purchaser may rollover amounts to another qualified tuition program under section 529 of the Internal Revenue Code or terminate the contract for any reason by filing writtennoticewith the Ohio tuition trust authority.

(1)~~In cases described by division (A)(2) or (3) of thissection,~~If the contract is terminated and the beneficiary is under eighteen years of age, the authority shall use actuarially sound principles to determine theamount ofthe refund shallbe equalto not less thanone per cent of theweightedaveragetuition in theacademic yearthe refund ispaid, multiplied by thenumber of tuitioncredits purchased and not used, minus anyreasonable charges andfees providedfor by the authority, or suchother lesser sumasshall bedetermined by the authority butonly to the extent thatsuch alesser sum is necessary to meet therefund penaltyrequirementsfor qualified state tuition programsunder section529 of theInternal Revenue Code.

(2)~~In cases described by division (A)(1) of this section~~Ifthe contract is terminated because of the death or permanentdisability of the beneficiary,the amount of the refund shall beequal to the greater of thefollowing:

(a) One per cent of the weighted average tuition in theacademic year therefund is paid, multiplied bythe number oftuition~~credits~~units purchased and notused;

(b) The total purchase price of all tuition~~credits~~unitspurchased for thebeneficiary and not used.

(3) ~~In cases described by division (A)(5) of thissection,the amount of the refund shall beeither of the followingasdetermined by the authority:~~

(b) The refundprovided by division (B)(2) of thissection,or such other lesser sum as shall bedetermined by the authoritybut only to the extent that such alesser sum is necessary to meetthe refund penalty requirementsfor qualified state tuitionprograms under section 529 of theInternal Revenue Code If all or part of the amount accrued under the contract is liquidated for a rollover to another qualified tuition program under section 529 of the Internal Revenue Code, the rollover amount shall be determined in an actuarially sound manner.

~~(C) Unless otherwise provided for in thecontract, a~~(B) Thecontributor of a variable collegesavings programaccount may~~beterminated by~~rollover amounts to another qualified tuition program under section 529 of the Internal Revenue Code or terminate the~~contributor~~account for anyreasonupon the written request of thecontributorto theauthority.Termination of a variable college savingsprogramaccount shalloccur no earlier than a maturity period setby theauthority afterthe first contribution is made to theaccount.

~~(D) The authority shalldetermine the method and scheduleforpayment of refundsupontermination of a variablesavings programaccount~~ by filing written notice with the Ohio tuition trustauthority.

~~(1)~~ Thecontributor ~~under avariable savingsprogramcontract~~mayreceive ~~a refund of the~~ an amount equal to the account balance ~~in anaccount~~, lessany applicableadministrativefees, if the account isterminated upon thedeathor permanentdisability of thebeneficiary or, to the extentallowed under rules of theauthority, upon the rollover of allamountsin a variable collegesavings program account toanequivalentaccount in another state.

(2) If a variable college savings program account isterminatedfor any reason other than those set forth in division(D)(1) ofthis section, thecontributor mayreceivea refund of the balance in theaccount, less anyadministrativefees, and lessany additional amount necessary tomeet the minimumrefund penaltyrequirements for a qualified statetuition programunder section529 of the Internal Revenue Code.

(3) Earnings shall be calculated as the total value of thevariable savings programaccount less the aggregatecontributions, or in such other manner asprescribed by section529 of the Internal RevenueCode.

~~(E) In the case of a~~(C) A scholarship program,may requesta refund oftuition~~credits~~units in the program's account~~may bemade onlyfor just cause with the approval of~~by filing a writtenrequest withthe authority. The refundshall be paid to theentity that establishedthe scholarshipprogram or, with thatentity's approval, to theauthority if thisis authorized byfederal taxlaw. The amount of any refund shallbe determined bythe authorityand shall meet the requirements forrefunds made onaccount of scholarships under section 529 of theInternalRevenueCode.

(F) If a beneficiary is awarded a scholarship other thanunder a scholarship program, a waiver of tuition, or similarsubvention thattheauthoritydetermines cannot be converted intomoney by the beneficiary, theauthority shall, during eachacademic term that the beneficiaryfurnishes the authority suchinformation about the scholarship,waiver, or similar subventionas the authority requires, refundto the person designated in thecontract,or, in the case of a beneficiaryunder a scholarship program, tothe beneficiary an amount equal to thevalue that the tuitioncredits or the amounts in the variable collegesavingsprogram account that are not needed onaccount ofthe scholarship,waiver, or similar subvention would otherwisehave to thebeneficiary that term at the institution of higher educationwherethe beneficiary is enrolled. The authority may, at its soleoption, designate the institution of higher education at which thebeneficiary is enrolled as the agent of the authority forpurposesof refunds pursuant to this division.

(G)If, in any academic term for which tuition creditsor anyamounts in a variable college savings program accounthave beenused to pay all or part of a beneficiary's tuition, thebeneficiary withdraws from the institution of higher education atwhich the beneficiary is enrolled prior to the end of theacademicterm, a pro rata share of any refund of tuition as aresult of thewithdrawal equal to that portion of the tuitionpaid with tuitioncredits or the amounts in a variable college savingsprogramaccount shall be made to the authority, unlessthe authoritydesignates a different procedure. The authorityshall credit anyrefund received, less any reasonable charges andfees provided forby the authority, to the appropriate account establishedunderdivision (F)(1) or (2) of section 3334.11of the Revised Code ordivision (H) of this section.

~~(H)~~(D) The authority shall maintain a separate account foreachvariable college savingscontract entered into pursuant to division(A) ofsection 3334.18 of the Revised Code forcontributionsmade onbehalf of a beneficiary, showing the name of the beneficiaryofthatcontractand the amount ofcontributions made pursuant to thatcontract.Upon request of anybeneficiary or contributor, the authority shall provide astatement indicating, in thecase of a beneficiary, the amount ofcontributions made pursuantto thatcontract on behalf of thebeneficiary, or,in the case ofacontributor, contributions made, disbursed, or refundedpursuantto thatcontract.

Sec. 3334.11. (A) The assets of the Ohio tuition trustauthority reserved for payment of the obligations of theauthority pursuant to tuition payment contracts shall be placedin a fund, which is hereby created and shall be known as theOhiotuition trust fund. The fund shall be in the custody of thetreasurer of state, but shall not be part of the state treasury. That portion of payments received by the authority or thetreasurer of state from persons purchasing tuition ~~credits~~ units undertuition payment contracts that the authority determines isactuarially necessary for the payment of obligations of theauthority pursuant to tuition payment contracts, all interest andinvestment income earned by the fund, and all other receipts ofthe authority from any other source that the authoritydetermines appropriate, shall be deposited in the fund. Nopurchaser or beneficiary of tuition ~~credits~~ units shall have any claimagainst the funds of any state institution of higher education. All investment fees and other costs incurred in connection withthe exercise of the investment powers of the authority pursuantto divisions (D) and (E) of this section shall be paid from theassets of the fund.

(B) Unless otherwise provided by the authority, the assetsof the Ohio tuition trust fund shall be expended in the followingorder:

(1) To make payments to beneficiaries, or institutions ofhigher education on behalf of beneficiaries, under division (B)of section 3334.09 of the Revised Code;

(2) To make refunds as provided in divisions ~~(B), (E),~~(A) and~~(F)~~(C) of section 3334.10 of the Revised Code;

(C)(1) Except as may be provided in an agreement underdivision (A)(19) of section 3334.08 of the Revised Code,all disbursements from the Ohio tuition trust fund shall be made bythe treasurer of state on order of a designee of the authority.

(2) The treasurer of state shall deposit any portion ofthe Ohio tuition trust fund not needed for immediate use in thesame manner as state funds are deposited.

(D) The authority is the trustee of the Ohio tuition trustfund. The authority shall have full power to invest theassets of the fund and in exercising this power shall be subject to thelimitations and requirements contained in divisions(K) to (M) of this section andsections 145.112 and 145.113 of the Revised Code. Theevidences of title of all investments shall bedelivered to thetreasurer of state or to a qualified trustee designated by thetreasurer of state asprovided in section 135.18 of the Revised Code. Assets of thefund shall be administered by the authority in a manner designedto be actuarially sound so that the assets of the fund will besufficient to satisfy the obligations of the authority pursuantto tuition payment contracts and defray the reasonable expensesof administering the fund.

(E) The public employees retirement board shall, with theapproval of the authority, exercise the investment powers of theauthority as set forth in division (D) of this section until theauthority determines that assumption and exercise by theauthority of the investment powers is financially andadministratively feasible. The investment powers shall beexercised by the public employees retirement board in a manneragreed upon by the authority that maximizes the return oninvestment and minimizes the administrative expenses.

(F)(1) The authority shall maintain a separate account foreachtuition payment contract entered into pursuant to division (A) of section3334.09 of the Revised Code for the purchase oftuition ~~credits~~ units on behalf of a beneficiary or beneficiariesshowing the beneficiary or beneficiaries of that contract and thenumber of tuition ~~credits~~ units purchased pursuant to that contract. Upon request of any beneficiary or person who has entered into atuition payment contract, the authority shall provide a statementindicating, in the case of a beneficiary, the number of tuition~~credits~~ units purchased on behalf of the beneficiary, or in the case ofa person who has entered into a tuition payment contract, thenumber of tuition ~~credits~~ units purchased, used, or refunded pursuantto that contract. A beneficiary and person that have enteredinto a tuition payment contract each may file only one requestunder this division in any year.

(2) The authority shall maintain an account for eachscholarship program showing the number of tuition ~~credits~~ units thathave been purchased for or donated to the program and the numberof tuition ~~credits~~ units that have been used. Upon the request of theentity that established the scholarship program, the authority shallprovide a statement indicating these numbers.

(G) In addition to the Ohio tuition trust fund, there ishereby established a reserve fund that shall be in thecustodyof the treasurer of state but shall not be part of the statetreasury, and shall be known as the Ohio tuition trust reservefund, and an operating fund that shall be part of thestatetreasury, and shall be known as the Ohio tuition trust operatingfund. That portion of payments received by the authority or thetreasurer of state from persons purchasing tuition ~~credits~~ units undertuition payment contracts that the authority determines isnotactuarially necessary for the payment of obligations of theauthority pursuant to tuition payment contracts, any interest andinvestment income earned by the reserve fund, any administrativecharges and fees imposed by the authority on transactions underthis chapter or on purchasers or beneficiaries of tuition~~credits~~ units, and all other receipts from any other source thattheauthority determines appropriate, shall be deposited in thereserve fund to pay the operating expenses of the authority andthe costs of administering the program. The assets of thereserve fund may be invested in the same manner and subject tothe same limitations set forth in divisions (D), (E),and (K) to (M) of thissection and sections 145.112 and 145.113 of the Revised Code. All investmentfees andother costs incurred inconnection with the exercise of the investment powers shallbepaid from the assets of the reserve fund. Except as otherwiseprovided for in this chapter, all operating expenses of theauthority and costs of administering the program shall be paidfrom the operating fund. The treasurer shall, upon request ofthe authority, transfer funds from the reserve fund to theoperating fund as the authority determines appropriate to paythose current operating expenses of the authority and costs ofadministering the program as the authority designates. Anyinterest or investment income earned on the assets of theoperating fund shall be deposited in the operating fund.

(H) In January of each year the authority shall report toeach person who received any payments or refunds from theauthority during the preceding year information relative to thevalue of the payments or refunds to assist in determiningthatperson's tax liability.

(I) The authority shall report to the tax commissionerany information, and at the times, asthe tax commissionerrequires to determine any tax liability that a person may haveincurred during the preceding year as a result of having receivedany payments or refunds from the authority.

(J) All records of the authority indicating the identityof purchasers and beneficiaries of tuition ~~credits~~ units or collegesavings bonds, the number of tuition ~~credits~~ units purchased, used, orrefunded under a tuition payment contract, and the number ofcollege savings bonds purchased, held, or redeemed are not publicrecords within the meaning of section 149.43 of the Revised Code.

(K) The authority and otherfiduciaries shall discharge their duties with respect to thefunds with care, skill, prudence,and diligence under the circumstances then prevailing that aprudent person acting in a like capacity and familiar with suchmatters would use in the conduct of an enterprise of a likecharacter and with like aims; and by diversifying the investmentsof the assets of the funds so as to minimize the risk of large losses,unlessunder the circumstances it is clearly prudent not to do so.

To facilitate investment of the funds, the authority may establish apartnership, trust, limited liability company, corporation, including acorporation exempt from taxation under the Internal RevenueCode, 100 Stat. 2085, 26 U.S.C. 1, as amended, orany other legal entity authorized to transact business in this state.

(L) In exercising its fiduciary responsibility withrespect to the investment of the assets of the funds, it shall be theintent of the authority to give consideration to investments that enhance thegeneral welfare of the state and its citizens where theinvestments offer quality, return, and safety comparable to otherinvestments currently available to the authority. In fulfilling thisintent, equal consideration shall also be given to investmentsotherwise qualifying under this section that involve minorityowned and controlled firms and firms owned and controlled bywomen, either alone or in joint venture with other firms.

Theauthority shall adopt, in regular meeting, policies, objectives, orcriteria for the operation of the investment programthat include assetallocation targets and ranges, risk factors, asset class benchmarks, timehorizons, total return objectives, and performance evaluation guidelines. Inadopting policies and criteria for the selection of agents withwhom the authority may contract for the administration of the assets of thefunds, the authority shall give equal consideration to minority owned andcontrolled firms, firms owned and controlled by women, andventures involving minority owned and controlled firms and firmsowned and controlled by women that otherwise meet the policies and criteriaestablished by the authority. Amendments and additions to the policies andcriteria shall be adopted in regular meeting. The authority shall publish itspolicies, objectives, and criteria under this provision no less often thanannually andshall make copies available to interested parties.

When reporting on the performance of investments, the authority shallcomplywith the performance presentation standards established by the association forinvestment management and research.

(M) All investments shall be purchased at current marketprices and the evidences of title of the investments shall beplaced in the hands of the treasurer of state, who is herebydesignated as custodian thereof, or in the hands of thetreasurer of state's authorized agent. The treasurer of state or theagent shall collect the principal, dividends, distributions, and interestthereon as they become due and payable and place them when so collected intothe custodial funds.

The treasurer of state shall pay for investments purchased by theauthority on receipt of written or electronic instructions from the authorityor the authority's designated agent authorizing the purchase and pendingreceipt of theevidence of title of the investment by the treasurer of state or the treasurerof state's authorized agent. The authority may sell investments held by theauthority, and the treasurer of state or the treasurer of state's authorizedagent shall accept payment from the purchaserand deliver evidence of title of the investment to the purchaser on receipt ofwritten or electronic instructions from the authority or the authority'sdesignated agent authorizing the sale, and pending receipt of the moneys forthe investments. The amount received shall be placed in the custodial funds. The authority and the treasurer of state may enter into agreements toestablish procedures for the purchase and sale of investments under thisdivision and the custody of the investments.

No purchase or sale of any investment shall be made under this sectionexcept as authorized by the authority.

Any statement of financial position distributed by the authority shallinclude fair value, as of the statement date, of all investments held by theauthority under this section.

Sec. 3334.12. Notwithstanding anything to the contrary insections 3334.07 and 3334.09 of the Revised Code:

(A) Annually, the Ohio tuition trust authority shall havethe actuarial soundness of the Ohio tuition trust fund evaluatedby a nationally recognized actuary and shall determine whetheradditional assets are necessary to defray the obligations of theauthority. If, after the authority sets the price for tuition~~credits~~ units,circumstancesarise that the executive directordetermines necessitate an additionalevaluation of the actuarialsoundness of the fund, the executive directorshallhave anationally recognized actuary conduct the necessaryevaluation.Ifthe assets of the fund are insufficient to ensurethe actuarialsoundness of the fund, the authority shall adjustthe price ofsubsequent purchases of tuition~~credits~~ unitsto the extentnecessary to help restore the actuarial soundness of the fund. If, atany time, the adjustment is likely, in the opinion of theauthority, to diminish the marketability of tuition ~~credits~~ units to anextent that the continued sale of the ~~credits~~ units likely would notrestore the actuarial soundness of the fund and external economic factors continue to negatively impact the soundness of the program, the authority may suspend sales, either permanently or temporarily, of tuition ~~credits~~ units. During any suspension, the authority shall continue to service existing college savings program accounts.

(B) Upon termination of the program or liquidation of theOhio tuition trust fund, the Ohio tuition trust reserve fund, andthe Ohio tuition trust operating fund, any remaining assets ofthefunds after all obligations of the funds have been satisfiedpursuant to division (B) of section 3334.11 of the Revised Codeshall be transferred to the general revenue fund of the state.

(C) The authority shall prepare and cause to have auditedanannual financial report on all financial activity of the Ohiotuition trust authority within ninety days of the end of thefiscal year. The authority shall transmit a copy of the auditedfinancial report to the governor, the president of the senate,thespeaker of the house of representatives, and the minorityleadersof the senate and the house of representatives. Copiesof theaudited financial report also shall be made available,uponrequest, to the persons entering intocontracts with theauthority and to prospectivepurchasers oftuition ~~credits~~ units and prospectivecontributors tovariable college savings program accounts.

Sec. 3334.15. (A) The right of a person to a tuition~~credit~~unit or apayment undersection 3334.09 of the Revised Codepursuant to atuition ~~credit~~ payment contract,a scholarship program, or a variablecollegesavings program account shall not besubject to execution,garnishment,attachment, the operation of bankruptcy or theinsolvency laws, or otherprocess of law.

(B) The right of a person to a tuition~~credit~~unit or apayment undersection 3334.09 of the Revised Code pursuant to atuition ~~credit~~ paymentcontract, a scholarshipprogram, or a variablecollege savings program account shall not be used assecurity orcollateral for a loan.

Sec. 3334.16. The general assembly hereby finds that theprepaid tuition program providingfor the sale of tuitioncreditsunits by the Ohio tuition trustauthorityis an officialstatefunction, offered through an agency of thisstate,which agency receives state appropriations. Therefore, theauthorityis directed by the state of Ohio to assumeit is exempt from federal taxliability.

Sec. 3334.17. (A) Thestate, any political subdivision ofthe state, and anyorganization that is exempt from federal incometaxation undersection 501 (a) and described in section 501(c)(3)of the Internal RevenueCode, including the Ohio tuition trustauthority if this isauthorized under federal tax law,mayestablish a scholarship program to award scholarships consistingofcontributions made toany collegesavings program for students. Any scholarship program establishedunderthissection shall be registered with theauthority. The authority shall be notified of the name andaddress of each scholarship beneficiary under the program, theamounts awarded, and the institution of highereducation in which the beneficiary is enrolled. Scholarshipbeneficiaries shall be selected by the entity establishing thescholarship program, in accordance withcriteria established bytheentity.

(B) Any person or governmental entity may purchase tuition~~credits~~ unitson behalf of a scholarship program that is or is tobeestablished in accordance with division (A)of this section atthe same price as isestablished for the purchase of~~credits~~ unitsfor named beneficiariespursuant to this chapter. Tuition~~credits~~ units shall have the same value to the beneficiary of ascholarshipawarded pursuant to this section as they would have toany otherbeneficiary pursuant to division (B) of section 3334.09of theRevised Code.

(C) The entity establishing and maintaining a scholarshipprogram shall specifywhether a scholarship beneficiary mayreceive a refund or payment fortheamount awardedunder the scholarship program directlyfrom theauthority, or whether the amountawarded shall bepaid by the authority only to the institution ofhigher educationin which the student is enrolled.

(D) If a scholarship beneficiary does not usethe amount awarded within a length of time specified underthescholarship program, theamount may be awarded toanotherbeneficiary.

Sec. 3334.18. (A) A variable college savings programestablished by the Ohio tuition trust authority shall includeprovisions for acontract to be entered into betweena contributor andthe authority that will authorize thecontributor to open an accountfor a beneficiary andauthorizethecontributor to substitute a newbeneficiary for one originallynamed in thecontract, to the extent permittedby section 529 of the InternalRevenue Code.

(B) The authority shall provide adequate safeguards topreventtotal contributions to a variable college savings programaccount or purchasesof tuition~~credits~~units, either separatelyor combined, that are made onbehalf of a beneficiary fromexceeding the amount necessary to provide for thetuition andother highereducation expenses of the beneficiary, consistentwith themaximum contributions permitted by section 529 of theInternalRevenue Code. However, in no event shallcontributionsor purchases exceed theallowable limit for a qualified ~~state~~tuition program under section 529of the Internal Revenue Code.

(C)(1) Participation in the variable college savings programdoesnot guarantee that contributions and the investment return oncontributions,if any, will beadequate to cover future tuitionand other higher educationexpenses or that a beneficiary will beadmitted to or permitted tocontinue to attend an institution ofhigher education.

(2) Returns on contributors' investments in the variablecollegesavings program are not guaranteed by the state and thecontributors tothe variable college savings program assume allinvestment risk, includingthe potential loss of principal andliability for penalties suchas those levied for noneducationalwithdrawals.

(3) The stateshall have no debt or obligation to any contributor, beneficiary,or any other person as aresult of the establishment of theprogram, and the state assumesno risk or liability for funds invested inthe variable collegesavings program.

(4) Informational materials about the variable collegesavingsprogram prepared by the authority or its agents andprovided toprospective contributors shall state clearly theinformation set forth indivision (C) of this section.

Sec. 3334.19. (A) The Ohio tuition trust authorityshalladopt an investmentplan that sets forth investment policies andguidelines to be utilized inadministering the variable collegesavings program. Except as provided insection 3334.20 of theRevised Code, the authority shallcontract with one or moreinsurance companies, banks, or otherfinancial institutions to actas its investment agents and toprovide such services as theauthority considers appropriate tothe investment plan, including:

(2) Record keeping and accounting for individual accountsandfor the program as a whole;

(B) The authority or its investment agents shall maintain aseparate account for the beneficiary of eachcontract entered intounder thevariable college savings program. If a beneficiary hasmore than one suchaccount, the authority or its agents shalltrack totalcontributions and earnings and provide a consolidatedsystem ofaccount distributions to institutions of highereducation.

(C) Theauthority or itsinvestment agents may place assetsof theprogramin savings accounts and may purchasefixed orvariablelife insurance orannuity contracts,securities, evidenceofindebtedness, or other investment products pursuant totheinvestment plan.

(D) Contributors shall not direct the investment of theircontributions under the investment plan. The authority shallimpose otherlimits on contributors' investment discretiontothe extentrequired under section 529of the Internal RevenueCode.

(E) The investment agents with which the authoritycontractsshall discharge their duties with respect to program funds withthecare and diligencethat a prudent person familiar with suchmatters and with the character andaims of the program would use.

(F) The assets of the program shall be preserved, invested,andexpended solely for the purposes of this chapter and shall notbe loaned orotherwise transferred or usedby the state for anyother purpose. This section shall not be construed toprohibitthe investment agents of the authority from investing, by purchaseorotherwise, inbonds, notes, or other obligations of the stateor any agency orinstrumentality of the state. Unless otherwisespecified by theauthority, assets of the program shall beexpended in thefollowing order of priority:

(2) To make refunds upon termination of variable collegesavingsprogramcontracts;

(4) To pay or cover any other expenditure or disbursement theauthority determines necessary or appropriate.

(G)Fees, charges, and other costs imposed or collected bythe authority in connection with the variable collegesavingsprogram, including any fees or other payments that the authorityrequires an investment agent to pay to the authority, shall becredited to either the variable operating fund or the index operating fund at the discretion of the authority. ~~The fund shallbe~~ These funds are hereby created in the~~custody of the treasurer of state, but shall not be partof the~~state treasury. Expenses incurred in the administration ofthevariable college savings program, as well as other expenses,disbursements, or payments the authority considers appropriate forthe benefit of any college savings programs administered by the authority, the state of Ohio and its citizens, shall be paidfrom the variable operating fund or the index operating fund at the discretion of the authority.

(H) No records of the authority indicating the identity ofpurchasers, contributors, and beneficiaries under the programor amountscontributed to, earned by, or distributed from programaccountsare public records within the meaning of section 149.43of the Revised Code.

Sec. 3335.02. (A) The government of the Ohio stateuniversity shall be vested in a board of ~~eleven~~ fourteen trustees in 2005, and seventeen trustees beginning in 2006, whoshall be appointed by the governor, with the advice and consentof the senate. Two of the ~~eleven~~ seventeen trustees shall be students atthe Ohio state university, and their selection and terms shall bein accordance with division (B) of this section. Except as provided in division (C) of this section and except for theterms of student members, terms of office shall be for nineyears, commencing on the fourteenth day of May and ending on thethirteenth day of May. Each trustee shall hold office from thedate of appointment until the end of the term for which the trustee was appointed. Any trustee appointed to fill a vacancyoccurringprior to the expiration of the term for which the trustee'spredecessor was appointed shall hold office for the remainder of such term. Anytrustee shall continue in office subsequent to the expirationdate of the trustee's term until thetrustee'ssuccessor takes office, or until a period of sixty days has elapsed, whicheveroccurs first. No person who has served a full nine-year term or more than sixyears of such a term shall be eligible for reappointment until a period of four years has elapsed since the last day of the term for which the person previously served. Thetrustees shall not receive compensation for their services, butshall be paid their reasonable necessary expenses while engagedin the discharge of their official duties.

(B) The student members of the board of trustees of theOhio state university have no voting power on the board. Studentmembers shall not be considered as members of the board indetermining whether a quorum is present. Student members shallnot be entitled to attend executive sessions of the board. Thestudent members of the board shall be appointed by the governor,with the advice and consent of the senate, from a group of fivecandidates selected pursuant to a procedure adopted by theuniversity's student governments and approved by the university'sboard of trustees. The initial term of office of one of thestudent members shall commence on May 14, 1988 and shall expireon May 13, 1989, and the initial term of office of the otherstudent member shall commence on May 14, 1988 and expire on May13, 1990. Thereafter, terms of office of student members shallbe for two years, each term ending on the same day of the samemonth of the year as the term it succeeds. In the event astudent member cannot fulfill a two-year term, a replacementshall be selected to fill the unexpired term in the same mannerused to make the original selection.

(C)(1) The initial terms of office for the three additional trustees appointed in 2005 shall commence on a date in 2005 that is selected by the governor with one term of office expiring on May 13, 2009, one term of office expiring on May 13, 2010, and one term of office expiring on May 13, 2011, as designated by the governor upon appointment. Thereafter terms of office shall be for nine years, as provided in division (A) of this section.

(2) The initial terms of office for the three additional trustees appointed in 2006 shall commence on May 14, 2006, with one term of office expiring on May 13, 2012, one term of office expiring on May 13, 2013, and one term of office expiring on May 13, 2014, as designated by the governor upon appointment. Thereafter terms of office shall be for nine years, as provided in division (A) of this section.

~~(A)~~, "~~Institution~~ state institution of higher education" ~~means a state university, municipaluniversity, state medical college, community college, technicalcollege, or state community college~~ has the same meaning as in section 3345.011 of the Revised Code.

(B) Each state institution of higher education shall establish competitive biddingprocedures for the purchase of printed material and shall awardall ~~such~~ contracts for the purchase of printed material in accordance with ~~such~~ those procedures.~~Notwithstanding any other provision of law,~~ The procedures shall require the institution to evaluate all bids received for all contracts for the purchase ofprinted material ~~shall be let by an institution to vendors whohave manufacturing facilities within this state, except asprovided in division (C) of this section.~~

~~(C) If the required printed products are not availablefrom a vendor who has manufacturing facilities within this state,the institution shall be permitted to purchase from anout-of-state vendor.~~

(D) No vendor with manufacturing facilities within thisstate who would execute the printing covered by the proposalshall be prohibited from submitting a proposal for considerationand any such proposal properly submitted shall be considered in accordance with the criteria and procedures established pursuant to divisions (C)(1) and (2) of section 125.09 of the Revised Code for determining whether bidders will produce the printed material at manufacturing facilities within this state or in accordance with the criteria and procedures established pursuant to division (C)(4) or (5) of that section for determining whether bidders are otherwise qualified.

An institution shall select, in accordance with the procedures it establishes under this section, a bid from among bidders that fulfill the criteria specified in the applicable divisions of section 125.09 of the Revised Code where sufficient competition can be generated within this state to ensure that compliance with this requirement will not result in paying an excessive price or acquiring a disproportionately inferior product. If there are two or more bids from among those bidders, it shall be deemed that there is sufficient competition to prevent paying an excessive price or acquiring a disproportionately inferior product.

Sec. 3345.19. In the exercise of their respective powersofgovernment conferred by Chapter 3345. of the Revised Code andother pertinent provisions of law, the boards of trustees ofBowling Green state university, Kent state university, Miamiuniversity, Ohio university, and the Ohio state university shallobserve the following enrollment limitations insofar as theautumnquarter enrollment or any other quarter enrollment on afull-time~~equivalent~~ basis as defined by the Ohio board ofregents isconcerned:

Campus student housing facilities shall only be authorizedbyboards of trustees within these limitations.

(1) "State university or college" means the institutionsdescribed in section 3345.27 of the Revised Code, thenortheastern Ohio universities college of medicine, and themedical university of Ohio at Toledo.

(3) "Statement of selective service status" means astatement certifying one of the following:

(a) That the individual filing the statement hasregistered with the selective service system in accordance withthe "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.App. 453, as amended;

(b) That the individual filing the statement is notrequired to register with the selective service for one of thefollowing reasons:

(ii) The individual is on active duty with the armed forcesof the United States other than for training in a reserve or nationalguard unit;

(iii) The individual is a nonimmigrant alien lawfully in theUnited States in accordance with section 101 (a)(15) of the"Immigration and Nationality Act," 8 U.S.C. 1101, as amended;

(iv) The individual is not a citizen of the United Statesand is apermanent resident of the Trust Territory of the Pacific Islandsor the Northern Mariana Islands.

(4) "Institution of higher education" means any eligibleinstitution approved by the UnitedStates department of education pursuant to the "HigherEducation Actof 1965," 79 Stat. 1219, as amended, or any institutionwhosestudents are eligible for financial assistance under any of theprograms described by division (E) of this section.

(B) The Ohio board of regents shall, by rule, specify theform of statements of selective service status to be filed incompliance with divisions (C) to (F) of this section. Eachstatement of selective service status shall contain a sectionwherein a male student born after December 31, 1959, certifiesthat the student has registered with the selective servicesystem inaccordance with the "Military Selective Service Act," 62 Stat.604, 50 U.S.C. App. 453, as amended. Forthose students not required to register with the selectiveservice, as specified in divisions (A)(2)(b)(i) to (iv) of thissection, a section shall be provided on the statement ofselective service status for the certification of nonregistrationand for an explanation of the reason for the exemption. Theboard of regents may require that such statements be accompaniedby documentation specified by rule of the board.

(C) A state university or college that enrolls in anycourse, class, or program a male student born after December 31,1959, who has not filed a statement of selective service statuswith the university or college shall, regardless of the student'sresidency, charge the student any tuition surcharge chargedstudents who are not residents of this state.

(D) No male born after December 31, 1959, shall beeligible to receive any loan, grant, scholarship, or otherfinancial assistance for educational expenses under section3315.33, 3333.12, 3333.122, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03,5910.032, or 5919.34 of the Revised Code unless that personhas filed a statement of selective service status with thatperson's institution of higher education.

(E) If an institution of higher education receives astatement from an individual certifying that the individualhas registered with the selective service system in accordance with the"Military Selective Service Act," 62 Stat. 604, 50 U.S.C. App.453, as amended or that the individual is exempt fromregistration for areason other than that the individual is under eighteen yearsof age, the institution shall not require the individual to file any furtherstatements. If it receives a statement certifying that theindividual is not required to register because the individualis under eighteen years of age, the institution shall require theindividual to file a new statement of selective service statuseach time the individual seeks to enroll for a new academicterm or makesapplication for a new loan or loan guarantee or for any form offinancial assistance for educational expenses, until it receivesa statement certifying that the individual has registered withthe selective service system or is exempt from registration for areason other than that the individual is under eighteen yearsof age.

Sec. 3353.01. As used in ~~sections 3353.01 to 3353.05 ofthe Revised Code~~ this chapter:

(A) "Educational television or radio" means television orradio programs which serve the educational needs of the communityand which meet the requirements of the federal communicationscommission for noncommercial educational television or radio.

(B) "Educational telecommunications network"means a system ofconnected educational television, radio, or radio reading servicefacilities and coordinated programs established and operated orcontrolled by the eTech Ohio ~~educationaltelecommunications network~~commission, pursuant to ~~sections 3353.01 to 3353.04 of theRevised Code~~ this chapter.

(C) "Transmission" means the sending out of television,radio, or radio reading service programs, either directly to thepublic, or to broadcasting stations or services for simultaneousbroadcast or rebroadcast.

(D) "Transmission facilities" means structures, equipment,material, and services used in the transmission of educationaltelevision, radio, or radio reading service programs.

(E) "Interconnection facilities" means the equipment,material, and services used to link one location to anotherlocation or to several locations by means of telephone line,coaxial cable, microwave relays, or other available technologies.

(F) "Broadcasting station" means a properly licensednoncommercial educational television or radio station,appropriately staffed and equipped to produce programs or lessonsand to broadcast programs.

(G) "Production center" means a television, radio, orradio reading service production studio, staffed and equippedwith equipment, material, and supplies necessary to produce aprogram or a lesson for broadcast or for recording on film, videotape, or audio tape.

~~(H)~~ "Radio reading service" means a nonprofit organizationthat disseminates news and other information to blind andphysically handicapped persons.

(H) "Affiliate" means an educational telecommunication entity, including a television or radio broadcasting station or radio reading service.

Sec. 3353.02. (A) There is hereby created the eTech Ohio commission as an independent agency to advance education and accelerate the learning of the citizens of this state through technology. The commission shall provide leadership and support in extending the knowledge of the citizens of this state by promoting access to and use of all forms of educational technology, including educational television and radio, radio reading services, broadband networks, videotapes, compact discs, digital video on demand (DVD), and the internet. The commission also shall administer programs to provide financial and other assistance to school districts and other educational institutions for the acquisition and utilization of educational technology.

The commission is a body corporate and politic, an agency of the state performing essential governmental functions of the state.

(B) The commission shall consist of thirteen members, nine of whom shall be voting members. Six of the voting members shall be representatives of the public. Of the representatives of the public, four shall be appointed by the governor with the advice and consent of the senate, one shall be appointed by the speaker of the house of representatives, and one shall be appointed by the president of the senate. The superintendent of public instruction or a designee of the superintendent, the chancellor of the Ohio board of regents or a designee of the chancellor, and the director of administrative services or a designee of the director shall be ex officio voting members. Of the nonvoting members, two shall be members of the house of representatives appointed by the speaker of the house of representatives and two shall be members of the senate appointed by the president of the senate. The members appointed from each chamber shall not be members of the same political party.

(C) Initial terms of office for members appointed by the governor shall be one year for one member, two years for one member, three years for one member, and four years for one member. At the first meeting of the commission, members appointed by the governor shall draw lots to determine the length of the term each member will serve. Thereafter, terms of office for members appointed by the governor shall be for four years. Terms of office for voting members appointed by the speaker of the house of representatives and the president of the senate shall be for four years. Any member who is a representative of the public may be reappointed by the member's respective appointing authority, but no such member may serve more than two consecutive four-year terms. Such a member may be removed by the member's respective appointing authority for cause.

Any legislative member appointed by the speaker of the house of representatives or the president of the senate who ceases to be a member of the legislative chamber from which the member was appointed shall cease to be a member of the commission. The speaker of the house of representatives and the president of the senate may remove their respective appointments to the commission at any time.

(D) Vacancies among appointed members shall be filled in the manner provided for original appointments. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed shall hold office for the remainder of that term. Any appointed member shall continue in office subsequent to the expiration of that member's term until the member's successor takes office or until a period of sixty days has elapsed, whichever occurs first.

(E) Members of the commission shall serve without compensation. The members who are representatives of the public shall be reimbursed, pursuant to office of budget and management guidelines, for actual and necessary expenses incurred in the performance of official duties.

(F) The governor shall appoint the chairperson of the commission from among the commission's voting members. The chairperson shall serve a term of two years and may be reappointed. The commission shall elect other officers as necessary from among its voting members and shall prescribe its rules of procedure.

(G) The commission shall establish advisory groups as needed to address topics of interest and to provide guidance to the commission regarding educational technology issues and the technology needs of educators, learners, and the public. Members of each advisory group shall be appointed by the commission and shall include representatives of individuals or organizations with an interest in the topic addressed by the advisory group.

Sec. 3353.03. (A) The eTech Ohio commission shall appoint an executive director, who shall serve at the pleasure of the commission. The executive director shall have no authority other than that provided by law or delegated to the executive director by the commission. The executive director shall do all of the following:

(1) Direct commission employees in the administration of all programs of the commission;

(2) Provide leadership and support in extending the knowledge of the citizens of this state by promoting equal access to and use of all forms of educational technology, as directed by the commission;

(3) Provide financial and other assistance to school districts and other educational institutions, affiliates, and, if approved by the commission, educational technology organizations for the acquisition and utilization of educational technology;

(B) The commission shall fix the compensation of the executive director. The executive director shall employ and fix the compensation for such employees as necessary to facilitate the activities and purposes of the commission. The employees shall serve at the pleasure of the executive director.

(D)(1) Except as provided in division (D)(2) of this section, the employees of the commission shall be exempt from Chapter 4117. of the Revised Code and shall not be public employees as defined in section 4117.01 of the Revised Code.

(2) All employees of the commission who transferred to the commission from one of the commission's predecessor agencies upon the commission's creation and, when employed by the predecessor agency were included in a bargaining unit established under Chapter 4117. of the Revised Code, shall continue to be included in that bargaining unit, are public employees as defined in section 4117.01 of the Revised Code, and may collectively bargain with the commission in accordance with that chapter. Otherwise, any employee hired by the commission after the effective date of this section, either to fill vacancies or to fill new positions, shall be exempt from Chapter 4117. of the Revised Code and shall not be public employees as defined in section 4117.10 of the Revised Code.

Sec. 3353.04. (A) The eTech Ohio ~~educationaltelecommunications network~~ commissionmay perform any act necessary to carry out the functions of this chapter, including any of the following:

~~(A)~~ (1) Make grants to institutions and other organizations as prescribed by the general assembly for the provision of technical assistance, professional development, and other support services to enable school districts, community schools established under Chapter 3314. of the Revised Code, other educational institutions, and affiliates to utilize educational technology;

(2) Establish a reporting system for school districts, community schools, other educational institutions, affiliates, and educational technology organizations that receive financial assistance from the commission. The system may require the reporting of information regarding the manner in which the assistance was expended, the manner in which the equipment or services purchased with the assistance is being utilized, the results or outcome of the utilization, the manner in which the utilization is compatible with the statewide academic standards adopted by the state board of education pursuant to section 3301.079 of the Revised Code, and any other information determined by the commission.

(3) Ensure that, where appropriate, products produced by any entity to which the commission provides financial assistance for use in elementary and secondary education are aligned with the statewide academic standards adopted by the state board pursuant to section 3301.079 of the Revised Code;

(4) Promote accessibility to educational products aligned with the statewide academic standards, adopted by the state board pursuant to section 3301.079 of the Revised Code, for school districts, community schools, and other entities serving grades kindergarten through twelve;

(5) Own ~~and~~ or operate transmission facilities and interconnection facilities, or contract for transmissionfacilities and interconnection facilities, for an educationaltelevision, radio, or radio reading service network;

~~(B)~~(6) Establish standards for interconnection facilitiesused by the commission in the transmission of educational television, radio, orradio reading service programming ~~by the commission~~;

~~(C)~~ (7) Enter into agreements with noncommercial educationaltelevision or radio broadcasting stations or radio readingservices for the ~~transmission to the broadcasting stations orservices of identical programs for broadcasting eithersimultaneously or through the use of transcription discs, videotapes, film, or audio tapes~~ operation of the interconnection;

~~(D)~~(8) Enter into agreements with noncommercial educationaltelevision~~, radio,~~ or radio ~~reading service production centersand with~~ broadcasting stations ~~and~~ or radio reading services for theproduction and use of educational television, radio, or radioreading service programs to be transmitted by the educationaltelecommunications network;

~~(E)~~(9) Execute contracts and other agreements necessary anddesirable to carry out the purposes of ~~sections 3353.01 to3353.04 of the Revised Code~~ this chapter and other duties prescribed to the commission by law or authorize the executive director of the commission to execute such contracts and agreements on the commission's behalf;

~~(F) Determine programs to be distributed through the Ohioeducational telecommunications network;~~

~~(G)~~(10) Act as consultant with educational television andeducational radio stations and radio reading services towardcoordination within the state of the distribution of federalfunds that may become available for ~~the development of~~equipment for educational broadcasting or radio reading services;

~~(H)~~(11) Make payments to noncommercial Ohio educationaltelevision or radio broadcasting stations or radio readingservices to sustain the operation of such stations or services~~,and may consign equipment to them in exchange for servicesrendered~~;

(12) In consultation with participants in programs administered by the commission, establish guidelines governing purchasing and procurement that facilitate the timely and effective implementation of such programs;

(13) In consultation with participants in programs administered by the commission, consider the efficiency and cost savings of statewide procurement prior to allocating and releasing funds for such programs;

(14) In consultation with participants in programs administered by the commission, establish a systems support network to facilitate the timely implementation of the programs and other projects and activities for which the commission provides assistance.

(B) Chapters 123., 124., 125., and 153. of the Revised Code and sections 9.331, 9.332, and 9.333 of the Revised Code do not apply to contracts, programs, projects, or activities of the commission.

Sec. 3353.06. (A) The affiliates services fund is hereby createdin the state treasury. The eTech Ohio ~~educational telecommunicationsnetwork~~ commission shall deposit any money it receives for services provided to affiliates to thecredit of the fund, including:

(2) Charges levied for maintenance of telecommunications,broadcasting, or transmission equipment;

(B) The commission shall use money credited to the affiliatesservices fund for any commission operating purposes, including:

(1) The purchase, repair, or maintenance of telecommunications,broadcasting, or transmission equipment;

Sec. 3353.07. (A) ~~As used in this section,"broadcastingstation" has the same meaning as in section 3353.01of the RevisedCode.~~

~~(B)~~ Ohio government telecommunications shall befundedthrough the eTech Ohio ~~educational telecommunications network~~commissionand shall be managed by a broadcasting station under a contract.The contract shall not take effect until the program committee ofOhio government telecommunications approves the contract. Thebroadcasting station shall manage the staff of Ohio governmenttelecommunications.

~~(C)~~(B)(1) There is hereby created the program committee of Ohiogovernment telecommunicationsthatshall consist of the presidentof thesenate, speaker of the house of representatives, minorityleaderof the senate, and minority leader of the house ofrepresentatives, or their designees. By a vote of a majority ofits members, the program committee may add additional members tothe committee.

(2) The program committee shall adopt rules that govern theoperation of Ohio government telecommunications andthe coverageand distribution of official governmental activities by Ohiogovernment telecommunications.

Sec. 3354.25. (A) The provisions of this section prevail over conflicting provisions of this chapter; however, except as provided in this section, the community college district and its board of trustees created by this section shall comply with the provisions of this chapter.

(B)(1) The territory of Warren county is hereby added to the territory of the community college district of Montgomery county, creating the Warren county Montgomery county community college district and replacing the former community college district of Montgomery county. The district created in this section may be known as and operate under the name of the Sinclair community college district.

(2) The community college district created by this section shall be divided into separate taxing subdistricts, one consisting of the territory of Warren county, and another consisting of the territory of Montgomery county.

Taxes for the benefit of the community college district shall be levied and the benefits from the revenues of those taxes shall be apportioned among the subdistricts only in accordance with this section.

(C) The board of trustees of the two-county community college district created by this section shall consist of eleven members.

(1) Nine members of the board of trustees shall be residents of Montgomery county. The initial Montgomery county members shall be the same members of the board of trustees of the former community college district of Montgomery county, as it existed prior to the effective date of this section, whose terms shall expire and whose successors shall be appointed as they would have otherwise under division (B) of section 3354.05 of the Revised Code.

(2) Two members of the board of trustees shall be residents of Warren county, one of whom shall be appointed by the board of county commissioners of Warren county, and one of whom shall be appointed by the governor with the advice and consent of the senate. Each of the initial appointments under division (C)(2) of this section shall be made within ninety days after the effective date of this section. At the time of the initial meeting of the trustees of the community college district created by this section, a drawing among the Warren county appointees shall be held to determine the initial term of each appointee, one trustee to serve for a term ending three years after the expiration date of the Montgomery county trustee's term that is the first to expire after the effective date of this section, and the other trustee to serve for a term ending five years after the expiration date of the Montgomery county trustee's term that is the first to expire after the effective date of this section. Thereafter, the successive terms of the Warren county members of the board of trustees shall be for five years, each term ending on the same day of the same month of the year as did the term which it succeeds. Each trustee shall hold office from the date of the trustee's appointment until the end of the term for which appointed. Any trustee appointed to fill a vacancy occurring prior to the expiration of the term for which the trustee's predecessor was appointed shall hold office for the remainder of that term. Any trustee shall continue in office subsequent to the expiration date of the trustee's term until the trustee's successor takes office, or until a period of sixty days has elapsed, whichever occurs first.

(D) The board of trustees of the community college district created by this section shall continue to comply with division (G) of section 3354.09 of the Revised Code, regarding tuition for students who are residents of Ohio but not of the district, and for students who are nonresidents of Ohio. The tuition rate shall be based on the student's county of residence and shall apply to all Sinclair community college classes in all Sinclair community college locations. Except as provided in division (G)(2) of this section, students who are residents of Warren county shall continue to be charged tuition at the same rate as Ohio residents who are not residents of the district.

(E)(1) Unless the conditions prescribed in division (F) of this section are satisfied, the trustees from each respective county of the community college district created by this section shall have no vote on any of the following matters pertaining to the other county:

(2) As long as either of the conditions prescribed in division (F)(1) or (2) of this section are satisfied, each member of the board of trustees shall have full voting rights on all matters coming before the board.

(3) At all times, on any matter related to community college programming or facilities within one county or the other, both of the following are necessary:

(a) The affirmative vote of a majority of the full membership of the board of trustees;

(b) The affirmative vote of at least fifty per cent of the trustees from the affected county.

(4) If the millage rate of the Warren county tax levy described in division (F) of this section is subsequently reduced by a vote of the electors of Warren county to the extent that it no longer satisfies a condition prescribed in either division (F)(1) or (2) of this section, the voting restrictions prescribed in division (E)(1) of this section again apply to the board effective on the first day of the tax year that begins after the reduction is approved by the electors.

(F) The voting restrictions of division (E)(1) of this section apply until the electors of Warren county approve a tax levy, in accordance with division (G)(3) of this section, equivalent to the tax levy approved by the electors of Montgomery county for the support of the former community college district of Montgomery county prior to the effective date of this section. For this purpose, an equivalent tax levy is a tax levied in Warren county that either:

(1) In the first tax year for which the tax is collected, yields revenue per capita equal to or greater than the yield per capita of levies of the community college district in effect that tax year in Montgomery county, as jointly determined by the county auditors of Montgomery and Warren counties;

(2) In the first tax year for which the tax is collected, imposes a millage rate that is equal to or greater than the effective tax rate of levies of the community college district in effect that tax year in Montgomery county, as jointly determined by the county auditors of Montgomery and Warren counties.

As used in division (F)(2) of this section, "effective tax rate" means the quotient obtained by dividing the total taxes charged and payable for the taxing subdistrict for a tax year, after the reduction prescribed by section 319.301 of the Revised Code but before the reduction prescribed by section 319.302 or 323.152 of the Revised Code, by the taxable value for the taxing subdistrict for that tax year.

(G)(1) The board of trustees may propose to levy a tax on taxable property in Montgomery county to be voted on by the electors of Montgomery county as provided in division (G)(3) of this section. Any money raised by a tax levied by the former community college district of Montgomery county or a subsequent tax levied in Montgomery county in accordance with division (G)(3) of this section shall be used solely for the benefit of Montgomery county residents attending Sinclair community college in the form of student tuition subsidy, student scholarships, and instructional facilities, equipment and support services located within Montgomery county, shall be deposited into a separate fund from all other revenues of the district, and shall be budgeted separately.

(2) The board of trustees may propose to levy a tax on taxable property in Warren county to be voted on by electors of Warren county as provided in division (G)(3) of this section. Any money raised by the tax shall be used solely for the benefit of Warren county residents attending Sinclair community college in the form of student tuition subsidy, student scholarships, and instructional facilities, equipment and support services located within Warren county, shall be deposited into a separate fund from all other revenues of the district, and shall be budgeted separately. If the tax is approved in accordance with division (G)(3)(c) of this section, the board of trustees may adjust the rate of tuition charged to Warren county residents commensurate with the amount of that tax the board of trustees dedicates for instructional and general services provided to Warren county residents.

(3) For each taxing subdistrict of the community college district created by this section, the board of trustees may propose to levy a tax in accordance with the procedures prescribed in section 3354.12 of the Revised Code, except as provided in divisions (G)(3)(a) to (c) of this section.

(a) Wherein section 3354.12 of the Revised Code the terms "district" and "community college district" are used, those terms shall be construed to mean the appropriate taxing subdistrict described in division (B)(2) of this section, except that the "board of trustees of the community college district" means the board of trustees for the entire community college district as described in division (C) of this section. That board of trustees may propose separate levies for either of the two taxing subdistricts.

(b) "Tax duplicate," as used in section 3354.12 of the Revised Code, means the tax duplicate of only the appropriate taxing subdistrict and not the tax duplicate of the entire community college district.

(c) The resolution of the board of trustees proposing a tax levy in the Warren county taxing subdistrict is subject to approval of a two-thirds vote of the board of county commissioners of Warren county. If so approved by the board of county commissioners of Warren county, that board shall certify the resolution to the Warren county board of elections, which shall place on the ballot for the electors of Warren county the question of levying the tax proposed in the resolution on all taxable property of the county. If approved by the electors of the county, the tax shall be levied as provided in section 3354.12 of the Revised Code and anticipation notes may be issued by the board of trustees in accordance with that section.

(H)(1) The board of trustees of the community college district created by this section may issue bonds in accordance with section 3354.11 of the Revised Code; however, the board may limit the question of approval of the issue of those bonds to the electors of only one of the two taxing subdistricts described in division (B)(2) of this section, in which case the board also may limit the use of the property or improvements to the residents of that subdistrict.

(2) A resolution of the board of trustees proposing the issuance of bonds for only the Warren county taxing subdistrict is subject to approval of a two-thirds vote of the board of county commissioners of Warren county. If so approved by the board of county commissioners of Warren county, that board shall certify the resolution to the Warren county board of elections which shall place on the ballot for the electors of Warren county the question of issuing bonds as proposed in the resolution.

Sec. 3362.02. The board of trustees of Shawnee stateuniversity shall annually elect from their members a ~~chairman~~chairperson and~~vice-chairman~~ vice-chairperson; and they may also appoint asecretary of theboard, a treasurer, and such other officers of the university asthe interests of the university require, who may be members ofthe board. The treasurer, before entering upon the discharge of~~his~~ official duties, shall give bond to the state or be insured for thefaithfulperformance of ~~his~~ the treasurer's duties and the properaccounting for allmoneys coming into ~~his~~ the treasurer's care. The amount of saidbond or insurance shall bedetermined by the board, but shall not be for a sum less than theestimated amount which may come into the treasurer's sole control atany time, less any reasonable deductible. ~~Said bond shall be approved by the attorney general.~~

Sec. 3365.01. As used in ~~sections 3365.01 to 3365.10 oftheRevised Code~~ this chapter:

(A) "College" means any state-assisted college oruniversitydescribed in section 3333.041 of the Revised Code, anynonprofitinstitution holding a certificate of authorizationpursuant toChapter 1713. of the Revised Code,any private institution exemptfrom regulation under Chapter 3332. of the Revised Code asprescribed in section 3333.046 of theRevised Code, and anyinstitution holding a certificate ofregistration from the stateboard ofcareer colleges andschools and programauthorizationfor an associate orbachelor'sdegree programissued under section3332.05 of theRevised Code.

(B) "School district," except as specified in division (G)of this section, means any school district to which astudent isadmitted under section 3313.64, 3313.65, 3313.98, or3317.08 ofthe Revised Code and does not include a jointvocational orcooperative education school district.

(D) "Participant" means a student enrolled in a collegeunder the post-secondary enrollment options program establishedbythis chapter.

(F) "School foundation payments" means the amount requiredto be paid to a school district for a fiscal year under Chapter3317. of the Revised Code.

(G) "Tuition base" means, with respect to a participant'sschool district, the greater of the following:

(1) The fiscal year 2005 formula amount defined in~~division (B) of~~section 3317.02 ofthe Revised Code multiplied by the district's fiscal year 2005 cost-of-doing-business factor defined in ~~division(N) of~~ that section~~3317.02 of the Revised Code. The~~;

(2) The sum of (the current formula amount times the current cost-of-doing-business factor defined in section 3317.02 of the Revised Code) plus the per pupil amount of the base funding supplements specified in divisions (C)(1) to (4) of section 3317.012 of the Revised Code.

The participant's "schooldistrict"in the case of a participant enrolled in a community school shallbethe school district in which the student is entitled to attendschool undersection 3313.64 or 3313.65 of the Revised Code.

(H) "Educational program" means enrollment in one or moreschool districts, in a nonpublic school, or in a college underdivision (B) of section 3365.04 of the Revised Code.

(I) "Nonpublic school" means a chartered or noncharteredschool forwhichminimum standards are prescribed by the stateboard of educationpursuant to division (D) of section 3301.07 ofthe Revised Code.

(J) "School year" means the year beginning on the firstdayof July and ending on the thirtieth day of June.

(K) "Community school" means any school established pursuanttoChapter 3314. of the Revised Code that includes secondarygrades.

(L) "Community school payments" means payments made by thedepartment of education to a community school pursuant to division(D) of section 3314.08 of the Revised Code.

Sec. 3365.02. There is hereby established thepost-secondary enrollment options program under which a secondarygrade student who is a resident of this state may enroll at a college, on a full- or part-timebasis, and complete nonsectarian courses for high school andcollege credit. The purpose of the program is to provide enriched education opportunites to secondary grade students that are beyond the opportunities offered by the high school in which they are enrolled.

Secondary grade students in a nonpublic school mayparticipate in the post-secondary enrollment options program ifthe chief administrator of such school notifies the department ofeducation by the first day of April prior to the school year inwhich the school's students will participate.

The state board of education, after consulting with theboard of regents, shall adopt rules governing the program. Therules shall include:

(A) Requirements for school districts, communityschools, or participatingnonpublic schools to provide information about the program priorto the first day of March of each year to all students enrolledin grades eight through eleven;

(B) A requirement that a student or the student's parentinform thedistrict board of education, the governing authority of a communityschool, or the nonpublic school administratorby the thirtieth day of March of the student's intent toparticipate in the program during the following school year. Therule shall provide that any student who fails to notify adistrict board, the governing authority of a communityschool, or the nonpublic school administrator by therequired date may not participate in the program during thefollowing school year without the written consent of the districtsuperintendent, the governing authority of a communityschool, or the nonpublic school administrator.

(C) Requirements that school districts and community schools providecounselingservices to students in grades eight through eleven andtotheirparents before the students participate in the program under thischapter to ensure that students and parents are fully aware ofthe possible risks and consequences of participation. Counselinginformation shall include without limitation:

(7) The consequences of failing or not completing a coursein which the student enrolls and the effect of the grade attainedin the course being included in the student's grade pointaverage, if applicable;

(8) The effect of program participation on the student'sability to complete the district's, community school's,or nonpublic school'sgraduation requirements;

(9) The academic and social responsibilities of studentsand parents under the program;

(10) Information about and encouragement to use thecounseling services of the college in which the student intendsto enroll.

(D) A requirement that the student and the student's parentsign aform, provided by the school district or school, stating that they havereceived the counseling required by division (C) of this sectionand that they understand the responsibilities they must assume inthe program;

(F) A requirement that a student may not enroll in anyspecific college course through the program if the student has taken highschool courses in the same subject area as that college course and has failedto attain a cumulative grade point average of at least 3.0 on a 4.0 scale, orthe equivalent, in such completed high school courses;

(G) A requirement that a student or the student's parent will reimburse the state for the amount of state funds paid to a college for a course in which the student is enrolled under this chapter if the student does not attain a passing final grade in that course.

Sec. 3365.04. The rules adopted under section 3365.02 ofthe Revised Code shall provide for students to enroll in coursesunder either of the following options:

(A) The student may elect at the time of enrollment to~~receive only college credit for~~ be responsible for payment of all tuition and the cost of all textbooks, materials, and fees associated with the course. The college shallnotify the student about payment of tuition and fees in thecustomary manner followed by the college~~, and the student shallbe responsible for payment of all tuition and the cost of alltextbooks, materials, and fees associated with the course~~. IfA student electing this option also shall elect, at the time of enrollment, whether to receive only college credit or high school credit and college credit for the course.

(1) The student may elect to receive only college credit for the course. Except as provided in section 3365.041 of the Revised Code, if the student successfully completes the course, the college shallaward the student full credit for the course, but the boardof education, community school governing authority,or nonpublic participating school shall not award the highschoolcredit.

(2) The student may elect to receive both high school credit and college credit for the course. Except as provided in section 3365.041 of the Revised Code, if the student successfully completes the course, the college shall award the student full credit for the course and the board of education, community school governing authority, or nonpublic school shall award the student high school credit.

(B) The student may elect at the time of enrollment foreach course to ~~receive both~~ have the college ~~credit and high schoolcredit~~ reimbursed under section 3365.07 of the Revised Code. Except as provided in section 3365.041 of theRevised Code, if the student successfully completes thecourse, thecollege shall award the student full credit for the course,the boardof education, community school governing authority, or nonpublic school shall award the studenthigh schoolcredit, and the collegeshall bereimbursed in accordance with section 3365.07 of the RevisedCode.

When determining a school district's formula ADMundersection3317.03 of the Revised Code, the time a participant is attendingcourses under division (A) of this section shall be considered astime the participant is not attending or enrolled in schoolanywhere, and the time a participant is attending courses underdivision (B) of this section shall be considered as time theparticipant is attending or enrolled in the district's schools.

Sec. 3365.041. (A) When a school district superintendent or governingauthority of a community school expelsa student under division (B) of section 3313.66 of theRevisedCode, the district superintendent or board shall send a written noticeof theexpulsion to any college in which the expelled student isenrolled under section 3365.03 of the Revised Code at thetime theexpulsion is imposed. The notice shall indicate the date theexpulsion is scheduled to expire. The notice also shall indicatewhether the district board of education or community school governingauthority has adopted a policy undersection 3313.613 of the Revised Code to deny high schoolcreditfor post-secondary courses taken during an expulsion. If the expulsion isextended under division (F) of section 3313.66 of theRevised Code, the districtsuperintendent or governing authority shall notify the college of theextension.

(B) A college may withdraw its acceptance undersection 3365.03 of the Revised Code of a student who isexpelled fromschool under division (B) of section 3313.66 of the RevisedCode. As provided in section 3365.03 of the RevisedCode, regardless ofwhether the college withdraws its acceptance of the student for the collegeterm in which the student is expelled, the student isineligible to enroll in a college under that section forsubsequent college terms during the period of the expulsion,unless the student enrolls in another school district or communityschool, orparticipating nonpublic school during that period.

If a college withdraws its acceptance of an expelled student whoelected ~~the~~ either option of division (A)(1) or (2) of section 3365.04 of theRevised Code, the college shallrefund tuition and fees paid by the student in the same proportion that itrefunds tuition and fees to studentswho voluntarily withdraw from the college at the same time in the term.

If a college withdraws its acceptance of an expelled student whoelected the option of division (B) of section 3365.04 of theRevised Code, the school district or community schoolshall not award high school credit for the college courses in which thestudent was enrolled at thetime the college withdrew its acceptance, and any reimbursementunder section 3365.07 of the Revised Code for the student'sattendance prior to the withdrawalshall be the same as would be paid for a student who voluntarily withdrew fromthe college at the same time in the term. If the withdrawal results in thecollege's receiving no reimbursement, thecollege may require the student to return or pay for the textbooks andmaterials it provided the student free of charge under section3365.08 of the Revised Code.

(C) When a student who elected the option of division(B) ofsection 3365.04 of the Revised Code is expelled underdivision (B)of section 3313.66 of the Revised Code from a schooldistrict or community school thathas adopted a policy under section 3313.613 of the RevisedCode,that election is automatically revoked for all college courses in which thestudent is enrolled during the college term in which theexpulsion is imposed. Any reimbursement under section 3365.07 ofthe Revised Code for the student's attendance prior to theexpulsion shall be the same as wouldbe paid for a student who voluntarily withdrew from the college at the sametime in the term. If the revocation results in the college's receiving noreimbursement, the college may require thestudent to return or pay for the textbooks and materials it provided thestudent free of charge under section 3365.08 of the RevisedCode.

No later than five days after receiving an expulsion notice fromthe superintendent of a district or the governing authority of a communityschool that has adopted a policy under section3313.613 of the Revised Code, the college shall send awrittennotice to the expelled student that the student's election of division(B) of section 3365.04 of the Revised Code isrevoked. Ifthe college elects not to withdraw its acceptance of the student, the studentshall pay all applicable tuition and fees for the college courses and shallpay for thetextbooks and materials that the college provided under section3365.08 of the Revised Code.

Sec. 3365.05. High school credit awarded for coursessuccessfully completed under this chapter shall count toward thegraduation requirements and subject area requirements of theschool district, community school, or nonpublic school. If a course comparable toone a student completed at a college is offered by the district,community school,or nonpublic school, the board or school shall award comparablecredit for the course completed at the college. If no comparablecourse is offered by the district, community school, ornonpublic school, the boardor school shall grant an appropriate number of credits in asimilar subject area to the student.

If there is a dispute between a school district board or a community schoolgoverning authority and astudent regarding high school credits granted for a course, thestudent may appeal the board's or governing authority's decision to thestate board ofeducation. The state board's decision regarding any high schoolcredits granted under this ~~division~~ section is final.

Evidence of successful completion of each course and thehigh school credits awarded by the district, communityschool, or participatingnonpublic school shall be included in the student's record. Therecord shall indicate that the credits were earned as aparticipant under this chapter and shall include the name of thecollege at which the credits were earned. The district board,community school governing authority, ornonpublic school shall determine whether and the manner in whichthe grade achieved in a course completed at a college underdivision (A)(2) or (B) of section 3365.04 of the Revised Code will becounted in any cumulative grade point average maintained for thestudent.

Sec. 3365.08. (A) A college that expects to receive orreceives reimbursement under section 3365.07 of the Revised Codeshall furnish to a participant all textbooks and materialsdirectly related to a course taken by the participant underdivision (B) of section 3365.04 of the Revised Code. No collegeshall charge such participant for tuition, textbooks, materials,or other fees directly related to any such course.

(B) No student enrolled under this chapter in a course forwhich credit toward high school graduation is awarded shallreceivedirect financial aid through any state or federal program.

(C) If a school district provides transportation forresident school students in grades eleven and twelve undersection3327.01 of the Revised Code, a parent of a pupil enrolledin acourse under division (A)(2) or (B) of section 3365.04 of the RevisedCodemay apply to the board of education for full or partialreimbursement for the necessary costs of transporting the studentbetween the secondary school the student attends and thecollegein which the student is enrolled. Reimbursement maybe paidsolely from funds received by the district under division(D) ofsection 3317.022of the Revised Code. The state board ofeducation shallestablish guidelines, based on financial need,under which adistrict may provide such reimbursement.

(D) If a community school provides or arrangestransportationfor itspupils in grades nine through twelve undersection 3314.091 of theRevised Code, a parent of a pupil of thecommunity schoolwho is enrolled in a course under division (A)(2) or (B) ofsection 3365.04 oftheRevisedCode may apply to the governingauthority of the community school forfull or partialreimbursement of the necessary costs oftransporting the studentbetween the community school and thecollege. The governingauthority may pay the reimbursement inaccordance with the stateboard's rules adopted under division (C)of this section solelyfrom funds paid to it under section 3314.091 of theRevised Code.

Sec. 3365.11. If the superintendent of the school district or the chief administrator of the community school or nonpublic school in which the student is enrolled notifies the superintendent of public instruction that the student has not attained a passing final grade in a college course in which the student is enrolled under this chapter, the superintendent of public instruction shall initiate proceedings to seek reimbursement from the student or the student's parent for the amount of state funds calculated for payment to the college on behalf of the student for enrollment in that college course. In seeking reimbursement, the superintendent of public instruction may request that the attorney general bring a civil action in the court of common pleas of the county in which the school district, community school, or nonpublic school is located, if the superintendent of public instruction determines it appropriate to bring such an action.

Upon the collection of any funds from a student or student's parent under this section, the superintendent of public instruction shall credit the amount collected to the school district or community school from which an amount was deducted under division (D) of section 3365.07 of the Revised Code for the course or, if the student is enrolled in a nonpublic school, to the general revenue fund.

Sec. 3375.40. Each board of library trustees appointedpursuant tosection 3375.06, 3375.10, 3375.12, 3375.15, 3375.22,or 3375.30 of the Revised Code maydo the following:

(A) Hold title to and have the custody of all real andpersonal property of the free public library under itsjurisdiction;

(B) Expend for library purposes, and in the exercise ofthe power enumerated in this section, all moneys, whether derivedfrom the county library and local government support fund orotherwise, credited to the free public library under itsjurisdiction and generally do all things it considers necessaryfor the establishment, maintenance, and improvement of thefree publiclibrary under its jurisdiction;

(C) Purchase, lease, construct, remodel, renovate, orotherwise improve, equip, and furnish buildings or parts ofbuildings and other real property, and purchase, lease, or otherwise acquiremotor vehicles and otherpersonal property, necessary for the propermaintenance and operation of the free publiclibrary under itsjurisdiction, and paytheir costs in installments or otherwise. Financing of these costs may be provided through the issuance of notes,through an installment sale, or through a lease-purchase agreement. Any suchnotes shall be issued pursuant to section 3375.404 of the Revised Code.

(D) Purchase, lease, lease with an option to purchase, orerect buildings or parts of buildings to be used as mainlibraries, branch libraries, or library stations pursuant tosection 3375.41 of the Revised Code;

(E) Establish and maintain a main library, branches,library stations, and traveling library service within theterritorial boundaries of the political subdivision or district over whichit has jurisdiction of free public library service;

(F)Except as otherwise provided in this division, establish and maintain branches, library stations, andtraveling library service in any school district, outside theterritorial boundaries of the political subdivision or district over whichit has jurisdiction of free public library service, uponapplication to and approval of the state library board, pursuantto section 3375.05 of the Revised Code. The board oflibrarytrustees of any free public library maintaining branches,stations, or traveling library service, outside the territorialboundaries of the political subdivision or district over which it hasjurisdiction of free public library service, on September 4, 1947, maycontinue to maintain and operatethose branches,those stations, andthattraveling library service without the approval of the statelibrary board.

(G) Appoint and fix the compensation of all of theemployees of the free public library under its jurisdiction, paythe reasonable cost of tuition for any of its employees whoenroll in a course of study the board considers essential to theduties of the employee or to the improvement of the employee'sperformance, and reimburse applicants for employment for anyreasonable expenses they incur by appearing for a personalinterview;

(H) Make and publish rules for the proper operation andmanagement of the free public library and facilities under its jurisdiction,including rules pertaining to the provision of library servicesto individuals, corporations, or institutions that are notinhabitants of the county;

(I) Assess uniform fees for the provision of services to patrons of the library, but no fee shall be assessed for the circulation of printed materials held by the library except for the assessment of fines for materials not returned in accordance with the board's rules;

(J) Establish and maintain a museum in connection with andas an adjunct to the free public library under its jurisdiction;

~~(J)~~(K) By the adoption of a resolution, accept any bequest,gift, or endowment upon the conditions connected withthebequest, gift, or endowment. No such bequest, gift, orendowment shall be accepted bythe board ifits conditions remove any portion of the free public library underthe board'sjurisdiction from the control ofthe board or iftheconditions, in any manner, limit the free use ofthe library orany partof it by the residents of the counties in whichthelibrary is located.

~~(K)~~(L) At the end of any fiscal year, by a two-thirds vote ofits full membership, set aside any unencumbered surplus remainingin the general fund of thefree public library under its jurisdiction for anypurpose, including creating or increasing a special building andrepair fund, or for operating the library or acquiring equipmentand supplies;

~~(L)~~(M) Procure and pay all or part of the cost of group term life,hospitalization, surgical, major medical, disability benefit,dental care, eye care, hearing aids, or prescription druginsuranceor coverage, or a combination of any ofthose types ofinsurance or coverage, whether issued by an insurance company ora health insuring corporationduly licensed by the state, covering its employees, and, in the case ofgroup term life,hospitalization, surgical, major medical, dental care, eye care, hearing aids,or prescription drug insuranceor coverage, also covering the dependents andspouses ofits employees, and, in the case of disabilitybenefits, also coveringthe spouses ofits employees.

~~(M)~~(N) Pay reasonable dues and expenses for the free public library and librarytrustees in library associations.

Any instrument by which real property is acquired pursuant to this sectionshall identify the agency of the state that has the use and benefit of thereal property as specified in section 5301.012 of the Revised Code.

~~Section~~ Sec. 3375.48. ~~The judges of the courtofcommon pleasof any county inwhich there is a~~ A law library association ~~which furnishes~~ that receives fines and penalties, and moneys arising from forfeited bail, under sections 3375.50 to 3375.53 of the Revised Code shall furnish to all of the membersof the ~~Ohio~~ general assembly, the ~~county~~ officers of the county in which the association is located, and the judges of the~~several~~ courts in ~~the~~ that county admission to ~~its~~ the associations's law library and the use of itsbooks, materials, and equipment free of charge~~, upon the appointment by the~~. The association's board of trustees ~~of suchassociation of~~ may appoint a person to act as librarian ~~thereof, or of a person to act aslibrarian~~ and ~~not more than two~~ additional persons to act as assistant ~~law~~librarians~~thereof,~~ of the law library. The board shall ~~fix~~ be responsible for fixing and paying the compensation of ~~such~~ those persons, ~~which shall be paid fromthe county treasury~~ subject to section 3375.49 of the Revised Code.

Sec. 3375.49. ~~For~~ (A) Subject to divisions (B) and (C) of this section, for the use of the law library referred toin section 3375.48 of the Revised Code, the board of countycommissioners shall provide~~, at the expense of the county,suitable rooms with sufficient and suitable bookcases~~ space in thecounty courthouse or~~, if there are no suitable rooms in thecourthouse, any other suitable rooms at~~ in any other building located in the county seat ~~withsufficient~~, and ~~suitable bookcases~~ utilities for that space. ~~The~~

(B)(1) Subject to division (C) of this section, through calendar year 2006, the board of county commissioners shall be responsible for paying the compensation of the librarian and up to two assistant librarians of the law library appointed by the board of trustees of the law library association under section 3375.48 of the Revised Code and the costs of the space in the county courthouse or other building that the board provides for the use of the law library under division (A) of this section, the utilities for that space, and furniture and fixtures for the law library.

(2) In calendar years 2007 through 2010, the board of county commissioners and the board of trustees shall be responsible for paying the compensation of the librarian and up to two assistant librarians appointed under section 3375.48 of the Revised Code and the costs of the space in the county courthouse or other building that the board of county commissioners provides for the use of the law library under division (A) of this section, the utilities for that space, and furniture and fixtures for the law library as follows:

(a) In calendar year 2007, the board of county commissioners shall pay eighty per cent, and the board of trustees shall pay twenty per cent.

(b) In calendar year 2008, the board of county commissioners shall pay sixty per cent, and the board of trustees shall pay forty per cent.

(c) In calendar year 2009, the board of county commissioners shall pay forty per cent, and the board of trustees shall pay sixty per cent.

(d) In calendar year 2010, the board of county commissioners shall pay twenty per cent, and the board of trustees shall pay eighty per cent.

(3) Beginning in calendar year 2011 and thereafter, the board of trustees shall be responsible for paying the compensation of the librarian and all assistant librarians appointed under section 3375.48 of the Revised Code as well as the costs of the space in the county courthouse or other building that the board of county commissioners provides for the use of the law library under division (A) of this section, the utilities for that space, and the law library's furniture and fixtures.

(C) If the board of trustees of a law library association referred to in section 3375.48 of the Revised Code rents, leases, lease-purchases, or otherwise acquires space for the use of the law library, or constructs, enlarges, renovates, or otherwise modifies buildings or other structures to provide space for the use of the law library, the board of county commissioners of the county in which the association is located has no further obligation under division (A) of this section to provide space in the county courthouse or any other building located in the county seat for the use of the law library and utilities for that space, and has no further obligation under division (B) of this section to make payments for the compensation of the librarian and up to two assistant librarians of the law library appointed under section 3375.48 of the Revised Code and for the costs of space in the county courthouse or an other building for the use of the law library, the utilities for that space, and the law library's furniture and fixtures.

(D) The librarian ~~or person incharge~~ of the law library shall receive and safely keep in ~~theserooms~~ the law library the law reports and other books furnished by the state foruse of the court and bar. ~~The board of county commissionersshall heat and light any such rooms. The~~

(E) The books, computercommunications console that is a means of access to a system ofcomputerized legal research, microform materials and equipment,videotape materials and equipment, audio or visual materials andequipment, other materials and equipment utilized in conductinglegal research, ~~and~~ furniture, and fixtures of the law library association thatare owned by, and used exclusively in, the law library are exemptfrom taxation.

Sec. 3375.54. The money that is paid to the board of trustees of a lawlibrary association under sections 3375.50 to 3375.53 of the Revised Codeshall be expended in the support and operation of the law library association~~and~~; in the purchase, lease, or rental of lawbooks, a computer communicationsconsole that is a means of access to a system of computerized legal research,microform materials and equipment, videotape materials and equipment, audio orvisual materials and equipment, ~~and~~ other ~~services,~~ materials, and equipment~~that provide legal information or facilitate~~ utilized in conducting legal research, furniture, and fixtures used in the association's law library; and to pay the compensation of any librarian and assistant librarians of the law library appointed under section 3375.48 of the Revised Code.

Sec. 3375.55. ~~Judges of the county court in the county and officers~~ Officers of thetownships and municipal corporations ~~therein~~ in a county in which a law library association that receives fines and penalties, and moneys arising from forfeited bail, under sections 3375.50 to 3375.53 of the Revised Code is located shall have the same free use ofthe books, materials, and equipment of the association's law library ~~receiving moneys under sections 3375.50 to3375.53, inclusive, of the Revised Code,~~ as general assembly members and the judges and county officers mentioned in section 3375.48 of the Revised Code.

Sec. 3381.02. A regional arts and cultural district may becreated ~~under section 3381.03 or 3381.04 of the Revised Code~~ forany of the following purposes: making grants to support theoperating or capital expenses of arts or cultural organizationslocated within its district, or acquiring, constructing,equipping, furnishing, repairing, remodeling, renovating,enlarging, improving, or administering artistic or culturalfacilities. A regional arts and cultural district is a politicalsubdivision of the state and a body corporate, comprised of theterritory of a county, or two or more counties, municipalcorporations, townships, or any combination thereof~~, provided,that if~~. If more than one county is in a regional arts and culturaldistrict, each county shall be contiguous to a county in ~~its~~ thedistrict;, and, ~~provided~~ also in the case of a combination of political subdivisions, ~~that~~ each municipal corporation ortownship shall either be contiguous to a county, municipalcorporation, or township in ~~its~~ the regional arts and cultural district, or each municipalcorporation or township shall be located in a county that iscontiguous to a county in ~~its~~ the district.

Sec. 3381.04. (A) In lieu of the procedure set forth insection 3381.03 of the Revised Code, any county with a population of five hundred thousand or more ~~may~~, at anytime ~~prior to~~ before the creation of a regional arts and culturaldistrict ~~pursuant to~~ under that section ~~3381.03 of the Revised Code~~, may createa regional arts and cultural district by adoption of a resolution~~or ordinance~~ by the board of county commissioners of ~~such~~ that county.~~Such~~ The resolution shall state all of the following:

~~(B)~~(2)That the territory of the district shall be coextensive with theterritory of ~~such~~ the county;

~~(D)~~(4) The location of the principal office of the districtor the manner in which the location shall be selected.

(B) The district provided for in ~~such~~ the resolution ~~or ordinance~~shall be created upon the adoption of ~~such~~ the resolution ~~orordinance~~ by the board of county commissioners of ~~such~~ that county.Upon the adoption of ~~such~~ the resolution ~~or ordinance~~, ~~such~~ the countyand the municipal corporations and townships contained ~~therein~~ in the countyshall not thereafter be a part of any other regional arts andcultural district.

(C) The board of trustees of any regional arts and culturaldistrict formed in accordance with this section shall becomprised of three members appointed by the ~~same persons who comprise such county's~~ board ofcounty commissioners.

Sec. 3381.05. Within sixty days after a regional arts andcultural district has been created ~~under section 3381.03 of theRevised Code~~, the board of trustees of the district shall beappointed as provided in this section.

Members of a board of trustees of a regional arts and cultural district created by theexclusive action of a county shall be appointed by the board of countycommissioners of ~~such~~ the county. A board of trustees of a districtcreated by two or more political subdivisions shall consist of~~such~~ the number of members, and shall be appointed by ~~such~~ the publicofficers or bodies, as shall be provided in the resolutions orordinances creating ~~such~~ the district, or any amendments ~~thereto~~ to them.~~All~~

All members of a board of trustees of a regional arts andcultural district ~~created under section 3381.03 of the RevisedCode~~ shall be persons who have broad knowledge and experience inthe arts or cultural heritage and shall have other qualificationsas are specified in the ~~resolution~~ resolutions or ~~ordinance~~ ordinances creating thedistrict, or any amendments ~~thereto~~ to them; provided, that at least twomembers of the board of trustees shall be persons who devote a major portionof their time to practicing, performing, or teaching any of thearts or who are professional administrators in any field of thearts or cultural heritage, and the ~~resolution~~ resolutions or ~~ordinance~~ ordinancescreating ~~such regional arts and cultural~~ the district shall soprovide. All members of the board of trustees also shall be qualified electors inthe district's territory. ~~The~~

The appointing authority shallconsider for appointment as members of the board of trustees, butneed not appoint, ~~such~~ persons ~~as are~~ nominated by area artscouncils, as defined in section 757.03 of the Revised Code,located within the district; provided that all ~~such~~ those persons shallmeet the qualifications specified in this section and the~~resolution~~ resolutions or ~~ordinance~~ ordinances creating the district. The ~~resolution~~ resolutions or~~ordinance~~ ordinances creating the district may, but need not, provide thatthe members of an area arts council located within the districtshall constitute the board of trustees of the district. ~~The~~

Theappointing authority ~~may~~, at any time, may remove a ~~trustee~~ member of the board of trustees formisfeasance, nonfeasance, or malfeasance in office.

The initially appointed members of the board of trustees of any regional arts and cultural district ~~createdunder section 3381.03 of the Revised Code~~ shall serve staggeredterms of one, two, and three years. Thereafter, each ~~trustee~~ membershall serve ~~terms~~ a term of three years, except that any personappointed to fill a vacancy shall be appointed to only theunexpired term. Any ~~appointed trustee~~ member is eligible forreappointment, except as otherwise provided in the ~~resolution~~ resolutions or~~ordinance~~ ordinances creating ~~such~~ the district, or any amendment ~~thereto~~ to them.

Sec. 3381.06. All the power and authority granted to a regional arts andcultural district ~~created under section 3381.03 or 3381.04 of the Revised Code~~shall be vested in and exercised by its board of trustees, which shall manageand conduct its affairs. The board ~~shall~~, within the limitations of thischapter, shall provide, by rules, the procedure for its actions, the manner ofselection of its president, vice-president, executive director, and otherofficers and employees, their titles, terms of office, compensation, duties,number, and qualifications, and any other lawful subject necessary ordesirable to the operation and administration of the district and the exerciseof the powers granted to it.

Sec. 3381.07. Upon the creation of a regional arts andcultural district ~~under section 3381.03 or 3381.04 of the RevisedCode~~ and upon the qualifying of its board of trustees and theelection of a president and a vice-president, the district shallexercise in its own name all the rights, powers, and dutiesvested in and conferred upon it by this chapter. A regional artsand cultural district:

(B) Maymake contracts in the exercise of the rights, powers, and dutiesconferred upon it;

(C) May adopt and alter a seal and use ~~such~~ that seal bycausing it to be impressed, affixed, reproduced, or otherwiseused, but failure to affix the seal shall not affect the validityof any instrument;

(D) May make, adopt, amend, and repeal bylaws for theadministration of its affairs and rules for the administrationand operation of any artistic or cultural facilities under itscontrol and for the exercise of all of its rights of ownership~~therein~~ in those facilities, provided, however, that it may not be directly involvedin any programatic activities;

(E) May make grants, on such terms and conditions as itmay deem advisable, to any arts or cultural organization withinits district as provided in section 3381.17 of the Revised Code;

(F) May fix, alter, and collect rentals and other chargesfor the use of any artistic or cultural facilities under itscontrol, to be determined exclusively by it for the purpose ofproviding for the payment of the expenses of the district, theacquisition, construction, equipping, improvement, extension,repair, maintenance, renovation, enlargement, administration, andoperation of artistic or cultural facilities under its control, andthe payment of principal and interest on its obligations, and ~~tofulfill~~ fulfilling the terms of any agreements made with the purchasers orholders of any such obligations, or with any person or politicalsubdivision;

(G) Shall have jurisdiction, control, possession, andsupervision over the use and disposition of all property, rights,licenses, moneys, contracts, accounts, liens, books, records, orother property rights and interests conveyed, delivered,transferred, or assigned to it;

(H) May acquire, construct, improve, extend, repair,remodel, renovate, furnish, equip, enlarge, lease, or maintainartistic or cultural facilities within its territory as itconsiders necessary to accomplish the purposes of this chapter,and make charges for the use of artistic or cultural facilities;

(I) May levy and collect taxes as provided in section3381.16 of the Revised Code;

(J) May issue bonds secured by its general credit asprovided in section 3381.08 of the Revised Code;

(K) May hold, encumber, control, acquire by donation,purchase, construct, own, lease as lessee or lessor, use, andsell real and personal property, or any interest or right~~therein~~ in real or personal property, within or without its territory;

(L) May employ or retain and fix the compensation of ~~such~~employees, ~~agent~~ agents, accountants, attorneys, and consultants oradvisors ~~as may be~~ necessary or desirable for the accomplishmentof its purposes;

(M) May procure insurance against loss to it by reason ofdamages to its properties resulting from fire, theft, accident,or other casualties or by reason of its liability for any damagesto persons or property;

(N) May maintain ~~such~~ funds as it determines necessary ordesirable for the efficient performance of its duties;

(O) May procure a policy or policies insuring members ofits board of trustees, and its officers, employees, and agents,against liability on account of damages or injury to persons andproperty resulting from any act or omission of such person in ~~his~~the person'sofficial capacity or resulting solely out of ~~his~~ the person'sservice to ~~such~~ thedistrict;

(P) May receive and expend gifts, grants, bequests, ordevices, or grants, including, but not limited to, grants ofpublic funds.

Sec. 3381.15. (A) The board of county commissioners of any county, thelegislative authority of any municipal corporation, and the board of townshiptrustees of any township, included within a regional arts and culturaldistrict may appropriate annually, from moneys to the credit of the generalfund of the county, the municipal corporation, or the township and nototherwise appropriated, that portion of the expense of the district to be paidby ~~such~~ the county, municipal corporation, or township as provided in theresolution creating or enlarging the district adopted under section 3381.03 ofthe Revised Code, or by any amendment ~~thereto~~ to the resolution.

(B) In addition to the authority granted to a board of county commissioners under division (A) of this section, a board of county commissioners in a county with a population of one million two hundred thousand or more may establish and provide local funding options for the support of arts and cultural organizations operating within the regional arts and cultural district in which the county is included.

Sec. 3383.02. (A) There is hereby created the Ohio culturalfacilities commission. The commission shall engage in and provide for the development,performance, and presentation or making available of culture andprofessional sports and athletics to the public in this state, andthe provision of training or education in culture, bytheexercise of its powers under this chapter, including theprovision, operation, management, and cooperative use of Ohio cultural facilities andOhio sports facilities. The commissionis abody corporate and politic, an agency ofstate government and aninstrumentality of the state, performingessential governmentalfunctions of this state. The carrying outof the purposes and theexercise by the commission of its powersconferred by this chapterare essential public functions andpublic purposes of the stateand of state government. The commissionmay, in its ownname, sueand be sued, enter into contracts, and perform all thepowers andduties given to it by this chapter; however, it does nothaveand shallnot exercise the power of eminent domain.

(B) The commission shall consist of~~ten~~ twelve members,~~seven~~ nine ofwhom shall be voting members and three of whom shall benonvotingmembers. The~~seven~~ ninevoting members shall beappointed by thegovernor, with the adviceand consent of thesenate, fromdifferent geographical regions ofthe state.Inaddition, one ofthe voting members shall represent the statearchitect. Not morethan~~four~~ fiveof the members appointedbythe governor shall beaffiliated withthe same political party.The nonvoting membersshall be thestaff director of the Ohio artscouncil, a member ofthe senateappointed by the president of thesenate, and a memberof thehouse of representatives appointed bythe speaker of thehouse.

(C) Of thefive initial appointments made by the governor,oneshall be for a term expiring December 31, 1989, two shall beforterms expiring December 31, 1990, and two shall be for termsexpiring December 31, 1991.Of the initial appointments of thesixth and seventhvoting members made by the governor, one shall be for a term expiringDecember 31, 2003, and one shall be for a term expiring December31, 2004. Of the initial appointments of the eighth and ninth voting members made by the governor, one shall be for a term expiring December 31, 2007, and one shall be for a term expiring December 31, 2008. These voting members shall be appointed within sixty days after the effective date of this amendment. Thereafter, each such term shall befor three years,commencing onthe first day of January andending on thethirty-first day ofDecember. Each appointment bythe presidentof the senate and bythe speaker of the house ofrepresentativesshall be for thebalance of the then legislativebiennium. Eachmember shall holdoffice from the date of themember's appointmentuntil the end ofthe term for which themember was appointed. Anymember appointedto fill a vacancy occurring priorto theexpiration of the termfor which the member's predecessor wasappointedshall hold officefor the remainder of such term. Anymembershall continue inoffice subsequent to the expiration dateofthe member's termuntil the member's successor takesoffice, oruntil a period ofsixtydays has elapsed, whichever occurs first.

(E)Organizational meetings of the commission shall be heldat thefirst meetingof each calendar year. At eachorganizationalmeeting, thecommission shall elect from among itsvoting membersachairperson, a vice-chairperson, and asecretary-treasurer, whoshall serve untilthe next annualmeeting. The commission shalladopt rulespursuant to section111.15 of the Revised Code for theconduct ofits internalbusiness and shall keep a journal of itsproceedings.

(F)~~Four~~ Five voting members of the commission constitute aquorum, and the affirmative vote of~~four~~ five members isnecessaryforapproval of any action taken by the commission. Avacancy inthemembership of the commission does not impair aquorum fromexercising all the rights and performing all theduties of thecommission. Meetings of the commission may be heldanywhere inthe state, and shall be held in compliance withsection 121.22 ofthe Revised Code.

(G) All expenses incurred in carrying out this chapter arepayable solely from money accrued under this chapter orappropriated for these purposes by the general assembly, and thecommission shall incur no liability or obligation beyond suchmoney.

(H) The commission shall file an annual report of itsactivities and finances with the governor, director of budget andmanagement, speaker of the house of representatives, president ofthe senate, and chairpersons of the house and senate financecommittees.

(I) There is hereby established in the state treasury theOhio cultural facilities commission administration fund.Allrevenues of the commission shall be credited to that fund andto anyaccounts created in ~~the~~ that fund with the commission'sapproval. Allexpenses of the commission, including reimbursementof, orpayment to, any other fund or any governmental agency foradvances made or services rendered to or on behalf of thecommission, shall be paid from ~~the Ohio cultural facilitiescommission administration~~ that fund as determined by or pursuant todirections of the commission. All investment earnings of ~~theadministration~~ that fund shall be credited to ~~the fund~~ it and shall beallocatedamong any accounts created in the fund in the mannerdetermined by thecommission.

(J) Title to all real property and lesser interests inrealproperty acquired by the commission, including leasehold and otherinterests, pursuantto this chapter shall be taken in the name ofthe state and shallbe held for the use and benefit of thecommission. Thecommission shall not mortgage such real propertyand interests inreal property. Title to other property andinterests in it acquired by thecommission pursuant to thischapter shall be taken in its name.

Sec. 3383.09. (A) There is hereby created in the statetreasury the cultural and sports facilities building fund, which shall consist ofproceeds of obligations authorized to pay costs of Ohio cultural facilities and Ohio sports facilities for which appropriations are made by the generalassembly. All investment earnings of the fund shall be credited tothe fund.

(B) The director of budget and management may transfer, tothe Ohio cultural facilities commission administrationfund, investment earnings credited, or the premium paid on any bonds issued on behalf of the commission and credited, to the cultural and sports facilities building fund that exceed theamounts required to meet estimated federal arbitrage rebaterequirements when requested of the director of budget andmanagement by the chairperson or executive director of thecommission.

Sec. 3501.141. (A) The board of elections of any countymay contract, purchase, or otherwise procure and pay all or anypart of the cost of group insurance policies that may providebenefits for hospitalization, surgical care, major medical care,disability, dental care, eye care, medical care, hearing aids, orprescription drugs, and that may provide sickness and accidentinsurance, or group life insurance, or a combination of any ofthe foregoing types of insurance or coverage for the full-timeemployees of such board and their immediate dependents, whetherissued by an insurance company or a health insuring corporation, dulyauthorized to do businessin this state. The authority granted under this division applies only when the board of county commissioners, by resolution, denies coverage described in this division to full-time employees of the board of elections.

(B) The board of elections of any county, with the approval of the board of county commissioners, may procure andpay all or any part of the cost of group hospitalization,surgical, major medical, or sickness and accident insurance or acombination of any of the foregoing types of insurance orcoverage for the members appointed to the board of electionsunder section 3501.06 of the Revised Code and their immediatedependents when each member's term begins, whether issued by aninsurance company or a health insuringcorporation, duly authorized to do business in this state.

Sec. 3501.17. (A) The expenses of the board of elections shallbe paid from the county treasury, in pursuance of appropriationsby the board of county commissioners, in the same manner as othercounty expenses are paid. If the board of county commissionersfails to appropriate an amount sufficient to provide for thenecessary and proper expenses of the board of elections pertaining to the conduct of elections, other than expenses for employee compensation and benefits incurred in the conduct of elections, ~~such~~the board of elections may apply to the court of common pleas within the county,which shall fix the amount necessary to be appropriated and ~~such~~the amount shall be appropriated. Payments shall be made uponvouchers of the board of elections certified to by itschairperson or acting chairperson and thedirector or deputy director, upon warrants of the county auditor. ~~The~~

The boardof elections shall notincur any obligation involving the expenditure of money unlessthere are moneys sufficient in the funds appropriated therefor tomeet ~~such obligations~~ the obligation as required in division (D) of section 5705.41 of the Revised Code. ~~Such~~ If the board of elections requests a transfer of funds from one of its appropriation items to another, the board of county commissioners shall adopt a resolution providing for the transfer except as otherwise provided in section 5705.40 of the Revised Code. The expenses of the board of elections shall be apportioned amongthe county and the various subdivisions as provided in thissection, and the amount chargeable to each subdivision shall bewithheld by the auditor from the moneys payable thereto at thetime of the next tax settlement. At the time of submittingbudget estimates in each year, the board of elections shallsubmit to the taxing authority of each subdivision, upon therequest of the subdivision, an estimate of the amount to bewithheld ~~therefrom~~ from the subdivision during the next fiscal year.

(B) Except as otherwise provided in division(F) of this section, the entire compensation of the members ofthe board of elections and of the director, deputy director, and otheremployees in the board's offices; the expenditures for therental, furnishing, and equipping of the office of the board andfor the necessary office supplies for the use of the board; theexpenditures for the acquisition, repair, care, and custody ofthe polling places, booths, guardrails, and other equipment forpolling places; the cost of pollbooks, tally sheets, maps, flags,ballot boxes, and all other permanent records and equipment; thecost of all elections held in and for the state and county; andall other expenses of the board which are not chargeable to apolitical subdivision in accordance with this section shall bepaid in the same manner as other county expenses are paid.

(C) The compensation of judges and clerks of elections; thecost of renting, moving, heating, and lighting polling places andof placing and removing ballot boxes and other fixtures andequipment thereof; the cost of printing and delivering ballots,cards of instructions, and other election supplies; and all otherexpenses of conducting primaries and elections in theodd-numbered years shall be charged to the subdivisions in andfor which such primaries or elections are held. The charge foreach primary or general election in odd-numbered years for eachsubdivision shall be determined in the following manner: first,the total cost of all chargeable items used in conducting suchelections shall be ascertained; second, the total charge shall bedivided by the number of precincts participating in suchelection, in order to fix the cost per precinct; third, the costper precinct shall be prorated by the board of elections to thesubdivisions conducting elections for the nomination or electionof offices in such precinct; fourth, the total cost for eachsubdivision shall be determined by adding the charges prorated toit in each precinct within the subdivision.

(D) The entire cost of special elections held on a day otherthan the day of a primary or general election, both inodd-numbered or in even-numbered years, shall be charged to thesubdivision. Where a special election is held on the same day asa primary or general election in an even-numbered year, thesubdivision submitting the special election shall be charged onlyfor the cost of ballots and advertising. Where a specialelection is held on the same day as a primary or general electionin an odd-numbered year, the subdivision submitting the specialelection shall be charged for the cost of ballots and advertisingfor such special election, in addition to the charges prorated tosuch subdivision for the election or nomination of candidates ineach precinct within the subdivision, as set forth in thepreceding paragraph.

(E) Where a special election is held on the day specified bydivision (E) of section 3501.01 of the Revised Code for theholding of a primary election, for the purpose of submitting tothe voters of the state constitutional amendments proposed by thegeneral assembly, and a subdivision conducts a special electionon the same day, the entire cost of the special election shall bedivided proportionally between the state and the subdivisionbased upon a ratio determined by the number of issues placed onthe ballot by each, except as otherwise provided in division(G) of this section. Such proportional division of cost shall bemade only to the extent funds are available for such purpose fromamounts appropriated by the general assembly to the secretary ofstate. If a primary election is also being conducted in thesubdivision, the costs shall be apportioned as otherwise providedin this section.

(F) When a precinct is open during a general, primary, or specialelection solely for the purpose of submitting to the voters a statewide ballotissue, the state shall bear the entire cost of the election in that precinctand shall reimburse the county for all expenses incurred in opening theprecinct.

(G) The state shall bear the entire cost of advertising innewspapers statewide ballot issues, explanations of those issues, andarguments for or against those issues, as required by Section1g of Article II and Section 1 ofArticle XVI, OhioConstitution, and any other section of law and shall reimburse thecounties for all expenses they incur for such advertising.

(H) The cost of renting, heating, and lighting registrationplaces; the cost of the necessary books, forms, and supplies forthe conduct of registration; and the cost of printing and postingprecinct registration lists shall be charged to the subdivisionin which such registration is held.

(I) As used in this section, "statewide ballot issue" means anyballot issue, whether proposed by the general assembly or by initiative orreferendum, that is submitted to the voters throughout the state.

Sec. 3513.04. Candidates for party nominations to state,district, county, and municipal offices or positions, for whichparty nominations are provided by law, and for election asmembersof party controlling committees shall have their namesprinted onthe official primary ballot by filing a declaration ofcandidacyand paying the fees specified for theoffice under divisions (A)and (B) of section 3513.10of the Revised Code, except that thejoint candidates for party nomination to the offices of governorand lieutenant governor shall, for the two of them, file onedeclaration of candidacy. The jointcandidates also shall pay thefees specified for the joint candidates underdivisions (A) and(B) of section 3513.10 of the Revised Code.

The secretary of state shall not accept for filing thedeclaration of candidacy of a candidate for party nomination tothe office of governor unless the declaration of candidacy alsoshows a joint candidate for the same party's nomination to theoffice of lieutenant governor, shall not accept for filing thedeclaration of candidacy of a candidate for party nomination tothe office of lieutenant governor unless the declaration ofcandidacy also shows a joint candidate for the same party'snomination to the office of governor, and shall not accept forfiling a declaration of candidacy that shows a candidate forpartynomination to the office of governor or lieutenant governorwho,for the same election,has alreadyfiled adeclaration ofcandidacyor adeclaration of intent to be awrite-in candidate, or has become a candidate by the filling of avacancy under section3513.30 of the Revised Code for any otherstate office or any federal or county office.

No person who seeks party nomination for an office orposition at a primary election by declaration of candidacy or bydeclaration of intent to be a write-in candidateand no person whois a first choice for president of candidates seekingelection asdelegates and alternates to the national conventions of thedifferent major political parties who are chosen by direct vote oftheelectors as provided in this chapter shall be permitted tobecome a candidateby nominating petition or by declaration ofintent to be a write-incandidate at the following generalelection for any officeother than the office of member ofthestate board of education, office of member of a city, local, orexemptedvillage board of education, office of member of agoverning board of aneducational service center, or office oftownship trustee.

Sec. 3513.041. A write-in space shall be provided on theballot for every office, except in anelection for which the boardof elections has received no validdeclarations of intent to be awrite-in candidate under thissection. Write-in votes shall notbe countedfor any candidate who has not filed a declaration ofintent to bea write-in candidate pursuant to this section. Aqualifiedperson who has filed a declaration of intent may receivewrite-invotes at either a primary or general election. Anycandidate~~,except one whose candidacy is to be submitted toelectorsthroughout the entire state,~~ shall file a declaration ofintentto be a write-in candidate before four p.m. of thefiftieth daypreceding the election at which such candidacy is to beconsidered. If the election is to be determined by electors of acounty or a district or subdivision within the county, suchdeclaration shall be filed with the board of elections of thatcounty. If the election is to be determined by electors of asubdivision located in more than one county, such declarationshall be filed with the board of elections of the county in whichthe major portion of the population of such subdivision islocated. If the election is to be determined by electors of adistrict comprised of more than one county but less than all ofthe counties of the state, such declaration shall be filed withthe board of elections of the most populous county in suchdistrict. Any candidate for an office to be voted upon byelectors throughout the entire state shall file a declaration ofintent to be a write-in candidate with the secretary of statebefore four p.m. of the fiftieth day precedingthe election atwhich such candidacy is to be considered. In addition,candidatesfor president and vice-president of the United Statesshall alsofile with the secretary of state by saidfiftieth daya slate ofpresidential electors sufficient in number to satisfytherequirements of the United States constitution.

A board of elections shall not accept for filing thedeclaration of intent to be a write-in candidate of a personseeking to become a candidate ifthatperson, for the sameelection, has already filed a declaration ofcandidacy,adeclaration of intent to be a write-in candidate,or anominatingpetition, or has become a candidate through party nomination at aprimary election orbythe filling of a vacancy under section3513.30 or 3513.31 oftheRevised Code, for any federal, state, or countyoffice, if the declaration of intent to be a write-in candidate isfor a state or county office, or for any municipal or townshipoffice, for member of a city, local, or exempted village boardofeducation, or for member of a governing board of an educationalservice center, if the declaration of intent to be a write-incandidate is for a municipal or township office, or for member ofacity, local, or exempted village board of education, or formember of agoverning board of an educational service center.

No person shall file a declaration of intent to be awrite-incandidate for the office of governor unless thedeclaration alsoshows the intent of another person to be awrite-in candidate forthe office of lieutenant governor. Noperson shall file adeclaration of intent to be a write-incandidate for the office oflieutenant governor unless thedeclaration also shows the intentof another person to be awrite-in candidate for the office ofgovernor. No person shallfile a declaration of intent to be awrite-in candidate for theoffice of governor or lieutenantgovernor if the person haspreviouslyfiled a declaration ofintent to be a write-in candidate to theoffice of governor orlieutenant governor at the same primary orgeneral election. Awrite-in vote for the two candidates whofile such a declarationshall be counted as a vote for them asjoint candidates for theoffices of governor and lieutenantgovernor.

The secretary of state shall not accept for filing thedeclaration of intent to be a write-in candidate of a person forthe office of governor unless the declaration also shows theintent of another person to be a write-in candidate for theofficeof lieutenant governor, shall not accept for filing thedeclaration of intent to be a write-in candidate of a person forthe office of lieutenant governor unless the declaration alsoshows the intent of another person to be a write-in candidate forthe office of governor, and shall not accept for filing thedeclaration of intent to be a write-in candidate of a person tothe office of governor or lieutenant governor if that person, forthe same election, hasalreadyfiled a declarationof candidacy, adeclaration of intentto be a write-incandidate, or a nominating petition,or has become acandidate throughparty nomination at a primary election or by thefilling of avacancy under section 3513.30 or 3513.31 of theRevised Code, forany other state office or any federal or county office.

Protests against the candidacy of any person filing adeclaration of intent to be a write-in candidate may be filed byany qualified elector who is eligible to vote in the election atwhich the candidacy is to be considered. The protest shall beinwriting and shall be filed not later than fourp.m. of theforty-fifth day before the dayof the election. The protest shallbe filed with theboard of elections with which the declaration ofintent to be a write-incandidate wasfiled. Upon the filing ofthe protest, the boardwith which it is filed shall promptly fixthe time for hearing itand shall proceed in regard to the hearingin the same manner asfor hearings set for protests filed undersection 3513.05 of theRevised Code. At the time fixed, theboardshall hear the protest and determine the validity orinvalidity ofthe declaration of intent to be a write-incandidate. If theboard finds that the candidate is not an elector ofthe state,district, county, or political subdivision in which the candidateseeks election to office or has not fully complied with therequirements of Title XXXV of the RevisedCode in regard to thecandidate's candidacy, the candidate'sdeclaration ofintent to bea write-in candidate shall be determined to beinvalid and shallbe rejected; otherwise, it shall be determinedto be valid. Thedetermination of the board isfinal.

The secretary of state shall prescribe the form of thedeclaration of intent to be a write-in candidate.

Sec. 3513.05. Each person desiring to become a candidatefora party nomination or for election to an office or positionto bevoted for at a primary election, except persons desiring tobecomejoint candidates for the offices of governor andlieutenantgovernor and except as otherwise provided in section 3513.051ofthe Revised Code, shall, not later than fourp.m. of theseventy-fifth day before the day of the primary election, or ifthe primary election is a presidential primary election, notlaterthan four p.m. of the sixtieth day before the day of thepresidential primary election, file a declaration of candidacyandpetition and pay the fees required under divisions(A) and (B) ofsection 3513.10 of theRevised Code. The declaration of candidacyand all separatepetition papers shall be filed at the same timeas oneinstrument. When the offices are to be voted for at aprimaryelection, persons desiring to become joint candidates fortheoffices of governor and lieutenant governor shall, not laterthanfour p.m. of the seventy-fifth day before the day of theprimaryelection, comply with section 3513.04 of the Revised Code.Theprospective joint candidates' declaration of candidacy and allseparate petition papers of candidacies shall be filed at thesametime as one instrument.The secretary of state or a board ofelections shall not accept for filing a declaration of candidacyand petition of a person seeking to become a candidate if thatperson, for the same election, has already filed a declaration ofcandidacy or a declaration of intent to be a write-in candidate,or has become a candidate by the filling of a vacancy undersection 3513.30 of the Revised Code for any federal, state, or countyoffice, if the declaration of candidacy is for a state or countyoffice, or for any municipal or township office, if thedeclaration of candidacy is for a municipal or township office.

If the declaration of candidacy declares a candidacy whichisto be submitted to electors throughout the entire state, thepetition, including a petition for joint candidates for theoffices of governor and lieutenant governor, shall be signed byatleast one thousand qualified electors who are members of thesamepolitical party as the candidate or joint candidates, and thedeclaration of candidacy and petition shall be filed with thesecretary of state; provided that the secretary of state shallnotaccept or file any such petition appearing on its face tocontainsignatures of more than three thousand electors.

Except as otherwise provided in this paragraph, if thedeclaration of candidacy is of one that is to be submitted onlytoelectors within a district, political subdivision, or portionthereof, the petition shall be signed by not less than fiftyqualified electors who are members of the same political party asthe political party of which the candidate is a member. If thedeclaration of candidacy is for party nomination as a candidatefor member of the legislative authority of a municipalcorporationelected by ward, the petition shall be signed by notless thantwenty-five qualified electors who are members of thepoliticalparty of which the candidate is a member.

No such petition, except the petition for a candidacy thatisto be submitted to electors throughout the entire state, shallbeaccepted for filing if it appears to contain on its facesignatures of more than three times the minimum number ofsignatures. When a petition of a candidate has been accepted forfiling by a board of elections, the petition shall not be deemedinvalid if, upon verification of signatures contained in thepetition, the board of elections finds the number of signaturesaccepted exceeds three times the minimum number of signaturesrequired. A board of elections may discontinue verifyingsignatures on petitions when the number of verified signaturesequals the minimum required number of qualified signatures.

If the declaration of candidacy declares a candidacy forparty nomination or for election as a candidate of anintermediateor minor party, the minimum number of signatures onsuch petitionis one-half the minimum number provided in thissection, exceptthat, when the candidacy is one for election as amember of thestate central committee or the county centralcommittee of apolitical party, the minimum number shall be thesame for anintermediate or minor party as for a major party.

If a declaration of candidacy is one for election as amemberof the state central committee or the county centralcommittee ofa political party, the petition shall be signed byfive qualifiedelectors of the district, county, ward, township,or precinctwithin which electors may vote for such candidate.The electorssigning such petition shall be members of the samepolitical partyas the political party of which the candidate isa member.

For purposes of signing or circulating a petition ofcandidacy for party nomination or election, an elector isconsidered to be a member of a political party if the electorvotedinthat party's primary election within the preceding twocalendaryears, or if the elector did not vote in any otherparty's primaryelection within the preceding two calendar years.

If the declaration of candidacy is of one that is to besubmitted only to electors within a county, or within a districtor subdivision or part thereof smaller than a county, thepetitionshall be filed with the board of elections of thecounty. If thedeclaration of candidacy is of one that is to besubmitted only toelectors of a district or subdivision or partthereof that issituated in more than one county, the petitionshall be filed withthe board of elections of the county withinwhich the majorportion of the population thereof, as ascertainedby the nextpreceding federal census, is located.

A petition shall consist of separate petition papers, eachofwhich shall contain signatures of electors of only one county.Petitions or separate petition papers containing signatures ofelectors of more than one county shall not thereby be declaredinvalid. In case petitions or separate petition paperscontainingsignatures of electors of more than one county arefiled, theboard shall determine the county from which themajority ofsignatures came, and only signatures from such countyshall becounted. Signatures from any other county shall beinvalid.

Each separate petition paper shall be circulated by oneperson only, who shall be the candidate or a joint candidate or amember of the same political party as the candidate or joint candidates, and eachseparate petition paper shall be governed by the rules set forthin section 3501.38 of the Revised Code.

The secretary of state shall promptly transmit to eachboardsuch separate petition papers of each petition accompanyingadeclaration of candidacy filed with the secretary of stateaspurport to containsignatures of electors of the county of suchboard. The board ofthe most populous county of a district shallpromptly transmit toeach board within such district such separatepetition papers ofeach petition accompanying a declaration ofcandidacy filed withit as purport to contain signatures ofelectors of the county ofeach such board. The board of a countywithin which the majorportion of the population of a subdivision,situated in more thanone county, is located, shall promptlytransmit to the board ofeach other county within which a portionof such subdivision islocated such separate petition papers ofeach petitionaccompanying a declaration of candidacy filed withit as purportto contain signatures of electors of the portion ofsuchsubdivision in the county of each such board.

All petition papers so transmitted to a board and allpetitions accompanying declarations of candidacy filed with ~~such~~ aboard shall, under proper regulations, be open to publicinspection until four p.m. of the seventieth day before the dayofthe next primary election, or if that next primary election isapresidential primary election, the fifty-fifth day before thatpresidential primary election. Each board shall, not later thanthe sixty-eighth day before the day of ~~such~~ that primary election, orif the primary election is a presidential primary election, notlater than the fifty-third day before such presidential primaryelection, examine and determine the validity or invalidity of thesignatures on the petition papers so transmitted to or filed withit and shall return to the secretary of state all petition paperstransmitted to it by the secretary of state, together with itscertification of its determination as to the validity orinvalidity of signatures thereon, and shall return to each otherboard all petition papers transmitted to it by such board,together with its certification of its determination as to thevalidity or invalidity of the signatures thereon. All othermatters affecting the validity or invalidity of such petitionpapers shall be determined by the secretary of state or the boardwith whom such petition papers were filed.

Protests against the candidacy of any person filing adeclaration of candidacy for party nomination or for election toan office or position, as provided in this section, may be filedby any qualified elector who is a member of the same politicalparty as the candidate and who is eligible to vote at the primaryelection for the candidate whose declaration of candidacy theelectorobjects to, or by the controlling committee of ~~such~~ that political party.~~Such~~ Theprotest ~~must~~ shall be in writing, and ~~must~~ shall be filed not later thanfourp.m. of the sixty-fourth day before the day of the primaryelection, or if the primary election is a presidential primaryelection, not later than four p.m. of the forty-ninth day beforethe day of the presidential primary election. ~~Such~~ The protest shallbe filed with the election officials with whom the declaration ofcandidacy and petition was filed. Upon the filing of ~~such~~ theprotest, the election officials with whom it is filed shallpromptly fix the time for hearing it, and shall forthwith mailnotice of the filing of ~~such~~ the protest and the time fixed forhearing to the person whose candidacy is so protested. Theyshallalso forthwith mail notice of the time fixed for suchhearing tothe person who filed the protest. At the time fixed,suchelection officials shall hear the protest and determine thevalidity or invalidity of the declaration of candidacy andpetition. If they find that such candidate is not an elector ofthe state, district, county, or political subdivision in whichthecandidate seeks a party nomination or election to an office orposition,orhas not fully complied with this chapter, thecandidate'sdeclaration ofcandidacy and petition shall bedetermined to be invalid andshall be rejected,; otherwise, it shallbe determined to be valid. ~~Such~~ That determination shall be final.

A protest against the candidacy of any persons filing adeclaration of candidacy for joint party nomination to theofficesof governor and lieutenant governor shall be filed,heard, anddetermined in the same manner as a protest against thecandidacyof any person filing a declaration of candidacy singly.

The secretary of state shall, on the sixtieth day beforetheday of a primary election, or if the primary election is apresidential primary election, on the forty-fifth day before theday of the presidential primary election, certify to each boardinthe state the forms of the official ballots to be used at ~~such~~ theprimary election, together with the names of the candidates to beprinted ~~thereon~~ on the ballots whose nomination or election is to be determinedby electors throughout the entire state and who filed validdeclarations of candidacy and petitions.

The board of the most populous county in a districtcomprisedof more than one county but less than all of thecounties of thestate shall, on the sixtieth day before the day ofa primaryelection, or if the primary election is a presidentialprimaryelection, on the forty-fifth day before the day of apresidentialprimary election, certify to the board of eachcounty in thedistrict the names of the candidates to be printedon the officialballots to be used at ~~such~~ the primary election,whose nomination orelection is to be determined only by electorswithin ~~such~~ the districtand who filed valid declarations ofcandidacy and petitions.

The board of a county within which the major portion of thepopulation of a subdivision smaller than the county and situatedin more than one county is located shall, on the sixtieth daybefore the day of a primary election, or if the primary electionis a presidential primary election, on the forty-fifth day beforethe day of a presidential primary election, certify to the boardof each county in which a portion of ~~such~~ that subdivision is locatedthe names of the candidates to be printed on the official ballotsto be used at ~~such~~ the primary election, whose nomination or electionis to be determined only by electors within ~~such~~ that subdivision andwho filed valid declarations of candidacy and petitions.

Sec. 3513.052. (A) No person shall seek nomination orelection to any of the following offices or positions at the sameelection by filing a declaration of candidacy and petition, adeclaration of intent to be a write-in candidate, or a nominatingpetition, or by becoming a candidate through party nomination in aprimary election, or by the filling of a vacancy under section3513.30 or 3513.31 of the Revised Code:

(5) Any combination of two or more municipal or townshipoffices, positionsas a member of a city, local, or exemptedvillage board ofeducation, or positions as a member of agoverning board of aneducational service center.

(B) The secretary of state or a board of elections shallnotaccept for filing a declaration of candidacy and petition, adeclaration of intent to be a write-in candidate, or a nominatingpetition of a person seeking to become a candidate if that person,for the same election,has already filed adeclaration ofcandidacy, a declaration of intent to be awrite-in candidate, ora nominating petition, or has become a candidate through partynomination at aprimary election or by the filling of a vacancyunder section3513.30 or 3513.31 of the Revised Code for:

(1) Any federal, state, or county office, if the declaration ofcandidacy, declaration of intent to be a write-in candidate, ornominating petition is for a state or county office;

(2) Any municipal or township office, or for member of acity,local, or exempted village board of education, or for memberof agoverning board of an educational service center, if thedeclaration of candidacy, declaration of intent to be a write-incandidate, or nominating petition is for a municipal or townshipoffice, or for member of a city, local, or exempted village boardof education, or for member of a governing board of aneducationalservice center.

(C)(1) If the secretary of state determines, before the dayof the primary election, that a person is seeking nomination tomore than one office at that election in violation of division (A)of this section, the secretary of state shall do one of thefollowing:

(a) If each office or the district for each office for whichthe person is seeking nomination is wholly within a singlecounty and none of those offices is a federal office,the secretary of state shall notify the board of electionsof thatcounty. The board then shall determine thedate on which theperson first sought to become a candidate foreach of thoseoffices by filing a declaration of candidacy or adeclaration ofintent to be a write-in candidate or by the fillingof a vacancyunder section 3513.30 of the Revised Code. The boardshall votepromptly to disqualify that person as a candidate for each officeforwhich the person sought to become a candidate after the dateonwhich the person first sought to become a candidate for any ofthose offices. If the board determines that the person sought tobecome a candidate for more than one of those offices on the samedate, the board shall vote promptly to disqualify that person as acandidate foreach office that would be listed on the ballot belowthe highest office for which that person seeks nomination,according to the ballot order prescribed under section 3505.03 ofthe Revised Code.

(b) If one or more of the offices for which the person isseeking nomination is a state office or an office with a districtlarger than a single county and none of the offices for which the person is seeking nomination is a federal office, the secretary of state shalldetermine the date on which the person first sought to become acandidate for each of those offices by filing a declaration ofcandidacy or a declaration of intent to be a write-in candidate orby the filling of a vacancy under section 3513.30 of the RevisedCode. The secretary of state shall order the board of electionsof each county in which the person is seeking to appear ontheballot to disqualify that person as a candidate for eachofficefor which the person sought to become a candidate after thedateon which the person first sought to become a candidate forany ofthose offices. If the secretary of state determines thattheperson sought to become a candidate for more than one of thoseoffices on the same date, the secretary of state shall order theboard of elections of each county in which the person is seekingto appear on the ballot to disqualify that person as acandidatefor each office that would be listed on the ballot below thehighest office for which that person seeks nomination, accordingto the ballot order prescribed under section 3505.03 of theRevised Code. Eachboard of elections so notified shall votepromptly to disqualifythe person as a candidate in accordancewith the order of thesecretary of state.

(c) If each office or the district for each office for which the person is seeking nomination is wholly within a single county and any of those offices is a federal office, the secretary of state shall notify the board of elections of that county. The board then shall vote promptly to disqualify that person as a candidate for each office that is not a federal office.

(d) If one or more of the offices for which the person is seeking nomination is a state office and any of the offices for which the person is seeking nomination is a federal office, the secretary of state shall order the board of elections of each county in which the person is seeking to appear on the ballot to disqualify that person as a candidate for each office that is not a federal office. Each board of elections so notified shall vote promptly to disqualify the person as a candidate in accordance with the order of the secretary of state.

(2) If a board of elections determines, before the day of theprimary election, that a person is seeking nomination to more thanone office at that election in violation of division (A) of thissection, the board shall do one of the following:

(a) If each office or the district for each office for whichthe person is seeking nomination is wholly within thatcounty and none of those offices is a federal office,the board shall determine the date on whichthe person firstsought to become a candidate for each of thoseoffices by filing adeclaration of candidacy or a declaration ofintent to be awrite-in candidate or by the filling of a vacancyunder section3513.30 of the Revised Code. The board shallvote promptly todisqualify that person as a candidate for each office for whichthe person sought to become a candidate after the date on whichthe person first sought to become a candidate for any of thoseoffices. If the board determines that the person sought to becomea candidate for more than one of those offices on the same date,the board shall vote promptly to disqualify that person as acandidate for each office that would be listed on the ballot belowthe highest office for which that person seeks nomination,according to the ballot order prescribed under section 3505.03 ofthe Revised Code.

(b) If one or more of the offices for which the person isseeking nomination is a state office or an office with a districtlarger than a single county and none of the offices for which the person is seeking nomination is a federal office, the board shall notifythe secretaryof state. The secretary of state then shalldetermine the date onwhich the person first sought to become acandidate for each ofthose offices by filing a declaration ofcandidacy or adeclaration of intent to be a write-in candidate orby the fillingof a vacancy under section 3513.30 of the RevisedCode. Thesecretary of state shall order the board of electionsof eachcounty in which the person is seeking to appear onthe ballot todisqualify that person as a candidate for eachoffice for whichthe person sought to become a candidate after thedate on whichthe person first sought to become a candidate forany of thoseoffices. If the secretary of state determines thatthe personsought to become a candidate for more than one of thoseoffices onthe same date, the secretary of state shall order theboard ofelections of each county in which the person is seeking to appearon the ballot to disqualify that person as acandidate for eachoffice that would be listed on the ballot below the highest officefor which that person seeks nomination, according to the ballotorder prescribed under section 3505.03 of the Revised Code. Eachboard of elections so notified shall vote promptly to disqualifythe person as a candidate in accordance with the order of thesecretary of state.

(c) If each office or the district for each office for which the person is seeking nomination is wholly within a single county and any of those offices is a federal office, the board shall vote promptly to disqualify that person as a candidate for each office that is not a federal office.

(d) If one or more of the offices for which the person is seeking nomination is a state office and any of the offices for which the person is seeking nomination is a federal office, the board shall notify the secretary of state. The secretary of state then shall order the board of elections of each county in which the person is seeking to appear on the ballot to disqualify that person as a candidate for each office that is not a federal office. Each board of elections so notified shall vote promptly to disqualify the person as a candidate in accordance with the order of the secretary of state.

(D)(1) If the secretary of state determines, after the day ofthe primary election and before the day of the general election,that a person is seeking election to more than one office at thatelection in violation of division (A) of this section, thesecretary of state shall do one of the following:

(a) If each office or the district for each office for whichthe person is seeking election is wholly within a singlecounty and none of those offices is a federal office,the secretary of state shall notify the board of electionsof thatcounty. The board then shall determine theoffices for which theperson seeks to appear as a candidate on the ballot.Theboardshall vote promptly to disqualify that person as a candidate foreachofficethat would be listed on the ballot below the highestofficeforwhich that person seeks election, according to theballotorderprescribed under section 3505.03 of the Revised Code.If the person sought nomination at a primary election and has notyet been issued a certificate of nomination, the board shall notissue that certificate for that person for any office that wouldbe listed on the ballot below the highest office for which thatperson seeks election, according to the ballot order prescribedunder section 3505.03 of the Revised Code.

(b) If one or more of the offices for which the person isseeking election is a state office or an office with a districtlarger than a single county and none of the offices for which the person is seeking election is a federal office, the secretary of state shall promptlyinvestigate and determine the offices for which the person seeksto appear as a candidate on the ballot. The secretary of stateshall orderthe board of elections of each county in which theperson is seeking to appear on the ballot to disqualify thatperson as acandidate for each office that would be listed on theballot belowthe highest office for which that person seekselection, accordingto the ballot order prescribed under section3505.03 of theRevised Code. Each board of elections so notifiedshall votepromptly to disqualify the person as a candidate inaccordancewith the order of the secretary of state. If the personsought nomination at a primary election and has not yet beenissued a certificate of nomination, the board shall not issue thatcertificate for that person for any office that would be listed onthe ballot below the highest office for which that person seekselection, according to the ballot order prescribed under section3505.03 of the Revised Code.

(c) If each office or the district for each office for which the person is seeking election is wholly within a single county and any of those offices is a federal office, the secretary of state shall notify the board of elections of that county. The board then shall vote promptly to disqualify that person as a candidate for each office that is not a federal office. If the person sought nomination at a primary election and has not yet been issued a certificate of nomination, the board shall not issue that certificate for that person for any office that is not a federal office.

(d) If one or more of the offices for which the person is seeking election is a state office and any of the offices for which the person is seeking election is a federal office, the secretary of state shall order the board of elections of each county in which the person is seeking to appear on the ballot to disqualify that person as a candidate for each office that is not a federal office. Each board of elections so notified shall vote promptly to disqualify the person as a candidate in accordance with the order of the secretary of state. If the person sought nomination at a primary election and has not yet been issued a certificate of nomination, the board shall not issue that certificate for that person for any office that is not a federal office.

(2) If a board of elections determines, after the day of theprimary election and before the day of the general election, thata person is seeking election to more than one office at thatelection in violation of division (A) of this section, the boardof elections shall do one of the following:

(a) If each office or the district for each office for whichthe person is seeking election is wholly within thatcounty and none of those offices is a federal office, theboard shall determine the offices forwhich the person seeks toappear as a candidate on the ballot. The boardshall votepromptly to disqualify that person as a candidate for each officethatwould be listed on the ballot below the highest office forwhichthat person seeks election, according to the ballot orderprescribed under section 3505.03 of the Revised Code. If theperson sought nomination at a primary election and has not yetbeen issued a certificate of nomination, the board shall not issuethat certificate for that person for any office that would belisted on the ballot below the highest office for which thatperson seeks election, according to the ballot order prescribedunder section 3505.03 of the Revised Code.

(b) If one or more of the offices for which the person isseeking election is a state office or an office with a districtlarger than a single county and none of the offices for which the person is seeking election is a federal office, the board shall notifythe secretaryof state. The secretary of state promptly shallinvestigate anddetermine the offices for which the person seeks to appear as acandidate on the ballot. The secretary of state shall ordertheboard of elections of each county in which the person is seekingto appear on the ballot to disqualify that person as acandidatefor each office that would be listed on the ballot belowthehighest office for which that person seeks election,according tothe ballot order prescribed under section 3505.03 ofthe RevisedCode. Each board of elections so notified shall votepromptly todisqualify the person as a candidate in accordancewith the orderof the secretary of state. If the person sought nomination at aprimary election and has not yet been issued a certificate ofnomination, the board shall not issue that certificate for thatperson for any office that would be listed on the ballot below thehighest office for which that person seeks election, according tothe ballot order prescribed under section 3505.03 of the RevisedCode.

(c) If each office or the district for each office for which the person is seeking election is wholly within that county and any of those offices is a federal office, the board shall vote promptly to disqualify that person as a candidate for each office that is not a federal office. If the person sought nomination at a primary election and has not yet been issued a certificate of nomination, the board shall not issue that certificate for that person for any office that is not a federal office.

(d) If one or more of the offices for which the person is seeking election is a state office and any of the offices for which the person is seeking election is a federal office, the board shall notify the secretary of state. The secretary of state shall order the board of elections of each county in which the person is seeking to appear on the ballot to disqualify that person as a candidate for each office that is not a federal office. Each board of elections so notified shall vote promptly to disqualify the person as a candidate in accordance with the order of the secretary of state. If the person sought nomination at a primary election and has not yet been issued a certificate of nomination, the board shall not issue that certificate for that person for any office that is not a federal office.

(E) When a person is disqualified as a candidate underdivision (C) or (D) of this section, that person's name shall notappear on the ballots for any office for which that person hasbeen disqualified as a candidate. If the ballots have alreadybeen prepared, the board of elections shallremove the name of thedisqualified candidate from the ballots tothe extent practicablein the time remaining before the electionand according to thedirections of the secretary of state. If thename is not removedfrom the ballots before the day of theelection, the votes for thedisqualified candidate are void andshall not be counted.

(F) Any vacancy created by the disqualification of a personas a candidate under division (C) or (D) of this section may befilled in the manner provided for in sections 3513.30 and 3513.31of the Revised Code.

(G) Nothing in this section or section 3513.04, 3513.041,3513.05, 3513.251, 3513.253, 3513.254, 3513.255, 3513.257,3513.259, or 3513.261 of the Revised Code prohibits, and thesecretary of state or a board ofelections shall not disqualify, aperson from being a candidatefor an office, if that person timelywithdraws as a candidatefor any offices specified in division (A)of this section for which that personfirst sought to become acandidate by filing a declaration of candidacy and petition, adeclaration of intent to be a write-in candidate, or a nominatingpetition, by party nomination in a primary election, or by thefilling of a vacancy under section 3513.30 or 3513.31 of theRevised Code.

(1) "State office" means the offices of governor, lieutenantgovernor, secretary of state, auditor of state, treasurer ofstate, attorney general, member of the state board of education,member of the general assembly, chief justice of the supremecourt, and justice of the supreme court.

(a) Withdrawing as a candidate before the applicable deadlinefor filing a declaration of candidacy, declaration of intent to bea write-in candidate, or nominating petition for the subsequentoffice for which the person is seeking to become a candidate at the same election;

(b) Withdrawing as a candidate before the applicable deadlinefor the filling of a vacancy under section 3513.30 or 3513.31 ofthe Revised Code, if the person is seeking to become a candidatefor a subsequent office at the same election under either of those sections.

Sec. 3513.257. Each person desiring to become anindependentcandidate for an office for which candidates may benominated at aprimary election, except persons desiring tobecome independentjoint candidates for the offices of governorand lieutenantgovernor and for the offices of president andvice-president ofthe United States, shall file no later thanfour p.m. of the daybefore the day of the primary electionimmediately preceding thegeneral election at which suchcandidacy is to be voted for by thevoters, a statement ofcandidacy and nominating petition asprovided in section 3513.261of the Revised Code. Personsdesiring to become independentjoint candidates for the offices ofgovernor and lieutenantgovernor shall file, not later than fourp.m. of the day beforethe day of the primary election, onestatement of candidacy andone nominating petition for the two ofthem. Persons desiring tobecome independent joint candidates forthe offices of presidentand vice-president of the United Statesshall file, not laterthan four p.m. of the seventy-fifth daybefore the day of thegeneral election at which the president andvice-president are tobe elected, one statement of candidacy andone nominatingpetition for the two of them. The prospectiveindependent jointcandidates' statement of candidacy shall befiled with thenominating petition as one instrument.

The statement of candidacy and separate petition papers ofeach candidate or pair of joint candidates shall be filed at thesame time as one instrument.

The nominating petition shall contain signatures ofqualifiedelectors of the district, political subdivision, orportion of apolitical subdivision in which the candidacy is tobe voted on inan amount to be determined as follows:

(A) If the candidacy is to be voted on by electorsthroughout the entire state, the nominating petition, includingthe nominating petition of independent joint candidates for theoffices of governor and lieutenant governor, shall be signed bynoless than five thousand qualified electors, provided that nopetition shall be accepted for filing if it purports to containmore than fifteen thousand signatures.

(B) If the candidacy is to be voted on by electors in anydistrict, political subdivision, or part thereof in which lessthan five thousand electors voted for the office of governor atthe most recent election for that office,the nominatingpetitionshall contain signatures of not less than twenty-fivequalifiedelectors of the district, political subdivision, orpart thereof,or a number of qualified signatures equal to atleast five percent of that vote, if this number is less thantwenty-five.

(C) If the candidacy is to be voted on by electors in anydistrict, political subdivision, or part thereof in which fivethousand or more electors voted for the office of governor at themost recent election for that office, thenominating petitionshall contain a number of signatures equal to at least one percent of those electors.

All nominating petitions of candidates for offices to bevoted on by electors throughout the entire state shall be filedinthe office of the secretary of state. No nominating petitionforthe offices of president and vice-president of the UnitedStatesshall be accepted for filing unless there is submitted tothesecretary of state, at the time of filing the petition, aslate ofpresidential electors sufficient in number to satisfytherequirement of the United States Constitution. The secretaryofstate shall not accept for filing the statement of candidacyof aperson who desires to be an independent candidate for theofficeof governor unless it also shows the joint candidacy of apersonwho desires to be an independent candidate for the officeoflieutenant governor, shall not accept for filing the statementofcandidacy of a person who desires to be an independentcandidatefor the office of lieutenant governor unless it alsoshows thejoint candidacy of a person who desires to be anindependentcandidate for the office of governor, and shall notaccept forfiling the statement of candidacy of a person whodesires to be anindependent candidate to the office of governoror lieutenantgovernor who, for the same election, has alreadyfiledadeclaration of candidacy, a declaration of intentto be awrite-in candidate, or astatement of candidacy, or has become a candidate by the filling of a vacancyundersection3513.30 of the Revised Code for any other stateoffice or any federal or county office.

Nominating petitions of candidates for offices to be votedonby electors within a district or political subdivisioncomprisedof more than one county but less than all counties ofthe stateshall be filed with the boards of elections of thatcounty or partof a county within the district or politicalsubdivision which hada population greater than that of any othercounty or part of acounty within the district or politicalsubdivision according tothe last federal decennial census.

Nominating petitions for offices to be voted on by electorswithin a county or district smaller than a county shall be filedwith the board of elections for such county.

No petition other than the petition of a candidate whosecandidacy is to be considered by electors throughout the entirestate shall be accepted for filing if it appears on its face tocontain more than three times the minimum required number ofsignatures.A board of elections shall not accept for filing anominating petition of a person seeking to become a candidate ifthat person, for the same election, has already filed adeclaration of candidacy, a declaration of intent to be a write-incandidate, or a nominating petition, or has become a candidate bythe filling of a vacancy under section 3513.30 of the Revised Codefor any federal, state, or county office, if the nominating petition is fora state or county office, or for any municipal or township office,for member of a city, local, or exempted village board ofeducation, or for member of a governing board of an educationalservicecenter, if the nominating petition is for a municipal ortownshipoffice, or for member of a city, local, or exemptedvillageboardof education, or for member of a governing board ofaneducationalservice center. When apetition of a candidate hasbeenacceptedforfiling by a board ofelections, the petitionshallnot bedeemedinvalid if, uponverification of signaturescontained inthepetition, the board ofelections finds the numberofsignaturesaccepted exceeds threetimes the minimum number ofsignaturesrequired. A board ofelections may discontinueverifyingsignatures when the number ofverified signatures on apetitionequals the minimum requirednumber of qualifiedsignatures.

Any nonjudicial candidate who files a nominating petition mayrequest, at the time of filing, that the candidate be designatedon the ballot asa nonpartycandidate or as an other-party candidate, or may request that thecandidate's name be placed on the ballot without any designation.Any such candidate who fails to request a designation either as anonparty candidate or as an other-party candidate shall have thecandidate's name placed on the ballot without any designation.

The purpose of establishing a filing deadline forindependentcandidates prior to the primary election immediatelypreceding thegeneral election at which the candidacy is to bevoted on by thevoters is to recognize that the state has asubstantial andcompelling interest in protecting its electoralprocess byencouraging political stability, ensuring that thewinner of theelection will represent a majority of thecommunity, providing theelectorate with an understandableballot, and enhancing votereducation, thus fostering informedand educated expressions of thepopular will in a generalelection. The filing deadline forindependent candidatesrequired in this section preventssplintered parties andunrestrained factionalism, avoids politicalfragmentation, andmaintains the integrity of the ballot. Thedeadline, one dayprior to the primary election, is the leastdrastic orrestrictive means of protecting these state interests.Thegeneral assembly finds that the filing deadline forindependentcandidates in primary elections required in thissection isreasonably related to the state's purpose of ensuringfair andhonest elections while leaving unimpaired the political,voting,and associational rights secured by the first andfourteenthamendments to the United StatesConstitution.

Sec. 3513.259. Nominations of candidates for the office ofmember of the state board of education shall be made only bynominating petition. The nominating petition of a candidate forthe office of member of the state board of education shall besigned by not less than onehundred qualified electors.

No such nominating petition shall be accepted for filing ifit appears on its face to contain signatures aggregating innumbermore than three times the minimum number of signaturesrequired bythis section.A board of elections shall not accept for filing anominating petition of a person if that person, for the sameelection, has already filed a declaration of candidacy, adeclaration of intent to be a write-in candidate, or a nominatingpetition, or has become a candidate through party nomination at aprimary election or by the filling of a vacancy under section3513.30 or 3513.31 of the Revised Code, to be a candidate for anyother state office or any federal or county office. When apetition of acandidate hasbeenaccepted for filing by a board ofelections,the petitionshallnot be deemed invalid if, uponverification ofsignaturescontained in the petition, the board ofelections findsthenumberof signatures accepted exceeds threetimes the minimumnumber ofsignatures required. A board ofelections maydiscontinueverifying signatures when the number ofverifiedsignatures equalsthe minimum required number ofsignatures. Suchpetition shall befiled with the board ofelections of themostpopulous county insuch district not laterthan four p.m. oftheseventy-fifth daybefore the day of thegeneral election atwhichstate board ofeducation members areelected.

Each nominating petition shall be signed by qualifiedelectors residing in the district in which the candidatedesignated therein would be a candidate for election to theofficeof member of the state board of education. Each candidateshallbe a qualified elector residing in the district in whichthecandidateseeks election to such office.

As the word "district" is used in this section, it referstoa district created under section 3301.01 of the Revised Code.

Sec. 3513.261. A nominating petition may consist of one ormore separate petition papers, each of which shall besubstantially in the form prescribed in this section. If thepetition consists of more than one separate petition paper, thestatement of candidacy of the candidate or joint candidates namedneed be signed by the candidate or joint candidates on only oneofsuch separate petition papers, but the statement of candidacysosigned shall be copied on each other separate petition paperbefore the signatures of electors are placedon it. Eachnominating petition containing signatures of electors of morethanone county shall consist of separate petition papers each ofwhichshall contain signatures of electors of only one county;providedthat petitions containing signatures of electors of morethan onecounty shall not thereby be declared invalid. In casepetitionscontaining signatures of electors of more than onecounty arefiled, the board of elections shall determine thecounty fromwhich the majority of the signatures came, and onlysignaturesfrom this county shall be counted. Signatures fromany othercounty shall be invalid.

All signatures on nominating petitions shall be written inink or indelible pencil.

At the time of filing a nominating petition, the candidatedesignated in the nominating petition, and jointcandidates forgovernor andlieutenant governor, shall pay to the electionofficials withwhom it is filed the fees specified for the officeunderdivisions (A) and (B) of section3513.10 of the RevisedCode. The fees shall be disposed of bythose election officialsin the manner thatis provided insection 3513.10 of the RevisedCode for the disposition of otherfees, and in no case shall a feerequired under that section bereturned to acandidate.

Candidates or joint candidates whose names are written ontheballot, and who are elected, shall pay the same fees undersection3513.10 of the Revised Code thatcandidates who file nominatingpetitions pay. Payment ofthesefeesshall be a conditionprecedent to the granting of theircertificates of election.

Each nominating petition shall contain a statement ofcandidacythat shall be signed by the candidate or jointcandidates namedin it. Such statement of candidacy shallcontain a declaration made under penalty of electionfalsificationthat the candidate desires to be a candidate forthe office namedin it, and that the candidate is an electorqualified tovote forthe office the candidate seeks.

The form of the nominating petition and statement ofcandidacy shall be substantially as follows:

I, ................................... (Name of candidate),the undersigned, hereby declare under penalty of electionfalsification that my voting residence is in .......................... Precinct of the ......................... (Township)or(Ward and City, or Village) in the county of ...............Ohio;that my post-office address is ............................(Street and Number, if any, or Rural Route and Number) of the............................... (City, Village, or post office)of...................., Ohio; and that I am a qualified elector inthe precinct in which my voting residence is located. I herebydeclare that I desire to be a candidate for election to theofficeof .............. in the ........................ (State,District, County, City, Village, Township, or School District)forthe ...................................... (Full term orunexpiredterm ending ................) at the General Electionto be heldon the ........... day of ..............., ....

I further declare that I am an elector qualified to voteforthe office I seek. Dated this ....... day of ..............,....

I, ................................., hereby constitute thepersons named below a committee to represent me:

We, the undersigned, qualified electors of the state ofOhio,whose voting residence is in the County, City, Village,Ward,Township or Precinct set opposite our names,hereby nominate.................... as a candidate forelection to the office of........................... in the............................(State, District, County, City,Village, Township, or SchoolDistrict) for the .................(Full term or unexpired termending ...................) to bevoted for at the generalelection next hereafter to be held,and certify that this personis, in our opinion, well qualified toperform the duties of theoffice or position to which the persondesiresto be elected.

..........................., declares under penalty of electionfalsification that such person is a qualified electorof the stateofOhio and resides at the address appearing below suchperson'ssignaturehereto; that such person is the circulator of theforegoing petition papercontaining ................ signatures;that suchperson witnessed theaffixing of every signature; thatall signers were to the bestof such person's knowledge and beliefqualified tosign; and that everysignature is to the best of suchperson's knowledgeand belief thesignature of the person whosesignature it purports to be.

The secretary of state shall prescribe a form of nominatingpetition for a group of candidates for the office of member of aboard of education, township office, and offices of municipalcorporations of under two thousand population.

The secretary of state shall prescribe a form of statementofcandidacy and nominating petition, which shall besubstantiallysimilar to the form of statement of candidacy andnominatingpetition set forth in this section, that will besuitable forjoint candidates for the offices of governor andlieutenantgovernor.

If such petition nominates a candidate whose election is tobe determined by the electors of a county or a district orsubdivision within the county, it shall be filed with the boardofsuch county. If the petition nominates a candidate whoseelectionis to be determined by the voters of a subdivisionlocated in morethan one county, it shall be filed with the boardof the county inwhich the major portion of the population ofsuch subdivision islocated.

If the petition nominates a candidate whose election is tobedetermined by the electors of a district comprised of morethanone county but less than all of the counties of the state,itshall be filed with the board of elections of the mostpopulouscounty in such district. If the petition nominates acandidatewhose election is to be determined by the electors ofthe state atlarge, it shall be filed with the secretary ofstate.

The secretary of state or a board of elections shall notaccept for filing a nominating petition of a person seeking tobecome a candidate if that person, for the same election, hasalready filed a declaration of candidacy, a declaration of intentto be a write-in candidate, or a nominating petition, or hasbecome a candidate through party nomination at a primary electionor by the filling of a vacancy under section 3513.30 or 3513.31 ofthe Revised Code for any federal, state, or county office, if the nominatingpetition is for a state or county office, or for any municipal ortownship office, for member of a city, local, or exemptedvillageboard of education, or for member of a governing board of aneducational service center, if the nominating petition is for amunicipal or township office, or for member of a city, local, orexempted village board of education, or for member of a governingboardof an educational service center.

Sec. 3517.13. (A)(1) No campaign committee of a statewidecandidate shall fail to file acompleteand accurate statement required under division (A)(1) of section3517.10 ofthe Revised Code.

(2) No campaign committee of a statewide candidateshallfail to file a complete and accurate monthly statement, and nocampaigncommitteeof a statewide candidate or a candidate for theoffice of chiefjustice or justice of the supreme court shall failto file acomplete and accurate two-business-day statement, asrequired undersection 3517.10 ofthe Revised Code.

As used in this division,"statewide candidate" has the samemeaning as in division (F)(2) ofsection 3517.10 of the RevisedCode.

(B) No campaign committee shall fail to file a complete and accuratestatementrequired underdivision (A)(1) of section 3517.10 of theRevised Code.

(C) No campaign committee shall fail to file acomplete andaccurate statementrequired under division (A)(2) of section3517.10 of the RevisedCode.

(D) No campaign committee shall fail to file a complete andaccuratestatementrequired under division (A)(3) or (4) of section3517.10 of the RevisedCode.

(E) No person other than a campaign committee shallknowingly fail to file a statement required under section 3517.10or3517.107 of the Revised Code.

(F) No person shall make cash contributions to any persontotaling more than one hundred dollars in each primary, special,or general election.

(G)(1) No person shall knowingly conceal ormisrepresentcontributions given or received, expendituresmade, or any otherinformation requiredto be reported by a provision in sections3517.08 to 3517.13 and3517.17 of the Revised Code.

(2)(a) No person shall make a contribution to acampaigncommittee, political action committee, political contributing entity, legislativecampaign fund,political party, or person making disbursements to pay the direct costs of producing or airing electioneering communications in the name ofanother person.

(b) A person does not make a contribution in the name ofanother when eitherof the following applies:

(i) An individual makes a contribution from a partnership or otherunincorporatedbusiness account, if the contribution is reportedby listing both the name ofthe partnership or other unincorporatedbusiness and the name of the partner orowner making thecontribution as required under division (I) of section 3517.10 of the Revised Code.

(ii) A person makes a contribution in that person's spouse'sname or in bothof their names.

(H) No person within this state, publishing a newspaper orother periodical, shall charge a campaign committee for politicaladvertising a rate in excess of the rate such person would chargeif the campaign committee were a general rate advertiser whoseadvertising was directed to promoting its business within thesamearea as that encompassed by the particular officethat thecandidate of the campaign committee is seeking. The rate shalltake into account the amount of space used, as well as the typeofadvertising copy submitted by or on behalf of the campaigncommittee. All discount privileges otherwise offered by anewspaper or periodical to general rate advertisers shall beavailable upon equal terms to all campaign committees.

No person within this state, operating a radio ortelevisionstation or network of stations in this state, shallcharge acampaign committee for political broadcasts a ratethatexceeds:

(1) During the forty-five days preceding the date of aprimary election and during the sixty days preceding the date ofageneral or special election in which the candidate of thecampaigncommittee is seeking office, the lowest unit charge ofthe stationfor the same class and amount of time for the sameperiod;

(2) At any other time, the charges made for comparable useof that station by its other users.

(I) Subject to divisions (K), (L), (M), and (N) of thissection, no agency or department of this state or any politicalsubdivision shall award any contract, other than one let bycompetitive bidding or a contract incidental to such contract orwhich is by force account, for the purchase of goods costing morethan five hundred dollars or services costing more than fivehundred dollars to any individual, partnership, association,including, without limitation, a professional associationorganized under Chapter 1785. of the Revised Code, estate, ortrust if the individual has made or the individual's spousehasmade, or anypartner, shareholder, administrator, executor, ortrustee or the spouse of any of themhasmade, as an individual,within the twoprevious calendar years, one or more contributionstotaling inexcess of one thousand dollars to the holder of thepublic officehaving ultimate responsibility for the award of thecontract orto the public officer's campaign committee.

(J) Subject to divisions (K), (L), (M), and (N) of thissection, no agency or department of this state or any politicalsubdivision shall award any contract, other than one let bycompetitive bidding or a contract incidental to such contract orwhich is by force account, for the purchase of goods costing morethan five hundred dollars or services costing more than fivehundred dollars to a corporation or business trust, except aprofessional association organized under Chapter 1785. of theRevised Code, if an owner of more than twenty per cent of thecorporation or business trust or the spouse of that person hasmade, as an individual, within the two previous calendar years,taking into consideration only owners for all of that period, oneor more contributions totaling in excess of one thousand dollarsto the holder of a public office having ultimate responsibilityfor the award of the contract or to the public officer's campaigncommittee.

(K) For purposes of divisions (I) and (J) of this section,if a public officer who is responsible for the award of acontractis appointed by the governor, whether or not theappointment issubject to the advice and consent of the senate,excluding membersof boards, commissions, committees,authorities, councils, boardsof trustees, task forces, and othersuch entities appointed by thegovernor, the office of thegovernor is considered to haveultimate responsibility for theaward of the contract.

(L) For purposes of divisions (I) and (J) of this section,if a public officer who is responsible for the award of acontractis appointed by the elected chief executive officer of amunicipalcorporation, or appointed by the elected chiefexecutive officerof a county operating under an alternative formof countygovernment or county charter, excluding members ofboards,commissions, committees, authorities, councils, boards oftrustees, task forces, and other such entities appointed by thechief executive officer, the office of the chief executiveofficeris considered to have ultimate responsibility for theaward of thecontract.

(M)(1) Divisions (I) and (J) of this section do not applytocontracts awarded by the board of commissioners of the sinkingfund, municipal legislative authorities, boards of education,boards of county commissioners, boards of township trustees, orother boards, commissions, committees, authorities, councils,boards of trustees, task forces, and other such entities createdby law, by the supreme court or courts of appeals, by countycourts consisting of more than one judge, courts of common pleasconsisting of more than one judge, or municipal courts consistingof more than one judge, or by a division of any court if thedivision consists of more than one judge. This division shall apply to the specified entity only if themembers ofthe entity act collectively in the award of a contractfor goodsor services.

(2) Divisions (I) and (J) of this section do not apply toactions of the controlling board.

(N)(1) Divisions (I) and (J) of this section apply tocontributions made to the holder of a public office havingultimate responsibility for the award of a contract, or tothepublic officer'scampaign committee, during the timethe personholds the officeand during any time such person was a candidatefor the office. Those divisions do not apply to contributionsmade to, or to thecampaign committee of, a candidate for orholder of the officeother than the holder of the office at thetime of the award ofthe contract.

(2) Divisions (I) and (J) of this section do not apply tocontributions of a partner, shareholder, administrator, executor,trustee, or owner of more than twenty per cent of a corporationorbusiness trust made before the person held any of thosepositionsor after the person ceased to hold any of thosepositions in thepartnership, association, estate, trust,corporation, or businesstrust whose eligibility to be awarded acontract is beingdetermined, nor to contributions of theperson's spouse madebefore the person held any of thosepositions, after the personceased to hold any of thosepositions, before the two weremarried, after the granting ofa decree of divorce, dissolutionof marriage, or annulment, or after thegranting of an order in an actionbrought solely for legalseparation. Those divisions do not applyto contributions of thespouse of an individual whose eligibilityto be awarded acontract is being determined made before the twowere married, after the granting of a decree of divorce,dissolution ofmarriage, or annulment, or after the granting of an orderin an actionbrought solely for legal separation.

(O) No beneficiary of a campaign fund or other person shallconvertfor personal use, and no person shallknowingly give to abeneficiary of a campaign fund or any other person,for thebeneficiary's or any other person's personal use,anything ofvalue fromthe beneficiary's campaign fund, including, withoutlimitation,payments to a beneficiary for services the beneficiarypersonallyperforms, except as reimbursement for any of thefollowing:

(1) Legitimate and verifiable prior campaign expensesincurred by the beneficiary;

(2) Legitimate and verifiable ordinary and necessarypriorexpenses incurred by the beneficiary in connection withduties asthe holder of a public office, including, withoutlimitation,expenses incurred through participation innonpartisan orbipartisan events if the participation of theholder of a publicoffice would normally be expected;

(3) Legitimate and verifiable ordinary and necessary priorexpenses incurred by the beneficiary while doing any of the following:

(a) Engaging in activities in support of or opposition to acandidate other than the beneficiary, political party, or ballotissue;

(b) Raising funds for a political party, political actioncommittee, political contributing entity, legislative campaignfund, campaign committee,or other candidate;

(c) Participating in the activities of a political party,political action committee, political contributing entity, legislative campaign fund, orcampaign committee;

For purposes of this division, an expense is incurredwhenever a beneficiary has either made payment or is obligated tomake payment, as by the use of a credit card or other creditprocedure or by the use of goods or services received on account.

(P) No beneficiary of a campaign fund shall knowinglyaccept, and no person shall knowingly give to the beneficiary ofacampaign fund, reimbursement for an expense under division (O)ofthis section to the extent that the expense previously wasreimbursed or paid from another source of funds. If an expenseisreimbursed under division (O) of this section and is laterpaid orreimbursed, wholly or in part, from another source offunds, thebeneficiary shall repay the reimbursement receivedunder division(O) of this section to the extent of the paymentmade orreimbursement received from the other source.

(Q) No candidate or public official or employee shallacceptfor personal or business use anything of value from apoliticalparty, political action committee, political contributing entity,legislative campaign fund, orcampaigncommittee other than thecandidate's or publicofficial's oremployee's own campaigncommittee, and no person shall knowinglygive to a candidate orpublic official or employee anything ofvalue from a politicalparty, political action committee, political contributing entity,legislative campaign fund, orsucha campaign committee, exceptfor the following:

(1) Reimbursement for legitimate and verifiable ordinaryand necessary prior expenses not otherwise prohibited by lawincurred by the candidate or public official or employee whileengaged in any legitimate activity of the political party,political action committee, political contributing entity, legislative campaign fund, orsuch campaign committee. Withoutlimitation, reimbursable expenses under this division includethose incurred while doing any of the following:

(a) Engaging in activities in support of or opposition toanother candidate, political party, or ballot issue;

(b) Raising funds for a political party, legislativecampaign fund, campaigncommittee, or another candidate;

(2) Compensation not otherwise prohibited by law foractualand valuable personal services rendered under a writtencontractto the political party, political action committee, political contributing entity,legislative campaign fund, or such campaigncommittee forany legitimate activity of thepolitical party,political action committee, political contributing entity, legislative campaign fund, orsuch campaigncommittee.

Reimbursable expenses under this division do not include,andit is a violation of this division for a candidate or publicofficial or employee to accept, or for any person to knowinglygive to a candidate or public official or employee from apolitical party, political action committee, political contributing entity,legislative campaign fund, or campaigncommittee other than the candidate's or publicofficial's oremployee's own campaign committee, anything of value foractivities primarily related to the candidate's or publicofficial's or employee's own campaign for election,except forcontributions to the candidate's or public official'soremployee'scampaign committee.

For purposes of this division, an expense is incurredwhenever a candidate or public official or employee has eithermade payment or is obligated to make payment, as by the use of acredit card or other credit procedure, or by the use of goods orservices on account.

(R)(1) Division (O) or (P) of this section does notprohibita campaign committee from making direct advance or postpaymentfrom contributions to vendors for goods and services forwhichreimbursement is permitted under division (O) of thissection,except that no campaign committee shall pay itscandidate or otherbeneficiary for services personally performedby the candidate orother beneficiary.

(2) If any expense that may be reimbursed under division(O), (P), or (Q) ofthis section is part of other expenses thatmay not be paid or reimbursed, the separation of the two types ofexpenses for the purpose of allocating for payment orreimbursement those expenses that may be paid or reimbursed maybeby any reasonable accounting method, considering all of thesurrounding circumstances.

(3) For purposes of divisions (O), (P), and (Q) of thissection, mileage allowance at a rate not greater than thatallowedby the internal revenue service at the time the traveloccurs maybe paid instead of reimbursement for actual travelexpensesallowable.

(a)"State elective office" has the same meaning as insection3517.092 of the Revised Code.

(b)"Federal office" means a federal office as defined intheFederal Election Campaign Act.

(c)"Federal campaign committee" means a principal campaigncommitteeor authorized committee as defined in the FederalElectionCampaign Act.

(2) No person who is a candidate for state elective officeandwhopreviously sought nomination or election to a federaloffice shall transferanyfunds or assets from that person'sfederal campaign committee for nominationor electionto thefederal office to that person's campaign committee as a candidateforstateelective office.

(3) No campaign committee of a person who is a candidate forstateelective office and who previously sought nomination orelection to a federaloffice shall accept any funds or assets fromthat person's federal campaigncommittee for that person'snomination or election to the federal office.

(T)(1) Except as otherwise provided in division (B)(6)(c) ofsection 3517.102of the Revised Code, astate or county politicalparty shall not disbursemoneys from any account other than astate candidate fund to makecontributions to any of thefollowing:

(c) A campaign committee of a candidate for the office ofgovernor,lieutenant governor, secretary of state, auditor ofstate, treasurer of state,attorney general, member of the stateboard of education, or member of thegeneral assembly.

(2) No state candidate fund, legislative campaign fund, orcampaign committeeof a candidate for any office described indivision (T)(1)(c) of this sectionshall knowingly accept acontribution in violation of division (T)(1)of this section.

(U) No person shall fail to file the statement requiredunder section 3517.12of the Revised Code.

(V) No campaign committee shall fail to file a statementrequiredunder division (K)(3) of section 3517.10 of the RevisedCode.

(W)(1) No foreign national shall, directly or indirectlythroughany other person or entity, make a contribution,expenditure, or independentexpenditure or promise, eitherexpressly or implicitly, to make acontribution, expenditure, orindependent expenditure in support of oropposition to a candidatefor any elective office in this state, including anoffice of apolitical party.

(2) No candidate, campaign committee, political actioncommittee, political contributing entity, legislative campaignfund, state candidatefund, political party, or separatesegregated fund shall solicit or accept a contribution,expenditure, orindependent expenditure from a foreign national.The secretary of statemay direct any candidate,committee, entity, fund, or party that accepts a contribution,expenditure, orindependent expenditure in violation of thisdivision to returnthe contribution, expenditure, or independentexpenditure or, ifit is not possible to return the contribution, expenditure,orindependent expenditure, then to return instead the value of it,tothe contributor.

(3) As used in division (W) of this section,"foreign national" has the samemeaning as insection 441e(b) of the FederalElection CampaignAct.

(X)(1) No state or county political party shall transfer any moneys from its restricted fund to any account of the political party into which contributions may be made or from which contributions or expenditures may be made.

(2)(a) No state or county political party shall deposit a contribution or contributions that it receives into its restricted fund.

(b) No state or county political party shall make a contribution or an expenditure from its restricted fund.

(3)(a) No corporation or labor organization shall make a gift or gifts from the corporation's or labor organization's money or property aggregating more than ten thousand dollars to any one state or county political party for the party's restricted fund in a calendar year.

(b) No state or county political party shall accept a gift or gifts for the party's restricted fund aggregating more than ten thousand dollars from any one corporation or labor organization in a calendar year.

(4) No state or county political party shall transfer any moneys in the party's restricted fund to any other state or county political party.

(5) No state or county political party shall knowingly fail to file a statement required under section 3517.1012 of the Revised Code.

(Y) The administrator of workers' compensation and the employees of the bureau of workers' compensation shall not conduct any business with or award any contract, other than one awarded by competitive bidding, for the purchase of goods costing more than five hundred dollars or services costing more than five hundred dollars to any individual, partnership, association, including, without limitation, a professional association organized under Chapter 1785. of the Revised Code, estate, or trust, if the individual has made, or the individual's spouse has made, or any partner, shareholder, administrator, executor, or trustee, or the spouses of any of those individuals has made, as an individual, within the two previous calendar years, one or more contributions totaling in excess of one thousand dollars to the campaign committee of the governor or lieutenant governor or to the campaign committee of any candidate for the office of governor or lieutenant governor.

(Z) The administrator of workers' compensation and the employees of the bureau of workers' compensation shall not conduct business with or award any contract, other than one awarded by competitive bidding, for the purchase of goods costing more than five hundred dollars or services costing more than five hundred dollars to a corporation or business trust, except a professional association organized under Chapter 1785. of the Revised Code, if an owner of more than twenty per cent of the corporation or business trust, or the spouse of the owner, has made, as an individual, within the two previous calendar years, taking into consideration only owners for all of such period, one or more contributions totaling in excess of one thousand dollars to the campaign committee of the governor or lieutenant governor or to the campaign committee of any candidate for the office of governor or lieutenant governor.

Sec. 3517.151. (A) On and after January 1, 1996,complaints with respect to acts or failures to act under thesections listedin division (A) ofsection 3517.153 of the RevisedCode shall be filed withthe Ohio elections commission createdunder section3517.152 of the Revised Code.

(B)(1) If a complaint filed with theOhio electionscommission created under section 3517.152of the Revised Codealleges an act or failure toact that occurred beforeAugust 24,1995, and the commission imposes a fine,sections 3517.99 and3517.991of the RevisedCode, and not sections 3517.992 and3517.993 of theRevised Code, shall apply.

(2) If a complaint filed with the Ohioelections commissioncreated under section 3517.152 of theRevised Code alleges an actor failure to actthat is a violation of section 3517.13 of theRevisedCode, former divisions (A) to (R) of thatsection apply to theact or failure to act if it occurred beforeAugust 24,1995, formerdivisions (A) to (U) of thatsection apply to the act or failureto act ifit occurs on or afterAugust 24, 1995, but before July13, 1998, formerdivisions(A) to (V) of that section apply to the act orfailure toact if it occurs on or after July 13, 1998, but beforeDecember 22, 1999, former divisions (A) to (W) ofthatsection apply to the act or failure to act if it occurs on orafterDecember 22, 1999, but before ~~the effective date of this amendment~~ March 31, 2005, ~~and~~ former divisions (A) to (X) of that section apply to the act or failure to act if it occurs on or after ~~the effective date of this amendment~~ March 31, 2005, and divisions (A) to (Z) of that section apply to the act or failure to act if it occurs on or after the effective date of this amendment.

(C) The Ohio elections commission created undersection3517.14 of the Revised Code is abolishedat the close of businesson December 31, 1995.

Sec. 3701.023. (A) The department of health shall reviewapplications for eligibility for the program for medicallyhandicapped children that are submitted to the department by cityand general health districts and physician providers approved inaccordance with division (C) of this section. The departmentshall determine whether the applicants meet the medical andfinancial eligibility requirements established by the publichealth council pursuant to division (A)(1) of section 3701.021 ofthe Revised Code, and by the department in the manual ofoperational procedures and guidelines for the program formedically handicapped children developed pursuant to division (B)of that section. Referrals of potentially eligible children forthe program may be submitted to the department on behalf of thechild by parents, guardians, public health nurses, or any otherinterested person. The department of health may designate otheragencies to refer applicants to the department of health.

(B) In accordance with the procedures established in rulesadopted under division (A)(4) of section 3701.021 of the RevisedCode, the department of health shall authorize a provider orproviders to provide to any Ohio resident under twenty-one yearsof age, without charge to the resident or the resident'sfamilyand without restriction as to the economic status of the residentorthe resident's family, diagnostic services necessary todetermine whether the resident ~~suffers from~~ has a medicallyhandicapping or potentially medicallyhandicapping condition.

(C) The department of health shall review the applicationsof health professionals, hospitals, medical equipment suppliers,and other individuals, groups, or agencies that apply to becomeproviders. The department shall enter into a written agreementwith each applicant who is determined, pursuant to therequirements set forth in rules adopted under division (A)(2) ofsection 3701.021 of the Revised Code, to be eligible to be aprovider in accordance with the provider agreement required bythemedical assistance program established under section 5111.01ofthe Revised Code. No provider shall charge a medicallyhandicapped child or the child's parent or guardian forservicesauthorized by the department under division (B) or (D) of thissection.

The department, in accordance with rules adopted underdivision (A)(3) of section 3701.021 of the Revised Code, maydisqualify any provider from further participation in the programfor violating any requirement set forth in rules adopted underdivision (A)(2) of that section. The disqualification shall nottake effect until a written notice, specifying the requirementviolated and describing the nature of the violation, has beendelivered to the provider and the department has afforded theprovider an opportunity to appeal the disqualification underdivision (H) of this section.

(D) The department of health shall evaluate applicationsfrom city and general health districts and approved physicianproviders for authorization to provide treatment services,servicecoordination, and related goods to children determined tobeeligible for the program for medically handicapped childrenpursuant to division (A) of this section. The department shallauthorize necessary treatment services, service coordination, andrelated goods for each eligible child in accordance with anindividual plan of treatment for the child. As an alternative,the department may authorize payment of health insurancepremiumson behalf of eligible children when the department determines, inaccordance with criteria set forth in rules adopted underdivision(A)(9) of section 3701.021 of the Revised Code, thatpayment ofthe premiums is cost-effective.

(E) The department of health shall pay, fromappropriationsto the department, any necessary expenses,including but notlimited to, expenses for diagnosis, treatment,servicecoordination, supportive services, transportation, andaccessoriesand their upkeep, provided to medically handicappedchildren,provided that the provision of the goods or services isauthorizedby the department under division (B) or (D) of thissection.Moneyappropriated to the department of health may alsobeexpended forreasonable administrative costs incurred by theprogram. Thedepartment of health also may purchase liabilityinsurancecovering the provision of services under the programformedicallyhandicapped children by physicians and other healthcareprofessionals.

Payments made to providers by the department of health pursuant to thisdivision for inpatient hospital care, outpatient care, and allother medical assistance furnished ~~by hospitals~~ to eligiblerecipients shall be in accordance with methods established byrules of the public health council. Until such rules areadopted,the department of health shall make payments tohospitals inaccordance with reasonable cost principles forreimbursement underthe medicare program established under TitleXVIII of the"SocialSecurity Act," 79 Stat. 286 (1965), 42U.S.C.A. 1395, as amended.Payments to providers for goods orservices other than inpatientor outpatient hospital care shallbe made in accordance with rulesadopted by the public healthcouncil pursuant to division (A) ofsection 3701.021 of theRevised Code.

The departments of health and job and family servicesshalljointlyimplement procedures to ensure that duplicate payments arenotmade under the program for medically handicapped children andthemedical assistance program established under section 5111.01ofthe Revised Code and to identify and recover duplicatepayments.

(F)~~(1)~~ At the time of applying for participation in theprogram for medically handicapped children, a medicallyhandicapped child or the child's parent or guardian shalldisclosethe identity of any third party against whom the child orthechild's parent or guardian has or may have a right of recovery forgoods andservices provided under division (B) or (D) of thissection.~~Except as provided in division (F)(2) of this section,the~~ Thedepartment of health shall require a medically handicappedchildwho receives services from the program or the child'sparentor guardian to apply for all third-party benefits for whichthechild may be eligible and require the child, parent, or guardianto apply allthird-party benefits received to the amountdetermined underdivision (E) of this section as the amountpayable for goods andservices authorized under division (B) or(D) of this section.The department is the payer of last resortand shall pay forauthorized goods or services, up to the amountdetermined underdivision (E) of this section for the authorizedgoods orservices, only to the extent that payment for theauthorizedgoods or services is not made through third-partybenefits. Whena third party fails to act on an application orclaim forbenefits by a medically handicapped child or the child'sparent or guardian, the department shall pay for the goods orservices onlyafter ninety days have elapsed since the date thechild, parents,or guardians made an application or claim for allthird-partybenefits~~, except as provided in division (F)(2) ofthis section~~.Third-party benefits received shall be applied tothe amountdetermined under division (E) of this section.Third-partypayments for goods and services not authorized underdivision (B)or (D) of this section shall not be applied topayment amountsdetermined under division (E) of this section.Payment made bythe department shall be considered payment in fullof the amountdetermined under division (E) of this section.Medicaid paymentsfor persons eligible for the medical assistanceprogramestablished under section 5111.01 of the Revised Codeshall beconsidered payment in full of the amount determined underdivision (E) of this section.

(2) A medically handicapped child or the parent orguardianof such a child is not required to apply for assistance underthemedical assistance program established under section 5111.01 ofthe Revised Code as a condition for eligibility under the programfor medically handicapped children if applying for or receivingassistance under the medical assistance program violates areligious belief of the child, parent, or guardian and a tenet ofthe child's, parent's, or guardian's religion.

(G) The department of health shall administer a program toprovide services to Ohio residents who are twenty-one or moreyears of age who ~~are suffering from~~ have cystic fibrosis and who meetthe eligibility requirements established by the rules of thepublic health council pursuant to division (A)(7) of section3701.021 of the Revised Code, subject to all provisions of thissection, but not subject to section 3701.024 of the Revised Code.

(H) The department of health shall provide for appeals, inaccordance with rules adopted under section 3701.021 of theRevised Code, of denials of applications for the program formedically handicapped children under division (A) or (D) of thissection, disqualification of providers, or amounts paid underdivision (E) of this section. Appeals under this division arenotsubject to Chapter 119. of the Revised Code.

The department may designate ombudspersons to assistmedicallyhandicapped children or their parents or guardians, upontherequest of the children, parents, or guardians, in filingappealsunder this division and to serve as children's, parents',orguardians' advocates in matters pertaining to theadministrationof the program for medically handicapped childrenand eligibilityfor program services. The ombudspersons shallreceive nocompensation but shall be reimbursed by the department,inaccordance with rules of the office of budget and management,fortheir actual and necessary travel expenses incurred in theperformance of their duties.

(I) The department of health, and city and general healthdistricts providing service coordination pursuant to division(A)(2) of section 3701.024 of the Revised Code, shall provideservice coordination in accordance with the standards set forthinthe rules adopted under section 3701.021 of the Revised Code,without charge, and without restriction as to economic status.

Sec. 3701.073. (A) The department of health is hereby designated as the state agency responsible for administering the medicare rural hospital flexibility program, as established in 42 U.S.C. 1395i-4, as amended.

(B) The director of health shall designate as a critical access hospital a hospital registered as an acute care hospital with the department under section 3701.07 of the Revised Code if the hospital meets the following requirements:

(1) Has not more than twenty-five acute care and swing beds in use at any time for the furnishing of extended care or acute care inpatient services;

(2) Has a length of stay not more than ninety-six hours per patient, on an annual average basis;

(3) Provides inpatient, outpatient, emergency, laboratory, radiology, and twenty-four hour emergency care services;

(4) Has network agreements in place for patient referral and transfer, a communication system for telemetry systems, electronic sharing of patient data, provision for emergency and non-emergency transportation, and assures credentialing and quality assurance;

(5) Was certified as a critical access hospital by the centers for medicare and medicaid services between January 1, 2001, and December 31, 2005, or is located in a rural area as identified below:

(a) An area within an Ohio metropolitan area designated as a rural area by the United States department of health and human services, office of rural health policy, in accordance with 42 C.F.R. 412.103 regarding rural urban commuting area codes four through ten in effect on the effective date of this section;

(b) A non-metropolitan county as designated in United States office of management and budget bulletin no. 93-17, June 30, 1993, and its attachments;

(c) A rural zip code within a metropolitan county as designated in United States office of management and budget bulletin no. 93-17, June 30, 1993, and its attachments.

Sec. 3701.146. (A) In taking actions regarding tuberculosis,the director of health has all of the following duties and powers:

(1) ~~The director shall make payments to boards of countycommissioners inaccordance with section 339.77 of the RevisedCode.~~

~~(2)~~ The director shall maintain registries of hospitals,clinics,physicians,or other care providers to whom the directorshall refer persons who makeinquiries to the department of healthregarding possible exposure totuberculosis.

~~(3)~~(2) The director shall engage in tuberculosis surveillanceactivities,including thecollection and analysis ofepidemiological information relativeto the frequency oftuberculosis infection, demographic andgeographic distribution oftuberculosis cases, and trendspertaining to tuberculosis.

~~(4)~~(3) The director shall maintain a tuberculosis registrytorecord the incidence of tuberculosis in this state.

~~(5)~~(4) The director may appointphysicians to serve astuberculosis consultants for geographicregions of the statespecified by the director. Eachtuberculosis consultant shall actin accordance with rulesthe director establishes andshall be responsible foradvising and assisting physicians andother health carepractitioners who participate in tuberculosiscontrol activities and forreviewing medical records pertaining tothe treatmentprovided to individuals with tuberculosis.

(B)(1) The public health council shalladopt rulesestablishingstandards for the following:

(b) Performing examinations of individuals who have beenexposed to tuberculosis and individuals who are suspected ofhaving tuberculosis;

(d) Preventing individuals with communicabletuberculosis from infecting other individuals;

(e) Performing laboratory tests for tuberculosis and studiesof the resistance of tuberculosis to one or more drugs;

(f) Selecting laboratories that provide in a timely fashiontheresults of a laboratory test for tuberculosis. The standardsshall include arequirement that first consideration be given tolaboratories located in thisstate.

(2) Rules adopted pursuant to this section shall be adopted in accordance withChapter119. ofthe Revised Code and maybe consistent with anyrecommendationsor guidelines ontuberculosis issued by the UnitedStates centersfor diseasecontrol and prevention or by theAmerican thoracicsociety. Therules shall apply to county ordistrict tuberculosiscontrolunits, physicians who examine andtreat individuals fortuberculosis, and laboratories that performtests fortuberculosis.

Sec. 3701.65. (A) There is hereby created in the state treasurythe"choose life" fund. The fund shall consist ofthecontributions that are paid to the registrar of motor vehiclesbyapplicants who voluntarily elect to obtain "choose life"licenseplates pursuant to section 4503.91 of the Revised Code and any money returned to the fund under division (E)(1)(d) of this section. All investment earnings of the fund shall be credited to the fund.

(B)(1) At least annually, the director of health shall distribute the money in the fund to any private, nonprofit organization that is eligible to receive funds under this section and that applies for funding under division (C) of this section.

(2) The director shall distribute the funds based on the county in which the organization applying for funding is located and in proportion to the number of "choose life" license plates issued during the preceding year to vehicles registered in each county. Within each county, eligible organizations that apply for funding shall share equally in the funds available for distribution to organizations located within that county.

(C) Any organization seeking funds under this section annually shall apply for distribution of the funds. The director shall develop an application form and may determine the schedule and procedures that an organization shall follow when annually applying for funds. The application shall inform the applicant of the conditions for receiving and using funds under division (E) of this section. The application shall require evidence that the organization meets all of the following requirements:

(3) Provides services within the state to pregnant women who are planning to place their children for adoption, including counseling and meeting the material needs of the women;

(5) Is not involved or associated with any abortion activities, including counseling for or referrals to abortion clinics, providing medical abortion-related procedures, or pro-abortion advertising;

(6) Does not discriminate in its provision of any services on the basis of race, religion, color, age, marital status, national origin, handicap, gender, or age.

(D) The director shall not distribute funds to an organization that does not provide verifiable evidence of the requirements specified in the application under division (C) of this section and shall not provide additional funds to any organization that fails to comply with division (E) of this section in regard to its previous receipt of funds under this section.

(E)(1) An organization receiving funds under this section shall do all of the following:

(a) Use not more than sixty per cent of the funds distributed to it for the material needs of pregnant women who are planning to place their children for adoption or for infants awaiting placement with adoptive parents, including clothing, housing, medical care, food, utilities, and transportation;

(b) Use not more than forty per cent of the funds distributed to it for counseling, training, or advertising;

(d) Annually return to the fund created under division (A) of this section any unused money that exceeds ten per cent of the money distributed to the organization.

(2) The organization annually shall submit to the director an audited financial statement verifying its compliance with division (E)(1) of this section.

(F) The director, in accordance with Chapter 119. of the Revised Code, shall adopt rules to implement this section.

It is not the intent of the general assembly that the department create a new position within the department to implement and administer this section. It is the intent of the general assembly that the implementation and administration of this section be accomplished by existing department personnel.

(1) "~~existing~~ Existing health care facility" ~~has~~ means a health carefacility that is licensed or otherwise approved to practice inthis state, in accordance with applicable law, is staffed andequipped to provide health care services, and actively provideshealth services or has not been actively providing healthservicesfor less than twelve consecutive months.

(2) "Health care facility" and "health service" have thesame ~~meaning~~ meanings as in section 3702.51 of theRevisedCode.

(B) Section 3702.14 ofthe RevisedCode shall not be construed torequire any existing health care facility that is conducting anactivity specified in section 3702.11 of theRevisedCode, which activity wasinitiated on or before March 20, 1997, to alter, upgrade,or otherwise improve the structureor fixtures of the facility in order to comply with any ruleadopted under section 3702.11 of theRevisedCode relating to that activity,unless one of the following applies:

(1) The facility initiates a construction, renovation, orreconstruction project that involves a capital expenditure of atleast fifty thousand dollars, not including expendituresfor equipment or staffing or operational costs, andthat directly involves the area in which the existing service isconducted.

(2) The facility initiates another activity specified insection 3702.11 of the RevisedCode.

(3) The facility initiates a service level designationchange for obstetric and newborn care.

(4) The facility proposes to add a cardiaccatheterization laboratory to an existing cardiaccatheterization service.

(5) The facility proposes to add an open-heart operatingroom to an existing open-heart surgery service.

(6) The director of health determines, by clear andconvincing evidence, that failure to comply with the rule wouldcreate an imminent risk to the health and welfare of anypatient.

(C) If division(B)(4) or (5) of this sectionapplies, any alteration, upgrade, or other improvement requiredshall apply only to the proposed addition to the existingservice if the cost of the addition is less than the capitalexpenditure threshold set forth in division(B)(1) of this section.

(D) No person orgovernment entity shall divide or otherwise segment aconstruction, renovation, or reconstruction project in order toevade application of the capital expenditure threshold set forthin division (B)(1) of thissection.

(A)"Applicant" means any person that submits anapplicationfor a certificate of need and who is designated inthe applicationas the applicant.

(B)"Person" means any individual, corporation, businesstrust, estate, firm, partnership, association, joint stockcompany, insurance company, government unit, or other entity.

(C)"Certificate of need" means a written approval grantedbythe director of health to an applicant to authorize conductingareviewable activity.

(D)"Health service area" means a geographic regiondesignated by the director of health under section 3702.58 of theRevised Code.

(E)"Health service" means a clinically related service,suchas a diagnostic, treatment, rehabilitative, or preventiveservice.

(F)"Health service agency" means an agency designated toserve a health service area in accordance with section 3702.58 ofthe Revised Code.

(2) A nursing home licensed under section 3721.02 of theRevised Code, or by a political subdivision certified undersection 3721.09 of the Revised Code;

(3) A county home or a county nursing home as defined insection 5155.31 of the Revised Code that is certified under TitleXVIII or XIX of the"Social Security Act," 49 Stat. 620 (1935),42U.S.C.A. 301, as amended;

A health care facility does not include the offices ofprivate physicians and dentists whether for individual or grouppractice, residential facilities licensed under section5123.19 ofthe Revised Code, ~~or habilitation centers certified bythedirector of mental retardation and developmental disabilitiesunder section 5123.041 of the Revised Code,~~ or an institution forthe sick that is operated exclusively for patients who usespiritual means forhealing and for whom the acceptance of medicalcare is inconsistent with theirreligious beliefs, accredited by anational accrediting organization, exemptfrom federal incometaxation under section 501 of the InternalRevenue Code of 1986,100 Stat. 2085, 26 U.S.C.A. 1, asamended, and providingtwenty-four hour nursing care pursuant to the exemptionindivision (E) of section 4723.32 of the Revised Code fromthelicensing requirements of Chapter 4723. of the Revised Code.

(H)"Medical equipment" means a single unit of medicalequipment or a single system of components with related functionsthat is used to provide health services.

(I)"Third-party payer" means a health insuring corporationlicensed under Chapter1751.of the Revised Code, a healthmaintenance organization as defined indivision (K) of thissection, aninsurance company that issues sickness and accidentinsurance inconformity with Chapter 3923. of the Revised Code, astate-financed health insurance program under Chapter 3701.,4123., or 5111. of the Revised Code, or any self-insurance plan.

(J)"Government unit" means the state and any county,municipal corporation, township, or other political subdivisionofthe state, or any department, division, board, or other agencyofthe state or a political subdivision.

(K)"Health maintenance organization" means a public orprivate organization organized under the law of any state that isqualified under section 1310(d) of Title XIII of the"PublicHealth Service Act," 87 Stat. 931 (1973), 42 U.S.C.300e-9.

(1) A health carefacility that is licensed or otherwise ~~approved~~ authorized to ~~practice~~ operate inthis state, in accordance with applicable law, is staffed andequipped to provide health care services, and is actively ~~provides~~ providinghealth services ~~or has not been actively providing healthservicesfor less than twelve consecutive months~~;

(2) A health care facility that is licensed or has beds registered under section 3701.07 of the Revised Code as skilled nursing beds or long-term care beds and has provided services for at least three hundred sixty-five consecutive days within the twenty-four months immediately preceding the date a certificate of need application is filed with the director of health.

(M)"State" means the state of Ohio, including, but notlimited to, the general assembly, the supreme court, the officesof all elected state officers, and all departments, boards,offices, commissions, agencies, institutions, and otherinstrumentalities of the state of Ohio."State" does not includepolitical subdivisions.

(N)"Political subdivision" means a municipal corporation,township, county, school district, and all other bodies corporateand politic responsible for governmental activities only ingeographic areas smaller than that of the state to which thesovereign immunity of the state attaches.

(1) An applicant for a certificate of need, including anapplicant whose application was reviewed comparatively with theapplication in question;

(3) Any person that resides or regularly uses health carefacilities within the geographic area served or to be served bythe health care services that would be provided under thecertificate of need or reviewability ruling in question;

(4) Any health care facility that is located in the healthservice area where the health care services would be providedunder the certificate of need or reviewability ruling in question;

(5) Third-party payers that reimburse health carefacilitiesfor services in the health service area where thehealth careservices would be provided under the certificate of need orreviewability ruling in question;

(6) Any other person who testified at a public hearingheldunder division (B) of section 3702.52 of the Revised Code orsubmitted written comments in the course of review of thecertificate of need application in question.

(P)"Osteopathic hospital" means a hospital registeredundersection 3701.07 of the Revised Code that advocatesosteopathicprinciples and the practice and perpetuation ofosteopathicmedicine by doing any of the following:

(1) Maintaining a department or service of osteopathicmedicine or a committee on the utilization of osteopathicprinciples and methods, under the supervision of an osteopathicphysician;

(2) Maintaining an active medical staff, the majority ofwhich is comprised of osteopathic physicians;

(3) Maintaining a medical staff executive committee thathasosteopathic physicians as a majority of its members.

(Q)"Ambulatory surgical facility" has the same meaning asinsection 3702.30 of the Revised Code.

(R) Except as otherwise provided in division (T) of thissection, and untilthe termination date specified in section3702.511 of the Revised Code,"reviewable activity" means any ofthe following:

(1) The additionby any person of any of the followinghealthservices, regardless of the amount of operating costs orcapitalexpenditures:

(a) A heart, heart-lung, lung, liver, kidney, bowel,pancreas, or bone marrow transplantation service, a stem cellharvesting andreinfusion service, or a service fortransplantationof any other organ unless transplantation of theorgan isdesignated by public health council rule not to be areviewableactivity;

(d) Any new, experimental medical technologythat isdesignated by rule of the public health council.

(2) The acceptance of high-risk patients, as defined inrules adopted under section 3702.57 of the Revised Code, by anycardiaccatheterization service that was initiated without acertificate ofneed pursuant to division(R)(3)(b) of the versionof this section in effectimmediately prior to April 20,1995;

(3)(a) The establishment, development, or construction of anew health care facility other than a new long-term care facilityor a newhospital;

(b) The establishment, development, or construction of a newhospital orthe relocation of an existing hospital;

(c) The relocation of hospital beds, other than long-termcare,perinatal, or pediatric intensive care beds, into or out ofa ruralarea.

(b) The replacement of an existing hospital obstetric ornewborn care unit or freestanding birthingcenter.

(5)(a) The renovation of a hospitalthat involvesa capitalexpenditure, obligated on or after~~the effective date ofthisamendment~~June 30, 1995, of five million dollars or more,not includingexpenditures for equipment, staffing, or operational costs. Forpurposes of division (R)(5)(a) of thissection, a capitalexpenditure is obligated:

(i) When a contract enforceable under Ohio law is enteredinto for the construction, acquisition, lease, or financing of acapitalasset;

(ii) When the governing body of a hospital takes formalaction tocommit its own funds for a construction projectundertaken by the hospital asits own contractor;

(iii) In the case of donated property, on the date the giftiscompleted under applicable Ohio law.

(b) The renovation of a hospital obstetric or newborn careunitor freestanding birthing center that involves a capitalexpenditure of fivemillion dollars or more, not includingexpenditures for equipment, staffing,or operational costs.

(6) Any change in the health care services, bed capacity,orsite, or any other failure to conduct the reviewable activityinsubstantial accordance with the approved application for whichacertificate of need was granted, if the change is made prior tothe date the activity for which the certificate was issued ceasesto be areviewable activity;

(7) Any of the following changes in perinatal bed capacityor pediatricintensive care bed capacity:

(b) A change in service or service-leveldesignation ofnewborn care beds or obstetric beds in a hospital orfreestandingbirthing center, other than a change of service that is providedwithin the service-level designation of newborn care or obstetricbeds asregistered by the department of health;

(c) A relocation of perinatal or pediatricintensive carebeds from one physical facility orsite to another, excluding therelocation of beds within ahospital or freestanding birthingcenter or the relocation of beds among buildings of ahospital orfreestanding birthingcenter at the same site.

(8) The expenditure of more than one hundred ten per centofthe maximum expenditure specified in a certificate of need;

(9) Any transfer of a certificate of need issued prior toApril20, 1995, from the personto whom it was issued to anotherperson before the project thatconstitutes a reviewable activityis completed, any agreementthat contemplates the transfer of acertificate of need issued prior to thatdate uponcompletion ofthe project, and any transfer of the controllinginterest in anentity that holds a certificate of need issued prior to thatdate.However, the transfer of a certificate of need issued prior tothatdate or agreement totransfer such a certificate of need fromthe person to whom thecertificate of need was issued to anaffiliated or related persondoes not constitute a reviewabletransfer of a certificate ofneed for the purposes of thisdivision, unless the transferresults in a change in the personthat holds theultimate controlling interest in the certificate ofneed.

(10)(a) The acquisition by any person of any of thefollowing medicalequipment,regardless of the amount of operatingcosts or capital expenditure:

(b) The acquisition by any person of medical equipment withacost of two million dollars or more. The cost of acquiringmedical equipmentincludes the sum of the following:

(ii) The cost of installation and any other activitiesessentialto the acquisition of the equipment and its placementinto service.

(11) The addition of another cardiaccatheterizationlaboratory to an existing cardiaccatheterization service.

(S) Except as provided in division(T) of this section,"reviewable activity" also means any of the followingactivities,none of which are subject to a termination date:

(1) The establishment, development, or construction of anewlong-term care facility;

(3) The renovation of a long-term care facility thatinvolves a capital expenditure of two million dollars or more,notincluding expenditures for equipment, staffing, oroperationalcosts;

(b) A relocation of beds from onephysical facility or siteto another, excluding the relocationof beds within a long-termcare facility or among buildings of along-term care facility atthe same site;

(c) A recategorization of hospitalbeds registered undersection 3701.07 of theRevisedCode from another registrationcategory to skilled nursing beds or long-term care beds.

(5) Any change in the health services, bed capacity, orsite, or any other failure to conduct the reviewable activity insubstantial accordance with the approved application for which acertificate of need concerning long-term care beds was granted,ifthe change is made within five years after the implementationofthe reviewable activity for which the certificate wasgranted;

(6) The expenditure of more than one hundred ten per centofthe maximum expenditure specified in a certificate of needconcerning long-term care beds;

(7) Any transfer of a certificate of need that concernslong-term care beds and was issued prior toApril 20, 1995, fromthe personto whom it was issued to another person before theproject thatconstitutes a reviewable activity is completed, anyagreementthat contemplates the transfer of such a certificate ofneedupon completion of the project, and any transfer of thecontrolling interest in an entity that holds such a certificateofneed. However, the transfer of a certificate of need thatconcerns long-term care beds and was issued prior toApril 20,1995, or agreement totransfer such a certificate of need from theperson to whom thecertificate was issued to an affiliated orrelated person doesnot constitute a reviewable transfer of acertificate of needfor purposes of this division, unless thetransfer results in achange in the person that holds the ultimatecontrollinginterest in the certificate of need.

(4) Correction of cited deficiencies that are in violationof federal, state, or local fire, building, or safety laws andrules and that constitute an imminent threat to public health orsafety;

(5) Acquisition of an existing health care facility thatdoes not involve a change in the number of the beds, by service,or in the number or type of health services;

(6) Correction of cited deficiencies identified byaccreditation surveys of the joint commission on accreditation ofhealthcare organizations or of the American osteopathicassociation;

(7) Acquisition of medical equipment to replace the sameorsimilar equipment for which a certificate of need has beenissuedif the replaced equipment is removed from service;

(8) Mergers, consolidations, or other corporatereorganizations of health care facilities that do not involve achange in the number of beds, by service, or in the number ortypeof health services;

(10) Construction of laundry facilities, waste disposalfacilities, dietary department projects, heating and airconditioning projects, administrative offices, and portions ofmedical office buildings used exclusively for physician services;

(11) Acquisition of medical equipment to conduct researchrequired by the United States food and drug administration orclinical trials sponsored by the national institute of health.Use of medical equipment that was acquired without a certificateof need under division (T)(11) of this section and forwhichpremarket approval has been granted by the United States food anddrug administration to provide services for which patients orreimbursement entities will be charged shall be a reviewableactivity.

Only that portion of a project that meets the requirementsofdivision (T) of this section is not a reviewableactivity.

(U)"Small rural hospital" means a hospital that islocatedwithin a rural area, has fewer thanone hundred beds, and to whichfewer than four thousand personswere admitted during the mostrecent calendar year.

(1) A hospital registered under section 3701.07 of theRevised Code that provides general pediatric medical and surgicalcare, and in which at least seventy-five per cent of annualinpatient discharges for the preceding two calendar years wereindividuals less than eighteen years of age;

(2) A distinct portion of a hospital registered undersection 3701.07 of the Revised Code that provides generalpediatric medical and surgical care, has a total of at least onehundred fifty registered pediatric special care and pediatricacute care beds, and in which at least seventy-five per cent ofannual inpatient discharges for the preceding two calendar yearswere individuals less than eighteen years of age;

(3) A distinct portion of a hospital, if the hospital isregistered under section 3701.07 of the Revised Code as achildren's hospital and the children's hospital meets all therequirements of division (V)(1) of this section.

(1) A nursing home licensed under section 3721.02 of theRevised Code or by a political subdivision certified under section3721.09 ofthe Revised Code;

(2) The portion of any facility, including a county home orcountynursing home, that is certified as a skilled nursingfacility or a nursingfacility under Title XVIII or XIX of the"Social Security Act";

(3) The portion of any hospital that contains bedsregistered undersection 3701.07 of the Revised Code as skillednursing beds or long-term carebeds.

(Y)"Perinatal bed" means a bed in a hospital that isregistered undersection 3701.07 of the Revised Code as a newborncare bed or obstetric bed, ora bed in a freestanding birthingcenter.

(Z)"Freestanding birthing center" means any facility inwhichdeliveries routinely occur, regardless of whetherthefacility is located on the campus of another health care facility,andwhich is not licensed under Chapter 3711. ofthe RevisedCodeas a level one, two, or three maternityunit or a limitedmaternity unit.

(AA)(1)"Reviewability ruling" means a ruling issued by thedirector of health under division (A) of section 3702.52 of theRevised Codeas to whether a particular proposed project is or isnot areviewable activity.

(2)"Nonreviewability ruling" means a ruling issued underthat division that a particular proposed project is not areviewableactivity.

(BB)(1)"Metropolitanstatistical area" means an area ofthisstate designated ametropolitan statistical area or primarymetropolitanstatistical area in UnitedStates office ofmanagement andbudget bulletin No. 93-17,June 30, 1993, and itsattachments.

(2)"Rural area" means any area of this state not locatedwithin a metropolitan statistical area.

Sec. 3702.68. (A) Notwithstanding sections 3702.51 to3702.62 of the Revised Code, this section applies to the reviewofcertificate of need applications during the period beginningJuly1, 1993, and endingJune 30, ~~2005~~ 2007.

As used in this section, "existing health care facility" has the same meaning as in section 3702.51 of the Revised Code.

(B)(1) Except as provided in division (B)(2) of thissection, the director of health shall neither grant nor deny anyapplication for a certificate of need submitted prior to July 1,1993, if theapplication was for any ofthe following and thedirector had not issued a written decisionconcerning theapplication prior to that date:

(a) Approval of beds in a new health care facility or anincrease of beds in an existing health care facility, if the bedsare proposed to be licensed as nursing home beds under Chapter3721. of the Revised Code;

(b) Approval of beds in a new county home or new countynursing home as defined in section 5155.31 of the Revised Code,oran increase of beds in an existing county home or existingcountynursing home, if the beds are proposed to be certified asskillednursing facility beds under Title XVIII or nursingfacility bedsunder Title XIX of the"Social Security Act," 49Stat. 620 (1935),42 U.S.C.A. 301, as amended;

(c) Recategorization of hospital beds as described insection 3702.522 of the Revised Code, anincrease of hospital bedsregistered pursuant to section 3701.07of the Revised Code aslong-term care beds or skilled nursingfacility beds, or arecategorization of hospital beds that wouldresult in an increaseof beds registered pursuant to that sectionas long-term care bedsor skilled nursing facility beds.

On July 1, 1993, the director shallreturn each suchapplication to the applicant and,notwithstanding section 3702.52of the Revised Code regarding theuses of the certificate of needfund, shall refund to theapplicant the application fee paid underthat section. Applications returned under division (B)(1) of thissection maybe resubmitted in accordance with section 3702.52 ofthe RevisedCode no sooner thanJuly 1, ~~2005~~ 2007.

(2) The director shall continue to review and shall issueadecision regarding any application submitted prior to July 1,1993, toincrease beds for either of thepurposes described indivision (B)(1)(a) or (b) of this sectionif the proposed increasein beds is attributable solely to areplacement or relocation ofexisting beds within the samecounty. The director shallauthorize under such an applicationno additional beds beyondthose being replaced or relocated.

(C)(1) Except as provided in division (C)(2) of thissection, the director, during the period beginning July 1, 1993,and endingJune 30, ~~2005~~ 2007, shall not accept forreview undersection3702.52 of the Revised Code any applicationfor acertificate ofneed for any of the purposes described indivisions(B)(1)(a) to(c) of this section.

(2)(a) The director shall accept for review any applicationforeither of the purposes described in division (B)(1)(a) or (b)ofthis section if the proposed increase in beds isattributablesolely to a replacement or relocation of existingbeds from an existing health care facility within thesame county.The director shall authorize undersuch anapplication noadditional beds beyond those being replaced orrelocated.~~The~~

The director shall not approve an application for a certificate of need for addition of long-term care beds to an existing health care facility by relocation of beds or for the development of a new health care facility by relocation of beds unless all of the following conditions are met:

(i) The existing health care facility to which the beds are being relocated has no life safety code waivers, no state fire code violations, and no state building code violations;

(ii) During the sixty month period preceding the filing of the application, no notice of proposed revocation of the facility's license was issued under section 3721.03 of the Revised Code to the operator of the existing facility to which the beds are being relocated or to any health care facility owned or operated by the applicant or any principal participant in the same corporation or other business;

(iii) Neither the existing health care facility to which the beds are being relocated nor any health care facility owned or operated by the applicant or any principal participant in the same corporation or other business has had a long-standing pattern of violations of this chapter or deficiencies that caused one or more residents physical, emotional, mental, or psychosocial harm.

(b) The director also shall accept for review anyapplication ~~thatseeks certificate of need approval~~ for ~~existing~~ the conversion of infirmarybeds ~~located in an~~ to long-term care beds if the infirmary~~that is~~ meets all of the following conditions:

(ii) Provides care exclusively tomembers of religiousorders who take vows of celibacy and live by virtue oftheir vowswithin the orders as if related~~, and was~~;

(iii) Was providing careexclusivelyto members of such a religious order on January 1,1994.

(D) The director shall issue a decision regarding any caseremanded byacourt as the result of a decision issued by thedirector prior toJuly 1, 1993, to grant, deny, or withdraw acertificate of need for any of the purposes described indivisions(B)(1)(a) to (c) of this section.

(E) The director shall not project the need for bedslistedin division (B)(1) of this section for the periodbeginning July1, 1993, and endingJune 30, ~~2005~~ 2007.

(A)"Primary care physician" means an individual who isauthorized underChapter 4731. of the Revised Code to practicemedicine and surgery orosteopathic medicine and surgery and isboard certified or board eligible in aprimary care specialty.

(B)"Primary care service" means professionalcomprehensivepersonal health services, which may include healtheducation anddisease prevention, treatment of uncomplicatedhealth problems,diagnosis of chronic health problems, ~~and~~overall management ofhealth care services for an individual or afamily, and the services of a psychiatrist."Primary careservice" also includes providing theinitial contact for healthcare services and making referrals forsecondary and tertiary careand for continuity of health careservices.

(C)"Primary care specialty" means general internalmedicine, pediatrics,obstetrics and gynecology, psychiatry, or familypractice.

Sec. 3702.74. (A) A primary care physician who has signed aletter of intent under section 3702.73 of the Revised Code, thedirector of health, and the Ohio board ofregents may enter into acontract for the physician's participation in thephysician loanrepayment program. A lending institution may also be a partytothe contract.

(1) The primary care physician agrees to provide primarycare services in thehealth resource shortage area identified inthe letter of intent for at leasttwo years or oneyear per twentythousand dollars of repayment agreed to underdivision (B)(3) ofthis section, whichever is greater;

(2) When providing primary care services in the healthresource shortagearea, the primary care physician agrees to doall of thefollowing:

(c) Meet the conditions prescribed by the"Social SecurityAct," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as amended, and thedepartment of job and family services for participation inthemedicalassistance program established under Chapter 5111. of theRevisedCode and enter into a contract with the department toprovideprimary care services to recipients of the medicalassistanceprogram;

(d) Meet the conditions established by the department ofjoband family services for participation in the disability medical assistanceprogram established under Chapter 5115. of theRevised Codeand enter into a contract with the department toprovide primarycare services to recipients of disabilitymedical assistance.

(3) The Ohio board of regents agrees, asprovided in section3702.75 ofthe Revised Code, to repay, so long as the primary carephysician performs theservice obligation agreed to under division(B)(1) of this section, all orpart of the principal and interestof a government or other educational loantaken by the primarycare physician for expenses described in section 3702.75of theRevised Code;

(4) The primary care physician agrees to pay theboard thefollowing asdamages if the physician fails to complete theservice obligation agreed tounder division (B)(1) of thissection:

(a) If the failure occurs during the first two years oftheservice obligation, three times the total amount theboard hasagreed to repay under division (B)(3) ofthis section;

(b) If the failure occurs after the first two years of theservice obligation, three times the amount the boardis stillobligated to repay under division (B)(3) of thissection.

(C) The contract may include any other terms agreed upon bythe parties,including an assignment to the Ohio board ofregentsof the physician'sduty to pay the principal and interest of agovernment or other educationalloan taken by the physician forexpenses described in section 3702.75 of theRevised Code. If theboard assumes the physician'sduty to pay a loan,the contractshall set forth the total amount of principal and interest to bepaid, an amortization schedule, and the amount of each payment tobe madeunder the schedule.

Sec. 3702.83. The department of health shall administer a program, to be known as the J-1 visa waiver program, for recruiting physicians who received graduate medical education or training in the United States but are not citizens of the United States to serve in areas of the state designated by the United States secretary of health and human services as health professional shortage areas under the "Public Health Service Act," 88 Stat. 682 (1944), 42 U.S.C. 254(e), as amended. Under the program, the department of health shall accept and review applications for placement of persons seeking to remain in the United States pursuant to the "Immigration and Nationality Act," 66 Stat. 163 (1952), 8 U.S.C. 1182(J)(1) and 1184(l), as amended, by obtaining a waiver of the federal requirement that they return to their home countries for a minimum of two years after completing the graduate medical education or training for which they were admitted to the United States. The department shall administer the program in accordance with the "Immigration and Nationality Act" and the regulations adopted under it.

For each application accepted for review under this section, the department shall charge a fee of three thousand five hundred seventy-one dollars. The fee is nonrefundable. All fees collected shall be deposited into the state treasury to the credit of general operations fund created in section 3701.83 of the Revised Code.

Sec. 3703.01. (A) The division of industrial compliance in thedepartmentof commerce shall:

(1) Inspect allnonresidential buildings within the meaningof section3781.06 of the Revised Code;

(2) Condemn all unsanitary or defective plumbing that isfound in connection with those places;

(3) Order changes in plumbing necessary toinsure the safety of the public health.

(B)(1) The division of industrial compliance andboards of health ofcity and generalhealth districts shall not inspect plumbing orcollect fees forinspecting plumbing in particular types ofbuildings in anymunicipal corporation that has been certified bythe boardofbuilding standards under section 3781.10 of theRevised Code toexercise enforcement authority for plumbing insuch types ofbuildings.

(2) The division shall not inspect plumbing or collectfeesforinspecting plumbing in particular types of buildings in anyhealthdistrict that has employed one or more approvedplumbinginspectors to enforce Chapters 3781. and 3791. of the RevisedCodeand therules adopted pursuant to those chapters relating toplumbing in such types of buildings.

(3) A municipal corporation does not have jurisdiction toinspectplumbing or collect fees for the inspection of plumbingin typesof buildings for which it has not been certified by theboard ofbuilding standards under section 3781.10 of the RevisedCode toexercise enforcement authority.

(4) A board of health of a health district does nothavejurisdiction to inspect plumbing or collect fees for theinspection of plumbing in types of buildings for which it doesnothave an approved plumbing inspector.

(C) The superintendent of industrial complianceshall adoptrulesprescribing minimum qualifications based on education, training,experience, or demonstrated ability, which the ~~director~~ superintendentshall usein ~~approving~~ certifying or recertifying plumbing inspectors to do plumbinginspections forhealth districts and for continuing education of plumbing inspectors. Such minimum qualificationsshall be related tothe types of buildings for which a personseeks approval.

(D) The superintendent may enter into reciprocal registration, licensure, or certification agreements with other states and other agencies of this state relative to plumbing inspectors if both of the following apply:

(1) The requirements for registration, licensure, or certification of plumbing inspectors under the laws of the other state or laws administered by the other agency are substantially equal to the requirements the superintendent adopts under division (C) of this section for certifying plumbing inspectors.

(2) The other state or agency extends similar reciprocity to persons certified under this chapter.

(E) The superintendent may select and contract with one or more persons to do all of the following regarding examinations for certification of plumbing inspectors:

(1) Prepare, administer, score, and maintain the confidentiality of the examination;

(2) Maintain responsibility for all expenses required to comply with division (E)(1) of this section;

(3) Charge each applicant a fee for administering the examination in an amount the superintendent authorizes;

(4) Design the examination for certification of plumbing inspectors to determine an applicant's competence to inspect plumbing.

(F) Standards and methods prescribed in local plumbingregulations shall not be less than those prescribed in Chapters3781. and 3791. of the Revised Code and the rules adopted pursuant to those chapters.

~~(E)~~(G) Notwithstanding any other provision of this section, thedivision shall make a plumbing inspection of anybuilding or otherplace that there is reason to believe is in a condition tobe a menace to the public health.

Sec. 3703.03. In the administration of sections 3703.01 to 3703.09 of theRevised Code, the division of industrial compliance ~~in the departmentof commerce~~shall enforce rulesgoverning plumbing adopted by the board of buildingstandardsunder authority of sections 3781.10 and 3781.11 of the Revised Code, andregister those persons engaged in or at the plumbing business.

Plans and specifications for all plumbing to be installed in or for buildingscoming within such sections shall be submitted to and approved by thedivision before the contract for plumbing is let.

Sec. 3703.04. The~~director~~ superintendent of ~~commerce~~ industrial compliance shall appoint suchnumber of plumbinginspectors as is required. The inspectors shall be practicalplumbers withat least seven years' experience, and skilled and well-trained in matterspertaining to sanitary regulations concerning plumbing work.

No plumbing inspector employed by the department and assigned to theenforcement of this chaptershall be engaged or interested in the plumbing business or the sale of anyplumbing supplies, nor shall the inspector act as agent,directly or indirectly, for anyperson so engaged.

Sec. 3703.05. Plumbing inspectors employed by the ~~department~~ division of~~commerce~~ industrial compliance assigned to the enforcement of sections 3703.01 to 3703.09 of theRevised Code, may, between sunrise and sunset, enter any building where thereis good and sufficient reason to believe that the sanitary condition ofthe premises endangers the publichealth, for the purpose of makingan inspection to ascertain the condition ofthe premises.

Sec. 3703.06. When any building is found to be in a sanitary condition orwhen changes which are ordered, under authority of this chapter, in theplumbing,drainage, orventilation have been made, and after a thorough inspection and approval bythe ~~division~~ superintendent of industrial compliance ~~in the department of commerce~~,the ~~division~~ superintendent shall issuea certificate ~~signed by the superintendent ofthe division of industrial compliance~~, which ~~must~~ shall beposted in a conspicuous place for the benefit of the public atlarge. Upon notification by the superintendent, thecertificate shallbe revokedfor any violation of those sections.

Sec. 3703.07. No plumbing work shall be done in anybuilding or place coming within the jurisdiction of the~~department~~ division of ~~commerce~~ industrial compliance, except in cases of repairs or leaks inexisting plumbing, until a permit has been issued by the~~department~~ division.

Before granting such permit, an application shall be madeby the owner of the property or by the person, firm, orcorporation which is to do the work. The application shall bemade on a form prepared by the ~~department~~ division for the purpose, andeach application shall be accompanied by a fee of twenty-sevendollars, and an additional fee of seven dollars for each trap,vented fixture, appliance, or device. Each application also shallbe accompanied by a plan approval fee of eighteen dollarsfor work containing one through twenty fixtures; thirty-sixdollars for work containing twenty-one through forty fixtures;and fifty-four dollars for work containing forty-one or morefixtures.

Whenever a reinspection is made necessary by the failure ofthe applicant or plumbing contractor to have the work ready forinspection when so reported, or by reason of faulty or improperinstallation, the person shall pay a fee of forty-five dollarsfor each reinspection.

All fees collected pursuant to this section shall be paid into the statetreasury to the credit of the industrial compliance operating fund created insection 121.084 of the Revised Code.

The ~~director~~ superintendent of ~~commerce~~ industrial compliance, by ruleadopted in accordance with Chapter 119. of the Revised Code, mayincrease the fees required by this section and may establish fees to pay the costs of the division to fulfill its duties established by this chapter, including, but not limited to, fees for administering a program for continuing education for, and certifying and recertifying plumbing inspectors. The fees shall bear some reasonable relationship to the cost of administering and enforcing the provisions of this chapter.

Sec. 3703.08. Any owner, agent, or manager, of a building in which aninspection is made by the ~~department~~ division of~~commerce~~ industrial compliance, a board of health of a health district, or a certifieddepartment of building inspection of a municipal corporation, shallhave the entire system of drainage and ventilation repaired, as the~~department of commerce~~ division, board of health, ordepartment of building inspection directs by its order. After duenotice to repair such work is given, theowner, agent, or manager shall notify the publicauthority that issued the order when the work is readyfor its inspection. No person shall fail to have the work ready forinspection at the time specified in the notice.

Sec. 3703.10. All prosecutions and proceedings by the ~~department~~ division of~~commerce~~ industrial compliance for the violation of sections 3703.01 to 3703.09of the Revised Code, or for theviolation of any of the orders or rules of the ~~department~~ division under those sections, shall be institutedby the ~~director~~ superintendent of ~~commerce~~ industrial compliance. All fines or judgments collected by the~~department~~ division shall be paid into the state treasury to the credit of the industrial compliance operating fund created by section 121.084 of the RevisedCode.

The ~~director~~ superintendent, the board of health of a general or city health district, orany person charged with enforcing the rules of the ~~department~~ division adopted under sections 3703.01 to 3703.09 of the Revised Code may petition thecourt of common pleas for injunctive or other appropriate relief requiring anyperson violating a rule adopted or order issued by the ~~director~~ superintendent under those sections to comply with the rule or order. The court of common pleas of thecounty in which the offense is alleged to be occurringmay grant injunctive orother appropriate relief.

(D) Examine the records and books of any certified plumbing inspector if the superintendent finds the material to be examined relevant to a determination described in division (A), (B), or (C) of this section.

Sec. 3703.99. Whoever violates sections 3703.01 to 3703.09 of the RevisedCode, or any rule the~~department~~ division of ~~commerce~~ industrial compliance isrequired to enforce under such sections, shall be fined not less than ten normore than one hundred dollars or imprisoned for not less than ten nor morethan ninety days, or both. No person shall be imprisoned under thissectionfor the first offense, and the prosecution always shall be as fora firstoffense unless the affidavit upon which the prosecution is instituted containsthe allegation that the offense is a second or repeated offense.

Sec. 3704.035. There is hereby created in the statetreasury the clean air fund. Except as otherwise provided indivision (K) of section 3745.11 of the Revised Code, all moneyscollected under divisions (C), (D), (F), (G), (H), (I), and (J)of that section and under section 3745.111 of the Revised Code,and any gifts, grants, or contributions received by the directorof environmental protection for the purposes of the fund, shallbe credited to the fund. The director shall expend moneys fromthe fund exclusively to pay the cost of administering andenforcing the laws of this state pertaining to the prevention,control, and abatement of air pollution and rules adopted andterms and conditions of permits, variances, and orders issuedunder those laws, except that the director shall not expendmoneys credited to the fund for the administration andenforcement of motor vehicle inspection and maintenance programsand requirements under sections 3704.14, 3704.141, 3704.16,3704.161, and 3704.162~~, and 3704.17~~ of the Revised Code.

Specifically, the director shall expend all moneys creditedto the fund from fees assessed under section 3745.11 of theRevised Code pursuant to the Title V permit program establishedunder section 3704.036 of the Revised Code, and from any gifts,grants, or contributions received for the purposes of thatprogram, solely to administer and enforce that program pursuantto the federal Clean Air Act, this chapter, and rules adoptedunder it, except as costs relating to enforcement are limited bythe federal Clean Air Act. The director shall establish separateand distinct accounting for all such moneys.

The director shall report biennially to the generalassembly the amounts of fees and other moneys credited to thefund under this section and the amounts expended from it for eachof the various air pollution control programs.

Sec. 3704.14. (A) The director of environmental protection shall continue to implement an enhanced motor vehicle inspection and maintenance program for a period of two years beginning on January 1, 2006, and ending on December 31, 2007, in counties in which a motor vehicle inspection and maintenance program is federally mandated. The program shall be substantially similar to the enhanced program implemented in those counties under a contract that is scheduled to expire on December 31, 2005. The program, at a minimum, shall do all of the following:

(2) Provide for the extension of a contract for a period of two years, beginning on January 1, 2006, and ending on December 31, 2007, with the contractor who conducted the enhanced motor vehicle inspection and maintenance program in those federally mandated counties pursuant to a contract entered into under former section 3704.14 of the Revised Code as that section existed prior to its repeal and reenactment by Am. Sub. H.B. 66 of the 126th General Assembly;

(4) Provide for a new car exemption for motor vehicles four years old or newer and provide that a new motor vehicle is exempt for four years regardless of whether legal title to the motor vehicle is transferred during that period.

(B) The director shall not implement a motor vehicle inspection and maintenance program in any county other than a county in which a motor vehicle inspection and maintenance program is federally mandated.

(C) The director shall adopt rules in accordance with Chapter 119. of the Revised Code that the director determines are necessary to implement this section. The director may continue to implement and enforce rules pertaining to the enhanced motor vehicle inspection and maintenance program previously implemented under former section 3704.14 of the Revised Code as that section existed prior to its repeal and reenactment by Am. Sub. H.B. 66 of the 126th general assembly, provided that the rules do not conflict with this section.

(D) There is hereby created in the state treasury the motor vehicle inspection and maintenance fund, which shall consist of money received by the director from any fees for inspections that are established in rules adopted under this section. The director shall use money in the fund solely for the implementation, supervision, administration, operation, and enforcement of the enhanced motor vehicle inspection and maintenance program established under this section.

(E) The enhanced motor vehicle inspection and maintenance program established under this section expires on December 31, 2007, and shall not be continued beyond that date unless otherwise federally mandated.

Sec. 3704.143. (A) As used in this section, "contract"meansa contract entered into by the state under former section 3704.14of theRevised Code, as that section existed prior to its repeal and reenactment by Am. Sub. H.B. 66 of the 126th General Assembly, with a private contractor for the purpose ofconducting emissions inspections under a motor vehicle inspectionand maintenance program.

(B) ~~Notwithstanding division (D)(5) of~~ Except as authorized in section 3704.14 ofthe Revised Code, ~~the director of administrative services or~~ as that section was reenacted by Am. Sub. H.B. 66 of the 126th General Assembly, the directorof environmental protection~~, as applicable,~~ shall notrenew anycontract that is in existence onSeptember 5, 2001. Further, except as authorized in that section, the director ~~of administrative services orthedirector of environmental protection, as applicable,~~ shall notenter into a new contract upon the expiration or termination ofany contract that is in existence onSeptember 5, 2001, or enter into any new contract for the implementation of a motor vehicle inspection and maintenance program in a county in which such a program is not operating on that date.

(C) ~~Notwithstanding~~ Except as authorized in section 3704.14 of the Revised Code ~~orany other section of the Revised Code that requires emissionsinspections to be conducted or proof of such inspections to beprovided~~, as that section was reenacted by Am. Sub. H.B. 66 of the 126th General Assembly, upon the expiration or termination of all contracts thatare in existence onSeptember 5, 2001, thedirector of environmental protection shall terminate all motorvehicle inspection and maintenance programs in this state andshall not implement a new motor vehicle inspection and maintenanceprogram unless ~~this section is repealed and~~ such a program isauthorized by the general assembly.

(D) ~~Notwithstanding section 3704.14 of the Revised Code or any other section of the Revised Code that requires emissions inspections to be conducted or proof of such inspections to be provided, if~~ If the general assembly authorizes any program for the inspection of motor vehicle emissions under division (C) of this section after all contracts for a motor vehicle inspection and maintenance program that are in existence on September 5, 2001, terminate or expire, a motor vehicle, the legal title to which has never been transferred by a manufacturer, distributor, or dealer to an ultimate purchaser as defined in section 4517.01 of the Revised Code, shall be exempt from any emissions inspections that are required under such a program for a period of ~~five~~ not less than four years commencing on the date when the first certificate of title to the vehicle was issued on behalf of the ultimate purchaser under Chapter 4503. of the Revised Code. A motor vehicle that is exempt from any emissions inspections ~~for a period of five years~~ under this division shall remain exempt during that ~~five-year~~ period regardless of whether legal title to the motor vehicle is transferred during that period.

Sec. 3704.144. Gifts, grants, and contributions for the purpose of adding pollution control equipment to diesel-powered school buses, including contributions that are made pursuant to the settlement of an administrative action or civil action that is brought at the request of the director of environmental protection pursuant to Chapter 3704., 3714., 3734., 6109., or 6111. of the Revised Code, shall be credited to the clean diesel school bus fund, which is hereby created in the state treasury. The director shall use money credited to the fund to make grants to school districts in the state for the purpose of adding pollution control equipment to diesel-powered school buses and to pay the environmental protection agency's costs incurred in administering this section. In addition, the director may use money credited to the fund to make grants to school districts for the purpose of maintaining pollution control equipment that is installed on diesel-powered school buses and to pay the additional cost incurred by a school district for using ultra-low sulfur diesel fuel instead of diesel fuel for the operation of diesel-powered school buses.

In making grants under this section, the director shall give priority to school districts that are located in a county that is designated as nonattainment by the United States environmental protection agency for the fine particulate national ambient air quality standard under the federal Clean Air Act. In addition, the director may give a higher priority to a school district that employs additional measures that reduce air pollution from the district's school bus fleet.

The director shall adopt rules establishing procedures and requirements that are necessary to implement this section, including procedures and requirements governing applications for grants.

Sec. 3704.99. (A) Whoever recklessly violates division(A), (B), (C), (D), (E), (F), (G), or (I) of section 3704.05 or division(B)(5) of section 3704.16 ofthe Revised Code shall be fined not more than twenty-fivethousand dollars or imprisoned not more than one year, or both,for each violation. Each day the violation continues after aconviction for a violation is a separate offense.

(B) Whoever knowingly violates division (H), (J), or (K)of section 3704.05 of the Revised Code shall be fined not morethan ten thousand dollars for each day of each such violation.

(C) Whoever violates section 3704.15 ~~or division (B)(1) or(2) or (C)(1) or (2) of section 3704.17~~ of the Revised Code isguilty of a misdemeanor of the first degree.

(D) Whoever violates division (B)(2) or knowingly violatesdivision (C)(1) of section 3704.16 of the Revised Code is guiltyof a minor misdemeanor.

(E) Whoever violates division (B)(1) or (3) or knowinglyviolates division (C)(2) or (3) of section 3704.16 of the RevisedCode shall be fined not less than five hundred nor more thantwenty-five hundred dollars for each day of each violation.

(F) Whoever recklessly violates division (B)(4) of section 3704.16 of theRevised Code shall be fined not more than twenty-five thousand dollars orimprisoned not more than one year, or both, for each violation. Each day theviolation continues after a conviction for a violation is a separate offense.

(G) The sentencing court, in addition to the penaltyprovided in divisions (D), (E), and (F) of this section, shallorder the offender to restore within thirty days any emissioncontrol system that was tampered with in connection with theviolation or to provide proof that the motor vehicle whoseemission control system was tampered with has been dismantled ordestroyed. The court may extend that deadline for good causeshown. If the offender does not take the corrective actionordered under this division, each day that the violationcontinues is a separate offense. Violation of a court orderentered under this division is punishable as contempt underChapter 2705. of the Revised Code.

Sec. 3705.24. (A)(1) The public health council shall, in accordance with section 111.15 of the Revised Code, adopt rules prescribing fees for the following services provided by the state office of vital statistics:

(ii) A search by the office of vital statistics of its files and records pursuant to a request for information, regardless of whether a copy of a record is provided;

(b) Replacement of a birth certificate following an adoption, legitimation, paternity determination or acknowledgement, or court order;

(d) Amendment of a vital record that is requested later than one year after the filing date of the vital record;

(e) Any other documents or services for which the public health council considers the charging of a fee appropriate.

(2) Fees prescribed under division (A)(1)(a) of this section shall not be less than seven dollars.

(3) Fees prescribed under division (A)(1) of this section shall be collected in addition to any ~~fee~~ fees required by ~~section~~ sections 3109.14 and 3705.242 of the Revised Code.

(4) Fees prescribed under division (A) of this section shall not apply to certifications issued under division (H) of this section or copies provided under section 3705.241 of the Revised Code.

(B) In addition to the fees prescribed under division (A) of this section or section 3709.09 of the Revised Code, the office of vital statistics or the board of health of a city or general health district shall charge a five-dollar fee for each certified copy of a vital record and each certification of birth. This fee shall be deposited in the general operations fund created under section 3701.83 of the Revised Code and be used solely toward the modernization and automation of the system of vital records in this state. A board of health shall forward all fees collected under this division to the department of health not later than thirty days after the end of each calendar quarter.

(C) Except as otherwise provided in division (H) ofthis section, and except as provided in section 3705.241of the Revised Code, fees collected by the director of health undersections 3705.01 to 3705.29 of the Revised Code shall be paidinto the state treasury to the credit of the general operations fundcreated by section 3701.83 of the Revised Code. Except as provided in division (B) of this section, money generated by the fees shall be used only for administration andenforcement of this chapter and the rules adopted under it. Amounts submitted to thedepartment of health for copies of vital records or services in excess of thefees imposed by this section shall be dealt with as follows:

(1) An overpayment of two dollars or less shall beretained by the department and deposited in the state treasury to thecredit of the general operations fund created by section 3701.83 of theRevised Code.

(2) An overpayment in excess of two dollars shall bereturned to the person who made the overpayment.

(D) If a local registrar is a salaried employee of a cityor a general health district, any fees the local registrarreceives pursuant to section 3705.23 of the Revised Code shall be paid intothe general fund of the city or the health fund of the general healthdistrict.

Each local registrar of vital statistics, or each healthdistrict where the local registrar is a salaried employee of thedistrict, shall be entitled to a fee for each birth, fetal death,death, or military service certificate properly and completelymade out and registered with the local registrar or district andcorrectly copied andforwarded to the office of vital statistics in accordance withthe population of the primary registration district at the lastfederal census. The fee for each birth, fetal death, death, ormilitary service certificate shall be:

(1) In primary registration districts of over two hundredfifty thousand, twenty cents;

(2) In primary registration districts of over one hundredtwenty-five thousand and less than two hundred fifty thousand,sixty cents;

(3) In primary registration districts of over fiftythousand and less than one hundred twenty-five thousand, eightycents;

(E) The director of health shall annually certify to thecounty treasurers of the several counties the number of birth, fetal death, death, and military service certificates registeredfrom their respective counties with the names of the localregistrars and the amounts due each registrar and health districtat the rates fixed in this section. Such amounts shall be paidby the treasurer of the county in which the registrationdistricts are located. No fees shall be charged or collected byregistrars except as provided by this chapter and section 3109.14of the Revised Code.

(F) A probate judge shall be paid a fee of fifteen centsfor each certified abstract of marriage prepared and forwarded bythe probate judge to the department of health pursuant to section 3705.21 ofthe Revised Code. The fee shall be in addition to the fee paidfor a marriage license and shall be paid by the applicants forthe license.

(G) The clerk of a court of common pleas shall be paid afee of one dollar for each certificate of divorce, dissolution,and annulment of marriage prepared and forwarded by the clerk to thedepartment pursuant to section 3705.21 of the Revised Code. Thefee for the certified abstract of divorce, dissolution, orannulment of marriage shall be added to the court costs allowedin these cases.

(H) The fee for an heirloom certification of birth issuedpursuant todivision (B)(2) of section 3705.23 of the RevisedCode shall be an amount prescribed by rule by thedirector of health plus any fee required by section 3109.14 of theRevised Code. In setting the amount of the fee, the director shallestablish a surcharge in addition to an amount necessary to offset the expenseof processing heirloom certifications of birth. The fee prescribedby the director of healthpursuant to this division shall be depositedintothe state treasury to the credit of the heirloom certification of birth fundwhich is hereby created. Money credited to the fund shall be used by theoffice of vital statistics to offset the expense of processing heirloomcertifications of birth. However, the money collected for the surcharge,subject to the approval of the controlling board, shall be used for thepurposes specified by the family and children first council pursuant tosection 121.37 of the Revised Code.

Sec. 3705.242. (A)(1) The director of health, a person authorized by the director, a local commissioner of health, or a local registrar of vital statistics shall charge and collect a fee of one dollar and fifty cents for each certified copy of a birth record, each certification of birth, and each copy of a death record. The fee is in addition to the fee imposed by section 3705.24 or any other section of the Revised Code. A local commissioner of health or local registrar of vital statistics may retain an amount of each additional fee collected, not to exceed three per cent of the amount of the additional fee, to be used for costs directly related to the collection of the fee and the forwarding of the fee to the treasurer of state.

(2) On the filing of a divorce decree under section 3105.10 or a decree of dissolution under section 3105.65 of the Revised Code, a court of common pleas shall charge and collect a fee of five dollars and fifty cents. The fee is in addition to any other court costs or fees. The county clerk of courts may retain an amount of each additional fee collected, not to exceed three per cent of the amount of the additional fee, to be used for costs directly related to the collection of the fee and the forwarding of the fee to the treasurer of state.

(B) The additional fees collected, but not retained, under this section during each month shall be forwarded not later than the tenth day of the immediately following month to the treasurer of state, who shall deposit the fees in the state treasury to the credit of the family violence prevention fund, which is hereby created. A person or government entity that fails to forward the fees in a timely manner, as determined by the treasurer of state, shall forward to the treasurer of state, in addition to the fees, a penalty equal to ten per cent of the fees.

The treasurer of state shall invest the moneys in the fund. All earnings resulting from investment of the fund shall be credited to the fund, except that actual administration costs incurred by the treasurer of state in administering the fund may be deducted from the earnings resulting from investments. The amount that may be deducted shall not exceed three per cent of the total amount of fees credited to the fund in each fiscal year. The balance of the investment earnings shall be credited to the fund.

(C) The director of public safety shall use money credited to the fund to provide grants to family violence shelters in Ohio.

Sec. 3712.03. (A) In accordance with Chapter 119. of theRevised Code, the public health council shall adopt, and mayamend and rescind, rules:

(1) Providing for the licensing of persons or publicagencies providing hospice care programs within this state by thedepartment of health and for the suspension and revocation oflicenses;

(2) Establishing a license fee and license renewal fee notto exceed three hundred dollars. The fees shall cover thethree-year period during which an existing license is valid asprovided in division (B) of section 3712.04 of the Revised Code.

(3) Establishing an inspection fee not to exceed one thousand seven hundred fifty dollars;

~~(4)~~(5) Providing for a waiver of the requirement for theprovision of physical, occupational, or speech or languagetherapy contained in division (A)(2) of section 3712.01 of theRevised Code when the requirement would create a hardship becausesuch therapy is not readily available in the geographic areaserved by the provider of a hospice care program;

~~(5)~~(6) Providing for the granting of licenses to providehospice care programs to persons and public agencies that areaccredited or certified to provide such programs by an entitywhose standards for accreditation or certification equal orexceed those provided for licensure under this chapter and rulesadopted under it; and

(B) Subject to the approval of the controlling board, thepublic health council may establish fees in excess of the amountsprovided by sections 3712.01 and 3712.03 to 3712.06 of the Revised Code,provided that the fees do not exceed those amounts by greaterthan fifty per cent.

(1) Grant, suspend, and revoke licenses for hospice careprograms in accordance with this chapter and rules adopted underit;

(2) Make such inspections as are necessary to determinewhether hospice care program facilities and services meet therequirements of this chapter and rules adopted under it; and

Sec. 3714.07. (A)(1) For the purpose of assisting boards ofhealthand the environmental protection agency in administeringand enforcing thischapter and rules adopted under it, there ishereby levied on the disposal ofconstruction and demolitiondebris at a construction and demolition debris facility that is licensed under this chapter or at a solid waste facility that is licensed under Chapter 3734. of the Revised Code afee of thirty cents per cubic yard orsixty cents perton,asapplicable.

(2) The owner or operator of a construction and demolition debris facility or a solid waste facility shalldetermineif cubic yards or tons will be used as the unit ofmeasurement. In estimating the fee based on cubic yards, the owner oroperator shallutilize eitherthe maximum cubic yard capacity of the container, or thehauling volume of thevehicle, that transports the constructionand demolition debris to the facility or the cubic yards actually logged for disposal by the owner or operator in accordance with rules adopted under section 3714.02 of the Revised Code. If basing the fee ontonnage, the owner or operator shall use certified scales todetermine the tonnage of construction and demolition debris thatis transported to the facility for disposal.

(3) The owner or operator of a construction and demolition debrisfacilityor a solid waste facility shall collect the fee levied under division (A) of this section as atrustee for the healthdistrict having jurisdiction over thefacility, if that district is on theapproved list under section3714.09 of the Revised Code, orfor the state. The owner oroperator shall prepare and file with theappropriate board ofhealth or the director of environmental protectionmonthly returnsindicating the total volume or weight, as applicable, of construction and demolitiondebrisreceived for disposal at the facility and the total amount ofmoneyrequired to be collected on the construction and demolitiondebris disposed ofduring that month. Not later than thirty daysafter the last day of the month to which the return applies, theowner oroperator shall mail to the board of health or thedirector the return for thatmonth together with the moneyrequired to be collected on the constructionand demolition debrisdisposed of during that month. The owner oroperator may request,in writing, an extension of not more than thirty daysafter thelast day of the month to which the return applies. A request forextension may be denied. If the owner or operator submits themoney late, the owner or operator shall pay a penalty often per centof the amount of the money due for eachmonth that it is late.

(4) Of the money that is collected from a construction anddemolition debris facility or a solid waste facility on a per cubic yard or per ton basisunderthis section, a board of health shall transmit three cents percubicyard or six cents per ton, as applicable, to the directornotlater than forty-five days after the receipt of the money.The money retained by a board of healthunder thissection shallbe paid into a special fund, which is hereby created in eachhealth district, and used solely to administer and enforce thischapter and rules adopted under it.

The director shall transmit all money received from theboards of health of health districts under this section and allmoney from the disposal fee collected by the director under thissection tothe treasurer of state to be credited to theconstruction anddemolition debris facility oversight fund, whichis herebycreated in the state treasury. Thefund shall beadministered by thedirector, and money credited to the fundshall be usedexclusively for the administration and enforcementof thischapter and rules adopted under it.

(B) The board of health ofa health district or the directormay enter into an agreement with the owneroroperator of aconstruction and demolition debris facilityor a solid waste facility forthe quarterlypayment of the money collected from the disposalfee. The boardof health shall notify the director of any such agreement. Notlater than forty-five days after receipt of the quarterly payment,the board of health shall transmit the amount established in division (A)~~(5)~~(4) of this section to the director. Themoneyretained by the board of health shall be deposited in thespecialfund of the district as required under that division. Upon receipt of the money from a board ofhealth, thedirector shall transmit the money to the treasurerof state tobe credited to the construction and demolition debrisfacilityoversight fund.

(C) If a construction and demolition debris facility or a solid waste facility islocatedwithinthe territorial boundaries of a municipalcorporation or theunincorporated area of a township, themunicipal corporation or townshipmay appropriate up to fourcentsper cubic yard or up to eight centsper ton of the disposalfeerequired to be paid by the facility under division(A)of thissection for the same purposes that a municipal corporation ortownship may levy a fee under division (C) of section3734.57 ofthe Revised Code.

The legislative authority of the municipal corporation ortownship may appropriate the money from the fee byenacting anordinance or adopting a resolution establishing the amountof the fee to beappropriated. Upon doing so, thelegislative authority shall maila certified copy of theordinance or resolution to the board ofhealth of the healthdistrict in which the construction anddemolition debrisfacility or the solid waste facility is located or, if the facility islocated in a healthdistrict that is not on the approved listunder section3714.09 of the RevisedCode, to the director. Uponreceipt of the copy of the ordinance or resolution and not laterthan forty-five days after receipt of money collected from thefee,the board or the director, as applicable, shalltransmit tothe treasurer or other appropriate officer of the municipalcorporation or clerk of the township that portion of the moneycollected from the disposal fee by the owner or operator of thefacility that isrequired by the ordinance or resolution to be paid tothatmunicipal corporation or township.

Money received by the treasurer or other appropriate officerofa municipal corporation under this division shall be paid intothe general fund of the municipal corporation. Money receivedbythe clerk of a township under this division shall be paidinto thegeneral fund of the township. The treasurer orother officer ofthe municipal corporation or the clerk of thetownship, asappropriate, shall maintain separate records of themoneyreceived under this division.

The legislative authority of a municipal corporation ortownship may cease collecting money under this division byrepealing the ordinance or resolution that was enacted or adoptedunderthis division.

(D) The board of county commissioners of a county in which a construction and demolition debris facility or a solid waste facility is located may appropriate up to three cents per cubic yard or up to six cents per ton of the disposal fee required to be paid by the facility under division (A) of this section for the same purposes that a solid waste management district may levy a fee under division (B) of section 3734.57 of the Revised Code.

The board of county commissioners may appropriate the money from the fee by adopting a resolution establishing the amount of the fee to be appropriated. Upon doing so, the board of county commissioners shall mail a certified copy of the resolution to the board of health of the health district in which the construction and demolition debris facility or the solid waste facility is located or, if the facility is located in a health district that is not on the approved list under section 3714.09 of the Revised Code, to the director. Upon receipt of the copy of the resolution and not later than forty-five days after receipt of money collected from the fee, the board of health or the director, as applicable, shall transmit to the treasurer of the county that portion of the money collected from the disposal fee by the owner or operator of the facility that is required by the resolution to be paid to that county.

Money received by a county treasurer under this division shall be paid into the general fund of the county. The county treasurer shall maintain separate records of the money received under this division.

A board of county commissioners may cease collecting money under this division by repealing the resolution that was adopted under this division.

(E)(1) This section does not apply to the disposal of construction and demolition debris at a solid waste facility that is licensed under Chapter 3734. of the Revised Code if there is no construction and demolition debris facility licensed under this chapter within ~~forty~~ thirty-five miles of the solid waste facility as determined by a facility's property boundaries.

(2) This section does not apply to the disposal of construction and demolition debris at a solid waste facility that is licensed under Chapter 3734. of the Revised Code if the owner or operator of the facility chooses to collect fees on the disposal of the construction and demolition debris that are identical to the fees that are collected under Chapters 343. and 3734. of the Revised Code on the disposal of solid wastes at that facility.

(3) This section does not apply to the disposal of source separated materials that are exclusively composed of reinforced or nonreinforced concrete, asphalt, clay tile, building or paving brick, or building or paving stone at a construction and demolition debris facility that is licensed under this chapter when either of the following applies:

(a) The materials are placed within the limits of construction and demolition debris placement at the facility as specified in the license issued to the facility under section 3714.06 of the Revised Code, are not placed within the unloading zone of the facility, and are used as a fire prevention measure in accordance with rules adopted by the director under section 3714.02 of the Revised Code.

(b) The materials are not placed within the unloading zone of the facility or within the limits of construction and demolition debris placement at the facility as specified in the license issued to the facility under section 3714.06 of the Revised Code, but are used as fill material, either alone or in conjunction with clean soil, sand, gravel, or other clean aggregates, in legitimate fill operations for construction purposes at the facility or to bring the facility up to a consistent grade.

Sec. 3714.073. (A) In addition to the fee levied under division (A)(1) of section 3714.07 of the Revised Code, beginning July 1, 2005, there is hereby levied on the disposal of construction and demolition debris at a construction and demolition debris facility that is licensed under this chapter or at a solid waste facility that is licensed under Chapter 3734. of the Revised Code the following fees:

(1) A fee of twelve and one-half cents per cubic yard or twenty-five cents per ton, as applicable, the proceeds of which shall be deposited in the state treasury to the credit of the soil and water conservation district assistance fund created in section 1515.14 of the Revised Code;

(2) A fee of thirty seven and one-half cents per cubic yard or seventy-five cents per ton, as applicable, the proceeds of which shall be deposited in the state treasury to the credit of the recycling and litter prevention fund created in section 1502.02 of the Revised Code.

(B) The owner or operator of a construction and demolition debris facility or a solid waste facility, as a trustee of the state, shall collect the fees levied under this section and remit the money from the fees in the manner that is established in divisions (A)(2) and (3) of section 3714.07 of the Revised Code for the fee that is levied under division (A)(1) of that section.

(C) The money that is collected from a construction and demolition debris facility or a solid waste facility and remitted to a board of health or the director of environmental protection, as applicable, pursuant to this section shall be transmitted by the board or director to the treasurer of state to be credited to the soil and water conservation district assistance fund or the recycling and litter prevention fund, as applicable.

(D) This section does not apply to the disposal of construction and demolition debris at a solid waste facility that is licensed under Chapter 3734. of the Revised Code if the owner or operator of the facility chooses to collect fees on the disposal of the construction and demolition debris that are identical to the fees that are collected under Chapters 343. and 3734. of the Revised Code on the disposal of solid wastes at that facility.

(E) This section does not apply to the disposal of source separated materials that are exclusively composed of reinforced or nonreinforced concrete, asphalt, clay tile, building or paving brick, or building or paving stone at a construction and demolition debris facility that is licensed under this chapter when either of the following applies:

(1) The materials are placed within the limits of construction and demolition debris placement at the facility as specified in the license issued to the facility under section 3714.06 of the Revised Code, are not placed within the unloading zone of the facility, and are used as a fire prevention measure in accordance with rules adopted by the director under section 3714.02 of the Revised Code.

(2) The materials are not placed within the unloading zone of the facility or within the limits of construction and demolition debris placement at the facility as specified in the license issued to the facility under section 3714.06 of the Revised Code, but are used as fill material, either alone or in conjunction with clean soil, sand, gravel, or other clean aggregates, in legitimate fill operations for construction purposes at the facility or to bring the facility up to a consistent grade.

(1) "Certificate of health and freesale" means a document issued by the director of agriculture that certifies to states and countries receiving products that the products have been produced and warehoused in this state under sanitary conditions at a food processing establishment or at a place of business of a manufacturer of over-the-counter drugs or cosmetics, as applicable, that has been inspected by the department of agriculture. Other names of documents that are synonymous with "certificate of health and freesale" include, but are not limited to, "sanitary certificate of health and freesale"; "certificate of origin"; "certificate of freesale"; "certificate of health and origin"; "certificate of freesale, sanitary and purity"; and "certificate of freesale, health and origin."

(2) "Food processing establishment" has the same meaning as in section 3715.021 of the Revised Code.

(B) Upon the request of a food processing establishment, manufacturer of over-the-counter drugs, or manufacturer of cosmetics, the director may issue a certificate of health and freesale after determining that conditions at the establishment or place of business of the manufacturer, as applicable, have been found to be sanitary through an inspection conducted pursuant to this chapter. For each certificate issued, the director shall charge the establishment or manufacturer a fee in the amount of twenty dollars. The director shall deposit all fees collected under this section to the credit of the food safety fund created in section 915.24 of the Revised Code.

Sec. 3721.01. (A) As used in sections 3721.01 to 3721.09and 3721.99 of the Revised Code:

(1)(a) "Home" means an institution, residence, or facilitythat provides, fora period of more than twenty-four hours,whether for aconsideration or not, accommodations to three ormore unrelatedindividuals who are dependent upon the services ofothers, including a nursinghome, residential care facility, homefor the aging, anda veterans'homeoperated underChapter 5907. of the Revised Code.

(i) Any facility that a person, as defined in section3702.51 of the Revised Code, proposes for certification as askilled nursingfacility or nursing facility under Title XVIII orXIX of the"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A.301, asamended, and for which a certificate of need, other than acertificate to recategorize hospital beds as described in section3702.522 ofthe Revised Code or division (R)(7)(d) of the versionof section 3702.51 ofthe Revised Code in effect immediately priorto April 20, 1995, has beengranted to the person under sections3702.51 to 3702.62 of theRevised Code after August 5, 1989;

(ii) A county home or district home that is or has beenlicensedas a residential care facility.

(i) Except as provided in division (A)(1)(b) of thissection, a public hospital or hospital as defined in section3701.01 or 5122.01 of the Revised Code;

(ii) A residential facility for mentally ill persons asdefined under section 5119.22 of the Revised Code;

(iv) ~~A habilitation center as defined in section 5123.041ofthe Revised Code;~~

~~(v)~~ A community alternative home as defined in section3724.01 of the Revised Code;

~~(vi)~~(v) An adult care facility as defined in section 3722.01ofthe Revised Code;

~~(vii)~~(vi) An alcohol or drug addiction program as defined insection 3793.01 of the Revised Code;

~~(viii)~~(vii) A facility licensed to provide methadone treatmentunder section 3793.11 of the Revised Code;

~~(ix)~~(viii) A facility providing services under contract with thedepartment of mental retardation and developmental disabilitiesunder section 5123.18 of the Revised Code;

~~(x)~~(ix) A facility operated by a hospice care program licensedunder section 3712.04 of the Revised Code that is usedexclusivelyfor care of hospice patients;

~~(xi)~~(x) A facility, infirmary, orother entity that is operatedby a religious order, provides careexclusively to members ofreligious orders who take vows ofcelibacy and live by virtue oftheir vows within the orders as ifrelated, and does notparticipate in the medicare programestablished under Title XVIIIof the "Social Security Act" or themedical assistance programestablished under Chapter 5111. of theRevised Code and Title XIXof the "Social Security Act," if onJanuary 1, 1994, the facility,infirmary, or entity was providingcare exclusively to members ofthe religious order;

~~(xii)~~(xi) A county home or district home that has never beenlicensedas a residential care facility.

(2) "Unrelated individual" means one who is not related tothe owner or operator of a home or to the spouse of theowner oroperator as a parent, grandparent, child, grandchild, brother,sister, niece, nephew, aunt, uncle, or as the child of an aunt oruncle.

(3) "Mental impairment" does not mean mental illness asdefined in section 5122.01 of the Revised Code or mentalretardation as defined in section 5123.01 of the Revised Code.

(4) "Skilled nursing care" means procedures that requiretechnical skills and knowledge beyond those the untrained personpossesses and that are commonly employed in providing for thephysical, mental, and emotional needs of the ill or otherwiseincapacitated. "Skilled nursing care" includes, but is notlimited to, the following:

(a) Irrigations, catheterizations, application ofdressings,and supervision of special diets;

(b) Objective observation of changes in the patient'scondition as a means of analyzing and determining the nursingcarerequired and the need for further medical diagnosis andtreatment;

(d) Administration of medication by any method ordered byaphysician, such as hypodermically, rectally, or orally,includingobservation of the patient after receipt of themedication;

(e) Carrying out other treatments prescribed by thephysician that involve a similar level of complexity and skill inadministration.

(5)(a) "Personal care services" means services including,but not limited to, the following:

(ii) Assisting residents with self-administration ofmedication, in accordance with rules adopted under section3721.04of the Revised Code;

(iii) Preparing special diets, other than complextherapeutic diets, for residents pursuant to the instructions ofaphysician or a licensed dietitian, in accordance with rulesadopted under section 3721.04 of the Revised Code.

(b) "Personal care services" does not include "skillednursing care" as defined in division (A)(4) of this section. Afacility need not provide more than one of the services listed indivision (A)(5)(a) of this section to be considered to beproviding personal care services.

(6) "Nursing home" means a home used for the reception andcare of individuals who by reason of illness or physical ormentalimpairment require skilled nursing care and of individualswhorequire personal care services but not skilled nursing care.Anursing home is licensed to provide personal care services andskilled nursing care.

(7) "Residential care facility" means a home that provideseither of thefollowing:

(a) Accommodations for seventeen or more unrelatedindividuals and supervision and personal care services for threeor more of those individuals who are dependent on the services ofothers by reason of age or physical or mental impairment;

(b) Accommodations for three or more unrelatedindividuals,supervision and personal care services for at leastthree of thoseindividuals who are dependent on the services ofothers by reasonof age or physical or mental impairment, and, to at least oneofthose individuals, any of the skilled nursing care authorized bysection3721.011 of the Revised Code.

(8) "Home for the aging" means a home that provides servicesas aresidential care facility and a nursing home, except that thehome providesits services only to individuals who are dependenton the services of othersby reason of both age and physical ormental impairment.

The part or unit of a home for the aging that providesservices only as a residential care facility is licensed as aresidential carefacility. The part or unit that may provideskilled nursing care beyond theextent authorized by section3721.011 of the Revised Code is licensed as anursing home.

(9) "County home" and "district home" mean a county home ordistrict home operated under Chapter 5155. of the RevisedCode.

(B) The public health council may further classify homes.For the purposes of this chapter, any residence, institution,hotel, congregate housing project, or similar facility that meetsthe definition of a home under this section is such a homeregardless of howthe facility holds itself out to the public.

(C) For purposes of this chapter, personal care servicesorskilled nursing care shall be considered to be provided by afacility if they are provided by a person employed by orassociated with the facility or by another person pursuant to anagreement to which neither the resident who receives the servicesnor the resident's sponsor is a party.

(D) Nothing in division (A)(4) of this section shall beconstrued to permit skilled nursing care to be imposed on anindividual who does not require skilled nursing care.

Nothing in division (A)(5) of this section shall beconstruedto permit personal care services to be imposed on anindividualwho is capable of performing the activity in questionwithoutassistance.

(E) Division (A)(1)(c)~~(xi)~~(x) of this section does notprohibita facility, infirmary, or other entity described in thatdivisionfrom seeking licensure undersections 3721.01 to 3721.09 of theRevised Code or certificationunder Title XVIII or XIX of the"Social Security Act." However,such a facility, infirmary, orentity that applies for licensureor certification must meet therequirements of those sections ortitles and the rules adoptedunder them andobtain a certificate of need from the director ofhealth undersection 3702.52 of the Revised Code.

(F) Nothing in this chapter, or rules adopted pursuant toit, shall be construed as authorizing the supervision,regulation,or control of the spiritual care or treatment ofresidents orpatients in any home who rely upon treatment byprayer orspiritual means in accordance with the creed or tenetsof anyrecognized church or religious denomination.

Sec. 3721.011. (A) In addition to providing accommodations,supervision, andpersonal care services to its residents, aresidential care facility mayprovide skilled nursing care asfollows:

(2) Application of dressings, in accordance with rulesadoptedunder section 3721.04 of the Revised Code;

(3) Providing for the administration of medication toresidents,to the extent authorized under division (B)(1) of thissection;

(4) Other skilled nursing care provided on a part-time,intermittent basis pursuant to division (C) of this section.

A residential care facility may not admit or retain anindividual requiringskilled nursing care that is not authorizedby thissection. A residential care facility may not provideskilled nursing carebeyond the limits established by thissection.

(B)(1) A residential care facility may admit or retain anindividual requiring medication, including biologicals,only ifthe individual's personal physician has determined in writingthatthe individual is capable of self-administering the medicationorthe facility provides for the medication to be administered to theindividual by a home health agency certified under Title XVIIIofthe"Social Security Act," 49 Stat. 620(1935), 42 U.S.C.A. 301,as amended; a hospice care program licensed underChapter 3712. ofthe Revised Code; or a member ofthe staff of the residential carefacility who is qualified to performmedication administration.Medication may beadministered in a residentialcare facility onlyby the following persons authorized by law to administermedication:

(b) A licensed practical nurse licensed under Chapter 4723.of the RevisedCode who holds proof of successful completion of acourse in medicationadministration approved by the board ofnursing and who administers themedication only at the directionof a registered nurse or a physicianauthorized under Chapter4731. of the Revised Code to practice medicine andsurgery orosteopathic medicine and surgery;

(d) A physician authorized under Chapter 4731. of theRevised Code topractice medicine and surgery or osteopathicmedicine and surgery.

(2) In assisting a resident with self-administration ofmedication, anymember of the staff of a residential care facilitymay do the following:

(a) Remind a resident when to take medication and watch toensure that the resident follows the directions on the container;

(b) Assist a resident by taking the medication from thelocked area where itis stored, in accordance with rules adoptedpursuant to section3721.04 of the Revised Code, and handing it tothe resident. Ifthe resident is physically unable to open thecontainer, a staffmember may open the container for the resident.

(c) Assist a physically impaired but mentally alertresident, such as a resident with arthritis, cerebral palsy, orParkinson's disease, in removing oral or topical medication fromcontainers and in consuming or applying the medication, uponrequest by or with the consent of the resident. If a resident isphysically unable to place a dose of medicine to theresident'smouth without spilling it, a staff member may place the dose inacontainer and place the container to the mouth of the resident.

(C) A residential care facility may admitor retainindividuals who require skilled nursing care beyond thesupervisionof special diets, application of dressings,oradministration of medication, only if the carewill be provided ona part-time,intermittent basis for not more than a total of onehundred twenty days in anytwelve-month period. In accordancewith Chapter119. of the Revised Code, the public health councilshall adopt rulesspecifying what constitutes the need for skillednursing care on a part-time,intermittent basis. The councilshall adopt rules that are consistent withrules pertaining tohome health care adopted by the director of job andfamilyservicesfor the medical assistance program established underChapter 5111. of theRevised Code. Skilled nursing care providedpursuant to this division may beprovided by a home health agencycertified under Title XVIIIof the"Social Security Act," 49 Stat.620 (1935), 42 U.S.C.A. 301,as amended, a hospice care programlicensed under Chapter 3712. ofthe Revised Code, or a member ofthe staff of a residential care facility whois qualified toperform skilled nursing care.

A residential care facility that provides skilled nursingcare pursuant tothis division shall do both of the following:

(1) Evaluate each resident receiving theskilled nursingcare at least once every seven days to determinewhether theresident should be transferred to a nursing home;

(D) Notwithstanding any other provision of this chapter, aresidential carefacility in which residents receive skillednursing care pursuant tothis section is not a nursing home.

Sec. 3721.02. (A) The director of health shall license homesand establish procedures to be followed in inspecting andlicensing homes. The director may inspect a home at any time.Each home shall be inspected by the director at least once priorto the issuance of a license and at least once every fifteenmonths thereafter. The state fire marshal or a township,municipal, or other legally constituted fire department approvedby the marshal shall also inspect a home prior to issuance of alicense, at least once every fifteen months thereafter, and atanyother time requested by the director. A home does not haveto beinspected prior to issuance of a license by the director,statefire marshal, or a fire department if ownership of the homeisassigned or transferred to a different person and the home waslicensed under this chapter immediately prior to the assignmentortransfer. The director may enter at any time, for thepurposes ofinvestigation, any institution, residence, facility,or otherstructurethat has been reported to the director orthat thedirector has reasonable cause to believe is operating asa nursinghome, residential care facility, orhome for the aging without avalidlicense required by section 3721.05 of the Revised Codeor,in the case of a county home or district home, is operatingdespite therevocation of its residential care facility license.The director maydelegate the director'sauthorityand dutiesunder this chapter to any division, bureau, agency, or officialofthe department of health.

(B) A single facility may be licensed both as a nursing homepursuant to this chapter and as an adult care facility pursuanttoChapter 3722. of the Revised Code if the director determinesthatthe part or unit to be licensed as a nursing home can bemaintained separate and discrete from the part or unit to belicensed as an adult care facility.

(C) In determining the number of residents in a home for thepurpose of licensing, the director shall consider all theindividuals for whom the home provides accommodations as onegroupunless one of the following is the case:

(1) The home is a home for the aging, in which case alltheindividuals in the part or unit licensed as a nursing homeshallbe considered as one group, and all the individuals in thepart orunit licensed as a rest home shall be considered asanother group.

(2) The home is both a nursing home and an adult carefacility. In that case, all the individuals in the part or unitlicensed as a nursing home shall be considered as one group, andall the individuals in the part or unit licensed as an adult carefacility shall be considered as another group.

(3) The home maintains, in addition to a nursing home orresidential care facility, a separate and discrete partor unitthat provides accommodations to individuals who do not require orreceive skilled nursing care and do not receive personal careservicesfrom the home, in which case the individuals in theseparate anddiscrete part or unit shall not be considered indetermining thenumber of residents in the home if the separateand discrete partor unit is in compliance with the Ohio basicbuilding codeestablished by the board of building standards underChapters3781. and 3791. of the Revised Code and the home permitsthedirector, on request, to inspect the separate and discretepartor unit and speak with the individuals residing there, iftheyconsent, to determine whether the separate and discrete partorunit meets the requirements of this division.

(D) The director of health shall charge an application feeandan annual renewal licensing and inspection fee of one hundred~~five~~ seventy dollars for each fifty persons or part thereof of a home'slicensed capacity. All fees collected by the director for theissuance or renewal of licenses shall be deposited into the statetreasury to the credit of the general operations fund created insection 3701.83 of the Revised Code for use only in administeringand enforcing this chapter and rules adopted under it.

(E)(1) Except as otherwise provided in this section, theresults of an inspection or investigation of a homethat isconducted under this section, including any statement ofdeficiencies and all findings and deficiencies cited in thestatement on the basis of the inspection or investigation, shallbe used solely to determine the home's compliance with thischapter or another chapter of the Revised Code in any action orproceeding other than an action commencedunder division (I) ofsection 3721.17 of the Revised Code. Thoseresults of aninspection or investigation, thatstatement ofdeficiencies, andthe findings and deficiencies citedin thatstatement shall not beused in any court or in any actionorproceeding that is pendingin any court and are not admissibleinevidence in any action orproceeding unless that action orproceeding is an appeal of anaction by the department of healthunder this chapter or is anaction by any department or agency ofthe state to enforce thischapter or another chapter of the Revised Code.

(2) Nothing in division (E)(1) of this section prohibits theresults of an inspection or investigation conducted under thissection from being used in a criminal investigation orprosecution.

Sec. 3721.03. ~~The~~ (A) As used in this section, "person" has the same meaning as in section 1.59 of the Revised Code.

(B) The director of health shall enforce theprovisions of sections 3721.01 to ~~3721.09~~ 3721.13 and 3721.99 of theRevised Code and may issue orders to secure compliance with theprovisions of these sections and the rules adopted under them. The director may hold hearings, issue subpoenas, compeltestimony, and makeadjudications. In

The director may issue an order revoking a license in the event the director finds, upon hearing oropportunity afforded ~~therefor~~ pursuant to Chapter 119. of the Revised Code, that any of the following apply to a person~~, firm,partnership, association, corporation~~, county home, ordistrict home licensed under section3721.07 of the Revised Code ~~is in violation of~~:

(1) Has violated any of theprovisions of Chapter 3721. of the Revised Code or rules adoptedby the public health council under it; ~~is in violation of~~

(3) Is not, or any of its principalsare not suitable, morally or financially to operate such aninstitution; ~~or is~~

(4) Is not furnishing humane, kind, and adequatetreatment and care~~, the director may issue an order revoking thelicense previously issued by the director~~;

(5) Has had a long-standing pattern of violations of this chapter or the rules adopted under it that has caused physical, emotional, mental, or psychosocial harm to one or more residents. ~~Upon~~

Upon theissuance of any orderof revocation, the person whose license is revoked, or the countyhome or district home that has its license revoked, may appeal inaccordance with Chapter 119. of the Revised Code.

The state fire marshal shall enforce all statutes and rulespertaining to fire safety in homes and shall adopt rulespertaining to fire safety in homes as the marshal determinesnecessary. The rules adopted by the marshal shall be in addition to thosefire safety rules that the board of building standards and thepublic health council are empowered to adopt and shall be adoptedprior to December 31, 1972. In the event of a dispute betweenthe marshal and another officer having responsibilities undersections 3721.01 to 3721.09 of the Revised Code with respect tothe interpretation or application of a specific fire safetystatute or rule, the interpretation of the marshal shall prevail.

If the ownership of a home is assigned or transferred to adifferent person, the new owner is responsible and liable forcompliance with any notice of proposed action or order issuedunder this section in accordance with Chapter 119. of the RevisedCode prior to the effective date of the assignment or transfer (C) Once the director notifies a person, county home, or district home licensed to operate a home that the license may be revoked or issues any order under this section, the person, county home, or district home shall not assign or transfer to another person or entity the right to operate the home. This prohibition shall remain in effect until proceedings under Chapter 119. of the Revised Code concerning the order or license revocation have been concluded or the director notifies the person, county home, or district home that the prohibition has been lifted.

If a license is revoked under this section, the former license holder shall not assign or transfer or consent to assignment or transfer of the right to operate the home. Any attempted assignment or transfer to another person or entity is void.

On revocation of a license, the former licensee shall take all necessary steps to cease operation of the home.

The director of health shall not accept a certificate of need application under section 3702.52 of the Revised Code regarding a home if the license to operate the home has been revoked under this section.

Sec. 3721.032. The state fire marshal shall enforce all statutes and rulespertaining to fire safety in homes and shall adopt rulespertaining to fire safety in homes as the marshal determinesnecessary. The rules adopted by the marshal shall be in addition to thosefire safety rules that the board of building standards and thepublic health council are empowered to adopt. In the event of a dispute betweenthe marshal and another officer having responsibilities undersections 3721.01 to 3721.09 of the Revised Code with respect tothe interpretation or application of a specific fire safetystatute or rule, the interpretation of the marshal shall prevail.

Sec. 3721.07. Every person desiring to operate a homeand the superintendent or administrator of each county home or districthome for which a license as a residential care facility is sought shallapply for a license to the director of health. Thedirector shall issue a license for the home, if afterinvestigation of the applicant and, if required by section3721.02 of the Revised Code, inspection of the home, thefollowing requirements or conditions are satisfied or compliedwith:

(A) The applicant has not been convicted of a felony or acrime involving moral turpitude;

(B) The applicant is not violating any of the rules madeby the public health council or any order issued by the directorof health;

(C) The applicant has not had a license to operate the home revoked pursuant to section 3721.03 of the Revised Code because of any act or omission that jeopardized a resident's health, welfare, or safety nor has the applicant had a long-standing pattern of violations of this chapter or rules adopted under it that caused physical, emotional, mental, or psychosocial harm to one or more residents.

(D) The buildings in which the home is housed have beenapproved by the state fire marshal or a township, municipal, orother legally constituted fire department approved by themarshal. In the approval of a home such agencies shall applystandards prescribed by the board of building standards, and bythe state fire marshal, and by section 3721.071 of the RevisedCode.

~~(D)~~(E) The applicant, if it is an individual, or theprincipal participants, if it is an association or a corporation,is or are suitable financially and morally to operate a home;

~~(E)~~(F) The applicant is equipped to furnish humane, kind, andadequate treatment and care;

(4) A clinical laboratory unless it is under thesupervision of a clinical pathologist who is a licensed physicianin this state;

(5) Facilities for radiological examinations unless suchexaminations are performed only by a person licensed to practicemedicine, surgery, or dentistry in this state.

~~(G)~~(H) The home does not accept or treat outpatients, exceptupon the written orders of a physician licensed in this state,maternity cases, boarding children, and does not house transientguests, other than participants in an adult day-care program, fortwenty-four hours or less;

~~(H)~~(I) The home is in compliance with sections 3721.28 and3721.29 of the Revised Code.

When the director issues a license, the license shallremain in effect until revoked by the director or voided at therequest of the applicant; provided, there shall be an annualrenewal fee payable during the month of January of each calendaryear. Any licensed home that does not pay its renewal fee inJanuary shall pay, beginning the first day of February, alate fee of one hundred dollars for each week or part thereof that the renewalfee is not paid. If either the renewal fee or the late fee is not paid by thefifteenth day of February, thedirector may, in accordance with Chapter 119. of the Revised Code, revoke thehome's license.

If, under division (B)(5) of section 3721.03 of the Revised Code, the license of a person has been revoked or the license of a county home or district home to operate as a residential care facility has been revoked, the director of health shall not issue a license to the person or home at any time. A person whose license is revoked, and a county home or districthome that has its license as a residential care facility revoked other than under division (B)(5) of section 3721.03 of the Revised Code,for any reason other than nonpayment ofthe license renewal fee or late fees ~~may~~ shall not ~~apply for~~ be issued a new license underthischapter until a period of one year following the date of revocation haselapsed.

Any applicant who is denied a license may appeal inaccordance with Chapter 119. of the Revised Code.

(1) "Adult day-care program" means a program operatedpursuant to rules adopted by the public health council undersection 3721.04 of the Revised Code and providedby and on the same site as homes licensed under this chapter.

(2) "Applicant" means a person who is under finalconsideration for employment with a home or adult day-care program in afull-time, part-time, or temporary position that involves providing directcare to an older adult. "Applicant" does not include a person who providesdirect care as a volunteer without receiving or expecting to receive any formof remuneration other than reimbursement for actual expenses.

(3) "Criminal records check" and "older adult" have the same meanings as insection 109.572 of the Revised Code.

(B)(1) Except as provided in division (I) of thissection, the chief administrator of a home or adultday-care program shall request that the superintendent of thebureau of criminal identification and investigation conduct acriminal records check with respect to each applicant. Ifanapplicant for whom a criminal records check request is required under thisdivision does not present proof of having been a resident ofthis state for the five-year period immediately prior to the datethe criminal records check is requested or provide evidence thatwithin that five-year period the superintendent has requestedinformation about the applicant from the federal bureau of investigation ina criminal records check, the chief administrator shall requestthat the superintendent obtain information from the federalbureau of investigation as part of the criminal records check ofthe applicant. Even if an applicant for whom a criminalrecords check request is required under this division presents proof ofhavingbeen a resident of this state for the five-year period, the chiefadministrator may request that the superintendent includeinformation from the federal bureau of investigation in thecriminal records check.

(2) A person required by division (B)(1) of thissection to request a criminal records check shall do both of thefollowing:

(a) Provide to each applicant for whom a criminal records check request isrequired under that division a copy of the formprescribed pursuant to division (C)(1) of section 109.572of the Revised Code and a standard fingerprintimpression sheet prescribed pursuant to division (C)(2)of that section, and obtain the completed form and impressionsheet from the applicant;

(b) Forward the completed form and impressionsheet to the superintendent of the bureau of criminalidentification and investigation.

(3) An applicant provided the form and fingerprint impression sheet underdivision (B)(2)(a) of this section who fails to complete theform or provide fingerprintimpressions shall not be employed in anyposition for which a criminal records check is required by thissection.

(C)(1) Except as provided in rules adopted bythe director of health in accordancewith division (F) of this section and subject to division (C)(2)of this section, no home or adultday-care program shall employ a person in a positionthat involves providing direct care to an older adult if the personhas been convicted of or pleaded guilty to any of the following:

(a) A violation of section 2903.01, 2903.02,2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21,2903.34, 2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31, 2907.32,2907.321, 2907.322, 2907.323, 2911.01, 2911.02,2911.11, 2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36, 2923.12,2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13, 2925.22, 2925.23, or3716.11 of the Revised Code.

(b) A violation of an existing or former law of this state,anyother state, or the United States that issubstantially equivalent to any of the offenses listed in division(C)(1)(a) of this section.

(2)(a) A home or an adult day-care program may employconditionally anapplicant for whom a criminal records check request isrequired under division (B) of this section prior to obtainingthe results of a criminalrecords check regarding the individual, provided thatthe home or program shallrequest a criminal recordscheck regarding the individual in accordance with division (B)(1) ofthis section notlater than five business days after the individual beginsconditional employment. In the circumstances described in division(I)(2) of this section, ahome or adult day-care program may employconditionally an applicant who has been referred to thehome or adult day-care program by anemployment service that supplies full-time, part-time, ortemporary staff for positions involving the direct care of olderadults and for whom, pursuant to that division, a criminalrecords check is not required under division(B) of this section.

(b) A home or adult day-care program that employs anindividual conditionally under authority of division(C)(2)(a) of this section shall terminate theindividual's employment if the results of the criminal recordscheck requested under division (B) of this section or described indivision (I)(2) of this section, other than the results of anyrequest for information fromthe federal bureau of investigation,are not obtained within the period ending thirty days after the date therequest is made. Regardless of when the results of the criminalrecords check are obtained, if the results indicate that the individual hasbeen convicted of or pleaded guilty to any of the offenseslisted or described in division (C)(1) of this section,the home or program shall terminate the individual's employment unless thehome or program chooses to employ the individualpursuant to division (F) ofthis section. Termination of employment under this divisionshall be considered just cause for discharge for purposes ofdivision (D)(2) of section 4141.29 of the RevisedCode if the individual makes any attempt to deceivethe home or program about the individual's criminal record.

(D)(1) Each home or adult day-care program shallpay to the bureau of criminal identification and investigationthe fee prescribed pursuant to division (C)(3) of section109.572 of the Revised Code for each criminalrecords check conducted pursuant to a request made under division(B) of this section.

(2) A home or adult day-care program may charge anapplicant a fee not exceeding the amount the home or program paysunder division (D)(1) of this section. A home or programmay collect a fee only if both of the following apply:

(a) The home or program notifies the person at the time ofinitial application for employment of the amount of the feeand that, unless the fee is paid, the person will not be considered foremployment;

(b) The medical assistance program established underChapter 5111. of the Revised Codedoes not reimburse the home or program the fee it pays under division(D)(1) of this section.

(E) The report of any criminal records checkconducted pursuant to a request made under this section is not apublic record for the purposes of section 149.43 of theRevised Code and shall not be made available toany person other than the following:

(1) The individual who is the subject of thecriminal records check or the individual's representative;

(2) The chief administratorof the home or program requesting the criminal records check orthe administrator's representative;

(3) The administrator of any other facility, agency, or program thatprovides direct care to older adults that is owned or operated by the sameentity that owns or operates the home or program;

(4) A court, hearing officer, or othernecessary individual involved in a case dealing with a denial ofemployment of the applicant or dealing with employment or unemploymentbenefits of the applicant;

(5) Any person to whom the report is provided pursuantto, and in accordance with, division(I)(1) or (2) of thissection;

(6) The board of nursing for purposes of accepting and processing an application for a medication aide certificate issued under Chapter 4723. of the Revised Code.

(F) In accordance with section 3721.11 of the RevisedCode, the director of health shall adopt rules to implement thissection. The rules shall specify circumstances under which a home or adultday-care program may employ a person who has beenconvicted of or pleaded guilty to an offense listed or described in division(C)(1) of this section but meets personal character standards set by thedirector.

(G) The chief administrator of a home or adult day-care programshall inform each individual, at the time of initial applicationfor a position that involves providing direct care to an olderadult, that the individual is required to provide a set of fingerprintimpressions and that a criminal records check is required to beconducted if the individual comes under final consideration for employment.

(H) In a tort or other civil action for damages that isbrought as the result of an injury, death, or loss to person orproperty caused by an individual who ahome or adult day-care program employs in a positionthat involves providing direct care to older adults, all of thefollowing shall apply:

(1) If the home or program employed the individual in goodfaith and reasonable reliance on the report of a criminal recordscheck requested under this section, the home or program shall not befound negligent solely because of its reliance on the report,even if the information in the report is determined later tohave been incomplete or inaccurate;

(2) If the home or program employed the individual in good faithon a conditional basis pursuant to division (C)(2) of this section, thehome or program shall not be found negligent solely because it employedthe individual prior to receiving the report of a criminalrecords check requested under this section;

(3) If the home or program in good faith employed theindividual accordingto the personal character standards established in rules adoptedunder division (F) of thissection, the home or program shall not be found negligent solely becausethe individual prior to being employed had been convicted of orpleaded guilty to an offense listed or described in division(C)(1) of this section.

(I)(1) The chief administrator of a home or adult day-careprogram is not required torequest that the superintendent of the bureau of criminalidentification and investigation conduct a criminal recordscheck of an applicant if the applicant has been referred to thehome or program by anemployment service that supplies full-time, part-time, ortemporary staff for positions involving the direct care of olderadults and both of the following apply:

(a) The chief administrator receives from the employmentservice or the applicant a report of the results of a criminalrecords check regarding the applicant that has been conducted bythe superintendent within the one-year period immediatelypreceding the applicant's referral;

(b) The report of the criminal records check demonstratesthat the person has not been convicted of or pleaded guilty toan offense listed or described in division (C)(1) of this section,or thereport demonstrates that theperson has been convicted of or pleaded guilty to one or more ofthose offenses, but the home or adult day-care programchooses to employ the individual pursuant to division (F)of this section.

(2) The chief administrator of ahome or adult day-care program is not requiredto request that the superintendent of the bureau of criminalidentification and investigation conduct a criminal recordscheck of an applicant and may employ the applicantconditionally as described in this division, if the applicanthas been referred to the home or program by an employment service thatsupplies full-time, part-time, or temporary staff for positionsinvolving the direct care of older adults and if the chiefadministrator receives from the employment service or theapplicant a letter from the employment service that is on the letterhead ofthe employment service, dated, and signed by a supervisor or anotherdesignated official of the employment service and that statesthat the employment service has requested the superintendent toconduct a criminal records check regarding the applicant, thatthe requested criminal records check will include adetermination of whether the applicant has been convicted of orpleaded guilty to any offense listed or described in division(C)(1) of this section,that, as of the date set forth on the letter,the employment service had not received theresults of the criminal records check, and that, when the employment servicereceives the results of the criminal records check, it promptly will send acopy of the results to the home or ~~adult-care~~ adult day-care program. If ahome or adult day-care program employs anapplicant conditionally in accordance with this division, the employmentservice, upon its receipt of the results of the criminal records check,promptly shall send a copy of the results to the home or adult day-careprogram, anddivision(C)(2)(b)of this section applies regarding the conditionalemployment.

Sec. 3721.15. (A) Authorization from a resident or asponsor with a power of attorney for a home to manage theresident's financial affairs shall be in writing and shall beattested to by a witness who is not connected in any mannerwhatsoever with the home or its administrator. The home shallmaintain accounts pursuant to division (A)(27) of section 3721.13of the Revised Code. Upon the resident's transfer, discharge, ordeath, the account shall be closed and a final accounting made.All remaining funds shall be returned to the resident orresident'ssponsor, except in the case of death, when allremaining fundsshall be transferred or used in accordance withsection ~~5111.112~~ 5111.113 of theRevised Code.

(B) A home that manages a resident's financial affairsshalldeposit the resident's funds in excess of one hundreddollars,andmay deposit the resident's funds that are one hundred dollarsorless, in an interest-bearing account separate from any of thehome's operating accounts. Interest earned on the resident'sfunds shall be credited to the resident's account. A resident'sfunds that are one hundred dollars or less and have not beendepositedin an interest-bearing account may be deposited in anoninterest-bearing account or petty cash fund.

(C) Each resident whose financial affairs are managed by ahome shall be promptly notified by the home when the total of theamount of funds in the resident's accounts and the petty cashfundplus other nonexempt resources reaches two hundreddollars lessthan the maximum amount permitted a recipient ofmedicaid. Thenotice shall include an explanation of the potential effect ontheresident's eligibility formedicaid if theamountin theresident's accounts and the petty cash fund, plusthe value ofother nonexempt resources, exceeds the maximum assetsamedicaidrecipient may retain.

(D) Each home that manages the financial affairs ofresidents shall purchase a surety bond or otherwise provideassurance satisfactory to the director of health, or, in the caseof a home that participates in themedicaidprogram, tothedirector of job and family services, to assure the security ofallresidents' funds managed by the home.

(1)"Home" and"residential care facility" have the samemeanings as insection 3721.01 of the Revised Code;

(2)"Sponsor" and"residents' rights advocate" have the samemeanings asin section 3721.10 of the Revised Code.

A home licensed under this chapter that isnot a party to aprovider agreement, as defined in section5111.20 of the RevisedCode, shall provide each prospectiveresident, before admission,with the following information,orally and in a separate writtennotice on which is printed in aconspicuous manner:"This home isnot a participant in themedical assistance program administeredby the Ohio department ofjob and family services. Consequently,you may be discharged from thishome if you are unable to pay forthe services provided by thishome."

If the prospective resident has a sponsor whose identity ismade knownto the home, the home shall also inform the sponsor,beforeadmission of the resident, of the home's status relative tothemedical assistance program. Written acknowledgement of thereceipt of the information shall be provided by the resident and,if the prospective resident has a sponsor who has been identifiedto the home, by the sponsor. The written acknowledgement shallbemade part of the resident's record by the home.

No home shall terminate its status as a provider under the~~medical assistance~~ medicaid program unless it has complied with section 5111.66 of the Revised Code and, at least ninety daysprior to such termination, provided written notice to the~~department of job and family services and~~ residents of the homeandtheirsponsors of such action. This requirement shall notapply incases where the department of job and family servicesterminates ahome'sprovider agreement or provider status.

(B) A home licensed under this chapter as a residential carefacility shall provide notice to each prospective resident or theindividual'ssponsor of the services offered by the facility andthe types of skillednursing care that the facility may provide.A residential care facility that,pursuant to section 3721.012 ofthe Revised Code, has apolicy of entering into risk agreementswith residents or their sponsors shallprovide each prospectiveresident or the individual's sponsor awritten explanation of thepolicy and the provisions that may becontained in a riskagreement. At the time the information isprovided, the facilityshall obtain a statement signed by theindividual receiving theinformation acknowledging that theindividual received theinformation. The facility shallmaintain on file the individual'ssigned statement.

(C) A resident has a cause of action against a home forbreachof any duty imposed by this section. The action may becommencedby the resident, or on the resident's behalf bytheresident's sponsor or a residents'rights advocate, by the filingof a civil action in the court ofcommon pleas of the county inwhich the home is located, or inthe court of common pleas ofFranklin county.

If the court finds that a breach of any duty imposed bythissection has occurred, the court shall enjoin the home fromdischarging the resident from the home until arrangementssatisfactory to the court are made for the orderly transfer oftheresident to another mode of health care including, but notlimitedto, another home, and may award the resident and a personorpublic agency that brings an action on behalf of a residentreasonable attorney's fees. If a home discharges a resident towhom or to whose sponsor information concerning its statusrelative to the medical assistance program was not provided asrequired under this section, the court shall grant anyappropriaterelief including, but not limited to, actual damages,reasonableattorney's fees, and costs.

(1) A nursing home as defined in section 3721.01 of theRevised Code, other than a nursing home or part of a nursing homecertified as an intermediate care facility for the mentallyretarded under Title XIX of the "Social Security Act," 49 Stat.620 (1935), 42 U.S.C.A. 301, as amended;

(2) A facility or part of a facility that is certified asa skilled nursing facility or a nursing facility under TitleXVIII or XIX of the "Social Security Act."

(B) "Residential care facility" has the same meaning as in section3721.01 of the Revised Code.

(C) "Abuse" means knowingly causing physical harm orrecklessly causing serious physical harm to a resident byphysical contact with the resident or by use of physical orchemical restraint, medication, or isolation as punishment, forstaff convenience, excessively, as a substitute for treatment, orin amounts that preclude habilitation and treatment.

(D) "Neglect" means recklessly failing to provide aresident with any treatment, care, goods, or service necessary tomaintain the health or safety of the resident when the failureresults in serious physical harm to the resident. "Neglect" doesnot include allowing a resident, at the resident's option, to receive onlytreatment by spiritual meansthrough prayer in accordance with the tenets of a recognized religiousdenomination.

(E) "Misappropriation" means depriving, defrauding, orotherwise obtaining the real or personal property of a residentby any means prohibited by the Revised Code, including violationsof Chapter 2911. or 2913. of the Revised Code.

(F) "Resident" includes a resident, patient,former resident or patient, or deceased resident or patient of along-term care facility or a residential care facility.

(G) "Physical restraint" has the same meaning as insection 3721.10 of the Revised Code.

(H) "Chemical restraint" has the same meaning as insection 3721.10 of the Revised Code.

(I) "Nursing and nursing-related services" meansthe personal care services and other services not constitutingskilled nursing care that are specified in rules the publichealth council shall adopt in accordance with Chapter 119.of the Revised Code.

(J) "Personal care services" has the same meaning as insection 3721.01 of the Revised Code.

(K)(1) Except as provided in division (K)(2) of this section, "~~Nurse~~ nurse aide" means an individual~~, other than alicensed health professional practicing within the scope of the professional'slicense,~~ who provides nursingand nursing-related services to residents in along-term care facility, either as amember of the staff of the facility for monetary compensation or as avolunteer without monetary compensation.

(a) A licensed health professional practicing within the scope of the professional's license;

(b) An individual providing nursing and nursing-related services in a religious nonmedical health care institution, if the individual has been trained in the principles of nonmedical care and is recognized by the institution as being competent in the administration of care within the religious tenets practiced by the residents of the institution.

(1) An occupational therapist or occupational therapyassistant licensed under Chapter 4755. of the Revised Code;

(2) A physical therapist or physical therapy assistantlicensed under Chapter 4755. of the Revised Code;

(3) A physician authorized under Chapter 4731. of theRevised Code to practice medicine and surgery, osteopathic medicine andsurgery, or podiatry;

(4) A physician assistant authorized underChapter 4730. of the Revised Code to practice as a physician assistant;

(5) A registered nurse or licensed practical nurselicensed under Chapter 4723. of the Revised Code;

(6) A social worker or independent social workerlicensed under Chapter 4757. of the Revised Code or a social work assistantregistered under that chapter;

(7) A speech-language pathologist or audiologist licensed underChapter 4753. of the Revised Code;

(8) A dentist or dental hygienist licensed under Chapter4715. of the Revised Code;

(13) A nursing home administrator licensed or temporarilylicensed under Chapter 4751. of the Revised Code;

(14) A professional counselor or professional clinical counselor licensedunder Chapter 4757. of the Revised Code.

(M) "Religious nonmedical health care institution" means an institution that meets or exceeds the conditions to receive payment under the medicare program established under Title XVIII of the "Social Security Act" for inpatient hospital services or post-hospital extended care services furnished to an individual in a religious nonmedical health care institution, as defined in section 1861(ss)(1) of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1395x(ss)(1), as amended.

(N) "Competency evaluation program" means a programthrough which the competency of a nurse aide to provide nursing andnursing-related services is evaluated.

~~(N)~~(O) "Training and competency evaluation program" means aprogram of nurse aide training and evaluation of competency toprovide nursing and nursing-related services.

(B) "Inpatient days" means all days during which a resident of a nursing facility, regardless of payment source, occupies a bed in the nursing facility that is included in the facility's certified capacity under Title XIX. Therapeutic or hospital leave days for which payment is made under section 5111.26 of the Revised Code are considered inpatient days proportionate to the percentage of the facility's per resident per day rate paid for those days.

(D) "Medicaid day" means all days during which a resident who is a medicaid recipient occupies a bed in a nursing facility that is included in the facility's certified capacity under Title XIX. Therapeutic or hospital leave days for which payment is made under section 5111.26 of the Revised Code are considered medicaid days proportionate to the percentage of the nursing facility's per resident per day rate for those days.

(E) "Nursing facility" has the same meaning as in section 5111.20 of the Revised Code.

(a) A nursing home licensed under section 3721.02 or3721.09 of the Revised Code, including any part of a home for theaging licensed as a nursing home;

(b) A facility or part of a facility, other than ahospital, that is certified as a skilled nursing facility underTitle XVIII ~~of the "Social Security Act," 49 Stat. 620 (1935), 42U.S.C.A. 301, as amended~~;

(c) A nursing facility ~~as defined in section 5111.20 ofthe Revised Code~~, other than a portion of a hospital certified asa nursing facility.

(a) A county home, countynursing home, or district home operated pursuant to Chapter 5155.of the Revised Code ~~or a~~;

(b) A nursing home maintained and operated by the Ohio veterans' home agency under section 5907.01 of the Revised Code;

(c) A nursing home or part of a nursing homelicensed under section 3721.02 or 3721.09 of the Revised Codethat is certified as an intermediate care facility for thementally retarded under Title XIX ~~of the "Social Security Act~~."

~~(B) "Hospital" has the same meaning as in section 3727.01of the Revised Code.~~

(G) "Title XIX" means Title XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396, as amended.

(H) "Title XVIII" means Title XVIII of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1395, as amended.

Sec. 3721.51. The department of job and family servicesshall do all of the following:

(A) ~~For~~ Subject to division (C) of this section and for thepurposes specified in~~section~~ sections 3721.56 and 3721.561 of theRevised Code, determine an annualfranchisepermit fee on eachnursing home in an amount equal to~~threedollars and thirty centsfor fiscalyear 2002, four~~ six dollars and ~~thirty~~ twenty-five centsfor fiscalyears ~~2003 through 2005,~~ 2006 and 2007 andonedollarfor eachfiscalyearthereafter, multiplied by the productof thefollowing:

(1) The number of beds licensed as nursing home beds, plusany other beds certified as skilled nursing facility beds underTitle XVIII or nursing facility beds under Title XIX ~~of the"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, asamended,~~ on ~~July 1, 1993, and, for each subsequent year,~~ thefirstday of May of the calendar year in which the fee isdeterminedpursuant to division (A) of section 3721.53 of theRevised Code;

(2) The ~~number of days in fiscal year 1994 and, for eachsubsequent year, the~~ number of days in the fiscal year beginningon the first day of July of the calendar year in which the fee isdetermined pursuant to division (A) of section 3721.53 of theRevised Code.

(B) ~~For~~ Subject to division (C) of this section and for thepurposes specified in~~section~~ sections 3721.56 and 3721.561 of theRevised Code, determine an annualfranchisepermit fee on eachhospital in an amount equal to~~three dollarsand thirty cents forfiscalyear 2002, four~~six dollars and ~~thirty~~ twenty-five cents forfiscal years~~2003 through 2005,~~ 2006 and 2007 and onedollarfor each fiscalyearthereafter,multiplied by the product of thefollowing:

(1) The number of beds registered pursuant to section3701.07 of the Revised Code as skilled nursing facility beds orlong-term care beds, plus any other beds licensed as nursing homebeds under section 3721.02 or 3721.09 of the Revised Code, on~~July1, 1993, and, for each subsequent year,~~ the first day of Mayofthe calendar year in which the fee is determined pursuant todivision (A) of section 3721.53 of the Revised Code;

(C) If the United Statescenters for medicare and medicaidservicesdetermines that thefranchise permit fee established bysections3721.50to3721.58 of the Revised Code ~~would be~~ is animpermissible health carerelated tax under section 1903(w) ofthe"Social Security Act," 49Stat. 620 (1935), 42 U.S.C.1396b(w), asamended, ~~the departmentof job and familyservices shall~~ takeallnecessary actions tocease implementation of ~~those~~ sections 3721.50 to 3721.58 of the Revised Codeinaccordance with rulesadopted under section 3721.58 of theRevisedCode.

Sec. 3721.52. (A) For the purpose of the fee underdivision(A) of section 3721.51 of the Revised Code, the department ofhealthshall, ~~not later than August 1, 1993, and, for eachsubsequentyear,~~ not later than the first day of each June, report tothedepartment of job and family services the number of beds ineach nursinghome licensed on ~~July 1, 1993, and, for eachsubsequent year,~~ thepreceding first day of May under section3721.02 or 3721.09 ofthe Revised Code or certified on that dateunder Title XVIII orXIX ~~of the"Social Security Act," 49 Stat.620 (1935), 42U.S.C.A. 301, as amended~~.

(B) For the purpose of the fee under division (B) ofsection3721.51 of the Revised Code, the department of healthshall, ~~notlater than August 1, 1993, and, for each subsequentyear,~~ notlater than the first day of each June, report to thedepartment of joband family services the number of beds in eachhospitalregisteredon ~~July 1, 1993, and, for each subsequent year,~~ theprecedingfirst day of May pursuant to section 3701.07 of theRevised Codeas skilled nursing facility or long-term care bedsor licensed onthat date under section 3721.02 or 3721.09 of theRevised Code asnursing home beds.

Sec. 3721.541. (A) In addition to assessing a penalty pursuant to section 3721.54 of the Revised Code, the department of job and family services may do either of the following if a nursing facility or hospital fails to pay the full amount of a franchise permit fee installment when due:

(1) Withhold an amount equal to the installment and penalty assessed under section 3721.54 of the Revised Code from a medicaid payment due the nursing facility or hospital until the nursing facility or hospital pays the installment and penalty;

(B) The department may withhold a medicaid payment under division (A)(1) of this section without providing notice to the nursing facility or hospital and without conducting an adjudication under Chapter 119. of the Revised Code.

Sec. 3721.56. ~~(A) Thirty and three-tenths~~ There is hereby created in the state treasury the home- and community-based services for the aged fund. Sixteen per cent ofallpayments andpenalties paid by nursinghomes and hospitalsundersections3721.53 and 3721.54 of theRevised Codefor fiscal~~year2002,twenty-three and twenty-six-hundredths percent ofsuchpayments and penalties paid for fiscal~~ years ~~2003through2005~~ 2006 and 2007,and all such payments and penalties paid forsubsequentfiscalyears, shall be deposited into the ~~"home andcommunity-basedservices for the aged~~ fund~~," which is herebycreated in the statetreasury~~. The departments of job andfamilyservicesand agingshall use the moneys in the fund to fund thefollowinginaccordance with rules adopted under section 3721.58of theRevisedCode:

~~(1)~~(A) The ~~medical assistance~~ medicaid program established underChapter5111. of the Revised Code;

~~(2) The~~, including the PASSPORT program established under section 173.40ofthe Revised Code;

~~(3)~~(B) The residential state supplement programestablishedunder section 173.35 of the Revised Code.

(B) Sixty-nine and seven-tenths per cent of all payments andpenalties paid bynursing homes and hospitals under sections3721.53 and 3721.54 ofthe Revised Code for fiscalyear 2002,andseventy-six and seventy-four-hundredths per cent of suchpaymentsand penalties paid for fiscal years2003through 2005,shall bedepositedinto the nursing facility stabilizationfund,which isherebycreated in the state treasury. Thedepartment ofjob andfamilyservices shall use the money in thefund in themannerprovided byAm. Sub. H.B. 94and Am. Sub. S.B. 261 of the124thgeneral assembly.

Sec. 3721.561. (A) There is hereby created in the state treasury the nursing facility stabilization fund. All payments and penalties paid by nursing homes and hospitals under sections 3721.53 and 3721.54 of the Revised Code that are not deposited into the home and community-based services for the aged fund shall be deposited into the fund. The department of job and family services shall use the money in the fund to make medicaid payments to nursing facilities.

(B) Any money remaining in the nursing facility stabilization fund after payments specified in division (A) of this section are made shall be retained in the fund. Any interest or other investment proceeds earned on money in the fund shall be credited to the fund and used to make medicaid payments in accordance with division (A) of this section.

Sec. 3721.58. The director of joband family services shalladoptrules in accordance with Chapter 119. of the Revised Code todo~~both~~ all of the following:

(A) Prescribe the actions the department of job and familyserviceswill take tocease implementation of sections 3721.50through 3721.57 of theRevised Code if the United States ~~healthcare financingadministration~~ centers for medicare and medicaid services determines that the franchise permitfeeestablished by those sections is an impermissible health-carerelated tax under section 1903(w) of the"Social Security Act,"49Stat. 620 (1935), 42 U.S.C. ~~1396(b)(w)~~ 1396b(w), as amended;

(B) Establish the method of distributing moneys in thehomeand community-based services for the aged fund created undersection 3721.56 of the Revised Code;

(C) Establish any requirements or procedures the directorconsidersnecessary to implement sections 3721.50 to 3721.58 ofthe RevisedCode.

(1)"Owner" means the person who owns the business of andwhoultimately controls the operation of an adult care facilityand towhom the manager, if different from the owner, isresponsible.

(2)"Manager" means the person responsible for the dailyoperation of an adult care facility. The manager and the ownerofa facility may be the same person.

(4)"Unrelated" means that an adult resident is notrelatedto the owner or manager of an adult care facility or totheowner's or manager's spouse as a parent, grandparent,child,stepchild,grandchild, brother, sister, niece, nephew, aunt, oruncle, or asthe child of an aunt or uncle.

(5)"Skilled nursing care" means skilled nursing care asdefined in section 3721.01 of the Revised Code.

(6)(a)"Personal care services" means services including,butnot limited to, the following:

(ii) Assisting residents with self-administration ofmedication, in accordance with rules adopted by the public healthcouncil pursuant to this chapter;

(b)"Personal care services" does not include"skillednursing care" as defined in section 3721.01 of the Revised Code.Afacility need not provide more than one of the services listedindivision (A)(6)(a) of this section to be considered to beproviding personal care services.

(7)"Adult family home" means a residence or facility thatprovides accommodations to three to five unrelated adults andsupervision and personal care services to at least three of thoseadults.

(8)"Adult group home" means a residence or facility thatprovides accommodations to six to sixteen unrelated adults andprovides supervision and personal care services to at least threeof the unrelated adults.

(9)"Adult care facility" means an adult family home or anadult group home. For the purposes of this chapter, anyresidence, facility, institution, hotel, congregate housingproject, or similar facility that provides accommodations andsupervision to three to sixteen unrelated adults, at least threeof whom are provided personal care services, is an adult carefacility regardless of how the facility holds itself out to thepublic."Adult care facility" does not include:

(a) A facility operated by a hospice care program licensedunder section 3712.04 of the Revised Code that is usedexclusivelyfor care of hospice patients;

(b) A nursing home, residential care facility, or homeforthe aging asdefined in section 3721.01 of the Revised Code;

(d) An alcohol and drug addiction program as defined insection 3793.01 of the Revised Code;

~~(f)~~ A residential facility for the mentally ill licensedbythe department of mental health under section 5119.22 of theRevised Code;

~~(g)~~(f) A facility licensed to provide methadone treatmentundersection 3793.11 of the Revised Code;

~~(h)~~(g) A residential facility licensed under section 5123.19ofthe Revised Code or otherwise regulated by the department ofmental retardation and developmental disabilities;

~~(i)~~(h) Any residence, institution, hotel, congregate housingproject, or similar facility that provides personal care servicesto fewer than three residents or that provides, for any number ofresidents, only housing, housekeeping, laundry, meal preparation,social or recreational activities, maintenance, security,transportation, and similar services that are not personal careservices or skilled nursing care;

~~(j)~~(i) Any facility that receives funding for operating costsfrom the department of development under any program establishedto provide emergency shelter housing or transitional housing forthe homeless;

~~(k)~~(j) A terminal care facility for the homeless that hasentered into an agreement with a hospice care program undersection 3712.07 of the Revised Code;

~~(l)~~(k) A facility approved by the veterans administrationunder section 104(a) of the"Veterans Health Care Amendments of1983," 97 Stat. 993, 38 U.S.C.A. 630, as amended, and usedexclusively for the placement and care of veterans;

~~(m)~~(l) Until January 1, 1994, the portion of a facility inwhich care is provided exclusively to members of a religiousorderif the facility is owned by or part of a nonprofitinstitution ofhigher education authorized to award degrees bythe Ohio board ofregents under Chapter 1713. of the RevisedCode.

(a) An employee or representative of any state or localgovernment entity that has a responsibility for residents ofadultcare facilities and has registered with the department ofhealthunder section 3701.07 of the Revised Code;

(b) An employee or representative, other than a manager oremployee of an adult care facility or nursing home, of anyprivatenonprofit corporation or association that qualifies fortax-exemptstatus under section 501(a) of the"Internal RevenueCode of1986," 100 Stat. 2085, 26 U.S.C.A. 501(a), as amended,that hasregistered with the department of health under section3701.07 ofthe Revised Code, and whose purposes include educatingandcounseling residents, assisting residents in resolvingproblemsand complaints concerning their care and treatment, andassistingthem in securing adequate services.

(11)"Sponsor" means an adult relative, friend, orguardianof a resident of an adult care facility who has aninterest in orresponsibility for the resident's welfare.

(12)"Ombudsperson" means a"representative of theofficeofthe state long-term care ombudsperson program" asdefined insection 173.14 of the Revised Code.

(13)"Mental health agency" means acommunity mental healthagency, asdefined in section5119.22 of the Revised Code, undercontract with a board of alcohol, drug addiction, andmentalhealth services pursuant to division (A)(8)(a)of section340.03of the Revised Code.

(B) For purposes of this chapter, personal care servicesorskilled nursing care shall be considered to be provided by afacility if they are provided by a person employed by orassociated with the facility or by another person pursuant to anagreement to which neither the resident who receives the servicesnor the resident's sponsor is a party.

(C) Nothing in division (A)(6) of this section shall beconstrued to permit personal care services to be imposed upon aresident who is capable of performing the activity in questionwithout assistance.

Sec. 3722.02. A person seeking a license to operate anadultcare facility shall submit to the director of health anapplication on a form prescribed by the director and thefollowing:

(A) In the case of an adult group home seeking licensureasan adult care facility, evidence that the home has beeninspectedand approved by a local certified building departmentor by thedivision of industrial compliance in the department ofcommerce asmeeting theapplicable requirements of sections 3781.06 to3781.18 and 3791.04 of the Revised Code andany rules adoptedunder those sections and evidence that the homehas beeninspected by thestate fire marshal or fire preventionofficer of a municipal,township, or other legally constitutedfire department approvedby the state fire marshal and found to bein compliance withrules adopted under section 3737.83 of theRevised Code regardingfire prevention and safety in adult grouphomes;

(B) Valid approvals of the facility's water and sewagesystems issued by the responsible governmental entity, ifapplicable;

(1) If the owner is an individual, the owner's name,address,telephone number, business address, business telephonenumber,and occupation. If the owner is an association,corporation, orpartnership, the business activity, address, andtelephone numberof the entity and the name of every person whohas an ownershipinterest of five per cent or more in the entity.

(2) If the owner does not own the building or if the ownerownsonly part of the building in which the facility is housed,thename of each person who has an ownership interest of five percent or more in the building;

(3) The address of any adult care facility and anyfacilitydescribed in divisions (A)(9)(a) to ~~(i)~~(h) of section3722.01 of theRevised Code in which the owner has an ownershipinterest of fiveper cent or more;

(4) The identity of the manager of the adult carefacility,if different from the owner;

(5) The name and address of any adult care facility andanyfacility described in divisions (A)(9)(a) to ~~(i)~~(h) of section3722.01 of the Revised Code with which either the owner ormanagerhas been affiliated through ownership or employment inthe fiveyears prior to the date of the application;

(6) The names and addresses of three persons not employedbyor associated in business with the owner who will provideinformation about the character, reputation, and competence oftheowner and the manager and the financial responsibility of theowner;

(7) Information about any arrest of the owner or managerfor, or adjudication or conviction of, a criminal offense relatedto the provision of care in an adult care facility or anyfacilitydescribed in divisions (A)(9)(a) to ~~(i)~~(h) of section3722.01 of theRevised Code or the ability to operate a facility;

(8) Any other information the director may requireregardingthe owner's ability to operate the facility.

(D) If the facility is an adult group home, a balancesheetshowing the assets and liabilities of the owner and astatementprojecting revenues and expenses for the first twelvemonths ofthe facility's operation;

(E) Proof of insurance in an amount and type determined inrules adopted by the public health council pursuant to thischapter to be adequate;

(F) A nonrefundable license application fee in an amountestablished in rules adopted by the public health councilpursuantto this chapter.

Sec. 3722.04. (A)(1) The director of health shallinspect,license, and regulate adult care facilities. Except asotherwiseprovided in division (D) of this section, the directorshall issuea license to an adult care facility that meets therequirements ofsection 3722.02 of the Revised Code and that thedirectordetermines to be in substantial compliance with therules adoptedby the public health council pursuant to thischapter. Thedirector shall consider the past record of theowner and managerand any individuals who are principalparticipants in an entitythat is the owner or manager inoperating facilities providingcare to adults. The director may,in accordance with Chapter 119.of the Revised Code, deny alicense if the past record indicatesthat the owner or manager isnot suitable to own or manage anadult care facility.

The license shall contain the name and address of thefacility for which it was issued, the date of expiration of thelicense, and the maximum number of residents that may beaccommodated by the facility. A license for an adult carefacility shall be valid for a period of two years after the dateof issuance. No single facility may be licensed to operate asmore than one adult care facility.

(2) Notwithstanding division (A)(1) of this section andsections 3722.02 and 3722.041 of the Revised Code, the directormay issue a temporary license if the requirements of divisions(C), (D), and (F) of section 3722.02 of the Revised Code havebeenmet. A temporary license shall be valid for a period ofninetydays and, except as otherwise provided in division (A)(3)ofsection 3722.05 of the Revised Code, may be renewed, withoutpayment of an additional application fee, for an additionalninetydays.

(B) The director shall renew a license for a two-yearperiodif the facility continues to be in compliance with therequirements of this chapter and in substantial compliance withthe rules adopted under this chapter. The owner shall submit anonrefundable license renewal application fee in an amountestablished in rules adopted by the public health councilpursuantto this chapter. Before the license of an adult grouphome isrenewed, if any alterations have been made to thebuildings, acertificate of occupancy for the facility shall havebeen issuedby the division of industrial compliance in the departmentofcommerce or alocalcertified building department. The facilityshall have water andsewage system approvals, if required by law,and, in the case ofan adult group home, documentation ofcontinued compliance withthe rules adopted by the state firemarshal under division (F) ofsection 3737.83 of the Revised Code.

(C) The director shall make at least one unannouncedinspection of an adult care facility during each licensure periodin addition to inspecting the facility to determine whether alicense should be issued or renewed, and may make additionalunannounced inspections as the director considers necessary.Otherinspections may be made at any time that the directorconsidersappropriate. The director shall take all reasonableactions toavoid giving notice of an inspection by the manner inwhich theinspection is scheduled or performed. Not later thansixty daysafter the date of an inspection of a facility, thedirector shallsend a report of the inspection to the ombudspersoninwhose regionthe facility is located. The state fire marshalor fireprevention officer of a municipal, township, or otherlegallyconstituted fire department approved by the state firemarshalshall inspect an adult group home seeking a license orrenewalunder this chapter as an adult care facility prior toissuance ofa license or renewal, at least once annuallythereafter, and atany other time at the request of the director,to determinecompliance with the rules adopted under division (F)of section3737.83 of the Revised Code.

(D) The director may waive any of the licensingrequirementshaving to do with fire and safety requirements orbuildingstandards established by rule adopted by the publichealth councilpursuant to this chapter upon written request ofthe facility.The director may grant a waiver if thedirector determinesthatthe strict application of the licensing requirement wouldcauseundue hardship to the facility and that granting the waiverwouldnot jeopardize the health or safety of any resident. Thedirectormay provide a facility with an informal hearingconcerning thedenial of a waiver request, but the facility shallnot be entitledto a hearing under Chapter 119. of the RevisedCode unless thedirector takes an action that requires a hearingto be held undersection 3722.05 of the Revised Code.

(E)(1) Not later than thirty days after ~~the issuance orrenewalof the license, other than a temporary license, of anadult carefacility under this section~~ each of the following, the owner of an adult care facility shall submit aninspectionfee of ~~ten~~ twenty dollars for each bed for which the facilityislicensed:

(c) If, during an inspection conducted in addition to the two inspections required by division (C) of this section, the facility was found to be in violation of this chapter or the rules adopted under it, receipt by the facility of the report of that investigation. ~~The~~

(2) The director may revoke the license of any adultcarefacility that fails to submit the fee within the thirty-dayperiod. ~~All~~

(3) All inspection fees received by the director, all civilpenalties assessed under section 3722.08 of the Revised Code, allfines imposed under section 3722.99 of the Revised Code, and alllicense application and renewal application fees received underdivision (F) of section 3722.02 of the Revised Code or underdivision (B) of this section shall be deposited into the generaloperations fund created in section 3701.83 of the Revised Codeandshall be used only to pay the costs of administering andenforcingthe requirements of this chapter and rules adoptedunder it.

(F)(1) An owner shall inform the director in writing ofanychanges in the information contained in the statement ofownershipmade pursuant to division (C) of section 3722.02 of theRevisedCode or in the identity of the manager, not later thanten daysafter the change occurs.

(2) An owner who sells or transfers an adult care facilityshall be responsible and liable for the following:

(a) Any civil penalties imposed against the facility undersection 3722.08 of the Revised Code for violations that occurbefore the date of transfer of ownership or during any period inwhich the seller or the seller's agent operates thefacility;

(b) Any outstanding liability to the state, unless thebuyeror transferee has agreed, as a condition of the sale ortransfer,to accept the outstanding liabilities and to guaranteetheirpayment, except that if the buyer or transferee fails tomeetthese obligations the seller or transferor shall remainresponsible for the outstanding liability.

(G) The director shall annually publish a list of licensedadult care facilities, facilities whose licenses have beenrevokedor not renewed, any facilities under an order suspendingadmissions pursuant to section 3722.07 of the Revised Code, andany facilities that have been assessed a civil penalty pursuanttosection 3722.08 of the Revised Code. The director shallfurnishinformation concerning the status of licensure of anyfacility toany person upon request. The director shall annuallysend a copyof the list to the department of job and family services, tothedepartment of mental health, and to the department of aging.

(A) "Board of health" means the board of health of a cityor general health district or the authority having the duties ofa board of health in any city as authorized by section 3709.05 ofthe Revised Code.

(C) "Health district" means a city or general healthdistrict as created by or under authority of Chapter 3709. of theRevised Code.

(E) "Solid wastes" means such unwanted residual solid orsemisolid material as results from industrial, commercial,agricultural, and community operations, excluding earth ormaterial from construction, mining, or demolition operations, orother waste materials of the type that normally would be includedin demolition debris, nontoxic fly ash and bottom ash, includingat least ash that results from the combustion of coal and ashthat results from the combustion of coal in combination withscrap tires where scrap tires comprise not more than fifty percent of heat input in any month, spent nontoxic foundry sand, nontoxic, nonhazardous, unwanted fired and unfired, glazed and unglazed, structural shale and clay products, andslag and other substances that are not harmful or inimical topublic health, and includes, but is not limited to, garbage,scrap tires, combustible and noncombustible material, streetdirt, and debris. "Solid wastes" does not include ~~any~~ either of the following:

(2) Spent petroleum refinery hydrotreating, hydrorefining, and hydrocracking catalysts that are used to produce ferrovanadium, iron nickel molybdenum, and calcium aluminate alloys for the steel, iron, and nickel industries unless the catalysts are disposed of at a solid waste facility licensed under this chapter or are accumulated speculatively.

(F) "Disposal" means the discharge, deposit, injection,dumping, spilling, leaking, emitting, or placing of any solidwastes or hazardous waste into or on any land or ground orsurface water or into the air, except if the disposition orplacement constitutes storage or treatment or, if the solidwastes consist of scrap tires, the disposition or placementconstitutes a beneficial use or occurs at a scrap tire recoveryfacility licensed under section 3734.81 of the Revised Code.

(G) "Person" includes the state, any political subdivisionand other state or local body, the United States and any agencyor instrumentality thereof, and any legal entity defined as aperson under section 1.59 of the Revised Code.

(H) "Open burning" means the burning of solid wastes in anopen area or burning of solid wastes in a type of chamber orvessel that is not approved or authorized in rules adopted by thedirector under section 3734.02 of the Revised Code or, if thesolid wastes consist of scrap tires, in rules adopted underdivision (V) of this section or section 3734.73 of theRevisedCode, or the burning of treated or untreated infectious wastes inan open area or in a type of chamber or vessel that is notapproved in rules adopted by the director under section 3734.021of the Revised Code.

(I) "Open dumping" means the depositing of solid wastesinto a body or stream of water or onto the surface of the groundat a site that is not licensed as a solid waste facility undersection 3734.05 of the Revised Code or, if the solid wastesconsist of scrap tires, as a scrap tire collection, storage,monocell, monofill, or recovery facility under section 3734.81 ofthe Revised Code; the depositing of solid wastes that consist ofscrap tires onto the surface of the ground at a site or in amanner not specifically identified in divisions (C)(2) to (5),(7), or (10) of section 3734.85 of the Revised Code; thedepositing of untreated infectious wastes into a body or streamof water or onto the surface of the ground; or the depositing oftreated infectious wastes into a body or stream of water or ontothe surface of the ground at a site that is not licensed as asolid waste facility under section 3734.05 of the Revised Code.

(J) "Hazardous waste" means any waste or combination ofwastes in solid, liquid, semisolid, or contained gaseous formthat in the determination of the director, because of itsquantity, concentration, or physical or chemical characteristics,may do either of the following:

(1) Cause or significantly contribute to an increase inmortality or an increase in serious irreversible orincapacitating reversible illness;

(2) Pose a substantial present or potential hazard tohuman health or safety or to the environment when improperlystored, treated, transported, disposed of, or otherwise managed.

"Hazardous waste" includes any substance identified byregulation as hazardous waste under the "Resource Conservationand Recovery Act of 1976," 90 Stat. 2806, 42 U.S.C.A. 6921, asamended, and does not include any substance that is subject tothe "Atomic Energy Act of 1954," 68 Stat. 919, 42 U.S.C.A. 2011,as amended.

(K) "Treat" or "treatment," when used in connection withhazardous waste, means any method, technique, or process designedto change the physical, chemical, or biological characteristicsor composition of any hazardous waste; to neutralize the waste;to recover energy or material resources from the waste; to renderthe waste nonhazardous or less hazardous, safer to transport,store, or dispose of, or amenable for recovery, storage, furthertreatment, or disposal; or to reduce the volume of the waste.When used in connection with infectious wastes, "treat" or"treatment" means any method, technique, or process designed torender the wastes noninfectious, including, without limitation,steam sterilization and incineration, or, in the instance ofwastes identified in division (R)(7) of this section, tosubstantially reduce or eliminate the potential for the wastes tocause lacerations or puncture wounds.

(L) "Manifest" means the form used for identifying thequantity, composition, origin, routing, and destination ofhazardous waste during its transportation from the point ofgeneration to the point of disposal, treatment, or storage.

(M) "Storage," when used in connection with hazardouswaste, means the holding of hazardous waste for a temporaryperiod in such a manner that it remains retrievable andsubstantially unchanged physically and chemically and, at the endof the period, is treated; disposed of; stored elsewhere; orreused, recycled, or reclaimed in a beneficial manner. When usedin connection with solid wastes that consist of scrap tires,"storage" means the holding of scrap tires for a temporary periodin such a manner that they remain retrievable and, at the end ofthat period, are beneficially used; stored elsewhere; placed in ascrap tire monocell or monofill facility licensed under section3734.81 of the Revised Code; processed at a scrap tire recoveryfacility licensed under that section or a solid wasteincineration or energy recovery facility subject to regulationunder this chapter; or transported to a scrap tire monocell,monofill, or recovery facility, any other solid waste facilityauthorized to dispose of scrap tires, or a facility that willbeneficially use the scrap tires, that is located in anotherstate and is operating in compliance with the laws of the statein which the facility is located.

(N) "Facility" means any site, location, tract of land,installation, or building used for incineration, composting,sanitary landfilling, or other methods of disposal of solidwastes or, if the solid wastes consist of scrap tires, for thecollection, storage, or processing of the solid wastes; for thetransfer of solid wastes; for the treatment of infectious wastes;or for the storage, treatment, or disposal of hazardous waste.

(O) "Closure" means the time at which a hazardous wastefacility will no longer accept hazardous waste for treatment,storage, or disposal, the time at which a solid waste facilitywill no longer accept solid wastes for transfer or disposal or,if the solid wastes consist of scrap tires, for storage orprocessing, or the effective date of an order revoking the permitfor a hazardous waste facility or the registration certificate,permit, or license for a solid waste facility, as applicable. "Closure" includes measures performed to protect public health orsafety, to prevent air or water pollution, or to make thefacility suitable for other uses, if any, including, but notlimited to, the removal of processing residues resulting fromsolid wastes that consist of scrap tires; the establishment andmaintenance of a suitable cover of soil and vegetation over cellsin which hazardous waste or solid wastes are buried; minimizationof erosion, the infiltration of surface water into such cells,the production of leachate, and the accumulation and runoff ofcontaminated surface water; the final construction of facilitiesfor the collection and treatment of leachate and contaminatedsurface water runoff, except as otherwise provided in thisdivision; the final construction of air and water qualitymonitoring facilities, except as otherwise provided in thisdivision; the final construction of methane gas extraction andtreatment systems; or the removal and proper disposal ofhazardous waste or solid wastes from a facility when necessary toprotect public health or safety or to abate or prevent air orwater pollution. With regard to a solid waste facility that is ascrap tire facility, "closure" includes the final construction offacilities for the collection and treatment of leachate andcontaminated surface water runoff and the final construction ofair and water quality monitoring facilities only if those actionsare determined to be necessary.

(2) Noncontiguous property that is owned by a generatorand connected by a right-of-way that the generator controlsand to which thepublic does not have access. Two or more pieces of property thatare geographically contiguous and divided by public or privateright-of-way or rights-of-way are a single premises.

(Q) "Post-closure" means that period of time followingclosure during which a hazardous waste facility is required to bemonitored and maintained under this chapter and rules adoptedunder it, including, without limitation, operation andmaintenance of methane gas extraction and treatment systems, orthe period of time after closure during which a scrap tiremonocell or monofill facility licensed under section 3734.81 ofthe Revised Code is required to be monitored and maintained underthis chapter and rules adopted under it.

(R) "Infectious wastes" includes all of the followingsubstances or categories of substances:

(1) Cultures and stocks of infectious agents andassociated biologicals, including, without limitation, specimencultures, cultures and stocks of infectious agents, wastes fromproduction of biologicals, and discarded live and attenuatedvaccines;

(2) Laboratory wastes that were, or are likely to havebeen, in contact with infectious agents that may present asubstantial threat to public health if improperly managed;

(3) Pathological wastes, including, without limitation,human and animal tissues, organs, and body parts, and body fluidsand excreta that are contaminated with or are likely to becontaminated with infectious agents, removed or obtained duringsurgery or autopsy or for diagnostic evaluation, provided that, withregard to pathological wastes from animals, the animals have or are likely tohave been exposed to a zoonotic or infectious agent;

(4) Waste materials from the rooms of humans, or theenclosures of animals, that have been isolated because ofdiagnosed communicable disease that are likely to transmitinfectious agents. Such waste materials from the rooms of humansdo not include any wastes of patients who have been placed onblood and body fluid precautions under the universal precautionsystem established by the centers for disease control in thepublic health service of the United States department of healthand human services, except to the extent specific wastesgenerated under the universal precautions system have beenidentified as infectious wastes by rules adopted under division(R)(8) of this section.

(5) Human and animal blood specimens and blood productsthat are being disposed of, provided that, withregard to blood specimens and blood products from animals, the animals wereor are likely to have been exposed to a zoonotic or infectiousagent. "Bloodproducts" does notinclude patient care waste such as bandages or disposable gownsthat are lightly soiled with blood or other body fluids unlessthose wastes are soiled to the extent that the generator of thewastes determines that they should be managed as infectiouswastes.

(6) Contaminated carcasses, body parts, and bedding ofanimals that were intentionally exposed to infectious agents from zoonoticor human diseasesduring research, production of biologicals, or testing ofpharmaceuticals, and carcasses and bedding of animals otherwiseinfected by zoonotic or infectious agents that may present asubstantial threat topublic healthif improperly managed;

(7) Sharp wastes used in the treatment, diagnosis, orinoculation of human beings or animals or that have, or arelikely to have, come in contact with infectious agents inmedical, research, or industrial laboratories, including, withoutlimitation, hypodermic needles and syringes, scalpel blades, andglass articles that have been broken;

(8) Any other waste materials generated in the diagnosis,treatment, or immunization of human beings or animals, inresearch pertaining thereto, or in the production or testing ofbiologicals, that the public health council created in section3701.33 of the Revised Code, by rules adopted in accordance withChapter 119. of the Revised Code, identifies as infectious wastesafter determining that the wastes present a substantial threat tohuman health when improperly managed because they arecontaminated with, or are likely to be contaminated with,infectious agents.

(S) "Infectious agent" means a type of microorganism,helminth, or virus that causes, or significantly contributes tothe cause of, increased morbidity or mortality of human beings.

(T) "Zoonotic agent" means a type of microorganism,helminth, or virus that causes disease in vertebrate animals andthat is transmissible to human beings and causes orsignificantly contributes to the cause of increased morbidity ormortality of human beings.

(U) "Solid waste transfer facility" means any site,location, tract of land, installation, or building that is usedor intended to be used primarily for the purpose of transferringsolid wastes that were generated off the premises of the facilityfrom vehicles or containers into other vehicles fortransportation to a solid waste disposal facility. "Solid wastetransfer facility" does not include any facility that consistssolely of portable containers that have an aggregate volume offifty cubic yards or less nor any facility where legitimaterecycling activities are conducted.

(V) "Beneficially use" means to use a scrap tire in amanner that results in a commodity for sale or exchange or in anyother manner authorized as a beneficial use in rules adopted bythe director in accordance with Chapter 119. of the Revised Code.

(W) "Commercial car," "commercial tractor," "farmmachinery," "motor bus," "vehicles," "motor vehicle," and"semitrailer" have the same meanings as in section 4501.01 of theRevised Code.

(X) "Construction equipment" means road rollers, tractionengines, power shovels, power cranes, and other equipment used inconstruction work, or in mining or producing or processingaggregates, and not designed for or used in general highwaytransportation.

(Y) "Motor vehicle salvage dealer" has the same meaning asin section 4738.01 of the Revised Code.

(AA) "Scrap tire collection facility" means any facilitythat meets all of the following qualifications:

(1) The facility is used for the receipt and storage ofwhole scrap tires from the public prior to their transportationto a scrap tire storage, monocell, monofill, or recovery facilitylicensed under section 3734.81 of the Revised Code; a solid wasteincineration or energy recovery facility subject to regulationunder this chapter; a premises within the state where the scraptires will be beneficially used; or a scrap tire storage,monocell, monofill, or recovery facility, any other solid wastedisposal facility authorized to dispose of scrap tires, or afacility that will beneficially use the scrap tires, that islocated in another state, and that is operating in compliancewith the laws of the state in which the facility is located;.

(3) The aggregate storage of the portable containers inwhich the scrap tires are stored does not exceed five thousandcubic feet.

(BB) "Scrap tire monocell facility" means an individualsite within a solid waste landfill that is used exclusively forthe environmentally sound storage or disposal of whole scraptires or scrap tires that have been shredded, chipped, orotherwise mechanically processed.

(CC) "Scrap tire monofill facility" means an engineeredfacility used or intended to be used exclusively for the storageor disposal of scrap tires, including at least facilities for thesubmergence of whole scrap tires in a body of water.

(DD) "Scrap tire recovery facility" means any facility, orportion thereof, for the processing of scrap tires for thepurpose of extracting or producing usable products, materials, orenergy from the scrap tires through a controlled combustionprocess, mechanical process, or chemical process. "Scrap tirerecovery facility" includes any facility that uses the controlledcombustion of scrap tires in a manufacturing process to produceprocess heat or steam or any facility that produces usable heator electric power through the controlled combustion of scraptires in combination with another fuel, but does not include anysolid waste incineration or energy recovery facility that isdesigned, constructed, and used for the primary purpose ofincinerating mixed municipal solid wastes and that burns scraptires in conjunction with mixed municipal solid wastes, or anytire retreading business, tire manufacturing finishing center, ortire adjustment center having on the premises of the business asingle, covered scrap tire storage area at which not more thanfour thousand scrap tires are stored.

(EE) "Scrap tire storage facility" means any facilitywhere whole scrap tires are stored prior to their transportationto a scrap tire monocell, monofill, or recovery facility licensedunder section 3734.81 of the Revised Code; a solid wasteincineration or energy recovery facility subject to regulationunder this chapter; a premises within the state where the scraptires will be beneficially used; or a scrap tire storage,monocell, monofill, or recovery facility, any other solid wastedisposal facility authorized to dispose of scrap tires, or afacility that will beneficially use the scrap tires, that islocated in another state, and that is operating in compliancewith the laws of the state in which the facility is located.

(FF) "Used oil" means any oil that has been refinedfrom crude oil, or any synthetic oil, that has been used and, as a result ofthat use, is contaminated by physical or chemical impurities. "Used oil"includes only those substances identified as used oil by theUnited States environmental protection agency under the "Used OilRecycling Act of 1980," 94 Stat. 2055, 42 U.S.C.A. 6901a, as amended.

(GG) "Accumulated speculatively" has the same meaning as in rules adopted by the director under section 3734.12 of the Revised Code.

Sec. 3734.20. (A) If the director of environmentalprotection has reason to believe that hazardous waste wastreated, stored, or disposed of at any location within the state,he the director may conduct such investigations and make suchinquiries, including obtaining samples and examining and copying records, asare reasonable or necessary to determine if conditions at ahazardous waste facility, solid waste facility, or other locationwhere the director has reason to believe hazardous waste wastreated, stored, or disposed of constitute a substantial threatto public health or safety or are causing or contributing to orthreatening to cause or contribute to air or water pollution orsoil contamination. The director or the director'sauthorizedrepresentative may apply for, and any judge of a court of commonpleas shall issue, an appropriate search warrant necessary toachieve the purposes of this section within the court'sterritorial jurisdiction. The director may expend moneys fromthe hazardous waste clean-up fund created in section 3734.28 ofthe Revised Code or the environmental protection remediation fund created in section 3734.281 of the Revised Code for conducting investigations under thissection.

(B) If the director determines that conditions at ahazardous waste facility, solid waste facility, or other locationwhere hazardous waste was treated, stored, or disposed ofconstitute a substantial threat to public health or safety or arecausing or contributing to or threatening to cause or contributeto air or water pollution or soil contamination, the director shallinitiate appropriate action under this chapter or Chapter 3704.or 6111. of the Revised Code or seek any other appropriate legalor equitable remedies to abate the pollution or contamination orto protect public health or safety.

If an order of the director to abate or prevent air orwater pollution or soil contamination or to remedy a threat topublic health or safety caused by conditions at such a facilityissued pursuant to this chapter or Chapter 3704. or 6111. of theRevised Code is not wholly complied with within the timeprescribed in the order, the director may, through officers oremployees of the environmental protection agency or throughcontractors employed for that purpose in accordance with thebidding procedure established in division (C) of section 3734.23of the Revised Code, enter upon the facility and perform thosemeasures necessary to abate or prevent air or water pollution orsoil contamination from the facility or to protect public healthor safety, including, but not limited to, measures prescribed indivision (B) of section 3734.23 of the Revised Code. Thedirector shall keep an itemized record of the cost of theinvestigation and measures performed, including costs for labor,materials, and any contract services required. Upon completionof the investigation or measures, the director shallrecord thecost of performing those measures at the office of thecounty recorder of the county inwhich the facility is located. The costso recorded constitutes a lien against the propertyon which the facilityis located untildischarged. Upon written request of the director, the attorneygeneral shall institute a civil action to recover the cost. Anymoneys so received shall be credited to the hazardous wasteclean-up fund ~~created in section 3734.28 of the Revised Code~~ or the environmental protection remediation fund, as applicable.

When entering upon a facility under this division, thedirector shall perform or cause to be performed only thosemeasures necessary to abate or prevent air or water pollution orsoil contamination caused by conditions at the facility or toabate threats to public health or safety caused by conditions atthe facility. For this purpose the director may expend moneysfrom ~~the~~ either fund and may expend moneys from loans from the Ohiowater development authority to the environmental protectionagency that pledge moneys from ~~the~~ either fund for the repayment of andfor the interest on such loans.

Sec. 3734.21. (A) The director of environmentalprotection may expend moneys credited to the hazardous wasteclean-up fund created in section 3734.28 of the Revised Code or the environmental protection remediation fund created in section 3734.281 of the Revised Code forthe payment of the cost of measures necessary for the properclosure of hazardous waste facilities or any solid wastefacilities containing significant quantities of hazardous waste,for the payment of costs of the development and construction ofsuitable hazardous waste facilities required by division (B) ofsection 3734.23 of the Revised Code to the extent the directordetermines that such facilities are not available, and for thepayment of costs that are necessary to abate conditions thereonthat are causing or contributing to or threatening to cause orcontribute to air or water pollution or soil contamination orthat constitute a substantial threat to public health or safety.In addition, the director may expend and pledge moneys creditedto ~~the~~ either fund for repayment of and for interest on any loan made bythe Ohio water development authority to the environmentalprotection agency for the payment of such costs.

(B) Before beginning to clean up any facility under thissection, the director shall develop a plan for the cleanup and anestimate of the cost thereof. The plan shall include only thosemeasures necessary to abate conditions thereon that are causingor contributing to or threatening to cause or contribute to airor water pollution or soil contamination or that constitute asubstantial threat to public health or safety, including, but notlimited to, establishment and maintenance of an adequate cover ofsoil and vegetation on any facility for the burial of hazardouswaste to prevent the infiltration of water into cells wherehazardous waste is buried, the accumulation or runoff ofcontaminated surface water, the production of leachate, and airemissions of hazardous waste; the collection and treatment ofcontaminated surface water runoff; the collection and treatmentof leachate; or, if conditions so require, the removal ofhazardous waste from the facility and the treatment or disposalof the waste at a suitable hazardous waste facility. The plan orany part of the plan for the cleanup of the facility shall becarried out by entering into contracts therefor in accordance with the procedures established in division (C) of section 3734.23 of the Revised Code.

Sec. 3734.22. Before beginning to clean up any facilityunder section 3734.21 of the Revised Code, the director ofenvironmental protection shall endeavor to enter into anagreement with the owner of the land on which the facility islocated, or with the owner of the facility, specifying themeasures to be performed and authorizing the director, employeesof the agency, or contractors retained by the director to enterupon the land and perform the specified measures.

Each agreement ~~shall~~ may contain provisions for thereimbursement of the state for the costs of the cleanup.

All reimbursements and payments shall be credited to thehazardous waste clean-up fund created in section 3734.28 of theRevised Code or the environmental protection remediation fund created in section 3734.281 of the Revised Code, as applicable.

The agreement may require the owner to execute an easementwhereby the director, an authorized employee of the agency, or acontractor employed by the agency in accordance with the biddingprocedure established in division (C) of section 3734.23 of theRevised Code may enter upon the facility to sample, repair, orreconstruct air and water quality monitoring equipmentconstructed under the agreement. Such easements shall be for aspecified period of years and may be extinguished by agreementbetween the owner and the director. When necessary to protectthe public health or safety, the agreement may require the ownerto enter into an environmental covenant with the director in accordance with sections 5301.80 to 5301.92 of the Revised Code.

Upon a breach of the reimbursement provisions of theagreement by the owner of the land or facility, or uponnotification to the director by the owner that the owner isunable toperform the duties under the reimbursement provisions of theagreement, the director ~~shall~~ may record the unreimbursedportion ofthe costs of cleanup at the office of the countyrecorder of the county in whichthe facility is located. The costs sorecorded constitute a lien against the property onwhich the facility islocated untildischarged. Upon written request of the director, the attorneygeneral shall institute a civil action to recover theunreimbursed portion of the costs of cleanup. Any moneys sorecovered shall be credited to the hazardous waste clean-up fund or the environmental protection remediation fund, as applicable.

Sec. 3734.23. (A) The director of environmentalprotection may acquire by purchase, gift, donation, contribution,or appropriation in accordance with sections 163.01 to 163.21 ofthe Revised Code any hazardous waste facility or any solid wastefacility containing significant quantities of hazardous wastethat, because of its condition and the types and quantities ofhazardous waste contained in the facility, constitutes animminent and substantial threat to public health or safety orresults in air pollution, pollution of the waters of the state,or soil contamination. For this purpose and for the purposes ofdivision (B) of this section, the director may expend moneys fromthe hazardous waste clean-up fund created in section 3734.28 ofthe Revised Code or the environmental protection remediation fund created in section 3734.281 of the Revised Code and may expend moneys from loans from the Ohiowater development authority to the environmental protectionagency that pledge moneys from ~~the~~ either fund for the repayment of andfor the interest on such loans. Any lands or facilitiespurchased or acquired under this section shall be deeded to thestate, but no deed shall be accepted or the purchase price paiduntil the title has been approved by the attorney general.

(B) The director shall, with respect to any land orfacility acquired under this section or cleaned up under section3734.20 of the Revised Code, perform closure or other measuresnecessary to abate conditions thereon that are causing orcontributing to or threatening to cause or contribute to air orwater pollution or soil contamination or that constitute asubstantial threat to public health or safety, including, but notlimited to, establishment and maintenance of an adequate cover ofsoil and vegetation on any facility for the burial of hazardouswaste to prevent the infiltration of water into cells wherehazardous waste is buried, the accumulation or runoff ofcontaminated surface water, the production of leachate, and airemissions of hazardous waste; the collection and treatment ofcontaminated surface water runoff; the collection and treatmentof leachate; or, if conditions so require, the removal ofhazardous waste from the facility and the treatment or disposalof the waste at a suitable hazardous waste facility. Afterperforming these measures, the director shall provide for thepost-closure care, maintenance, and monitoring of facilitiescleaned up under this section.

(C) Before proceeding to clean up any facility under thissection or section 3734.20 or 3734.21 of the Revised Code, the directorshall develop a plan for the cleanup of the facility and anestimate of the cost thereof. The director may carry out theplan or any part of the plan by contracting for the services, construction, and repair necessary therefor. Thedirector shall award each such contract to the lowest responsiblebidder after sealed bids therefor are received, opened, andpublished at the time fixed by the director and notice of thetime and place at which the sealed bids will be received, opened,and published has been published by the director in a newspaperof general circulation in the county in which the facility to becleaned up under the contract is located at least once within theten days before the opening of the bids. However, if afteradvertising for bids for the contract, no bids are received bythe director at the time and place fixed for receiving them, thedirector may advertise again for bids, or he the director may,if he the director considers the public interest will best beserved thereby, enter into acontract for the cleanup of the facility without furtheradvertisement for bids. The director may reject any or all bidsreceived and fix and publish again notice of the time and placeat which bids for the contracts will be received, opened, andpublished.

(D) The director shall keep an itemized record of thecosts of any acquisition under division (A) of this section andthe costs of cleanup under division (B) of this section.

Sec. 3734.28. All moneys collected under sections 3734.122,3734.13,3734.20,3734.22, 3734.24, and 3734.26 of the RevisedCode and natural resource damagescollected by the state under the"Comprehensive Environmental Response,Compensation, and LiabilityAct of 1980," 94 Stat. 2767, 42 U.S.C.A. 9601, as amended, shallbepaid intothe state treasury to the credit of the hazardouswaste clean-up fund, whichis hereby created. In addition, any moneys recovered for costs paid from the fund for activities described in division (A)(1) and (2) of section 3745.12 of the Revised Code shall be credited to the fund. The environmentalprotection agency shall use the moneysin the fund for thepurposes set forth in division (D) of section3734.122, sections3734.19, 3734.20, 3734.21, 3734.23,3734.25, 3734.26, and3734.27, and, through October 15, 2005,divisions (A)(1) and (2)ofsection 3745.12 andChapter 3746. of the RevisedCode,includingany related enforcement expenses. In addition, theagencyshalluse the moneys in the fund to pay the state'slong-term operationandmaintenance costs or matching share foractions taken underthe"Comprehensive Environmental Response,Compensation, andLiability Act of 1980," asamended. If thosemoneys arereimbursed by grants or other moneys from theUnitedStates or anyother person, the moneys shall beplaced in the fundand not inthe general revenue fund.

Sec. 3734.57. (A) For the purposes of paying the state'slong-term operation costs or matching share for actions takenunder the"Comprehensive Environmental Response, Compensation,andLiability Act of 1980," 94 Stat. 2767, 42 U.S.C.A. 9601, asamended; paying the costs of measures for proper clean-up ofsiteswhere polychlorinated biphenyls and substances, equipment,anddevices containing or contaminated with polychlorinatedbiphenylshave been stored or disposed of; paying the costs ofconductingsurveys or investigations of solid waste facilities orotherlocations where it is believed that significant quantitiesofhazardous waste were disposed of and for conductingenforcementactions arising from the findings of such surveys orinvestigations; paying the costs of acquiring and cleaningup, orproviding financial assistance for cleaning up, anyhazardouswaste facility or solid waste facility containingsignificantquantities of hazardous waste, that constitutes animminent andsubstantial threat to public health or safety or theenvironment;and, from July 1, 2003, through June 30, 2006,for thepurposesof paying the costs of administering andenforcing thelawspertaining to solid wastes, infectious wastes,andconstructionand demolition debris, including, withoutlimitation,ground waterevaluations related to solid wastes,infectiouswastes, andconstruction and demolition debris, underthis chapterand Chapter3714. of the Revised Code and any rulesadopted underthem, andpaying a share of the administrativecosts of theenvironmentalprotection agency pursuant to section3745.014 ofthe RevisedCode, the The following fees are herebylevied on thedisposal ofsolid wastes in this state:

(1) One dollar per ton on and after July 1, ~~1993~~2003, through June 30, 2008, one-half of the proceeds of which shall be deposited in the state treasury to the credit of the hazardous waste facility management fund created in section 3734.18 of the Revised Code and one-half of the proceeds of which shall be deposited in the state treasury to the credit of the hazardous waste clean-up fund created in section 3734.28 of the Revised Code;

(2) An additional one dollar per ton onand afterJuly 1, 2003, through June 30, ~~2006~~ 2008, the proceeds of which shall be deposited in the state treasury to the credit of the solid waste fund, which is hereby created. The environmental protection agency shall use money in the solid waste fund to pay the costs of administering and enforcing the laws pertaining to solid wastes, infectious wastes, and construction and demolition debris, including, without limitation, ground water evaluations related to solid wastes, infectious wastes, and construction and demolition debris, under this chapter and Chapter 3714. of the Revised Code and any rules adopted under them, providing compliance assistance to small businesses, and paying a share of the administrative costs of the environmental protection agency pursuant to section 3745.014 of the Revised Code.

(3) An additional one dollar and fifty cents per ton on and after July 1, 2005, through June 30, 2008, the proceeds of which shall be deposited in the state treasury to the credit of the environmental protection fund created in section 3745.015 of the Revised Code.

In the case of solid wastes that are taken to a solid waste transfer facility located in this state prior to being transported to a solid waste disposal facility for disposal, the fees levied under this division shall be collected by the owner or operator of the transfer facility as a trustee for the state. The amount of fees required to be collected under this division at such a transfer facility shall equal the total tonnage of solid wastes received at the facility multiplied by the fees levied under this division. In the case of solid wastes that are not taken to a solid waste transfer facility located in this state prior to being transported to a solid waste disposal facility, the fees shall be collected by the owner or operator of the solid waste disposal facility as a trustee for the state. The amount of fees required to be collected under this division at such a disposal facility shall equal the total tonnage of solid wastes received at the facility that was not previously taken to a solid waste transfer facility located in this state multiplied by the fees levied under this division. Fees levied under this division do not apply to materials separated from a mixed waste stream for recycling by a generator or materials removed from the solid waste stream through recycling, as "recycling" is defined in rules adopted under section 3734.02 of the Revised Code.

The owner or operator of a solid waste transfer facility or disposal facility~~shall collect the fees levied under this division as a trusteeforthe state and~~, as applicable, shall prepare and file with the director ofenvironmental protection ~~monthly returns~~ each month a return indicating the totaltonnage of solid wastes received ~~for disposal~~ at ~~the gate of~~ thefacility during that month and the total amount of the fees required to be collected under thisdivision during that month. In addition, the owner or operator of a solid waste disposal facility shall indicate on the return the total tonnage of solid wastes received from transfer facilities located in this state during that month for which the fees were required to be collected by the transfer facilities. The monthly returns shall be filed on a form prescribed by the director. Not later than thirty days after the last day of themonth to which ~~such~~ a return applies, the owner or operator shallmail to the director the return for that month together with thefees required to be collected under this division during that month as indicated on the return. ~~The~~ If the return is filed and the amount of the fees due is paid in a timely manner as required in this division, the owner or operator may retain a discount of three-fourths of one per cent of the total amount of the fees that are required to be paid as indicated on the return.

Theowner or operator may request an extension of not more thanthirtydays for filing the return and remitting the fees,provided thatthe owner or operator has submitted such arequest in writing tothedirector together with a detailed description of why theextension is requested, the director has received the request notlater than the day on which the return is required to be filed,and the director has approved the request. If the fees are notremitted within thirty days after the last day of the month ~~duringwhich they were collected~~ to which the return applies or are not remitted by the last day of an extension approved by the director, the owner or operator shall not retain the three-fourths of one per cent discount and shall pay anadditional ~~fifty~~ ten per cent of the amount of the fees for eachmonththat they are late. For purposes of calculating the late fee, the first month in which fees are late begins on the first day after the deadline has passed for timely submitting the return and fees, and one additional month shall be counted every thirty days thereafter.

One-half of the moneys remitted to the director underdivision (A)(1) of this section shall be credited to thehazardouswaste facility management fund created in section3734.18 of theRevised Code, and one-half shall be credited tothe hazardouswaste clean-up fund created in section 3734.28 ofthe RevisedCode. The moneys remitted to the director underdivision (A)(2)of this section shall be credited to the solidwaste fund, whichis hereby created in the state treasury. Theenvironmentalprotection agency shall use moneys in the solidwaste fund only topay the costs of administering and enforcingthe laws pertainingto solid wastes, infectious wastes, andconstruction anddemolition debris, including, withoutlimitation, ground waterevaluations related to solid wastes,infectious wastes, andconstruction and demolition debris, underthis chapter and Chapter3714. of the Revised Code and rulesadoptedunder them and to paya share of the administrative costs of theenvironmentalprotection agency pursuant to section 3745.014 ofthe RevisedCode.

The owner or operator of a solid waste facility may request a refund or credit of fees levied under this division and remitted to the director that have not been paid to the owner or operator. Such a request shall be made only if the fees have not been collected by the owner or operator, have become a debt that has become worthless or uncollectable for a period of six months or more, and may be claimed as a deduction, including a deduction claimed if the owner or operator keeps accounts on an accrual basis, under the "Internal Revenue Code of 1954," 68A Stat. 50, 26 U.S.C. 166, as amended, and regulations adopted under it. Prior to making a request for a refund or credit, an owner or operator shall make reasonable efforts to collect the applicable fees. A request for a refund or credit shall not include any costs resulting from those efforts to collect unpaid fees.

A request for a refund or credit of fees shall be made in writing, on a form prescribed by the director, and shall be supported by evidence that may be required in rules adopted by the director under this chapter. After reviewing the request, the director may grant a refund to the owner or operator or may permit a credit to be taken by the owner or operator on a subsequent monthly return submitted by the owner or operator. The amount of a refund or credit shall not exceed an amount that is equal to ninety days' worth of fees owed to an owner or operator by a particular debtor of the owner or operator. A refund or credit shall not be granted by the director to an owner or operator more than once in any twelve-month period for fees owed to the owner or operator by a particular debtor.

If, after receiving a refund or credit from the director, an owner or operator receives payment of all or part of the fees, the owner or operator shall remit the fees with the next monthly return submitted to the director together with a written explanation of the reason for the submittal.

For purposes of computing the fees levied under this division or division (B) of this section, any solid waste transfer or disposal facility that does not use scales as a means of determining gate receipts shall use a conversion factor of three cubic yards per ton of solid waste or one cubic yard per ton for baled waste, as applicable.

The fees levied under this division and divisions (B) and(C)of this section are in addition to all other applicable feesandtaxes and shall be ~~added to any other fee or amount specifiedin acontract that is charged~~ paid by the customer to the owner or operator of a solidwastetransfer or disposal facility ~~or to any other fee or amount that isspecifiedin a contract entered into on or after March 4, 1992,and that ischarged by a transporter of solid wastes~~ notwithstanding the existence of any provision in a contract that the customer may have with the owner or operator that would not require or allow such payment.

(B) For the purpose of preparing, revising, andimplementingthe solid waste management plan of the county orjoint solid wastemanagement district, including, withoutlimitation, thedevelopment and implementation of solid wasterecycling orreduction programs; providing financial assistanceto boards ofhealth within the district, if solid wastefacilities are locatedwithin the district, for the enforcementof this chapter and rulesadoptedand orders and terms and conditions of permits, licenses,andvariances issued under it, other than the hazardous wasteprovisions of this chapter and rules adopted and orders and termsand conditions of permits issued under those provisions;providingfinancialassistance to the county to defray the added costs ofmaintainingroads and other public facilities and of providingemergency andother public services resulting from the locationand operationof a solid waste facility within the county underthe district'sapproved solid waste management plan; paying thecosts incurredby boards of health for collecting and analyzingwater samplesfrom public or private wells on lands adjacent tosolid wastefacilities that are contained in the approved oramended plan ofthe district; paying the costs of developing andimplementing aprogram for the inspection of solid wastesgenerated outside theboundaries of this state that are disposedof at solid wastefacilities included in the district's approvedsolid wastemanagement plan or amended plan; providing financialassistanceto boards of health within the district for enforcinglawsprohibiting open dumping; providing financial assistance tolocallaw enforcement agencies within the district for enforcinglawsand ordinances prohibiting littering; providing financialassistance to boards of health of health districts within thedistrict that are on the approved list under section 3734.08 ofthe Revised Code for the training and certification required fortheir employees responsible for solid waste enforcement by rulesadopted under division (L) of section 3734.02 of the RevisedCode;providing financial assistance to individual municipalcorporations and townships within the district to defray theiradded costs of maintaining roads and other public facilities andof providing emergency and other public services resulting fromthe location and operation within their boundaries of acomposting, energy or resource recovery, incineration, orrecycling facility that either is owned by the district or isfurnishing solid waste management facility or recycling servicesto the district pursuant to a contract or agreement with theboardof county commissioners or directors of the district; andpaymentof any expenses that are agreed to, awarded, or ordered to be paidunder section 3734.35 of the Revised Codeand of anyadministrative costs incurred pursuantto that section purposes specified in division (G) of this section, the solidwaste management policy committee of a countyor joint solid wastemanagement district may levy fees upon the followingactivities:

(1) The disposal at a solid waste disposal facilitylocatedin the district of solid wastes generated within thedistrict;

(2) The disposal at a solid waste disposal facility withinthe district of solid wastes generated outside the boundaries ofthe district, but inside this state;

(3) The disposal at a solid waste disposal facility withinthe district of solid wastes generated outside the boundaries ofthis state.

~~If any such fees are levied prior to January 1, 1994, fees~~ levied under division (B)(1) of this section always shall beequalto one-half of the fees levied under division (B)(2) ofthissection, and fees levied under division (B)(3) of thissection,which shall be in addition to fees levied under division(B)(2) ofthis section, ~~always shall be equal to fees leviedunder division(B)(1) of this section, except as otherwiseprovided in thisdivision.~~ The solid waste management plan ofthe county or jointdistrict approved under section 3734.521 or3734.55 of the RevisedCode and any amendments to it, or theresolution adopted underthis division, as appropriate, shallestablish the rates of thefees levied under divisions (B)(1),(2), and (3) of this section,if any, and shall specify whetherthe fees are levied on the basisof tons or cubic yards as theunit of measurement. ~~Although thefees under divisions (A)(1)and (2) of this section are levied onthe basis of tons as theunit of measurement, the~~ A solid wastemanagement ~~plan of the~~district ~~and any amendments to it or thesolid waste managementpolicy committee in its resolution levyingfees under thisdivision may direct~~ that ~~the~~ levies fees ~~levied~~ under~~those divisions belevied~~ this division on the basis of cubic yards as the unitof measurementbased upon a conversion factor of three cubic yardsper tongenerally or one cubic yard per ton for baled wastes ifthe feesunder divisions (B)(1) to (3) of this section are beinglevied onthe basis of cubic yards as the unit of measurementunder theplan, amended plan, or resolution shall do so in accordance with division (A) of this section.

~~On and after January 1, 1994, the~~ The fee levied under division(B)(1) of this section shall be not less than one dollar per tonnor more than two dollars per ton, the fee levied under division(B)(2) of this section shall be not less than two dollars per tonnor more than four dollars per ton, and the fee levied underdivision (B)(3) of this section shall be not more than the feelevied under division (B)(1) of this section, except as otherwiseprovided in this division and notwithstanding any schedule ofthose fees established in the solid waste management plan of acounty or joint district approved under section 3734.55 of theRevised Code or a resolution adopted and ratified under thisdivision that is in effect on that date. If the fee that adistrict is levying under division (B)(1) of this section on thatdate under its approved plan or such a resolution is less thanonedollar per ton, the fee shall be one dollar per ton on andafterJanuary 1, 1994, and if the fee that a district is solevyingunder that division exceeds two dollars per ton, the feeshall betwo dollars per ton on and after that date. If the feethat adistrict is so levying under division (B)(2) of thissection isless than two dollars per ton, the fee shall be twodollars perton on and after that date, and if the fee that thedistrict is solevying under that division exceeds four dollarsper ton, the feeshall be four dollars per ton on and after thatdate. On thatdate, the fee levied by a district under division(B)(3) of thissection shall be equal to the fee levied underdivision (B)(1) ofthis section. Except as otherwise provided inthis division, thefees established by the operation of thisamendment shall remainin effect until the district's resolutionlevying fees under thisdivision is amended or repealed inaccordance with this divisionto amend or abolish the schedule offees, the schedule of fees isamended or abolished in an amendedplan of the district approvedunder section 3734.521 or division(A) or (D) of section 3734.56of the Revised Code, or theschedule of fees is amended orabolished through an amendment tothe district's plan underdivision (E) of section 3734.56 of theRevised Code; thenotification of the amendment or abolishment ofthe fees has beengiven in accordance with this division; andcollection of theamended fees so established commences, orcollection of the feesceases, in accordance with this division.

The solid waste management policy committee of a districtlevying fees under divisions (B)(1) to (3) of thissection onOctober 29, 1993, under its solid waste management planapprovedunder section 3734.55 of theRevised Code or a resolution adoptedand ratified under thisdivision that are within the ranges ofrates prescribed by thisamendment, by adoption of a resolutionnot later than December 1,1993, and without the necessity forratification of theresolution under this division, may amendthose fees within theprescribed ranges, provided that theestimated revenues from theamended fees will not substantiallyexceed the estimated revenuesset forth in the district's budgetfor calendar year 1994. Notlater than seven days after theadoption of such a resolution,the committee shall notify bycertified mail the owner oroperator of each solid waste disposalfacility that is requiredto collect the fees of the adoption ofthe resolution and of theamount of the amended fees. Collectionof the amended fees shalltake effect on the first day of thefirst month following themonth in which the notification is sentto the owner or operator. Thefees established in such aresolution shall remain in effectuntil the district's resolutionlevying fees that was adopted andratified under this division isamended or repealed, and theamendment or repeal of the resolutionis ratified, in accordancewith this division, to amend or abolishthe fees, the schedule offees is amended or abolished in anamended plan of the districtapproved under section 3734.521 ordivision(A) or (D) of section 3734.56 of the Revised Code, or theschedule of fees is amended or abolished through an amendment tothe district's plan under division (E) of section 3734.56 of theRevised Code; the notification of the amendment or abolishment ofthe fees has been given in accordance with this division; andcollection of the amended fees so established commences, orcollection of the fees ceases, in accordance with this division.

Prior to the approval of the solid waste management plan of~~the~~ a district under section 3734.55 of the Revised Code, the solidwaste management policy committee of a district may levy feesunder this division by adopting a resolution establishing theproposed amount of the fees. Upon adopting the resolution, thecommittee shall deliver a copy of the resolution to the board ofcounty commissioners of each county forming the district and tothe legislative authority of each municipal corporation andtownship under the jurisdiction of the district and shall prepareand publish the resolution and a notice of the time and locationwhere a public hearing on the fees will be held. Upon adoptingthe resolution, the committee shall deliver written notice of theadoption of the resolution; of the amount of the proposed fees;and of the date, time, and location of the public hearing to thedirector and to the fifty industrial, commercial, orinstitutionalgenerators of solid wastes within the district thatgenerate thelargest quantities of solid wastes, as determined bythecommittee, and to their local trade associations. Thecommitteeshall make good faith efforts to identify thosegenerators withinthe district and their local tradeassociations, but thenonprovision of notice under this divisionto a particulargenerator or local trade association does notinvalidate theproceedings under this division. The publicationshall occur atleast thirty days before the hearing. After thehearing, thecommittee may make such revisions to the proposedfees as itconsiders appropriate and thereafter, by resolution,shall adoptthe revised fee schedule. Upon adopting the revisedfee schedule,the committee shall deliver a copy of theresolution doing so tothe board of county commissioners of eachcounty forming thedistrict and to the legislative authority ofeach municipalcorporation and township under the jurisdiction ofthe district.Within sixty days after the delivery of a copy ofthe resolutionadopting the proposed revised fees by the policycommittee, eachsuch board and legislative authority, byordinance or resolution,shall approve or disapprove the revisedfees and deliver a copy ofthe ordinance or resolution to thecommittee. If any such boardor legislative authority fails toadopt and deliver to the policycommittee an ordinance orresolution approving or disapproving therevised fees withinsixty days after the policy committeedelivered its resolutionadopting the proposed revised fees, itshall be conclusivelypresumed that the board or legislativeauthority has approved theproposed revised fees. The committee shall determine if the resolution has been ratified in the same manner in which it determines if a draft solid waste management plan has been ratified under division (B) of section 3734.55 of the Revised Code.

In the case of a county district or a joint district formedby two or three counties, the committee shall declare theproposedrevised fees to be ratified as the fee schedule of thedistrictupon determining that the board of county commissionersof eachcounty forming the district has approved the proposedrevised feesand that the legislative authorities of acombination of municipalcorporations and townships with acombined population within thedistrict comprising at least sixtyper cent of the totalpopulation of the district have approvedthe proposed revisedfees, provided that in the case of a countydistrict, thatcombination shall include the municipalcorporation having thelargest population within the boundariesof the district, andprovided further that in the case of a jointdistrict formed bytwo or three counties, that combination shallinclude for eachcounty forming the joint district the municipalcorporation havingthe largest population within the boundariesof both the county inwhich the municipal corporation is locatedand the joint district.In the case of a joint district formedby four or more counties,the committee shall declare theproposed revised fees to beratified as the fee schedule of thejoint district upondetermining that the boards of countycommissioners of a majorityof the counties forming the districthave approved the proposedrevised fees; that, in each of amajority of the counties formingthe joint district, the proposedrevised fees have been approvedby the municipal corporationhaving the largest population withinthe county and the jointdistrict; and that the legislativeauthorities of a combinationof municipal corporations andtownships with a combinedpopulation within the joint districtcomprising at least sixtyper cent of the total population of thejoint district haveapproved the proposed revised fees.

For the purposes of this division, only the population oftheunincorporated area of a township shall be considered. Forthepurpose of determining the largest municipal corporationwithineach county under this division, a municipal corporationthat islocated in more than one solid waste management district,but thatis under the jurisdiction of one county or joint solidwastemanagement district in accordance with division (A) ofsection3734.52 of the Revised Code shall be considered to bewithin theboundaries of the county in which a majority of thepopulation ofthe municipal corporation resides.

The committee may amend the schedule of fees leviedpursuantto a resolution ~~or amended resolution~~ adopted andratified underthis division by adopting a resolutionestablishing the proposedamount of the amended fees. Thecommittee may ~~abolish~~ repeal the feeslevied pursuant to such aresolution ~~or amended resolution~~ byadopting a resolutionproposing to repeal them. Upon adoptingsuch a resolution, thecommittee shall proceed to obtainratification of the resolutionin accordance with this division.

Not later than fourteen days after declaring the new fees ~~oramended fees~~ to be ratified or the fees to be repealed under this division, the committeeshall notify by certified mail the owner or operator of eachsolidwaste disposal facility that is required to collect thefees ofthe ratification and the amount of the fees or of the repeal of the fees. Collectionof anyfees ~~or amended fees ratified on or after March 24, 1992,~~shallcommence or collection of repealed fees shall cease on the first day of the second month following themonthin which notification is sent to the owner or operator.

Not later than fourteen days after declaring the repeal ofthe district's schedule of fees to be ratified under thisdivision, the committee shall notify by certified mail the owneror operator of each facility that is collecting the fees of therepeal. Collection of the fees shall cease on the first day ofthe second month following the month in which notification issentto the owner or operator.

Fees levied under this division also may be established, amended, or repealed by a solid waste management policy committee through the adoption of a new district solid waste management plan, the adoption of an amended plan, or the amendment of the plan or amended plan in accordance with sections 3734.55 and 3734.56 of the Revised Code or the adoption or amendment of a district plan in connection with a change in district composition under section 3734.521 of the Revised Code.

Not later than fourteen days after the director issues anorder approving a district's solid waste management plan ~~undersection 3734.55 of the Revised Code or~~, amended plan ~~underdivision(A) or (D) of section 3734.56 of the Revised Code~~, or amendment to a plan or amended plan thatestablishesor, amends, or repeals a schedule of fees levied by the district,~~or theratification of an amendment to the district's approvedplan oramended plan under division (E) of section 3734.56 of theRevisedCode that establishes or amends a schedule of fees, asappropriate,~~ the committee shall notify by certified mail theowner or operator of each solid waste disposal facility that isrequired to collect the fees of the approval of the plan oramended plan, or the amendment to the plan, as appropriate, andthe amount of the fees ~~or amended fees~~, if any. In the case of aninitialor amended plan approved under section 3734.521 of theRevisedCode in connection with a change in district composition,otherthan one involving the withdrawal of a county from a jointdistrict, ~~that establishes or amends a schedule of fees leviedunder divisions (B)(1) to (3) of this section by a districtresulting from the change,~~ the committee, within fourteen daysafter the change takes effect pursuant to division (G) of thatsection, shall notify by certified mail the owner or operator ofeach solid waste disposal facility that is required to collectthefees that the change has taken effect and of the amount ofthefees ~~or amended fees~~, if any. Collection of any fees set forth in aplanor amended plan approved by the director on or after April16,1993, or an amendment of a plan or amended plan underdivision (E)of section 3734.56 of the Revised Code that isratified on orafter April 16, 1993, shall commence or collection of repealed fees shall cease on the firstday of thesecond month following the month in which notificationis sent tothe owner or operator.

Not later than fourteen days after the director issues anorder approving a district's plan under section 3734.55 of theRevised Code or amended plan under division (A) or (D) of section3734.56 of the Revised Code that abolishes the schedule of feeslevied under divisions (B)(1) to (3) of this section, or anamendment to the district's approved plan or amended planabolishing the schedule of fees is ratified pursuant to division(E) of section 3734.56 of the Revised Code, as appropriate, thecommittee shall notify by certified mail the owner or operator ofeach facility that is collecting the fees of the approval of theplan or amended plan, or the amendment of the plan or amendedplan, as appropriate, and the abolishment of the fees. In thecase of an initial or amended plan approved under section3734.521of the Revised Code in connection with a change indistrictcomposition, other than one involving the withdrawal ofa countyfrom a joint district, that abolishes the schedule offees leviedunder divisions (B)(1) to (3) of this section by adistrictresulting from the change, the committee, withinfourteen daysafter the change takes effect pursuant to division(G) of thatsection, shall notify by certified mail the owner oroperator ofeach solid waste disposal facility that is requiredto collect thefees that the change has taken effect and of theabolishment ofthe fees. Collection of the fees shall cease onthe first day ofthe second month following the month in whichnotification is sentto the owner or operator.

Except as otherwise provided in this division, if theschedule of fees that a district is levying under divisions(B)(1)to (3) of this section pursuant to a resolution or amendedresolution adopted and ratified under this division, the solidwaste management plan of the district approved under section3734.55 of the Revised Code, an amended plan approved underdivision (A) or (D) of section 3734.56 of the Revised Code, or anamendment to the district's approved plan or amended plan underdivision (E) of section 3734.56 of the Revised Code, is amendedbythe adoption and ratification of an amendment to theresolution oramended resolution or an amendment of thedistrict's approved planor amended plan, the fees in effectimmediately prior to theapproval of the plan or the amendment ofthe resolution, amendedresolution, plan, or amended plan, asappropriate, shall continueto be collected until collection ofthe amended fees commencespursuant to this division.

If, in the case of a change in district compositioninvolvingthe withdrawal of a county from a joint district, thedirectorcompletes the actions required under division (G)(1) or(3) ofsection 3734.521 of the Revised Code, as appropriate,forty-fivedays or more before the beginning of a calendar year,the policycommittee of each of the districts resulting from thechange thatobtained the director's approval of an initial oramended plan inconnection with the change, within fourteen daysafter thedirector's completion of the required actions, shallnotify bycertified mail the owner or operator of each solidwaste disposalfacility that is required to collect thedistrict's fees that thechange is to take effect on the firstday of January immediatelyfollowing the issuance of the noticeand of the amount of the feesor amended fees levied underdivisions (B)(1) to (3) of thissection pursuant to thedistrict's initial or amended plan as soapproved or, ifappropriate, the ~~abolishment~~ repeal of the district'sfees by thatinitial or amended plan. Collection of any fees setforth insuch a plan or amended plan shall commence on the firstday ofJanuary immediately following the issuance of the notice.Ifsuch an initial or amended plan ~~abolishes~~ repeals a schedule of fees,collection of the fees shall cease on that first day of January.

If, in the case of a change in district compositioninvolvingthe withdrawal of a county from a joint district, thedirectorcompletes the actions required under division (G)(1) or(3) ofsection 3734.521 of the Revised Code, as appropriate, lessthanforty-five days before the beginning of a calendar year, thedirector, on behalf of each of the districts resulting from thechange that obtained the director's approval of an initial oramended plan in connection with the change proceedings, shallnotify by certified mail the owner or operator of each solidwastedisposal facility that is required to collect thedistrict's feesthat the change is to take effect on the firstday of Januaryimmediately following the mailing of the noticeand of the amountof the fees or amended fees levied underdivisions (B)(1) to (3)of this section pursuant to thedistrict's initial or amended planas so approved or, ifappropriate, the ~~abolishment~~ repeal of thedistrict's fees by thatinitial or amended plan. Collection ofany fees set forth insuch a plan or amended plan shall commenceon the first day ofthe second month following the month in whichnotification issent to the owner or operator. If such an initialor amendedplan ~~abolishes~~ repeals a schedule of fees, collection of thefees shallcease on the first day of the second month followingthe month inwhich notification is sent to the owner or operator.

In If the schedule of fees that a solid waste management district is levying under divisions (B)(1) to (3) of this section is amended or repealed, the fees in effect immediately prior to the amendment or repeal shall continue to be collected until collection of the amended fees commences or collection of the repealed fees ceases, as applicable, as specified in this division. In the case of a change in district composition, thescheduleof fees that the former districts that existed prior tothe changewere levying under divisions (B)(1) to (3) of thissectionpursuant to a resolution or amended resolution adoptedandratified under this division, the solid waste management planof aformer district approved under section 3734.521 or 3734.55of theRevised Code, an amended plan approved under section3734.521 ordivision (A) or (D) of section 3734.56 of the RevisedCode, or anamendment to a former district's approved plan oramended planunder division (E) of section 3734.56 of the RevisedCode, andthat were in effect on the date that the directorcompleted theactions required under division (G)(1) or (3) ofsection 3734.521of the Revised Code shall continue to becollected until thecollection of the fees or amended fees of thedistricts resultingfrom the change is required to commence, orif an initial oramended plan of a resulting district abolishes aschedule of fees,collection of the fees is required to cease,under this division.Moneys money so received from the collection ofthe fees of the formerdistricts shall be divided among theresulting districts inaccordance with division (B) of section343.012 of the RevisedCode and the agreements entered into underdivision (B) of section343.01 of the Revised Code to establishthe former and resultingdistricts and any amendments to thoseagreements.

For the purposes of the provisions of division (B) of thissection establishing the times when newly established or amendedfees levied by a district are required to commence and thecollection of fees that have been amended or ~~abolished~~ repealed isrequiredto cease,"fees" or"schedule of fees" includes, inaddition tofees levied under divisions (B)(1) to (3) of thissection, thoselevied under section 3734.573 or 3734.574 of theRevised Code.

(C) For the purposes of defraying the added costs to amunicipal corporation or township of maintaining roads and otherpublic facilities and of providing emergency and other publicservices, and compensating a municipal corporation or townshipforreductions in real property tax revenues due to reductions inrealproperty valuations resulting from the location andoperation of asolid waste disposal facility within the municipalcorporation ortownship, a municipal corporation or township inwhich such asolid waste disposal facility is located may levy afee of notmore than twenty-five cents per ton on the disposal ofsolidwastes at a solid waste disposal facility located withintheboundaries of the municipal corporation or townshipregardless ofwhere the wastes were generated.

The legislative authority of a municipal corporation ortownship may levy fees under this division by enacting anordinance or adopting a resolution establishing the amount of thefees. Upon so doing the legislative authority shall mail acertified copy of the ordinance or resolution to the board ofcounty commissioners or directors of the county or joint solidwaste management district in which the municipal corporation ortownship is located or, if a regional solid waste managementauthority has been formed under section 343.011 of the RevisedCode, to the board of trustees of that regional authority, theowner or operator of each solid waste disposal facility in themunicipal corporation or township that is required to collect thefee by the ordinance or resolution, and the director ofenvironmental protection. Although the fees levied under thisdivision are levied on the basis of tons as the unit ofmeasurement, the legislative authority, in its ordinance orresolution levying the fees under this division, may direct thatthe fees be levied on the basis of cubic yards as the unit ofmeasurement based upon a conversion factor of three cubic yardsper ton generally or one cubic yard per ton for baled wastes.

Not later than five days after enacting an ordinance oradopting a resolution under this division, the legislativeauthority shall so notify by certified mail the owner or operatorof each solid waste disposal facility that is required to collectthe fee. Collection of any fee levied on or after March 24,1992,shall commence on the first day of the second monthfollowing themonth in which notification is sent to the owner oroperator.

(D)(1) The fees levied under divisions (A), (B), and (C) ofthissection do not apply to thedisposal of solid wastes that:

(a) Are disposed of at a facility owned by the generatorofthe wastes when the solid waste facility exclusively disposesofsolid wastes generated at one or more premises owned by thegenerator regardless of whether the facility is located on apremises where the wastes are generated;

(b) Are disposed of at facilities that exclusively disposeof wastes that are generated from the combustion of coal, or fromthe combustion of primarily coal in combination with scrap tires,that is not combined in any way with garbage at one or morepremises owned by the generator.

(2) Except as provided in section 3734.571 of the RevisedCode, any fees levied under division (B)(1) of this section applyto solid wastes originating outside the boundaries of a county orjoint district that are covered by an agreement for the joint useof solid waste facilities entered into under section 343.02 oftheRevised Code by the board of county commissioners or board ofdirectors of the county or joint district where the wastes aregenerated and disposed of.

(3) When solid wastes, other than solid wastes thatconsistof scrap tires, are burned in a disposal facility that isanincinerator or energy recovery facility, the fees levied underdivisions (A), (B), and (C) of this sectionshall be levied uponthe disposal of the fly ash and bottom ashremaining after burningof the solid wastes and shall becollected by the owner oroperator of the sanitary landfill wherethe ash is disposed of.

(4) When solid wastes are delivered to a solid wastetransfer facility, the fees levied under divisions ~~(A),~~ (B), and(C) of this section shall be levied uponthe disposal of solidwastes transported off the premises of thetransfer facility fordisposal and shall be collected by theowner or operator of thesolid waste disposal facility where thewastes are disposed of.

(5) The fees levied under divisions (A), (B), and (C) ofthis section do not apply to sewage sludge that is generated by awaste water treatment facility holding a national pollutantdischarge elimination system permit and that is disposed ofthrough incineration, land application, or composting or atanother resource recovery or disposal facility that is not alandfill.

(6) The fees levied under divisions (A), (B), and (C) ofthis section do not apply to solid wastes delivered to a solidwaste composting facility for processing. When any unprocessedsolid waste or compost product is transported off the premises ofa composting facility and disposed of at a landfill, the feeslevied under divisions (A), (B), and (C) of this section shall becollected by the owner or operator of the landfill where theunprocessed waste or compost product is disposed of.

(7) When solid wastes that consist of scrap tires areprocessed at a scrap tire recovery facility, the fees leviedunderdivisions (A), (B), and (C) of thissection shall be levied uponthe disposal of the fly ash andbottom ash or other solid wastesremaining after the processingof the scrap tires and shall becollected by the owner oroperator of the solid waste disposalfacility where the ash orother solid wastes are disposed of.

(8) The director of environmental protection may issue an order exempting from the fees levied under this section solid wastes, including, but not limited to, scrap tires, that are generated, transferred, or disposed of as a result of a contract providing for the expenditure of public funds entered into by the administrator or regional administrator of the United States environmental protection agency, the director of environmental protection, or the director of administrative services on behalf of the director of environmental protection for the purpose of remediating conditions at a hazardous waste facility, solid waste facility, or other location at which the administrator or regional administrator or the director of environmental protection has reason to believe that there is a substantial threat to public health or safety or the environment or that the conditions are causing or contributing to air or water pollution or soil contamination. An order issued by the director of environmental protection under division (D)(8) of this section shall include a determination that the amount of the fees not received by a solid waste management district as a result of the order will not adversely impact the implementation and financing of the district's approved solid waste management plan and any approved amendments to the plan. Such an order is a final action of the director of environmental protection.

(E) The fees levied under divisions (B) and (C)of thissection shall be collected by the owner or operator ofthe solidwaste disposal facility where the wastes are disposedof as atrustee for the county or joint district and municipalcorporationor township where the wastes are disposed of. Moneysfrom thefees levied under division (B) of thissection shall be forwardedto the board of county commissionersor board of directors of thedistrict in accordance with rulesadopted under division (H) ofthis section. Moneys from the feeslevied under division (C) ofthis section shall be forwarded tothe treasurer or such otherofficer of the municipal corporationas, by virtue of the charter,has the duties of the treasurer orto the clerk of the township,as appropriate, in accordance withthose rules.

(F) Moneys received by the treasurer or such other officerof the municipal corporation under division (E) of this sectionshall be paid into the general fund of the municipal corporation.Moneys received by the clerk of the township under that divisionshall be paid into the general fund of the township. Thetreasurer or such other officer of the municipal corporation orthe clerk, as appropriate, shall maintain separate records of themoneys received from the fees levied under division (C) of thissection.

(G) Moneys received by the board of county commissionersorboard of directors under division (E) of this section orsection3734.571, 3734.572, 3734.573, or 3734.574 of the RevisedCodeshall be paid to the county treasurer, or other officialacting ina similar capacity under a county charter, in a countydistrict orto the county treasurer or other official designatedby the boardof directors in a joint district and kept in aseparate anddistinct fund to the credit of the district. If aregional solidwaste management authority has been formed undersection 343.011of the Revised Code, moneys received by the boardof trustees ofthat regional authority under division (E) of thissection shallbe kept by the board in a separate and distinctfund to the creditof the district. Moneys in the special fundof the county orjoint district arising from the fees leviedunder division (B) ofthis section and the fee leviedunder division (A) of section3734.573 of the Revised Code shallbe expended by the board ofcounty commissioners or directors ofthe district in accordancewith the district's solid wastemanagement plan or amended planapproved under section 3734.521,3734.55, or 3734.56 of theRevised Code exclusively for thefollowing purposes:

(1) Preparation of the solid waste management plan of thedistrict under section 3734.54 of the Revised Code, monitoringimplementation of the plan, and conducting the periodic reviewandamendment of the plan required by section 3734.56 of theRevisedCode by the solid waste management policy committee;

(2) Implementation of the approved solid waste managementplan or amended plan of the district, including, withoutlimitation, the development and implementation of solid wasterecycling or reduction programs;

(3) Providing financial assistance to boards of healthwithin the district, if solid waste facilities are located withinthe district, for enforcement of this chapter and rules, orders,and terms and conditions ofpermits, licenses, and variancesadopted or issued under it,other than the hazardous wasteprovisions of this chapter andrules adopted and orders and termsand conditions of permits issued underthoseprovisions;

(4) Providing financial assistance to each county withinthedistrict to defray the added costs of maintaining roads andotherpublic facilities and of providing emergency and otherpublicservices resulting from the location and operation of asolidwaste facility within the county under the district'sapprovedsolid waste management plan or amended plan;

(5) Pursuant to contracts entered into with boards ofhealthwithin the district, if solid waste facilities containedin thedistrict's approved plan or amended plan are locatedwithin thedistrict, for paying the costs incurred by thoseboards of healthfor collecting and analyzing samples from publicor private waterwells on lands adjacent to those facilities;

(6) Developing and implementing a program for theinspectionof solid wastes generated outside the boundaries ofthis statethat are disposed of at solid waste facilitiesincluded in thedistrict's approved solid waste management planor amended plan;

(7) Providing financial assistance to boards of healthwithin the district for the enforcement of section 3734.03 of theRevised Code or to local law enforcement agencies havingjurisdiction within the district for enforcing anti-litteringlawsand ordinances;

(8) Providing financial assistance to boards of health ofhealth districts within the district that are on the approvedlistunder section 3734.08 of the Revised Code to defray thecosts tothe health districts for the participation of theiremployeesresponsible for enforcement of the solid wasteprovisions of thischapter and rules adopted and orders and termsand conditions ofpermits, licenses, and variances issued underthose provisions inthe training and certification program asrequired by rulesadopted under division (L) of section 3734.02of the Revised Code;

(9) Providing financial assistance to individual municipalcorporations and townships within the district to defray theiradded costs of maintaining roads and other public facilities andof providing emergency and other public services resulting fromthe location and operation within their boundaries of acomposting, energy or resource recovery, incineration, orrecycling facility that either is owned by the district or isfurnishing solid waste management facility or recycling servicesto the district pursuant to a contract or agreement with theboardof county commissioners or directors of the district;

(10) Payment of any expenses that are agreed to, awarded, orordered to bepaid under section 3734.35 of the Revised Code andof any administrativecosts incurred pursuant to that section. Inthe case of a joint solid wastemanagement district, if the boardof county commissioners of one of thecounties in the district isnegotiating on behalf of affected communities, asdefined in thatsection, in that county, the board shall obtain the approvalofthe board of directors of the district in order to expend moneysforadministrative costs incurred.

Prior to the approval of the district's solid wastemanagement plan under section 3734.55 of the Revised Code, moneysin the special fund of the district arising from the feesshallbeexpended for those purposes in the manner prescribed bythesolidwaste management policy committee by resolution.

Notwithstanding division (G)(6) of this sectionas it existedprior to October 29, 1993, or any provision in a district'ssolidwastemanagement planprepared in accordance with division(B)(2)(e) of section 3734.53of the Revised Code as it existedprior to that date, any moneysarising from the fees levied underdivision (B)(3) of thissection prior to January 1, 1994, may beexpended for any of thepurposes authorized in divisions (G)(1) to(10) of thissection.

(H) The director shall adoptrules in accordance withChapter 119. of the Revised Codeprescribing procedures forcollecting and forwarding the feeslevied under divisions (B) and(C) of this section to the boardsof county commissioners ordirectors of county or joint solidwaste management districts andto the treasurers or otherofficers of municipal corporations orto the clerks of townships. The rules also shall prescribe thedates for forwarding the feesto the boards and officials and mayprescribe any otherrequirements the director considers necessaryor appropriate toimplement and administer divisions (A), (B), and(C) of thissection. ~~Collection of the fees levied under division(A)(1) ofthis section shall commence on July 1, 1993. Collectionof thefeeslevied under division (A)(2) of this section shallcommenceon January 1, 1994.~~

Sec. 3734.573. (A) For the purpose of preparing,revising, and implementing the solid waste management plan of thedistrict, including, without limitation, the development andimplementation of solid waste recycling or reduction programs;providing financial assistance to boards of health within thedistrict, if solid waste facilities are located in the district,for the enforcement of this chapter and rules adopted and orders and terms andconditions ofpermits, licenses, and variances issued under it, other than the hazardouswaste provisions of this chapter and rules adopted and orders and terms andconditions of permits issued under those provisions;providing financial assistance to the county to defray the addedcosts of maintaining roads and other public facilities and ofproviding emergency and other public services resulting from thelocation and operation of a solid waste facility within thecounty under the district's approved plan or amended plan; payingthe costs incurred by boards of health for collecting andanalyzing water samples from public and private wells on landsadjacent to solid waste facilities that are contained in theapproved or amended plan of the district; paying the costs ofdeveloping and implementing a program for the inspection of solidwastes generated outside the boundaries of this state that aredisposed of at solid waste facilities included in the district'sapproved plan or amended plan; providing financial assistance toboards of health within the district for enforcing lawsprohibiting open dumping; providing financial assistance to locallaw enforcement agencies within the district for enforcing lawsand ordinances prohibiting littering; providing financialassistance to boards of health of health districts within thedistrict that are on the approved list under section 3734.08 ofthe Revised Code for the training and certification required fortheir employees responsible for solid waste enforcement by rulesadopted under division (L) of section 3734.02 of the RevisedCode; providing financial assistance to individual municipalcorporations and townships within the district to defray theiradded costs of maintaining roads and other public facilities andof providing emergency and other public services resulting fromthe location and operation within their boundaries of acomposting, energy or resource recovery, incineration, orrecycling facility that either is owned by the district or isfurnishing solid waste management facility or recycling servicesto the district pursuant to a contract or agreement with theboard of county commissioners or directors of the district; and paying anyexpenses provided for or incurred under section 3734.35 purposes specified in division (G) of section 3734.57 of the Revised Code,the solid waste management policy committee of a county or jointsolid waste management district may levy a fee on the generationof solid wastes within the district.

The initial or amended solid waste management plan of thecounty or joint district approved under section 3734.521, 3734.55, or3734.56 of the Revised Code, an amendment to the district's plan adopted underdivision (E) of section 3734.56 of the Revised Code, or theresolution adopted and ratified under division (B) of thissection shall establish the rate of the fee levied under thisdivision and shall specify whether the fee is levied on the basisof tons or cubic yards as the unit of measurement.

(B) Prior to the approval under division (A) of section3734.56 of the Revised Code of the first amended plan that thedistrict is required to submit for approval under that section,the approval of an initial plan under section 3734.521 of theRevised Code, the approval of an amended plan under section3734.521 or division (D) of section 3734.56 of the Revised Code,or the amendment of the district's plan under division (E) ofsection 3734.56 of the Revised Code, the solid waste managementpolicy committee of a county or joint district that is operatingunder an initial plan approved under section 3734.55 of theRevised Code, or one for which approval of its initial plan ispending before the director of environmental protection on October 29, 1993, under section 3734.55 of theRevised Code, may levy a fee under division (A) of this sectionby adopting and obtaining ratification of a resolutionestablishing the amount of the fee. A policy committee that,after December 1, 1993, concurrently proposes to levy a fee underdivision (A) of this section and to amend the fees levied by thedistrict under divisions (B)(1) to (3) of section 3734.57 of theRevised Code may adopt and obtain ratification of one resolutionproposing to do both. The requirements and procedures set forthin division (B) of section 3734.57 of the Revised Code governingthe adoption, amendment, and repeal of resolutions levying feesunder divisions (B)(1) to (3) of that section, the ratificationof those resolutions, and the notification of owners andoperators of solid waste facilities required to collect feeslevied under those divisions govern the adoption of theresolutions authorized to be adopted under this division, theratification thereof, and the notification of owners andoperators required to collect the fees, except as otherwisespecifically provided in division (C) of this section.

(C) Any initial or amended plan of a district adoptedunder section 3734.521 or 3734.56 of the Revised Code, orresolution adopted under division (B) of this section, thatproposes to levy a fee under division (A) of this section thatexceeds five dollars per ton shall be ratified in accordance withthe provisions of section 3734.55 or division (B) of section3734.57 of the Revised Code, as applicable, except that such aninitial or amended plan or resolution shall be approved by acombination of municipal corporations and townships with acombined population within the boundaries of the districtcomprising at least seventy-five per cent, rather than at leastsixty per cent, of the total population of the district.

(D) The policy committee of a county or joint district mayamend the fee levied by the district under division (A) of thissection by adopting and obtaining ratification of a resolutionestablishing the amount of the amended fee. The policy committeemay abolish the fee or an amended fee established under thisdivision by adopting and obtaining ratification of a resolutionproposing to repeal it. The requirements and procedures underdivision (B) and, if applicable, division (C) of this sectiongovern the adoption and ratification of a resolution authorizedto be adopted under this division and the notification of ownersand operators of solid waste facilities required to collect thefees.

(E) Collection of a fee or amended fee levied underdivision (A) or (D) of this section shall commence or cease inaccordance with division (B) of section 3734.57 of the RevisedCode. If a district is levying a fee under section 3734.572 ofthe Revised Code, collection of that fee shall cease on the dateon which collection of the fee levied under division (A) of thissection commences in accordance with division (B) of section3734.57 of the Revised Code.

(F) In the case of solid wastes that are taken to a solidwaste transfer facility prior to being transported to a solidwaste disposal facility for disposal, the fee levied underdivision (A) of this section shall be collected by the owner oroperator of the transfer facility as a trustee for the district.In the case of solid wastes that are not taken to a solid wastetransfer facility prior to being transported to a solid wastedisposal facility, the fee shall be collected by the owner oroperator of the solid waste disposal facility where the wastesare disposed of. An owner or operator of a solid waste transferor disposal facility who is required to collect the fee shallcollect and forward the fee to the district in accordance withsection 3734.57 of the Revised Code and rules adopted underdivision (H) of that section.

If the owner or operator of a solid waste transfer ordisposal facility who did not receive notice pursuant to division(B) of this section to collect the fee levied by a district underdivision (A) of this section receives solid wastes generated inthe district, the owner or operator, within thirty days afterreceiving the wastes, shall send written notice of that fact tothe board of county commissioners or directors of the district.Within thirty days after receiving such a notice, the board ofcounty commissioners or directors shall send written notice tothe owner or operator indicating whether the district is levyinga fee under division (A) of this section and, if so, the amountof the fee.

(G) Moneys received by a district levying a fee underdivision (A) of this section shall be credited to the specialfund of the district created in division (G) of section 3734.57of the Revised Code and shall be used exclusively for thepurposes ~~set forth~~ specified in ~~divisions (G)(1) to (10) of~~ that~~section~~ division.Prior to the approval under division (A) of section 3734.56 ofthe Revised Code of the first amended plan that the district isrequired to submit for approval under that section, the approvalof an initial plan under section 3734.521 of the Revised Code, theapproval of an amended plan under thatsection or division (D) of section 3734.56 of theRevised Code, or the amendment of the district's plan underdivision (E) of section 3734.56 of the Revised Code, moneyscredited to the special fund arising from the fee levied pursuantto a resolution adopted and ratified under division (B) of thissection shall be expended for those purposes in the mannerprescribed by the solid waste management policy committee byresolution.

(H) The fee levied under division (A) of this section doesnot apply to the management of solid wastes that:

(1) Are disposed of at a facility owned by the generatorof the wastes when the solid waste facility exclusively disposesof solid wastes generated at one or more premises owned by thegenerator regardless of whether the facility is located on apremises where the wastes were generated;

(2) Are disposed of at facilities that exclusively disposeof wastes that are generated from the combustion of coal, or fromthe combustion of primarily coal in combination with scrap tires,that is not combined in any way with garbage at one or more premisesowned by the generator.

(I) When solid wastes that are burned in a disposalfacility that is an incinerator or energy recovery facility aredelivered to a solid waste transfer facility prior to beingtransported to the incinerator or energy recovery facility wherethey are burned, the fee levied under division (A) of thissection shall be levied on the wastes delivered to the transferfacility.

(J) When solid wastes that are burned in a disposalfacility that is an incinerator or energy recovery facility arenot delivered to a solid waste transfer facility prior to beingtransported to the incinerator or energy recovery facility wherethey are burned, the fee levied under division (A) of thissection shall be levied on the wastes delivered to theincinerator or energy recovery facility.

(K) The fee levied under division (A) of this section doesnot apply to sewage sludge that is generated by a waste watertreatment facility holding a national pollutant dischargeelimination system permit and that is disposed of throughincineration, land application, or composting or at anotherresource recovery or disposal facility that is not a landfill.

(L) The fee levied under division (A) of this section doesnot apply to yard waste delivered to a solid waste compostingfacility for processing or to a solid waste transfer facility.

(M) The fee levied under division (A) of this section doesnot apply to materials separated from a mixed waste stream forrecycling by the generator.

(N) The director of environmental protection may issue an order exempting from the fees levied under this section solid wastes, including, but not limited to, scrap tires, that are generated, transferred, or disposed of as a result of a contract providing for the expenditure of public funds entered into by the administrator or regional administrator of the United States environmental protection agency, the director of environmental protection, or the director of administrative services on behalf of the director of environmental protection for the purpose of remediating conditions at a hazardous waste facility, solid waste facility, or other location at which the administrator or regional administrator or the director of environmental protection has reason to believe that there is a substantial threat to public health or safety or the environment or that the conditions are causing or contributing to air or water pollution or soil contamination. An order issued by the director of environmental protection under this division shall include a determination that the amount of fees not received by a solid waste management district as a result of the order will not adversely impact the implementation and financing of the district's approved solid waste managment plan and any approved amendments to the plan. Such an order is a final action of the director of environmental protection.

Sec. 3734.85. (A) On and afterthe effective date of the rules adopted under sections3734.70, 3734.71, 3734.72, and 3734.73 of the Revised Code, thedirector of environmental protection may take action under thissection to abate accumulations of scrap tires. If the directordetermines that an accumulation of scrap tires constitutes adanger to the public health or safety or to the environment, he thedirector shall issue an order under section 3734.13 of the Revised Code tothe person responsible for the accumulation of scrap tiresdirecting that person, within one hundred twenty days after theissuance of the order, to remove the accumulation of scrap tiresfrom the premises on which it is located and transport the tiresto a scrap tire storage, monocell, monofill, or recovery facilitylicensed under section 3734.81 of the Revised Code, to such afacility in another state operating in compliance with the lawsof the state in which it is located, or to any other solid wastedisposal facility in another state that is operating incompliance with the laws of that state. If the personresponsible for causing the accumulation of scrap tires is aperson different from the owner of the land on which theaccumulation is located, the director may issue such an order tothe landowner.

If the director is unable to ascertain immediately theidentity of the person responsible for causing the accumulationof scrap tires, he the director shall examine the records of theapplicableboard of health and law enforcement agencies to ascertain thatperson's identity. Before initiating any enforcement or removalactions under this division against the owner of the land onwhich the accumulation is located, the director shall initiateany such actions against the person that he the director hasidentified asresponsible for causing the accumulation of scrap tires. Failureof the director to make diligent efforts to ascertain theidentity of the person responsible for causing the accumulationof scrap tires or to initiate an action against the personresponsible for causing the accumulation shall not constitute anaffirmative defense by a landowner to an enforcement actioninitiated by the director under this division requiring immediateremoval of any accumulation of scrap tires.

Upon the written request of the recipient of an orderissued under this division, the director may extend the time forcompliance with the order if the request demonstrates that therecipient has acted in good faith to comply with the order. Ifthe recipient of an order issued under this division fails tocomply with the order within one hundred twenty days after theissuance of the order or, if the time for compliance with theorder was so extended, within that time, the director shall takesuch actions as he the director considers reasonable andnecessary to remove and properly manage the scrap tires located on the landnamed inthe order. The director, through employees of the environmentalprotection agency or a contractor, may enter upon the land onwhich the accumulation of scrap tires is located and remove andtransport them to a scrap tire recovery facility for processing,to a scrap tire storage facility for storage, or to a scrap tiremonocell or monofill facility for storage or disposal.

The director shall enter into contracts with the owners oroperators of scrap tire storage, monocell, monofill, or recoveryfacilities for the storage, disposal, or processing of scraptires removed through removal operations conducted under thissection. In doing so, the director shall give preference toscrap tire recovery facilities.

If a person to whom a removal order is issued under thisdivision fails to comply with the order and if the directorperforms a removal action under this section, the person to whomthe removal order is issued is liable to the director for thecosts incurred by the director for conducting the removaloperation, storage at a scrap tire storage facility, storageor disposal at a scrap tire monocell or monofill facility, orprocessing of the scrap tires so removed, the transportation ofthe scrap tires from the site of the accumulation to the scraptire storage, monocell, monofill, or recovery facility where thescrap tires were stored, disposed of, or processed, and theadministrative and legal expenses incurred by the director inconnection with the removal operation. The director shall keep an itemized record of those costs. Upon completion of the actions for which the costs were incurred, the director shall record the costs at the office of the county recorder of the county in which the accumulation of scrap tires was located. The costs so recorded constitute a lien on the property on which the accumulation of scrap tires was located until discharged. Upon the written requestof the director, the attorney general shall bring a civil actionagainst the person responsible for the accumulation of the scraptires that were the subject of the removal operation to recoverthe costs of the removal operation. If the director is unable torecover those costs through such a civil action, he shall certify them to the county recorder of the county in which theaccumulation of scrap tires was located. The recorder shallrecord the costs so certified as a lien on the property on whichthe accumulation of scrap tires was located, which costs shall bea lien on the property until discharged for which the person is liable under this division. Any money so received or recovered shall be credited to the scrap tire management fund created in section 3734.82 of the Revised Code.

If, in a civil action brought under this division, an ownerof real property is ordered to pay to the director the costs of aremoval action that removed an accumulation of scrap tires fromthe person's land or if a lien is placed on the person's land forthe costs of such a removal action, and, in either case, if thelandowner was not the person responsible for causing theaccumulation of scrap tires so removed, the landowner may bring acivil action against the person who was responsible for causingthe accumulation to recover the amount of the removal costs thatthe court ordered the landowner to pay to the director or theamount of the removal costs certified to the county recorder as alien on the landowner's property, whichever is applicable. Ifthe landowner prevails in the civil action against the person whowas responsible for causing the accumulation of scrap tires, thecourt, as it considers appropriate, may award to the landownerthe reasonable attorney's fees incurred by the landowner forbringing the action, court costs, and other reasonable expensesincurred by the landowner in connection with the civil action. Alandowner shall bring such a civil action within two years aftermaking the final payment of the removal costs to the directorpursuant to the judgment rendered against the landowner in thecivil action brought under this division upon the director'srequest or within two years after the director certified thecosts of the removal action to the county recorder, asappropriate. A person who, at the time that a removal action wasconducted under this division, owned the land on which theremoval action was performed may bring an action under thisdivision to recover the costs of the removal action from theperson responsible for causing the accumulation of scrap tires soremoved regardless of whether the person owns the land at thetime of bringing the action.

Subject to the limitations set forth in division (G) ofsection 3734.82 of the Revised Code, the director may use moneysin the scrap tire management fund ~~created in that division~~ forconducting removal actions under this division. Any moneysrecovered under this division shall be credited to the scrap tiremanagement fund.

(B) The director shall initiate enforcement and removalactions under division (A) of this section in accordance with thefollowing descending listing of priorities:

(1) Accumulations of scrap tires that the director findsconstitute a fire hazard or threat to public health;

(2) Accumulations of scrap tires determined by thedirector to contain more than one million scrap tires;

(4) Other accumulations of scrap tires that the directoror board of health of the health district in which theaccumulation is located determines constitute a public nuisance;

(5) Any other accumulations of scrap tires present onpremises operating without a valid license issued under section3734.05 or 3734.81 of the Revised Code.

(C) The director shall not take enforcement and removalactions under division (A) of this section against the owner oroperator of, or the owner of the land on which is located, any ofthe following:

(1) A premises where not more than one hundred scrap tiresare present at any time;

(2) The premises of a business engaging in the sale oftires at retail that meets either of the following criteria:

(a) Not more than one thousand scrap tires are present onthe premises at any time in an unsecured, uncovered outdoorlocation;.

(b) Any number of scrap tires are secured in a building ora covered, enclosed container, trailer, or installation.

(3) The premises of a tire retreading business, a tiremanufacturing finishing center, or a tire adjustment center onwhich is located a single, covered scrap tire storage area wherenot more than four thousand scrap tires are stored;

(4) The premises of a business that removes tires frommotor vehicles in the ordinary course of business and on which islocated a single scrap tire storage area that occupies not morethan twenty-five hundred square feet;

(5) A solid waste facility licensed under section 3734.05of the Revised Code that stores scrap tires on the surface of theground if the total land area on which scrap tires are actuallystored does not exceed ten thousand square feet;

(6) A premises where not more than two hundred fifty scraptires are stored or kept for agricultural use;

(7) A construction site where scrap tires are stored foruse or used in road resurfacing or the construction ofembankments;

(8) A scrap tire collection, storage, monocell, monofill,or recovery facility licensed under section 3734.81 of theRevised Code;

(9) A solid waste incineration or energy recovery facilitythat is subject to regulation under this chapter and that burnsscrap tires;

(10) A premises where scrap tires are beneficially usedand for which the notice required by rules adopted under section3734.84 of the Revised Code has been given;

(11) A transporter registered under section 3734.83 of theRevised Code that collects and holds scrap tires in a coveredtrailer or vehicle for not longer than thirty days prior totransporting them to their final destination.

(D) Nothing in this section restricts any right any personmay have under statute or common law to enforce or seekenforcement of any law applicable to the management of scraptires, abate a nuisance, or seek any other appropriate relief.

(E) An owner of real property upon which there is locatedan accumulation of not more than two thousand scrap tires is notliable under division (A) of this section for the cost of theremoval of the scrap tires, and no lien shall attach to theproperty under this section, if all of the following conditionsare met:

(1) The tires were placed on the property after the owneracquired title to the property, or the tires were placed on theproperty before the owner acquired title to the property and theowner acquired title to the property by bequest or devise;.

(2) The owner of the property did not have knowledge thatthe tires were being placed on the property, or the owner postedon the property signs prohibiting dumping or took other action toprevent the placing of tires on the property;.

(3) The owner of the property did not participate in orconsent to the placing of the tires on the property;.

(4) The owner of the property received no financialbenefit from the placing of the tires on the property orotherwise having the tires on the property;.

(5) Title to the property was not transferred to the ownerfor the purpose of evading liability under division (A) of thissection;.

(6) The person responsible for placing the tires on theproperty, in doing so, was not acting as an agent for the ownerof the property.

Sec. 3734.901. (A)(1) For the purpose of providing revenuetodefray the cost of administering and enforcing the scrap tireprovisions of this chapter, rules adopted under those provisions,and terms and conditions of orders, variances, and licensesissuedunder those provisions; to abate accumulations of scraptires; tomake grants to promote research regarding alternativemethods ofrecycling scrap tires and loans to promote therecycling orrecovery of energy from scrap tires; and to defraythe costs ofadministering and enforcing sections 3734.90 to3734.9014 of theRevised Code, a fee offifty cents per tire isherebylevied onthe sale of tires. The fee is levied from thefirst dayof thecalendar month that begins next after thirtydays fromOctober 29,1993, through June 30, ~~2006~~ 2011.

(2) Beginning on~~the effective date of this section~~September 5, 2001, andending on June 30, 2011, there is hereby levied an additional feeof fifty centsper tire on the sale of tires the proceeds of whichshall bedeposited in the state treasury to the credit of the scrap tire management fund created insection3734.82 of the Revised Code and be used exclusively forthepurposes specified in division (G)(3) of that section.

(B) Only one sale of the same article shall be used incomputing the amount of the fee due.

Sec. 3734.9010. ~~Four~~ Two per cent of all amounts paid to the treasurer of statepursuant to sections 3734.90 to 3734.9014 of the Revised Code shall becertified directly to the credit of the tire fee administrative fund, which ishereby created in the state treasury, for appropriation to the department oftaxation for use in administering those sections. The remainder of theamounts paid to the treasurer of state shall be deposited to the credit of thescrap tire management fund created in section 3734.82 of the Revised Code.

Sec. 3735.27. (A) Whenever the director of developmenthasdetermined that there is need for a housing authority in anyportion of any county that comprises two or more politicalsubdivisions or portionsof two or more politicalsubdivisions but is less than all theterritory within the county,a metropolitan housing authorityshall be declared to exist, andthe territorial limitsof the authority shall be defined,by a letter from the director. The directorshall issue adetermination from the department of developmentdeclaring thatthere is need for a housing authority withinthoseterritorial limitsafter finding eitherof the following:

(2) There is a shortage of safe and sanitary housingaccommodations inthat area available to persons who lack theamount of incomethat is necessary, as determined by thedirector, to enable them, without financial assistance, to liveindecent, safe, and sanitary dwellings without congestion.

In determining whether dwelling accommodations are unsafeorunsanitary, the director may take into consideration the degreeofcongestion, the percentage of land coverage, the light, air,space, and access available to the inhabitants ofthedwellingaccommodations, the size and arrangement of rooms,thesanitary facilities, and the extent to which conditions existinthe dwelling accommodations that endangerlife or property by fire or othercauses.

The territorial limits of ametropolitan housing authorityas defined bythedirectorunder this division shall be fixed forthe authority upon proof of aletterfrom the directordeclaring the need forthe authority tofunction in thoseterritorial limits. Any such letter from thedirector, anycertificate of determination issued by thedirector,and anycertificate of appointment of members of theauthorityshall beadmissible in evidence in any suit, action, orproceeding.

A certified copy of the letter from the director declaringthe existenceof a metropolitan housing authority andthe territorial limits of itsdistrictshall beimmediately forwarded to each appointingauthority. Ametropolitan housing authority shall consist ofmembers who areresidents of the territory in which they serve.

(B)(1) Except as otherwise provided in division (C), (D), or (E) ofthissection, the members of a metropolitan housing authority shall beappointed as follows:

(a)(i) In a district in a county in which a charter has been adopted under Article X, Section 3 of the Ohio Constitution, and in which the most populous city is notthe city with the largest ratio of housing units owned or managedby the authority to population, one member shall be appointed bythe probate court, onemember shall be appointed bythe court ofcommon pleas, one member shall be appointed by theboard ofcountycommissioners, one member shall be appointed bythe chief executiveofficer of the city that has the largest ratioof housing units owned or managed by the authority to population,and two members shall be appointed by the chief executive officerof the most populous cityin thedistrict.

(ii) If, in a district that appoints members pursuant todivision (B)(1)(a) of this section, the most populous city becomes the city with thelargest ratio of housing units owned or managed by the authorityto population, when the term of office of the member who wasappointed by the chief executive officer of the city with thelargest ratio expires, that member shall not be reappointed, andthe membership of the authority shall be as described in division(B)(1)(b) of this section.

(b) In any district other than one described in division(B)(1)(a) of this section, one member shall be appointed by theprobate court, one member shall be appointed by the court ofcommon pleas, one member shall be appointed by the board of countycommissioners, and two members shall be appointed by the chiefexecutive officer of the most populous city in the district.

(2) At the time of the initial appointment of the authority,thememberappointed by the probate court shall be appointed foraperiod offour years, themember appointed by thecourt of commonpleasshall be appointed for threeyears, themember appointed by the board of countycommissionersshall be appointed for twoyears,onememberappointed by the chief executiveofficerof the most populous cityin the district shall be appointed for one year,and theother member appointed by the chief executiveofficerofthe most populous cityin the district shall beappointed for fiveyears.

If appointments are made under division (B)(1)(a) of thissection, the member appointed by the chief executive officer ofthe city in the district that is not the most populous city, butthat has the largest ratio of housing units owned or managed bythe authority to population, shall be appointed for five years.

After the initial appointments, all members of the authorityshallbe appointed forfive-year terms, and any vacancy occurring upon the expiration of a term shall be filled by the appointing authority that made the initial appointment.

(3) For purposes of this division, population shall bedetermined according to the last preceding federal census.

(C) For any metropolitan housing authority district thatcontained, as of the 1990 federal census, a population ofat leastone million, two members of theauthority shall beappointed bythe legislativeauthority of the mostpopulous city inthe district, twomembersshall beappointed by the chiefexecutive officer of themost populous cityin the district, andone membershall beappointed by thechief executiveofficer, with the approval ofthelegislative authority,of the city in the districtthat has thesecond highest number ofhousing units owned ormanaged by theauthority.

At the time of the initial appointment of the authority,onemember appointed by the legislative authority ofthemost populous city in the districtshallbe appointed for three years, and onesuch member shall beappointed for one year; themember appointed by thechief executive officer of the city with thesecond highestnumberof housing units owned or managed by theauthority shall beappointed, with the approval of thelegislativeauthority, for three years;and onemember appointedbythechief executiveofficer of the most populous city in thedistrictshall beappointed for three years, and onesuch membershall be appointed for one year.Thereafter, allmembers of theauthority shall be appointed forthree-year terms,and any vacancyshall be filled by the sameappointing power thatmade the initialappointment. At theexpiration of the term ofany memberappointed by the chiefexecutive officer of the mostpopulous cityin the district beforeMarch 15, 1983,the chiefexecutive officer of the most populouscity in thedistrict shallfill the vacancy by appointment for athree-yearterm. At theexpiration of the term of any memberappointed bythe board ofcounty commissioners before March 15,1983, thechief executiveofficer of the city in the district withthesecond highestnumber of housing units owned or managed by theauthority shall,with the approval of the municipal legislativeauthority, fillthe vacancy by appointment for a three-year term.At theexpiration of the term of any member appointed beforeMarch 15,1983, by the court of common pleas or the probate court,thelegislative authority of the most populous city in the district shall fill the vacancy byappointmentfor a three-year term.

After March 15, 1983, at least one of the members appointedby the chief executive officer of the most populous city shall bea resident of a dwelling unit owned or managed by theauthority. At least one of the initial appointments by the chiefexecutive officer of the most populous city, after March 15,1983,shall be a resident of a dwelling unit owned or managed bythe authority. Thereafter, any member appointed by thechiefexecutive officerof the most populous city for the termestablished by this initialappointment, or for any succeedingterm, shall be apersonwho resides in a dwelling unitowned or managed by theauthority. If there is anelected, representative bodyof allresidents of theauthority, the chiefexecutiveofficerof the most populouscity shall, whenever there is a vacancy in thisresident term,provide written notice of the vacancy to therepresentative body.If the representative body submits to thechief executive officerof the most populous city,in writing and within sixty days afterthe date on which it wasnotified of the vacancy, the names of atleast five residents ofthe authority who are willing andqualified to serve as amember, the chief executive officerof the most populous city shall appoint to theresident term oneof the residentsrecommended by therepresentative body. At notime shallresidents constitute amajority of the members of theauthority.

(D)(1) For any metropolitanhousing authority districtlocatedin a county that had, as of the2000 federal census, apopulationof at least four hundredthousand and no city with apopulationgreater than thirty percent of the total population ofthecounty, one member of theauthority shall be appointed by theprobate court, one membershall be appointed by the court ofcommon pleas, one member shallbe appointed by the chief executiveofficer of the most populouscity in the district, and two membersshall be appointed by theboard of county commissioners.

(2) At the time of the initial appointment of ametropolitan housing authority pursuant to this division, themember appointed by the probate court shall be appointed for aperiod of four years, the member appointed by the court of commonpleas shall be appointed for three years, the member appointed bythe chief executive officer of the most populous city shall beappointed for two years, one member appointed by the board ofcounty commissioners shall be appointed for one year, and theother member appointed by the board of county commissioners shallbe appointed for five years. Thereafter, all members of theauthority shall be appointed for five-year terms, with each termending on the same day of the same month as the term that itsucceeds. Vacancies shall be filled in the manner provided inthe original appointments. Any member appointed to fill a vacancyoccurring prior to the expiration of the term shall hold office as a memberfor the remainder of that term.

(E)(1) ~~An additional two members~~ One resident member shall be appointed to ~~the~~ a metropolitan housing authority in any district that has three hundred or more assisted housing units and that does not have at least one resident as a member of its authority. For the purposes of this section, an "assisted unit" is a housing unit owned or operated by the housing authority or a unit in which the occupants receive tenant-based housing assistance through the federal section 8 housing program, 24 C.F.R. Ch VIII, and, a "resident" is a person who lives in an assisted housing unit when required by federal law. The

~~(2) The~~ chief executive officer of the most populous city in the district shall appoint ~~an additional member who is a~~ that resident member for ~~an initial~~ a term of five years. ~~The board of county commissioners shall appoint the other additional member, who need not be a resident, for an initial term of three years. After the initial term, the terms of both members~~ Subsequent terms of that resident member also shall be for five years, and ~~vacancies~~ any vacancy in the position of the resident member shall be filled ~~in the manner provided for original appointments~~ by the chief executive officer of the most populous city in the district. Any member appointed to fill such a vacancy ~~occurring prior to the expiration of the term for which the member's predecessor was appointed~~ shall hold office as a resident member for the remainder of that term. If, at any time,

~~(3) A member appointed as~~ a resident member ~~who~~ no longer qualifies as a resident ~~shall be deemed unable to serve~~, ~~and~~ another resident member shall be appointed by the appointing authority who originally appointed the resident member to serve for the unexpired portion of that term.

(2) On and after the effective date of this amendment, any metropolitan housing authority to which two additional members were appointed pursuant to former division (E)(1) of this section as enacted by Amended Substitute House Bill No. 95 of the 125th general assembly shall continue to have those additional members. Their terms shall be for five years, and vacancies in their positions shall be filled in the manner provided for their original appointment under former division (E)(1) of this section as so enacted.

(F) Public officials, other than the officers having theappointing power under this section, shall be eligible to serveasmembers, officers, or employees ofa metropolitan housingauthoritynotwithstanding any statute, charter, or law to thecontrary.Notmore than two such public officials shall be membersof theauthority at any one time.

All members ofan authority shall serve withoutcompensation but shall be entitled to be reimbursed for allnecessary expenses incurred.

After a metropolitan housing authority districtisformed,the director may enlarge the territory withinthedistrict toinclude other political subdivisions, or portionsof other political subdivisions, but theterritoriallimits ofthe district shall be less thanthat of thecounty.

(G)(1) Any vote taken by a metropolitan housing authorityshall require a majority affirmative vote to pass. A tie voteshall constitute a defeat of any measure receiving equal numbersof votes for and against it.

(2) The members of a metropolitan housing authority shallact in the best interest of the district and shall not act solelyas representatives of their respective appointing authorities.

(A) "Beer" and "intoxicating liquor" have the samemeaningsas in section 4301.01 of the Revised Code.

(B) "Booby trap" means a small tube that has a stringprotruding from both ends, that has a friction-sensitivecomposition, and that is ignited by pulling the ends of thestring.

(C) "Cigarette load" means a small wooden peg that iscoatedwith a small quantity of explosive composition and that isignitedin a cigarette.

(D)(1) "1.3G fireworks" means display fireworks consistentwithregulations of the United States department oftransportationas expressed using the designation "division 1.3" inTitle 49,Code ofFederal Regulations.

(2) "1.4G fireworks" means consumer fireworks consistentwithregulations of the United States department oftransportationas expressed using the designation "division 1.4" inTitle 49,Code ofFederal Regulations.

(E) "Controlled substance" has the same meaning as insection 3719.01 of the Revised Code.

(F) "Fireworks" means any composition or device preparedforthe purpose of producing a visible or an audible effect bycombustion, deflagration, or detonation, except ordinary matchesand except as provided in section 3743.80 of the Revised Code.

(G) "Fireworks plant" means all buildings and otherstructures in which the manufacturing of fireworks, or thestorageor sale of manufactured fireworks by a manufacturer, takesplace.

(H) "Highway" means any public street, road, alley, way,lane, or other public thoroughfare.

(I) "Licensed exhibitor of fireworks" or "licensedexhibitor" means a person licensed pursuant to sections 3743.50to3743.55 of the Revised Code.

(J) "Licensed manufacturer of fireworks" or "licensedmanufacturer" means a person licensed pursuant to sections3743.02to 3743.08 of the Revised Code.

(K) "Licensed wholesaler of fireworks" or "licensedwholesaler" means a person licensed pursuant to sections 3743.15to 3743.21 of the Revised Code.

(L) "List of licensed exhibitors" means the list requiredbydivision (C) of section 3743.51 of the Revised Code.

(M) "List of licensed manufacturers" means the listrequiredby division (C) of section 3743.03 of the Revised Code.

(N) "List of licensed wholesalers" means the list requiredby division (C) of section 3743.16 of the Revised Code.

(O) "Manufacturing of fireworks" means the making offireworks from raw materials, none of which in and of themselvesconstitute a fireworks, or the processing of fireworks.

(P) "Navigable waters" means any body of water susceptibleof being used in its ordinary condition as a highway of commerceover which trade and travel is or may be conducted in thecustomary modes, but does not include a body of water that is notcapable of navigation by barges, tugboats, and other largevessels.

(1) Devices that produce a small report intended tosurprisethe user, including, but not limited to, booby traps,cigaretteloads, party poppers, and snappers;

(R) "Party popper" means a small plastic or paper itemthatcontains not more than sixteen milligrams offriction-sensitiveexplosive composition, that is ignited bypulling a stringprotruding from the item, and from which paperstreamers areexpelled when the item is ignited.

(S) "Processing of fireworks" means the making offireworksfrom materials all or part of which in and ofthemselvesconstitute a fireworks, but does not include the merepackaging orrepackaging of fireworks.

(T) "Railroad" means any railway or railroad that carriesfreight or passengers for hire, but does not include auxiliarytracks, spurs, and sidings installed and primarily used inservinga mine, quarry, or plant.

(U) "Retail sale" or "sell at retail" means a sale offireworks to a purchaser who intends to use the fireworks, andnotresell them.

(V) "Smoke device" means a tube or sphere that containspyrotechnic composition that, upon ignition, produces white orcolored smoke as the primary effect.

(W) "Snake or glow worm" means a device that consists of apressed pellet of pyrotechnic composition that produces a large,snake-like ash upon burning, which ash expands in length as thepellet burns.

(X) "Snapper" means a small, paper-wrapped item thatcontains a minute quantity of explosive composition coated onsmall bits of sand, and that, when dropped, implodes.

(Y) "Trick match" means a kitchen or book match that iscoated with a small quantity of explosive composition and that,upon ignition, produces a small report or a shower of sparks.

(Z) "Wire sparkler" means a sparkler consisting of a wire orstickcoated with a nonexplosive pyrotechnic mixture that producesa shower ofsparks upon ignition and that contains no more thanone hundred grams of thismixture.

(AA) "Wholesale sale" or "sell at wholesale" means a saleoffireworks to a purchaser who intends to resell the fireworkssopurchased.

(BB) "Licensedpremises" means the real estate upon which alicensedmanufacturer or wholesaler of fireworks conductsbusiness.

(CC) "Licensed building" means abuilding on the licensedpremises of a licensed manufacturer orwholesaler of fireworksthat is approved for occupancy by thebuilding official havingjurisdiction.

(DD) "Fireworks incident" means any action or omission thatoccurs at a fireworks exhibition, that results in injury or death,or a substantial risk of injury or death, to any person, and thatinvolves either of the following:

(1) The handling or other use, or the results of thehandling or other use, of fireworks or associated equipment orother materials;

(2) The failure of any person to comply with any applicablerequirement imposed by this chapter or any applicable rule adoptedunder this chapter.

(EE) "Discharge site" means an area immediately surroundingthe mortars used to fire aerial shells.

(FF) "Fireworks incident site" means a discharge site orother location at a fireworks exhibition where a fireworksincident occurs, a location where an injury or death associatedwith a fireworks incident occurs, or a location where evidenceofa fireworks incident or an injury or death associated with afireworks incident is found.

(GG) "Storage location" means a single parcel or contiguous parcels of real estate approved by the fire marshal pursuant to division (I) of section 3743.04 of the Revised Code or division (G) of section 3743.17 of the Revised Code that are separate from a licensed premises containing a retail showroom, and which parcel or parcels a licensed manufacturer or wholesaler of fireworks may use only for the distribution, possession, and storage of fireworks in accordance with this chapter.

Sec. 3743.02. (A) Any person who wishes to manufacturefireworks in this state shall submit to the fire marshal anapplication for licensure as a manufacturer of fireworks beforethe first day ofOctober of each year. Theapplicationshall besubmitted prior to the operation of a fireworks plant,shall beona form prescribed by the fire marshal, shall containallinformation required by this section or requested by the firemarshal, and shall be accompanied by the license fee,fingerprints, and proof of insurancecoverage described indivision (B) of thissection.

The fire marshal shall prescribe a form for applicationsforlicensure as a manufacturer of fireworks and make a copy oftheform available, upon request, to persons who seek thatlicensure.

(B) An applicant for licensure as a manufacturer offireworks shall submit with the applicationall of thefollowing:

(1) A license fee oftwo thousandsevenhundredfiftydollars,which the fire marshal shall use topay forfireworkssafety education, training programs, and inspections;. If the applicant has any storage locations approved in accordance with division (I) of section 3743.04 of the Revised Code, the applicant also shall submit a fee of one hundred dollars per storage location for the inspection of each storage location.

(2)Proof of comprehensive generalliability insurancecoverage, specifically including fire andsmoke casualtyonpremises and products, in an amount not lessthan one milliondollars foreach occurrence for bodily injuryliability andwrongful death liability atthe fireworks plant.Allapplicantsshall submit evidence ofcomprehensive generalliability insurancecoverage verified by the insurer andcertifiedas to its provisionof the minimum coverage required under thisdivision.

(3) One complete set of the applicant's fingerprints andacomplete set of fingerprints of any individual holding,owning, orcontrolling a five per cent or greater beneficial orequityinterest in the applicant for the license.

(C) A separate application for licensure as a manufacturerof fireworks shall be submitted for each fireworks plant that aperson wishes to operate in this state.

(D) If an applicant intends to include the processing offireworks as any part of its proposed manufacturing of fireworks,a statement indicating that intent shall be included in itsapplication for licensure.

Sec. 3743.04. (A) The license of a manufacturer offireworks is effective for one year beginning on the first day ofDecember. The fire marshal shall issueor renew a license only onthatdate and at no other time. If a manufacturer of fireworkswishesto continue manufacturing fireworks at the designatedfireworksplant after its then effective license expires, it shallapplyno laterthan the first day of Octoberfor a new licensepursuant to section 3743.02 of the RevisedCode. The fire marshalshall send a written notice of theexpiration of its license to alicensed manufacturer at leastthreemonths before theexpirationdate.

(B) If, during the effective period of its licensure, alicensed manufacturer of fireworks wishes to construct, locate,orrelocate any buildings or other structures on the premises ofitsfireworks plant, to make any structural change or renovationinany building or other structure on the premises of itsfireworksplant, or to change the nature of its manufacturing offireworksso as to include the processing of fireworks, themanufacturershall notify the fire marshal in writing. The firemarshal mayrequire a licensed manufacturer also to submitdocumentation,including, but not limited to, plans covering theproposedconstruction, location, relocation, structural change orrenovation, or change in manufacturing of fireworks, ifthefiremarshal determines the documentation is necessary forevaluationpurposesin light of the proposed construction,location,relocation,structural change or renovation, or changeinmanufacturing offireworks.

Upon receipt of the notification and additionaldocumentationrequired by the fire marshal, the fire marshalshall inspect thepremises of the fireworks plant to determine ifthe proposedconstruction, location, relocation, structuralchange orrenovation, or change in manufacturing of fireworksconforms tosections 3743.02 to 3743.08 of the Revised Code andthe rulesadopted by the fire marshal pursuant to section 3743.05of theRevised Code. The fire marshal shall issue a writtenauthorization to the manufacturer for the construction, location,relocation, structural change or renovation, or change inmanufacturing of fireworks ifthe fire marshal determines,uponthe inspectionand a review of submitted documentation, that theconstruction,location, relocation, structural change orrenovation, or changein manufacturing of fireworks conforms tothose sections andrules. Upon authorizing a change inmanufacturing of fireworksto include the processing of fireworks,the fire marshal shallmake notations on the manufacturer'slicense and in the list oflicensed manufacturers in accordancewith section 3743.03 of theRevised Code.

On or before June 1, 1998, a licensed manufacturer shallinstall, in every licensed building in which fireworksaremanufactured, stored, or displayed and to which the public hasaccess,interlinked fire detection, smoke exhaust, and smokeevacuation systems that are approved by the superintendent of thedivision ofindustrial compliance,and shall comply with floorplans showing occupancy load limits and internalcirculation andegress patterns that are approved by the firemarshal andsuperintendent, and that are submitted under seal asrequired bysection 3791.04 of the Revised Code. Notwithstanding section3743.59 of the Revised Code, theconstruction and safetyrequirements established in this division are not subject to anyvariance,waiver, or exclusion.

(1) The manufacturing of fireworks on the premises of thefireworks plant as described in the application for licensure orin the notification submitted under division (B) of this section,except that a licensed manufacturer shall not engage in theprocessing of fireworks unless authorized to do so by itslicense.

(2) To possess for sale at wholesale and sell at wholesalethe fireworks manufactured by the manufacturer, to persons whoarelicensed wholesalers of fireworks, to out-of-state residentsinaccordance with section 3743.44 of the Revised Code, toresidentsof this state in accordance with section 3743.45 of theRevisedCode, or to persons located in another state provided thefireworks are shipped directly out of this state to them by themanufacturer. A person who is licensed as a manufacturer offireworks onJune 14,1988,alsomay possess for sale and sellpursuant to division(C)(2) ofthis section fireworks other thanthosethe personmanufactures. Thepossession for sale shall beon the premises ofthe fireworksplant described in theapplication for licensure orin thenotification submitted underdivision (B) of this section,andthe sale shall be fromtheinside of a licensedbuilding and from no other structure ordevice outside a licensedbuilding. At no time shall a licensedmanufacturer sell any classof fireworks outside alicensedbuilding.

(3) Possess for sale at retail and sell at retail thefireworks manufactured by the manufacturer, other than1.4Gfireworks as designated by the fire marshal inrules adoptedpursuant to division (A) of section 3743.05 of the Revised Code,to licensed exhibitors in accordance with sections 3743.50 to3743.55 of the Revised Code, and possess for sale at retail andsell at retail the fireworks manufactured by the manufacturer,including1.4G fireworks, to out-of-stateresidentsinaccordancewith section 3743.44 of the Revised Code, toresidentsof thisstate in accordance with section 3743.45 of theRevisedCode, orto persons located in another state provided thefireworks areshipped directly out of this state to them by themanufacturer. Aperson who is licensed as a manufacturer offireworks onJune 14,1988,may also possess for sale and sell pursuant to division(C)(3) ofthis section fireworks other than thosethe personmanufactures. Thepossession for sale shall be on the premises ofthe fireworksplant described in the application for licensure orin thenotification submitted under division (B) of this section,andthe sale shall be fromthe inside of a licensedbuilding andfrom no other structure or device outside a licensedbuilding. Atno time shall a licensed manufacturer sell any classof fireworksoutside alicensed building.

A licensed manufacturer of fireworks shall sell underdivision (C)of this section only fireworks that meet thestandards set by the consumerproduct safety commission or by theAmerican fireworksstandard laboratories or that have received anEX number from theUnited States department of transportation.

(D) The license of a manufacturer of fireworks shall beprotected under glass and posted in a conspicuous place on thepremises of the fireworks plant. Except as otherwise provided inthis division, the license is not transferable or assignable. Alicense may be transferred to another person for the samefireworks plant for which the license was issued if the assets ofthe plant are transferred to that person by inheritance or by asale approved by the fire marshal. The license is subject torevocation in accordance with section 3743.08 of the RevisedCode.

(E)The fire marshal shall not place the license of amanufacturer of fireworks in a temporarily inactive status whilethe holder ofthe license isattempting to qualify to retain thelicense.

(F) Each licensedmanufacturer of fireworks that possessesfireworks for sale andsells fireworks under division(C) ofsection 3743.04 of the RevisedCode, or a designee of themanufacturer, whose identity is provided to the fire marshal bythe manufacturer, annually shall attend a continuing educationprogram consisting of not less than eight hours of instruction.The fire marshal shall developthe program and the fire marshal ora person or public agency approved by thefire marshal shallconduct it. A licensed manufacturer or the manufacturer'sdesignee who attends a program as required under this division,within one year after attending the program, shall conductin-service training for other employees of the licensedmanufacturer regarding the information obtained in the program. Alicensed manufacturer shall provide the fire marshal withnoticeof the date, time, and place of all in-service trainingnot lessthan thirty days prior to an in-service trainingevent.

(G) A licensedmanufacturer shall maintain comprehensivegeneral liabilityinsurance coverage in the amount and typespecified underdivision (B)(2) of section3743.02 of the RevisedCode at all times. Each policyof insurance required under thisdivision shall contain aprovision requiring the insurer to givenot less than fifteendays' prior written notice to the firemarshal beforetermination, lapse, or cancellation of the policy,or any changein the policy that reduces the coverage below theminimumrequired under this division. Prior to canceling orreducingthe amount of coverage of any comprehensive generalliabilityinsurance coverage required under this division, alicensedmanufacturer shall secure supplemental insurance in anamountand type that satisfies the requirements of this divisionsothat no lapse in coverage occurs at any time. A licensedmanufacturer who secures supplemental insurance shall fileevidence of the supplemental insurance with the fire marshalpriorto canceling or reducing the amount of coverage of anycomprehensive general liability insurance coverage requiredunderthis division.

(H) The fire marshal shall adopt rules for the expansion or contraction of a licensed premises and for approval of such expansions or contractions. The boundaries of a licensed premises, including any geographic expansion or contraction of those boundaries, shall be approved by the fire marshal in accordance with rules the fire marshal adopts. If the licensed premises consists of more than one parcel of real estate, those parcels shall be contiguous unless an exception is allowed pursuant to division (I) of this section.

(I)(1) A licensed manufacturer may expand its licensed premises within this state to include not more than two storage locations that are located upon one or more real estate parcels that are noncontiguous to the licensed premises as that licensed premises exists on the date a licensee submits an application as described below, if all of the following apply:

(a) The licensee submits an application to the fire marshal and an application fee of one hundred dollars per storage location for which the licensee is requesting approval.

(b) The identity of the holder of the license remains the same at the storage location.

(c) The storage location has received a valid certificate of zoning compliance as applicable and a valid certificate of occupancy for each building or structure at the storage location issued by the authority having jurisdiction to issue the certificate for the storage location, and those certificates permit the distribution and storage of fireworks regulated under this chapter at the storage location and in the buildings or structures. The storage location shall be in compliance with all other applicable federal, state, and local laws and regulations.

(d) Every building or structure located upon the storage location is separated from occupied residential and nonresidential buildings or structures, railroads, highways, or any other buildings or structures on the licensed premises in accordance with the distances specified in the rules adopted by the fire marshal pursuant to section 3743.05 of the Revised Code.

(e) Neither the licensee nor any person holding, owning, or controlling a five per cent or greater beneficial or equity interest in the licensee has been convicted of or pleaded guilty to a felony under the laws of this state, any other state, or the United States, after the effective date of this amendment.

(2) The fire marshal shall approve an application for expansion requested under division (I)(1) of this section if the fire marshal receives the application fee and proof that the requirements of divisions (I)(1)(b) to (e) of this section are satisfied. The storage location shall be considered part of the original licensed premises and shall use the same distinct number assigned to the original licensed premises with any additional designations as the fire marshal deems necessary in accordance with section 3743.03 of the Revised Code.

(J)(1) A licensee who obtains approval for the use of a storage location in accordance with division (I) of this section shall use the storage location exclusively for the following activities, in accordance with division (C) of this section:

(a) The packaging, assembling, or storing of fireworks, which shall only occur in buildings, structures, or trailers approved for such hazardous uses by the building code official having jurisdiction for the storage location and shall be in accordance with the rules adopted by the fire marshal under division (G) of section 3743.05 of the Revised Code for the packaging, assembling, and storage of fireworks.

(b) Distributing fireworks to other parcels of real estate located on the manufacturer's licensed premises, to licensed wholesalers or other licensed manufacturers in this state or to similarly licensed persons located in another state or country;

(c) Distributing fireworks to a licensed exhibitor of fireworks pursuant to a properly issued permit in accordance with section 3743.54 of the Revised Code.

(2) A licensed manufacturer shall not engage in any sales activity, including the retail sale of fireworks otherwise permitted under division (C)(2) or (C)(3) of this section, or pursuant to section 3743.44 or 3743.45 of the Revised Code, at the storage location approved under this section.

(K) The licensee shall prohibit public access to the storage location. The fire marshal shall adopt rules to describe the acceptable measures a manufacturer shall use to prohibit access to the storage site.

Sec. 3743.05. The fire marshal shall adopt rulesinaccordance with Chapter 119. of the Revised Code governingtheclassificationof fireworksthat are consistent with theclassification of fireworksby the United States department oftransportation as setforth in Title 49, Code of FederalRegulations, and the manufacture of fireworks and the storage ofmanufactured fireworks by licensed manufacturers of fireworks.Therules shall be designed to promote the safety and security ofemployees of manufacturers, members of the public, and thefireworks plant.

The rules shall be consistent with sections 3743.02 to3743.08 of the Revised Code, shall besubstantiallyequivalent tothe most recent versions of chapters 1123, 1124, and1126 of themost recentnational fire protection associationstandards, andshall applyto, but not be limited to, thefollowing subjectmatters:

(A) A classification of fireworks bynumber and letterdesignation, including, specifically, a1.4Gdesignationoffireworks. The classes of fireworks established by the firemarshal shall be substantially equivalent to those defined by theUnitedStates department of transportation by regulation, exceptthat, if thefire marshal determines that a type of fireworksdesignated ascommon fireworks by the United States department oftransportation meets the criteria of any class of fireworks,otherthan1.4G fireworks, as adopted by the firemarshalpursuant tothis section, the fire marshal may include the typeoffireworksin the other class instead of1.4G.

(B) Appropriate standards for the manufacturing of typesoffireworksthat are consistent with standards adopted by theUnitedStates department of transportation and theconsumer productsafety commission, including, but not limited to,the following:

(C) Cleanliness and orderliness in, the heating, lighting,and use of stoves and flame-producing items in, smoking in, theprevention of fire and explosion in, the availability of fireextinguishers or other fire-fighting equipment and their use in,and emergency procedures relative to the buildings and otherstructures located on the premises of a fireworks plant.

(D) Appropriate uniforms to be worn by employees ofmanufacturers in the course of the manufacturing, handling, andstoring of fireworks, and the use of protective clothing andequipment by the employees.

(F) Required distances between buildings or structures used in the manufacturing, storage, or sale of fireworks and occupied residential and nonresidential buildings or structures, railroads, highways, or any additional buildings or structures located on the licensed premises. The rules adopted pursuant to this division do not apply to factory buildings in fireworks plants that were erected on or before May 30, 1986, and that were legally being used for fireworks activities under authority of a valid license issued by the fire marshal as of December 1, 1990, pursuant to sections 3743.03 and 3743.04 of the Revised Code.

(G) Requirements for the operation of storage locations, including packaging, assembling, and storage of fireworks.

Sec. 3743.06. In addition to conforming to the rules ofthefire marshal adopted pursuant to section 3743.05 of theRevisedCode, licensed manufacturers of fireworks shall operatetheirfireworks plants in accordance with the following:

(A) Signs indicating that smoking is generally forbiddenandtrespassing is prohibited on the premises of a fireworksplantshall be posted on the premises in a manner determined bythe firemarshal.

(B) Reasonable precautions shall be taken to protect thepremises of a fireworks plant from trespass, loss, theft, ordestruction. Only persons employed by the manufacturer,authorized governmental personnel, and persons who have obtainedpermission from a member of the manufacturer's office to be onthepremises, are to be allowed to enter and remain on thepremises.

(C) Smoking or the carrying of pipes, cigarettes,orcigars, matches, lighters, other flame-producing items, oropenflame on,or the carrying of a concealed source of ignitioninto,the premises of a fireworks plant is prohibited,except that amanufacturer may permit smoking in specifiedlunchrooms orrestrooms in buildings or other structures in whichnomanufacturing, handling,sales, or storage of fireworkstakesplace. "NO SMOKING" signs shall be postedon the premises asrequired by the fire marshal.

(D) Fire and explosion prevention and other reasonablesafety measures and precautions shall be implemented by amanufacturer.

(E) Persons shall not be permitted to have in theirpossession or under their control, while they are on the premisesof the fireworks plant, any intoxicating liquor, beer, orcontrolled substance, and they shall not be permitted to enter orremain on the premises if they are found to be under theinfluenceof any intoxicating liquor, beer, or controlledsubstance.

(F) A manufacturer shall conform to all building, safety,and zoning statutes, ordinances, rules, or other enactments thatapply to the premises of its fireworks plant.

(G) No building used in the manufacture, storage, or saleoffireworks shall be situated nearer than one thousand feet toanystructure that is not located on the property of and thatdoes notbelong to the licensed fireworks manufacturer, or nearerthanthree hundred feet to any highway or railroad, or nearerthan onehundred feet to any building used for the storage ofexplosives orfireworks, or nearer than fifty feet to any factorybuilding.Thisdivision does not apply to factory buildings infireworksplantsthat were erected on or before May 30, 1986, andthat werelegallybeing used for fireworks activities underauthority of avalidlicense issued by the fire marshal as ofDecember 1, 1990,pursuant to sections 3743.03 and 3743.04 of theRevised Code.

~~(H)~~ Each fireworks plant shall have at least one class 1magazine that is approved by the bureau of alcohol, tobacco, andfirearms of the United States department of the treasury and thatis otherwise in conformity with federal law. This division doesnot apply to fireworks plants existing on or before August 3,1931.

~~(I)~~(H)Awnings, tents, and canopies shall not be used asfacilitiesfor the sale or storage of fireworks.This divisiondoes not prohibit theuse of an awning orcanopy attached to apublic access showroom for storingnonflammable shoppingconvenience items such as shopping cartsor baskets or providing ashaded area for patrons waiting toenter the public sales area.

~~(J)~~(I) Fireworks may bestored in trailers if the trailers areproperly enclosed, secured, andgrounded and areseparated fromany structure to which the public is admittedby a distance thatwill, in the fire marshal's judgment, allow fire-fightingequipment to have full access to the structureson the licensedpremises. Suchtrailers may be moved into closer proximity to anystructure only toaccept or discharge cargo for a period not toexceed forty-eight hours. Onlytwo such trailers may be placed insuch closer proximity at any one time. At no time may trailers beused for conducting sales of any class offireworks, nor maymembers of the public have access to the trailers.

Storage areas for fireworks that are in the same buildingwhere fireworksaredisplayed and sold to the public shall beseparated from the areas to whichthe public has access by anappropriately rated fire wall.

~~(K)~~(J) A fire suppression system as defined in section 3781.108of the Revised Codemay be turned off only for repair, drainage ofthe system to prevent damage byfreezing during the period oftime, approved by the fire marshal, that thefacility is closed toall public access during winter months, or maintenanceofthesystem. If any repair or maintenance is necessary during timeswhenthe facility is open for public access and business asapproved by thefire marshal, the licensed manufacturer shallnotify inadvance the appropriate insurance company and fire chiefor fire preventionofficer regarding the nature of the maintenanceor repair and the time when itwill be performed.

~~(L)~~(K) If any fireworks item is removed from itsoriginalpackage or is manufactured with any fuse other than a safety fuseapproved by the consumer product safety commission, then theitemshall be covered completely by repackaging or bagging or it shallotherwise be covered so as to prevent ignition prior to sale.

~~(M)~~(L) A safety officershall be present during regularbusinesshours at a buildingopen to the public during the periodcommencing fourteen daysbefore, and ending two days after, eachfourth day ofJuly. The officershall be highly visible, enforcethis chapter and any applicablebuilding codes to the extent theofficer is authorized by law,and be one of the following:

(2) A law enforcement officer of a municipal corporation,township, or township or joint township police district;

(3) A private uniformed security guard registered undersection 4749.06 of the RevisedCode.

~~(N)~~(M) All doors of allbuildings on the licensed premisesshallswing outward.

~~(O)~~(N) All wholesale andcommercial sales of fireworks shall bepackaged, shipped,placarded, and transported in accordance withUnitedStates department oftransportation regulations applicableto the transportation, andthe offering for transportation, ofhazardous materials. Forpurposes of this division, "wholesaleand commercial sales"includes all sales for resale and anynonretail sale made infurtherance of a commercial enterprise.Forpurposes ofenforcement of these regulations under section4905.83of theRevisedCode, any sales transactionexceeding onethousandpounds shall be rebuttably presumed to bea wholesale orcommercial sale.

Sec. 3743.15. (A) Except as provided in division (C) ofthis section, any person who wishes to be a wholesaler offireworks in this state shall submit to the fire marshal anapplication for licensure as a wholesaler of fireworks before thefirst day ofOctober of each year. Theapplication shallbesubmitted prior to commencement of business operations, shallbeon a form prescribed by the fire marshal, shall contain allinformation requested by the fire marshal, and shall beaccompanied by the license fee,fingerprints, and proof ofinsurance coveragedescribedin division (B) of this section.

The fire marshal shall prescribe a form for applicationsforlicensure as a wholesaler of fireworks and make a copy of theformavailable, upon request, to persons who seek that licensure.

(B) An applicant for licensure as a wholesaler offireworksshall submit with the applicationall of thefollowing:

(1) A license fee oftwo thousandsevenhundredfiftydollars,which the fire marshal shall use topay forfireworkssafety education, training programs, and inspections;. If the applicant has any storage locations approved in accordance with division (G) of section 3743.17 of the Revised Code, the applicant also shall submit a fee of one hundred dollars per storage location for the inspection of each storage location.

(2)Proof of comprehensivegeneral liabilityinsurancecoverage, specifically including fire and smokecasualtyonpremises, in an amount not less than one million dollars foreachoccurrence for bodily injury liability and wrongful deathliability at itsbusiness location. Proof of such insurancecoverage shall be submittedtogether with proof of coverage forproducts liability on all inventorylocated at the businesslocation. All applicants shall submitevidence of comprehensivegeneral liability insurance coverage verified by theinsurer andcertified as to its provision of the minimum coverage requiredunder this division.

(C) A licensed manufacturer of fireworks is not requiredtoapply for and obtain a wholesaler of fireworks license inorder toengage in the wholesale sale of fireworks as authorizedbydivision (C)(2) of section 3743.04 of the Revised Code. Abusiness which is not a licensed manufacturer of fireworks mayengage in the wholesale and retail sale of fireworks in the samemanner as a licensed manufacturer of fireworks is authorized todounder this chapter without the necessity of applying for andobtaining a license pursuant to this section, but only if thebusiness sells the fireworks on the premises of a fireworks plantcovered by a license issued under section 3743.03 of the RevisedCode and the holder of that license owns at least a majorityinterest in that business. However, if a licensed manufactureroffireworks wishes to engage in the wholesale sale of fireworksinthis state at a location other than the premises of thefireworksplant described in its application for licensure as amanufactureror in a notification submitted under division (B) ofsection3743.04 of the Revised Code, the manufacturer shall firstapplyfor and obtain a wholesaler of fireworks license beforeengagingin wholesale sales of fireworks at the other location.

(D) A separate application for licensure as a wholesaleroffireworks shall be submitted for each location at which apersonwishes to engage in wholesale sales of fireworks.

Sec. 3743.17. (A) The license of a wholesaler offireworksis effective for one year beginning on the first day ofDecember.The fire marshal shall issueor renew a license only on thatdateand at no other time. If a wholesaler of fireworks wishestocontinue engaging in the wholesale sale of fireworks at theparticular location after its then effective license expires, itshall applynot later than the first day of October for a newlicense pursuant to section 3743.15 of theRevised Code. The firemarshal shall send a written notice ofthe expiration of itslicense to a licensed wholesaler at leastthree months beforetheexpiration date.

(B) If, during the effective period of its licensure, alicensed wholesaler of fireworks wishes to perform anyconstruction, or make any structural change or renovation, on thepremises on which the fireworks are sold, the wholesaler shallnotify the fire marshal in writing. The fire marshal may requirea licensed wholesaler also to submit documentation, including,butnot limited to, plans covering the proposed construction orstructural change or renovation, if the fire marshal determinesthe documentation is necessary for evaluation purposes in lightofthe proposed construction or structural change or renovation.

Upon receipt of the notification and additionaldocumentationrequired by the fire marshal, the fire marshalshall inspect thepremises on which the fireworks are sold todetermine if theproposed construction or structural change orrenovation conformsto sections 3743.15 to 3743.21 of the RevisedCode and the rulesadopted by the fire marshal pursuant tosection 3743.18 of theRevised Code. The fire marshal shallissue a writtenauthorization to the wholesaler for theconstruction or structuralchange or renovation ifthe firemarshal determines, upon theinspection and a review of submitteddocumentation, that theconstruction or structural change or renovationconforms to thosesections and rules.

(1) Possess for sale at wholesale and sell at wholesalefireworks to persons who are licensed wholesalers of fireworks,toout-of-state residents in accordance with section 3743.44 oftheRevised Code, to residents of this state in accordance withsection 3743.45 of the Revised Code, or to persons located inanother state provided the fireworks are shipped directly out ofthis state to them by the wholesaler. The possession for saleshall be at the location described in the application forlicensure or in the notification submitted under division (B) ofthis section, and the sale shall be fromthe insideofa licensedbuilding and from no structure or device outside alicensedbuilding. At no time shall a licensed wholesaler sellany classof fireworksoutside a licensed building.

(2) Possess for sale at retail and sell at retailfireworks,other than1.4G fireworksas designated by the firemarshal inrules adopted pursuant to division (A) ofsection3743.05 of theRevised Code, to licensed exhibitors in accordancewith sections3743.50 to 3743.55 of the Revised Code, and possessfor sale atretail and sell at retail fireworks, including1.4G fireworks, toout-of-state residents in accordancewithsection 3743.44 of theRevised Code, to residents of thisstatein accordance withsection 3743.45 of the Revised Code, ortopersons located inanother state provided the fireworks areshipped directly out ofthis state to them by the wholesaler.Thepossession for saleshall be at the location described in theapplication forlicensure or in the notification submitted underdivision (B) ofthis section, and the sale shall be fromthe inside of thelicensed building and from no otherstructure or device outsidethis licensed building. At no timeshall alicensed wholesalersell any class of fireworks outside alicensed building.

A licensed wholesaler of fireworks shall sellunder division(C) of this section only fireworks that meet the standards set bythe consumer product safety commission or by the Americanfireworksstandard laboratories or that have received an EX numberfrom theUnited States department of transportation.

(D)~~(1)~~ The license of a wholesaler of fireworks shall beprotected under glass and posted in a conspicuous place at thelocation described in the application for licensure or in thenotification submitted under division (B) of this section.Exceptas otherwise provided in this ~~division~~ section, the license is nottransferable or assignable. A license may be transferred toanother person for the same location for which the license wasissued if the assets of the wholesaler are transferred to thatperson by inheritance or by a sale approved by the fire marshal.The license is subject to revocation in accordance with section3743.21 of the Revised Code.

~~(2)~~(E) The fire marshal shall adopt rules for the expansion or contraction of a licensed premises and for the approval of an expansion or contraction. The boundaries of a licensed premises, including any geographic expansion or contraction of those boundaries, shall be approved by the fire marshal in accordance with rules the fire marshal adopts. If the licensed premises of a licensed wholesaler from which the wholesaler operates consists of more than one parcel of real estate, those parcels must be contiguous, unless an exception is allowed pursuant to division (G) of this section.

(F)(1)Upon application by a licensed wholesaler of fireworks, awholesalerlicense may be transferred from one geographic locationto another within thesame municipal corporation or within theunincorporated area of the sametownship, but only if all of thefollowing apply:

(a) The identity of the holder of the license remains thesame inthenew location.

(b) The former location is closed prior to the opening ofthenewlocation and no fireworks business of any kind isconducted atthe formerlocation after the transfer of thelicense.

(c) The new location has received a local certificate ofzoningcompliance and a local certificate of occupancy, andotherwise is incompliancewith all local building regulations.

(d) The transfer of the license is requested by the licenseebecause theexisting facility poses an immediate hazard to thepublic.

(e) ~~Any~~ Every building or structure at the new location is situated no closerthanonethousand feet to any property line or structure that doesnot belong to thelicensee requesting the transfer, no closer thanthree hundred feet to anyhighway or railroad, no closer than onehundred feet to any building used forthe storage of explosives orfireworks by the licensee, no closer than fiftyfeet to anyfactory building owned or used by the licensee, and no closer thantwo thousand feet to any building used for the sale, storage, ormanufacturingof fireworks that does not belong to the licensee separated from occupied residential and nonresidential buildings or structures, railroads, highways, or any other buildings or structures located on the licensed premises in accordance with the distances specified in the rules adopted by the fire marshal pursuant to section 3743.18 of the Revised Code.If the licensee fails tocomply with the requirements of division~~(D)(2)(e)~~(F)(1)(e) of this section by the licensee's ownact, the licenseat the new location isforfeited.

(f) Neither the licensee nor any person holding, owning, orcontrollinga five per cent or greater beneficial or equityinterest in the licensee hasbeen convicted of or has pleadedguilty to a felony under the laws of thisstate, any other state,or the UnitedStates after~~the effective date of this amendment~~June 30, 1997.

(2) The new location shallcomply with the requirements specifiedindivisions (A)(1) and (2) of section 3743.25 ofthe RevisedCodewhether or not the fireworks showroom atthe new location isconstructed, expanded, or first begins operating on andafter~~theeffective date of this amendment~~June 30, 1997.

~~(E)~~(G)(1) A licensed wholesaler may expand its licensed premises within this state to include not more than two storage locations that are located upon one or more real estate parcels that are noncontiguous to the licensed premises as that licensed premises exists on the date a licensee submits an application as described below, if all of the following apply:

(a) The licensee submits an application to the fire marshal requesting the expansion and an application fee of one hundred dollars per storage location for which the licensee is requesting approval.

(b) The identity of the holder of the license remains the same at the storage location.

(c) The storage location has received a valid certificate of zoning compliance, as applicable, and a valid certificate of occupancy for each building or structure at the storage location issued by the authority having jurisdiction to issue the certificate for the storage location, and those certificates permit the distribution and storage of fireworks regulated under this chapter at the storage location and in the buildings or structures. The storage location shall be in compliance with all other applicable federal, state, and local laws and regulations.

(d) Every building or structure located upon the storage location is separated from occupied residential and nonresidential buildings or structures, railroads, highways, and any other buildings or structures on the licensed premises in accordance with the distances specified in the rules adopted by the fire marshal pursuant to section 3743.18 of the Revised Code.

(2) The fire marshal shall approve an application for expansion requested under division (G)(1) of this section if the fire marshal receives the application fee and proof that the requirements of divisions (G)(1)(b) to (e) of this section are satisfied. The storage location shall be considered part of the original licensed premises and shall use the same distinct number assigned to the original licensed premises with any additional designations as the fire marshal deems necessary in accordance with section 3743.16 of the Revised Code.

(H)(1) A licensee who obtains approval for use of a storage location in accordance with division (G) of this section shall use the site exclusively for the following activities, in accordance with division (C)(1) of this section:

(a) Packaging, assembling, or storing fireworks, which shall occur only in buildings approved for such hazardous uses by the building code official having jurisdiction for the storage location and shall be in accordance with the rules adopted by the fire marshal under division (B)(4) of section 3743.18 of the Revised Code for the packaging, assembling, and storage of fireworks.

(b) Distributing fireworks to other parcels of real estate located on the wholesaler's licensed premises, to licensed manufacturers or other licensed wholesalers in this state or to similarly licensed persons located in another state or country;

(c) Distributing fireworks to a licensed exhibitor of fireworks pursuant to a properly issued permit in accordance with section 3743.54 of the Revised Code.

(2) A licensed wholesaler shall not engage in any sales activity, including the retail sale of fireworks otherwise permitted under division (C)(2) of this section or pursuant to section 3743.44 or 3743.45 of the Revised Code, at a storage location approved under this section.

(I) A licensee shall prohibit public access to all storage locations it uses. The fire marshal shall adopt rules establishing acceptable measures a wholesaler shall use to prohibit access to storage sites.

(J) The fire marshal shall not place the license of awholesalerof fireworks in temporarily inactive status while theholder of the license isattempting toqualify to retain thelicense.

~~(F)~~(K) Each licensed wholesaler of fireworks or a designee ofthewholesaler, whose identity is provided to the fire marshal bythe wholesaler,annually shall attend a continuing educationprogram consisting of not lessthan eight hours of instruction.The fire marshal shall develop the programand the fire marshal ora person or public agency approved by the fire marshalshallconduct it. A licensed wholesaler or the wholesaler's designeewhoattends a program as required under this division, within oneyear afterattending the program, shall conductin-servicetraining for other employees of the licensed wholesaler regardingtheinformation obtained in the program. A licensed wholesalershall provide thefiremarshal with notice of the date, time, andplace of all in-service trainingnotless than thirty days priorto an in-service trainingevent.

~~(G)~~(L) A licensedwholesaler shall maintain comprehensivegeneral liabilityinsurance coverage in the amount and typespecified underdivision (B)(2) of section3743.15 of the RevisedCode at all times. Each policyof insurance required under thisdivision shall contain aprovision requiring the insurer to givenot less than fifteendays' prior written notice to the firemarshal beforetermination, lapse, or cancellation of the policy,or any changein the policy that reduces the coverage below theminimumrequired under this division. Prior to canceling orreducingthe amount of coverage of any comprehensive generalliabilityinsurance coverage required under this division, alicensedwholesaler shall secure supplemental insurance in anamount andtype that satisfies the requirements of this divisionso that nolapse in coverage occurs at any time. A licensedwholesaler whosecures supplemental insurance shall file evidenceof thesupplemental insurance with the fire marshal prior tocancelingor reducing the amount of coverage of any comprehensivegeneralliability insurance coverage required under thisdivision.

Sec. 3743.18. (A) The fire marshal shall adopt rules pursuanttoChapter 119. of the Revised Code governing the storage offireworks by and the business operations of licensed wholesalersof fireworks. These rules shall be designed to promote thesafetyand security of employees of wholesalers, members of thepublic,and the premises upon which fireworks are sold.

(B) The rules shall be consistent with sections 3743.15 to3743.21 of the Revised Code, shall besubstantiallyequivalent tothe most recentversions of chapters 1123,1124, and1126 of themost recent national fire protection associationstandards, andshall apply to, but not be limited to, thefollowing subjectmatters:

~~(A)~~(1) Cleanliness and orderliness in, the heating, lighting,and use of stoves and flame-producing items in, smoking in, theprevention of fire and explosion in, the availability of fireextinguishers or other fire-fighting equipment and their use in,and emergency procedures relative to the buildings and otherstructures on a wholesaler's premises.;

~~(B)~~(2) Appropriate uniforms to be worn by employees ofwholesalers in the course of handling and storing of fireworks,and the use of protective clothing and equipment by theemployees.;

(4) Required distances between buildings or structures used in the manufacturing, storage, or sale of fireworks and occupied residential and nonresidential buildings or structures, railroads, highways, or any additional buildings or structures on a licensed premises.

(5) Requirements for the operation of storage locations, including packaging, assembling, and storage of fireworks.

(C) Rules adopted pursuant to division (B)(4) of this section do not apply to buildings that were erected on or before May 30, 1986, and that were legally being used for fireworks activities under authority of a valid license issued by the fire marshal as of December 1, 1990, pursuant to sections 3743.16 and 3743.17 of the Revised Code.

Sec. 3743.19. In addition to conforming to the rules ofthefire marshal adopted pursuant to section 3743.18 of theRevisedCode, licensed wholesalers of fireworks shall conducttheirbusiness operations in accordance with the following:

(A) A wholesaler shall conduct its business operationsfromthe location described in its application for licensure orin anotification submitted under division (B) of section 3743.17ofthe Revised Code.

(B) Signs indicating that smoking is generally forbiddenandtrespassing is prohibited on the premises of a wholesalershall beposted on the premises as determined by the firemarshal.

(C) Reasonable precautions shall be taken to protect thepremises of a wholesaler from trespass, loss, theft, ordestruction.

(D) Smoking or the carrying of pipes, cigarettes,orcigars, matches, lighters, other flame-producing items, oropenflame on,or the carrying of a concealed source of ignitioninto,the premises of a wholesaler is prohibited, except that awholesaler may permit smoking in specified lunchrooms orrestroomsin buildings or other structures in which nosales,handling, orstorage of fireworks takes place. "NO SMOKING"signs shall beposted on the premises as required by the fire marshal.

(E) Fire and explosion prevention and other reasonablesafety measures and precautions shall be implemented by awholesaler.

(F) Persons shall not be permitted to have in theirpossession or under their control, while they are on the premisesof a wholesaler, any intoxicating liquor, beer, or controlledsubstance, and they shall not be permitted to enter or remain onthe premises if they are found to be under the influence of anyintoxicating liquor, beer, or controlled substance.

(G) A wholesaler shall conform to all building, safety,andzoning statutes, ordinances, rules, or other enactments thatapplyto its premises.

(H) No building used in the storage or sale of fireworksshall be situated nearer than one thousand feet to any structurethat is not located on the property of and that does not belongtothe licensed fireworks wholesaler, nearer than three hundredfeetto any highway or railroad, or nearer than one hundred feetto anybuilding used for the storage of explosives or fireworks.Thisdivision does not apply to buildings that were erected on orbefore May 30, 1986, and that were legally being used forfireworks activities under authority of a valid license issued bythe fire marshal as of December 1, 1990, pursuant to sections3743.16 and 3743.17 of the Revised Code.

~~(I)~~ Each building used in the sale of fireworksshall bekept open to the public for at least four hours each daybetweenthe hours of eight a.m. and five p.m., five days of eachweek,every week of the year. Upon application from a licensedwholesaler, the fire marshal may waive any of the requirements ofthis division.

~~(J)~~(I)Awnings, tents, or canopies shall not be used asfacilitiesfor the storage or sale of fireworks. This divisiondoes not prohibit the useof an awning orcanopy attached to apublic access showroom for storingnonflammable shoppingconvenience items such as shopping cartsor baskets or providing ashaded area for patrons waiting toenter the public sales area.

~~(K)~~(J) Fireworks may bestored in trailers if the trailers areproperly enclosed, secured, andgrounded and areseparated fromany structure to which the public is admittedby a distance thatwill, in the fire marshal's judgment, allow fire-fightingequipment to have full access to the structureson the licensedpremises. Suchtrailers may be moved into closer proximity to anystructure only toaccept or discharge cargo for a period not toexceed forty-eight hours. Onlytwo such trailers may be placed insuch closer proximity at any one time. At no time may trailers beused for conducting sales of any class offireworks nor maymembers of the public have access to the trailers.

~~(L)~~(K) A fire suppression system as defined in section3781.108of the Revised Codemay be turned off only for repair,drainage ofthe system to prevent damage byfreezing during theperiod oftime, approved by the fire marshal underdivision (I) ofthissection, that the facility is closed to publicaccess duringwinter months, or maintenance of the system. If anyrepair ormaintenance is necessary during times when the facility is openforpublic access and business, the licensedwholesaler shallnotify in advance the appropriate insurance company and firechiefor fire prevention officer regarding the nature of the maintenanceorrepair and the time when it will be performed.

~~(M)~~(L) If any fireworks item is removed from itsoriginalpackage or is manufactured with any fuse other than a fuseapprovedby the consumer product safety commission, then theitemshall be covered completely by repackaging or bagging or it shallotherwise be covered so as to prevent ignition prior to sale.

~~(N)~~(M) A safety officershall be present during regularbusinesshours at a buildingopen to the public during the periodcommencing fourteen daysbefore,and ending two days after, eachfourth day ofJuly. The officershall be highly visible, enforcethis chapter and any applicablebuilding codes to the extent theofficer is authorized by law,and be one of the following:

(2) A law enforcement officer of a municipal corporation,township, or township or joint township police district;

(3) A private uniformed security guard registered undersection 4749.06 of the RevisedCode.

~~(O)~~(N) All doors of allbuildings on the licensed premisesshallswing outward.

~~(P)~~(O) All wholesale andcommercial sales of fireworks shallbepackaged, shipped,placarded, and transported in accordancewithUnitedStates department oftransportation regulationsapplicableto the transportation, andthe offering fortransportation, ofhazardous materials. Forpurposes of thisdivision, "wholesaleand commercial sales"includes all sales forresale and anynonretail sale made infurtherance of a commercialenterprise.Forpurposes ofenforcement of these regulations undersection4905.83of theRevisedCode, any sales transactionexceeding onethousandpounds shall be rebuttably presumed to beawholesale orcommercial sale.

Sec. 3743.57. (A) All fees collected by the fire marshalfor licenses or permits issued pursuant to this chapter shall bedeposited into the state fire marshal's fund, and interest earnedon the amounts in the fund shall be credited by the treasurer ofstate to the fund.

(B) There is hereby established in the state treasury thefire marshal's fireworks training and education fund. The firemarshal shall deposit all assessments paid under this divisioninto the state treasury to the credit of the fund. Eachfireworksmanufacturer and fireworks wholesaler licensed underthis chaptershall pay assessments to the fire marshal for depositinto thefund as required by this division.

The fire marshal shall impose an initial assessment uponeachlicensed fireworks manufacturer and wholesaler in order toestablish a fund balance offifteen thousand dollars. Thefundbalance shall at no time exceedfifteen thousand dollars,and thefiremarshal shall impose no further assessments unlessthe fundbalance is reduced to five thousand dollars or less. Ifthe fundbalance is reduced to five thousand dollars or less, thefiremarshal shall impose an additional assessment upon eachlicensedfireworks manufacturer and wholesaler in order toincrease thefund balance tofifteen thousand dollars. Thefire marshal shalldetermine the amount of the initial assessmenton eachmanufacturer or wholesaler and each additional assessmentbydividing the total amount needed to be paid into the fund bythetotal number of fireworks manufacturers and wholesalerslicensedunder this chapter. If a licensed fireworks manufacturerorwholesaler fails to pay an assessment required by this divisionwithin thirty days after receiving notice of the assessment, thefire marshal, in accordance with Chapter 119. of the RevisedCode,may refuse to issue, or may revoke, the appropriatelicense.

The fire marshal shall inthe fire marshal's discretionuseamounts in the state fire marshal'sfund forfireworks training and educationpurposes, including, butnotlimited to, the creation ofeducational and training programs,attendance by the fire marshalandthe fire marshal'semployees at conferencesand seminars,the payment of traveland meal expensesassociated with suchattendance,participation by the firemarshal andthe firemarshal'semployees in committeemeetings and othermeetingsrelated topyrotechnic codes, and the payment of traveland mealexpensesassociated with such participation. The use ofthe fundshallcomply with rules of the department of commerce,policiesandprocedures established by the director of budget andmanagement,and all other applicable laws.

Sec. 3743.59. (A) Upon application by an affected party,the fire marshal may grant variances from the requirementsofthis chapter or from the requirements of rules adopted pursuanttothis chapter ifthe fire marshal determines that a literalenforcement ofthe requirement will result in ~~unnecessary hardship~~ practical difficulty in complying with the requirements of this chapter or the rules adopted pursuant to this chapterand that thevariance will not be contrary to the public health,safety, orwelfare. A variance shall not be granted to a personwho isinitially licensed as a manufacturer or wholesaler offireworksafterJune14,1988.

(B) The fire marshal mayauthorize a variance from theprohibitions in this chapteragainst the possession and use ofpyrotechnic compounds to aperson who submits proof that theperson is certified and ingood standing with the Ohiostate boardof education, provided that the pyrotechniccompounds are used foreducational purposes only, or are usedonly at an authorizededucational function approved by thegoverning board thatexercises authority over the educationalfunction.

(C) The fire marshal mayauthorize a variance from theprohibitions in this chapteragainst the possession and use ofpyrotechnic compounds to aperson who possesses and uses thepyrotechnic compounds forpersonal and noncommercial purposes as ahobby. The firemarshal may rescind a variance authorized underthis division atany time, exclusively at the fire marshal'sdiscretion.

Sec. 3743.65. (A) No person shall possess fireworks inthisstate or shall possess for sale or sell fireworks in thisstate,except a licensed manufacturer of fireworks as authorizedbysections 3743.02 to 3743.08 of the Revised Code, a licensedwholesaler of fireworks as authorized by sections 3743.15 to3743.21 of the Revised Code,a shipping permit holder asauthorized bysection 3743.40 of the Revised Code, an out-of-stateresident asauthorized by section 3743.44 of the Revised Code, aresident ofthis state as authorized by section 3743.45 of theRevised Code,or a licensed exhibitor of fireworks as authorizedby sections3743.50 to 3743.55 of the Revised Code, and except asprovided insection 3743.80 of the Revised Code.

(B) Except as provided in section 3743.80 of theRevisedCode and except for licensed exhibitors of fireworks authorizedtoconduct a fireworks exhibition pursuant to sections 3743.50 to3743.55 of the Revised Code, no person shall discharge, ignite,orexplode any fireworks in this state.

(C) No person shall use in a theater or public hall, whatistechnically known as fireworks showers, or a mixturecontainingpotassium chlorate and sulphur.

(D) No person shall sell fireworks of any kind to a personunder eighteen years of age.

(E) No person shall advertise1.4G fireworks forsale.Asign located on a seller's premises identifying the selleras aseller of fireworks is not the advertising of fireworks forsale.

(F) No person, other than a licensed manufacturer,licensedwholesaler, licensed exhibitor, or shipping permitholder, shallpossess1.3G fireworks in this state.

(G)Except as otherwise provided in division ~~(K)~~(J) ofsection3743.06and division ~~(L)~~(K) of section 3743.19 of the Revised Code,no person shall knowinglydisable a fire suppression system asdefined in section 3781.108 of the Revised Code on thepremises ofa fireworks plant of a licensed manufacturer of fireworks or onthe premises of the business operations of a licensed wholesalerof fireworks.

Sec. 3743.75. (A) During the period beginning onJune 29, 2001, and ending on December 15, 2008,the state fire marshal shall not do any of the following:

(1) Issue a license as a manufacturer of fireworks undersections 3743.02 and 3743.03 of the Revised Code to a person for aparticular fireworks plant unless that person possessed such alicense for that fireworks plant immediately prior toJune 29, 2001;

(2) Issue a license as a wholesaler of fireworks undersections 3743.15 and 3743.16 of the Revised Code to a person for aparticular location unless that person possessed such a licensefor that location immediately prior toJune 29, 2001;

(3) Except as provided in division (B) of this section,approve the geographic transfer of a license as a manufacturer or wholesalerof fireworks issued under this chapter to any location other thana location for which a license was issued under this chapterimmediately prior toJune 29,2001.

(B) Division (A)(3) of this section does not apply to atransfer that the state fire marshal approves under division~~(D)(2)~~(F) of section 3743.17 of the Revised Code. ~~Section~~

(C) Notwithstanding section 3743.59 ofthe Revised Code ~~does not apply to this section~~, the prohibited activities established in divisions (A)(1) and (2) of this section, geographic transfers approved pursuant to division (F) of section 3743.17 of the Revised Code, and storage locations allowed pursuant to division (I) of section 3743.04 of the Revised Code or division (G) of section 3743.17 of the Revised Code are not subject to any variance, waiver, or exclusion.

(1) "Person" includes any person or entity, in whatever form or name, that acquires possession of a manufacturer or wholesaler of fireworks license issued pursuant to this chapter by transfer of possession of a license, whether that transfer occurs by purchase, assignment, inheritance, bequest, stock transfer, or any other type of transfer, on the condition that the transfer is in accordance with division (D) of section 3743.04 of the Revised Code or division (D) of section 3743.17 of the Revised Code and is approved by the fire marshal.

(2) "Particular location" includes a licensed premises and, regardless of when approved, any storage location approved in accordance with section 3743.04 or 3743.17 of the Revised Code.

Sec. 3745.015. There is hereby created in the state treasury the environmental protection fund consisting of money credited to the fund under division (A)(3) of section 3734.57 of the Revised Code. The environmental protection agency shall use money in the fund to pay the agency's costs associated with administering and enforcing, or otherwise conducting activities under, this chapter and Chapters 3704., 3734., 3746., 3747., 3748., 3750., 3751., 3752., 3753., 5709., 6101., 6103., 6105., 6109., 6111., 6112., 6113., 6115., 6117., and 6119. and sections 122.65 and 1521.19 of the Revised Code.

Sec. 3745.11. (A) Applicants for and holders of permits,licenses, variances, plan approvals, and certifications issued bythe director of environmental protection pursuant to Chapters3704., 3734., 6109., and 6111. of the Revised Code shall pay afeeto the environmental protection agency for each such issuanceandeach application for an issuance as provided by this section.Nofee shall be charged for any issuance for which no applicationhasbeen submitted to the director.

(B) Each person who is issued a permit to install prior to July 1, 2003, pursuant to rules adopted under division (F) of section 3704.03ofthe Revised Code shall pay the fees specified in the following schedules:

Units burning exclusively natural gas, number two fuel oil, or both shall be assessed a fee that is one-half of the applicable amount established in division (F)(1) of this section.

In any process where process weight rate cannot beascertained, the minimumfee shall be assessed.

(b) Notwithstanding division (B)(3)(a) of this section, any person issued a permit to install pursuant to rules adopted under division (F) of section 3704.03 of the Revised Code shall pay the fees established in division (B)(3)(c) of this section for a process used in any of the following industries, as identified by the applicable four-digit standard industrial classification code according to the Standard Industrial Classification Manual published by the United States office of management and budget in the executive office of the president, 1972, as revised:

(c) The fees established in the following schedule apply to the issuance of a permit to install pursuant to rules adopted under division (F) of section 3704.03 of the Revised Code for a process listed in division (B)(3)(b) of this section:

(C)(1) Except as otherwise provided in division (C)(2) ofthis section, beginning July 1, 1994, each person who owns oroperates an air contaminant source and who is required to applyfor and obtain a Title V permit under section 3704.036 of theRevised Code shall pay the fees set forth in division (C)(1) ofthis section. For the purposes of that division, total emissionsof air contaminants may be calculated using engineeringcalculations, emissions factors, material balance calculations,orperformance testing procedures, as authorized by the director.

The following fees shall be assessed on the total actualemissions from a source in tons per year of the regulatedpollutants particulate matter, sulfur dioxide, nitrogen oxides,organic compounds, and lead:

(a) Fifteen dollars per ton on the total actual emissionsofeach such regulated pollutant during the period July throughDecember 1993, to be collected no sooner than July 1, 1994;

(b) Twenty dollars per ton on the total actual emissionsofeach such regulated pollutant during calendar year 1994, to becollected no sooner than April 15, 1995;

(c) Twenty-five dollars per ton on the total actualemissions of each such regulated pollutant in calendar year 1995,and each subsequent calendar year, to be collected no sooner thanthe fifteenth day of April of the year next succeeding thecalendar year in which the emissions occurred.

The fees levied under division (C)(1) of this section donotapply to that portion of the emissions of a regulatedpollutant ata facility that exceed four thousand tons during acalendar year.

(2) The fees assessed under division (C)(1) of thissectionare for the purpose of providing funding for the Title Vpermitprogram.

(3) The fees assessed under division (C)(1) of thissectiondo not apply to emissions from any electric generatingunitdesignated as a Phase I unit under Title IV of the federalCleanAir Act prior to calendar year 2000. Those fees shall beassessedon the emissions from such a generating unit commencingincalendar year 2001 based upon the total actual emissions fromthegenerating unit during calendar year 2000and shall continue to beassessed each subsequent calendar year based on the total actualemissions from the generating unit during the preceding calendaryear.

(4) The director shall issue invoices to owners oroperatorsof air contaminant sources who are required to pay afee assessedunder division (C) or (D) of this section. Any suchinvoice shallbe issued no sooner than the applicable date whenthe fee firstmay be collected in a year under the applicabledivision, shallidentify the nature and amount of the feeassessed, and shallindicate that the fee is required to be paidwithin thirty daysafter the issuance of the invoice.

(D)(1) Except as provided in division(D)(3) of thissection, from January 1, 1994, through December 31, 2003, each personwho owns oroperates an air contaminant source; who is required to apply forapermit to operate pursuant to rules adopted under division (G),ora variance pursuant to division (H), of section 3704.03 of theRevised Code; and who is not required to apply for and obtain aTitle V permit under section 3704.036 of the Revised Code shallpay a single fee based upon the sum of the actual annualemissionsfrom the facility of the regulated pollutantsparticulate matter,sulfur dioxide, nitrogen oxides,organic compounds, and lead inaccordance with the followingschedule:

(2) Except as provided in division (D)(3) of this section, beginning January 1, 2004, each person who owns or operates an air contaminant source; who is required to apply for a permit to operate pursuant to rules adopted under division (G), or a variance pursuant to division (H), of section 3704.03 of the Revised Code; and who is not required to apply for and obtain a Title V permit under section 3704.03 of the Revised Code shall pay a single fee based upon the sum of the actual annual emissions from the facility of the regulated pollutants particulate matter, sulfur dioxide, nitrogen oxides, organic compounds, and lead in accordance with the following schedule:

(3)(a) As used in division (D) of this section,"syntheticminor facility" means a facility for which one ormore permits toinstall or permits to operate have been issued for the aircontaminant sources at the facility that include terms andconditions that lower the facility's potential to emit aircontaminants below the major source thresholds established inrules adopted under section 3704.036 of the Revised Code.

(b) Beginning January 1, 2000, through June 30, ~~2006~~ 2008,eachperson who owns or operates asynthetic minor facility shallpayan annual fee based on the sumof the actual annual emissionsfromthe facility of particulatematter, sulfur dioxide, nitrogendioxide, organic compounds, andlead in accordance with thefollowing schedule:

(4) The fees assessed under division (D)(1)of this sectionshall be collectedannually no sooner than the fifteenth day ofApril, commencing in 1995. The fees assessed under division (D)(2) of this section shall be collected annually no sooner than the fifteenth day of April, commencing in 2005. The fees assessed under division(D)(3) of this section shall becollected no sooner than thefifteenth day of April, commencingin 2000. The fees assessedunderdivision (D) ofthis section in a calendar yearshall bebased upon the sum of theactual emissions of thoseregulatedpollutants during thepreceding calendar year. For the purpose ofdivision (D) of thissection, emissions of aircontaminants may becalculated usingengineering calculations, emission factors,material balancecalculations, or performance testing procedures,as authorized bythe director. The director, by rule, mayrequirepersons who arerequired to pay the fees assessed underdivision(D) of thissection to pay those feesbiennially rather thanannually.

(E)(1) Consistent with the need to cover the reasonablecosts of the Title V permit program, the director annually shallincrease the fees prescribed in division (C)(1) of this sectionbythe percentage, if any, by which the consumer price index forthemost recent calendar year ending before the beginning of ayearexceeds the consumer price index for calendar year 1989.Uponcalculating an increase in fees authorized by division (E)(1) ofthissection, the director shall compile revised fee schedules forthe purposesof division (C)(1) of this section and shall make therevised schedulesavailable to persons required to pay the feesassessed under that divisionand to the public.

(a) The consumer price index for any year is the averageofthe consumer price index for all urban consumers published bytheUnited States department of labor as of the close of thetwelve-month period ending on the thirty-first day of August ofthat year.

(b) If the 1989 consumer price index is revised, thedirector shall use the revision of the consumer price index thatis most consistent with that for calendar year 1989.

(F) Each person who is issued a permit to install pursuantto rules adopted under division (F) of section 3704.03 of theRevised Code on or after July 1, 2003, shall pay the feesspecified in the following schedules:

(1) Fuel-burning equipment (boilers, furnaces, or process heaters used in the process of burning fuel for the primary purpose of producing heat or power by indirect heat transfer)

Units burning exclusively natural gas, number two fuel oil,or both shall be assessed a fee that is one-half the applicableamount shown in division (F)(1) of this section.

(2) Combustion turbines and stationary internal combustion engines designed to generate electricity

In any process where process weight rate cannot beascertained, the minimum fee shall be assessed. A boiler, furnace, combustion turbine, stationary internal combustion engine, or process heater designed to provide direct heat or power to a process not designed to generate electricity shall be assessed a fee established in division (F)(4)(a) of this section. A combustion turbine or stationary internal combustion engine designed to generate electricity shall be assessed a fee established in division (F)(2) of this section.

(b) Notwithstanding division (F)~~(3)~~(4)(a) of this section,anyperson issued a permit to install pursuant to rules adoptedunderdivision (F) of section 3704.03 of the Revised Code shallpay thefees set forth in division (F)~~(3)~~(4)(c) of this section fora processused in any of the following industries, as identifiedby theapplicable two-digit, three-digit, or four-digit standard industrial classificationcodeaccording to the Standard Industrial Classification Manualpublished by the United States office of management and budget inthe executive office of the president, ~~1972~~ 1987, as revised:

(c) The fees set forth in the following schedule apply tothe issuance of a permit to install pursuant to rules adoptedunder division (F) of section 3704.03 of the Revised Code for aprocess identified in division (F)~~(3)~~(4)(b) of this section:

(G) An owner or operator who is responsible for anasbestosdemolition or renovation project pursuant to rulesadopted undersection 3704.03 of the Revised Code shall pay thefees set forthin the following schedule:

For purposes of this division,"unit" means any combination oflinear feet or square feet equal to fifty.

(H) A person who is issued an extension of time for apermitto install an air contaminant source pursuant to rulesadoptedunder division (F) of section 3704.03 of the Revised Codeshallpay a fee equal to one-half the fee originally assessed forthepermit to install under this section, except that the fee forsuchan extension shall not exceed two hundred dollars.

(I) A person who is issued a modification to a permit toinstall an air contaminant source pursuant to rules adopted undersection 3704.03 of the Revised Code shall pay a fee equal toone-half of the fee that would be assessed under this section toobtain a permit to install the source. The fee assessed by thisdivision only applies to modifications that are initiated by theowner or operator of the source and shall not exceed two thousanddollars.

(J) Notwithstanding division (B) or (F) of this section, aperson who applies for or obtains a permit to install pursuant torules adopted under division (F) of section 3704.03 of theRevisedCode after the date actual construction of the sourcebegan shallpay a fee for the permit to install that is equal totwice the feethat otherwise would be assessed under theapplicable divisionunless the applicant received authorizationto begin constructionunder division (W) of section 3704.03 ofthe Revised Code. Thisdivision only applies to sources forwhich actual construction ofthe source begins on or after July1, 1993. The imposition orpayment of the fee established inthis division does not precludethe director from taking anyadministrative or judicialenforcement action under this chapter,Chapter 3704., 3714.,3734., or 6111. of the Revised Code, or arule adopted under anyof them, in connection with a violation ofrules adopted underdivision (F) of section 3704.03 of theRevised Code.

As used in this division,"actual construction of thesource"means the initiation of physical on-site constructionactivitiesin connection with improvements to the source that arepermanentin nature, including, without limitation, theinstallation ofbuilding supports and foundations and the layingof undergroundpipework.

(K) Fifty cents per ton of each fee assessed underdivision(C) of this section on actual emissions from a sourceand receivedby the environmental protection agency pursuant tothat divisionshall be deposited into the state treasury to thecredit of thesmall business assistance fund created in section3706.19 of theRevised Code. The remainder of the moneysreceived by thedivision pursuant to that division and moneysreceived by theagency pursuant to divisions (D), (F), (G), (H),(I), and (J) ofthis section shall be deposited in the statetreasury to thecredit of the clean air fund created in section3704.035 of theRevised Code.

(L)(1)(a) Except as otherwise provided in division(L)(1)(b)or (c) of this section, a person issued a waterdischarge permitor renewal of a water discharge permit pursuantto Chapter 6111.of the Revised Code shall pay a fee based oneach point source towhich the issuance is applicable inaccordance with the followingschedule:

(b) Notwithstanding the fee schedule specified in division(L)(1)(a) of this section, the fee for a water discharge permitthat is applicable to coal mining operations regulated underChapter 1513. of the Revised Code shall be two hundred fiftydollars per mine.

(c) Notwithstanding the fee schedule specified in division(L)(1)(a) of this section, the fee for a water discharge permitfor a public discharger identified by I in the third character ofthe permittee's NPDES permit number shall not exceed sevenhundredfifty dollars.

(2) A person applying for a plan approval for a wastewatertreatment works pursuant to section 6111.44, 6111.45, or 6111.46of the Revised Code shall pay a fee of one hundred dollars plussixty-five one-hundredths of one per cent of the estimatedprojectcost through June 30, ~~2006~~ 2008, and one hundreddollars plustwo-tenths of one per cent of the estimated project cost on andafter July 1, ~~2006~~ 2008, except that the total fee shall notexceedfifteen thousand dollars through June 30, ~~2006~~ 2008,andfivethousanddollars on and after July 1, ~~2006~~ 2008. The feeshall be paid at thetime the application is submitted.

(3) A person issued a modification of a water dischargepermit shall pay a fee equal to one-half the fee that otherwisewould be charged for a water discharge permit, except that thefeefor the modification shall not exceed four hundred dollars.

(4) A person who has entered into an agreement with thedirector under section 6111.14 of the Revised Code shall pay anadministrative service fee for each plan submitted under thatsection for approval that shall not exceed the minimum amountnecessary to payadministrative costs directly attributable toprocessing plan approvals. Thedirector annually shall calculatethe fee and shallnotify all persons who have entered intoagreements under thatsection, or who have applied for agreements,of the amount ofthe fee.

(5)(a)(i) Not later than January 30, ~~2004~~ 2006, andJanuary30, ~~2005~~ 2007, a person holding an NPDESdischarge permit issuedpursuantto Chapter 6111. of the Revised Code with anaveragedailydischarge flow of five thousand gallons or more shall pay anonrefundable annual discharge fee. Any person who fails to paythe fee at that time shall pay an additional amount that equalsten per cent of the required annual discharge fee.

(ii) The billing year for the annual discharge feeestablished in division (L)(5)(a)(i)of this section shall consistof atwelve-month period beginning on the first day ofJanuary ofthe year precedingthe date when the annual discharge fee is due.In the case ofan existing source that permanently ceases todischarge during abilling year, the director shall reduce theannual dischargefee, including the surcharge applicable tocertain industrialfacilities pursuant to division (L)(5)(c) ofthissection, by one-twelfth for each full month duringthebilling year that the source was not discharging, but onlyif theperson holding the NPDES discharge permit for the sourcenotifiesthe director in writing, not later than the first day ofOctoberof the billing year, ofthe circumstances causing the cessation ofdischarge.

(iii) The annual discharge fee established indivision(L)(5)(a)(i) of thissection, except for the surcharge applicableto certainindustrial facilities pursuant to division(L)(5)(c) ofthis section, shall be based upon theaverage daily discharge flowin gallons per day calculated using first day ofMay throughthirty-first day ofOctober flow data for the period two yearsprior to the date onwhich the fee is due. In the case of NPDESdischargepermits for new sources, the fee shallbe calculatedusing the average daily design flow of thefacility until actualaverage daily discharge flow values are available forthe timeperiod specified in division(L)(5)(a)(iii) of this section. Theannualdischarge fee may be prorated for a new source as describedin division(L)(5)(a)(ii) of this section.

(b) An NPDES permit holder that is a public dischargershallpay the fee specified in the following schedule:

Public dischargers owning or operating two or more publiclyownedtreatment works serving the same political subdivision, as"treatmentworks" is defined in section 6111.01 of the RevisedCode, and thatserveexclusively political subdivisions having apopulation of fewer than onehundred thousand shall pay an annualdischarge feeunder division (L)(5)(b) of this section that isbased on the combined average daily discharge flow of thetreatment works.

(c) An NPDES permitholder that is an industrialdischarger,other than a coal mining operator identified byP inthe thirdcharacter of the permittee's NPDES permitnumber, shallpay thefee specified in the following schedule:

In addition to the fee specified in the above schedule, anNPDES permit holder that is an industrialdischarger classified asamajor discharger during all or part of the annual discharge feebillingyear specified in division (L)(5)(a)(ii) ofthis sectionshall pay a nonrefundable annual surcharge of seven thousand fivehundreddollars not later thanJanuary 30, ~~2004~~ 2006, and not laterthanJanuary 30, ~~2005~~ 2007. Any person who fails to pay thesurchargeatthat time shall pay anadditional amount that equals ten percentof the amount of the surcharge.

(d) Notwithstanding divisions (L)(5)(b) and (c) of thissection, a public discharger identified by I in the thirdcharacter of the permittee's NPDES permit number and anindustrialdischarger identified by I, J, L, V, W, X, Y, or Z inthe thirdcharacter of the permittee's NPDES permitnumber shall pay anonrefundable annual discharge fee of one hundred eightydollarsnot later thanJanuary 30, ~~2004~~ 2006, and not later than January30, ~~2005~~ 2007. Any person who fails to pay the fee at thattimeshall payan additional amount that equals ten per cent oftherequired fee.

(6)Each person obtaining a national pollutant dischargeelimination system general or individual permit for municipalstorm water discharge shall pay a nonrefundable storm waterdischarge fee of one hundred dollars per square mile of areapermitted. The fee shall not exceed ten thousand dollars andshall be payable on or before January 30, 2004, and the thirtiethday of January of each year thereafter. Any person who fails topay the fee on the date specified in division (L)(6) of thissection shall pay an additional amount per year equal to ten percent of the annual fee that is unpaid.

(7) The director shall transmit all moneys collected underdivision (L) of this section to the treasurer of state fordepositinto the state treasury to the credit of the surfacewaterprotection fund created in section 6111.038 of the RevisedCode.

(a)"NPDES" means the federally approved nationalpollutantdischarge elimination system program for issuing,modifying,revoking, reissuing, terminating, monitoring, andenforcingpermits and imposing and enforcing pretreatmentrequirements underChapter 6111. of the Revised Code and rulesadopted under it.

(b)"Public discharger" means any holder of an NPDESpermitidentified by P in the second character of the NPDESpermit numberassigned by the director.

(c)"Industrial discharger" means any holder of anNPDESpermit identified by I in the second character of theNPDESpermitnumber assigned by the director.

(d)"Major discharger" means any holder of an NPDESpermitclassified as major by the regional administrator of the UnitedStates environmental protection agency in conjunction with thedirector.

(M) Through June 30, ~~2006~~ 2008, a person applying for alicenseor license renewal to operate a public water system undersection6109.21 of the Revised Code shall pay the appropriate feeestablished under this division at the time of application to thedirector. Any person who fails to pay the fee at that time shallpay an additional amount that equals ten per cent of the requiredfee. The director shall transmit all moneys collected under thisdivision to the treasurer of state for deposit into the drinkingwater protection fund created in section 6109.30 of the RevisedCode.

Except as provided in division (M)(4) of this section, fees required under this division shall be calculated andpaid in accordance with the following schedule:

(1) For the initial license required under division (A)(1)of section 6109.21 of the Revised Code for any public watersystemthat is a community water system as defined in section6109.01 ofthe Revised Code, and for each license renewalrequired for such asystem prior to January 31, ~~2006~~ 2008, thefee is:

A public water system may determine how it will pay thetotalamount of the fee calculated under division (M)(1) of thissection, including the assessment of additional user fees thatmaybe assessed on a volumetric basis.

As used in division (M)(1) of this section,"serviceconnection" means the number of active or inactive pipes,goosenecks, pigtails, and any other fittings connecting a watermain to any building outlet.

(2) For the initial license required under division (A)(2)of section 6109.21 of the Revised Code for any public watersystemthat is not a community water system and serves anontransientpopulation, and for each license renewal requiredfor such asystem prior to January 31, ~~2006~~ 2008, the fee is:

As used in division (M)(2) of this section,"populationserved" means the total number of individuals receiving waterfromthe water supply during a twenty-four-hour period for atleastsixty days during any calendar year. In the absence of aspecificpopulation count, that number shall be calculated at therate ofthree individuals per service connection.

(3) For the initial license required under division (A)(3)of section 6109.21 of the Revised Code for any public watersystemthat is not a community water system and serves atransientpopulation, and for each license renewal required for such asystem prior to January 31, ~~2006~~ 2008, the fee is:

As used in division (M)(3) of this section,"number ofwellssupplying system" means those wells that are physicallyconnectedto the plumbing system serving the public water system.

(4) A public water system designated as using a surface water source shall pay a fee of seven hundred ninety-two dollars or the amount calculated under division (M)(1) or (2) of this section, whichever is greater.

(N)(1) A person applying for a plan approval for a publicwater supply system under section 6109.07 of the Revised Codeshall pay a fee of one hundred fifty dollars plus thirty-five hundredths of one percent of the estimated project cost, except that the total feeshall not exceed twenty thousand dollars through June 30, ~~2006~~ 2008,and fifteen thousand dollars on and after July 1, ~~2006~~ 2008.The feeshall be paid at the time the application is submitted.

(2) A person who has entered into an agreement with thedirector underdivision (A)(2) of section 6109.07 of the RevisedCode shall pay anadministrative service fee for each plansubmitted under that section forapproval that shall not exceedthe minimum amount necessary to payadministrative costs directlyattributable to processing plan approvals. Thedirector annuallyshall calculate the fee and shall notify all persons thathaveentered into agreements under that division, or who have appliedforagreements, of the amount of the fee.

(3) Through June 30, ~~2006~~ 2008, the following fee, on a persurveybasis, shall be charged any person for services rendered bythestate in the evaluation of laboratories and laboratorypersonnelfor compliance with accepted analytical techniques andproceduresestablished pursuant to Chapter 6109. of the RevisedCode fordetermining the qualitative characteristics of water:

On and after July 1, ~~2006~~ 2008, the following fee, on a persurvey basis, shall be charged any such person:

The fee for those services shall be paid at the time the requestfor the survey is made. Through June 30, ~~2006~~ 2008, anindividuallaboratory shall not be assessed a fee under this division morethan once in any three-year period unless the person requests the addition of analytical methods or analysts, in which case the person shall pay eighteen hundred dollars for each additional survey requested.

The director shall transmit all moneys collected under thisdivision to the treasurer of state for deposit into the drinkingwater protection fund created in section 6109.30 of the RevisedCode.

(O) Any person applying to the director for examinationforcertification as an operator of a water supply system orwastewater system under Chapter 6109. or 6111. of the RevisedCode, at the time the application is submitted, shall pay anapplication fee of twenty-five dollars through November 30, 2003. Upon approvalfrom thedirector that the applicant is eligible to take theexaminationtherefor, theapplicant shall pay a fee in accordancewith thefollowingschedule through November 30, 2003:

~~On and after December 1, 2003, any~~ person applying to the director for examination for certification as an operator of a water supply system or wastewater system under Chapter 6109. or 6111. of the Revised Code, at the time the application is submitted, shall pay an application fee of forty-five dollars through November 30, ~~2006~~ 2008, and twenty-five dollars on and after December 1, ~~2006~~ 2008. Upon approval from the director that the applicant is eligible to take the examination therefor, the applicant shall pay a fee in accordance with the following schedule through November 30, ~~2006~~ 2008:

On and after December 1, ~~2006~~ 2008, the applicant shall pay a feeinaccordance with the following schedule:

A person shall pay a biennial certification renewal fee for each applicable class of certification in accordance with the following schedule:

If a certification renewal fee is received by the director more than thirty days, but not more than one year after the expiration date of the certification, the person shall pay a certification renewal fee in accordance with the following schedule:

A person who requests a replacement certificate shall pay a fee of twenty-five dollars at the time the request is made.

The director shall transmit all moneys collected under thisdivision to the treasurer of state for deposit into the drinkingwaterprotection fund created in section 6109.30 of the RevisedCode.

(P) Any person submitting anapplication for an industrial water pollution control certificateunder section 6111.31 of the Revised Code, as that section existed before its repeal by H.B. 95 of the 125th general assembly, shall pay anonrefundable fee of five hundred dollars at the time theapplication is submitted. The director shall transmit all moneyscollected under this division to the treasurer of state fordeposit into the surface water protection fund created in section6111.038 of the Revised Code. A person paying a certificate feeunder this division shall not pay an application fee underdivision (S)(1) of this section. On and after ~~the effective date of this amendment~~ June 26, 2003, persons shall file such applications and pay the fee as required under sections 5709.20 to 5709.27 of the Revised Code, and proceeds from the fee shall be credited as provided in section 5709.212 of the Revised Code.

(Q) Except as otherwise provided in division (R) of thissection, a person issued a permit by the director for a new solidwaste disposal facility other than an incineration or compostingfacility, a new infectious waste treatment facility other than anincineration facility, or a modification of such an existingfacility that includes an increase in the total disposal ortreatment capacity of the facility pursuant to Chapter 3734. ofthe Revised Code shall pay a fee of ten dollars per thousandcubicyards of disposal or treatment capacity, or one thousanddollars,whichever is greater, except that the total fee for anysuchpermit shall not exceed eighty thousand dollars. A personissueda modification of a permit for a solid waste disposalfacility oran infectious waste treatment facility that does notinvolve anincrease in the total disposal or treatment capacityof thefacility shall pay a fee of one thousand dollars. Aperson issueda permit to install a new, or modify an existing,solid wastetransfer facility under that chapter shall pay a feeof twothousand five hundred dollars. A person issued a permittoinstall a new or to modify an existing solid wasteincineration orcomposting facility, or an existing infectiouswaste treatmentfacility using incineration as its principalmethod of treatment,under that chapter shall pay a fee of onethousand dollars. Theincreases in the permit fees under thisdivision resulting fromthe amendments made by Amended SubstituteHouse Bill 592 of the117th general assembly do not apply to anyperson who submitted anapplication for a permit to install anew, or modify an existing,solid waste disposal facility underthat chapter prior toSeptember 1, 1987; any such person shallpay the permit feeestablished in this division as it existedprior to June 24, 1988.In addition to the applicable permit feeunder this division, aperson issued a permit to install ormodify a solid waste facilityor an infectious waste treatmentfacility under that chapter whofails to pay the permit fee tothe director in compliance withdivision (V) of this sectionshall pay an additional ten per centof the amount of the fee foreach week that the permit fee islate.

Permit and late payment fees paid to the director underthisdivision shall be credited to the general revenue fund.

(R)(1) A person issued a registration certificate for ascrap tire collection facility under section 3734.75 of theRevised Code shall pay a fee of two hundred dollars, except thatif the facility is owned or operated by a motor vehicle salvagedealer licensed under Chapter 4738. of the Revised Code, theperson shall pay a fee of twenty-five dollars.

(2) A person issued a registration certificate for a newscrap tire storage facility under section 3734.76 of the RevisedCode shall pay a fee of three hundred dollars, except that if thefacility is owned or operated by a motor vehicle salvage dealerlicensed under Chapter 4738. of the Revised Code, the personshallpay a fee of twenty-five dollars.

(3) A person issued a permit for a scrap tire storagefacility under section 3734.76 of the Revised Code shall pay afeeof one thousand dollars, except that if the facility is ownedoroperated by a motor vehicle salvage dealer licensed underChapter4738. of the Revised Code, the person shall pay a fee offiftydollars.

(4) A person issued a permit for a scrap tire monocell ormonofill facility under section 3734.77 of the Revised Code shallpay a fee of ten dollars per thousand cubic yards of disposalcapacity or one thousand dollars, whichever is greater, exceptthat the total fee for any such permit shall not exceed eightythousand dollars.

(5) A person issued a registration certificate for a scraptire recovery facility under section 3734.78 of the Revised Codeshall pay a fee of one hundred dollars.

(6) A person issued a permit for a scrap tire recoveryfacility under section 3734.78 of the Revised Code shall pay afeeof one thousand dollars.

(7) In addition to the applicable registration certificateor permit fee under divisions (R)(1) to (6) of this section, aperson issued a registration certificate or permit for any suchscrap tire facility who fails to pay the registration certificateor permit fee to the director in compliance with division (V) ofthis section shall pay an additional ten per cent of the amountofthe fee for each week that the fee is late.

(8) The registration certificate, permit, and late paymentfees paid to the director under divisions (R)(1) to (7) of thissection shall be credited to the scrap tire management fundcreated in section 3734.82 of the Revised Code.

(S)(1) Except as provided by divisions (L), (M), (N), (O),(P), and (S)(2) of this section, division (A)(2) of section3734.05 of the Revised Code, section 3734.79 of the Revised Code,and rules adopted under division (T)(1) of this section, anyperson applying for a registration certificate under section3734.75, 3734.76, or 3734.78 of the Revised Code or a permit,variance, or plan approval under Chapter 3734. of the RevisedCodeshall pay a nonrefundable fee of fifteen dollars at the timetheapplication is submitted.

Except as otherwise provided, any person applying for apermit, variance, or plan approval under Chapter 6109. or 6111.ofthe Revised Code shall pay a nonrefundable fee of one hundreddollars at the time the application is submitted through June 30, ~~2006~~ 2008, and a nonrefundable fee of fifteen dollars at thetimetheapplication is submitted on and after July 1, ~~2006~~ 2008.Through June30, ~~2006~~ 2008, any personapplying for a nationalpollutantdischargeelimination system permitunder Chapter 6111.of the Revised Codeshall pay anonrefundable fee of two hundreddollars at the timeof application forthe permit. On and afterJuly 1, ~~2006~~ 2008,such aperson shall pay a nonrefundable fee offifteen dollars at thetime of application.

In addition to the application fee established under division(S)(1) of this section, any person applying for a nationalpollutant discharge elimination system general storm waterconstruction permit shall pay a nonrefundable fee of twentydollars per acre for each acre that is permitted above five acresat the time the application is submitted. However, the peracreage fee shall not exceed three hundred dollars. In addition,any person applying for a national pollutant discharge eliminationsystem general storm water industrial permit shall pay anonrefundable fee of one hundred fifty dollars at the time theapplication is submitted.

The director shall transmit all moneys collected underdivision (S)(1) of thissection pursuant to Chapter 6109. of theRevised Code to thetreasurer of state for deposit into thedrinking water protectionfund created in section 6109.30 of theRevised Code.

The director shall transmit all moneys collected underdivision (S)(1) of thissection pursuant to Chapter 6111. of theRevised Code to thetreasurer of state for deposit into thesurface water protectionfund created in section 6111.038 of theRevised Code.

If a registration certificate is issued under section3734.75, 3734.76, or 3734.78 of the Revised Code, the amount ofthe application fee paid shall be deducted from the amount of theregistration certificate fee due under division (R)(1), (2), or(5) of this section, as applicable.

If a person submits an electronic application for a registration certificate, permit, variance, or plan approval for which an application fee is established under division (S)(1) of this section, the person shall pay the applicable application fee as expeditiously as possible after the submission of the electronic application. An application for a registration certificate, permit, variance, or plan approval for which an application fee is established under division (S)(1) of this section shall not be reviewed or processed until the applicable application fee, and any other fees established under this division, are paid.

(2) Division (S)(1) of this section does not apply to anapplication for a registration certificate for a scrap tirecollection or storage facility submitted under section 3734.75 or3734.76 of the Revised Code, as applicable, if the owner oroperator of the facility or proposed facility is a motor vehiclesalvage dealer licensed under Chapter 4738. of the Revised Code.

(T) The director may adopt, amend, and rescind rules inaccordance with Chapter 119. of the Revised Code that do all ofthe following:

(1) Prescribe fees to be paid by applicants for andholdersof any license, permit, variance, plan approval, orcertificationrequired or authorized by Chapter 3704., 3734.,6109., or 6111. ofthe Revised Code that are not specificallyestablished in thissection. The fees shall be designed todefray the cost ofprocessing, issuing, revoking, modifying,denying, and enforcingthe licenses, permits, variances, planapprovals, andcertifications.

The director shall transmit all moneys collected underrulesadopted under division (T)(1) of this section pursuant toChapter6109. of the Revised Code to the treasurer of state fordepositinto the drinking water protection fund created insection 6109.30of the Revised Code.

The director shall transmit all moneys collected underrulesadopted under division (T)(1) of this section pursuant toChapter6111. of the Revised Code to the treasurer of state fordepositinto the surface water protection fund created in section6111.038of the Revised Code.

(2) Exempt the state and political subdivisions thereof,including education facilities or medical facilities owned by thestate or a political subdivision, or any person exempted fromtaxation by section 5709.07 or 5709.12 of the Revised Code, fromany fee required by this section;

(3) Provide for the waiver of any fee, or any partthereof,otherwise required by this section whenever the directordetermines that the imposition of the fee would constitute anunreasonable cost of doing business for any applicant, class ofapplicants, or other person subject to the fee;

(4) Prescribe measures that the director considersnecessaryto carry out this section.

(U) When the director reasonably demonstrates that thedirect cost to the state associated with the issuance of a permitto install, license, variance, plan approval, or certificationexceeds the fee for the issuance or review specified by thissection, the director may condition the issuance or review on thepayment by the person receiving the issuance or review of, inaddition to the fee specified by this section, the amount, or anyportion thereof, in excess of the fee specified under thissection. The director shall not so condition issuances for whichfees are prescribed in divisions (B)(7) and (L)(1)(b) of thissection.

(V) Except as provided in divisions (L), (M), and (P) ofthis section or unless otherwise prescribed by a rule of thedirector adopted pursuant to Chapter 119. of the Revised Code,allfees required by this section are payable within thirty daysafterthe issuance of an invoice for the fee by the director ortheeffective date of the issuance of the license, permit,variance,plan approval, or certification. If payment is late,the personresponsible for payment of the fee shall pay anadditional ten percent of the amount due for each month that itis late.

(W) As used in this section,"fuel-burning equipment,""fuel-burning equipment input capacity,""incinerator,""incinerator input capacity,""process,""process weight rate,""storage tank,""gasoline dispensing facility,""dry cleaningfacility,""design flow discharge," and"new source treatmentworks" have the meanings ascribed to those terms by applicablerules or standards adopted by the director under Chapter 3704. or6111. of the Revised Code.

(X) As used in divisions (B), (C), (D), (E), (F), (H),(I),and (J) of this section, and in any other provision of thissection pertaining to fees paid pursuant to Chapter 3704. of theRevised Code:

(1)"Facility,""federal Clean Air Act,""person,"and"TitleV permit" have the same meanings as in section 3704.01oftheRevised Code.

(2)"Title V permit program" means the followingactivitiesas necessary to meet the requirements of Title V ofthe federalClean Air Act and 40 C.F.R. part 70, including atleast:

(a) Preparing and adopting, if applicable, generallyapplicable rules or guidance regarding the permit program or itsimplementation or enforcement;

(b) Reviewing and acting on any application for a Title Vpermit, permit revision, or permit renewal, including thedevelopment of an applicable requirement as part of theprocessingof a permit, permit revision, or permit renewal;

(c) Administering the permit program, including thesupporting and tracking of permit applications, compliancecertification, and related data entry;

(d) Determining which sources are subject to the programandimplementing and enforcing the terms of any Title V permit,notincluding any court actions or other formal enforcementactions;

(h) Providing direct and indirect support to smallbusinessstationary sources to determine and meet theirobligations underthe federal Clean Air Act pursuant to the smallbusinessstationary source technical and environmental complianceassistance program required by section 507 of that act andestablished in sections 3704.18, 3704.19, and 3706.19 of theRevised Code.

(Y)(1) Except as provided in divisions(Y)(2),(3), and(4)of this section, eachsewage sludge facility shall pay anonrefundable annual sludgefee equal to three dollars and fiftycents per dry ton of sewagesludge, including the dry tons ofsewage sludge in materials derived fromsewage sludge, that thesewage sludge facility treats or disposes of inthis state. Theannual volume of sewage sludge treated ordisposed of by a sewagesludge facility shall be calculatedusing the first day of Januarythrough the thirty-first day ofDecember of the calendar yearpreceding the date on which payment of the fee is due.

(2)(a) Except as provided in division(Y)(2)(d) of thissection, each sewage sludge facilityshall pay a minimum annualsewage sludge fee of one hundred dollars.

(b) The annual sludge fee required tobe paid by a sewagesludge facility that treats or disposes ofexceptional qualitysludge in this state shall be thirty-fiveper cent less per dryton of exceptional quality sludge than thefee assessed underdivision(Y)(1) of this section, subjectto the followingexceptions:

(i) Except as provided in division(Y)(2)(d) of thissection, a sewage sludge facility thattreats or disposes ofexceptional qualitysludge shall pay a minimum annual sewagesludge fee of one hundreddollars.

(ii) A sewage sludge facility thattreats or disposes ofexceptional quality sludge shall not berequired to pay the annualsludge fee for treatment or disposalin this state of exceptionalquality sludge generated outside ofthis state and contained inbags or other containers not greaterthan one hundred pounds incapacity.

A thirty-five per cent reduction for exceptional qualitysludge applies tothemaximum annual fees established underdivision (Y)(3) of thissection.

(c) A sewage sludge facility thattransfers sewage sludgetoanother sewagesludge facility in this state for further treatmentprior todisposal in this state shall not be required to pay theannualsludge fee for the tons of sewage sludge that have beentransferred. In such a case, the sewagesludge facility thatdisposes of the sewage sludge shall pay theannual sludge fee.However, the facility transferring the sewage sludge shallpay theone-hundred-dollar minimum fee required under division(Y)(2)(a)of this section.

In the case of a sewage sludge facility that treats sewagesludge in this state and transfers it out of this state toanotherentity for disposal, the sewage sludge facility in thisstateshall be required to pay the annual sludge fee for thetons ofsewage sludge that have been transferred.

(d) A sewage sludge facility that generates sewage sludgeresulting from an average daily discharge flow of less than fivethousandgallons per dayis not subject to the feesassessed underdivision (Y) of this section.

(3) No sewage sludge facility required to pay the annualsludge fee shall be required to pay more than the maximum annualfee for each disposal method that the sewage sludge facilityuses.The maximum annual fee does not include the additionalamount thatmay be charged under division(Y)(5) of this section for latepayment of the annual sludge fee. The maximum annual fee forthefollowing methods of disposal of sewage sludge is asfollows:

(b) Preexisting land reclamation project or disposal in alandfill: fivethousand dollars;

(c) Land application, landreclamation, surface disposal, orany other disposal method notspecified in division(Y)(3)(a)or(b) of this section: twenty thousanddollars.

(4)(a) In the case of an entity thatgenerates sewage sludgeor a sewage sludge facility that treatssewage sludge andtransfers the sewage sludge to an incinerationfacility fordisposal, the incineration facility, and not theentity generatingthe sewage sludge or the sewage sludgefacility treating thesewage sludge, shall pay the annual sludgefee for the tons ofsewage sludge that are transferred. However, the entityorfacility generating or treating the sewage sludge shall pay theone-hundred-dollar minimum fee required under division(Y)(2)(a)of this section.

(b) In the case of an entity thatgenerates sewage sludgeand transfers the sewage sludge to a landfill fordisposal or to asewage sludge facility for land reclamation or surfacedisposal,the entity generating the sewage sludge,and not thelandfill orsewage sludge facility, shall pay the annual sludge fee for thetons of sewagesludge that are transferred.

(5) Not later than the first day of Aprilof the calendaryear followingMarch17,2000, and each first day ofAprilthereafter, the director shallissue invoices to persons who arerequired to pay the annualsludge fee. The invoice shallidentifythe nature and amount ofthe annual sludge fee assessedand statethe first day of May asthe deadlinefor receipt by the directorof objections regardingthe amount of the fee andthe first day ofJuly as the deadlinefor payment ofthe fee.

Not later than the first day of Mayfollowing receipt of aninvoice, a person required to pay theannual sludge fee may submitobjections to the directorconcerning the accuracy of informationregarding the number ofdry tons of sewage sludge used tocalculate the amount of theannual sludge fee or regarding whetherthe sewage sludgequalifies for the exceptional quality sludgediscount established indivision(Y)(2)(b)of this section. Thedirector may consider the objections andadjust the amount of thefee to ensure that it is accurate.

If the director does not adjust the amount of the annualsludge fee in response to a person's objections, the person mayappeal the director's determination in accordance withChapter119. of theRevisedCode.

Not later than the first day of June,the director shallnotify the objecting person regarding whetherthe director hasfound the objections to be valid and thereasons for the finding.If the director finds the objectionsto be valid and adjusts theamount of the annual sludge feeaccordingly, the director shallissue with the notification anew invoice to the personidentifying the amount of the annualsludge fee assessed andstating thefirst day of July as the deadline forpayment.

Not later than the first day of July,any person who isrequired to do so shall pay the annual sludge fee. Any person whois required to pay the fee, but who fails todo so on or beforethat date shall pay an additional amount thatequals ten per centof the required annual sludge fee.

(6) The director shall transmit all moneys collectedunderdivision (Y) of thissection to the treasurer of state for depositinto the surfacewater protection fund created in section 6111.038of theRevisedCode. The moneys shall be usedto defray the costsof administering and enforcing provisions inChapter 6111. of theRevisedCode and rules adopted under itthat govern the use,storage, treatment, or disposal of sewagesludge.

(7) Beginning in fiscal year 2001, and every two yearsthereafter, thedirector shall review the total amount of moneysgenerated by the annualsludgefees to determine if that amountexceeded six hundred thousand dollars ineitherof the twopreceding fiscal years. If the total amount of moneys in the fundexceeded six hundred thousand dollars in either fiscal year, thedirector,after review of the fee structure and consultation withaffected persons,shallissue an order reducing the amount of thefees levied under division(Y) of this section so that theestimated amount of moneys resultingfrom the fees will not exceedsix hundred thousand dollars in any fiscal year.

If, upon review of the fees under division (Y)(7) of thissectionand after the fees have been reduced, the directordetermines that the totalamount of moneys collected andaccumulated is less than six hundred thousanddollars, thedirector, after review of the fee structure and consultation withaffected persons, may issue an order increasing the amount of thefees leviedunder division (Y) of this section so that theestimated amount ofmoneys resulting from the fees will beapproximately six hundred thousanddollars. Fees shall never beincreased to an amount exceeding the amountspecified in division(Y)(7) of this section.

Notwithstanding section 119.06 of the Revised Code, thedirector may issue an order underdivision (Y)(7) of this sectionwithout the necessity to hold anadjudicatory hearing inconnection with the order. The issuance of an orderunder thisdivision is not an act or action for purposes of section 3745.04of the Revised Code.

(a)"Sewage sludge facility" means anentity that performstreatment on or is responsible for thedisposal of sewage sludge.

(b)"Sewage sludge" means a solid,semi-solid, or liquidresidue generated during the treatment ofdomestic sewage in atreatment works as defined in section6111.01 of the RevisedCode."Sewage sludge"includes, but is not limited to, scum or solidsremoved inprimary, secondary, or advanced wastewater treatmentprocesses."Sewage sludge" doesnot include ash generated duringthe firing of sewage sludge ina sewage sludge incinerator, gritand screenings generatedduring preliminary treatment of domesticsewage in a treatmentworks, animal manure, residue generatedduring treatment of animalmanure, or domestic septage.

(c)"Exceptional quality sludge"means sewage sludge thatmeets all of the followingqualifications:

(ii) Satisfies one of the vectorattraction reductionrequirements in 40C.F.R.503.33(b)(1) to(b)(8);

(iii) Does not exceed the ceilingconcentration limitationsfor metals listed in table one of 40C.F.R.503.13;

(iv) Does not exceed theconcentration limitations formetals listed in table three of 40C.F.R.503.13.

(d)"Treatment" means the preparationof sewage sludge forfinal use or disposal and includes, but isnot limited to,thickening, stabilization, and dewatering ofsewage sludge.

(e)"Disposal" means the final use ofsewage sludge,including, but not limited to, land application,land reclamation,surface disposal, or disposal in a landfill oran incinerator.

(f)"Land application" means thespraying or spreading ofsewage sludge onto the land surface,the injection of sewagesludge below the land surface, or theincorporation of sewagesludge into the soil for the purposes ofconditioning the soil orfertilizing crops or vegetation grownin the soil.

(h)"Surface disposal" means theplacement of sludge on anarea of land for disposal,including, but not limited to,monofills, surface impoundments,lagoons, waste piles, ordedicated disposal sites.

(i)"Incinerator" means an entitythat disposes of sewagesludge through the combustion of organicmatter and inorganicmatter in sewage sludge by hightemperatures in an encloseddevice.

(j)"Incineration facility" includesall incinerators ownedor operated by the same entity andlocated on a contiguous tractof land. Areas of land areconsidered to be contiguous even ifthey are separated by apublic road or highway.

(k)"Annual sludge fee" means the feeassessed underdivision(Y)(1)of this section.

(l)"Landfill" means a sanitary landfill facility, asdefinedinrules adopted under section 3734.02 of the RevisedCode,thatislicensed under section 3734.05 of the Revised Code.

(m)"Preexisting land reclamation project" means aproperty-specific land reclamation project that has been incontinuousoperation for not less than five yearspursuant toapproval of the activity by the director and includestheimplementation of a community outreach program concerning theactivity.

Sec. 3745.114. (A) A person that applies for a section 401 water quality certification under Chapter 6111. of the Revised Code and rules adopted under it shall pay an application fee of two hundred dollars at the time of application plus any of the following fees, as applicable:

(1) If the water resource to be impacted is a wetland, a review fee of five hundred dollars per acre of wetland to be impacted;

(2) If the water resource to be impacted is a stream one of the following fees, as applicable:

(a) For an ephemeral stream, a review fee of five dollars per linear foot of stream to be impacted, or two hundred dollars, whichever is greater;

(b) For an intermittent stream, a review fee of ten dollars per linear foot of stream to be impacted, or two hundred dollars, whichever is greater;

(c) For a perennial stream, a review fee of fifteen dollars per linear foot of stream to be impacted, or two hundred dollars, whichever is greater.

(3) If the water resource to be impacted is a lake, a review fee of three dollars per cubic yard of dredged or fill material to be moved.

(B) One-half of all applicable review fees levied under this section shall be due at the time of application for a section 401 water quality certification. The remainder of the fees shall be paid upon the final disposition of the application for a section 401 water quality certification. The total fee to be paid under this section shall not exceed twenty-five thousand dollars per application. However, if the applicant is a county, township, or municipal corporation in this state, the total fee to be paid shall not exceed five thousand dollars per application.

(C) All money collected under this section shall be transmitted to the treasurer of state for deposit into the state treasury to the credit of the surface water protection fund created in section 6111.038 of the Revised Code.

(D) The fees established under this section do not apply to any state agency as defined in section 119.01 of the Revised Code.

(E) The fees established under this section do not apply to projects that are authorized by the environmental protection agency's general certifications of nationwide permits or general permits issued by the United States army corps of engineers. As used in this division, "general permit" and "nationwide permit" have the same meanings as in rules adopted under Chapter 6111. of the Revised Code.

(F) Coal mining and reclamation operations that are authorized under Chapter 1513. of the Revised Code are exempt from the fees established under this seciton for one year after the effective date of this seciton.

(1) "Ephemeral stream" means a stream that flows only in direct response to precipitation in the immediate watershed or in response to the melting of a cover of snow and ice and that has channel bottom that is always above the local water table.

(2) "Intermittent stream" means a stream that is below the local water table and flows for at least a part of each year and that obtains its flow from both surface runoff and ground water discharge.

(3) "Perennial stream" means a stream or a part of a stream that flows continuously during all of the calendar year as a result of ground water discharge or surface water runoff. "Perennial stream" does not include an intermittent stream or an ephemeral stream.

Sec. 3745.12. (A) There is hereby created in the statetreasury the immediate removal fund, which shall be administeredby the director of environmental protection. The fund may beused for both of the following purposes:

(1) To pay costs incurred by the environmental protection agencyin investigating, mitigating, minimizing, removing, or abatingany unauthorized spill, release, or discharge of material into orupon the environment that requires emergency action to protectthe public health or safety or the environment;

(B) Any person responsible for causing or allowing theunauthorized spill, release, or discharge is liable to thedirector for the costs incurred by the agency regardless ofwhether those costs were paid out of the fund created underdivision (A) of this section or any other fund of the agency.Upon the request of the director, the attorney general shallbring a civil action against the responsible person to recoverthose costs. Moneys recovered under this division shall be paidinto the state treasury to the credit of the immediate removal fund, except that moneys recovered for costs paid from the hazardous waste clean-up fund created in section 3734.28 of the Revised Code shall be credited to the hazardous waste clean-up fund.

Sec. 3746.04. Within one year after September 28,1994, thedirector of environmentalprotection, in accordance with Chapter 119. of the Revised Codeand with the advice of the multidisciplinary councilappointedunder section 3746.03 of the Revised Code, shall adopt, andsubsequently may amend, suspend, or rescind, rules that do bothof the following:

(A) Revise the rules adopted under Chapters 3704., 3714.,3734., 6109., and 6111. of the Revised Code to incorporate theprovisions necessary to conform those rules to the requirementsof this chapter. The amended rules adopted under this divisionalso shall establish response times for all submittals to theenvironmental protection agency required under this chapter orrules adopted under it.

(B) Establish requirements and procedures that arereasonably necessary for the implementation and administration ofthis chapter, including, without limitation, all of thefollowing:

(1) Appropriate generic numerical clean-up standards forthe treatment or removal of soils, sediments, and water media forhazardous substances and petroleum. The rules shall establishseparate generic numerical clean-up standards based upon theintended use of properties after the completion of voluntaryactions, including industrial, commercial, and residential usesand such other categories of land use as the director considersto be appropriate. The generic numerical clean-up standardsestablished for each category of land use shall be theconcentration of each contaminant that may be present on aproperty that shall ensure protection of public health and safetyand the environment for the reasonable exposure for that categoryof land use. When developing the standards, the director shallconsider such factors as all of the following:

(a) Scientific information, including, without limitation,toxicological information and realistic assumptions regardinghuman and environmental exposure to hazardous substances orpetroleum;

(e) For petroleum at industrial property, alternatives tothe use of total petroleum hydrocarbons.

The generic numerical clean-up standards established in the rules adopted underdivision (B)(1) of this section shall be consistent with andequivalent in scope, content, and coverage to any applicablestandard established by federal environmental laws andregulations adopted under them, including, without limitation,the "Federal Water Pollution Control Act Amendments of 1972," 86Stat. 886, 33 U.S.C.A. 1251, as amended; the "ResourceConservation and Recovery Act of 1976," 90 Stat. 2806, 42U.S.C.A. 6921, as amended; the "Toxic Substances Control Act," 90Stat. 2003 (1976), 15 U.S.C.A. 2601, as amended; the"Comprehensive Environmental Response, Compensation, andLiability Act of 1980," 94 Stat. 2779, 42 U.S.C.A. 9601, asamended; and the "Safe Drinking Water Act," 88 Stat. 1660 (1974),42 U.S.C.A. 300f, as amended.

In order for the rules adopted under division (B)(1) ofthis section to require that any such federal environmentalstandard apply to a property, the property shall meet therequirements of the particular federal statute or regulationinvolved in the manner specified by the statute or regulation.

The generic numerical clean-up standards for petroleum atcommercial or residential property shall be the standardsestablished in rules adopted under division (B) of section3737.882 of the Revised Code.

(2)(a) Procedures for performing property-specific riskassessments that would be performed at a property to demonstratethat the remedy evaluated in a risk assessment results inprotection of public health and safety and the environmentinstead of complying with the generic numerical clean-upstandards established in the rules adopted under division (B)(1)of this section. The risk assessment procedures shall describe amethodology to establish, on a property-specific basis, allowablelevels of contamination to remain at a property to ensureprotection of public health and safety and the environment on theproperty and off the property when the contamination is emanatingoff the property, taking into account all of the following:

(i) The implementation of treatment, storage, or disposal,or a combination thereof, of hazardous substances or petroleum;

(ii) The existence of institutional controls or activity and use limitations thateliminate or mitigate exposure to hazardous substances orpetroleum through the restriction of access to hazardoussubstances or petroleum;

(iii) The existence of engineering controls that eliminateor mitigate exposure to hazardous substances or petroleum throughcontainment of, control of, or restrictions of access tohazardous substances or petroleum, including, without limitation,fences, cap systems, cover systems, and landscaping.

(b) The risk assessment procedures and levels ofacceptable risk set forth in the rules adopted under division(B)(2) of this section shall be based upon all of the following:

(i) Scientific information, including, without limitation,toxicological information and actual or proposed human andenvironmental exposure;

(iv) Differing levels of remediation that may be requiredwhen an existing land use is continued compared to when adifferent land use follows the remediation.

(c) Any standards established pursuant to rules adoptedunder division (B)(2) of this section shall be no more stringentthan standards established under the environmental statutes ofthis state and rules adopted under them for the same contaminantin the same environmental medium that are in effect at the timethe risk assessment is conducted.

(3) Minimum standards for phase I property assessments.The standards shall specify the information needed to demonstratethat there is no reason to believe that contamination exists on aproperty. The rules adopted under division (B)(3) of thissection, at a minimum, shall require that a phase I propertyassessment include all of the following:

(a) A review and analysis of deeds, mortgages, easementsof record, and similar documents relating to the chain of titleto the property that are publicly available or that are known toand reasonably available to the owner or operator;

(b) A review and analysis of any previous environmentalassessments, property assessments, environmental studies, orgeologic studies of the property and any land within two thousandfeet of the boundaries of the property that are publiclyavailable or that are known to and reasonably available to theowner or operator;

(d) A review of aerial photographs of the property thatindicate prior uses of the property;

(e) Interviews with managers of activities conducted atthe property who have knowledge of environmental conditions atthe property;

(g) Identifying the current and past uses of the property,adjoining tracts of land, and the area surrounding the property,including, without limitation, interviews with persons who resideor have resided, or who are or were employed, within the areasurrounding the property regarding the current and past uses ofthe property and adjacent tracts of land.

The rules adopted under division (B)(3) of this sectionshall establish criteria to determine when a phase II propertyassessment shall be conducted when a phase I property assessmentreveals facts that establish a reason to believe that hazardoussubstances or petroleum have been treated, stored, managed, ordisposed of on the property if the person undertaking the phase Iproperty assessment wishes to obtain a covenant not to sue undersection 3746.12 of the Revised Code.

(4) Minimum standards for phase II property assessments.The standards shall specify the information needed to demonstratethat any contamination present at the property does not exceedapplicable standards or that the remedial activities conducted atthe property have achieved compliance with applicable standards.The rules adopted under division (B)(4) of this section, at aminimum, shall require that a phase II property assessmentinclude all of the following:

(a) A review and analysis of all documentation prepared inconnection with a phase I property assessment conducted withinthe one hundred eighty days before the phase II propertyassessment begins. The rules adopted under division (B)(4)(a) ofthis section shall require that if a period of more than onehundred eighty days has passed between the time that the phase Iassessment of the property was completed and the phase IIassessment begins, the phase II assessment shall include areasonable inquiry into the change in the environmental conditionof the property during the intervening period.

(b) Quality assurance objectives for measurements taken inconnection with a phase II assessment;

(d) Quality assurance and quality control requirements forsamples collected in connection with phase II assessments;

(f) Data objectives to ensure that samples collected inconnection with phase II assessments are biased toward areaswhere information indicates that contamination by hazardoussubstances or petroleum is likely to exist.

(5) Standards governing the conduct of certifiedprofessionals, criteria and procedures for the certification ofprofessionals to issue no further action letters under section3746.11 of the Revised Code, and criteria for the suspension andrevocation of those certifications. The director shall take an action regarding a certification as a final action. The issuance, denial, renewal,suspension, and revocation of those certifications are subject toChapter 3745. of the Revised Code, ~~and the director shall takeany such action regarding a certification as a final action~~ except that, in lieu of publishing an action regarding a certification in a newspaper of general circulation as required in section 3745.07 of the Revised Code, such an action shall be published on the environmental protection agency's web site and in the agency's weekly review not later than fifteen days after the date of the issuance, denial, renewal, suspension, or revocation of the certification and not later than thirty days before a hearing or public meeting concerning the action.

The rules adopted under division (B)(5) of this sectionshall do all of the following:

(a) Provide for the certification of environmentalprofessionals to issue no further action letters pertaining toinvestigations and remedies in accordance with the criteria andprocedures set forth in the rules. The rules adopted underdivision (B)(5)(a) of this section shall do at least all of thefollowing:

(i) Authorize the director to consider such factors as anenvironmental professional's previous performance recordregarding such investigations and remedies and the environmentalprofessional's environmentalcompliance history when determining whether to certify theenvironmental professional;

(ii) Ensure that an application for certification isreviewed in a timely manner;

(iii) Require the director to certify any environmental professionalwhothe director determines complies with those criteria;

(iv) Require the director to deny certification for any environmentalprofessional who does not comply with those criteria.

(b) Establish an annual fee to be paid by environmentalprofessionals certified pursuant to the rules adopted underdivision (B)(5)(a) of this section. The fee shall be establishedat an amount calculated to defray the costs to the ~~environmentalprotection~~ agency for the required reviews of the qualificationsof environmental professionals for certification and for theissuance of the certifications.

(c) Develop a schedule for and establish requirementsgoverning the review by the director of the credentials ofenvironmental professionals who were deemed to be certifiedprofessionals under division (D) of section 3746.07 of theRevised Code in order to determine if they comply with thecriteria established in rules adopted under division (B)(5) ofthis section. The rules adopted under division (B)(5)(c) of thissection shall do at least all of the following:

(ii) Require the director to certify any such environmentalprofessional who the director determines complies with thosecriteria;

(iii) Require any such environmental professional initially to pay thefee established in the rules adopted under division (B)(5)(b) ofthis section at the time that the environmental professional is socertified bythe director;

(iv) Establish a time period within which any such environmentalprofessional who does not comply with those criteria may obtainthe credentials that are necessary for certification;

(v) Require the director to deny certification for anysuch environmental professional who does not comply with those criteriaand whofails to obtain the necessary credentials within the establishedtime period.

(d) Require that any information submitted to the directorfor the purposes of the rules adopted under division (B)(5)(a) or (c) of this sectioncomply with division (A) of section 3746.20 of the Revised Code;

(e) Authorize the director to suspend or revoke thecertification of an environmental professional if thedirector finds that the environmental professional's performancehas resulted in the issuance of nofurther action letters under section 3746.11 of the Revised Codethat are not consistent with applicable standards or finds thatthe certified environmental professional has not substantially compliedwith section 3746.31 of the Revised Code;

(f) Authorize the director to suspend for a period of notmore than five years or to permanently revoke a certifiedenvironmental professional's certification for any violation of orfailure tocomply with an ethical standard established in rules adoptedunder division (B)(5) of this section.;

(g) Require the director to revoke the certification of anenvironmental professional if the director finds that theenvironmental professionalfalsified any information on the environmentalprofessional's application for certificationregarding the environmental professional's credentials orqualifications or any otherinformation generated for the purposes of or use under thischapter or rules adopted under it;

(h) Require the director permanently to revoke thecertification of an environmental professional who has violatedor is violating division (A) of section 3746.18 of the RevisedCode;

(i) Preclude the director from revoking the certificationof an environmental professional who only conducts investigationsand remedies at property contaminated solely with petroleumunless the director first consults with the director of commerce.

(6) Criteria and procedures for the certification oflaboratories to perform analyses under this chapter and rulesadopted under it. The issuance, denial, suspension, andrevocation of those certifications are subject to Chapter 3745.of the Revised Code, and the director of environmental protectionshall take any such action regarding a certification as a finalaction.

The rules adopted under division (B)(6) of this sectionshall do all of the following:

(a) Provide for the certification to perform analyses oflaboratories in accordance with the criteria and proceduresestablished in the rules adopted under division (B)(6)(a) of thissection and establish an annual fee to be paid by thoselaboratories. The fee shall be established at an amountcalculated to defray the costs to the agency for the review ofthe qualifications of those laboratories for certification andfor the issuance of the certifications. The rules adopted underdivision (B)(6)(a) of this section may provide for thecertification of those laboratories to perform only particulartypes or categories of analyses, specific test parameters orgroup of test parameters, or a specific matrix or matrices underthis chapter.

(b) Develop a schedule for and establish requirementsgoverning the review by the director of the operations oflaboratories that were deemed to be certified laboratories underdivision (E) of section 3746.07 of the Revised Code in order todetermine if they comply with the criteria established in rulesadopted under division (B)(6) of this section. The rules adoptedunder division (B)(6)(b) of this section shall do at least all ofthe following:

(ii) Require the director to certify any such laboratorythat the director determines complies with those criteria;

(iii) Require any such laboratory initially to pay the feeestablished in the rules adopted under division (B)(6)(a) of thissection at the time that the laboratory is so certified by thedirector;

(iv) Establish a time period within which any suchlaboratory that does not comply with those criteria may makechanges in its operations necessary for the performance ofanalyses under this chapter and rules adopted under it in orderto be certified by the director;

(v) Require the director to deny certification for anysuch laboratory that does not comply with those criteria and thatfails to make the necessary changes in its operations within theestablished time period.

(c) Require that any information submitted to the directorfor the purposes of the rules adopted under division (B)(6)(a) or (b) of this sectioncomply with division (A) of section 3746.20 of the Revised Code;

(d) Authorize the director to suspend or revoke thecertification of a laboratory if the director finds that thelaboratory'sperformance has resulted in the issuance of no further actionletters under section 3746.11 of the Revised Code that are notconsistent with applicable standards;

(e) Authorize the director to suspend or revoke thecertification of a laboratory if the director finds that thelaboratory falsified any information on its application for certificationregarding its credentials or qualifications;

(f) Require the director permanently to revoke thecertification of a laboratory that has violated or is violatingdivision (A) of section 3746.18 of the Revised Code.

(7) Information to be included in a no further actionletter prepared under section 3746.11 of the Revised Code,including, without limitation, all of the following:

(a) A summary of the information required to be submittedto the certified environmental professional preparing the no furtheractionletter under division (C) of section 3746.10 of the Revised Code;

(b) Notification that a risk assessment was performed inaccordance with rules adopted under division (B)(2) of thissection if such an assessment was used in lieu of genericnumerical clean-up standards established in rules adopted underdivision (B)(1) of this section;

(d) The identity of any other person who performed work tosupport the request for the no further action letter as providedin division (B)(2) of section 3746.10 of the Revised Code and thenature and scope of the work performed by that person;

(e) A list of the data, information, records, anddocuments relied upon by the certified environmental professional inpreparingthe no further action letter.

(8) Methods for determining fees to be paid for thefollowing services provided by the agency under this chapter andrules adopted under it:

(a) Site- or property-specific technical assistance indeveloping or implementing plans in connection with a voluntaryaction;

(b) Reviewing applications for and issuing consolidatedstandards permits under section 3746.15 of the Revised Code andmonitoring compliance with those permits;

(c) Negotiating, preparing, and entering into agreementsnecessary for the implementation and administration of thischapter and rules adopted under it;

(d) Reviewing no further action letters, issuing covenantsnot to sue, and monitoring compliance with any terms andconditions of those covenants and with operation and maintenanceagreements entered into pursuant to those covenants, including,without limitation, conducting audits of properties wherevoluntary actions are being or were conducted under this chapterand rules adopted under it.

The fees established pursuant to the rules adopted underdivision (B)(8) of this section shall be at a level sufficient todefray the direct and indirect costs incurred by the agency forthe administration and enforcement of this chapter and rulesadopted under it other than the provisions regarding thecertification of professionals and laboratories.

(9) Criteria for selecting the no further action lettersissued under section 3746.11 of the Revised Code that will beaudited under section 3746.17 of the Revised Code, and the scopeand procedures for conducting those audits. The rules adoptedunder division (B)(9) of this section, at a minimum, shallrequire the director to establish priorities for auditing nofurther action letters to which any of the following applies:

(a) The letter was prepared by an environmentalprofessional who was deemed to be a certified professional underdivision (D) of section 3746.07 of the Revised Code, but who doesnot comply with the criteria established in rules adopted underdivision (B)(5) of this section as determined pursuant to rulesadopted under division (B)(5)(d) of this section.;

(c) The letter was prepared by a certified environmental professionalwhose certification subsequently was revoked in accordance withrules adopted under division (B)(5) of this section, or analyseswere performed for the purposes of the no further action letterby a certified laboratory whose certification subsequently wasrevoked in accordance with rules adopted under division (B)(6) ofthis section.;

(d) A covenant not to sue that was issued pursuant to theletter was revoked under this chapter.;

(e) The letter was for a voluntary action that wasconducted pursuant to a risk assessment in accordance with rulesadopted under division (B)(2) of this section.;

(f) The letter was for a voluntary action that included asremedial activities engineering controls or institutional controls or activity and use limitations authorized under section3746.05 of the Revised Code.

The rules adopted under division (B)(9) of this sectionshall provide for random audits of no further action letters towhich the rules adopted under divisions (B)(9)(a) to (f) of thissection do not apply.

(10) A classification system to characterize ground wateraccording to its capability to be used for human use and itsimpact on the environment and a methodology that shall be used todetermine when ground water that has become contaminated fromsources on a property for which a covenant not to sue isrequested under section 3746.11 of the Revised Code shall beremediated to the standards established in the rules adopted under division (B)(1) or(2) of this section.

(a) In adopting rules under division (B)(10) of thissection to characterize ground water according to its capabilityfor human use, the director shall consider all of the following:

(i) The presence of legally enforceable, reliablerestrictions on the use of ground water, including, withoutlimitation, local rules or ordinances;

(ii) The presence of regional commingled contaminationfrom multiple sources that diminishes the quality of groundwater;

(iv) Regional availability of ground water and reasonablealternative sources of drinking water;

(vi) The presence of restrictions on the use of groundwater implemented under this chapter and rules adopted under it;

(b) In adopting rules under division (B)(10) of thissection to characterize ground water according to its impacts onthe environment, the director shall consider both of thefollowing:

(i) The risks posed to humans, fauna, surface water,sediments, soil, air, and other resources by the continuingpresence of contaminated ground water;

(ii) The availability and feasibility of technology toremedy ground water contamination.

(11) Governing the application for and issuance ofvariances under section 3746.09 of the Revised Code;

(12)(a) In the case of voluntary actions involvingcontaminated ground water, specifying the circumstances underwhich the generic numerical clean-up standards established inrules adopted under division (B)(1) of this section and standardsestablished through a risk assessment conducted pursuant to rulesadopted under division (B)(2) of this section shall beinapplicable to the remediation of contaminated ground water andunder which the standards for remediating contaminated groundwater shall be established on a case-by-case basis prior to thecommencement of the voluntary action pursuant to rules adoptedunder division (B)(12)(b) of this section;

(b) Criteria and procedures for the case-by-caseestablishment of standards for the remediation of contaminatedground water under circumstances in which the use of the genericnumerical clean-up standards and standards established through arisk assessment are precluded by the rules adopted under division(B)(12)(a) of this section. The rules governing the proceduresfor the case-by-case development of standards for the remediationof contaminated ground water shall establish application, publicparticipation, adjudication, and appeals requirements andprocedures that are equivalent to the requirements and proceduresestablished in section 3746.09 of the Revised Code and rulesadopted under division (B)(11) of this section, except that theprocedural rules shall not require an applicant to make thedemonstrations set forth in divisions (A)(1) to (3) of section3746.09 of the Revised Code.

(13) A definition of the evidence that constitutessufficient evidence for the purpose of division (A)(5) of section3746.02 of the Revised Code.

At least thirty days before filing the proposed rulesrequired to be adopted under this section with the secretary ofstate, director of the legislative service commission, and jointcommittee on agency rule review in accordance with divisions (B)and (H) of section 119.03 of the Revised Code, the director ofenvironmental protection shall hold at least one public meetingon the proposed rules in each of the five districts into whichthe agency has divided the state for administrative purposes.

Sec. 3746.071. (A) As used in this section, "certifiedprofessional" means a certified professional deemed to becertified under division (D) of section 3746.07 of the RevisedCode.

(1) Protect the safety, health, and welfare of the publicin the performance of ~~his~~ professional duties. If a circumstancearises where the certified professional faces a situation wherethe safety, health, or welfare of the public would not beprotected, he the certified professional shall do all of thefollowing:

(a) Sever ~~his~~ the relationship with ~~his~~ the certifiedprofessional's employer or client;

(b) Refuse to accept responsibility for the design,report, or statement involved;

(c) Notify the director of environmental protection if, inthe opinion of the certified professional, the situation issufficiently important.

(2) Undertake to perform assignments only when he the certifiedprofessional or ~~his~~ the certified professional's consultingsupport is qualified by training and experience in thespecific technical fields involved;

(3) Be completely objective in any professional report,statement, or testimony. He The certified professional shallinclude all relevant and pertinent information in the report, statement, ortestimony when the result of an omission would or reasonably could lead to afallacious conclusion.

(4) Express an opinion as a technical or expert witnessbefore any court, commission, or other tribunal only when it isfounded upon adequate knowledge of the facts in issue, upon abackground of technical competence in the subject matter, andupon honest conviction of the accuracy and propriety of ~~his~~ thetestimony.

(C) A certified professional shall not issue statements,criticisms, or arguments on matters connected with public policythat are inspired or paid for by an interested party, unless he thecertified professional has prefaced ~~his~~ the remarks byexplicitly identifying ~~himself~~ the certified professional, by disclosing the identityof the parties on whose behalf he the certified professional isspeaking, and by revealing the existence of any pecuniary interest hethe certified professional may have in the instant matters.

(D)(1) A certified professional shall conscientiouslyavoid any conflict of interest with ~~his~~ the certifiedprofessional's employer or client.

(2) A certified professional promptly shall inform ~~his~~ thecertified professional's employer or client of any business association,interests, or circumstances that could influence ~~his~~ the certifiedprofessional's judgment or the quality of ~~his~~ the certifiedprofessional's service to ~~his~~ the employer or client.

(3) A certified professional shall not acceptcompensation, financial or otherwise, from more than one partyfor services on or pertaining to the same project, unless thecircumstances are fully disclosed to, and agreed to, by allinterested parties or their duly authorized agents.

(4) A certified professional shall not solicit or acceptfinancial or other valuable considerations from material orequipment suppliers for specifying their products.

(5) A certified professional shall not solicit or acceptgratuities, directly or indirectly, from contractors, theiragents, or other parties dealing directly with ~~his~~ the certifiedprofessional's employer or client in connection with the work for whichhe the certified professional is responsible.

(E)(1) A certified professional shall not pay, solicit, oroffer, directly or indirectly, any bribe or commission forprofessional employment with the exception of ~~his~~ payment of theusual commission for securing salaried positions through licensedemployment agencies.

(2) A certified professional shall seek professionalemployment on the basis of qualification and competence forproper accomplishment of the work. A certified professional maysubmit proposed fee information prior to ~~his~~ selection to serveas a certified professional under this chapter and rules adoptedunder it.

(3) A certified professional shall not falsify or permitmisrepresentation of ~~his~~ the certified professional's or~~his~~ the certified professional's associates' academic orprofessional qualifications. He The certified professionalshall not misrepresent or exaggerate ~~his~~ the certifiedprofessional's degree of responsibility in or forthe subject matter of prior assignments.

(4) Brochures or other presentations incident to thesolicitation of employment by a certified professional shall notmisrepresent pertinent facts concerning ~~his~~ the certifiedprofessional's employers, employees, associates, or joint ventures, or~~his or their~~ the past accomplishments of any of them,with the intent and purpose of enhancing ~~his~~ the certifiedprofessional's qualifications for ~~his~~ the certifiedprofessional's work.

(F)(1) A certified professional shall not sign or sealprofessional work for which he the certified professional doesnot have personal professional knowledge and direct supervisory control andresponsibility.

(2) A certified professional shall not knowingly associatewith, or permit the use of ~~his~~ the certified professional's ownname or ~~his firm's~~ the name of the certified professional'sfirm in, a business venture by any person or firm that he thecertified professional knows, or has reason to believe, is engaging inbusiness or professional practices of a fraudulent or dishonest nature.

(3) If a certified professional has knowledge or reason tobelieve that another person or firm has violated any of theprovisions of this chapter or any requirement of this section, hethe certified professional shall present the information to thedirector in writing.

(G) The director, in accordance with ~~Chapter 3745.~~ rules adopted under section 3746.04 of theRevised Code, may suspend for a period of not more than fiveyears or permanently revoke a certified professional'scertification for a violation of or failure to comply with anyrequirement or obligation set forth in this section.

Sec. 3748.07. (A) Every facility that proposes tohandle radioactive material or radiation-generating equipment for whichlicensure or registration, respectively, by itshandler is required shall apply in writing to the director of health onforms prescribed and provided by the director for licensure orregistration. Terms and conditions of licenses and certificatesof registration may be amended in accordance with rules adopted under section3748.04 of the Revised Code or orders issued by the directorpursuant to section 3748.05 of the Revised Code.

(B) Until rules are adopted under section 3748.04 of theRevised Code, an application for a certificate ofregistration shall be accompanied by a biennial registration fee of twohundred eighteen dollars. On and after the effective dateof those rules, an applicant for a license, registration certificate, orrenewal of either shall pay the appropriate fee established in those rules.

All fees collected under this section shall be deposited inthe state treasury to the credit of the general operations fundcreated in section 3701.83 of the Revised Code. The feesshall be used solely to administer and enforce this chapter and rules adoptedunder it.

Any fee required under this section that has not been paid within ninetydays after the invoice date shall be assessed at two times the originalinvoiced fee. Any fee that has not been paid within one hundred eighty daysafterthe invoice date shall be assessed at five times the original invoicedfee.

(C) The director shall grant a license or registration to anyapplicant who has paid the required fee and is in compliance with thischapter andrules adopted under it.

Until rules are adopted under section 3748.04 of theRevised Code, certificates of registration shall beeffective for two years from thedate of issuance. On and after the effective date ofthose rules, licenses and certificates of registration shall be effective forthe applicable period established in those rules. Licenses and certificatesof registration shall be renewed in accordance with thestandard renewal procedure established in Chapter 4745. of theRevised Code.

Sec. 3748.13. (A) The director of health shall inspect sources ofradiation for which licensure or registration by the handler isrequired, and the sources'shielding and surroundings, according to the schedule established inrules adopted under division (D) of section3748.04 of the Revised Code. In accordance with rulesadopted under that section, the director shall inspect allrecords andoperating procedures of handlers that install sources ofradiation and all sources ofradiation for which licensure of radioactive material orregistration of radiation-generating equipment by thehandler is required. The director may make otherinspections upon receiving complaints or other evidence of violation of thischapter or rules adopted under it.

The director shall require any hospitalregistered under division (A) ofsection 3701.07 of the Revised Code to develop and maintain aquality assurance program for all sources of radiation-generating equipment. A certified radiation expert shall conduct oversight and maintenance of theprogram and shall file a report of audits of the program with the director onforms prescribed by the director. The audit reports shall becomepart of the inspection record.

(B) Until rules are adopted under division (A)(8) ofsection 3748.04 of the Revised Code, afacility shall pay inspection fees according to thefollowing schedule and categories:

Until rules are adopted under division (A)(8) of section3748.04 of the Revised Code, the fee for an inspection todetermine whether violationscited in a previous inspection have been corrected is fifty percent of the fee applicable under the schedule in this division. Until those rules are adopted, the fee for the inspection ofa facility that is not licensed or registeredand for which no license or registration application ispending at the time of inspection is three hundred ~~sixty-three~~ ninety-five dollars plus the fee applicable under theschedule in this division.

The director may conduct a review ofshielding plans or the adequacy of shielding on the request of alicensee or registrant or an applicant for licensure orregistration or during an inspection when the directorconsiders a review to be necessary. Until rules are adopted underdivision (A)(8) of section 3748.04 of the Revised Code,the fee for the review is ~~five~~ six hundred ~~eighty-three~~ thirty-five dollars for eachroom where a source of radiation is used and is in addition to any other feeapplicable under the schedule in this division.

All fees shall be paid to the department of health no later thanthirty days after the invoice for the fee is mailed. Fees shallbe deposited in the general operations fund created in section3701.83 of the Revised Code. The fees shall be used solely to administerand enforce this chapter and rules adopted under it.

Any fee required under this section that has not been paidwithin ninety days after the invoice date shall be assessed at two times theoriginal invoiced fee. Any fee that has not been paid within one hundredeighty days after the invoice date shall be assessed at five times theoriginal invoiced fee.

(C) If the director determines that a board ofhealth of a city or general health district is qualified toconduct inspections of radiation-generating equipment, thedirector may delegate to the board, by contract, theauthority to conduct such inspections. In making adetermination of the qualifications of a board of health to conduct thoseinspections, the director shall evaluate the credentials of theindividuals who are to conduct the inspections ofradiation-generating equipment and the radiationdetection and measuring equipment available to them for thatpurpose. If a contract is entered into, the board shall have thesame authority to make inspections of radiation-generating equipment asthe director has under this chapter and rules adopted under it. Thecontract shall stipulate that only individuals approved by thedirector as qualified shall be permitted to inspect radiation-generatingequipment under the contract's provisions. The contract shallprovide for such compensation for services as is agreed to by thedirector and the board of health of the contracting healthdistrict. The director may reevaluate the credentials of theinspection personnel and their radiation detecting and measuringequipment as often as the director considers necessary and may terminateany contract with the board of health of any health districtthat, in the director's opinion, is not satisfactorilyperforming the terms of the contract.

(D) The director may enter at all reasonable times upon any publicor private property to determine compliance with this chapter and rulesadopted under it.

Sec. 3770.061. There is hereby created in the state treasury the charitable gaming oversight fund. The state lottery commission shall credit to the fund any money it receives from the office of the attorney general under any agreement the commission and the office have entered into under division (I) of section 2915.08 of the Revised Code. The commission shall use money in the fund to provide oversight, licensing, and monitoring of charitable gaming activities in this state in accordance with the agreement and Chapter 2915. of the Revised Code. Not later than the first day of July of each fiscal year, or as soon as possible thereafter, the commission may certify to the office of budget and management any unobligated fund balances not necessary to be used under this section. The commission may request the office of budget and management to transfer these balances to the lottery profits education fund for use in accordance with section 3770.06 of the Revised Code.

Sec. 3773.34. (A) The Ohio athletic commission shall adoptand may amend or rescind rules in accordance with Chapter 119. ofthe Revised Code, prescribing the conditions under which prizefights and public boxing or wrestling matches or exhibitions maybe conducted, classifyingprofessional boxers by weight, and providing for theadministration of sections 3773.31 to 3773.57 of the RevisedCode. The rules may require that an applicant for a contestant's licenseto participate in a public boxing match or exhibition take an HIVtest, as defined in section 3701.24 of the Revised Code, before being issuedthecontestant's license and may require that a licensed contestant take such anHIV test before participating in a public boxing match or exhibition. The commission, or the commission's executive director when authorized by the commission, may issue, deny, suspend, or revoke permitsto hold prize fights and public boxing orwrestling matches or exhibitions~~, and~~. The commission may issue,deny, suspend, or revoke licenses to persons engaged in any publicboxing match or exhibition as authorized by sections 3773.31 to 3773.57of the Revised Code.

(B) In addition to the duties set forth in this chapter, the Ohioathletic commission shall take action as necessary to carry out the provisionsof Chapter 4771. of the Revised Code governing athlete agents.

(C) On or before the thirty-first day of December of eachyear, the commission shall make a report to the governor of itsproceedings for the year ending on the first day of December ofthat calendar year, and may include in the report anyrecommendations pertaining to its duties.

Sec. 3773.38. Each person who holds a promoter's licenseissued under section 3773.36 of the Revised Code who desires toconduct a public boxing or wrestling match or exhibition whereone or more contestsare to be held shall obtain a permit from theOhio athletic commission or the commission's executive director when the executive director is authorized by the commission to issue those types of permits. Application for such a permit shallbe made in writing and on forms prescribed by the commission, shall be filedwith the commission, and shall be accompanied by the permit feeprescribed in section 3773.43 of the Revised Code.

The application for a permit issued under this sectionshall include the date and starting time of the match orexhibition, the address of the place where the match orexhibition is to be held, the names of the contestants, the seating capacityof the building or hall where theexhibition is to be held, the admission charge or any othercharges, the amount of compensation or the percentage of gatereceipts to be paid to each contestant, the name and address ofthe applicant, a copy of the current official rules that govern theparticular sport, and the serial number of the applicant'spromoter's license.

The commission, or the commission's executive director when authorized by the commission, may require the applicant to deposit withthe commission before a public boxing match or exhibition acash bond, certified check, bank draft, or surety bond in an amount equal tofive per cent of the estimated gross receipts from the match or exhibition.

Sec. 3773.39. (A) Upon receipt of an application for apermit to hold a public boxing or wrestling match or exhibitionunder section 3773.38 of the Revised Code, the Ohio athleticcommission, or the commission's executive director when authorized by the commission, shall determineif the applicant holds a valid promoter's license issued pursuantto section 3773.36 of the Revised Code. Upon receipt of anapplication for a permit to hold a public boxing match or exhibition, thecommission, or the commission's executive director when authorized by the commission, also shall determine if the contestants are evenly and fairlymatched according to skill, experience, and weight so as to produce a fair andsportsmanlike contest, and whether the applicant isfinancially responsible and is able to pay to each contestant thecompensation or percentage of the gate receipts named in theapplication. The commission, or the commission's executive director when authorized by the commission, may, if applicable, requirethe applicant to deposit with it within forty-eight hours before the match orexhibition the total compensation or estimated portion of gate receipts tobe paid all contestants named in the application made undersection 3773.38 of the Revised Code.

(B) If the commission, or the commission's executive director when authorized by the commission, determines that the applicant hasmet all the requirements specified in division (A) of thissection, it the commission or executive director shall issue the applicant a permit to conduct thematch or exhibition. If the applicant fails to deposit anycompensation or portion of gate receipts required by thecommission, or executive director before the first contest of the match or exhibition isheld, the commission, or the commission's executive director when authorized by the commission, may revoke the permit and order theapplicant not to conduct the match or exhibition described in thepermit.

(C) Each permit issued pursuant to this section shall bearthe name and post office address of the applicant, the address ofthe place where the public boxing or wrestling match or exhibition isto be held, the date and starting time of the match or exhibition, and aserial number designated by the commission.

A permit issued under this section shall allow the permitholder to conduct only the match or exhibition named in thepermit. A permit is not transferable.

Sec. 3773.40. No person who holds a promoter's license toconduct a public boxing match or exhibition undersection 3773.36 of the Revised Code shall:

(A) Hold any match or exhibition at any time or placeother than that stated on a permit issued under section 3773.38of the Revised Code;

(B) Allow any contestant to participate in the match orexhibition unless the contestant is the licensed contestant named in theapplication for such permit or a licensed contestant authorized tocompete as a substitute for such a contestant by the inspectorassigned to the facility where the match or exhibition is heldfor that match or exhibition;

(D) Pay a greater compensation or percentage of the gatereceipts to any contestant than that stated in the application.

The Ohio athletic commission, or the commission's executive director when authorized by the commission, upon application by a holderof a permit under section 3773.38 of the Revised Code, may allowthe permit holder to hold the match or exhibition for which thepermit was issued at an alternative site that is within the samemunicipal corporation or township and that offers substantiallysimilar seating facilities, or allow the permit holder tosubstitute contestants or seconds, provided that the substitutecontestants are evenly matched with their opponents in skill,experience, and weight.

Sec. 3773.57. The Ohio athletic commission and the commission's executive director shall not issue a license orpermit to conduct public boxing or wrestling matches or exhibitions ina municipal corporation or theunincorporated portion of a township if the commission or the commission's executive director determines that thelegislative authority of the municipal corporation or board of townshiptrustees has in effect an ordinance or resolution prohibiting such matches orexhibitions.

Sec. 3781.07. There is hereby established in thedepartment of commerce a board of building standardsconsisting of ~~ten~~ eleven members appointed by the governorwith the advice and consent of the senate. The board shall appointa secretary who shall serve in the unclassified civil service for aterm of six years at a salary fixed pursuant to Chapter 124. ofthe Revised Code. The board may employ additional staff in theclassified civil service. The secretary may be removed by theboard under the rules the board adopts. Terms of office shall be for fouryears, commencing on thefourteenth day of October and ending on the thirteenth day ofOctober. Each member shall hold office from the dateof appointment until the end of the term for which themember wasappointed. Any member appointed to fill a vacancy occurringprior to the expiration of the term for which the member'spredecessor wasappointed shall hold office for the remainder of such term. Anymember shall continue in office subsequent to theexpiration date of the member's term until themember's successor takes office, oruntil a period of sixty days has elapsed, whichever occurs first. One of the membersappointed to the board shall be anattorney at law, admitted to the bar of this state; two shall beregistered architects; two shall be professional engineers, onein the field of mechanical and one in the field of structuralengineering, each of whom shall be duly licensed to practice suchprofession in this state; one shall be a person of recognizedability, broad training, and fifteen years experience in problemsand practice incidental to the construction and equipment ofbuildings specified in section 3781.06 of the Revised Code; oneshall be a person with recognized ability and experience in themanufacture and construction of industrialized units as definedin section 3781.06 of the Revised Code; one shall be a member ofthe fire service with recognized ability and broad training inthe field of fire protection and suppression; one shall be a person with atleast ten years of experience and recognized expertise in building codes andstandards and the manufacture of construction materials; ~~and~~ oneshall be ageneral contractor with experience in residential and commercialconstruction; and one, chosen from a list of three names the Ohio municipal league submits to the governor, shall be the mayor of a municipal corporation in which the Ohio residential and nonresidential building codes are being enforced in the municipal corporation by a certified building department. Each member of the board, not otherwise requiredto take an oath of office, shall take the oath prescribed by theconstitution. Each member shallreceive as compensation an amount fixed pursuant to division (J)of section 124.15 of the Revised Code, and shall receive actual andnecessary expenses in the performance of officialduties. The amount of such expenses shall be certified by thesecretary of the board and paid in the same manner as theexpenses of employees of the department of commerce are paid.

Sec. 3781.10. (A)(1) The board of building standards shall formulate and adopt rules governing the erection,construction, repair, alteration, and maintenance of allbuildingsor classes of buildings specified in section 3781.06 oftheRevised Code, including land area incidental to those buildings, theconstruction of industrialized units, the installation ofequipment, and the standards or requirements for materials used in connection with those buildings. The board shall incorporate those rules intoseparate residential and nonresidential building codes. Thestandards shall relate to theconservation of energy and thesafety and sanitation of thosebuildings.

(2) The rules governing nonresidential buildings arethelawful minimumrequirementsspecified for those buildings and industrializedunits,except thatno rule other than as provided in division (C) ofsection3781.108 ofthe Revised Code that specifies a higherrequirementthan isimposed by any section of the Revised Code isenforceable. The rules governing residential buildings are uniform requirements for residential buildings in any area with a building department certified to enforce the state residential building code. In no case shall any local code or regulation differ from the state residential building code unless that code or regulation addresses subject matter not addressed by the state residential building code or is adopted pursuant to section 3781.01 of the Revised Code.

(3) The rules adopted pursuant to this section are complete,lawfulalternatives to any requirements specified for buildings orindustrializedunits in any section of the RevisedCode. Theboard shall, onits own motion or on applicationmade undersections 3781.12 and3781.13 of the Revised Code,formulate,propose, adopt, modify,amend, or repeal the rules tothe extentnecessary or desirable toeffectuate the purposes ofsections3781.06 to 3781.18 of theRevised Code.

(B) The board shall report to the general assembly proposals foramendments to existing statutes relating to the purposes declaredin section 3781.06 of the Revised Code that public health andsafetyand the development of the arts require and shall recommend anyadditionallegislation to assist in carryingout fully, instatutory form, the purposes declared in thatsection. The board shall prepareand submit to the general assembly a summaryreport of the number,nature, and disposition of the petitionsfiled under sections3781.13 and 3781.14 of the Revised Code.

(C) On its own motion or on applicationmade under sections 3781.12 and 3781.13 of the Revised Code, andafter thorough testing and evaluation, the board shall determine by rule that any particularfixture,device, material, process of manufacture, manufacturedunit orcomponent, method of manufacture, system, or method ofconstruction complies with performance standards adoptedpursuantto section 3781.11 of the Revised Code. The board shall make its determination with regard toadaptability for safe and sanitary erection, use, orconstruction,to that described in any section of the RevisedCode, wherever theuse of a fixture, device, material, method ofmanufacture, system,or method of construction describedin that section ofthe Revised Code is permitted by law. The board shallamend or annul any rule or issue anauthorization for the useof a new material or manufactured unit on any like application. No department,officer, board, or commission of the stateother than the board ofbuilding standards or the board ofbuilding appeals shall permitthe use of any fixture, device,material, method of manufacture,newly designed product, system,or method of construction atvariance with what is described inany rule the board of building standards adopts or issues or that is authorized by anysection of the Revised Code. Nothing in thissection shall beconstrued as requiring approval, by rule, ofplans for anindustrialized unit that conforms with the rules theboard of building standards adopts pursuant to section3781.11 of theRevised Code.

(D) The board shall recommend rules, codes, and standards to help carry out the purposes of section 3781.06 of the Revised Code and to help secure uniformity of state administrative rulings and local legislation and administrative action to the bureau of workers' compensation, thedirector of commerce, any other department, officer, board,orcommission of the state, and to legislative authorities andbuilding departments of counties, townships, and municipalcorporations, and shall recommend that they audit those recommended rules, codes, and standards by any appropriate action that they are allowed pursuant to law or the constitution.

(E)(1) The board shall certify municipal, township, and county buildingdepartments and the personnel of those building departments, and persons and employees of individuals, firms, or corporations as described in division (E)(7) of this section to exercise enforcement authority, to accept andapprove plans and specifications, and to make inspections,pursuant to sections 3781.03, 3791.04, and 4104.43 of the Revised Code.

(2) The board shall certify departments, personnel, and persons to enforce the state residential building code, to enforce the nonresidential building code, or to enforce both the residential and the nonresidential building codes. Any department, personnel, or person may enforce only the type of building code for which certified.

(3) The board shall not require a building department, its personnel, or any persons that it employs to be certified for residential building code enforcement if that building department does not enforce the state residential building code. The board shall specify, in rules adopted pursuantto Chapter 119. of the Revised Code, the requirements for certification for residential and nonresidential building code enforcement, which shallbe consistent with this division. The requirements for residential and nonresidential certification may differ. Except as otherwise providedinthis division, the requirements shall include, but are notlimitedto, the satisfactory completion of an initial examinationand, to remain certified, the completion of a specifiednumber ofhours of continuing building code education within eachthree-yearperiod following the date of certification which shall be not less thanthirty hours. The rulesshall provide that continuing education credits andcertificationissued by the council of American buildingofficials, nationalmodel code organizations, and agencies orentities the board recognizes are acceptable for purposes ofthis division. The rules shallspecify requirements that arecompatible, to the extent possible,with requirements the council of American buildingofficials and national modelcode organizations establish.

(4) The board shallestablish and collect acertification and renewal fee for buildingdepartment personnel,and persons and employees of persons, firms,or corporations asdescribed in thissection, who are certifiedpursuant to this division.

(5) Any individual certified pursuant to this division shallcomplete the number of hours of continuing building codeeducationthat the board requires or, for failure to do so,forfeit certification.

(6) This division does not require or authorize the board to certify personnel of municipal, township,and countybuilding departments, and persons and employees ofpersons, firms,or corporations as described in thissection, whose responsibilities do not includethe exercise ofenforcement authority, the approval of plans andspecifications,or making inspections under the state residential and nonresidentialbuilding codes.

(7) Enforcement authority for approval of plans andspecifications and enforcement authority for inspections may be exercised, and plans and specifications maybe approved and inspections may be made on behalf of a municipal corporation, township, orcounty, by any of the following who the board ofbuilding standards certifies:

(b) Persons, or employees of persons, firms, orcorporations, pursuant to acontract to furnish architectural or, engineering, or other services to themunicipal corporation, township, or county;

(c) Officers or employees of, and persons under contract with, a municipalcorporation, township, county, health district, or otherpoliticalsubdivision, pursuant to a contract to furnish architectural or, engineering, or otherservices.

(8) Municipal, township, and county building departments have jurisdiction within the meaning of sections 3781.03,3791.04, and 4104.43 of the Revised Code, only with respect to the typesofbuildings and subject matters for which they arecertifiedunder this section.

(9) Certification shall be granted upon application by themunicipal corporation, the board of township trustees, or theboard of county commissioners and approval of that application bythe board of building standards. The application shall setforth:

(a)Whether thecertification is requestedfor residential or nonresidentialbuildings, or both;

(c) The names, addresses, and qualifications of persons,firms, or corporations contracting to furnish work or servicespursuant to division (E)(7)(b) of this section;

(d) The names of any other municipal corporation, township, county, health district, or political subdivision under contract to furnish work or services pursuant to division (E)(7) of this section;

(10) The board of building standards shall adopt rulesgoverning all of the following:

(a) The certification of building department personnel and persons and employees of persons, firms, or corporationsexercising authority pursuant to division (E)(7) of thissection. The rules shall disqualify any employee of the department or person who contractsfor services with the department from performingservices for the department when thatemployee or person would have topass upon, inspect, or otherwise exercise authority over any labor,material, or equipment the employee or person furnishes for theconstruction,alteration, or maintenanceof a building or thepreparation of working drawings orspecifications for work withinthe jurisdictional area of thedepartment. The department shallprovide other similarlyqualified personnel to enforce the residential and nonresidentialbuilding codes as they pertain to thatwork.

(11) The board of building standards may revoke or suspend certification to enforce theresidential andnonresidential buildingcodes, on petition to the board by anyperson affected by that enforcement orapproval of plans, or bythe board on its own motion. Hearingsshall be held and appealspermitted on any proceedings forcertification or revocation or suspension of certification inthe same manner asprovided in section 3781.101 of the RevisedCode for otherproceedings of the board of building standards.

(12) Upon certification, and until that authority isrevoked, anycounty or township building department shall enforcetheresidential and nonresidential building codes for which it is certified without regard tolimitation upon theauthority of boards ofcounty commissionersunder Chapter 307. ofthe Revised Code orboards of townshiptrustees under Chapter 505.of the RevisedCode.

(F) In addition to hearingssections 3781.06 to 3781.18 and 3791.04 of the Revised Code require, the board of building standards shallmake investigations and tests, and require from otherstatedepartments, officers, boards, and commissions information the board considers necessary or desirable to assist itin the discharge of any duty or theexercise of any powermentioned in this section or in sections3781.06 to 3781.18,3791.04, and 4104.43 of the Revised Code.

(G) The board shall adopt rules and establish reasonable fees for thereview of all applications submitted where the applicant appliesfor authority to use a new material, assembly, or product of amanufacturing process. The fee shall bear somereasonable relationship to the cost of the review or testing ofthe materials, assembly, or products and for the notificationofapproval or disapproval as provided in section 3781.12 of theRevised Code.

(H)The residentialconstruction advisory committee shall provide the board with a proposal for a state residential building code thatthe committee recommends pursuant to division (C)(1) of section4740.14 of the Revised Code. Upon receiving a recommendationfrom the committee that is acceptable to the board, the boardshall adopt rules establishing that code as the stateresidential building code.

(I) The board shall cooperate with the director of job and family serviceswhen thedirector promulgates rules pursuant to section 5104.05 oftheRevised Code regarding safety and sanitation in type A familyday-care homes.

(J) The board shall adopt rules to implement the requirements of section3781.108 of the Revised Code.

Sec. 3781.102. (A) Any county or municipal buildingdepartment certified pursuant to division (E) of section 3781.10of the Revised Code as of September 14, 1970, and that, asofthat date, was inspecting single-family,two-family, andthree-family residences, and any township building departmentcertified pursuant to division (E) of section 3781.10 of theRevised Code, is hereby declared to be certified to inspectsingle-family, two-family, and three-family residences containingindustrialized units, and shall inspectthe buildings or classes of buildings subject to division (E) of section 3781.10 of the Revised Code.

(B) Each board of county commissioners may adopt, byresolution,rules establishing standards and providing for thelicensing ofelectrical and heating, ventilating, and airconditioningcontractors who are not required to hold a valid andunexpired licensepursuant to Chapter 4740. of the Revised Code.

Rules adopted by a board of county commissioners pursuanttothis division may be enforced within the unincorporated areasofthe county and within any municipal corporation where thelegislative authority of the municipal corporation has contractedwith the board for the enforcement of the county rules within themunicipal corporation pursuant to section 307.15 of the RevisedCode. The rules shall not conflict with rules adopted by theboard of building standards pursuant to section 3781.10 of theRevised Code or by the department of commerce pursuant to Chapter3703. of the Revised Code. This division does not impair orrestrict the power of municipal corporations under Section 3 ofArticle XVIII, Ohio Constitution, to adopt rules concerningtheerection, construction, repair, alteration, and maintenanceofbuildings and structures or of establishing standards andproviding for the licensing of specialty contractors pursuant tosection715.27 of the Revised Code.

A board of county commissioners, pursuant to thisdivision,may require all electrical contractors andheating, ventilating,and air conditioning contractors, other thanthose who hold avalid and unexpired license issued pursuant toChapter 4740. ofthe Revised Code, tosuccessfully complete an examination, test,or demonstration oftechnical skills, and may impose a fee andadditional requirementsfor a license to engage in theirrespective occupations withinthe jurisdiction of the board'srules under this division.

(C) No board of county commissioners shall require anyspecialty contractor who holds avalid and unexpired licenseissued pursuant toChapter 4740.of theRevised Code tosuccessfully complete anexamination, test, or demonstration oftechnical skills in order to engage in the type of contractingfor which the license is held,within the unincorporated areas ofthe county and within anymunicipal corporation whose legislativeauthority has contractedwith the board for the enforcement ofcounty regulations withinthe municipal corporation, pursuant tosection 307.15 of theRevisedCode.

(D) A board may impose a fee for registration of aspecialty contractor who holds a valid and unexpired licenseissued pursuant toChapter 4740. of the Revised Code before thatspecialty contractor may engagein the type of contracting forwhich the license is held within theunincorporated areas of thecounty and within anymunicipal corporation whose legislativeauthority has contractedwith the board for the enforcement ofcounty regulations withinthe municipal corporation, pursuant tosection 307.15 of theRevisedCode, provided that the fee is thesame for all specialty contractors whowish to engage in thattype of contracting. If a board imposes such a fee, the boardimmediately shall permit a specialty contractor who presentsproof of holding avalid andunexpired license and pays therequired fee toengage in the type of contractingfor whichthelicense is held within theunincorporated areas of the county andwithin any municipal corporationwhose legislative authority hascontracted with the board for the enforcementof countyregulations within the municipal corporation, pursuant to section307.15 of the Revised Code.

(E) The political subdivision associated with eachmunicipal, township, and county building department the board of building standards certifies pursuant to division (E) ofsection 3781.10 of the Revised Code may prescribe fees to be paidby persons, political subdivisions, or any department, agency,board, commission, or institution of the state, for theacceptanceand approval of plans and specifications, and for themaking ofinspections, pursuant to sections 3781.03 and 3791.04of theRevised Code.

(F) Each political subdivision that prescribes feespursuanttodivision (E) of this section shall collect, on behalf oftheboard ofbuilding standards, fees equal to the following:

(1) Three per cent of thefees the political subdivision collects in connection with nonresidential buildings;

(2) One per cent of the fees the political subdivision collects in connection with residential buildings.

(G)(1) The boardshall adopt rules, in accordance with Chapter119. of the Revised Code,specifying the manner in which the feeassessed pursuant to division(F) of this section shall becollected and remittedmonthly to the board. The board shall pay the fees into the state treasury to the credit ofthe industrial compliance operating fund created in section121.084 of theRevised Code.

(2) All money credited to the industrial compliance operating fund under this division shall beusedexclusively for the following:

(b) Providing services, including educational programs, forthe buildingdepartments that are certified by the board pursuantto division (E)of section 3781.10 of the Revised Code;

(c) Paying the expenses of the residential construction advisory committee, including the expenses of committee members as provided in section 4740.14 of the Revised Code.

(H) A board of county commissioners that adopts rulesprovidingfor the licensing of electrical and heating,ventilating, and airconditioning contractors, pursuant todivision (B) of thissection, may accept, for purposes ofsatisfying the requirements of rules adopted under thatdivision,a valid and unexpired license issued pursuant to Chapter4740. ofthe Revised Code that is held by an electrical orheating,ventilating, and air conditioning contractor, for theconstruction, replacement, maintenance, or repair of one-family,two-family, or three-family dwelling houses or accessorystructures incidental to those dwelling houses.

(I) A board of county commissioners shall not register a specialty contractor who is required to hold a license under Chapter 4740. of the Revised Code but does not hold a valid license issued under that chapter.

(J) As used in this section, "specialty contractor" means aheating, ventilating, and air conditioning contractor,refrigeration contractor, electrical contractor, plumbingcontractor, orhydronics contractor, as those contractors are described in Chapter 4740. of the Revised Code.

Sec. 3781.191. The Ohio board of building appeals has no authority to hear any case based on the Ohio residential building code or to grant any variance to the Ohio residential building code.

Sec. 3793.09. (A) There is hereby created the council onalcohol and drug addiction services which shall consist of thepublic officials specified in division (B) of this section, ortheir designees, and thirteen members appointed by the governorwith the advice and consent of the senate. The members appointedby the governor shall be representatives of the following: boards of alcohol, drug addiction, and mental health services;the criminal and juvenile justice systems; and alcohol and drugaddiction programs. At least four of the appointed members shallbe persons who have received or are receiving alcohol or drugaddiction services or are parents or other relatives of suchpersons; of these at least two shall be women and at least oneshall be a member of a minority group.

The governor shall make initial appointments to the councilnot later than thirty days after October 10, 1989. Of theinitial appointments,six shallbe for terms ending July 31, 1991, and seven shall be for termsending July 31, 1992. Thereafter, terms of office shall be twoyears, with each term ending on the same day of the same month asthe term it succeeds. Each member shall hold office from thedate of the member's appointment until the end of the term forwhich the member was appointed. Members may be reappointed. Vacancies shall befilled in the same manner as original appointments. Any memberappointed to fill a vacancy occurring prior to the expiration ofthe term for which the member's predecessor was appointed shallholdoffice as a member for the remainder of the term. A member shallcontinue in office subsequent to the expiration of the member'sterm untilthe member's successor takes office or until a period of sixty dayshaselapsed, whichever occurs first.

(B) The directors of health, public safety, mental health,rehabilitation and correction, and youthservices; the superintendents of public instructionand liquor control; the attorneygeneral; the adjutant general; and the executive director of the ~~office~~ division ofcriminal justice services in the department of public safety shall be voting members of the council,except that any of these officials may designate an individual toserve in the official's place as a voting member of the council. Thedirector of alcohol and drug addiction services shall serve as anonvoting member of the council.

(C) The governor shall annually appoint a ~~chairman~~ chairpersonfrom among the members of the council. The council shall meetquarterly and at other times the ~~chairman~~ chairperson considersnecessary. In addition to other duties specified in this chapter, thecouncil shall review the development of the comprehensivestatewide plan for alcohol and drug addiction services, revisionsof the plan, and other actions taken to implement the purposes ofthis chapter by the department of alcohol and drug addictionservices and shall act as an advisory council to the director ofalcohol and drug addiction services.

(D) Members of the council shall serve withoutcompensation, but shall be paid actual and necessary expensesincurred in the performance of their duties.

Sec. 3901.021. (A) Three-fourths of all appointmentand otherfees collected undersection 3905.10, and division (B) of section3905.20~~, anddivision(A)(6) ofsection3905.40~~ of theRevisedCodeshall be paid intothestate treasury to the credit of thedepartment of insuranceoperating fund, which is hereby created.The remainingone-fourthshall be credited to the general revenuefund. ~~All~~ Other revenues collected by the superintendent of insurance, such as registration fees for sponsored seminars or conferences and grants from private entities, shall be paid into the state treasury to the credit of the department of insurance operating fund.

(B) Seven-tenths of all fees collected under divisions (A)(2), (A)(3), and (A)(6) of section 3905.40 of the Revised Code shall be paid into the state treasury to the credit of the department of insurance operating fund. The remaining three-tenths shall be credited to the general revenue fund.

(C) All operatingexpenses of the department of insuranceexceptthose expensesdefined under section 3901.07 of the RevisedCodeshall be paidfrom the department of insurance operatingfund.

(1) "Captive insurer" has the meaning defined in section 3905.36 of the Revised Code.

(2) "Insurer" includes, but is not limited to, any personthat is an affiliate of or affiliated with the insurer, asdefined in division (A) of section 3901.32 of the Revised Code,and any person that is a subsidiary of the insurer as defined indivision (F) of section 3901.32 of the Revised Code.

~~(2)~~(3) "Laws of this state relating to insurance" has themeaning defined in division (A)(1) of section 3901.04 of theRevised Code.

~~(3)~~(4) "Person" has the meaning defined in division (A) ofsection 3901.19 of the Revised Code.

(B) Any of the following acts in this state, effected bymail or otherwise, by any foreign or alien insurer not authorizedto transact business within this state, any nonresident personacting on behalf of an insurer, or any nonresident insuranceagent subjects the insurer, person, or agent to the exercise ofpersonal jurisdiction over the insurer, person, or agent to theextent permitted by the constitutions of this state and of theUnited States:

(1) Issuing or delivering contracts of insurance toresidents of this state or to corporations authorized to dobusiness therein;

(4) Receiving or collecting any premium, commission,membership fee, assessment, dues, or other consideration for anyinsurance contract or any part thereof;

(5) Disseminating information as to coverage or rates,forwarding applications, inspecting risks, fixing rates,investigating or adjusting claims or losses, transacting anymatters subsequent to effecting a contract of insurance andarising out of it;

(6) Doing any kind of business recognized as constitutingthe doing of an insurance business under Title XXXIX of theRevised Code or subject to regulation by the superintendent ofinsurance under the laws of this state relating to insurance.

Any such act shall be considered to be the doing of aninsurance business in this state by such insurer, person, oragent and shall be its agreement that service of any lawfulsubpoena, notice, order, or process is of the same legal forceand validity as personal service of the subpoena, notice,order,or process in this state upon the insurer, person, oragent.

(C) Service of process in judicial proceedings shall be asprovided by the Rules of Civil Procedure. Service in or out ofthis state of notice, orders, or subpoenas in administrativeproceedings before the superintendent shall be asprovided in section 3901.04 of the Revised Code.

(D) Service of any notice, order, subpoena, or process inany such action, suit, or proceeding shall, in addition to themanner provided in division (C) of this section, be valid ifserved upon any person within this state who, in this state onbehalf of such insurer, person, or agent is or has been:

(3) Collecting or receiving any premium, membership fees,assessment, dues, or other consideration for insurance;

(4) Disseminating information as to coverage or rates,forwarding applications, inspecting risks, fixing rates,investigating or adjusting claims or losses, or transacting anymatters subsequent to effecting a contract of insurance andarising out of it.

(E) Nothing in this section shall limit or abridge theright to serve any subpoena, order, process, notice, or demandupon any insurer, person, or agent in any other manner permittedby law.

(F) Every person investigating or adjusting any loss orclaim under a policy of insurance not excepted under division (I)of this section and issued by any such insurer and covering asubject of insurance that was resident, located, or to beperformed in this state at the time of issuance shall immediatelyreport the policy to the superintendent.

(G) Each such insurer that does any of the acts set forthin division (B) of this section in this state by mail orotherwise shall be subject to a tax of five per cent on the grosspremiums, membership fees, assessments, dues, and otherconsiderations received on all contracts of insurance coveringsubjects of insurance resident, located, or to be performedwithin this state. Such insurer shall annually, on or beforethe first dayof July, pay suchtax to thetreasurer of state, as calculated on a form prescribed bythe treasurer of state. If the tax is not paid when due,the tax shall be increased by a penalty of twenty-five percent.An interest charge computed as set forth in section 5725.221 ofthe Revised Code shall be made on the entire sum of the tax pluspenalty, which interest shall be computed from the date thetaxis due until it is paid. The treasurer of stateshall determine andreport all claims for penalties and interest accruing under thissection to the attorney general for collection.

For purposes of this division, payment is consideredmade when it is received by the treasurer of state, irrespectiveof any UnitedStates postal service markingor other stamp or mark indicating the date on which the paymentmay have been mailed.

(H) No contract of insurance effected in this state bymail or otherwise by any such insurer is enforceable bythe insurer.

(1) Insurance obtained pursuant to sections 3905.30 to3905.36 of the Revised Code;

(3) Transactions in this state involving a policysolicited, written, and delivered outside this state coveringonly subjects of insurance not resident, located, or to beperformed in this state at the time of issuance, provided suchtransactions are subsequent to the issuance of the policy;

(4) Transactions in this state involving a policy of grouplife or group accident and sickness insurance solicited, written,and delivered outside this state;

(5) Transactions involving contracts of insuranceindependently procured through negotiations occurring entirelyoutside this state which are reported to the superintendent and with respect towhich the tax provided by section3905.36 of the Revised Code is paid;

(6) An attorney at law acting on behalf of the attorney'sclients in the adjustment of claims or losses;

(7) ~~Any~~ Except as provided in division (G) of this section, any insurance company underwriter issuing contracts ofinsurance to employer insureds or contractsof insurance issued to an employer insured. For purposes of thissection, an "employer insured" is an insured to whom all of thefollowing apply:

(a) The insured procures the insurance of any risk or risksby useof the services of a full-time employee acting as an insurancemanager or buyer or the services of a regularly and continuouslyqualified insurance consultant. As used in division(I)(7)(a)of this section, a "regularly and continuously qualifiedinsurance consultant" does not include any person licensed underChapter 3905. of theRevisedCode.

(b) The insured's aggregate annual premiums for insuranceon allrisks total at least twenty-five thousand dollars; and

Sec. 3901.3814. Sections 3901.38 and 3901.381 to3901.3813of the Revised Code do not apply to the following:

(A) Policies offering coverage that is regulatedunderChapters 3935. and 3937. of the Revised Code;

(B) An employer's self-insurance plan and any of itsadministrators, as defined in section 3959.01 of the Revised Code,to the extent that federal law supersedes,preempts, prohibits, orotherwise precludes the application of anyprovisions of thosesections to the plan and its administrators;

(C)(1) A third-party payer for coverage provided under themedicare ~~plus choice or medicaid programs~~ advantage program operated under TitleXVIII ~~and XIX~~ of the "Social Security Act," 49 Stat. 620 (1935),42 U.S.C.A. 301, as amended;

(2) A third-party payer for coverage provided under the medicaid program operated under Title XIX of the Social Security Act, except that if a federal waiver applied for under section 5101.93 of the Revised Code is granted or the director of job and family services determines that this provision can be implemented without a waiver, sections 3901.38 and 3901.381 to 3901.3813 of the Revised Code apply to claims submitted electronically or non-electronically that are made with respect to coverage of medicaid recipients by health insuring corporations licensed under Chapter 1751. of the Revised Code.

(D) A third-party payer for coverage provided under thetricare program offered by the United States department ofdefense.

Sec. 3901.78. Upon the filing of each of its annualstatements, or as soonthereafter as practicable, thesuperintendent of insurance shall issue to eachinsurance companyor association authorized to do business in this state but not incorporated under the laws of this state acertificate of compliance, an original of which must be published in accordance with section 3901.781 of the Revised Code in every county where the insurance company or association has an agency. Upon request or in any other circumstance that the superintendent of insurance determines to be appropriate, the superintendent may issue ~~other~~ certificates of compliance~~, which certificates are not subject to section 3901.781 of the Revised Code,~~ to insurance companies and associations authorized to do business in this state~~. Certificates of compliance either must~~, which shall be on either forms established by the national association of insurance commissioners or on such other forms as the superintendent may prescribe.

Sec. 3903.14. (A) The superintendent of insurance asrehabilitator may appoint one or more special deputies, who shallhave all the powers and responsibilities of the rehabilitatorgranted under this section, and the superintendent may employsuch clerks and assistants as considered necessary. Thecompensation of the special deputies, clerks, and assistants andall expenses of taking possession of the insurer and ofconducting the proceedings shall be fixed by the superintendent,with the approval of the court and shall be paid out of the fundsor assets of the insurer. The persons appointed under thissection shall serve at the pleasure of the superintendent. Inthe event that the property of the insurer does not containsufficient cash or liquid assets to defray the costs incurred,the superintendent may advance the costs so incurred out of anyappropriation for the maintenance of the department of insurance.Any amounts so advanced for expenses of administration shall berepaid to the superintendent for the use of the department out ofthe first available money of the insurer.

(B) The rehabilitator may take such action as he therehabilitator considers necessary or appropriate to reform and revitalizethe insurer. He The rehabilitator shall have all the powers ofthe directors, officers, andmanagers, whose authority shall be suspended, except as they areredelegated by the rehabilitator. He The rehabilitator shallhave full power to direct and manage, to hire and discharge employees subjectto any contract rights they may have, and to deal with the property andbusiness of the insurer.

(C) If it appears to the rehabilitator that there has beencriminal or tortious conduct, or breach of any contractual orfiduciary obligation detrimental to the insurer by any officer,manager, agent, director, trustee, broker, employee, or otherperson, he the rehabilitator may pursue all appropriate legalremedies on behalf of the insurer.

(D) If the rehabilitator determines that reorganization,consolidation, conversion, reinsurance, merger, or othertransformation of the insurer is appropriate, he therehabilitator shall prepare a plan to effect such changes. Uponapplication of therehabilitator for approval of the plan, and after such notice andhearings as the court may prescribe, the court may either approveor disapprove the plan proposed, or may modify it and approve itas modified. Any plan approved under this section shall be, inthe judgment of the court, fair and equitable to all partiesconcerned. If the plan is approved, the rehabilitator shallcarry out the plan. In the case of a life insurer, the planproposed may include the imposition of liens upon the policies ofthe company, if all rights of shareholders are firstrelinquished. A plan for a life insurer may also proposeimposition of a moratorium upon loan and cash surrender rightsunder policies, for such period and to such an extent as may benecessary.

(E) In the case of a medicaid health insuring corporation that has posted a bond or deposited securities in accordance with section 1751.271 of the Revised Code, the plan proposed under division (D) of this section may include the use of the proceeds of the bond or securities to first pay the claims of contracted providers for covered health care services provided to medicaid recipients, then next to pay other claimants with any remaining funds, consistent with the priorities set forth in sections 3903.421 and 3903.42 of the Revised Code.

(F) The rehabilitator shall have the power under sections3903.26 and 3903.27 of the Revised Code to avoid fraudulenttransfers.

(1) "Contracted provider" means a provider with a contract with a medicaid health insuring corporation to provide covered health care services to medicaid recipients.

(2) "Medicaid recipient" means a person eligible for assistance under the medicaid program operated pursuant to Chapter 5111. of the Revised Code.

Sec. 3903.42. The priority of distribution of claims fromthe insurer's estate shall be in accordance with the order inwhich each class of claims is set forth in this section. Everyclaim in each class shall be paid in full or adequate fundsretained for such payment before the members of the next classreceive any payment. No subclasses shall be established withinany class. The order of distribution of claims shall be:

(A) Class 1. The costs and expenses of administration,including but not limited to the following:

(1) The actual and necessary costs of preserving orrecovering the assets of the insurer;

(6) The reasonable expenses of a guaranty association orforeign guaranty association in handling claims.

(B) Class 2. All claims under policies for lossesincurred, including third party claims, all claims of contracted providers against a medicaid health insuring corporation for covered health care services provided to medicaid recipients, all claims against theinsurer for liability for bodily injury or for injury to ordestruction of tangible property that are not under policies, andall claims of a guaranty association or foreign guarantyassociation. All claims under life insurance and annuitypolicies, whether for death proceeds, annuity proceeds, orinvestment values, shall be treated as loss claims. That portionof any loss, indemnification for which is provided by otherbenefits or advantages recovered by the claimant, shall not beincluded in this class, other than benefits or advantagesrecovered or recoverable in discharge of familial obligations ofsupport or by way of succession at death or as proceeds of lifeinsurance, or as gratuities. No payment by an employer to anemployee shall be treated as a gratuity. Claims undernonassessable policies for unearned premium or other premiumrefunds.

(D) Class 4. Debts due to employeesfor services performed to the extent that they do not exceed one thousanddollars and represent payment for services performed within one year beforethe filing of the complaint for liquidation. Officers and directors shall notbe entitled to the benefit of this priority. Such priority shall be in lieuof any other similar priority that may be authorized by law as to wages orcompensation of employees.

(F) Class 6. Claims of any state or local government. Claims, includingthose of any state or local governmental body for a penalty or forfeiture,shall be allowed in this class only to the extent of the pecuniary losssustained from the act, transaction, or proceeding out of which the penalty orforfeiture arose, with reasonable and actual costs occasioned thereby. Theremainder of such claims shall be postponed to the class ofclaims under division (I) of this section.

(G) Class 7. Claims filed late or any other claims other than claims underdivisions (H) and (I) of this section.

(H) Class 8. Surplus or contribution notes, or similarobligations, and premium refunds on assessable policies. Payments to membersof domestic mutual insurance companies shall be limited in accordance withlaw.

If any provision of this section or the application of any provisionof this section to any person or circumstance is held invalid, the invaliditydoes not affect other provisions or applications of this section, and to thisend the provisions are severable.

(J) As used in sections 3903.42 and 3903.421 of the Revised Code, "contracted provider" and "medicaid recipient" have the same meanings as in secion 3903.14 of the Revised Code.

Sec. 3903.421. (A) Notwithstanding section 3903.42 of the Revised Code, both of the following apply to medicaid health insuring corporation performance bonds and securities:

(1) Proceeds from the bond issued or securities held pursuant to section 1751.271 of the Revised Code that have been paid to or deposited with the department of insurance shall be considered special deposits for purposes of satisfying claims of contracted providers for covered health care services provided to medicaid recipients;

(2) Contracted providers that have claims against a health insuring corporation for covered health care services provided to medicaid recipients shall be given first priority against the proceeds of the bond or securities held pursuant to section 1751.27 of the Revised Code, to the exclusion of other creditors, except as provided for in this section.

(B) If the amount of the proceeds of the bond or securities are not sufficient to satisfy all of the allowed claims of contracted providers for covered health care services provided to medicaid recipients, payment shall proceed as follows:

(1) Contracted providers shall share in the proceeds of the bond or securities pro rata based on the allowed amount of the providers' claims against the health insuring corporation for covered health care services provided to medicaid recipients;

(2) After payments are made under division (B)(1) of this section, the net unpaid balance of the claims of contracted providers shall be allowed for payment from the general assets of the estate in accordance with the priorities set forth in section 3903.42 of the Revised Code.

(C) If the amount of the proceeds of the bond or securities exceeds the allowed claims of contracted providers for covered health care services provided to medicaid recipients, the excess amount shall be considered a general asset of the health insuring corporation's estate to be distributed to other claimants in accordance with the priorities set forth in section 3903.42 of the Revised Code.

Sec. 3905.04. (A) Except as otherwise provided in section3905.041 of the Revised Code, a resident individual applying foran insurance agent license for any of the lines of authoritydescribed in division (B) of this section shall take a writtenexamination. The examination shall test the knowledge of theindividual with respect to the lines of authority for whichapplication is made, the duties and responsibilities of aninsurance agent, and the insurance laws of this state. Beforeadmission to the examination, each individual shall pay thenonrefundable fee required under division ~~(D)~~(C) of section 3905.40of the Revised Code.

(B) The examination described in division (A) of thissection shall be required for the following lines of authority:

(1) Any of the lines of authority set forth in divisions(B)(1) to (6) of section 3905.06 of the Revised Code;

(3) Surety bail bonds as provided in sections 3905.83 to3905.95 of the Revised Code;

(C) An individual shall not be permitted to take theexamination described in division (A) of this section unless oneor both of the following apply:

(1) The individual has earned a bachelor's or associate'sdegree in insurance from an accredited institution.

(2) The individual has completed, for each line ofauthorityfor which the individual has applied, twenty hours ofstudy in aprogram of insurance education approved by thesuperintendent, inconsultation with the insurance agent educationadvisory council,under criteria established by thesuperintendent. Division (C) ofthis section does not applywithrespect to title insurance or anyother line of authoritydesignated by the superintendent.

(D) An individual who fails to appear for an examination asscheduled, or fails to pass an examination, may reapply for theexamination if the individual pays the required fee and submitsany necessary forms prior to being rescheduled for theexamination.

(E)(1) The superintendent may, in accordance with Chapter119. of the Revised Code, adopt any rule necessary for theimplementation of this section.

(2) The superintendent may make any necessaryarrangements,including contracting with an outside testingservice, for theadministration of the examinations and thecollection of the feesrequired by this section.

Sec. 3905.36. ~~Every~~ (A) Except as provided in divisions (B) and (C) of this section, every insured association, company,corporation, or other person that enters, directly orindirectly,into anyagreements with any insurance company, association,individual,firm, underwriter, or Lloyd, not authorized to dobusiness inthis state, whereby the insured shall procure,continue, or renewcontracts of insurance covering subjects ofinsurance resident,located, or to be performed within this state,with suchunauthorized insurance company, association, individual,firm,underwriter, or Lloyd, for which insurance there is agrosspremium,membership fee, assessment, dues, or other considerationchargedor collected, shall annually, on or before thethirty-first dayofJanuary, returnto the superintendent ofinsurance astatementunder oath showing the name and address ofthe insured,name andaddress of the insurer, subject of theinsurance,generaldescription of the coverage, and amount ofgross premium, fee,assessment, dues, or other consideration forsuch insurance forthe preceding twelve-month period and shall atthe same time payto the treasurer of state a tax of five per centof suchgross premium,fee, assessment, dues, or otherconsideration,after a deduction for return premium, if any, ascalculated on aform prescribed by the treasurer of state. Alltaxescollectedunder this section by the treasurer ofstate shallbe paidintothe general revenue fund. If the tax is not paidwhendue,thetax shall be increased by a penalty of twenty-fivepercent. Aninterest charge computed as set forthin section5725.221 of theRevised Code shall be made on theentire sum ofthe tax pluspenalty, which interest shall becomputed from thedate the tax isdue until it is paid. For purposes of thissection, payment isconsidered made when it is received by thetreasurer of state,irrespective of any UnitedStates postalservice markingor otherstamp or mark indicating the date onwhich the paymentmay havebeen mailed. ~~This~~

~~(A) Insurance obtained pursuant to sections 3905.30 to3905.35 of the Revised Code;~~

~~(B)~~(1) Transactions in this state involving a policysolicited,written, and delivered outside this state coveringonly subjectsof insurance not resident, located, or to beperformed in thisstate at the time of issuance, provided suchtransactions aresubsequent to the issuance of the policy;

~~(C)~~(2) Attorneys-at-law acting on behalf of their clients inthe adjustment of claims or losses;

(D) Any insurance company underwriter issuing contracts ofinsurance to employer insureds or contractsof insurance issued toan employer insured. For purposes of thissection an "employerinsured" is an insured:

(1) Who procures the insurance of any risk or risks by useof the services of a full-time employee acting as an insurancemanager or buyer or the services of a regularly and continuouslyqualified insurance consultant. As used in division(D)(1) ofthis section,a "regularly and continuously qualified insuranceconsultant" does not include any person licensed underChapter3905. of theRevisedCode.

~~(2) Whose aggregate annual premiums for insurance on allrisks total at least twenty-five thousand dollars; and~~

(3) Transactions involving policies issued by a captive insurer. For this purpose, a "captive insurer" means any of the following:

(a) An insurer owned by one or more individuals or organizations, whose exclusive purpose is to insure risks of one or more of the parent organizations or individual owners and risks of one or more affiliates of the parent organizations or individual owners;

(b) In the case of groups and associations, insurers owned by the group or association whose exclusive purpose is to insure risks of members of the group or association and affiliates of the members;

(c) Other types of insurers, licensed and operated in accordance with the captive insurance laws of their jurisdictions of domicile and operated in a manner so as to self-insure risks of their owners and insureds.

(4) Professional or medical liability insurance procured by a hospital organized under Chapter 3701. of the Revised Code.

~~Each~~ (C) In transactions that are subject to sections 3905.30 to 3905.35 of the Revised Code, each person licensed under section 3905.30 of theRevisedCode shall pay to the treasurerof state, on or before thethirty-first day ofJanuary of each year, five percent of thebalance of the gross premiums charged for insuranceplaced orprocured under the license after a deduction forreturn premiums,as reported on a form prescribed by thetreasurer of state. Thetax shall be collected from the insuredby the surplus line brokerwho placed or procured the policy ofinsurance at the time thepolicy is delivered to the insured. No license issued undersection 3905.30 of theRevisedCode shall be renewed untilpaymentis made.If the tax is not paid when due, the tax shall beincreased by a penalty of twenty-five per cent. An interestcharge computed as set forth in section 5725.221 of the RevisedCode shall be made on the entire sum of the tax plus penalty,which interest shall be computed from the date the tax is dueuntil it is paid. For purposes of this section,payment isconsidered madewhen it is received by thetreasurer of state,irrespective of anyUnitedStates postal service markingor otherstamp or markindicating the date on which the paymentmay havebeen mailed.

Sec. 3905.40. There shall be paid to thesuperintendent ofinsurance the following fees:

(1) For filing a copy of its charter or deed ofsettlement,two hundred fifty dollars;

(2) For filing each statement, ~~twenty-five~~ one hundred seventy-five dollars;

(3) For each certificate of authority or license, one hundred seventy-five, and for eachcertified copy thereof, five dollars;

(4) For each copy of a paper filed inthesuperintendent'soffice, twentycents per page;

(5) For issuing certificates of deposits or certifiedcopiesthereof, five dollars for the first certificate or copyand onedollar for each additional certificate or copy;

(6) For issuing certificates of compliance or certifiedcopies thereof, ~~twenty~~ sixty dollars;

(7) For affixing the seal of office and certifyingdocuments, other than those enumerated herein, two dollars.

(B) Each domestic life insurance company doing business in thisstateshall pay for annual valuation of its policies, one cent oneveryone thousand dollars of insurance.

(C) Each foreign insurance company doing business in thisstate shall pay for making and forwarding annually, semiannually,and quarterly the interest checks and coupons accruing upon bondsand securities deposited, fifty dollars each year on each onehundred thousand dollars deposited.

~~(D)~~ Each applicant for licensure as aninsuranceagentshallpay tendollars before admission to any examination requiredbythesuperintendent. Such fee shall not be paid bytheappointing insurance company.

~~(E)~~(D) Each domestic mutual life insurance company shall payfor verifying that any amendment to its articles of incorporationwas regularly adopted, two hundred fifty dollars with eachapplication for verification. Any such amendment shall beconsidered to have been regularly adopted when approved by theaffirmative vote of two-thirds of the policyholders present inperson or by proxy at any annual meeting of policyholders or at aspecial meeting of policyholders called for that purpose.

Sec. 3923.27. No policy of sickness and accident insurancedelivered, issued for delivery, or renewed in this state after~~the effective date of this section~~ August 26, 1976,includingboth individual and group policies, that provides hospitalizationcoverage for mental illness shall exclude such coverage for thereason that the insured is hospitalized in an institution orfacility receiving tax support from the state, any municipalcorporation, county, or joint county board, whether suchinstitution or facility is deemed charitable or otherwise,provided the institution or facility or portion thereof is fullyaccredited by the joint commission on accreditation of hospitalsor certified under Titles XVIII and XIX of the "Social SecurityAct of 1935," 79 Stat. 291, 42 U.S.C.A. 1395, as amended. Theinsurance coverage shall provide payment amounting to the lesserof either the full amount of the statutory charge for the cost ofthe services pursuant to ~~division (B)(8) of section 5121.04~~ section 5121.33 ofthe Revised Code or the benefits payable for the services underthe applicable insurance policy. Insurance benefits for thecoverage shall be paid so long as patients and their liablerelatives retain their statutory liability pursuant to ~~therequirements of sections 5121.01 to 5121.10~~ section 5121.33 of the Revised Code.Only that portion or per cent of the benefits shall be payablethat has been assigned, or ordered to be paid, to the state orother appropriate provider for services rendered by theinstitution or facility.

Sec. 4112.12. (A) There is hereby created the commissionon African-American males, which shall consist of not more thanforty-one members as follows: the directors or their designeesof the departments of health, development, alcohol and drugaddiction services, job and family services,rehabilitation andcorrection, mental health, and youth services; theadjutant general or the adjutant general's designee; theequal employment opportunity officer of the department of administrativeservicesor the equal employment opportunity officer's designee; theexecutive director or the executive director's designee ofthe Ohio civil rights commission; the executive director or the executivedirector'sdesignee of the~~office~~ division of criminal justice services in the department of public safety; the superintendent of publicinstruction; the chancellor or the chancellor's designee ofthe Ohio board ofregents; two members of the house of representatives appointed bythe speaker of the house of representatives; three members of thesenate appointed by the president of the senate; and not morethan twenty-three members appointed by the governor. The membersappointed by the governor shall include an additional member of thegovernor's cabinet and at least onerepresentative of each of the following: the nationalassociation for the advancement of colored people; the urbanleague; an organization representing black elected officials; anorganization representing black attorneys; the black religiouscommunity; the black business community; the nonminority businesscommunity; and organized labor; at least one black medicaldoctor, one black elected member of a school board, and one blackeducator; and at least two representatives of local privateindustry councils. The remaining members that may be appointedby the governor shall be selected from elected officials, civicand community leaders, and representatives of the employment,criminal justice, education, and health communities.

(B) Terms of office shall be for three years,witheach term ending on the same day of the same month as did theterm that it succeeds. Each member shall hold office from thedate of appointment until the end of the term for whichthe member was appointed. Members may be reappointed. Vacancies shallbe filled in the manner provided for original appointments. Anymember appointed to fill a vacancy occurring prior to theexpiration date of the term for which the member'spredecessor was appointed shall hold office as a member for the remainder ofthat term. A member shall continue in office subsequent to theexpiration date of the member's term until themember's successor takes office oruntil a period of sixty days has elapsed, whichever occurs first.

(C) Members of the commission and members of subcommitteesappointed under division (B) of section 4112.13 of the RevisedCode shall not be compensated, but shall be reimbursed for theirnecessary and actual expenses incurred in the performance oftheir official duties.

(D)(1) The Ohio civil rights commission shallserve as the commission on African-American males'fiscalagent and shall perform all of the following services:

(a) Prepare and process payroll and other personnel documentsthat the commission on African-American males approves;

(b) Maintain ledgers of accounts and reports of accountbalances, and monitor budgets and allotment plans in consultation withthe commission on African-American males;

(c) Perform other routine support services that theexecutivedirector of the Ohio civil rights commission or the executivedirector's designee and the Commission on African-American malesor its designee consider appropriate to achieve efficiency.

(2) The Ohio civil rights commission shall not approve anypayroll or other personnel-related documents or any biennialbudget, grant, expenditure, audit, or fiscal-related documentwithout the advice and consent of the commission onAfrican-Americanmales.

(3) The Ohio civil rights commission shall determine fees to becharged to the commission on African-American males forservices performed under this division, which shall be in proportion to theservices performed for the commission on African-Americanmales.

(a) Sole authority to draw funds for any federalprogram inwhich the commission is authorized to participate;

(b) Sole authority to expend funds from accounts for programsand any other necessary expenses the commission onAfrican-Americanmales may incur;

(c) The duty to cooperate with the Ohio civil rights commissionto ensure that the Ohio civil rights commission is fully apprisedof all financial transactions.

(E) The commission on African-American males shall appoint anexecutive director, who shall be in the unclassified civilservice. The executive director shall supervise the commission'sactivities and report to the commission on the progress of thoseactivities. The executive director shall do all things necessaryfor the efficient and effective implementation of the duties ofthe commission.

The responsibilities assigned to the executive director do notrelieve the members of the commission from final responsibility for theproper performance of the requirements of this division.

(1) Employ, promote, supervise, and remove all employees, asneeded, in connection with the performance of its duties under thissection;

(3) Acquire facilities, equipment, and supplies necessary tohouse the commission, its employees, and files and records under itscontrol, and to discharge any duty imposed upon it by law. The expense ofthese acquisitions shall be audited and paid for in the samemanner as other state expenses.

(4) Prepare and submit to the office of budget and management abudget for each biennium in accordance with sections 101.55 and 107.03 of the Revised Code. The budget submitted shall cover the costs ofthe commission and its staff in the discharge of any duty imposed upon thecommission by law. The commission shall pay its ownpayroll and other operating expenses from appropriation itemsdesignated by the general assembly. The commission shall notdelegate any authority to obligate funds.

(5) Establish the overall policy and management of thecommission in accordance with this chapter;

(7) Pay fees owed to the Ohio civil rights commission underdivision (D) of this section from the commission onAfrican-American males' general revenue fund or from anyother fund from which the operatingexpenses of the commission on African-American males arepaid. Any amounts set aside for a fiscal year for the payment of such fees shall beused only for the services performed for thecommission on African-American males by the Ohiocivil rights commission in that fiscal year.

(2) Establish, change, or abolish positions, and assign andreassign duties and responsibilities of any employee of the commissionon African-American males as necessary to achieve the mostefficient performance of its functions.

Sec. 4115.32. (A) ~~There~~ Subject to section 4115.36 of the Revised Code, there is hereby created the statecommittee for the purchase of products and services provided bypersonswith severe disabilities. The committee shallbe composedex officio of thefollowing persons, or their designees:

(1) The directors ofadministrative services, mental health,mental retardationand developmental disabilities, transportation,natural resources, and commerce;

(2) The administrators of therehabilitation servicescommission and the bureau of workers' compensation;

(4) One representative of apurchasing department of apolitical subdivision who isdesignated by the governor.

The governor shall appoint two representativesof a qualifiednonprofit agency for persons with severe disabilities,and aperson with a severe disability to the committee.

(B) Within thirty days after September 29, 1995, thegovernor shallappoint therepresentatives of a qualifiednonprofit agency for persons with severe disabilities to thecommittee for aterm ending August 31, 1996. Thereafter, termsforsuch representatives are forthree years, each term endingonthe same day of the same month of theyear as did the term that itsucceeds. Each committee member shallserve from the dateof themember's appointment until the end of the term for which themember wasappointed. Vacancies shall be filled in the samemanner provided for originalappointments. Any member appointedto fill a vacancy occurring prior to theexpiration date of theterm for which the member's predecessor was appointedshall serveas a member for the remainder of that term. A member shallservesubsequent to the expiration of themember's term and shallcontinue to serveuntil the member's successor takes office.

(C) Members of the committee shall serve withoutcompensation. Except as otherwise provided in divisions(C)(1)and (2) of this section, members shall be reimbursed foractualand necessary expenses, including travel expenses, incurredwhileaway from their homes or regular places of business and incurredwhileperforming services for the committee.

(1) The members listed in divisions (A)(1) to (3) of thissection, or their designees, shall not be reimbursed for anyexpenses.

(2) No member of the committee who is entitled to receivereimbursementfor the performance of services for the committeefrom another agency orentity shall receive reimbursement from thecommittee.

(D) The committee shall elect from among its members achairperson. The committee may request from any agency of thestate, political subdivision, or instrumentality of the stateanyinformation necessary to enable it to carry out the intent ofsections4115.31 to 4115.35 of the Revised Code. Upon requestofthe committee, the agency, subdivision, or instrumentality shallfurnishthe information to thechairperson of the committee.

(E) The committee shall not later than one hundred eightydays following the close of each fiscal year transmit to thegovernor, the general assembly, and each qualifiednonprofitagency for persons with severe disabilities a reportthat includesthe names of the committee members serving during the precedingfiscal year, the dates of committee meetings in that year, andanyrecommendations for changes in sections 4115.31 to 4115.35 oftheRevised Code that the committee determines are necessary.

(F) The director of ~~mental retardation and developmentaldisabilities~~ administrative services shall designate a subordinate to act as executivedirector of the committee and shall furnish otherstaff andclerical assistance, office space, and supplies required by thecommittee.

Sec. 4115.34. (A) If Except as provided in section 4115.36 of the Revised Code, if any state agency, politicalsubdivision, or instrumentality of the state intends to procureany product or service, it shall determine whether theproduct orservice is on the procurement list published pursuant to section4115.33 of the Revised Code; and it shall, in accordance withrules of the state committee for the purchase of products andservices provided by persons with severe disabilities, procure suchproduct or service at the fair market price established by thecommittee froma qualified nonprofit agency for persons with severe disabilities, ifthe product or service is on theprocurement list and is available within the period required bythat agency, subdivision, or instrumentality, notwithstandingany law requiring the purchase ofproducts and services on a competitive bid basis. Sections4115.31 to 4115.35 of the Revised Code do not apply if the products orservices are available for procurementfrom any state agency, political subdivision, or instrumentality ofthe state and procurement from such agency, subdivision,or instrumentality is required under any law ineffect on August 13, 1976.

(B) The committee and any state agency, politicalsubdivision, or instrumentality of the state may enter intocontractual agreements, cooperative working relationships, orother arrangements determined necessary for effectivecoordination and efficient realization of the objectives ofsections 4115.31 to 4115.35 of the Revised Code and any other lawrequiring procurement of products or services from anystateagency, political subdivision, or instrumentality of the state.

(C) Notwithstanding any other section of the Revised Code,or any appropriations act, that may require a state agency,political subdivision, or instrumentality of the state topurchase supplies, services, or materials by means of acompetitive bid procedure, state agencies, politicalsubdivisions, or instrumentalities of the state need not utilizethe required bidding procedures if the supplies, services, ormaterials are to be purchased from a qualified nonprofit agencypursuant to sections 4115.31 to 4115.35 of the Revised Code.

Sec. 4115.36. Sections 4115.31 to 4115.35 of the Revised Code have no effect after the director of administrative services abolishes the state committee for the purchase of products and services provided by persons with severe disabilities. Upon abolishment of the committee, sections 125.60 to 125.6012 of the Revised Code shall govern the procurement of products and services provided by persons with work-limiting disabilities from qualified nonprofit agencies.

(1) Form, join, assist, or participate in, or refrain fromforming, joining, assisting, or participating in, except asotherwise provided in Chapter 4117. of the Revised Code, anyemployee organization of their own choosing;

(2) Engage in other concerted activities for the purposeof collective bargaining or other mutual aid and protection;

(4) Bargain collectively with their public employers todetermine wages, hours, terms and other conditions of employmentand the continuation, modification, or deletion of an existingprovision of a collective bargaining agreement, and enter intocollective bargaining agreements;

(5) Present grievances and have them adjusted, without theintervention of the bargaining representative, as long as theadjustment is not inconsistent with the terms of the collectivebargaining agreement then in effect and as long as the bargainingrepresentatives have the opportunity to be present at theadjustment.

(B) Persons on active duty or acting in any capacity asmembers of the organized militia do not have collectivebargaining rights.

(C) Except as provided in division (D) of this section, nothing in Chapter 4117. of the Revised Code prohibitspublic employers from electing to engage in collectivebargaining, to meet and confer, to hold discussions, or to engage in any other form ofcollective negotiations with public employees who are not subjectto Chapter 4117. of the Revised Code pursuant to division (C) ofsection 4117.01 of the Revised Code.

(D) A public employer shall not engage in collective bargaining or other forms of collective negotiations with the employees of county boards of elections referred to in division (C)(12) of section 4117.01 of the Revised Code.

(E)(1) Employees of public school may bargain collectively for health care benefits; however, all health care benefits shall be provided through school employees health care board medical plans, in accordance with section 9.901 of the Revised Code. If a school district provides its employees with health care benefits pursuant to collective bargaining, the employees shall be permitted to choose a plan option from among the school employees health care board plans agreed to during collective bargaining.

(2) During collective bargaining, employees of public schools may agree to pay a higher percentage of the premium for health benefit coverage under the plans designed by the school employees health care board pursuant to section 9.901 of the Revised Code than the percentage designated as the employees' contribution level by the board. A collective bargaining agreement, however, shall not permit the employees to contribute a lesser percentage of the premium than that set as the employees' contribution level by the school employees health care board, unless, in so doing, the participating school board is able to remain in compliance with the aggregate goal set pursuant to division (G)(3) of section 9.901 of the Revised Code.

Sec. 4117.08. (A) All matters pertaining to wages, hours,or terms and other conditions of employment and the continuation,modification, or deletion of an existing provision of acollective bargaining agreement are subject to collectivebargaining between the public employer and the exclusiverepresentative, except as otherwise specified in this section and division (E) of section 4117.03 of the Revised Code.

(B) The conduct and grading of civil service examinations,the rating of candidates, the establishment of eligible listsfrom the examinations, and the original appointments from theeligible lists are not appropriate subjects for collectivebargaining.

(C) Unless a public employer agrees otherwise in acollective bargaining agreement, nothing in Chapter 4117. of theRevised Code impairs the right and responsibility of each publicemployer to:

(1) Determine matters of inherent managerial policy whichinclude, but are not limited to areas of discretion or policysuch as the functions and programs of the public employer,standards of services, its overall budget, utilization oftechnology, and organizational structure;

(3) Maintain and improve the efficiency and effectivenessof governmental operations;

(4) Determine the overall methods, process, means, orpersonnel by which governmental operations are to be conducted;

(5) Suspend, discipline, demote, or discharge for justcause, or lay off, transfer, assign, schedule, promote, or retainemployees;

(9) Take actions to carry out the mission of the publicemployer as a governmental unit.

The employer is not required to bargain on subjectsreserved to the management and direction of the governmental unitexcept as affect wages, hours, terms and conditions ofemployment, and the continuation, modification, or deletion of anexisting provision of a collective bargaining agreement. Apublic employee or exclusive representative may raise alegitimate complaint or file a grievance based on the collectivebargaining agreement.

Sec. 4117.10. (A) An agreement between a public employerand an exclusive representative entered into pursuant to thischapter governs the wages, hours, and terms and conditions ofpublic employment covered by the agreement. If the agreementprovides for a final and binding arbitration of grievances,public employers, employees, and employee organizations aresubject solely to that grievance procedure and the statepersonnel board of review or civil service commissions have nojurisdiction to receive and determine any appeals relating tomatters that were the subject of a final and binding grievanceprocedure. Where no agreement exists or where an agreement makesno specification about a matter, the public employer and publicemployees are subject to all applicable state or local laws orordinances pertaining to the wages, hours, and terms andconditions of employment for public employees. Laws pertainingto civil rights, affirmative action, unemployment compensation,workers' compensation, the retirement of public employees, andresidency requirements, the minimum educational requirementscontained in the Revised Code pertaining to public educationincluding the requirement of a certificate by the fiscal officerof a school district pursuant to section 5705.41 of the RevisedCode, the provisions of division (A) of section 124.34 of the Revised Codegoverning the disciplining of officers and employees who have been convictedof a felony, and the minimum standards promulgated by the stateboard ofeducation pursuant to division (D) of section 3301.07 of theRevised Code prevail over conflicting provisions of agreementsbetween employee organizations and public employers. The lawpertaining to the leave of absence and compensation providedunder section 5923.05 of the Revised Code prevails over anyconflicting provisions of such agreements if the terms of theagreement contain benefits which are less than those contained inthat section or the agreement contains no such terms and thepublic authority is the state or any agency, authority,commission, or board of the state or if the public authority isanother entity listed in division (B) of section 4117.01 of theRevised Code that elects to provide leave of absence andcompensation as provided in section 5923.05 of the Revised Code. Except for sections 306.08, 306.12, 306.35, and 4981.22 of theRevised Code and arrangements entered into thereunder, andsection 4981.21 of the Revised Code as necessary to comply withsection 13(c) of the "Urban Mass Transportation Act of 1964," 87Stat. 295, 49 U.S.C.A. 1609(c), as amended, and arrangementsentered into thereunder, this chapter prevails over any and allother conflicting laws, resolutions, provisions, present orfuture, except as otherwise specified in this chapter or asotherwise specified by the general assembly. Nothing in thissection prohibits or shall be construed to invalidate theprovisions of an agreement establishing supplemental workers'compensation or unemployment compensation benefits or exceedingminimum requirements contained in the Revised Code pertaining topublic education or the minimum standards promulgated by thestate board of education pursuant to division (D) of section3301.07 of the Revised Code.

(B) The public employer shall submit a request for fundsnecessary to implement an agreement and for approval of any othermatter requiring the approval of the appropriate legislative bodyto the legislative body within fourteen days of the date on whichthe parties finalize the agreement, unless otherwise specified,but if the appropriate legislative body is not in session at thetime, then within fourteen days after it convenes. Thelegislative body must approve or reject the submission as awhole, and the submission is deemed approved if the legislativebody fails to act within thirty days after the public employersubmits the agreement. The parties may specify that thoseprovisions of the agreement not requiring action by a legislativebody are effective and operative in accordance with the terms ofthe agreement, provided there has been compliance with division(C) of this section. If the legislative body rejects thesubmission of the public employer, either party may reopen all orpart of the entire agreement.

As used in this section, "legislative body" includes ~~thegeneral assembly,~~ the governing board of a municipal corporation,school district, college or university, village, township, orboard of county commissioners or any other body that hasauthority to approve the budget of their public jurisdiction and, with regard to the state, "legislative body" means the controlling board.

(C) The chief executive officer, or the chief executiveofficer's representative, ofeach municipal corporation, the designated representative of theboard of education of each school district, college oruniversity, or any other body that has authority to approve thebudget of their public jurisdiction, the designatedrepresentative of the board of county commissioners and of eachelected officeholder of the county whose employees are covered bythe collective negotiations, and the designated representative ofthe village or the board of township trustees of each township isresponsible for negotiations in the collective bargainingprocess; except that the legislative body may accept or reject aproposed collective bargaining agreement. When the matters aboutwhich there is agreement are reduced to writing and approved bythe employee organization and the legislative body, the agreementis binding upon the legislative body, the employer, and theemployee organization and employees covered by the agreement.

(D) There is hereby established an office of collectivebargaining in the department of administrative services for thepurpose of negotiating with and entering into written agreementsbetween state agencies, departments, boards, and commissions andthe exclusive representative on matters of wages, hours, termsand other conditions of employment and the continuation,modification, or deletion of an existing provision of acollective bargaining agreement. Nothing in any provision of lawto the contrary shall be interpreted as excluding the bureau ofworkers' compensation and the industrial commission from thepreceding sentence. This office shall not negotiate on behalf ofother statewide elected officials or boards of trustees of stateinstitutions of higher education who shall be considered asseparate public employers for the purposes of this chapter;however, the office may negotiate on behalf of these officials ortrustees where authorized by the officials or trustees. Thestaff of the office of collective bargaining are in theunclassified service. The director of administrative servicesshall fix the compensation of the staff.

(1) Assist the director in formulating management'sphilosophy for public collective bargaining as well as planningbargaining strategies;

(2) Conduct negotiations with the exclusiverepresentatives of each employee organization;

(3) Coordinate the state's resources in all mediation,fact-finding, and arbitration cases as well as in all labordisputes;

(4) Conduct systematic reviews of collective bargainingagreements for the purpose of contract negotiations;

(5) Coordinate the systematic compilation of data by allagencies that is required for negotiating purposes;

(6) Prepare and submit an annual report and other reportsas requested to the governor and the general assembly on theimplementation of this chapter and its impact upon stategovernment.

Sec. 4117.103. Notwithstanding any provision of section 4117.08 or 4117.10 of the Revised Code to the contrary, no agreement entered into under this chapter on or after the effective date of this section shall prohibit a school district board of education from utilizing volunteers to assist the district and its schools in performing any of their functions, other than functions for which a license, permit, or certificate issued by the state board of education under section 3301.074 or Chapter 3319. of the Revised Code or a certificate issued under division (A) or (B) of section 3327.10 of the Revised Code is required.

Sec. 4117.24. The training ~~and~~, publications, and grants fund is hereby created in thestate treasury. The state employment relations board shall deposit into thetraining ~~and~~, publications, and grants fund all ~~payments~~ moneys received from the following sources:

(A) Payments received by the board for copiesof documents, rulebooks, and other publications; ~~fees~~

(D) Moneys received from grants, donations, awards, bequests, gifts, reimbursements, and similar funds;

(E) Reimbursement received for professional services and expenses related to professional services;

(F) Funds received to support the development of labor relations services and programs. The stateemployment relations board shall use all moneys deposited into the training~~and~~, publications, and grants fund to defray the costs of furnishing and making availablecopies of documents, rulebooks, and other publications; the costs of planning,organizing, and conducting training seminars; the costs associated with grant projects, innovative labor-management cooperation programs, research projects related to these grants and programs, and the advancement in professionalism of public sector relations; the professional development of board employees; and the costs of compilingclearinghouse data.

The board may seek, solicit, apply for, receive, and accept grants, gifts, and contributions of money, property, labor, and other things of value to be held for, used for, and applied to only the purpose for which the grants, gifts, and contributions are made, from individuals, private and public corporations, the United States or any agency thereof, the state or any agency thereof, and any political subdivision of the state, and may enter into any contract with any such public or private source in connection therewith to be held for, used for, and applied to only the purposes for which such grants are made and contracts are entered into, all subject to and in accordance with the purposes of this chapter. Any money received from the grants, gifts, contributions, or contracts shall be deposited into the training, publications, and grants fund.

Sec. 4121.12. (A) There is hereby created the workers'compensation oversight commission consisting of ~~nine~~ eleven members, ofwhich members the governor shall appoint five with the advice and consent ofthe senate. Of the five members the governor appoints, two shall beindividuals who, onaccount of their previous vocation, employment, or affiliations,can be classed as representative of employees, at least one of whom isrepresentative of employees who are members of an employee organization; twoshall be individuals who, on account of their previous vocation, employment,or affiliations, can be classed as representative of employers, one of whomrepresents self-insuring employers and one of whom has experience as anemployer in compliance with section 4123.35 of the Revised Codeother than a self-insuring employer, and one of those two representatives alsoshall represent employers whose employees are not members of an employeeorganization; and one shall represent the public and also be an individualwho, on account of the individual's previous vocation, employment, oraffiliations, cannot be classed as either predominantly representative ofemployees or of employers. Thegovernor shall select the chairperson of thecommission who shall serve as chairperson at the pleasure of thegovernor. No more than three membersappointed by the governor shall belong to or be affiliated with the samepolitical party.

Each of these five members shall have at least three years'experience in the field of insurance, finance, workers'compensation, law, accounting, actuarial, personnel, investments,or data processing, or in the management of an organization whosesize is commensurate with that of the bureau of workers'compensation. At least one of these five members shall be anattorney licensed under Chapter 4705. of the Revised Code to practicelaw in this state.

(B) Of the initial appointments made to thecommission, the governor shall appoint one member who representsemployees to a term ending one year after September 1,1995, one member whorepresents employers to a term ending twoyears after September 1, 1995, the member whorepresents the public to a termending three years after September 1, 1995, one member who representsemployees to a term ending four years after September 1,1995, and one member who represents employers to a termending five years after September 1, 1995. Thereafter, terms of office shallbe for ~~five~~ three years, with each term ending on the same day of the samemonth as did the term that it succeeds. Each member shall hold office fromthe date of the member's appointment until the end of the term forwhich themember was appointed.

The governor shall not appoint any person to more than twofull terms of office on the commission. This restriction doesnot prevent the governor from appointing a person to fill avacancy caused by the death, resignation, or removal of acommission member and also appointing that person twice to fullterms on the commission, or from appointing a person previouslyappointed to fill less than a full term twice to full terms onthe commission. Any member appointed to fill a vacancy occurringprior to the expiration date of the term for which themember's predecessor was appointed shall hold office as a member for theremainder of that term. A member shall continue in office subsequent to theexpiration date of the member's term until a successor takesoffice or until a period of sixty days has elapsed, whicheveroccurs first.

(C) In making appointments to the commission, the governor shallselect the members from the list of namessubmitted by the workers' compensation oversight commissionnominating committee pursuant to this division. Within fourteendays after the governor calls the initial meeting of the nominating committeepursuant to division (C) of section 4121.123 of the Revised Code, thenominating committee shall submit to the governor, for the initialappointments, a list containing four separate names for each of the members onthe commission. Withinfourteen days after the submission of the list, the governorshall appoint individuals from the list.

For the appointment of the member who is representative of employees whoare members of an employee organization, both for initial appointments and forthe filling of vacancies, the list of four names submitted by the nominatingcommittee shall be comprised of four individuals who are members of theexecutive committee of the largest statewide labor federation.

Thereafter, within sixty days after a vacancyoccurring as a result of the expiration of a term and withinthirty days after other vacancies occurring on the commission, the nominatingcommittee shall submit a list containing four names for each vacancy. Withinfourteen days after the submission of the list, the governor shall appointindividuals from the list. With respect to the filling ofvacancies, the nominating committee shall provide the governor with a list offour individuals who are, in the judgment of the nominating committee, themost fully qualified to accede to membership on thecommission. The nominating committee shall not include the name ofan individual upon the list for the filling of vacancies if the appointment ofthat individual by the governor would result in more than three members of thecommission belonging to or being affiliated with the same political party. The committee shall include on the list for the filling of vacancies only thenames of attorneys admitted to practice law in this state if, to fulfill therequirement of division (A) of section 4121.12 of the Revised Code, thevacancy must be filled by an attorney.

In order for the name of an individual to be submitted to thegovernor under this division, the nominating committee shall approve theindividual by an affirmative vote of a majority of its members.

(D) The commission shall also consist of two members, known as the investment expert members. One investment expert member shall be appointed by the treasurer of state and one investment expert member shall be jointly appointed by the speaker of the house of representatives and the president of the senate. Each investment expert member shall have the following qualifications:

(2) Within the three years immediately preceding the appointment, not have been employed by the bureau of workers' compensation or by any person, partnership, or corporation that has provided to the bureau services of a financial or investment nature, including the management, analysis, supervision, or investment of assets;

(3) Have direct experience in the management, analysis, supervision, or investment of assets.

Terms of office of the investment expert members shall be for three years, with each term ending on the same day of the same month as did the term that it succeeds. Each member shall hold office for the date of the member's appointment until the end of the term for which the member was appointed. The president, speaker, and treasurer shall not appoint any person to more than two full terms of office on the commission. This restriction does not prevent the president, speaker, and treasurer from appointing a person to fill a vacancy caused by the death, resignation, or removal of a commission member and also appointing that person twice to full terms on the commission, or from appointing a person previously appointed to fill less than a full term twice to full terms on the commission. Any investment expert member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed shall hold office until the end of that term. The member shall continue in office subsequent to the expiration date of the member's term until the member's successor takes office or until a period of sixty days has elapsed, whichever occurs first.

The investment expert members of the oversight commission shall vote only on investment matters.

(E) The remaining four members of the commissionshall be the chairperson and ranking minority member ofthe standing committees of the house of representatives and of the senate towhich legislation concerning this chapter and Chapters 4123., 4127., and 4131.of the Revised Code normally arereferred, or a designee of the chairperson or rankingminority member, providedthat the designee is a member of the standing committee. Legislative membersshall serve during the session of the generalassembly to which they are elected and for as long as they are members of thegeneral assembly. Legislative members shall serve in an advisory capacity tothe commission and shall have no voting rights on matters coming before thecommission. Membership on the commission by legislative members shall not bedeemed as holding a public office.

~~(E)~~(F) All members of the commission shall receivetheir reasonableand necessary expenses pursuant to section 126.31 of the Revised Code whileengaged in theperformance of their duties as members. ~~Legislative membersalso shall receive fifty dollars per meeting that they attend.~~ Membersappointed by the governor and the investment expert members also shall receive an annual salary ~~as follows:~~

(1) On and before August 31, 1998, not to exceedsix thousand dollars payable atthe rate of five hundred dollars per month. A member shall receivethe monthly five hundred dollar salary only ifthe member has attended at least onemeeting of the commission during that month. A member may receive no morethan the monthly five hundred dollar salary regardless of the number ofmeetings held by the commission during a month or the number of meetingsin excess of one within a month that the member attends.

~~(2) After August 31, 1998,~~ not to exceed eighteenthousand dollars payable on the following basis:

~~(a)~~(1) Except as provided in division~~(E)~~(F)(2)~~(b)~~ of this section, a member shall receivetwo thousanddollars during a month in which themember attends one ormore meetings of the commissionand shall receive no payment during a month in which the member attends nomeeting of the commission.

~~(b)~~(2) A member may receive no more than the annual eighteenthousand dollar salaryregardless of the number of meetings held by the commission during ayearor the number of meetings in excess of nine within ayear that the memberattends.

The chairperson of the commission shall set the meeting dates of thecommission as necessary to perform the duties of the commission under thischapter and Chapters 4123., 4127., and 4131. of the RevisedCode. The commission shall meet at least nine times during theperiod commencingon the first day of September and ending on the thirty-first day ofAugust of the following year. The administrator ofworkers' compensation shallprovide professional andclerical assistance to the commission, as the commission considersappropriate.

(1) Review progress of the bureau in meeting itscost and quality objectives and in complying with this chapterandChapters 4123., 4127., and 4131. of the Revised Code;

(2) Issue an annual report on the cost and quality objectives of thebureauto the president of the senate, the speaker of the house of representatives,and the governor;

(3) Review all independent financial audits of the bureau. Theadministrator shall provide access to records of the bureau to facilitate thereview required under this division.

(5) Contract with an independent actuarial firm to assist the commissionin making recommendations to the administrator regarding premium rates;

(6) Establish objectives, policies, andcriteria for theadministration of the investment program that includeasset allocation targets and ranges, risk factors, asset classbenchmarks, time horizons, total return objectives, andperformance evaluation guidelines, andmonitor the administrator's progress in implementing theobjectives, policies, and criteria on a quarterly basis. The commissionshall review andpublish the objectives, policies, and criteria no less thanannually and shall make copies available to interested parties. Thecommission shall prohibit, on a prospective basis, anyspecific investment ~~activity~~ it finds to be contrary to its investmentobjectives, policies, and criteria.

The investment policy in existence on March 7, 1997,shall continue until the commission approves objectives, policies, andcriteria for the administration of the investment program pursuant to thissection.

The objectives, policies, and criteria adopted by the commission for the operation of the investment program shall prohibit investing assets of funds, directly or indirectly, in vehicles that target any of the following:

(j) Similar unregulated investments that are not commonly part of an institutional portfolio, that lack liquidity, and that lack readily determinable valuation.

(7) Specify in the objectives, policies, and criteria for the investment program that the administrator is permitted to invest in an investment class only if the commission, by a majority vote, opens that class. After the commission opens a class but prior to the administrator investing in that class, the commission shall adopt rules establishing due diligence standards for employees' of the bureau to follow when investing in that class and shall establish policies and procedures to review and monitor the performance and value of each investment class. The commission shall submit a report annually on the performance and value of each investment class to the governor, the president and minority leader of the senate, and the speaker and minority leader of the house of representatives. The commission may vote to close any investment class.

(a) Administrative rules the administrator submitsto it pursuant to division (B)(5) of section 4121.121 of the Revised Code fortheclassification of occupations or industries, for premium rates andcontributions, for the amount to be credited to the surplus fund, for rulesand systems of rating, rate revisions, and merit rating;

(b) The overallpolicy of the bureau of workers' compensation as set by the administrator;

(d) Rules the administrator adopts for the health partnershipprogram and the qualified health plan system, as provided in sections 4121.44,4121.441, and 4121.442 of the Revised Code;

(e) Rules the administrator submits to it pursuant to Chapter 4167. of the Revised Code regarding the public employment risk reduction program and the protection of public health care workers from exposure incidents.

As used in this division, "public health care worker" and "exposure incident" have the same meanings as in section 4167.25 of the Revised Code.

~~(8)~~(9) Perform all duties required under section 4121.125 of the RevisedCode.

~~(G)~~(H) The office of a member of the commission who is convicted of or pleads guilty to a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be deemed vacant. The vacancy shall be filled in the same manner as the original appointment. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible to be a member of the commission. A member who receives a bill of indictment for any of the offenses specified in this section shall be automatically suspended from the commission pending resolution of the criminal matter.

(I) As used in this section, "employee organization" meansanylabor or bona fide organization in which employees participate and whichexistsfor the purpose, in whole or in part, of dealing with employers concerninggrievances, labor disputes, wages, hours, terms and other conditions ofemployment.

Sec. 4121.121. (A) There is hereby created the bureau ofworkers' compensation, which shall be administered by the administrator ofworkers' compensation. A person appointed to the position of administratorshall possess significant management experience in effectively managing anorganization or organizations of substantial size and complexity. Thegovernor shall appoint the administrator as provided in section 121.03 of theRevised Code, and the administrator shallserve at the pleasure of the governor. The governor shall fix theadministrator's salaryon the basis of the administrator's experience and the administrator'sresponsibilities and duties under thischapter and Chapters 4123., 4127., 4131., and 4167. ofthe Revised Code. The governor shall not appoint to the position ofadministrator any person who has, or whose spousehas, given a contribution to the campaign committee of the governor inan amount greater than one thousand dollars during the two-year periodimmediately preceding the date of the appointment of the administrator.

The administrator shall hold no other public office and shall devotefull time to the duties of administrator. Before entering upon the duties of the office, theadministrator shall take an oath of office as required bysections 3.22 and 3.23 of the Revised Code, and shall file in the office ofthe secretary of state, a bond signed by the administrator and by suretyapproved by the governor, for the sum of fifty thousand dollars payable to thestate, conditioned upon the faithful performance of the administrator'sduties.

(B) The administratoris responsible for the management of the bureau of workers'compensation and for the discharge of all administrative dutiesimposed upon the administrator in this chapter and Chapters4123., 4127., 4131., and 4167. of the Revised Code, and in the discharge thereofshall do all of the following:

(1) Establish the overall administrative policyof the bureau for the purposes of this chapter and Chapters 4123.,4127., 4131., and 4167. of the Revised Code, and perform all acts and exercise allauthoritiesand powers, discretionary and otherwise that are requiredof or vested in the bureau or any of its employees in this chapter andChapters 4123., 4127., 4131., and 4167. of the Revised Code, except the acts and theexercise of authority and power that is required of andvested in the oversight commission or the industrial commission pursuant tothose chapters. The treasurerof state shall honor all warrants signed by the administrator, orby one or more of the administrator's employees, authorizedby the administratorin writing, or bearing the facsimile signature of theadministrator or such employee under sections 4123.42 and 4123.44of the Revised Code.

(2) Employ, direct, and supervise all employees requiredin connection with the performance of the duties assigned to thebureau by this chapter and Chapters 4123., 4127., 4131., and 4167. ofthe Revised Code, and may establish job classification plans andcompensation for all employees of the bureau provided that thisgrant of authority shall not be construed as affecting anyemployee for whom the state employment relations board hasestablished an appropriate bargaining unit under section 4117.06of the Revised Code. All positions of employment in the bureauare in the classified civil service except those employees theadministrator may appoint to serve at the administrator'spleasure in the unclassified civil service pursuant to section124.11 of the Revised Code. The administrator shall fix the salaries ofemployees the administrator appoints to serve atthe administrator's pleasure, including the chief operatingofficer, staff physicians, and other senior management personnel of thebureau and shall establish the compensation of staff attorneys of thebureau's legal section and their immediate supervisors, and take whateversteps are necessary to provide adequate compensation for other staffattorneys.

The administrator may appoint a person holding a certifiedposition in the classified service to any state position in theunclassified service of the bureau of workers' compensation. Aperson so appointed shall retain the right to resume theposition and status held by the person in the classified serviceimmediately prior to the person's appointment in theunclassified service. If the position the person previouslyheld has been filled or placed in the unclassified service, oris otherwise unavailable, the person shall be appointed to aposition in the classified service within the bureau that thedepartment of administrative services certifies is comparable in compensationto the position the person previously held. Reinstatement to aposition in the classified service shall be to a positionsubstantially equal to that held previously, as certified by thedepartment of administrative services. Service in the position in theunclassifiedservice shall be counted as service in the position in theclassified service held by the person immediately prior to theperson's appointment in the unclassified service. When apersonis reinstated to a position in the classifiedservice as provided in this section, the person is entitled toall rights, status, and benefits accruing to the position duringthe person's time of service in the position in the unclassifiedservice.

(3) Reorganize the work of the bureau, its sections,departments, and offices to the extent necessary to achieve themost efficient performance of its functions and to that end mayestablish, change, or abolish positions and assign and reassignduties and responsibilities of every employee of the bureau. Allpersons employed by the commission in positions that, afterNovember 3, 1989, are supervised and directed by theadministrator under this section are transferred to the bureau intheir respective classifications but subject to reassignment andreclassification of position and compensation as theadministrator determines to be in the interest of efficientadministration. The civil service status of any person employedby the commission is not affected by this section. Personnelemployed by the bureau or the commission who are subject toChapter 4117. of the Revised Code shall retain all of theirrights and benefits conferred pursuant to that chapter as itpresently exists or is hereafter amended and nothing in thischapter or Chapter 4123. of the Revised Code shall be construedas eliminating or interfering with Chapter 4117. of the RevisedCode or the rights and benefits conferred under that chapter topublic employees or to any bargaining unit.

(5) Prepare and submit to the oversight commission information theadministrator considers pertinent or the oversight commissionrequires, togetherwith the administrator's recommendations, in the form ofadministrative rules, for the advice and consent ofthe oversight commission, forclassifications of occupations or industries, for premium ratesand contributions, for the amount to be credited to the surplusfund, for rules and systems of rating, rate revisions, and meritrating. The administrator shall obtain, prepare, and submit anyother information the oversight commission requires forthe prompt and efficient discharge of its duties.

(6) Keep the accounts required by division (A) of section4123.34 of the Revised Code and all other accounts and recordsnecessary to the collection, administration, and distribution ofthe workers' compensation funds and shall obtain the statisticaland other information required by section 4123.19 of the RevisedCode.

(7) Exercise the investment powers vested in theadministrator by section 4123.44 of the Revised Code inaccordance with the investment objectives, policies, andcriteria established by the oversight commissionpursuant to section 4121.12 of the Revised Code and in consultation with the chief investment officer of the bureau of workers' compensation. The administrator shall notengage in anyprohibited investment activity specified by the oversight commission pursuantto division ~~(F)~~(G)(6) of section 4121.12 of the Revised Code and shall not invest in any type of investment specified in division (G)(6)(a) to (j) of that section. All businessshall be transacted, all funds invested, all warrants for money drawn andpayments made, and all cash and securities and other property held, in thename of the bureau, or in the name of its nominee, provided that nominees areauthorized by the administrator solely forthe purpose of facilitating the transfer of securities, and restricted tothe administrator and designatedemployees.

(8) Make contractsfor and supervise the construction of any project or improvementor the construction or repair of buildings under the control ofthe bureau.

(9) Purchase supplies, materials, equipment, and services; make contractsfor, operate, and superintend the telephone, other telecommunication,and computer services for the use of the bureau; and makecontracts in connection with office reproduction, formsmanagement, printing, and other services. Notwithstanding sections 125.12to 125.14 of the Revised Code, the administrator may transfer surplus computers and computerequipment directly to an accredited public school within the state. Thecomputers and computer equipment may be repaired or refurbished prior to thetransfer.

(10) Separately from the budget the industrialcommission submits,prepare and submit to the director of budget and management abudget for each biennium. The budget submitted shall includeestimates of the costs and necessary expenditures of the bureauin the discharge of any duty imposed by law.

(11) As promptly as possible in the course of efficientadministration, decentralize and relocate such of the personneland activities of the bureau as is appropriate to the end thatthe receipt, investigation, determination, and payment of claimsmay be undertaken at or near the place of injury or the residenceof the claimant and for that purpose establish regional offices,in such places as the administrator considers proper, capableof discharging asmany of the functions of the bureau as is practicable so as topromote prompt and efficient administration in the processing ofclaims. All active and inactive lost-time claims files shall beheld at the service office responsible for the claim. Aclaimant, at the claimant's request, shall be provided withinformation bytelephone as to the location of the file pertaining to the claimant's claim. Theadministrator shall ensure that all service office employeesreport directly to the director for their service office.

(12) Provide a written binder on new coverage where theadministrator considers it to be in the best interest of the risk. Theadministrator, or any other person authorized by theadministrator, shall grantthe binder upon submission of a request for coverage by theemployer. A binder is effective for a period of thirty days fromdate of issuance and is nonrenewable. Payroll reports andpremium charges shall coincide with the effective date of thebinder.

(13) Set standards for the reasonable and maximum handlingtime of claims payment functions, ensure, by rules, the impartialand prompt treatment of all claims and employer risk accounts,and establish a secure, accurate method of time stamping allincoming mail and documents hand delivered to bureau employees.

(14) Ensure that all employees of the bureau follow theorders and rules of the commission as such orders and rulesrelate to the commission's overall adjudicatory policy-making andmanagement duties under this chapter and Chapters 4123., 4127.,and 4131. of the Revised Code.

(15) Manage and operate a data processing system with acommon data base for the use of both the bureau and thecommission and, in consultation with the commission, usingelectronic data processing equipment, shall develop a claimstracking system that is sufficient to monitor the status of aclaim at any time and that lists appeals that have been filed andorders or determinations that have been issued pursuant tosection 4123.511 or 4123.512 of the Revised Code, including thedates of such filings and issuances.

(16) Establish and maintain a medical section within thebureau. The medical section shall do all of the following:

(a) Assist the administrator in establishing standardmedical fees, approving medical procedures, and determiningeligibility and reasonableness of the compensation payments formedical, hospital, and nursing services, and in establishingguidelines for payment policies which recognize usual, customary,and reasonable methods of payment for covered services;

(b) Provide a resource to respond to questions from claimsexaminers for employees of the bureau;

(d) Implement a program to utilize, to the maximum extentpossible, electronic data processing equipment for storage ofinformation to facilitate authorizations of compensation paymentsfor medical, hospital, drug, and nursing services;

(17) Appoint, as the administrator determines necessary,panels to reviewand advise the administrator on disputes arising over adetermination that a health care service or supply provided to aclaimant is not covered under this chapter or Chapter 4123. ofthe Revised Code or is medically unnecessary. If an individualhealth care provider is involved in the dispute, the panel shallconsist of individuals licensed pursuant to the same section ofthe Revised Code as such health care provider.

(18) Pursuant to section 4123.65 of the Revised Code,approve applications for the final settlement of claims forcompensation or benefits under this chapter and Chapters 4123.,4127., and 4131. of the Revised Code as the administratordetermines appropriate, except in regard to theapplications ofself-insuring employers and their employees.

(19) Comply with section 3517.13 of the Revised Code, andexcept in regard to contracts entered into pursuant tothe authority contained in section 4121.44 of the Revised Code,comply with the competitive biddingprocedures set forth in the Revised Code for all contracts intowhich the administrator enters provided that those contractsfall within the type of contracts and dollar amounts specified in the RevisedCode for competitive bidding and further provided that those contracts are nototherwise specifically exempt from the competitive bidding procedurescontained in the Revised Code.

(20) Adopt, with the advice and consent of the oversightcommission, rules for the operation of the bureau.

(21) Prepare and submit to the oversight commission information theadministrator considers pertinent or the oversight commission requires,together with the administrator's recommendations, in the form ofadministrative rules, for the advice and consent of the oversight commission,for the health partnership program and the qualified health plan system, asprovided in sections 4121.44, 4121.441, and 4121.442 of the Revised Code.

(C) The administrator, with the advice and consent of the senate,shall appoint a chief operating officer whohas significant experience in the field of workers'compensation insurance or other similar insurance industry experience if theadministrator does not possess such experience. The chief operating officershall not commence the chief operating officer's dutiesuntil after the senate consents to the chiefoperating officer's appointment. The chief operating officershall serve in the unclassified civil service of the state.

Sec. 4121.125. (A) The workers' compensation oversightcommission may contract with one or more outside actuarial firmsand other professional persons, as the oversight commissiondetermines necessary, to assist the oversight commission inmeasuring the performance of Ohio's workers' compensation systemand in comparing Ohio's workers' compensation system to otherstate and private workers' compensation systems. The oversightcommission, actuarial firm or firms, and professional personsshall make such measurements and comparisons using acceptedinsurance industry standards, including, but not limited to,standards promulgated by the National Council onCompensation Insurance.

(B) The oversight commission may contract with one or moreoutsidefirms to conduct management and financial audits of the workers' compensationsystem, including audits of the reserve fund belonging to the state insurancefund, and to establish objective quality management principles and methods bywhich to review the performance of the workers' compensation system.

(C) The administrator and the industrial commission shallcompile information and provide access to records of the bureauand the industrial commission to the oversight commission to the extentnecessary for fulfillment of both of the followingrequirements:

(1) Conduct of the measurements and comparisonsdescribed in division (A) of this section;

(2) Conduct of the management and financial audits andestablishment of the principles and methods described in division(B) of this section.

(D) The oversight commission shall have an independent auditor, at least once every ten years, conduct a fiduciary performance audit of the investment program of the bureau of workers' compensation. That audit shall include an audit of the investment policies of the oversight commission and investment procedures of the bureau. The oversight commission shall submit a copy of that audit to the auditor of state.

(E) The bureau of workers' compensation, with the advice and consent of the oversight commission, shall employ an internal auditor who shall report directly to the oversight commission on investment matters. The oversight commission may request and review internal audits conducted by the internal auditor.

(F) The administratorshall pay the expenses incurred by the oversight commission toeffectively fulfill its duties and exercise its powers underthis section as the administrator pays other operating expensesof the bureau.

Sec. 4121.126. Except as provided in this chapter, no member of the workers' compensation oversight commission or employee of the bureau of workers' compensation shall have any direct or indirect interest in the gains or profits of any investment made by the administrator of workers' compensation or shall receive directly or indirectly any pay or emolument for the member's or employee's services. No member or person connected with the bureau directly or indirectly, for self or as an agent or partner of others, shall borrow any of its funds or deposits or in any manner use the funds or deposits except to make current and necessary payments that are authorized by the administrator. No member of the oversight commission or employee of the bureau shall become an indorser or surety or become in any manner an obligor for moneys loaned by or borrowed from the bureau.

The administrator shall make no investments through or purchases from, or otherwise do any business with, any individual who is, or any partnership, association, or corporation that is owned or controlled by, a person who within the preceding three years was employed by the bureau, a board member of, or an officer of the oversight commission, or a person who within the preceding three years was employed by or was an officer holding a fiduciary, administrative, supervisory, or trust position, or any other position in which such person would be involved, on behalf of the person's employer, in decisions or recommendations affecting the investment policy of the bureau, and in which such person would benefit by any monetary gain.

Sec. 4121.127. (A) Except as provided in division (B) of this section, a fiduciary shall not cause the bureau of workers' compensation to engage in a transaction, if the fiduciary knows or should know that such transaction constitutes any of the following, whether directly or indirectly:

(1) The sale, exchange, or leasing of any property between the bureau and a party in interest;

(2) Lending of money or other extension of credit between the bureau and a party in interest;

(3) Furnishing of goods, services, or facilities between the bureau and a party in interest;

(4) Transfer to, or use by or for the benefit of a party in interest, of any assets of the bureau;

(5) Acquisition, on behalf of the bureau, of any employer security or employer real property.

(B) Nothing in this section shall prohibit any transaction between the bureau and any fiduciary or party in interest if both of the following occur:

(1) All the terms and conditions of the transaction are comparable to the terms and conditions that might reasonably be expected in a similar transaction between similar parties who are not parties in interest.

(2) The transaction is consistent with fiduciary duties under this chapter and Chapters 4123., 4127., and 4131. of the Revised Code.

(1) Deal with the assets of the bureau in the fiduciary's own interest or for the fiduciary's own account;

(2) In the fiduciary's individual capacity or in any other capacity, act in any transaction involving the bureau on behalf of a party, or represent a party, whose interests are adverse to the interests of the bureau or to the injured employees served by the bureau;

(3) Receive any consideration for the fiduciary's own personal account from any party dealing with the bureau in connection with a transaction involving the assets of the bureau.

(D) In addition to any liability that a fiduciary may have under any other provision, a fiduciary, with respect to bureau, shall be liable for a breach of fiduciary responsibility in any the following circumstances:

(1) If the fiduciary knowingly participates in or knowingly undertakes to conceal an act or omission of another fiduciary, knowing such act or omission is a breach;

(2) If, by the fiduciary's failure to comply with this chapter or Chapter 4123., 4127., or 4131. of the Revised Code, the fiduciary has enabled another fiduciary to commit a breach;

(3) If the fiduciary has knowledge of a breach by another fiduciary of that fiduciary's duties under this chapter and Chapters 4123., 4127., and 4131. of the Revised Code, unless the fiduciary makes reasonable efforts under the circumstances to remedy the breach.

(E) Every fiduciary of the bureau shall be bonded or insured for an amount of not less than one million dollars for loss by reason of acts of fraud or dishonesty.

(F) As used in this section, "fiduciary" means a person who does any of the following:

(1) Exercises discretionary authority or control with respect to the management of the bureau or with respect to the management or disposition of its assets;

(2) Renders investment advice for a fee, directly or indirectly, with respect to money or property of the bureau;

(3) Has discretionary authority or responsibility in the administration of the bureau.

Sec. 4121.128. The attorney general shall be the legal adviser of the workers' compensation oversight commission.

Sec. 4123.27. Information contained in the annualstatementprovided for in section 4123.26 of the Revised Code,and suchother information as may be furnished to the bureau ofworkers'compensation by employers in pursuance of that section, isfor theexclusive use and information of the bureau in thedischarge ofits official duties, and shall not be open to thepublic nor beused in any court in any action or proceedingpending thereinunless the bureau is a party to the action orproceeding; but theinformation contained in the statement may betabulated andpublished by the bureau in statistical form for theuse andinformation of other state departments and the public. No personinthe employ of the bureau, except those who are authorized bytheadministrator of workers' compensation, shall divulge anyinformation securedby the person while in the employ of thebureau in respectto the transactions, property, claim files,records, or papers of the bureauor in respect to the business ormechanical,chemical, or other industrial process of any company,firm,corporation, person, association, partnership, or publicutilityto any person other than the administrator or to thesuperior of such employeeof the bureau.

Notwithstanding the restrictions imposed by this section,thegovernor, select or standing committees of the generalassembly,the auditor of state, the attorney general, or theirdesignees,pursuant to the authority granted in this chapter andChapter4121. of the Revised Code, may examine any records, claimfiles,or papers in possession of the industrial commission orthebureau. They also are bound by the privilege that attachestothese papers.

The administrator shall report to the director of job andfamily services or to the county director of job andfamilyservices the name,address, and social security number or otheridentificationnumber of any person receiving workers'compensation whose nameor social security number or otheridentification number is thesame as that of a person required bya court or child supportenforcement agency to provide supportpayments to a recipient orparticipant of public assistance, andwhose name is submitted to theadministrator by the director undersection 5101.36 of theRevised Code. The administrator also shallinform the directorof the amount of workers' compensation paid tothe person duringsuch period as the director specifies.

Within fourteen days after receiving from the director ofjoband family services a list of the names and socialsecuritynumbers ofrecipients or participants of public assistancepursuant to section5101.181 ofthe Revised Code, theadministrator shall inform the auditor ofstate of the name,current or most recent address, and socialsecurity number of eachperson receiving workers' compensationpursuant to this chapterwhose name and social security numberare the same as that of aperson whose name or social securitynumber was submitted by thedirector. The administratoralso shall inform the auditor ofstate of the amount of workers'compensation paid to the personduring such period as thedirector specifies.

The bureau and its employees, except for purposes offurnishing the auditor of state with information required by thissection, shall preserve the confidentiality of recipients orparticipants of public assistance in compliance with division (A)ofsection 5101.181 ofthe Revised Code.

For the purposes of this section,"public assistance" meansmedical assistance provided through the medical assistanceprogramestablished under section 5111.01 of the Revised Code,Ohio worksfirst provided under Chapter 5107. of theRevised Code,prevention, retention, and contingencybenefits andservicesprovidedunder Chapter 5108. of the Revised Code, or disability financialassistanceprovided under Chapter 5115. of the RevisedCode~~, or disability medical assistance provided under Chapter 5115. of the Revised Code~~.

Sec. 4123.44. The voting members of the workers' compensation oversight commission, the administrator of workers' compensation, and the bureau of workers' compensation chief investment officer are the trustees of the state insurance fund. The administrator of workers'compensation, in accordance with sections 4121.126 and 4121.127 of the Revised Code and the investment objectives,policies, and criteria established by the workers' compensation oversightcommission pursuant to section 4121.12of the Revised Code, and in consultation with the bureau of workers' compensation chief investment officer, may invest any of the surplus or reserve belongingto the state insurance fund.

The administrator shall not invest in any type of investment specified in divisions (G)(6)(a) to (j) of section 4121.12 of the Revised Code.

The administrator and other fiduciaries shall dischargetheir duties with respect to the funds with the care, skill,prudence, and diligence under the circumstances then prevailingthat a prudent person acting in a like capacity and familiarwith such matters would use in the conduct of an enterprise of alike character and with like aims, and by diversifying theinvestments of the assets of the funds so as to minimize therisk of large losses, unless under the circumstances it isclearly prudent not to do so.

To facilitate investment of the funds, the administrator may establish apartnership, trust, limited liability company, corporation, including acorporation exempt from taxation under the Internal RevenueCode, 100 Stat. 2085, 26 U.S.C.1, as amended, or any other legal entity authorized to transact business inthis state.

When reporting on the performance of investments, the administrator shallcomply with the performance presentation standards established by theassociation for investment management and research.

All investments shall be purchased at current marketprices and the evidences of title to the investments shall beplaced in the custody of the treasurer of state, who is herebydesignated as custodian, or in the custody of thetreasurer of state's authorized agent. Evidences of title ofthe investments so purchased may be deposited by the treasurerof state for safekeeping with an authorized agent selected bythe treasurer of state who is a qualified trustee under section 135.18of the RevisedCode. The treasurer of stateor the agent shall collect the principal, dividends,distributions, and interest as they become due andpayable and place them when collected into the stateinsurance fund.

The treasurer of state shall pay for investments purchasedby the administrator on receipt of written or electronicinstructions from the administrator or the administrator'sdesignated agent authorizing the purchase, and pending receiptof the evidence of title of the investment by the treasurer ofstate or the treasurer of state's authorized agent. Theadministrator may sell investments held by the administrator,and the treasurer of state or the treasurer of state'sauthorized agent shall accept payment from the purchaser anddeliver evidence of title of the investment to the purchaser, onreceipt of written or electronic instructions from theadministrator or the administrator's designated agentauthorizing the sale, and pending receipt of the moneys for theinvestments. The amount received shall be placed in the stateinsurance fund. The administrator and the treasurer of state may enter intoagreements to establish procedures for the purchase and sale of investmentsunder this division and the custody of the investments.

No purchase or sale of any investment shall be made underthis section, except as authorized by the administrator.

Any statement of financial position distributed by theadministrator shall include the fair value, as of the statementdate, of all investments held by the administrator under thissection.

When in the judgment of the administrator it isnecessary to provide available funds for the payment ofcompensation or benefits under this chapter, the administratormay borrow money from any available source and pledge as securitya sufficient amount of bonds or other securities in which thestate insurance fund is invested. The aggregate unpaid amount ofloans existing at any one time for money so borrowed shall notexceed ten million dollars. The bonds or other securities sopledged as security for such loans to the administrator shall bethe sole security for the payment of the principal and interestof any such loan. The administrator shall not be personallyliable for the payment of the principal or the interest of anysuch loan. No such loan shall be made for a longer period oftime than one year. Such loans may be renewed but no one renewalshall be for a period in excess of one year. Such loans shallbear such rate of interest as the administrator determines and innegotiating the loans, the administrator shall endeavor tosecure as favorable interest rates and terms as circumstances will permit.

The treasurer of state may deliver to the person orgovernmental agency making such loan, the bonds or othersecurities which are to be pledged by the administrator assecurity for such loan, upon receipt by the treasurer of state ofan order of the administrator authorizing such loan. Uponpayment of any such loan by the administrator, the bonds or othersecurities pledged as security therefor shall be returned to thetreasurer of state as custodian of such bonds.

The administrator may pledge with the treasurer ofstate such amount of bonds or other securities in which the stateinsurance fund is invested as is reasonably necessary as securityfor any certificates issued, or paid out, by the treasurer ofstate upon any warrants drawn by the administrator.

The administrator may secure investment informationservices, consulting services, and other like services tofacilitate investment of the surplus and reserve belonging to thestate insurance fund. The administrator shall pay the expense ofsecuring such services from the state insurance fund.

Sec. 4123.441. (A) The bureau of workers' compensation, with the advice and consent of the workers' compensation oversight commission shall employ a person or designate an employee of the bureau who is designated as a chartered financial analyst by the CFA institute and who is licensed by the division of securities in the department of commerce as a bureau of workers' compensation chief investment officer to be the chief investment officer for the bureau of workers' compensation. After ninety days after the effective date of this section, the bureau of workers' compensation may not employ a bureau of workers' compensation chief investment officer, as defined in section 1707.01 of the Revised Code, who does not hold a valid bureau of workers' compensation chief investment officer license issued by the division of securities in the department of commerce. The oversight commission shall notify the division of securities of the department of commerce in writing of its designation and of any change in its designation within ten calendar days after the designation or change.

(B) The bureau of workers' compensation chief investment officer shall reasonably supervise employees of the bureau who handle investment of assets of funds specified in this chapter and Chapters 4121., 4127., and 4131. of the Revised Code with a view toward preventing violations of Chapter 1707. of the Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. 1, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a, the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, and the rules and regulations adopted under those statutes. This duty of reasonable supervision shall include the adoption, implementation, and enforcement of written policies and procedures reasonably designed to prevent employees of the bureau who handle investment of assets of the funds specified in this chapter and Chapters 4121., 4127., and 4131. of the Revised Code, from misusing material, nonpublic information in violation of those laws, rules, and regulations.

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

(1) Adopted and implemented written procedures, and a system for applying the procedures, that would reasonably be expected to prevent and detect, insofar as practicable, any violation by employees handling investments of assets of the funds specified in this chapter and Chapters 4121., 4127., and 4131. of the Revised Code;

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

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

(C) The bureau of workers' compensation chief investment officer shall establish and maintain a policy to monitor and evaluate the effectiveness of securities transactions executed on behalf of the bureau.

Sec. 4123.444. (A) As used in this section and section 4123.445 of the Revised Code:

(1) "Bureau of workers' compensation funds" means any fund specified in Chapter 4121., 4123., 4127., or 4131. of the Revised Code that the administrator of workers' compensation has the authority to invest, in accordance with the administrator's investment authority under section 4123.44 of the Revised Code.

(2) "Investment manager" means any person with whom the administrator of workers' compensation contracts pursuant to section 4123.44 of the Revised Code to facilitate the investment of assets of bureau of workers' compensation funds.

(3) "Business entity" means any person with whom an investment manager contracts for the investment of assets of bureau of workers' compensation funds.

(4) "Financial or investment crime" means any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, drug trafficking, or any criminal offense involving money or securities, as set forth in Chapters 2909., 2911., 2913., 2915., 2921., 2923., and 2925. of the Revised Code or other law of this state, or the laws of any other state or the United States that are substantially equivalent to those offenses.

(B)(1) Before entering into a contract with an investment manager to invest bureau of workers' compensation funds, the administrator shall do both of the following:

(a) Request from any investment manager with whom the administrator wishes to contract for those investments a list of all employees who will be investing assets of bureau of workers' compensation funds. The list shall specify each employee's state of residence for the five years prior to the date of the administrator's request.

(b) Request that the superintendent of the bureau of criminal investigation and identification conduct a criminal records check in accordance with this section and section 109.579 of the Revised Code with respect to every employee the investment manager names in that list.

(2) After an investment manager enters into a contract with the administrator to invest bureau of workers' compensation funds and before an investment manager enters into a contract with a business entity to facilitate those investments, the investment manager shall request from any business entity with whom the investment manager wishes to contract to make those investments a list of all employees who will be investing assets of the bureau of workers' compensation funds. The list shall specify each employee's state of residence for the five years prior to the investment manager's request. The investment manager shall forward to the administrator the list received from the business entity. The administrator shall request the superintendent to conduct a criminal records check in accordance with this section and section 109.579 of the Revised Code with respect to every employee the business entity names in that list. Upon receipt of the results of the criminal records check, the administrator shall forward a copy of those results to the investment manager.

(3) If, after a contract has been entered into between the administrator and an investment manager or between an investment manager and a business entity for the investment of assets of bureau of workers' compensation funds, the investment manager or business entity wishes to have an employee who was not the subject of a criminal records check under division (B)(1) or (B)(2) of this section invest assets of the bureau of workers' compensation funds, that employee shall be the subject of a criminal records check pursuant to this section and section 109.579 of the Revised Code prior to handling the investment of assets of those funds. The investment manager shall submit to the administrator the name of that employee along with the employee's state of residence for the five years prior to the date in which the administrator requests the criminal records check. The administrator shall request that the superintendent conduct a criminal records check on that employee pursuant to this section and section 109.579 of the Revised Code.

(C)(1) If an employee who is the subject of a criminal records check pursuant to division (B) of this section has not been a resident of this state for the five-year period immediately prior to the time the criminal records check is requested or does not provide evidence that within that five-year period the superintendent has requested information about the employee from the federal bureau of investigation in a criminal records check, the administrator shall request that the superintendent obtain information from the federal bureau of investigation as a part of the criminal records check for the employee. If the employee has been a resident of this state for at least that five-year period, the administrator may, but is not required to, request that the superintendent request and include in the criminal records check information about that employee from the federal bureau of investigation.

(2) The administrator shall provide to an investment manager a copy of the form prescribed pursuant to division (C)(1) of section 109.579 of the Revised Code and a standard impression sheet for each employee for whom a criminal records check must be performed, to obtain fingerprint impressions as prescribed pursuant to division (C)(2) of section 109.579 of the Revised Code. The investment manager shall obtain the completed form and impression sheet either directly from each employee or from a business entity and shall forward the completed form and sheet to the administrator, who shall forward these forms and sheets to the superintendent.

(3) Any employee who receives a copy of the form and the impression sheet pursuant to division (C)(2) of this section and who is requested to complete the form and provide a set of fingerprint impressions shall complete the form or provide all the information necessary to complete the form and shall complete the impression sheets in the manner prescribed in division (C)(2) of section 109.579 of the Revised Code.

(D) For each criminal records check the administrator requests under this section, at the time the administrator makes a request the administrator shall pay to the superintendent the fee the superintendent prescribes pursuant to division (E) of section 109.579 of the Revised Code.

Sec. 4123.445. (A) The administrator of workers' compensation shall not enter into a contract with an investment manager for the investment of assets of the bureau of workers' compensation funds if any employee of that investment manager who will be investing assets of bureau of workers' compensation funds has been convicted of or pleaded guilty to a financial or investment crime.

(B) An investment manager who has entered into a contract with the bureau of workers' compensation for the investment of assets of bureau of workers' compensation funds shall not contract with a business entity for the investment of those assets if any employee of that business manager who will be investing assets of bureau of workers' compensation funds has been convicted of or pleaded guilty to a financial or investment crime.

(C) The administrator shall not enter into a contract with an investment manager who refuses to submit the list of the investment manager's employees required under division (B) of section 4123.444 of the Revised Code. An investment manager shall not enter into a contract with a business entity who refuses to submit the list of the business entity's employees required under division (B) of section 4123.444 of the Revised Code.

(D) If, after a contract has been awarded to an investment manager or business entity for the investment of assets of bureau of workers' compensation funds, the investment manager or business entity discovers that an employee who is handling the investment of those assets has been convicted of or pleaded guilty to a financial or investment crime, the investment manager or business entity immediately shall notify the administrator.

Sec. 4123.47. (A) The administrator of workers'compensation shall have actuarial audits of the state insurancefund and all other funds specified in this chapter and Chapters 4121., 4127., and 4131. of the Revised Code made at least once ~~every two years~~ each year. The audits shall bemade and certified by recognized insurance actuaries who shall be selected asthe administrator determines. The audits shall cover the premiumrates, classifications, and all other matters involving theadministration of the state insurance fund and all other funds specified in this chapter and Chapters 4121., 4127., and 4131. of the Revised Code. The expense of theaudits shall be paid from the state insurance fund. The administrator shall make copies of the audits available to the public at cost.

(B) The auditor of state annually shall conduct an auditof the administration of this chapter by the industrialcommission and the bureau of workers' compensation and the safetyand hygiene fund. The cost of the audit shall be charged to theadministrative costs of the bureau as defined in section 4123.341of the Revised Code. The audit shall include audits of allfiscal activities, claims processing and handling, and employerpremium collections. The auditor shall prepare a report of theaudit together with recommendations and transmit copies of thereport to the industrial commission the workers' compensation oversightcommission, the administrator, thegovernor, and to the general assembly. The auditor shall makecopies of the report available to the public at cost.

(C) The administrator may retain the services of arecognized actuary on a consulting basis for the purpose ofevaluating the actuarial soundness of premium rates andclassifications and all other matters involving theadministration of the state insurance fund. The expense ofservices provided by the actuary shall be paid from the stateinsurance fund.

Sec. 4301.10. (A) The division of liquor control shall doall of thefollowing:

(1) Control the traffic in beer and intoxicating liquor inthis state, including the manufacture, importation, and saleofbeer and intoxicating liquor;

(2) Grant or refuse permits for the manufacture,distribution, transportation, and sale of beer and intoxicatingliquor and the sale of alcohol, as authorized or required by thischapter and Chapter 4303. of the Revised Code. Acertificate,signed by thesuperintendent of liquor controland towhich is affixed theofficial seal of the division, stating thatit appearsfrom the records of the division that no permit hasbeenissued to the person specified in the certificate, or that apermit,if issued, has beenrevoked, canceled, or suspended, shallbe received as prima-facieevidence of the facts recited in thecertificate in anycourt or before anyofficer of this state.

(3) Put into operation, manage, and control a system ofstate liquor stores for the sale of spirituous liquor at retailand to holders of permits authorizing the sale of spirituousliquor;however, the division shall not establish any drive-instateliquor stores; and by means of those types of stores, andanymanufacturing plants, distributing and bottling plants,warehouses, and other facilities that it considers expedient,establish and maintain a state monopoly of the distribution ofspirituous liquor and its sale in packages or containers; and forthat purpose, manufacture, buy, import, possess, and sellspirituousliquors as provided in this chapter and Chapter 4303.of theRevised Code, and in the rules promulgated by thesuperintendent of liquor control pursuant to those chapters;lease or in anymanneracquire the use of any land or buildingrequired for anyof those purposes; purchase any equipment that isrequired; and borrowmoney to carry on its business, and issue,sign, endorse, andaccept notes, checks, and bills of exchange;but all obligationsof the division created under authority ofthis divisionshallbe a charge only upon the moneys received bythe divisionfromthe sale of spirituous liquor and its otherbusiness transactionsin connection with the sale of spirituousliquor, andshall not be general obligations ofthe state;

(4) Enforce the administrative provisions of this chapterand Chapter 4303. of the RevisedCode, and the rules and orders ofthe liquor control commissionand the superintendent relating tothemanufacture, importation, transportation, distribution, andsale of beer ~~and~~or intoxicating ~~liquors~~ liquor. The attorneygeneral, any prosecutingattorney, and any prosecuting officer ofa municipal corporationor a municipal court shall, at the requestof thedivision of liquor control or the department of publicsafety,prosecute any person charged with the violation of anyprovision in those chaptersor of any section of the Revised Coderelating to themanufacture, importation, transportation,distribution, and saleof beer ~~and~~ or intoxicating liquor.

(5) Determine the locations of all state liquor stores andmanufacturing, distributing, and bottling plants required inconnectionwith those stores, subject to this chapterand Chapter 4303.of the Revised Code;

(6) Conduct inspections of liquor permit premises todetermine compliance with the administrative provisions ofthischapter and Chapter 4303. of the Revised Code and the rulesadopted underthose provisions by the liquor control commission.

Except as otherwise provided in division (A)(6) of thissection, those inspections may be conducted only during thosehours in which the permit holder is open for business and only byauthorized agents or employees of the division or by anypeaceofficer, as defined in section 2935.01 of theRevised Code.Inspections may be conducted at other hours onlyto determinecompliance with laws or commission rules thatregulate the hoursof sale of beer ~~and~~ or intoxicating liquor andonly if theinvestigator has reasonable cause to believe thatthose laws orrules are being violated. Any inspection conductedpursuant todivision (A)(6) of this section is subject to all ofthe followingrequirements:

(a) The only property that may be confiscated iscontraband,as defined in section 2901.01 of theRevised Code, or propertythat is otherwise necessary forevidentiary purposes.

(b) A complete inventory of all property confiscated fromthe premises shall be given to the permit holder or the permitholder's agentoremployee by the confiscating agent or officer atthe conclusionof the inspection. At that time, the inventoryshall be signedby the confiscating agent or officer, and theagent or officershall give the permit holder or the permitholder's agent or employee theopportunity to sign the inventory.

(c) Inspections conducted pursuant to division (A)(6) ofthis section shall be conducted in a reasonable manner. Afindingby any court of competent jurisdiction that ~~the~~an inspection was notconducted in a reasonable manner in accordancewith this sectionor any rules ~~promulgated~~ adopted by the commission maybe consideredgrounds for suppression of evidence. A finding bythe ~~liquorcontrol~~ commission that ~~the~~ an inspection was notconducted in areasonable manner in accordance with this sectionor any rules~~promulgated~~ adopted by ~~the commission~~ it may be consideredgrounds fordismissal of the commission case.

If any court of competent jurisdiction finds that propertyconfiscated as the result of an administrative inspection is notnecessary for evidentiary purposes and is not contraband, asdefined in section2901.01 of the Revised Code, the courtshallorder the immediate return of the confiscated property,providedthat property is not otherwise subject toforfeiture, to thepermit holder. However, the return of thisproperty is notgrounds for dismissal of the case. Thecommission likewise mayorder the return of confiscated propertyif no criminalprosecution is pending or anticipated.

(7) Delegate to any of its agents or employees any powerofinvestigation that the division possesses with respectto theenforcement of any of the administrative laws relating to beer ~~and~~or intoxicating liquor, provided that this division does notauthorizethedivision to designate any agent or employee to serveasan enforcement agent. The employment anddesignation ofenforcement agents shall be within the exclusiveauthority of thedirector ofpublic safety pursuant to sections 5502.13to 5502.19of the Revised Code.

(a) A biennial ~~fifty dollar~~ fifty-dollar registration fee for each agent, solicitor, or salesperson, registered pursuant to section 4303.25 of theRevised Code, of a beer or intoxicating liquor manufacturer, supplier, broker, or wholesale distributor doingbusiness in this state;

(b) A fifty-dollar product registration fee for each newbeer or intoxicating liquor product sold in this state. Theproduct registration fee shall be accompanied by a copy of thefederal label and product approval for the new product.

(c) An annual three-hundred-dollar supplier registration fee from each manufacturer or supplier that produces and ships into this state, or ships into this state, intoxicating liquor or beer, in additionto aninitial application fee of one hundred dollars.

Each supplier, agent, solicitor, or salesperson registration issued under this division shall authorize the person named to carry on the activityspecified in the registration. Each agent, solicitor, or salesperson registration is valid for two years or for the unexpired portion of a two-year registration period. Each supplier registration is valid for one year or for the unexpired portion of a one-year registration period. Registrations shall end on their respective uniform expiration date, whichshall be designated by the division, and are subject tosuspension,revocation, cancellation, or fine as authorized bythis chapterand Chapter 4303. of the Revised Code.

(9) Establish a system of electronic data interchange withinthedivision and regulate the electronictransfer ofinformationand funds among persons and governmental entities engaged in themanufacture, distribution, and retail sale of alcoholic beverages;

(10) Exercise all other powers expressly or by necessaryimplication conferred upon the division by this chapterandChapter 4303. of the Revised Code, and all powers necessary forthe exercise or discharge of any power, duty, or functionexpressly conferred or imposed upon the division bythosechapters.

(1) Sue, but may be sued only in connection with theexecution of leases of real estate and the purchases andcontractsnecessary for the operation of the state liquor storesthat aremade under this chapter and Chapter 4303. of the RevisedCode;

(2) Enter into leases and contracts of all descriptions andacquire andtransfer titleto personal property with regard to thesale, distribution, and storage ofspirituous liquor within thestate;

(3) Terminate at will any lease entered into pursuant todivision (B)(2) of this section uponfirst giving ninety days'notice in writing tothe lessor of its intention to do so;

(4) Fix the wholesale and retail prices at which thevariousclasses, varieties, and brands of spirituous liquor shallbe soldby the division. Those retail prices shallbe the sameat allstate liquor stores, except to the extent that a pricedifferential is required to collect a county sales tax leviedpursuant to section 5739.021 of the Revised Code and for whichtaxthe tax commissioner has authorized prepayment pursuant tosection5739.05 of the Revised Code. In fixing selling prices,thedivision shall compute an anticipated gross profit atleastsufficient to provide in each calendar year all costs andexpensesof the division and also an adequate workingcapitalreserve forthe division. The gross profit shall notexceed forty per cent ofthe retail selling price based on costs of thedivision, and inaddition the sum required by section 4301.12 of the Revised Codeto be paid into the state treasury. An amount equal to one andone-half per cent of that gross profit shall be paid into thestatewide treatment andprevention fund created by section 4301.30of theRevised Code and be appropriated by the general assemblyfrom the fund to thedepartment of alcohol and drugaddictionservices as provided in section 4301.30 of the RevisedCode.

On spirituous liquor manufactured inthis state from thejuice ofgrapes or fruits grown inthis state, the divisionshallcompute an anticipated gross profit of not to exceed ten percent. ~~The~~

Thewholesale prices fixed under this division shall be at a discount of not lessthan ~~twelveand one-half~~ six per cent of the retail selling prices asdeterminedby the division in accordance with this section.

(C) The division may approve the expansion or diminutionofa premises to which a liquor permit has been issued and may adoptstandardsgoverning suchan expansion or diminution.

(2)"Sale" or"sell" includes exchange, barter,gift,distribution, and, except with respect to A-4 permit holders,offer for sale.

(B) For the purposes of providing revenues for thesupportof the state and encouraging the grape industries in the state, atax is hereby levied on the sale or distribution of wine in Ohio,except for known sacramental purposes, at the rate of thirtycentsper wine gallon for wine containing not less than four percent ofalcohol by volume and not more than fourteen per cent ofalcoholby volume, ninety-eight cents per wine gallon for winecontainingmore than fourteen per cent but not more thantwenty-one per centof alcohol by volume, one dollar and eight cents per wine gallonfor vermouth, and one dollar andforty-eight cents per wine gallonfor sparkling and carbonatedwine and champagne, the tax to bepaid by the holders of A-2 andB-5 permits or by any other personselling or distributing wineupon which no tax has been paid.Fromthe tax paid underthis section on wine, vermouth, andsparklingand carbonated wineand champagne, the treasurer ofstate shallcredit to the Ohiogrape industries fund created undersection924.54 of the RevisedCode a sum equal to one cent pergallon foreach gallon uponwhich the tax is paid.

(C) For the purpose of providing revenues for the support ofthe state, there is hereby levied a tax on prepared and bottledhighballs, cocktails, cordials, and other mixed beverages at therate of one dollar and twenty cents per wine gallon to be paid byholders of A-4 permits or by any other person selling ordistributing those products upon which no tax has been paid. Onlyone sale of the same article shall be used in computing theamountof tax due. The tax on mixed beverages to be paid byholders ofA-4 permits under this section shall not attach untiltheownership of the mixed beverage is transferred for valuableconsideration to a wholesaler or retailer, and no payment of thetax shall berequired prior to that time.

(D) During the periodof July 1, ~~2003~~ 2005,through June 30, ~~2005~~ 2007, from the tax paid under this sectionon wine, vermouth, andsparkling and carbonated wine andchampagne, thetreasurer ofstate shall credit to the Ohio grapeindustries fund created undersection 924.54 of the Revised Code asum equal to two cents pergallon uponwhich the tax is paid. Theamount credited under thisdivision is in additionto the amountcredited to the Ohio grapeindustries fund under division (B) ofthis section.

(E) For the purpose of providing revenues for the support ofthestate, thereis hereby levied a tax on cider at the rate oftwenty-four cents per winegallon to be paid by the holders of A-2and B-5 permits orby any other person selling or distributingcider upon which no tax has beenpaid. Only one sale of the samearticle shall be used in computing the amountof the tax due.

Sec. 4303.182. (A) Except asotherwise provided indivisions(B) to(G) of this section, permit D-6 shall be issuedtotheholder of an A-1-A, A-2, C-2, D-2, D-3, D-3a, D-4, D-4a, D-5,D-5a,D-5b, D-5c, D-5d, D-5e, D-5f, D-5g, D-5h, D-5i, D-5j,D-5k,or D-7permit to allow sale under that permit between the hoursoftena.m. and midnight, or between the hours ofonep.m. andmidnight,on Sunday, as applicable, if that salehasbeenauthorizedundersection 4301.361, 4301.364, 4301.365,or 4301.366of the RevisedCode andunder the restrictions of thatauthorization.

(B) Permit D-6 shall be issuedto the holder of any permit,including a D-4a and D-5d permit,authorizing the sale ofintoxicating liquor issued for a premiseslocated at any publiclyowned airport, as defined in section4563.01 of the Revised Code,at which commercial airlinecompanies operate regularly scheduledflights on which space isavailable to the public, to allow saleunder such permit betweenthe hours of ten a.m. and midnight onSunday,whether or notthat sale has been authorized under section4301.361, 4301.364, 4301.365, or 4301.366 of theRevisedCode.

(C) Permit D-6 shall be issued to the holder of a D-5apermit,and to the holder of a D-3 or D-3a permit who is the owneroroperator of a hotel or motel that is required to be licensedundersection 3731.03 of the Revised Code, thatcontains at leastfiftyrooms for registered transient guests, and that has on itspremises aretail food establishment or a food serviceoperationlicensed pursuant toChapter 3717. oftheRevised Codethatoperates as a restaurant for purposes ofthis chapter and isaffiliated with the hotel or motel and withinorcontiguous to thehotel or motel and serving food within thehotelor motel, toallow sale under such permit between the hoursoftena.m. andmidnight on Sunday,whether ornot thatsale hasbeenauthorizedunder section 4301.361,4301.364, 4301.365, or4301.366 oftheRevised Code.

(D) The holder of a D-6 permitthat is issued to asportsfacility may make sales under the permit between the hoursofeleven a.m. and midnight on any Sunday onwhich a professionalbaseball, basketball, football, hockey, or soccer game isbeingplayed at the sports facility. As used in thisdivision,"sportsfacility" means a stadium or arena that has a seatingcapacity ofat least fourthousand and that is owned or leased by aprofessional baseball, basketball,football, hockey, orsoccerfranchise or any combination of those franchises.

(E) Permit D-6 shall be issued to the holder of anypermitthat authorizes the sale of beer or intoxicating liquor and thatisissued to a premises located in or at the Ohio historicalsocietyarea orthe state fairgrounds, as defined in division (B)of section 4301.40 of the Revised Code, to allow sale under thatpermit between the hours often a.m. and midnight on Sunday,whether ornot that sale has been authorized under section4301.361, 4301.364, 4301.365,or 4301.366 of the Revised Code.

(F) Permit D-6 shall be issued tothe holder of any permitthat authorizes the sale of intoxicating liquor andthat is issuedto an outdoor performing arts center to allow sale under thatpermit between the hours of one p.m. and midnight onSunday,whether or not that sale has been authorized under section4301.361 ofthe Revised Code. A D-6 permit issued under thisdivisionis subject to the results of an election, held after theD-6permit is issued, on question (B)(4) as set forth in section4301.351 of the Revised Code.Following the end of the periodduring which an election may beheld on question (B)(4) as setforth in that section, sales ofintoxicating liquor may continueat an outdoor performing arts centerunder a D-6 permit issuedunder this division, unlessan election on that question is heldduring the permitted period and amajority of thevoters voting inthe precinct on that question vote"no."

As used in this division,"outdoor performing arts center"meansan outdoor performing arts center that is located on notless than eighthundred acres of land and that is open forperformances from thefirst day of April to the last day ofOctober of eachyear.

(G)Permit D-6 shall be issued to the holder of any permitthat authorizes the sale of beer or intoxicating liquor and thatis issued to a golf course owned by the state, a conservancydistrict, a park district created under Chapter 1545. of theRevised Code, or another political subdivision to allow sale underthat permit between the hours of ten a.m. and midnight on Sunday,whether or not that sale has been authorized under section4301.361, 4301.364, 4301.365, or 4301.366 of the Revised Code.

(H) Permit D-6 shall be issued to the holder of a D-5g permit to allow sale under that permit between the hours of ten a.m. and midnight on Sunday, whether or not that sale has been authorized under section 4301.361, 4301.364, 4301.365, or 4301.366 of the Revised Code.

(I) Permit D-6 shall be issued to the holder of any D permit for a premises that is licensed under Chapter 3717. of the Revised Code and that is located at a ski area to allow sale under the D-6 permit between the hours of ten a.m. and midnight on Sunday, whether or not that sale has been authorized under section 4301.361, 4301.364, 4301.365, or 4301.366 of the Revised Code.

As used in this division, "ski area" means a ski area as defined in section 4169.01 of the Revised Code, provided that the passenger tramway operator at that area is registered under section 4169.03 of the Revised Code.

(J) If the restriction to licensedpremises where the saleoffood and other goods and servicesexceeds fifty per cent of thetotal gross receipts of the permitholder at the premises isapplicable, the division of liquorcontrol may accept an affidavitfrom the permit holder to showthe proportion of the permitholder's gross receipts derived from the sale offood and othergoods and services. If the liquor controlcommission determinesthat affidavit to have been false, itshall revoke the permits ofthe permit holder at the premisesconcerned.

~~(J)~~(K) The fee for the D-6 permit is fivehundred dollarswhen it is issued to the holder of anA-1-A, A-2, D-2,D-3, D-3a,D-4, D-4a, D-5, D-5a, D-5b, D-5c,D-5d, D-5e, D-5f,D-5g, D-5h,D-5i, D-5j,D-5k, or D-7 permit. The fee forthe D-6permit is fourhundred dollars when it is issued to theholder of aC-2permit.

Sec. 4501.01. As used in this chapter and Chapters 4503.,4505., 4507., 4509., 4510., 4511., 4513., 4515., and 4517. of theRevisedCode, and in the penal laws, except as otherwiseprovided:

(A)"Vehicles" means everything on wheels or runners,including motorized bicycles, but does not meanelectric personalassistive mobility devices, vehicles that areoperatedexclusively on rails or tracks or from overhead electrictrolleywires, and vehicles that belong to any police department,municipalfire department, or volunteer fire department, or thatare used by sucha department in the discharge of its functions.

(B)"Motor vehicle" means any vehicle, includingmobilehomesand recreational vehicles, that ispropelled or drawnbypowerother than muscular power or power collected fromoverheadelectric trolley wires."Motorvehicle" does not include utility vehicles as defined in division (VV) of this section,motorizedbicycles, roadrollers, traction engines, powershovels,powercranes, and otherequipment used in constructionwork andnotdesigned for oremployed in general highwaytransportation,well-drillingmachinery, ditch-diggingmachinery, farm machinery,trailers that are usedto transportagricultural produce oragricultural productionmaterialsbetween a local place of storageor supply and the farmwhendrawn or towed on a public road orhighway at a speed oftwenty-five miles per hour or less,threshing machinery,hay-baling machinery, corn sheller,hammermill and agriculturaltractors, machinery used in theproduction of horticultural,agricultural, and vegetable products,and trailers that aredesigned andused exclusively to transport aboat between aplace of storageand a marina, or in and around amarina, whendrawn or towed on apublic road or highway for adistance of nomore than ten milesand at a speed of twenty-fivemiles per houror less.

(C)"Agricultural tractor" and"traction engine" mean anyself-propelling vehicle that is designed or used for drawing othervehicles or wheeled machinery, but has no provisions forcarryingloads independently of such other vehicles, and that is usedprincipally for agricultural purposes.

(D)"Commercial tractor," except as defined in division (C)of this section, means any motor vehicle that has motive powerandeither is designed or used for drawing other motor vehicles,or isdesigned orused for drawing another motor vehicle whilecarryinga portionof the other motor vehicle or its load, orboth.

(E)"Passenger car" means any motor vehicle that is designedandused for carrying not more than nine persons and includes anymotorvehicle that is designed and used for carrying not morethanfifteenpersons in a ridesharing arrangement.

(F)"Collector's vehicle" means any motor vehicle oragricultural tractor or traction engine that is of specialinterest,that has a fair market value of one hundred dollars ormore,whether operable or not, and that is owned, operated,collected,preserved, restored, maintained, or used essentiallyasacollector's item, leisure pursuit, or investment, but notas theowner's principal means of transportation."Licensedcollector'svehicle" means a collector's vehicle, other than anagriculturaltractor or traction engine, that displays current,valid licensetags issued under section 4503.45 of the RevisedCode, or asimilar type of motor vehicle that displays current,validlicensetags issued under substantially equivalentprovisions inthe lawsof other states.

(G)"Historical motor vehicle" means any motor vehiclethatis over twenty-five years old and is owned solely as acollector'sitem and for participation in club activities,exhibitions, tours,parades, and similar uses, but that in noevent is usedforgeneral transportation.

(H)"Noncommercial motor vehicle" means any motor vehicle,including a farm truck as defined in section 4503.04 of theRevised Code, that is designed by the manufacturer to carry a loadof nomore than one ton and is used exclusively for purposesotherthanengaging in business for profit.

(I)"Bus" means any motor vehicle that has motor powerandisdesigned and used for carrying more than nine passengers,exceptany motor vehicle that is designed and used for carryingnot morethanfifteen passengers in a ridesharing arrangement.

(J)"Commercial car" or"truck" means any motor vehiclethathas motorpower and is designed and used for carryingmerchandiseor freight, orthat is used as a commercial tractor.

(K)"Bicycle" means every device, other than a tricyclethatisdesigned solely for use as a play vehicle by a child,that ispropelledsolely by human power upon which any personmay ride,and that has either twotandem wheels, or one wheel infront andtwo wheels inthe rear, any of which is more thanfourteen inchesin diameter.

(L)"Motorized bicycle" means any vehicle that either hastwotandem wheels or one wheel in the front and two wheels intherear, that is capable of being pedaled, and that is equippedwithahelper motor of not more than fifty cubic centimeterspistondisplacement that produces no more than one brakehorsepower andis capable of propelling the vehicle at a speed ofno greaterthantwenty miles per hour on a level surface.

(M)"Trailer" means any vehicle without motive powerthatisdesigned or used for carrying property or persons wholly onitsown structure and for being drawn by a motor vehicle, andincludesany such vehicle that is formed by or operated as acombination ofa semitrailer and a vehicle of the dolly type suchas thatcommonly known as a trailer dolly, a vehicle used totransportagricultural produce or agricultural productionmaterials betweena local place of storage or supply and the farmwhen drawn ortowed on a public road or highway at a speedgreater thantwenty-five miles per hour, and a vehicle that isdesignedandused exclusively to transport a boat between aplace ofstorageand a marina, or in and around a marina, whendrawn ortowed on apublic road or highway for a distance ofmore than tenmiles or ata speed of more than twenty-five milesper hour."Trailer" doesnot include a manufactured home ortravel trailer.

(N)"Noncommercial trailer" means any trailer, except atravel trailer or trailer that is used to transport a boat asdescribedin division (B) of this section, but, where applicable,includesa vehicle that is used to transport a boat as describedin division (M)of this section, that has a gross weight of nomore than threethousand pounds, and that is used exclusively forpurposes other thanengaging in business for a profit.

(O)"Mobile home" means a buildingunit or assembly ofclosedconstruction that is fabricated in an off-sitefacility,ismorethan thirty-five bodyfeet in length or, when erectedonsite, isthree hundredtwenty or more square feet, is builton apermanentchassis, istransportable in one or moresections, anddoes notqualify asa manufactured home asdefined in division(C)(4) ofsection 3781.06of the RevisedCode or as anindustrialized unitas defined in division (C)(3)of section3781.06 of the RevisedCode.

(P)"Semitrailer" means any vehicle of the trailer typethatdoes not have motive power and is so designed or used withanotherandseparate motor vehicle that in operation a part ofits ownweightor that of its load, or both, rests upon and iscarried bythe other vehiclefurnishing the motive power forpropellingitselfand the vehicle referred to in this division,and includes,forthe purpose only of registration and taxationunder thosechapters, anyvehicle of the dolly type, such as atrailer dolly,that is designed or used for the conversion of asemitrailer intoatrailer.

(Q)"Recreational vehicle" means a vehicular portablestructure that meets all of the following conditions:

(4) It is not used for the purpose of commerce as defined in49 C.F.R. 383.5,as amended.

(5) It is not regulated by the public utilities commissionpursuant toChapter 4919., 4921., or 4923. of the Revised Code.

(a)"Travel trailer" means a nonself-propelledrecreationalvehicle that does not exceed an overall length ofthirty-fivefeet, exclusive of bumper and tongue or coupling, andcontainsless than three hundred twenty square feet of space when erectedon site."Travel trailer"includes a tent-type fold-out campingtrailer as defined insection 4517.01 of the Revised Code.

(b)"Motor home" means a self-propelled recreationalvehiclethat has no fifth wheel and is constructed withpermanentlyinstalledfacilities forcold storage, cooking andconsuming offood, and for sleeping.

(c)"Truck camper" means a nonself-propelled recreationalvehicle that does not have wheels for road use and is designed tobe placedupon and attached to a motor vehicle."Truck camper"does notinclude truck covers that consist of walls and a roof,but do nothave floors and facilities enabling them to be used asa dwelling.

(d)"Fifth wheel trailer" means a vehicle that is of suchsize and weight asto be movable without a special highwaypermit,that has a gross trailer areaof four hundred squarefeet or less,that is constructed with a raised forwardsectionthat allows abi-level floor plan, and that is designed to betowed bya vehicleequipped with a fifth-wheel hitch ordinarilyinstalled in the bedofa truck.

(e)"Park trailer" means a vehicle that is commonly known asa park modelrecreational vehicle, meets the American nationalstandard institute standardA119.5 (1988) for park trailers, isbuilt on a single chassis, has a grosstrailer area of fourhundred square feet or less when set up, is designed forseasonalor temporary living quarters, and may be connected to utilitiesnecessary for the operation of installed features and appliances.

(R)"Pneumatic tires" means tires of rubber and fabric ortires of similar material, that are inflated with air.

(S)"Solid tires" means tires of rubber or similar elasticmaterial that are not dependent upon confined air for support ofthe load.

(T)"Solid tire vehicle" means any vehicle that is equippedwithtwo or more solid tires.

(U)"Farm machinery" means all machines and tools that areused inthe production, harvesting, and care of farm products,andincludes trailersthat are used to transport agriculturalproduceor agriculturalproduction materials between a localplace ofstorage or supplyand the farm when drawn or towed on apublicroad or highway at aspeed of twenty-five miles per houror less.

(V)"Owner" includes any personor firm,otherthan amanufacturer or dealer, that has title to a motorvehicle,except that, in sections 4505.01 to 4505.19 of theRevisedCode,"owner" includes in addition manufacturers anddealers.

(W)"Manufacturer" and"dealer" include all personsandfirms that are regularly engaged in thebusinessofmanufacturing, selling, displaying, offering forsale, ordealingin motor vehicles, at an established place ofbusinessthat isused exclusively for the purpose ofmanufacturing,selling,displaying, offering for sale, ordealing in motorvehicles. Aplace of business that is used formanufacturing,selling,displaying, offering for sale, ordealing in motorvehicles shallbe deemed to be used exclusivelyfor those purposeseven thoughsnowmobiles or all-purposevehicles are sold ordisplayed forsalethereat, even thoughfarm machinery is sold ordisplayedforsalethereat, or eventhough repair, accessory,gasolineand oil,storage, parts,service, or paint departmentsaremaintainedthereat, or, in anycounty having a population ofless thanseventy-five thousand at the last federalcensus,eventhough a department ina place of business is used todismantle,salvage, or rebuildmotor vehicles by means of usedparts, ifsuchdepartments areoperated for the purpose offurthering andassisting in thebusiness of manufacturing,selling, displaying,offering forsale, or dealing in motorvehicles. Places ofbusiness ordepartments in a place ofbusiness used todismantle,salvage,or rebuild motor vehiclesbymeans of usingused partsare notconsidered as beingmaintainedfor the purposeofassisting orfurthering themanufacturing,selling,displaying,and offeringfor sale ordealing in motorvehicles.

(X)"Operator" includes any person who drives or operatesamotor vehicle upon the public highways.

(Y)"Chauffeur" means any operator who operates a motorvehicle, other than a taxicab, as an employee for hire; or anyoperator whether or not the owner of a motor vehicle, other thanataxicab, who operates such vehicle for transporting, for gain,compensation, or profit, either persons or property owned byanother. Any operator of a motor vehicle who is voluntarilyinvolved ina ridesharing arrangement is not considered anemployee for hireor operating such vehicle for gain,compensation, or profit.

(Z)"State" includes the territories and federal districtsofthe United States, and the provinces of Canada.

(AA)"Public roads and highways" for vehicles includes allpublic thoroughfares, bridges, and culverts.

(BB)"Manufacturer's number" means the manufacturer'soriginal serial number that is affixed to or imprinted upon thechassisor other part of the motor vehicle.

(CC)"Motor number" means the manufacturer's originalnumberthat is affixed to or imprinted upon the engine or motorof thevehicle.

(DD)"Distributor" means any person who is authorized by amotorvehicle manufacturer to distribute new motor vehicles tolicensedmotor vehicle dealers at an established place ofbusinessthat is usedexclusively for the purpose ofdistributing new motorvehicles to licensed motor vehicledealers, except when thedistributor also is a new motor vehicledealer, in which case thedistributor may distribute at thelocation of thedistributor'slicensed dealership.

(EE)"Ridesharing arrangement" means the transportation ofpersons in a motor vehicle where the transportation isincidentalto another purpose of a volunteer driver and includesridesharingarrangements known as carpools, vanpools, andbuspools.

(FF)"Apportionable vehicle" means any vehicle that is usedorintended for use in two or more international registrationplanmember jurisdictions that allocate or proportionallyregistervehicles, that is used for the transportation of personsfor hireor designed, used, or maintained primarily for thetransportationof property, and that meets any of the followingqualifications:

(1) Is a power unit having a gross vehicle weight inexcessof twenty-six thousand pounds;

(2) Is a power unit having three or more axles, regardlessof the gross vehicle weight;

(3) Is a combination vehicle with a gross vehicle weightinexcess of twenty-six thousand pounds.

"Apportionable vehicle" does not include recreationalvehicles, vehicles displaying restricted plates, city pick-up anddelivery vehicles, buses used for the transportation of charteredparties, or vehicles owned and operated by the United States,thisstate, or any political subdivisions thereof.

(GG)"Chartered party" means a group of persons whocontractas a group to acquire the exclusive use of apassenger-carryingmotor vehicle at a fixed charge for thevehicle in accordance withthe carrier's tariff, lawfully on filewith the UnitedStatesdepartment of transportation, for thepurpose of grouptravel to aspecified destination or for aparticular itinerary,either agreedupon in advance or modifiedby the chartered groupafter havingleft the place of origin.

(HH)"International registration plan" means a reciprocalagreement of member jurisdictions that is endorsed by theAmericanassociation of motor vehicle administrators, and thatpromotes andencourages the fullest possible use of the highwaysystem byauthorizing apportioned registration of fleets ofvehicles andrecognizing registration of vehicles apportioned inmemberjurisdictions.

(II)"Restricted plate" means a license plate that has arestriction of time, geographic area, mileage, or commodity, andincludes license plates issued to farm trucks under division (J)of section 4503.04 of the Revised Code.

(JJ)"Gross vehicle weight," with regard to any commercialcar, trailer, semitrailer, or bus that is taxed at the ratesestablished under section 4503.042 of the Revised Code, means theunladen weight of the vehicle fully equipped plus the maximumweight of the load to be carried on the vehicle.

(KK)"Combined gross vehicle weight" with regard to anycombination of a commercial car, trailer, and semitrailer, thatistaxed at the rates established under section 4503.042 of theRevised Code, means the total unladen weight of the combinationofvehicles fully equipped plus the maximum weight of the load tobecarried on that combination of vehicles.

(LL)"Chauffeured limousine" means a motor vehiclethat isdesigned to carry nine or fewer passengersand is operated forhire on an hourly basis pursuant to a prearranged contract forthetransportation of passengers on public roads and highwaysalong aroute under the control of the person hiring the vehicleand notover a defined and regular route."Prearranged contract"means anagreement, made in advance of boarding, to providetransportationfrom a specific location in a chauffeuredlimousine at a fixedrate per hour or trip."Chauffeuredlimousine" does not includeany vehicle that is used exclusivelyin thebusiness of funeraldirecting.

(MM)"Manufactured home" has the samemeaning as indivision(C)(4)of section 3781.06 of the Revised Code.

(NN)"Acquired situs,"with respect to a manufactured homeora mobile home, means tobecome located in this state by theplacement of the homeon real property, but does not include theplacement of amanufactured home or a mobile home in theinventoryof a newmotor vehicle dealer or the inventory of amanufacturer,remanufacturer, or distributor of manufactured ormobilehomes.

(OO)"Electronic" includes electrical, digital, magnetic,optical, electromagnetic, or any other form of technology thatentailscapabilities similar to these technologies.

(PP)"Electronic record" means a record generated,communicated,received, or stored by electronic means for use inan information system orfor transmission from one informationsystem to another.

(QQ)"Electronic signature" means a signature in electronicformattached to or logically associated with an electronicrecord.

(RR)"Financial transaction device" has the same meaning asindivision (A) of section 113.40 of the Revised Code.

(SS)"Electronic motor vehicle dealer" means a motor vehicledealer licensed under Chapter 4517. of the Revised Code whom theregistrar of motorvehicles determines meets the criteriadesignated in section 4503.035 of the Revised Code forelectronicmotor vehicle dealers and designates as an electronic motorvehicledealer under that section.

(TT) "Electric personal assistive mobility device" means aself-balancing two non-tandem wheeleddevice that is designed totransport only one person, has anelectric propulsion system of anaverage of seven hundred fiftywatts, and when ridden on apavedlevel surface by an operator whoweighs one hundred seventypoundshas a maximum speed of less thantwenty miles per hour.

(UU)"Limited driving privileges" means the privilege tooperatea motor vehicle that a court grants under section 4510.021of the Revised Code to a personwhose driver's or commercialdriver's license or permit or nonresidentoperating privilege hasbeen suspended.

(VV) "Utility vehicle" means a self-propelled vehicle designed with a bed, principally for the purpose of transporting material or cargo in connection with construction, agricultural, forestry, grounds maintenance, lawn and garden, materials handling, or similar activities.

Sec. 4501.37. (A) No court may reverse, suspend, ordelayanyorder made by theregistrar of motor vehicles, orenjoin,restrain, or interfere with theregistrar or a deputyregistrar inthe performance of official duties, exceptasprovided inthischapterand Chapter 4507. or4510. of the Revised Code.

(B) A court shall not order the bureau of motor vehicles to delete a record of conviction unless the court finds that deletion of the record of conviction is necessary to correct an error. The bureau shall not comply with a court order that directs the deletion of a record of conviction unless the order states that the record of conviction is being deleted in order to correct an error.

Sec. 4503.103. (A)(1)(a)(i) The registrar of motor vehiclesmay adoptrules to permit any person or lessee, other than aperson receiving an apportioned license plate under theinternational registration plan, who owns or leases oneormoremotor vehicles to file a written application forregistration for nomore than five succeeding registrationyears. Therules adoptedby the registrar may designate the classes of motor vehiclesthatare eligible for such registration. At the time ofapplication,all annual taxes and fees shall bepaid for each year for whichthe person is registering.

(ii) The registrar shall adopt rules to permit any person or lessee who owns or leases two or more trailers or semitrailers that are subject to the tax rates prescribed in section 4503.042 of the Revised Code for such trailers or semitrailers to file a written application for registration for not more than five succeeding registration years. At the time of application, all annual taxes and fees shall be paid for each year for which the person is registering.

(b)(i) Except as provided in division (A)(1)(b)(ii) of this section, the registrarshall adopt rules to permit anyperson who owns a motorvehicle to filean application for registration for the next twosucceedingregistration years.At the time of application, theperson shall pay the annual taxes and fees for each registrationyear, calculated in accordance with division (C) of section4503.11 of the Revised Code. A person who is registering avehicle under division (A)(1)(b) of this section shall pay for each year of registration the additional fee established under division (C)(1) of section 4503.10 of the Revised Code. The person shall also pay one and one-half times the amount of the deputy registrar service fee specified in division (D) of section 4503.10 of the Revised Code or the bureau of motor vehicles service fee specified in division (G) of that section, as applicable.

(ii) Division (A)(1)(b)(i) of this section does not apply to a person receiving an apportioned license plate under the international registration plan, or the owner of a commercial car used solely in intrastate commerce, or the owner of a bus as defined in section 4513.50 of the Revised Code.

(2) No person applying for a multi-year registration underdivision (A)(1) of this section is entitled to a refund of any taxes or fees paid.

(3) The registrar shall not issue to any applicant who hasbeenissued a final, nonappealable order under division (B) ofthissection a multi-year registration or renewal thereof underthisdivision or rules adopted under it for any motor vehicle thatisrequired to be inspected under section 3704.14 of the RevisedCode the district of registration of which, as determined undersection 4503.10 of the Revised Code, is or is located in thecounty named in the order.

(B) Upon receipt from the director of environmentalprotection of a notice issued under ~~division (J) of~~ rules adopted under section3704.14 of the Revised Code indicating that an owner of a motorvehicle that is required to be inspected under that section whoobtained a multi-year registration for the vehicle under division(A) of this section or rules adopted under that division has notobtained an a required inspection certificate for the vehicle in accordancewith that section in a year intervening between the years ofissuance and expiration of the multi-year registration in whichthe owner is required to have the vehicle inspected and obtain aninspection certificate for it under division (F)(1)(a) of thatsection, the registrar in accordance with Chapter 119. of theRevised Code shall issue an order to the owner impounding thecertificate of registration and identification license plates forthe vehicle. The order also shall prohibit the owner fromobtaining or renewing a multi-year registration for any vehiclethat is required to be inspected under that section, the districtof registration of which is or is located in the same county asthe county named in the order during the number of years afterexpiration of the current multi-year registration that equals thenumber of years for which the current multi-year registration wasissued.

An order issued under this division shall require the ownerto surrender to the registrar the certificate of registration andlicense plates for the vehicle named in the order within fivedaysafter its issuance. If the owner fails to do so within thattime,the registrar shall certify that fact to the county sherifforlocal police officials who shall recover the certificate ofregistration and license plates for the vehicle.

(C) Upon the occurrence of either of the followingcircumstances, the registrar in accordance with Chapter 119. ofthe Revised Code shall issue to the owner a modified orderrescinding the provisions of the order issued under division (B)of this section impounding the certificate of registration andlicense plates for the vehicle named in that original order:

(1) Receipt from the director of environmental protectionofa subsequent notice under ~~division (J) of~~ rules adopted under section 3704.14 oftheRevised Code that the owner has obtained the inspectioncertificate for the vehicle as required under ~~division (F)(1)(a)of that section~~ those rules;

(2) Presentation to the registrar by the owner of therequired inspection certificate for the vehicle.

(D) The owner of a motor vehicle for which the certificateof registration and license plates have been impounded pursuanttoan order issued under division (B) of this section, uponissuanceof a modified order under division (C) of this section,may applyto the registrar for their return. A fee of twodollars and fiftycents shall be charged for the return of thecertificate ofregistration and license plates for each vehiclenamed in theapplication.

Sec. 4503.471. (A) Any person who is amember in goodstanding of the international association offirefighters mayapply to the registrar of motor vehicles forthe registration ofany passenger car, noncommercial vehicle, ~~motor home~~ recreational vehicle, orothervehicle of a class approved by the registrar that theperson ownsor leases and the issuance of international association offirefighterslicense plates. Theapplication shall be accompaniedby thewritten evidence that the registrar may require by ruleshowingthat the person is a member in good standing of theinternational association of firefighters. The application forinternationalassociation of firefighters license plates may becombined with a request foraspecial reserved license plate undersection 4503.40 or 4503.42 of the RevisedCode.

Upon receipt of an application for registration of avehicleunder this section andpresentation of satisfactory evidenceshowing that the person isa member in good standing of theinternational association offirefighters, theregistrar shallissue to the applicant theappropriate vehicle registrations, setsof license plates andvalidation stickers, or validation stickersalone whenrequired by section 4503.191 of theRevisedCode.

In addition to theletters and numbers ordinarily inscribedon the license plates, internationalassociation of firefighterslicense platesshall be inscribed with aMaltese cross emblemdesignedby the international association of firefighters andapprovedby the registrar. International association offirefighters license platesshall bear countyidentificationstickers that identify the county of registration by name ornumber.

The license plates and validation stickersshall be issuedupon payment of the regular license fee asprescribed undersection 4503.04 of the RevisedCode, payment of any local motorvehicletax levied under Chapter 4504. of theRevised Code, andpayment of anadditional fee of ten dollarsfor the purpose ofcompensating the bureau of motor vehicles foradditional servicesrequired in the issuing of license platesunder this section. Ifthe application for international association offirefighterslicenseplates is combined with a request for a special reservedlicense plate undersection 4503.40 or 4503.42 of the RevisedCode, the license plate and validation stickershall be issuedupon payment of the fees and taxes contained in this divisionandthe additional fee prescribed under section 4503.40 or 4503.42 ofthe Revised Code. Theregistrar shall deposit the additional feeof ten dollars in the state bureauof motorvehicles fund createdby section 4501.25 of theRevised Code.

Whenever a person no longer is eligible to be issuedinternational association of firefighters license plates, theperson shallsurrender the international association offirefighters license plates to thebureau in exchange for licenseplates without theMaltese cross emblem described in thissection.A fee of five dollars shall becharged for the services requiredin the issuing of replacementplates when a person no longer iseligible to be issuedinternational association of firefighterslicense plates.

A person may make application for international associationof firefighterslicense platesat any time of year, and theregistrar shall issue international associationof firefighterslicense plates and replacement plates at any time of year.

(B) No person who is not a member in goodstanding of theinternational association of firefighters shallwillfully andfalsely represent that the person is amember in good standing ofthe international association offirefighters for the purpose ofobtaining international association offirefighters license platesunder this section. Noperson shall own or lease a vehiclebearing international association offirefighterslicense platesunlessthe person is eligible to be issued internationalassociation of firefighterslicenseplates.

Sec. 4503.48. Any person who is a member of the Ohionational guard or the reserves of the armed forces of the UnitedStates may apply to the registrar of motor vehicles for theregistration of any passenger car, noncommercial motor vehicle,~~motor home~~ recreational vehicle, or other vehicle of a class approved by the registrar that theperson owns or leases. The application shallbe accompanied by such written evidence that the person is a member of theOhio national guard or of the reserves as the registrar requires by rule.

Upon receipt of an application for registration of a motorvehicle under this section, presentation of satisfactoryevidenceof membership in the Ohio national guard or the reserves,and paymentof the regular license fees as prescribed under section 4503.04of the Revised Code and any local motor vehicle license taxleviedunder Chapter 4504. of the Revised Code, the registrar shall issue to theapplicant theappropriate motor vehicle registration and a set of licenseplates and a validation sticker, or a validation sticker alonewhen required by section 4503.191 of the Revised Code. Inaddition to the letters and numbers ordinarily inscribed thereon,the license plates shall be inscribed with identifying words ormarkings designed by the department of public safety. The license platesshall bear county identification stickers that identify the county ofregistration by name or number.

Sec. 4503.50. (A) The owner or lessee of any passenger car,noncommercial motor vehicle, ~~motor home~~ recreational vehicle, or other vehicle of a classapproved by the registrar of motor vehiclesmay apply tothe registrar for the registration of thevehicle and issuance offuture farmers of America license plates. Theapplication forfuture farmers of America license plates may be combinedwith a request for a special reserved license plate under section4503.40 or 4503.42 of the Revised Code. Uponreceipt of the completed applicationand compliance with division(B) of this section, the registrar shall issue to theapplicant the appropriate vehicle registration and a set offuture farmers of America licenseplates with a validation sticker or avalidation sticker alone when required by section 4503.191 of theRevised Code.

In addition to the letters and numbers ordinarily inscribedon the license plates, future farmers of Americalicense plates shall be inscribed withidentifying words or markingsrepresenting the future farmers of America and approved by theregistrar. Future farmers of America licenseplates shall bear county identification stickers that identify the county ofregistration by name or number.

(B) The future farmers of America license plates andvalidation sticker shall be issued upon receipt of a contributionas provided in division (C) of this section and uponpayment of the regular license tax as prescribed under section4503.04 of the Revised Code, a fee often dollars for the purpose of compensating the bureau ofmotor vehicles for additional services required in the issuing ofthe future farmers of America licenseplates, any applicable motor vehicletax levied under Chapter 4504. of the RevisedCode, and compliance with all other applicable lawsrelating to the registration of motor vehicles. If theapplication forfuture farmers of America license plates is combined witha request for a special reserved license plate under section4503.40 or 4503.42 of the Revised Code, thelicense plate and validation sticker shall be issued upon paymentof the contribution, fees, and taxes referred to or established in thisdivisionand the additional fee prescribed under section 4503.40 or4503.42 of the Revised Code.

(C) For each application for registration andregistration renewal the registrar receives under this section, theregistrar shall collect a contributionof fifteen dollars. The registrar shall transmit this contribution to the treasurerof state for deposit in the license plate contribution fund created insection 4501.21 of the Revised Code.

The registrar shall deposit the additional fee often dollars specified in division (B) of this sectionthat the applicant for registration pays for thepurpose of compensating the bureau for the additional servicesrequired in the issuing of the applicant'sfuture farmers of America license plates inthe state bureau of motor vehicles fund created in section4501.25 of the Revised Code.

Sec. 4503.53. Any person whoserved in the armed forces of the United States in SaudiArabia or Kuwait during Operation Desert Storm or Operation Desert Shield,in Panama during the invasion, in Grenada during the invasion, inLebanon during the invasion, during the Vietnam conflict, duringthe Korean conflict, during World War II, or during World War I,and who is on active duty or is an honorably discharged veteran mayapply to the registrar of motor vehicles for the registration of any passengercar, noncommercial motor vehicle, ~~motor home~~ recreational vehicle, or othervehicle of a class approved by the registrar the person owns orleases. The application shall be accompanied by such writtenevidence of the applicant's service as the registrarrequires by rule. In the case of an honorably dischargedveteran, the written evidence shall include a copy of the applicant'sDD-214 form or an equivalent document.

Upon receipt of an application for registration of a motorvehicle under this section, presentation of satisfactory evidenceof military service in Saudi Arabia or Kuwait during OperationDesert Storm or Operation Desert Shield, in Panama during theinvasion, in Grenada during the invasion, in Lebanon during theinvasion, during the Vietnam conflict, during the Koreanconflict, during World War II, or during World War I, and payment ofthe regular license tax as prescribed under section 4503.04 ofthe Revised Code and any applicable local tax levied under Chapter4504. of the Revised Code, the registrar shall issue to the applicant theappropriate motor vehicle registration and a set of licenseplates and a validation sticker, or a validation sticker alonewhen required by section 4503.191 of the Revised Code. Inaccordance with rules adopted by the registrar, each licenseplate shall be inscribed with identifying letters or numerals andthe word "VETERAN"; in addition, each license plateshall beinscribed with a design and words indicating service in SaudiArabia, Kuwait, Panama, Grenada, or Lebanon, or during theVietnam conflict, the Korean conflict, World War II, or World WarI.

Sec. 4503.571. Any person who has been awarded the purpleheart may apply to the registrar of motor vehicles for theregistration of any passenger car, noncommercial motor vehicle,~~motor home~~ recreational vehicle, or other vehicle of a class approved by the registrarthat the person owns or leases. The application shall be accompanied by suchdocumentary evidence in support of the award as the registrar may require. The application may be combined with a request for a special reservedlicense plate under section 4503.40 or 4503.42 of theRevised Code.

Upon receipt of an application for registration of a motorvehicle under this section and the required taxes and fees, andupon presentation of the required supporting evidence of the award ofthe purpleheart, the registrar shall issue to the applicant the appropriate motorvehicle registration and a set of license plates and a validation sticker, ora validation sticker alone when required by section 4503.191 of the RevisedCode.

In addition to the letters and numbers ordinarily inscribedon the license plates, thelicense plates shall be inscribed with the words "PURPLE HEART." Thelicense plates shall bear county identification stickers that identify thecounty of registration by name or number.

The license plates and validation stickers shall be issued upon payment of theregular license fee required by section 4503.04 of the Revised Code, paymentof any local motor vehicle license tax levied under Chapter 4504. of theRevised Code, andcompliance withall other applicable laws relating to the registration of motor vehicles. Ifthe application is combined with a request for a special reserved licenseplate under section 4503.40 or 4503.42 of the Revised Code, the license platesand validation sticker shall be issued upon payment of thefees and taxes referred to in this section and the additional fee prescribedunder section 4503.40 or 4503.42 of the Revised Code.

No person who is not a recipient of the purple heart shallwillfully and falsely represent that the person is a recipient of apurple heart for the purpose of obtaining license plates underthis section. No person shall own a motor vehicle bearinglicense plates under this section unless the person is eligibleto be issued those license plates.

Sec. 4503.59. The owner or lessee of any passenger car, noncommercialmotor vehicle, ~~motor home~~ recreational vehicle, or other vehicleof a class approved bythe registrar of motor vehicles who is certified by the Pearl Harbor survivorsassociation as having survived the attack on Pearl Harbor may apply to theregistrar for the registration of the vehicle and issuance of Pearl Harborlicense plates. The application for Pearl Harbor license plates may becombined with a request for a special reserved license plate under section4503.40 or 4503.42 of the Revised Code. Upon receipt of the completedapplication, presentation by the applicant ofdocumentation issued by the PearlHarbor survivors association certifying thatthe applicant survived the attack on PearlHarbor, and compliance by the applicant withthis section, the registrar shall issue to the applicant the appropriatevehicle registration and a set of PearlHarbor license plates with a validationsticker or a validation sticker alone when required by section 4503.191 of theRevised Code.

In addition to the letters and numbers ordinarily inscribed thereon,Pearl Harbor license plates shall be inscribed with the words "Pearl Harbor"and a symbol or logo designed by the Pearl Harbor survivors association andapproved by the registrar. Pearl Harbor license plates shall bear countyidentification stickers that identify the county of registration by name ornumber.

Pearl Harbor license plates and validation stickers shall be issued uponpayment of the regular license fee required by section 4503.04 of the RevisedCode, payment of any local motor vehicle license tax levied under Chapter4504. of the Revised Code,andcompliance with all other applicable laws relating to the registration ofmotor vehicles. If the application for Pearl Harbor license plates iscombined with a request for a special reserved license plate under section4503.40 or 4503.42 of the Revised Code, the license plates and validationsticker shall be issued upon payment of the fees and taxes contained in thissection and the additional fee prescribed under section 4503.40 or 4503.42 ofthe Revised Code.

Sec. 4503.73. (A) The owner or lessee of any passengercar,noncommercial motor vehicle, ~~motor home~~ recreational vehicle, or other vehicle ofaclassapproved by the registrar of motor vehicles mayapply totheregistrar for the registration of the vehicle andissuance of"theleader in flight" license plates. Theapplication for"theleaderin flight" license plates may becombined with a requestfor aspecial reserved license plate undersection 4503.40 or4503.42 ofthe Revised Code. Uponreceipt of the completedapplication andcompliance with division (B)of this section, theregistrar shallissue to the applicant the appropriatevehicleregistration and asetof"the leader in flight" license plateswith a validationsticker or avalidation sticker alonewhenrequired by section4503.191 of the Revised Code.

In addition to the letters and numbers ordinarily inscribedthereon,"the leader in flight" license plates shall be inscribedwith the words"the leader in flight" and illustrations of a spaceshuttle in a vertical position and the Wright"B" airplane."Theleader in flight" license plates shall bear county identificationstickers that identify the county of registration by name ornumber.

(B)"The leader in flight" license plates and validationstickershall be issued uponreceipt of a contribution as providedin division(C) of this section andpayment of the regular licensetax as prescribedunder section 4503.04 of the Revised Code, a feeof tendollars for the purpose of compensating the bureau of motorvehicles foradditional services required in the issuing of"theleader in flight" license plates, any applicable motor vehicle taxleviedunder Chapter 4504. of the Revised Code, andcompliancewith all other applicable laws relating to the registration ofmotor vehicles. If the application for"the leader in flight"license plates is combined witha request for a special reservedlicense plate under section4503.40 or 4503.42 of the RevisedCode, the license plateand validation sticker shall be issuedupon payment of the fees and taxesreferred to or established inthis division and the additionalfee prescribed under section4503.40 or 4503.42 of the RevisedCode.

(C)For each application for registration and registrationrenewal received under this section, the registrar shall collect acontribution of fifteen dollars. The registrar shall transmitthiscontribution to the treasurer of state for deposit in thelicense plate contribution fund created in section 4501.21 ofthe Revised Code.

The registrar shall deposit the additional fee of ten dollarsspecified in division (B) of this section that the applicant forregistration voluntarily pays for the purpose of compensating thebureau forthe additionalservices required in the issuing of theapplicant's"the leader inflight" license plates in the statebureau of motor vehicles fundcreated in section 4501.25 of theRevised Code.

Sec. 4503.85. (A) The owner or lessee of any passenger car,noncommercial motor vehicle, ~~motor home~~ recreational vehicle, or other vehicle of aclass approvedby the registrar of motor vehicles may apply totheregistrar for the registration of the vehicle and issuance of"Fish Lake Erie" license plates. The applicationfor "Fish Lake Erie"license plates may be combinedwith arequest for a special reserved license plate under section4503.40or 4503.42 of the Revised Code. Upon receipt of thecompletedapplication and compliance with division (B) of thissection, theregistrar shall issue to the applicant theappropriate vehicleregistration, aset of "Fish Lake Erie" license plates,and a validation sticker, or a validationsticker alone whenrequiredby section 4503.191 of the RevisedCode.

In addition to the letters and numbers ordinarily inscribedon thelicense plates, "Fish Lake Erie" licenseplatesshall beinscribed with identifying words or markings designed by the Ohio sea grant college program andapproved bytheregistrar. "Fish Lake Erie" license plates shallbearcounty identification stickers that identify the county ofregistration by name or number.

(B) "Fish Lake Erie" license plates and avalidationsticker or, when applicable, a validation sticker aloneshall beissued upon receipt of an application for registration ofa motorvehicle submitted under this section and a contribution asprovided in division (C) of this section, payment of the regularlicense tax as prescribed under section 4503.04 of the RevisedCode, any applicable motor vehicle taxlevied under Chapter 4504.of the Revised Code, andanadditional fee of ten dollars, andcompliance with all other applicable lawsrelating to theregistration of motor vehicles. If the application for "Fish Lake Erie" license plates is combined with a requestfor aspecial reserved license plate under section 4503.40 or4503.42 ofthe Revised Code, the license plates and validationstickerorvalidation sticker alone shall be issued upon paymentof the feesand taxesreferred to or established in this divisionplus theadditional fee prescribed in section 4503.40 or 4503.42of theRevised Code.

(C) For each application for registration and registrationrenewal that the registrar receives under this section, theregistrarshall collect a contribution of fifteen dollars. Theregistrarshall deposit this contribution into the state treasury to the credit of the licenseplate contributionfundcreated in section 4501.21 of the Revised Code.

The additional fee of ten dollars described in division (B)ofthis section shall be for the purpose of compensating thebureau of motorvehicles for additional services required inissuinglicense plates under this section. The registrar shalldeposit that fee into thestate treasury to the credit of the state bureau of motor vehicles fundcreated by section 4501.25 of the Revised Code.

Sec. 4503.91. (A) The owner or lessee of any passenger car,noncommercial motor vehicle, ~~motor home~~ recreational vehicle, or other vehicle of aclass approvedby the registrar of motor vehicles may apply totheregistrar for the registration of the vehicle and issuance of"choose life" license plates. The application for "choose life"license plates may be combined with a request for a specialreserved license plate under section 4503.40 or 4503.42 of theRevised Code. Upon receipt ofthe completed application andcompliance with divisions (B) and (C) of thissection, the registrar shallissue to the applicant the appropriate vehicleregistration and asetof "choose life" license plates with a validation sticker or avalidationsticker alone whenrequired by section 4503.191 of theRevised Code.

In addition tothe letters and numbers ordinarily inscribedon license plates, "choose life"license plates shall be inscribedwith the words "chooselife" and a marking designed by "choose life, inc.,"a private, nonprofit corporation incorporated in the state of Florida. The registrar shall review the design and approve it if the design is feasible. If the design is not feasible, the registrar shall notify "choose life, inc," and the organization may resubmit designs until a feasible one is approved."Choose life" license plates shall bear countyidentificationstickers that identify the county ofregistration by name ornumber.

(B) "Choose life" license plates and a validation sticker, or a validation sticker alone,shallbe issued upon receipt of a contribution as provided indivision(C) of this section and upon payment of theregularlicense tax prescribed in section 4503.04 of the RevisedCode, anyapplicable motor vehicle taxlevied under Chapter 4504. of theRevised Code, any applicable additional fee prescribed by section 4503.40 or 4503.42 of the Revised Code, a fee often dollars for the purpose of compensatingthe bureau of motor vehicles for additional services required inthe issuing of "choose life" license plates, andcompliance withall other applicable laws relating to theregistration of motorvehicles.

(C)(1) For each application for registration and registrationrenewal received under this section, the registrar shall collect acontribution of twenty dollars. The registrar shalltransmitthis contribution to the treasurer of state for depositin the"choose life" fund created in section 3701.65of theRevised Code.

(2) The registrar shall deposit the additional fee of ten dollarsspecified in division (B) of this section for the purpose ofcompensating the bureau for the additional services required inissuing"choose life" license plates in the state bureauof motorvehicles fund created in section 4501.25 of the RevisedCode.

Sec. 4505.06. (A)(1) Application for a certificate oftitleshall be made in a form prescribed by the registrar ofmotorvehicles and shall be sworn to before a notary public orotherofficer empowered to administer oaths. The applicationshall befiled with the clerk ofany court of common pleas. Anapplication for acertificate of title may be filedelectronically byanyelectronicmeans approved by the registrarinany countywith the clerk of the court of common pleasofthat county. Anypayments required bythis chaptershall beconsidered asaccompanying anyelectronically transmittedapplication whenpayment actually isreceived by the clerk.Payment of any fee ortaxes may be madebyelectronic transferoffunds.

(2) The application for a certificate of title shall beaccompaniedby the fee prescribed in section 4505.09 of theRevised Code. The fee shall be retained by the clerk whoissuesthecertificate of title and shall be distributed inaccordancewith that section. If a clerk of a court of commonpleas, otherthan the clerk of the court ofcommon pleas of anapplicant'scounty of residence, issues a certificate oftitle totheapplicant, the clerk shall transmit data related to thetransaction to the automated title processingsystem.

(3) If a certificate of title previously has been issued foramotor vehicle in this state,the application for acertificate of title also shall be accompanied by thatcertificateof title duly assigned, unless otherwise provided inthis chapter.If a certificate of title previously has not beenissued for themotor vehicle in this state, the application,unless otherwiseprovided in this chapter, shall be accompaniedby a manufacturer'sor importer's certificate or by a certificateof titleof anotherstatefrom which the motor vehicle wasbrought into this state.Iftheapplication refers to a motorvehicle last previouslyregisteredin another state, theapplication also shall beaccompanied bythe physical inspectioncertificate required bysection 4505.061of the Revised Code.Ifthe application is madeby two personsregarding a motorvehiclein which they wish toestablish jointownership withright ofsurvivorship, they may doso as providedin section2131.12 ofthe Revised Code.If the applicant requests adesignation ofthemotor vehicle in beneficiary form so that uponthe death oftheowner of the motor vehicle, ownership of themotor vehiclewillpass to a designated transfer-on-deathbeneficiary orbeneficiaries, the applicant may do so as providedin section2131.13 of the Revised Code. A person who establishesownershipof a motor vehicle that is transferable on death inaccordancewith section 2131.13 of the Revised Code may terminatethat typeof ownership or change the designation of thetransfer-on-deathbeneficiary or beneficiaries by applying for acertificate oftitle pursuant to this section. The clerkshallretaintheevidence of titlepresented by the applicant andonwhich thecertificate of titleis issued,except that, if anapplicationfor acertificate oftitle isfiled electronicallybyanelectronic motor vehicledealer on behalf of thepurchaserof amotor vehicle, the clerkshall retain the completedelectronicrecord to which the dealerconverted the certificateof titleapplication and other requireddocuments. Theregistrar, after consultationwith the attorney general, shalladopt rules that govern thelocation at which, and the manner inwhich, are stored the actualapplication and all other documentsrelating to the sale of amotor vehicle when an electronic motorvehicle dealer files theapplication for a certificate of titleelectronically on behalf ofthe purchaser.

The clerk shall use reasonablediligence inascertainingwhether or not the facts in theapplicationfor acertificate oftitle are true by checking the application anddocumentsaccompanying itor theelectronic record to which adealerconverted theapplication andaccompanying documentswiththerecords of motor vehicles in the clerk'soffice.If theclerk issatisfied that the applicant is theowner of themotorvehicleand that the application is in theproper form,theclerk,withinfive business days after theapplication isfiled and except as provided in section 4505.021 of the Revised Code, shallissue aphysicalcertificate of titleover theclerk's signatureandsealed with the clerk's seal,unlesstheapplicantspecificallyrequests the clerk not to issue aphysicalcertificate of titleand instead toissue an electroniccertificate of title. Forpurposes of the transfer of acertificateof title, if the clerkis satisfied that the securedparty has duly dischargeda liennotation but has not canceledthe lien notation withaclerk, theclerk may cancel the liennotation onthe automated titleprocessing system and notify theclerk of thecounty of origin.

(4) In the case of the sale of a motor vehicle to a generalbuyeror userby a dealer, by a motor vehicle leasing dealersellingthemotorvehicle to the lessee or, in a case in whichtheleasingdealer subleased themotor vehicle, the sublessee,atthe end ofthe lease agreement or subleaseagreement, or by amanufacturedhomebroker, the certificate of title shall beobtained in thename of the buyer by the dealer, leasingdealer,ormanufactured homebroker, as the case may be, uponapplicationsigned bythe buyer. The certificate of title shallbe issued, orthe processof entering the certificate of titleapplicationinformation into the automated title processingsystem if aphysicalcertificate of title is not to be issuedshallbecompleted, withinfive business days after theapplication fortitle is filed withthe clerk. If the buyer ofthe motor vehiclepreviously leased the motorvehicle andisbuying the motorvehicle at the end of the lease pursuant to thatlease,thecertificate of title shall be obtained in the name ofthe buyer bythemotor vehicle leasing dealer who previouslyleased the motorvehicle to thebuyer or by the motor vehicleleasing dealer whosubleased the motor vehicleto the buyerunder a subleaseagreement.

In all other cases, except as provided insection 4505.032and division (D)(2)of section 4505.11 of the Revised Code, suchcertificates shallbe obtained by the buyer.

(5)(a)(i) If the certificate of title is being obtained inthe name of the buyer by a motor vehicle dealer or motor vehicleleasing dealer and there is a security interest to be noted on thecertificate of title, the dealer or leasing dealer shall submitthe application for the certificate of title and payment of theapplicable tax to a clerk within seven business days after thelater of the delivery of the motor vehicle to thebuyer or thedate the dealer or leasing dealer obtains themanufacturer's orimporter's certificate, or certificate of titleissued in the nameof the dealer or leasing dealer, for the motor vehicle.Submissionof the application for thecertificate of title and payment of theapplicable tax within therequired seven business days may beindicated by postmark orreceipt by a clerk within that period.

(ii) Upon receipt of the certificate of title with thesecurity interest noted on its face, the dealer or leasing dealershall forward the certificate of title to the secured party at thelocation noted in the financing documents or otherwise specifiedby the secured party.

(iii) A motor vehicle dealer or motor vehicle leasingdealeris liable to a secured party for a late fee of ten dollarsper dayfor each certificate of title application and payment oftheapplicable tax that is submitted to a clerk more than sevenbusiness daysbut less than twenty-one days after the later of thedelivery of the motor vehicle to the buyer or the date thedealeror leasing dealer obtains the manufacturer's or importer'scertificate, or certificate of title issued in the name of thedealer or leasing dealer, for the motor vehicle and,from then on,twenty-five dollars per day until the applicationand applicabletax are submitted to a clerk.

(b) In all cases oftransfer ofa motor vehicle, theapplication for certificate oftitle shall befiled withinthirty days after the assignment ordelivery of themotorvehicle. If an application for acertificate of title isnotfiled withinthe periodspecified in division (A)(5)(b) ofthissection, the clerkshall collect a fee offive dollars fortheissuance of thecertificate, except that nosuch fee shallberequired from amotor vehicle salvage dealer,as defined indivision (A) ofsection 4738.01 of the RevisedCode, whoimmediately surrendersthe certificate of title forcancellation. The fee shall be inaddition to all other feesestablished by this chapter, and shallbe retained by the clerk.Theregistrar shall provide, on thecertificate of title formprescribed by section 4505.07 of theRevised Code, languagenecessary to give evidence of the date onwhich the assignment ordelivery of the motor vehicle was made.

(6) As used in division(A) of this section,"leaseagreement,""lessee," and"subleaseagreement" have the samemeanings as in section 4505.04of the Revised Code.

(B)(1) The clerk, except as provided in this section, shallrefuse to accept for filing any application for a certificate oftitle and shall refuse to issue a certificate of title unless thedealer or manufactured home broker or the applicant, in cases inwhich thecertificate shall be obtained by the buyer, submitswiththeapplication payment of the tax levied by or pursuant toChapters5739. and 5741. of the Revised Codebased on thepurchaser's county of residence. Upon payment of the tax inaccordance with division (E) of this section, the clerk shallissue a receipt prescribed by the registrar and agreed upon by thetaxcommissioner showing payment of the tax or a receipt issuedbythecommissioner showing the payment of the tax. Whensubmittingpayment of thetax to the clerk, a dealer shallretain anydiscount to which the dealer isentitled undersection 5739.12 ofthe Revised Code.

(2) For receiving and disbursing such taxes paid to the clerkbya resident of the clerk's county,the clerk may retain a poundagefee of one and one one-hundredthper cent,and the clerkshallpay the poundage feeinto the certificate of titleadministration fund created bysection 325.33 of theRevisedCode.The clerk shall not retain apoundage fee from payments oftaxes by persons who do not residein the clerk's county.

A clerk, however, may retain from the taxes paid to theclerkan amount equal to the poundage fees associated withcertificatesof title issued by other clerks of courts of commonpleas toapplicants who reside in the first clerk's county. Theregistrar,in consultation with the tax commissioner and theclerks of thecourts of common pleas, shall develop a report fromthe automatedtitle processing system that informs each clerk ofthe amount ofthe poundage fees that the clerk is permitted toretain from thosetaxes because of certificates of title issued bythe clerks ofother counties to applicants who reside in the firstclerk'scounty.

(3) In the case of casual sales of motor vehicles, as definedinsection 4517.01 of the Revised Code, the pricefor the purpose ofdetermining the tax shall be the purchaseprice on the assignedcertificate of title executedby the seller and filed with theclerk by thebuyer on a form to be prescribed by the registrar,which shallbe prima-facie evidence of the amount for thedetermination of the tax.

(4) Each county clerk shall forward to the treasurer of state all sales and use tax collections resulting from sales of motor vehicles, off-highway motorcycles, and all-purpose vehicles during a calendar week on or before the Friday following the close of that week. If, on any Friday, the offices of the clerk of courts or the state are not open for business, the tax shall be forwarded to the treasurer of state on or before the next day on which the offices are open. Every remittance of tax under division (B)(4) of this section shall be accompanied by a remittance report in such form as the tax commissioner prescribes. Upon receipt of a tax remittance and remittance report, the treasurer of state shall date stamp the report and forward it to the tax commissioner. If the tax due for any week is not remitted by a clerk of courts as required under division (B)(4) of this section, the commissioner may require the clerk to forfeit the poundage fees for the sales made during that week. The treasurer of state may require the clerks of courts to transmit tax collections and remittance reports electronically.

(C)(1) If the transferor indicates on the certificate oftitlethat the odometer reflects mileage in excess of thedesignedmechanical limit of the odometer, the clerk shall enterthephrase"exceeds mechanical limits" following the mileagedesignation. Ifthe transferor indicates on the certificate oftitle that theodometer reading is not the actual mileage, theclerk shall enterthe phrase"nonactual: warning -odometerdiscrepancy" followingthe mileage designation. The clerk shallusereasonable care intransferring the information suppliedbythe transferor, but isnot liable for any errors or omissionsofthe clerk or those ofthe clerk's deputies in theperformance ofthe clerk's dutiescreated by this chapter.

The registrar shall prescribe an affidavit in which thetransferor shall swear to the true selling price and, except asprovided in this division, the true odometer reading of the motorvehicle. The registrar may prescribe an affidavit in which theseller and buyer provide information pertaining to the odometerreading of the motor vehicle in addition to that required by thissection, as such information may be required by the United Statessecretary of transportation by rule prescribed under authority ofsubchapter IV of the"Motor Vehicle Information and Cost SavingsAct," 86 Stat. 961 (1972), 15 U.S.C. 1981.

(2) Division (C)(1) of thissection does not require thegiving of informationconcerning the odometer and odometerreadingof a motor vehiclewhen ownership of a motor vehicle isbeingtransferred as aresult of a bequest, under the laws ofintestatesuccession, to asurvivor pursuant tosection2106.18,2131.12, or 4505.10of the RevisedCode,to atransfer-on-death beneficiary or beneficiariespursuantto section2131.13 of the Revised Code, inconnectionwith thecreationof asecurity interest or for a vehicle with a gross vehicle weight rating of more than sixteen thousand pounds.

(D) When the transfer to the applicant was made in someother state or in interstate commerce, the clerk, except asprovided in this section, shall refuse to issue any certificateoftitle unless the tax imposed by or pursuant to Chapter5741.ofthe Revised Codebased on the purchaser's county of residencehasbeen paid as evidenced by a receipt issued by the taxcommissioner, orunless the applicant submits with theapplicationpayment ofthe tax. Upon payment of the tax inaccordance withdivision(E) of this section, the clerk shallissue areceiptprescribed by theregistrar and agreed upon bythe taxcommissioner, showingpayment of the tax.

Forreceiving anddisbursing such taxes paidto the clerkby a resident of the clerk's county, the clerkmay retain apoundagefee of oneand one one-hundredth per cent.Theclerkshall not retain a poundage fee from payments of taxes bypersonswho do not reside in the clerk's county.

When the vendor isnot regularlyengaged in thebusiness ofsellingmotorvehicles, the vendorshall not be required topurchase avendor'slicense or makereports concerningthosesales.

(E) The clerk shall accept any payment of a tax in cash, orbycashier's check, certifiedcheck, draft, money order, orteller check issued by anyinsured financial institution payableto the clerk and submitted with anapplicationfor a certificateof title under division (B)or (D) of this section. The clerkalso mayaccept payment of the tax by corporate, business, orpersonal check, creditcard, electronic transfer or wiretransfer,debit card, or any other acceptedform of payment madepayable tothe clerk. The clerk may require bonds,guarantees,or letters ofcredit to ensure the collection of corporate,business, orpersonalchecks. Any service fee charged by athird party to aclerk for the use ofany form of payment may bepaid by the clerkfrom the certificate of titleadministrationfund created insection 325.33 of the Revised Code, or may beassessed by theclerk upon the applicant as an additional fee.Uponcollection,the additional fees shall be paid by the clerkinto thatcertificate of title administration fund.

The clerk shall make a good faith effort to collect anypayment of taxesdue but not made because the payment wasreturnedor dishonored, but the clerkis not personally liablefor thepayment of uncollected taxes or uncollectedfees. Theclerkshallnotify the tax commissioner of any such payment oftaxes that isdue butnot made and shall furnishtheinformation to thecommissionerthat thecommissionerrequires.The clerk shall deductthe amount of taxes due but notpaid fromthe clerk's periodicremittance of tax payments, inaccordancewithprocedures agreedupon by the tax commissioner.Thecommissioner may collecttaxesdue by assessment in themannerprovided in section 5739.13 of theRevised Code.

Any person who presents payment that is returned ordishonored for anyreason is liable to the clerk for payment of apenalty over and above theamount of the taxes due. The clerkshall determine the amount of the penalty,and the penaltyshallbe nogreater than that amount necessary to compensate theclerkforbanking charges, legal fees, or other expensesincurred bytheclerk incollecting the returned or dishonoredpayment. Theremedies and proceduresprovided in this sectionare in additionto any other available civil orcriminalremedies. Subsequentlycollected penalties, poundagefees, andtitlefees, lessanytitlefeedue the state, from returned ordishonored paymentscollectedbythe clerk shall be paid into thecertificate oftitleadministration fund. Subsequentlycollected taxes, lesspoundagefees,shall be sent by the clerkto thetreasurer ofstateat the nextscheduled periodicremittance of tax payments,withinformation as thecommissioner may require. The clerkmayabateall or any part ofany penalty assessed under thisdivision.

(F) In the following cases, the clerk shall accept forfilingan application and shall issue a certificate of titlewithout requiring payment or evidence of payment of the tax:

(1) When the purchaser is this state or any of itspoliticalsubdivisions, a church, or an organization whosepurchases areexempted by section 5739.02 of the Revised Code;

(2) When the transaction in this state is not a retailsaleas defined by section 5739.01 of the Revised Code;

(3) When the purchase is outside this state or ininterstatecommerce and the purpose of the purchaser is not touse, store, orconsume within the meaning of section 5741.01 ofthe Revised Code;

(5) When the motor vehicle was purchased outside thisstatefor use outside this state;

(6) When the motor vehicle is purchased by a nonresidentofthis state for immediate removal from this state, and will bepermanently titled and registered in another state, as providedbydivision (B)(23) of section 5739.02 of the Revised Code,anduponpresentation of a copy of the affidavit provided bythatsection,and a copy of the exemption certificate providedbysection5739.03 of the Revised Code.

(G) An application, as prescribed by the registrarandagreed to by the tax commissioner, shall be filled out and swornto by the buyer of a motor vehicle in a casual sale. Theapplication shall contain the following notice in bold lettering:"WARNING TO TRANSFEROR AND TRANSFEREE (SELLER AND BUYER): Youarerequired by law to state the true selling price. A falsestatement is inviolation of section 2921.13 ofthe Revised Codeand is punishable by six months' imprisonment ora fine of up toone thousand dollars, or both. All transfers areaudited by thedepartment of taxation. The seller and buyer mustprovide anyinformation requested by the department of taxation. The buyermay be assessed any additional tax found to be due."

(H) For sales of manufactured homes or mobile homesoccurringon or after January 1, 2000, the clerk shall accept forfiling,pursuant toChapter 5739. of the Revised Code, anapplication for acertificate of title for a manufactured home ormobile homewithout requiring payment of any tax pursuant tosection5739.02, 5741.021, 5741.022, or 5741.023 of theRevisedCode, or a receipt issued bythe tax commissioner showing paymentof the tax. For sales ofmanufactured homes or mobile homesoccurring on or after January 1,2000, the applicant shall pay tothe clerk an additional fee of five dollarsfor each certificateof title issued by the clerk for amanufactured or mobile homepursuant to division (H) of section 4505.11 of the Revised Codeand for each certificate of title issued upon transfer ofownership ofthe home. The clerk shall credit the fee to thecountycertificate of title administration fund, and the fee shallbe used topaythe expenses of archivingthose certificatespursuant todivision(A) of section 4505.08and division (H)(3)of section4505.11 ofthe Revised Code. The tax commissionershalladminister any taxon a manufactured or mobile homepursuant toChapters 5739. and5741. of theRevised Code.

(I) Every clerk shall have the capability to transact byelectronic means all procedures and transactions relating to theissuance ofmotor vehicle certificates of title that aredescribedin the Revised Code as being accomplished byelectronic means.

Sec. 4506.03. (A) Except as provided in divisions (B) and (C) of this section, thefollowingshall apply:

(1) No person shall drive a commercial motor vehicle on ahighway in this state unlessthe person holds, and has in the person's possession, a validcommercialdriver'slicense with proper endorsements for the motorvehiclebeingdriven, issued by the registrar of motor vehicles, avalidexaminer's commercial driving permit issued under section4506.13of the Revised Code, a valid restricted commercialdriver'slicense and waiver for farm-related service industriesissuedunder section 4506.24 of the Revised Code, or a validcommercialdriver's license temporary instruction permit issued bytheregistrar and is accompanied by an authorized state driver'slicense examiner or tester or a person who has been issued andhasinthe person's immediate possession a current, validcommercialdriver's license with proper endorsements for the motorvehiclebeing driven.

(2) No person shall be issued a commercial driver'slicenseuntilthe person surrenders to the registrar of motorvehiclesall valid licenses issued tothe person by anotherjurisdictionrecognized by this state. The registrar shall report the surrender of a license to the issuing authority, together with information that a license is now issued in this state. The registrar shall destroy any such license that is not returned to the issuing authority.

(3) No person who has been a resident of this state forthirty days or longer shall drive a commercial motor vehicleunderthe authority of a commercial driver's license issued byanotherjurisdiction.

(B) Nothing in division (A) of this section applies to any qualifiedperson when engaged in the operation of any of the following:

(2) Fire equipment for a fire department, volunteer ornonvolunteer fire company, fire district, or joint fire district;

(3) A public safety vehicle used to provide transportationor emergency medical service for ill or injured persons;

(5) A commercial motor vehicle within the boundaries of aneligible unit oflocal government, if the person is employed bythe eligible unit of localgovernment and is operating thecommercial motor vehicle for the purpose ofremoving snow or icefrom a roadway by plowing, sanding, or salting, but onlyif eitherthe employee who holds a commercial driver's license issued underthis chapter and ordinarily operates a commercial motor vehiclefor thesepurposes is unable to operate the vehicle, or theemploying eligible unit oflocal government determines that a snowor ice emergency exists that requiresadditional assistance;

(6) A vehicleoperated for military purposes by any memberor uniformed employee of the armed forcesof the United States or theirreserve components, including theOhio national guard. This exceptiondoes not apply to UnitedStates reserve technicians.

(7) A commercial motor vehicle that is operatedfornonbusiness purposes. "Operated for nonbusiness purposes"meansthat the commercial motor vehicle is not used in commerceas"commerce" is defined in 49 C.F.R.383.5, as amended, and is notregulated by the public utilitiescommission pursuant to Chapter4919., 4921., or 4923. of theRevised Code.

(8)A motor vehicle that is designed primarily for thetransportation ofgoods and not persons, while that motor vehicleis being used for theoccasional transportation ofpersonalproperty byindividuals notfor compensation and not in thefurtherance of acommercialenterprise;

(C) Nothing contained in division (B)(5) of this sectionshall beconstrued aspreempting or superseding any law, rule, orregulation of this stateconcerning the safe operation ofcommercial motor vehicles.

Sec. 4506.07. (A) Every application for a commercialdriver's license, restricted commercial driver's license, or acommercial driver's temporary instruction permit, or a duplicateof such a license, shall be made upon a form approved andfurnished by the registrar of motor vehicles. Except as providedin section 4506.24 of the Revised Code in regard to a restrictedcommercial driver's license, the application shall be signed bythe applicant and shall contain the following information:

(1) The applicant's name, date of birth, social security accountnumber, sex, general description including height, weight, andcolor of hair and eyes, current residence, duration of residencein this state, country of citizenship, and occupation;

(2) Whether the applicant previously has been licensed tooperate a commercial motor vehicle or any other type of motorvehicle in another state or a foreign jurisdiction and, if so,when, by what state, and whether the license or drivingprivileges currently are suspended or revoked in anyjurisdiction, or the applicant otherwise has been disqualifiedfrom operating a commercial motor vehicle, or is subject to anout-of-service order issued under this chapter or any similar lawof another state or a foreign jurisdiction and, if so, the dateof, locations involved, and reason for the suspension,revocation, disqualification, or out-of-service order;

(3) Whether the applicant is afflicted with or sufferingfrom any physical or mental disability or disease that preventsthe applicant from exercising reasonable and ordinarycontrol over a motorvehicle while operating it upon a highway or is or has beensubject to any condition resulting in episodic impairment ofconsciousness or loss of muscular control and, if so, the natureand extent of the disability, disease, or condition, and thenames and addresses of the physicians attending theapplicant;

(4) Whether the applicant has obtained a medicalexaminer's certificate as required by this chapter;

(5) Whether the applicant has pending a citation forviolation of any motor vehicle law or ordinance except a parkingviolation and, if so, a description of the citation, the courthaving jurisdiction of the offense, and the date when the offenseoccurred;

(6) Whether the applicant wishes to certify willingness tomake an anatomical donation under section 2108.04 of the RevisedCode, which shall be given no consideration in the issuance of alicense;

(7) On and after May 1, 1993, whether the applicant hasexecuted a valid durable power of attorney for health carepursuant to sections 1337.11 to 1337.17 of the Revised Code orhas executed a declaration governing the use or continuation, orthe withholding or withdrawal, of life-sustaining treatmentpursuant to sections 2133.01 to 2133.15of the Revised Code and, if theapplicant has executed either type of instrument, whether theapplicant wishes the license issued to indicate thatthe applicant has executed the instrument.

(B) Every applicant shall certify, on a form approved andfurnished by the registrar, all of the following:

(1) That the motor vehicle in which the applicant intendsto take the driving skills test is representative of the type ofmotor vehicle that the applicant expects to operate as a driver;

(2) That the applicant is not subject to anydisqualification or out-of-service order, or license suspension,revocation, or cancellation, under the laws of this state, ofanother state, or of a foreign jurisdiction and does not havemore than one driver's license issued by this or another state ora foreign jurisdiction;

(3) Any additional information, certification, or evidencethat the registrar requires by rule in order to ensure that theissuance of a commercial driver's license to the applicant is incompliance with the law of this state and with federal law.

(C) Every applicant shall execute a form, approved andfurnished by the registrar, under which the applicant consents tothe release by the registrar of information from the applicant'sdriving record.

(D) The registrar or a deputy registrar, in accordance withsection3503.11 of the Revised Code, shall register as an elector any applicantfor a commercial driver's license or for a renewal or duplicateof such a license under this chapter, if the applicant iseligible and wishes to be registered as an elector. The decision of anapplicant whether to register as an elector shall be given no consideration inthe decision of whether to issue the applicant a license ora renewal or duplicate.

(E) The registrar or a deputy registrar, in accordance withsection3503.11 of the Revised Code, shall offer the opportunity of completinga notice of change of residence or change of name to any applicant for acommercialdriver's license or for a renewal or duplicate of such a licensewho is a resident of this state, if the applicant is a registeredelector who has changed the applicant's residence or nameand has not filed such a notice.

(F) In considering any application submitted pursuant to this section, the bureau of motor vehicles may conduct any inquiries necessary to ensure that issuance or renewal of a commercial driver's license would not violate any provision of the Revised Code or federal law.

Sec. 4506.101. Notwithstanding any provision of the Revised Code, the bureau of motor vehicles shall not issue or renew a commercial driver's license if issuance or renewal of the license would violate federal law.

Sec. 4506.161. No court shall issue an order granting limited driving privileges for operation of a commercial motor vehicle to any person whose driver's license or commercial driver's license has been suspended or who has been disqualified from operating a commercial motor vehicle.

Sec. 4511.191. (A)(1) "Physical control" has the samemeaning as in section 4511.194 of the Revised Code.

(2) Any person who operates a vehicle, streetcar, ortrackless trolley upona highway or any public or private propertyused by the publicfor vehicular travel or parking within thisstateor who is in physical control of a vehicle,streetcar, ortrackless trolley shall be deemedto have givenconsent to achemical test or tests of theperson'swhole blood,blood serum orplasma, breath, or urinetodetermine the alcohol,drug, oralcohol and drugcontent of theperson'swhole blood,blood serumor plasma,breath, or urineifarrestedforaviolation ofdivision (A) or(B) ofsection 4511.19 of the RevisedCode,section 4511.194 oftheRevised Code or a substantially equivalent municipal ordinance, or a municipal OVIordinance.

(3) The chemical test or testsunder division (A)(2) of thissection shall beadministered at the request of alawenforcementofficer having reasonablegrounds to believe thepersonwasoperatingor in physical control of avehicle,streetcar, ortrackless trolley inviolation of a division,section, orordinance identified indivision (A)(2) of thissection. The lawenforcement agency bywhich theofficer isemployed shalldesignate which of the testsshall beadministered.

(4) Any person who is dead or unconscious, or whootherwiseis in a condition rendering the person incapable ofrefusal,shallbe deemed to haveconsentedas providedindivision (A)(2) ofthis section, and the test ortests may beadministered, subjectto sections 313.12 to 313.16 ofthe RevisedCode.

(B)(1) Upon receipt of the sworn report ofalawenforcementofficerwho arrested a person for a violation ofdivision (A) or (B) of section 4511.19 of the Revised Code,section 4511.194 of the Revised Code or a substantially equivalent municipal ordinance, or a municipal OVI ordinancethat was completed and sent to the registrar and a court pursuantto section4511.192 of theRevised Code in regard to aperson whorefused to take thedesignated chemical test, theregistrar shallenter into theregistrar's records the factthat the person'sdriver's orcommercial driver's license or permit or nonresidentoperatingprivilege was suspended by the arresting officer underthisdivision and that section and the period of thesuspension,as determined underthissection. The suspension shall besubject to appeal asprovided in section4511.197 of the RevisedCode. The suspensionshall be for whichever of thefollowingperiods applies:

(a)Except when division (B)(1)(b), (c), or (d) ofthissection applies and specifies a different class or length ofsuspension,the suspension shall bea class C suspension for theperiod of time specified indivision (B)(3) of section 4510.02 ofthe Revised Code.

(b) If the arrested person, withinsix years of thedateonwhich the person refused the request to consent to thechemicaltest,had refused one previous request to consent to achemicaltest, the suspension shall bea class B suspension imposed forthe period of timespecified in division (B)(2) of section 4510.02of the RevisedCode.

(c) If the arrested person, withinsix years of thedateonwhich the person refused the request to consent to thechemicaltest,had refused two previous requests to consent to achemicaltest,the suspension shall bea class A suspension imposed forthe period of timespecified in division (B)(1) of section 4510.02of the RevisedCode.

(d) If the arrested person, withinsix years of thedateonwhich the person refused the request to consent to thechemicaltest,had refused three or more previous requests toconsent to achemical test, the suspension shall befor fiveyears.

(2)The registrar shall terminate a suspension of thedriver's or commercial driver's licenseor permit of a resident orof the operating privilege of a nonresident, or adenial of adriver's or commercialdriver's license or permit, imposedpursuant to division (B)(1) ofthissection upon receipt of noticethat the person has entered aplea of guilty to, or that the person has beenconvicted after entering a plea of no contest to, operating a vehicle in violationof section 4511.19ofthe Revised Code or in violation of a municipalOVI ordinance,if the offense for which the conviction is had ortheplea isentered arose from the same incident that led to the suspension ordenial.

The registrar shall credit against any judicial suspension ofaperson's driver's or commercial driver's license or permit ornonresident operating privilege imposed pursuant to section4511.19 of the Revised Code, orpursuant to section 4510.07 of theRevised Code for a violation of a municipal OVIordinance, anytime during which the person serves a related suspensionimposedpursuant to division (B)(1) of this section.

(C)(1) Upon receipt of the sworn report of thelawenforcementofficerwho arrested a person for a violation ofdivision (A) or(B) of section 4511.19 of the Revised Code or amunicipal OVIordinance that was completed and sent to theregistrar and a courtpursuantto section4511.192 of the Revised Code in regard to apersonwhose testresults indicate that the person'swhole blood,bloodserum orplasma, breath, or urinecontainedat least theconcentrationof alcoholspecified indivision (A)(1)(b), (c), (d), or (e) of section 4511.19 of theRevised Code, the registrarshallenter into the registrar'srecords the fact that theperson'sdriver's orcommercialdriver'slicense or permit ornonresidentoperating privilege wassuspendedby the arrestingofficer underthisdivisionand section4511.192 of the Revised Code and theperiod of thesuspension, asdeterminedunder divisions (F)(1) to(4) of thissection. Thesuspensionshall be subject to appeal asprovided in section4511.197 of the Revised Code. Thesuspensiondescribed inthis division does not apply to, and shallnot beimposed upon, aperson arrested for a violation of section4511.194of the RevisedCode or a substantially equivalent municipal ordinance who submits to a designated chemicaltest.Thesuspensionshallbe for whichever of the followingperiodsapplies:

(a) Except when division(C)(1)(b),(c), or (d) of thissectionapplies and specifies a differentperiod, the suspensionshall bea class E suspension imposed for theperiod of timespecified in division (B)(5) of section 4510.02 ofthe RevisedCode.

(b) The suspension shall bea class C suspension for theperiod of timespecified in division(B)(3) of section 4510.02 ofthe Revised Code ifthe person hasbeen convictedof or pleadedguilty to, within six years ofthedate the testwas conducted,one violation ofdivision (A) or (B) of section 4511.19 of theRevisedCode or one other equivalentoffense.

(c) If, within six years ofthe date the test wasconducted,the person has been convictedof or pleaded guilty totwoviolations of a statuteor ordinancedescribed in division(C)(1)(b) of this section,the suspension shall bea class Bsuspension imposed for the period of time specified in division(B)(2) of section 4510.02 of the Revised Code.

(d) If, within six years ofthe date the test wasconducted,the person has been convictedof or pleaded guilty tomore thantwo violations of astatute orordinance described indivision(C)(1)(b) of thissection,the suspension shall beaclass Asuspension imposed for the period of time specified indivision(B)(1) of section 4510.02 of the Revised Code.

(2) The registrar shall terminate a suspension of thedriver's orcommercial driver's licenseor permit of a resident orof theoperating privilege of a nonresident,or a denial of adriver's orcommercial driver's license or permit, imposedpursuant todivision (C)(1) of this sectionupon receipt of noticethat theperson has entered a plea of guilty to, or that the person hasbeenconvicted after entering a plea of no contest to,operatinga vehicle in violation of section 4511.19of the RevisedCode orin violation of a municipal OVI ordinance,if theoffensefor which the conviction is had or the plea isentered arose fromthe same incident that led to the suspension ordenial.

The registrar shall credit against any judicial suspension ofaperson's driver's or commercial driver's license or permit ornonresident operating privilege imposed pursuant to section4511.19 of the Revised Code, orpursuant to section 4510.07 of theRevised Code for a violation of a municipal OVIordinance, anytime during which the person serves a relatedsuspension imposedpursuant to division (C)(1) of this section.

(D)(1) A suspension of a person's driver's or commercialdriver's license or permit or nonresident operating privilegeunder this section for the timedescribed in division(B) or(C)of this section iseffectiveimmediately from the time at whichthe arresting officerservesthe notice of suspension upon thearrested person. Anysubsequent finding that the person is notguilty of the chargethat resulted in the person being requestedto takethe chemical test or tests under division (A) ofthissectiondoes not affect the suspension.

(2) If a person is arrested for operating a vehicle,streetcar, or trackless trolley in violation of division (A) or(B) of section 4511.19 of the Revised Code or a municipal OVIordinance, or for being in physical control of a vehicle,streetcar, or trackless trolley in violation of section4511.194of theRevised Code or a substantially equivalent municipal ordinance,regardless of whether the person'sdriver'sorcommercialdriver's license or permit or nonresidentoperatingprivilege isor is not suspended under division(B)or(C)of thissectionor Chapter 4510. of the Revised Code,the person'sinitialappearance on the charge resulting from thearrest shallbe heldwithin five days of the person's arrest orthe issuance ofthecitation to the person, subject to anycontinuancegranted bythecourt pursuant to section4511.197 ofthe Revised Coderegardingthe issuesspecified in that division.

(E) When it finally has been determined under theproceduresof this sectionand sections 4511.192 ~~through~~ to 4511.197of theRevised Code that a nonresident's privilege tooperate avehiclewithin this state has been suspended, theregistrar shallgiveinformation in writing of the action takento the motorvehicleadministrator of the state of the person'sresidence andof anystate in which the person has a license.

(F) At the end of a suspension period under this section,under section 4511.194,section 4511.196, or division(G) ofsection4511.19 of theRevised Code, or under section4510.07 oftheRevised Code for a violation of a municipal OVIordinance anduponthe request of the person whose driver's orcommercialdriver'slicense or permit was suspended and who isnototherwisesubjectto suspension,cancellation, ordisqualification, theregistrar shall return the driver's orcommercial driver's licenseor permit to the person upon theoccurrence of all of theconditionsspecified in divisions(F)(1) and (2)of this section:

(1) A showing that the person has proof offinancialresponsibility, a policy of liability insurance ineffect thatmeets the minimum standards set forth in section4509.51 of theRevised Code, or proof, to the satisfaction of theregistrar,thatthe person is able to respond in damages in anamount atleastequal to the minimum amounts specified in section4509.51of theRevised Code.

(2) Subject to the limitation contained in division(F)(3)of this section, payment by the personto the bureau ofmotorvehicles of a licensereinstatement feeof four hundredtwenty-five dollars,which feeshall be deposited in the statetreasury and creditedas follows:

(a) One hundred twelve dollars and fiftycents shall becredited to the statewidetreatment and prevention fund created bysection 4301.30 of the Revised Code. The fund shall beused topay the costs of driver treatment andintervention programsoperated pursuant to sections 3793.02 and3793.10 of the RevisedCode. The director of alcohol and drugaddiction services shalldetermine the share of the fund that isto be allocated to alcoholand drug addiction programs authorizedby section 3793.02 of theRevised Code, and the share of the fundthat is to be allocated todrivers' intervention programsauthorized by section 3793.10 ofthe Revised Code.

(b) Seventy-five dollars shall be credited to thereparationsfund created by section 2743.191 of the Revised Code.

(c) Thirty-seven dollars and fifty centsshall be creditedto the indigentdrivers alcohol treatment fund, which is herebyestablished. Except asotherwise provided in division(F)(2)(c)of this section, moneys in the fund shall bedistributed by thedepartment of alcohol and drug addictionservices to the countyindigent drivers alcoholtreatment funds,the county juvenileindigent drivers alcohol treatment funds,andthe municipalindigent drivers alcohol treatment funds that arerequired to beestablished by counties and municipal corporationspursuanttothis section, and shall be used onlyto paythe cost of an alcoholand drug addiction treatment programattended by an offender orjuvenile traffic offender who isordered to attend an alcohol anddrug addiction treatment programby a county, juvenile, ormunicipal court judge and who isdetermined by the county,juvenile, or municipal court judge notto have the means to payforthe person's attendance at theprogram or to pay the costsspecified in division(H)(4) ofthis section in accordance withthatdivision. In addition, a county, juvenile, or municipal court judge may use moneys in the county indigent drivers alcohol treatment fund, county juvenile indigent drivers alcohol treatment fund, or municipal indigent drivers alcohol treatment fund to pay for the cost of the continued use of an electronic continuous alcohol monitoring device as described in divisions (H)(3) and (4) of this section. Moneys in the fundthat are notdistributed to acounty indigent drivers alcoholtreatment fund,a county juvenileindigent drivers alcoholtreatment fund, or amunicipal indigentdrivers alcohol treatmentfund under division(H) of this sectionbecause the director ofalcohol and drug addictionservices doesnot have the informationnecessary to identify the county ormunicipal corporation wherethe offender or juvenile offender wasarrested maybe transferredby the director of budget andmanagement to thestatewidetreatment and preventionfund createdby section4301.30 of theRevised Code, upon certification of theamount by the directorofalcohol and drugaddiction services.

(d) Seventy-five dollars shall be credited to the Ohiorehabilitation services commission established by section 3304.12of the Revised Code, to the services for rehabilitation fund,which is hereby established. The fund shall be used to matchavailable federal matching funds where appropriate, and for anyother purpose or program of the commission to rehabilitate peoplewith disabilities to help them become employed and independent.

(e) Seventy-five dollars shall be deposited into thestatetreasury and credited to the drug abuse resistance educationprograms fund, which is hereby established, to be used by theattorney general for the purposes specified in division~~(L)~~(F)(4) ofthis section.

(f) Thirty dollars shall be credited to the state bureau ofmotorvehicles fund created by section 4501.25 of the RevisedCode.

(g) Twenty dollars shall be credited to the trauma andemergencymedical services grants fund created by section 4513.263of theRevised Code.

(3) If a person's driver's or commercial driver's license orpermit is suspended under thissection,under section 4511.196 ordivision(G) of section4511.19 of the Revised Code,undersection 4510.07 of the RevisedCode for a violation of a municipalOVI ordinance orunder anycombination of thesuspensionsdescribed in division(F)(3) ofthis section, and if thesuspensions arise from a single incidentor a single set of factsandcircumstances, the person is liablefor payment of, and shallbe required topay to the bureau, onlyone reinstatement fee offour hundredtwenty-fivedollars.Thereinstatement fee shall bedistributed by the bureau inaccordancewith division(F)(2) ofthis section.

(4) The attorney general shall use amounts in the drug abuseresistance education programs fund to award grants to lawenforcement agencies to establish and implement drug abuseresistance education programs in public schools. Grants awardedto a law enforcement agency under thissection shall be used bythe agency to pay for not more thanfiftyper cent of the amountof the salaries of law enforcementofficerswho conduct drug abuseresistance education programs inpublicschools. The attorneygeneral shall not use more than sixpercent of the amounts theattorney general's officereceives underdivision(F)(2)(e) ofthis section to pay the costs it incursinadministering the grantprogram established by division(F)(2)(e)of this section and inproviding training andmaterials relatingto drug abuse resistanceeducation programs.

The attorney general shall report to the governor and thegeneral assembly each fiscal year on the progress made inestablishing and implementing drug abuse resistance educationprograms. These reports shall include an evaluation of theeffectiveness of these programs.

(G) Suspension of a commercial driver's license underdivision(B) or(C) of this section shall be concurrent withanyperiod of disqualification under section 3123.611 or4506.16ofthe Revised Code or any period of suspension under section3123.58of the Revised Code. No person who is disqualified forlife fromholding acommercial driver's license under section4506.16 of theRevisedCode shall be issued a driver's licenseunder Chapter4507. ofthe Revised Code during the period forwhich thecommercialdriver's license was suspended under division(B) or(C) of thissection. No person whosecommercial driver's licenseissuspended under division(B) or(C) of this section shall beissued a driver's license underChapter 4507. of the Revised Codeduring the periodofthe suspension.

(H)(1) Each county shall establish an indigent driversalcohol treatment fund, each county shall establish a juvenileindigent drivers alcohol treatment fund, and each municipalcorporation in which there is a municipal court shall establishanindigent drivers alcohol treatment fund. All revenue that thegeneral assembly appropriates to the indigent drivers alcoholtreatment fund for transfer to a county indigent drivers alcoholtreatment fund, a county juvenile indigent drivers alcoholtreatment fund, or a municipal indigent drivers alcohol treatmentfund, all portions of fees that are paid under division ~~(L)~~(F) ofthis section and that are credited under that division to theindigent drivers alcohol treatment fund in the state treasury fora county indigent drivers alcohol treatment fund, a countyjuvenile indigent drivers alcohol treatment fund, or a municipalindigent drivers alcohol treatment fund, and all portions offinesthat are specified for deposit into a county or municipalindigentdrivers alcohol treatment fund by section 4511.193 ofthe RevisedCode shall be deposited into that county indigentdrivers alcoholtreatment fund, county juvenile indigent driversalcohol treatmentfund, or municipal indigent drivers alcoholtreatment fund inaccordance with division(H)(2) of thissection. Additionally,all portions of fines that are paid for aviolation of section4511.19 of the Revised Code orof any prohibition contained inChapter 4510. of the Revised Code,and that arerequired undersection4511.19 oranyprovision of Chapter 4510. of the RevisedCode to bedepositedinto a county indigent drivers alcoholtreatment fundor municipalindigent drivers alcohol treatmentfund shall bedeposited intothe appropriate fund in accordancewith theapplicable division.

(2) That portion of the license reinstatement fee that ispaid under division(F) of this section and that is creditedunderthat division to the indigent drivers alcohol treatmentfundshallbe deposited into a county indigent drivers alcoholtreatmentfund, a county juvenile indigent drivers alcoholtreatment fund,or a municipal indigent drivers alcohol treatmentfund as follows:

(a) If the suspension in question was imposed under thissection, that portion of the fee shall be deposited as follows:

(i) If the fee is paid by a person who was charged in acounty court with the violation that resulted in the suspension,the portion shall be deposited into the county indigent driversalcohol treatment fund under the control of that court;

(ii) If the fee is paid by a person who was charged in ajuvenile court with the violation that resulted in thesuspension,the portion shall be deposited into the countyjuvenile indigentdrivers alcohol treatment fund established inthe county served bythe court;

(iii) If the fee is paid by a person who was charged in amunicipal court with the violation that resulted in thesuspension, the portion shall be deposited into the municipalindigent drivers alcohol treatment fund under the control of thatcourt.

(b) If the suspension in question was imposed under section4511.19 of the Revised Codeor undersection 4510.07 of theRevised Code for a violation of a municipalOVI ordinance, thatportionof the fee shall be deposited asfollows:

(i) If the fee is paid by a person whose license or permitwas suspended by a county court, the portion shall be depositedinto the county indigent drivers alcohol treatment fund under thecontrol of that court;

(ii) If the fee is paid by a person whose license orpermitwas suspended by a municipal court, the portion shall bedepositedinto the municipal indigent drivers alcohol treatmentfund underthe control of that court.

(3) Expenditures from a county indigent drivers alcoholtreatment fund, a county juvenile indigent drivers alcoholtreatment fund, or a municipal indigent drivers alcohol treatmentfund shall be made only upon the order of a county, juvenile, ormunicipal court judge and only for payment of the cost of theattendance at an alcohol and drug addiction treatment program ofaperson who is convicted of, or found to be a juvenile trafficoffender by reason of, a violation of division (A) of section4511.19 of the Revised Code or a substantially similar municipalordinance, who is ordered by the court to attend the alcohol anddrug addiction treatment program, and who is determined by thecourt to be unable to pay the cost of attendance at thetreatmentprogram or for payment of the costs specified in division(H)(4)of this section in accordance with that division. Thealcohol anddrug addiction services board or the board of alcohol,drugaddiction, andmental health services established pursuant tosection 340.02 or340.021 ofthe Revised Code and serving thealcohol, drug addiction, and mentalhealth service district inwhich the court is located shalladminister the indigent driversalcohol treatment program of thecourt. When a court orders anoffender or juvenile trafficoffender to attend an alcohol anddrug addiction treatmentprogram, the board shall determine whichprogram is suitable tomeet the needs of the offender or juveniletraffic offender, andwhen a suitable program is located and spaceis available at theprogram, the offender or juvenile trafficoffender shall attendthe program designated by the board. Areasonable amount not toexceed five per cent of the amountscredited to and depositedinto the county indigent drivers alcoholtreatment fund, thecounty juvenile indigent drivers alcoholtreatment fund, or themunicipal indigent drivers alcoholtreatment fund serving everycourt whose program is administeredby that board shall be paidto the board to cover the costs itincurs in administering thoseindigent drivers alcohol treatmentprograms.

In addition, a county, juvenile, or municipal court judge may use moneys in the county indigent drivers alcohol treatment fund, county juvenile indigent drivers alcohol treatment fund, or municipal indigent drivers alcohol treatment fund to pay for the continued use of an electronic continuous alcohol monitoring device by an offender or juvenile traffic offender, in conjunction with a treatment program approved by the department of alcohol and drug addiction services, when such use is determined clinically necessary by the treatment program and when the court determines that the offender or juvenile traffic offender is unable to pay all or part of the daily monitoring of the device.

(4) If a county, juvenile, or municipal court determines, inconsultation with the alcohol and drug addiction services board orthe boardof alcohol, drug addiction, and mental health servicesestablished pursuant tosection 340.02 or 340.021 of the RevisedCodeand serving the alcohol, drug addiction, andmental healthdistrict in which the court is located, thatthe funds in thecounty indigent drivers alcohol treatment fund, the countyjuvenile indigent drivers alcohol treatment fund, or the municipalindigentdrivers alcohol treatment fund under the control of thecourt are more thansufficient to satisfy the purpose for whichthe fund was established, asspecified in divisions(H)(1) to(3)of this section, thecourt may declare a surplus in the fund.Ifthe court declares a surplus inthe fund, the court may expendtheamount of the surplus in the fund for~~alcohol~~:

(a) Alcohol and drug abuseassessment and treatment of persons who are charged inthe courtwith committing a criminal offense or with being a delinquentchildor juvenile traffic offender and in relation to whom both ofthe followingapply:

~~(a)~~(i) The court determines that substance abuse was acontributing factor leading to the criminal or delinquent activityor thejuvenile traffic offense with which the person is charged.

~~(b)~~(ii) The court determines that the person is unableto paythe cost of the alcohol and drug abuse assessment and treatmentforwhich the surplus money will be used.

(b) All or part of the cost of purchasing electronic continuous alcohol monitoring devices to be used in conjunction with division (H)(3) of this section.

Sec. 4511.75. (A) The driver of a vehicle, streetcar, ortrackless trolley upon meeting or overtaking from eitherdirectionany school bus stopped for the purpose of receiving ordischargingany school child, person attending programsofferedby communityboards of mental health and county boards of mentalretardationand developmental disabilities, or child attending aprogramoffered by a headstart agency,shall stop at leastten feet fromthe front or rear of the school bus and shall notproceed untilsuch school bus resumes motion, or until signaledby the schoolbus driver to proceed.

It is no defense to a charge under this division that theschool bus involved failed to display or be equipped with anautomatically extended stop warning sign as required by division(B) of this section.

(B) Every school bus shall be equipped with amber and redvisual signals meeting the requirements of section 4511.771 oftheRevised Code, and an automatically extended stop warning signof atype approved by the state board of education, which shallbeactuated by the driver of the bus whenever but only wheneverthebus is stopped or stopping on the roadway for the purpose ofreceiving or discharging school children, persons attendingprograms offered by community boards of mental health and countyboards of mental retardation and developmental disabilities, orchildren attending programs offered by head start agencies. Aschool bus driver shall not actuate the visual signals or thestopwarning sign in designated school bus loading areas wherethe busis entirely off the roadway or at school buildings whenchildrenor persons attending programs offered by communityboards ofmental health and county boards of mental retardationanddevelopmental disabilities are loading or unloading atcurbside orat buildings when children attending programs offered by headstart agencies are loading or unloading at curbside. The visualsignalsand stop warning sign shall besynchronized or otherwiseoperated as required by rule of theboard.

(C) Where a highway has been divided into four or moretraffic lanes, a driver of a vehicle, streetcar, or tracklesstrolley need not stop for a school bus approaching from theopposite direction which has stopped for the purpose of receivingor discharging any school child, persons attending programsoffered by community boards of mental health and county boards ofmental retardation and developmental disabilities, or childrenattending programs offered by head start agencies. The driver ofany vehicle, streetcar, or trackless trolley overtaking theschoolbus shall comply with division (A) of this section.

(D) School buses operating on divided highways or onhighways with four or more traffic lanes shall receive anddischarge all school children, persons attending programsofferedby community boards of mental health and county boards ofmentalretardation and developmental disabilities, and childrenattendingprograms offered by head start agencies on theirresidence side ofthe highway.

(E) No school bus driver shall start the driver's bus untilafterany child, person attending programs offered by communityboards of mental health and county boards of mental retardationand developmental disabilities, or child attending a programofferedby a head start agency who may have alighted therefromhasreached a place of safety on the child's or person'sresidenceside of the road.

(F)(1)Whoever violates division (A) of this section maybefined an amount not to exceed five hundred dollars. A person whois issueda citation for a violation of division (A) of thissection is notpermitted to enter a written plea of guilty andwaive the person's right tocontest the citation in a trial butinstead must appear in person in theproper court to answer thecharge.

(2) In addition to and independent of any other penaltyprovided by law,the court or mayor may impose upon an offenderwho violates this section aclass seven suspension of theoffender's driver's license, commercial driver'slicense,temporary instruction permit, probationary license, or nonresidentoperating privilege from the range specified in division (A)(7) ofsection 4510.02 of the Revised Code. When a license is suspendedunder this section, thecourt or mayor shall cause the offender todeliver the license to the court,and the court or clerk of thecourt immediately shall forward the licenseto the registrar ofmotor vehicles, together with notice of the court'saction.

(1) "Head start agency" has the same meaning as in section ~~3301.31~~ 3301.32 of the Revised Code.

(2) "School bus," as used in relation to children whoattenda program offered by a head start agency, means a bus that isowned andoperated by a head start agency, is equipped with anautomatically extendedstop warning sign of a type approved by thestate board of education, ispainted the color and displays themarkings described in section 4511.77 oftheRevised Code,and isequipped with amber and red visual signals meeting therequirements ofsection 4511.771 of the RevisedCode, irrespectiveof whether or not the bushas fifteen or more children aboard atany time. "School bus" does notinclude a van owned and operatedby a head start agency, irrespective of itscolor, lights, ormarkings.

(A) "Persons" includes individuals, firms, partnerships,associations, joint stock companies, corporations, and anycombinations of individuals.

(B) "Motor vehicle" means motor vehicle as defined insection 4501.01 of the Revised Code and also includes "all-purposevehicle"and "off-highway motorcycle" as those terms are definedin section 4519.01 ofthe Revised Code and manufactured and mobilehomes. "Motor vehicle" does not include a snowmobile as defined in section 4519.01 of the Revised Code.

(C) "New motor vehicle" means a motor vehicle, the legaltitle to which has never been transferred by a manufacturer,remanufacturer, distributor, or dealer to an ultimate purchaser.

(D) "Ultimate purchaser" means, with respect to any newmotor vehicle, the first person, other than a dealer purchasinginthe capacity of a dealer, who in good faith purchasessuch newmotor vehicle for purposes other than resale.

(E) "Business" includes any activities engaged in by anyperson for the object of gain, benefit, or advantage eitherdirector indirect.

(F) "Engaging in business" means commencing, conducting,orcontinuing in business, or liquidating a business when theliquidator thereof holds self out to beconducting suchbusiness;making a casual sale or otherwise making transfers inthe ordinarycourse of business when the transfers are made inconnection withthe disposition of all or substantially all ofthe transferor'sassets is not engaging in business.

(G) "Retail sale" or "sale at retail" means the act orattempted act of selling, bartering, exchanging, or otherwisedisposing of a motor vehicle to an ultimate purchaser for use asaconsumer.

(H) "Retail installment contract" includes any contract inthe form of a note, chattel mortgage, conditional sales contract,lease, agreement, or other instrument payable in one or moreinstallments over a period of time and arising out of the retailsale of a motor vehicle.

(I) "Farm machinery" means all machines and tools used inthe production, harvesting, and care of farm products.

(J) "Dealer" or "motor vehicle dealer" means any new motorvehicle dealer, any motor vehicle leasing dealer, and any usedmotor vehicle dealer.

(K) "New motor vehicle dealer" means any person engaged inthe business of selling at retail, displaying, offering for sale,or dealing in new motor vehicles pursuant to a contract oragreement entered into with the manufacturer, remanufacturer, ordistributor of the motor vehicles.

(L) "Used motor vehicle dealer" means any person engagedinthe business of selling, displaying, offering for sale, ordealingin used motor vehicles, at retail or wholesale, but doesnot meanany new motor vehicle dealer selling, displaying,offering forsale, or dealing in used motor vehicles incidentallyto engagingin the business of selling, displaying, offering forsale, ordealing in new motor vehicles, any person engaged in thebusinessof dismantling, salvaging, or rebuilding motor vehiclesby meansof using used parts, or any public officer performingofficialduties.

(M) "Motor vehicle leasing dealer" means any personengagedin the business of regularly making available, offeringto makeavailable, or arranging for another person to use a motorvehiclepursuant to a bailment, lease, sublease, or othercontractualarrangement under which a charge is made for its use at aperiodicrate for a term of thirty days or more, and title to themotorvehicle is in and remains in the motorvehicle leasing dealer whooriginally leases it, irrespective of whether ornot the motorvehicle is the subject of a later sublease, and not in theuser,but does notmean a manufacturer or its affiliate leasing to itsemployees orto dealers.

(N) "Salesperson" means any person employed by a dealer ormanufacturedhome broker to sell, display, and offer for sale, ordeal in motorvehicles fora commission, compensation, or othervaluable consideration, butdoes not mean any public officerperforming official duties.

(O) "Casual sale" means any transfer of a motor vehicle byaperson other than a new motor vehicle dealer, used motorvehicledealer, motor vehicle salvage dealer, as defined indivision (A)of section 4738.01 of the Revised Code, salesperson,motor vehicleauction owner, manufacturer, or distributor actingin the capacityof a dealer, salesperson, auction owner,manufacturer, ordistributor, to a person who purchases the motorvehicle for useas a consumer.

(P) "Motor vehicle show" means a display of current modelsof motor vehicles whereby the primary purpose is the exhibitionofcompetitive makes and models in order to provide the generalpublic the opportunity to review and inspect various makes andmodels of motor vehicles at a single location.

(Q) "Motor vehicle auction owner" means any person who isengaged wholly or in part in the business of auctioning motorvehicles.

(R) "Manufacturer" means a person who manufactures,assembles, or imports motor vehicles, including motor homes, butdoes not mean a person who only assembles or installs a body,special equipment unit, finishing trim, or accessories on a motorvehicle chassis supplied by a manufacturer or distributor.

(S) "Tent-type fold-out camping trailer" means any vehicleintended to be used, when stationary, as a temporary shelter withliving and sleeping facilities, andthat is subject to thefollowing properties and limitations:

(1) A minimum of twenty-five per cent of the fold-outportion of the top and sidewalls combined must be constructed ofcanvas, vinyl, or other fabric, and form an integral part of theshelter.

(T) "Distributor" means any person authorized by a motorvehicle manufacturer to distribute new motor vehicles to licensednew motor vehicle dealers, but does not mean a person who onlyassembles or installs a body, special equipment unit, finishingtrim, or accessories on a motor vehicle chassis supplied by amanufacturer or distributor.

(U) "Flea market" means a market place, other than adealer's location licensed under this chapter, where a space orlocation is provided for a fee or compensation to a seller toexhibit and offer for sale or trade, motor vehicles to thegeneralpublic.

(V) "Franchise" means any written agreement, contract, orunderstanding between any motor vehicle manufacturer orremanufacturer engaged in commerce and any motor vehicle dealerthat purports to fix the legal rights and liabilities of theparties to such agreement, contract, or understanding.

(W) "Franchisee" means a person who receives new motorvehicles from the franchisor under a franchise agreement and whooffers, sells, and provides service for such new motor vehiclestothe general public.

(X) "Franchisor" means a new motor vehicle manufacturer,remanufacturer, or distributor who supplies new motor vehiclesunder a franchise agreement to a franchisee.

(Y) "Dealer organization" means a state or local tradeassociation the membership of which is comprised predominantly ofnew motor vehicle dealers.

(Z) "Factory representative" means a representativeemployedby a manufacturer, remanufacturer, or by a factorybranchprimarily for the purpose of promoting the sale of itsmotorvehicles, parts, or accessories to dealers or forsupervising orcontacting its dealers or prospective dealers.

(AA) "Administrative or executive management" means thoseindividuals who are not subject to federal wage and hour laws.

(BB) "Good faith" means honesty in the conduct ortransaction concerned and the observance of reasonable commercialstandards of fair dealing in the trade as is defined in division(S) of section 1301.01 of the Revised Code, including, but notlimited to, the duty to act in a fair and equitable manner so asto guarantee freedom from coercion, intimidation, or threats ofcoercion or intimidation; provided however, that recommendation,endorsement, exposition, persuasion, urging, or argument shallnotbe considered to constitute a lack of good faith.

(CC) "Coerce" means to compel or attempt to compel byfailing to act in good faith or by threat of economic harm,breachof contract, or other adverse consequences. Coerce doesnot meanto argue, urge, recommend, or persuade.

(DD) "Relevant market area" means any area within a radiusof ten miles from the site of a potential new dealership, exceptthat for manufactured home or recreational vehicle dealershipstheradius shall be twenty-five miles. The ten-mile radius shall be measured from the dealer's established place of business that is used exclusively for the purpose of selling, displaying, offering for sale, or dealing in motor vehicles.

(EE) "Wholesale" or "at wholesale" means the act orattempted act of selling, bartering, exchanging, or otherwisedisposing of a motor vehicle to a transferee for the purpose ofresale and not for ultimate consumption by that transferee.

(FF) "Motor vehicle wholesaler" means any person licensed asa dealerunder the laws of another state and engagedin thebusiness of selling, displaying, or offering for sale usedmotorvehicles, at wholesale, but does not mean any motor vehicledealeras defined in this section.

(GG)(1) "Remanufacturer" means a person who assembles orinstalls passenger seating, walls, a roof elevation, or a bodyextension on a conversion van with the motor vehicle chassissupplied by amanufactureror distributor, a person who modifies atruck chassis supplied by amanufacturer or distributor for use asa public safety or public servicevehicle, a person who modifies amotor vehicle chassis suppliedby a manufacturer or distributorfor use as a limousine or hearse,or a person who modifies anincomplete motor vehicle caband chassis supplied by a new motorvehicle dealer ordistributor for use as a tow truck,but does notmean either of the following:

(a) A person who assembles or installs passenger seating,walls, a roof elevation, or a body extension on a manufacturedhome as defined in division (C)(4) of section 3781.06 of theRevised Code, a mobile home as defined in division (O)andreferred to in division (B)of section 4501.01 of the RevisedCode, or a recreational vehicleas defined in division (Q) andreferred to in division (B) ofsection 4501.01 of the RevisedCode;

(b) A person who assembles or installs special equipmentoraccessories for handicapped persons, as defined in section4503.44of the Revised Code, upon a motor vehicle chassissupplied by amanufacturer or distributor.

(2) For the purposes of division (GG)(1) of this section,"public safetyvehicle or public service vehicle" means a firetruck, ambulance, school bus,street sweeper, garbage packingtruck, or cement mixer, or a mobileself-contained facilityvehicle.

(3) For the purposes of division (GG)(1) of this section,"limousine" means a motor vehicle, designed only for the purposeof carrying nine or fewer passengers, that a person modifies bycutting the original chassis, lengthening the wheelbase by fortyinches or more, and reinforcing the chassis in such a waythat allmodifications comply with all applicable federal motorvehiclesafety standards. No person shall qualify as or be deemedto be aremanufacturer who produces limousines unless the personhas awritten agreement with the manufacturer of the chassis thepersonutilizes to produce the limousines to complete properlytheremanufacture of the chassis into limousines.

(4) For the purposes of division (GG)(1) of this section,"hearse"means a motor vehicle, designed only for the purpose oftransporting a single casket, that is equipped with a compartmentdesigned specifically to carry a single casket that a personmodifies by cutting the original chassis, lengthening thewheelbase by ten inches or more, and reinforcing the chassis insuch a way that all modifications comply with all applicablefederal motor vehicle safety standards. No person shall qualifyasor be deemed to be a remanufacturer who produces hearses unlessthe person has a written agreement with the manufacturer of thechassis the person utilizes to produce the hearses to completeproperly the remanufacture of the chassis into hearses.

(5) For the purposes of division (GG)(1) of this section,"mobileself-contained facility vehicle" means a mobile classroomvehicle, mobile laboratory vehicle, bookmobile, bloodmobile,testing laboratory, and mobile display vehicle, each of which isdesigned for purposes other than for passenger transportationandother than the transportation or displacement of cargo,freight,materials, or merchandise. A vehicle is remanufacturedinto amobile self-contained facility vehicle in part by theaddition ofinsulation to the body shell, and installation ofall of thefollowing: a generator, electrical wiring, plumbing,holdingtanks, doors, windows, cabinets, shelving, and heating,ventilating, and air conditioning systems.

(6) For the purposes of division (GG)(1) ofthis section,"tow truck" means both of the following:

(a) An incomplete caband chassis that are purchased by aremanufacturer from a newmotor vehicle dealer or distributor ofthe cab and chassisand on which the remanufacturer then installsin a permanent manner awrecker body it purchases from amanufacturer or distributor ofwrecker bodies, installs anemergency flashing light pylon andemergency lights upon the mastof the wrecker body or rooftop,and installs such other relatedaccessories and equipment,including push bumpers, front grilleguards with pads and othercustom-ordered items such as painting,special lettering, andsafety striping so as to create a completemotor vehicle capableof lifting and towing another motor vehicle.

(b) An incomplete caband chassis that are purchased by aremanufacturer from a newmotor vehicle dealer or distributor ofthe cab and chassisand on which the remanufacturer then installsin a permanent manner acar carrier body it purchases from amanufacturer or distributorof car carrier bodies, installs anemergency flashing lightpylon and emergency lights upon therooftop, and installs suchother related accessories andequipment, including push bumpers,front grille guards with padsand other custom-ordered itemssuch as painting, speciallettering, and safety striping.

As used in division (GG)(6)(b)of this section, "car carrierbody" means a mechanical orhydraulic apparatus capable of liftingand holding a motorvehicle on a flat level surface so that one ormore motorvehicles can be transported, once the car carrier ispermanentlyinstalled upon an incomplete cab and chassis.

(HH) "Operating as a new motor vehicle dealership" meansengaging in activities such as displaying, offering for sale, andselling new motor vehicles at retail, operating a servicefacilityto perform repairs and maintenance on motor vehicles,offering forsale and selling motor vehicle parts at retail, andconducting allother acts that are usual and customary to theoperation of a newmotor vehicle dealership. For the purposes ofthis chapter only,possession of either a valid new motor vehicledealer franchiseagreement or a new motor vehicle dealerslicense, or both of theseitems, is not evidence that a person isoperating as a new motorvehicle dealership.

(II) "Manufactured home broker" means any person acting as aselling agent on behalf of an owner of a manufactured or mobilehomethat is subject totaxation under section 4503.06 of theRevised Code.

(JJ) "Outdoor power equipment" means garden and smallutilitytractors, walk-behind and riding mowers, chainsaws, andtillers.

(KK) "Remote service facility" means premises that areseparate from a licensed new motor vehicle dealer's sales facility by not more than one mileand that are used by the dealer to perform repairs, warranty work,recall work, and maintenance on motor vehicles pursuant to afranchise agreement entered into with a manufacturer of motorvehicles. A remote service facility shall be deemed to be part ofthe franchise agreement and is subject to all the rights, duties,obligations, and requirements of Chapter 4517. of the RevisedCode that relate to the performance of motor vehicle repairs, warranty work, recall work, and maintenance work by new motor vehicle dealers.

(A)"Snowmobile" means any self-propelled vehicle designedprimarily for use on snow or ice, and steered by skis, runners,orcaterpillar treads.

(B)"All-purpose vehicle" means any self-propelled vehicledesigned primarily for cross-country travel on land and water, oron more than one type of terrain, and steered by wheels orcaterpillar treads, or any combination thereof, includingvehiclesthat operate on a cushion of air, vehicles commonlyknown asall-terrain vehicles, all-season vehicles, mini-bikes,and trailbikes~~, but excluding any self-propelled vehicle notprincipallyused for purposes of personal transportation,~~. "All-purpose vehicle" does not include a utility vehicle as defined in section 4501.01 of the Revised Code or anyvehicleprincipally used in playing golf, any motor vehicle oraircraftrequired to be registered under Chapter 4503. or 4561.of theRevised Code, and any vehicle excepted from definition asa motorvehicle by division (B) of section 4501.01 of the RevisedCode.

(C)"Owner" means any personor firm, otherthan alienholder or dealer, having title to a snowmobile,off-highwaymotorcycle, orall-purpose vehicle, or other right tothepossession thereof.

(D)"Operator" means any person who operates or is inactualphysical control of a snowmobile, off-highway motorcycle,orall-purpose vehicle.

(E)"Dealer" means any personor firmengaged in thebusiness of manufacturing or selling snowmobiles,off-highwaymotorcycles, or all-purpose vehicles atwholesale orretail, orwho rents,leases, or otherwise furnishes snowmobiles,off-highwaymotorcycles, or all-purposevehicles for hire.

(F)"Street or highway" has the same meaning as in section4511.01 of the Revised Code.

(G)"Limited access highway" and"freeway" have the samemeanings as in section 5511.02of theRevisedCode.

(H)"Interstate highway" means any part of the interstatesystem of highways as defined in subsection (e), 90 Stat. 431(1976), 23 U.S.C.A. 103,as amended.

(I)"Off-highway motorcycle" means every motorcycle, asdefinedin section 4511.01 of the Revised Code, that isdesignedto be operated primarily on landsother than a street or highway.

(J)"Electronic" and"electronic record" have thesamemeanings as in section 4501.01 of the Revised Code.

(K)"Electronic dealer" means a dealer whom the registrar ofmotor vehicles designates under section 4519.511 of the RevisedCode.

Sec. 4519.02. (A) Except as provided in divisions (B),(C),and (D) of this section, no person shall operate anysnowmobile,off-highway motorcycle, or all-purposevehicle within this stateunless thesnowmobile, off-highway motorcycle, or all-purposevehicle is registered and numbered inaccordance with sections4519.03 and 4519.04 of the Revised Code.

(B) No registration is required for a snowmobile,off-highwaymotorcycle, or all-purpose vehicle that is operatedexclusively upon lands owned bythe owner of the snowmobile,off-highway motorcycle, orall-purpose vehicle, or on landstowhich the owner has a contractual right.

(C) No registration is required for a snowmobile,off-highwaymotorcycle, or all-purpose vehicle owned and used inthisstate by a resident ofanother state whenever that state hasin effect a registrationlaw similar to this chapterand thesnowmobile, off-highway motorcycle, or all-purposevehicle isproperly registeredthereunder. Any snowmobile, off-highwaymotorcycle, orall-purpose vehicle owned and usedin this state bya person who is not a resident of ~~another~~ this state ~~not having such aregistrationrequirement~~ shall comply with section 4519.09 of theRevised Code.

(D) No registration is required for a snowmobile,off-highwaymotorcycle, or all-purpose vehicle owned and used inthisstate by the UnitedStates, another state, or a politicalsubdivision thereof, butthe snowmobile, off-highway motorcycle,orall-purposevehicle shall display the name ofthe ownerthereon.

(E) The owner or operator of any all-purpose vehicleoperated or used upon the waters in this state shall complywithChapters 1547. and 1548. of the Revised Code relative to theoperation of watercraft.

(F)Except as otherwise provided in this division, whoeverviolates division (A) of this section shall be fined not more thantwenty-five dollars. If the offender previously has beenconvicted of orpleaded guilty to aviolation of division (A) ofthis section, whoever violatesdivision (A) of this section shallbe fined not less thantwenty-five nor more than fifty dollars.

Sec. 4519.09. Every owner or operator of a snowmobile,off-highwaymotorcycle,orall-purpose vehicle who is not a residentof a this state ~~not having aregistration law similar to thischapter,~~and who expects to use the snowmobile, off-highwaymotorcycle,orall-purpose vehicle inOhio, shall apply to the registrar of motorvehicles or a deputyregistrar for a temporary operating permit.The temporaryoperating permit shall be issued for a period not toexceedfifteen days from the date of issuance, shall be in suchform asthe registrar determines, shall include the name andaddress ofthe owner and operator of the snowmobile, off-highwaymotorcycle,or all-purpose vehicle,and any other information asthe registrar considersnecessary,and shall be issued uponpayment of a fee of five dollars. Everyowner or operatorreceiving a temporary operating permit shalldisplay it upon thereasonable request of any lawenforcement officer or other personas authorized by sections4519.42 and 4519.43 of the Revised Code.

Sec. 4561.17. For the purpose of providing revenue forpaying the expenses of administering sections 4561.17 to 4561.22of the Revised Code relative to the registration of aircraft, forthe surveying of and the establishment, checking, maintenance,and repair of aviation air marking and of air navigationfacilities, for airport capital improvements, for the acquiring, maintaining, and repairing ofequipment necessary therefor, and for the cost of the creationand distribution of Ohio aeronautical charts and Ohio airport andlanding field directories, an annual license tax is hereby leviedupon all aircraft based in this state for which an aircraftworthiness certificate issued by the federal aviationadministration is in effect except the following:

(D) Aircraft operated under a certificate of convenienceand necessity issued by the civil aeronautics board or anysuccessor thereto;

(E) Aircraft owned by any nonresident of this statewhether such owner is an individual, partnership, or corporation,provided such owner has complied with all the laws in regard tothe licensing of aircraft in the state of ~~his~~ the owner'sresidence;

(F) Aircraft owned by aircraft manufacturers or aircraftengine manufacturers and operated only for purposes of testing,delivery, or demonstration;

Such license tax shall be at the rates specified in section4561.18 of the Revised Code, and shall be paid to and collectedby the director of transportation at the time of makingapplication as provided in such section.

Sec. 4561.18. Applications for the licensing andregistration of aircraft shall be made and signed by the ownerthereof upon forms prepared by the department of transportationand shall contain a description of the aircraft, including itsfederal registration number, and such other information as isrequired by the department.

Applications shall be filed with the director oftransportation during the month of January annually and shall berenewed according to the standard renewal procedure of sections4745.01 to 4745.03 of the Revised Code. Application forregistration of any aircraft not previously registered in thisstate, if such aircraft is acquired or becomes subject to suchlicense tax subsequent to the last day of January in any year,shall be made for the balance of the year in which the same isacquired, within forty-eight hours after such acquisition orafter becoming subject to such license tax. Each suchapplication shall be accompanied by the proper license tax, which, for all aircraft other thangliders and balloons, shall be at the annual rate of ~~one hundred~~ fifteen dollars per ~~aircraft~~ seat, based on the manufacturer's maximum listed seating capacity. The license tax for gliders and balloons shall be ~~three~~ fifteendollars annually.

Such taxes are in lieu of all other taxes on or withrespect to ownership of such aircraft.

Sec. 4561.21. (A) The director of transportation shall deposit all aircraft transfer fees in the state treasury to the credit of the general fund.

(B) The director shall deposit all aircraft license taxes in the state treasury to the credit of the ~~county~~ airport ~~maintenance~~ assistance fund, which is hereby created. Money in the fund shall be used ~~to assist counties in maintaining the~~ for maintenance and capital improvements to publicly owned airports ~~they own~~, and the director shall distribute the money to ~~counties~~ eligible recipients in accordance with such procedures, guidelines, and criteria as the director shall establish.

Sec. 4703.15. (A) The state board of examiners of architectsmay by three concurring votes deny renewal of, revoke, or suspendany certificate of qualification to practice architecture, issuedor renewed under sections 4703.10, 4703.13, and 4703.14 of theRevised Code, or any certificate of authorization, issued orrenewed under sections 4703.13 and 4703.18 of the Revised Code,if proof satisfactory to the board is presented in any of thefollowing cases:

~~(B)~~(2) In case the holder of the certificate has been foundguilty by the board or by a court of justice of any fraud ordeceit in ~~his~~ the holder's professional practice, or has beenconvicted of afelony by a court of justice;

~~(C)~~(3) In case the holder has been found guilty by the boardof gross negligence, incompetency, or misconduct in theperformance of ~~his~~ the holder's services as an architect or inthe practice ofarchitecture;

~~(D)~~(4) In case the holder of the certificate has been foundguilty by the board of signing plans for the construction of abuilding as a "registered architect" where he the holder is notthe actualarchitect of such building and where he the holder is withoutprior writtenconsent of the architect originating the design or otherdocuments used in the plans;

~~(E)~~(5) In case the holder of the certificate has been foundguilty by the board of aiding and abetting another person orpersons not properly registered as required by sections 4703.01to 4703.19 of the Revised Code, in the performance of activitiesthat in any manner or extent constitute the practice ofarchitecture.

At any time after the expiration of six months from thedate of the revocation or suspension of a certificate, theindividual, firm, partnership, association, or corporation mayapply for reinstatement of the certificate. Upon showing thatall loss caused by the individual, firm, partnership,association, or corporation whose certificate has been revoked orsuspended has been fully satisfied and that all conditionsimposed by the revocation or suspension decision have beencomplied with, and upon the payment of all costs incurred by theboard as a result of the case at issue, the board, at itsdiscretion and upon evidence that in its opinion would sowarrant, may restore the certificate.

(B) In addition to disciplinary action the board may take against a certificate holder under division (A) of this section or section 4703.151 of the Revised Code, the board may impose a fine against a certificate holder who obtained a certificate by fraud or who is found guilty of any act specified in divisions (A)(2) to (A)(5) of this section or who violates any rule governing the standards of service, conduct, and practice adopted pursuant to section 4703.02 of the Revised Code. The fine imposed shall be not more than one thousand dollars for each offense but shall not exceed five thousand dollars regardless of the number of offenses the certificate holder has committed between the time the fine is imposed and the time any previous fine was imposed.

Sec. 4705.09. (A)(1) Any person admitted to the practiceof law in this state by order of the supreme court in accordancewith its prescribed and published rules, or any law firm or legalprofessional association, may establish and maintain aninterest-bearing trust account, for purposes of depositing clientfunds held by the attorney, firm, orassociation that are nominalin amount or are to be held by the attorney, firm, or associationfor a short period of time, with any bank or savings and loanassociation that is authorized to do business in this state andis insured by the federal deposit insurance corporation or the successor tothat corporation,or any credit union insured by the national credit unionadministration operating under the "Federal Credit Union Act," 84 Stat. 994(1970), 12 U.S.C.A. 1751. Each account established under thisdivision shall be in the name of the attorney, firm, or association thatestablished and is maintaining it andshall beidentified as an IOLTA or an interest on lawyer'strust account. The name of the account maycontain additional identifying features to distinguish it fromother trust accounts established and maintained by the attorney,firm, or association.

(2) Each attorney who receives funds belonging to a client shall do one ofthe following:

(a) Establish and maintain one or more interest-bearingtrust accounts in accordance with division (A)(1) of thissectionor maintain one or more interest-bearing trust accountspreviously established in accordance with that division, anddeposit all client funds held that are nominal in amount or are to be held bythe attorney for a short period of time in the account or accounts;

(b) If the attorney is affiliated with a law firm or legalprofessional association, comply with division (A)(2)(a) of thissection or deposit all client funds held thatare nominal inamount or are to be held by the attorney for a short period oftime in one or more interest-bearing trust accountsestablishedand maintained by the firm or association in accordance withdivision (A)(1) of this section.

(3) No funds belonging to any attorney, firm, or legalprofessional association shall be deposited in anyinterest-bearing ~~IOTA~~ IOLTA account established under division(A)(1)or (2) of this section, except that funds sufficient to pay or enable awaiver of depository institution service charges onthe account shall be deposited in the account and other fundsbelonging to the attorney, firm, or association may be depositedas authorized by the Code of Professional Responsibility adoptedby the supreme court. The determinations of whether funds heldare nominal or more than nominal in amount and of whether fundsare to be held for a short period or longer than a short periodof time rests in the sound judgment of the particular attorney.No imputation of professional misconduct shall arise from theattorney's exercise of judgment in these matters.

(B) All interest earned on funds deposited in aninterest-bearing trust account established under division(A)(1) or (2) of this section shall be transmitted to the treasurer ofstate for deposit in the legal aid fund established under section120.52 of the Revised Code. No part of the interest earned onfunds deposited in an interest-bearing trust accountestablishedunder division (A)(1) or (2) of this section shall be paid to, orinure to the benefit of, the attorney, the attorney's law firm orlegal professional association, the client or otherperson whoowns or has a beneficial ownership of the funds deposited, or anyother person other than in accordance with this section, section4705.10, and sections 120.51 to 120.55 of the Revised Code.

(C) No liability arising out of any act or omission by anyattorney, law firm, or legal professional association withrespect to any interest-bearing trust account establishedunderdivision (A)(1) or (2) of this section shall be imputed to thedepository institution.

(D) The supreme court may adopt and enforce rules ofprofessional conduct that pertain to the use, by attorneys, lawfirms, or legal professional associations, of interest-bearingtrust accounts established under division (A)(1) or (2) ofthis section, and that pertain to the enforcement of division (A)(2)of this section. Any rules adopted by the supreme court underthis authority shall conform to the provisions of this section,section 4705.10, and sections 120.51 to 120.55 of the RevisedCode.

Sec. 4709.05. In addition to any other duty imposed on thebarber board under this chapter, the board shall do all of thefollowing:

(A) Organize by electing a chairperson from itsmembers to serve a one-year term;

(B) Hold regular meetings, at the times and places as itdetermines for the purpose of conducting the examinationsrequired under this chapter, and hold additional meetings for thetransaction of necessary business;

(C) Provide for suitable quarters, in the city ofColumbus, for the conduct of its business and the maintenance ofits records;

(D) Adopt a common seal for the authentication of itsorders, communications, and records;

(E) Maintain a record of its proceedings and a register ofpersons licensed as barbers. The register shall include eachlicensee's name, place of business, residence, and licensure dateand number, and a record of all licenses issued, refused,renewed, suspended, or revoked. The records are open to publicinspection at all reasonable times.

(F) Annually, on or before the first day of January, makea report to the governor of all its official acts during thepreceding year, its receipts and disbursements, recommendationsit determines appropriate, and an evaluation of board activitiesintended to aid or protect consumers of barber services;

(G) Employ an executive director who shall do all thingsrequested by the board for the administration and enforcement ofthis chapter. The executive director shall employ inspectors,clerks, and other assistants as he the executive directordetermines necessary.

(H) Ensure that the practice of barbering is conductedonly in a licensed barber shop, except when the practice ofbarbering is performed on a person whose physical or mentaldisability prevents that person from going to a licensed barbershop;

(I) Conduct or have conducted the examination forapplicants to practice as licensed barbers at least four timesper year at the times and places the board determines;

(J) Adopt rules, in accordance with Chapter 119. of theRevised Code, to administer and enforce this chapter and whichcover all of the following:

(1) Sanitary standards for the operation of barber shopsand barber schools that conform to guidelines established by thedepartment of health;

(2) The content of the examination required of anapplicant for a barber license. The examination shall include apractical demonstration and a written test, shall relate only tothe practice of barbering, and shall require the applicant todemonstrate that the applicant has a thorough knowledge ofand competence inthe proper techniques in the safe use of chemicals used in thepractice of barbering.

(3) Continuing education requirements for persons licensedpursuant to this chapter. The board may impose continuingeducation requirements upon a licensee for a violation of thischapter or the rules adopted pursuant thereto or if the boarddetermines that the requirements are necessary to preserve thehealth, safety, or welfare of the public.

(4) Requirements for the licensure of barber schools,barber teachers, and assistant barber teachers;

(6) Any other area the board determines appropriate toadminister or enforce this chapter.

(K) Annually review the rules adopted pursuant to division (J) of this section in order to compare those rules with the rules adopted by the state board of cosmetology pursuant to section 4713.08 of the Revised Code. If the barber board determines that the rules adopted by the state board of cosmetology, including, but not limited to, rules concerning using career technical schools, would be beneficial to the barbering profession, the barber board shall adopt rules similar to those it determines would be beneficial for barbers.

(L) Prior to adopting any rule under this chapter,indicate at a formal hearing the reasons why the rule isnecessary as a protection of the persons who use barber servicesor as an improvement of the professional standing of barbers inthis state;

~~(L)~~(M) Furnish each owner or manager of a barber shop andbarber school with a copy of all sanitary rules adopted pursuantto division (J) of this section;

~~(M)~~(N) Conduct such investigations and inspections of personsand establishments licensed or unlicensed pursuant to thischapter and for that purpose, any member of the board or any ofits authorized agents may enter and inspect any place of businessof a licensee or a person suspected of violating this chapter orthe rules adopted pursuant thereto, during normal business hours;

~~(N)~~(O) Upon the written request of an applicant and the payment of theappropriate fee, provide to the applicant licensure information concerning theapplicant;

~~(O)~~(P) Do all things necessary for the proper administrationand enforcement of this chapter.

Sec. 4713.02. (A) There is hereby created the state boardof cosmetology, consisting ofall of the following membersappointed by the governor, with the advice and consent of thesenate:

(1) One person holding a current, valid cosmetologist,managing cosmetologist, or cosmetology instructor license at thetime of appointment;

(2) Two persons holding current, valid managingcosmetologist licenses and actively engaged in managing beautysalons at the timeof appointment;

(3) One person who holds a current, valid independentcontractor license at the time of appointment or the owner ormanager of a licensed salon in which at least one person holding acurrent, valid independent contractor license practices a branchof cosmetology;

(4) One person who represents individuals who teach thetheory and practice of a branch of cosmetology at a vocationalschool;

(7) One person who is either a certifiednurse practitioner or clinical nurse specialist holding acertificate of authority issued under Chapter 4723. of the RevisedCode, or a physician authorized under Chapter 4731. of the RevisedCode to practice medicine and surgery or osteopathic medicine andsurgery;

(B) The superintendent of public instruction shall nominatethree persons for the governor to choose from when making anappointment under division (A)(4) of this section.

(C) All members shall be at least twenty-five years of age,residents of the state, and citizens of the United States. Nomore than two members, at any time, shall be graduates of thesameschool of cosmetology.

Except for the initial members appointed underdivisions (A)(3) and (4) of this section, terms ofoffice are forfive years. The term of theinitial member appointedunder division (A)(3) of this sectionshall be three years. Theterm of the initial member appointedunder division (A)(4) of thissection shall be four years. Termsshall commence on the firstday of November andend on thethirty-first day of October.Each member shall hold office fromthe date of appointmentuntilthe end of the term for whichappointed. In case ofa vacancyoccurring on the board, thegovernor shall, in the samemannerprescribed for the regularappointment to the board, fillthevacancy by appointing a member.Any member appointed to fillavacancy occurring prior to theexpiration of the term for whichthe member's predecessor wasappointed shall hold office fortheremainderof such term. Anymember shall continue in officesubsequent tothe expiration dateof the member's term untilthemember's successor takes office, oruntil a period of sixty dayshas elapsed,whichever occursfirst.Before entering upon thedischarge of the dutiesof the office ofmember, each member shalltake, and file with thesecretary ofstate, the oath of officerequired by Section 7 of Article XV,OhioConstitution.

The members of the board shall receive an amount fixedpursuant to Chapter 124. of the Revised Code per diem for everymeeting of the board which they attend, together with theirnecessary expenses, and mileage for each mile necessarilytraveled.

The members of the board shall annually elect, from amongtheir number, a chairperson.

The board shall prescribe the duties of its officers andestablish an office ~~at Columbus, Ohio~~ within Franklin County. The board shall keep allrecords and files at the office and have the records and files atall reasonable hours open to public inspection. The board alsoshall adopt a seal.

Sec. 4717.05. (A) Any person who desires tobe licensed asan embalmer shall apply to the board of embalmersand funeraldirectors on a form provided by the board. Theapplicant shallinclude with the application an initial licensefee as set forthin section 4717.07 of the RevisedCode and evidence, verified byoath and satisfactory tothe board, that the applicant meets allof the following requirements:

(2) If the applicant has pleaded guilty to, has been foundbya judge or jury to be guilty of, or has had a judicial findingof eligibility for treatment in lieu of conviction enteredagainstthe applicant in this state for aggravated murder,murder,voluntary manslaughter, felonious assault, kidnapping,rape,sexual battery, gross sexual imposition, aggravated arson,aggravated robbery, or aggravated burglary, or has pleaded guiltyto, has been found by a judge or jury to be guilty of, or hashada judicial finding of eligibility for treatment in lieu ofconviction entered against the applicant in another jurisdictionfora substantially equivalent offense, at least five years haselapsed since the applicant was released from incarceration,a community control sanction, a post-release controlsanction, parole, or treatment in connection with the offense.

(3) The applicant holds at least a bachelor's degree from acollege oruniversity authorized to conferdegrees by the Ohioboard of regents or the comparablelegal agency of another statein which the college or universityis located and submits anofficial transcript from that college or universitywith theapplication.

(4) The applicant has satisfactorilycompleted at leasttwelve months of instruction in a prescribedcourse in mortuaryscience as approved by the board and haspresented to the board acertificate showing successful completion of thecourse. Thecourse of mortuary science college training may be completedeither before or after the completion of the educational standardset forth indivision (A)(3) of this section.

(5) The applicant has registered with the board prior tobeginning anembalmer apprenticeship.

(6) The applicant has satisfactorily completed at least oneyearof apprenticeship under an embalmer licensed in this stateandhas assisted that person in embalming at least twenty-fivedeadhuman bodies.

(7) The applicant, upon meeting the educationalstandardsprovided for in divisions (A)(3) and (4) ofthis section andcompleting the apprenticeship required in division(A)(6) of thissection, has completed the examination for anembalmer's licenserequired by the board.

(B) Upon receiving satisfactory evidenceverified by oaththat the applicant meets all the requirements ofdivision (A) ofthis section, the board shall issue theapplicant an embalmer'slicense.

(C) Any person who desires to be licensed as afuneraldirector shall apply to the board on a form provided bythe board.The application shall include an initial license feeas set forthin section 4717.07 of the RevisedCode and evidence, verified byoath and satisfactory tothe board, that the applicant meets allof the following requirements:

(1) Except as otherwise provided in division(D) of thissection, the applicant has satisfactorily met all therequirementsfor an embalmer's license as described in divisions(A)(1) to (4)of this section.

(2) The applicant has registered with the board prior tobeginning afuneral director apprenticeship.

(3) The applicant, following mortuary science collegetrainingdescribed in division (A)(4) of this section, has ~~served~~ satisfactorily completedaone-year apprenticeship under a licensed funeral director inthisstate and has assisted that person in directing at leasttwenty-five funerals.

(4) The applicant has satisfactorily completed theexamination fora funeral director's license as required by theboard.

(D) In lieu of mortuary science collegetraining requiredfor a funeraldirector's license under division (C)(1) of thissection,the applicant may substitute a satisfactorily completed two-year apprenticeshipunder alicensed funeral director in this state assisting thatperson indirecting at least fifty funerals.

(E) Upon receiving satisfactory evidence thatthe applicantmeets all the requirements of division (C)of this section, theboard shall issue to the applicant a funeraldirector's license.

(1) "Community control sanction" has the same meaning as insection 2929.01 of the Revised Code.

(2) "Post-release control sanction" has the same meaning asin section 2967.01 of the Revised Code.

(A) The practice of nursing by a studentcurrently enrolledin and actively pursuing completion of a prelicensurenursingeducation program approved by the board of nursing, ifthestudent's practice is underthe auspices of the program and thestudent acts under thesupervision of a registered nurse servingfor the programas a faculty member, teaching assistant, orpreceptor;

(B) The rendering of medical assistance to a licensedphysician,licensed dentist, or licensed podiatrist by a personunder thedirection, supervision, and control of such licensedphysician,dentist, or podiatrist;

(C) The activities of persons employed as nursing aides,attendants, orderlies, or other auxiliary workers in patienthomes, nurseries, nursing homes, hospitals, home health agencies,or other similar institutions;

(D) The provision of nursing services to family members orin emergency situations;

(E) The care of the sick whendone in connection with thepractice of religious tenets of any church and by or for itsmembers;

(F) The practice of nursing as a certified registerednurseanesthetist, clinical nurse specialist, certified nurse-midwife,or certifiednurse practitioner by a student currentlyenrolledin and actively pursuing completion of a program of studyleadingto initial authorization by the board to practice nursing in thespecialty, ifboth of thefollowing are the case:

(1) The program qualifies the student to sit for theexaminationofa national certifying organization listed indivision (A)(3) ofsection 4723.41 of the Revised Code or approvedby the board undersection4723.46 of the Revised Code ortheprogramprepares thestudent to receive a master's degree inaccordancewith division(A)(2) of section 4723.41 of the RevisedCode;

(2) The student's practice is under the auspices of theprogramand the student acts under the supervision of a registerednurseserving for the program as a faculty member, teachingassistant,or preceptor.

(G) Theactivities of an individual who currently holds alicense to practicenursing in another jurisdiction, if theindividual's license has not beenrevoked, the individual is notcurrently under suspension or on probation, theindividual doesnot represent the individual as being licensed under thischapter,and one of the following is the case:

(1) The individual is engaging in the practice of nursing bydischargingofficial duties while employed by or under contractwith theUnitedStates government or any agencythereof;

(2) The individual is engaging in the practice of nursing asan employeeof an individual, agency, or corporation located inthe otherjurisdiction in a position with employmentresponsibilitiesthat include transporting patients into, out of,or through thisstate, as long as each trip in this state does notexceed seventy-twohours;

(3) The individual is consulting with an individual licensedin thisstate to practice any health-related profession;

(4) The individual is engaging in activities associated withteaching inthis stateas a guest lecturer at or for a nursingeducationprogram, continuing nursing education program, orin-servicepresentation;

(5) The individual is conducting evaluations of nursing carethat areundertaken onbehalf of an accrediting organization,including the nationalleague for nursing accrediting committee,the joint commissionon accreditation of healthcare organizations,or any other nationallyrecognized accrediting organization;

(6) The individual is providing nursing care to anindividual who is inthis state on a temporary basis, not toexceed six months in anyone calendar year, if the nurse isdirectly employed by or undercontract with the individual or aguardian or other personacting on the individual's behalf;

(7) The individual is providing nursing care during anydisaster, naturalor otherwise, that has been officially declaredto be a disasterby a public announcement issued by an appropriatefederal,state, county, or municipal official.

(H) The administration of medication by an individual who holds a valid medication aide certificate issued under this chapter, if the medication is administered to a resident of a nursing home or residential care facility authorized by section 4723.63 or 4723.64 of the Revised Code to use a certified medication aide and the medication is administered in accordance with section 4723.67 of the Revised Code.

Sec. 4723.33. A registered nurse, licensed practical nurse,or dialysistechnician, community health worker, or medication aide who in good faith makes a report under thischapter or any otherprovision of the Revised Code regarding aviolation of this chapter or any other provisionof the RevisedCode, or participates in any investigation, administrativeproceeding, or judicial proceeding resulting from the report, hasthefull protection against retaliatory action provided bysections 4113.51 to4113.53 of the Revised Code.

(1) Every employer of registered nurses,licensed practicalnurses, or dialysis technicians shall reportto the board ofnursingthe name of any current or former employee who holds anursing license ordialysis technician certificateissued underthis chapter who has engaged in conduct that would be groundsfordisciplinary actionby the board under section 4723.28 of theRevisedCode. ~~Every~~

Every employer of certified community health workers shall report to the board the name of any current or former employee who holds a community health worker certificate issued under this chapter who has engaged in conduct that would be grounds for disciplinary action by the board under section 4723.86 of the Revised Code.

Every employer of medication aides shall report to the board the name of any current or former employee who holds a medication aide certificate issued under this chapter who has engaged in conduct that would be grounds for disciplinary action by the board under section 4723.652 of the Revised Code.

(2) Nursing associations shall report to the board thenameof any registered nurse or licensed practical nurse and dialysistechnician associations shall report to the board the name of anydialysistechnician who hasbeen investigated and found toconstitute a danger to the publichealth, safety, and welfarebecause of conduct that would begrounds for disciplinary actionby the board under section4723.28 of the Revised Code, exceptthat anassociation isnot required to report the individual'sname ifthe individual ismaintaining satisfactory participationin a peer support programapproved by the board under rulesadopted under section 4723.07of the Revised Code. ~~Community~~

Community health worker associations shall report to the board the name of any certified community health worker who has been investigated and found to constitute a danger to the public health, safety, and welfare because of conduct that would be grounds for disciplinary action by the board under section 4723.86 of the Revised Code, except that an association is not required to report the individual's name if the individual is maintaining satisfactory participation in a peer support program approved by the board under rules adopted under section 4723.07 of the Revised Code.

Medication aide associations shall report to the board the name of any medication aide who has been investigated and found to constitute a danger to the public health, safety, and welfare because of conduct that would be grounds for disciplinary action by the board under section 4723.652 of the Revised Code, except that an association is not required to report the individual's name if the individual is maintaining satisfactory participation in a peer support program approved by the board under rules adopted under section 4723.69 of the Revised Code.

(3) If the prosecutor in a case described in divisions(B)(3) to (5) of section 4723.28 of the Revised Code, or in acasewhere the trial court issued an order of dismissal upontechnicalor procedural grounds of a charge of a misdemeanorcommitted inthe course of practice, a felony charge, or a chargeof grossimmorality or moral turpitude, knows or has reason tobelieve thatthe person charged is licensed under this chapter topracticenursing as a registered nurse or as a licensed practicalnurse orholds a certificate issued under this chapterto practice as adialysis technician, the prosecutor shall notifythe board ofnursing. With regard to certified community health workers and medication aides, if the prosecutor in a case involving a charge of a misdemeanor committed in the course of employment, a felony charge, or a charge of gross immorality or moral turpitude, including a case dismissed on technical or procedural grounds, knows or has reason to believe that the person charged holds a community health worker or medication aide certificate issued under this chapter, the prosecutor shall notify the board.

Each notification required by this division shall be made on formsprescribed and provided by the board. The reportshall includethe name and address of the license or certificateholder, the charge,and thecertified court documents recordingthe action.

(B) If any person fails to provide a report required bythissection, the board may seek an order from a court ofcompetentjurisdiction compelling submission of the report.

Sec. 4723.341. (A) As used in this section,"person" hasthesame meaning as in section 1.59 of the Revised Code and alsoincludes the board of nursing and its members and employees;health care facilities, associations, and societies; insurers;andindividuals.

(B) In the absence of fraud or bad faith, no personreportingto the board of nursing or testifying in an adjudicationconducted under Chapter 119. of the Revised Code with regard toalleged incidents of negligence or malpractice or matterssubjectto this chapter or sections 3123.41 to 3123.50 of the Revised Codeand any applicable rules adopted under section 3123.63~~of theRevised Code or section~~ of the RevisedCode shall besubject toeither of the following based on making thereport ortestifying:

(1) Liability in damages in a civil action for injury,death, or loss toperson or property;

(C) An individual who is disciplined or dismissed inviolation of division (B)(2) of this section has the same rightsandduties accorded an employee under sections 4113.52 and 4113.53of the Revised Code.

(D) In the absence of fraud or bad faith, no professionalassociation ofregistered nurses, licensed practical nurses, ordialysis technicians, community health workers, or medication aides that sponsors a committee or program toprovide peerassistanceto individuals with substance abuseproblems, norepresentative oragent of such a committee orprogram, and no member of the boardof nursing shall be liable toany person for damages in a civilaction by reason of actionstaken to refer a nurse or, dialysistechnician, community health worker, or medication aide to a treatmentprovider or actions or omissions of theprovider in treating anurse or, dialysis technician, community health worker, or medication aide.

Sec. 4723.61. As used in this section and in sections 4723.62 to 4723.69 of the Revised Code:

(A) "Medication" means a drug, as defined in section 4729.01 of the Revised Code.

(B) "Medication error" means a failure to follow the prescriber's instructions when administering a prescription medication.

(D) "Prescription medication" means a medication that may be dispensed only pursuant to a prescription.

(E) "Prescriber" and "prescription" have the same meanings as in section 4729.01 of the Revised Code.

Sec. 4723.62. (A) There is hereby created the medication aide advisory council. The council shall consist of the following members:

(1) A registered nurse working in long-term care, appointed by the governing body of the Ohio nurses association;

(2) A licensed practical nurse working in long-term care, appointed by the governing body of the licensed practical nurse association of Ohio;

(3) A registered nurse with experience in researching gerontology issues, appointed by the governing body of the Ohio nurses association;

(4) An advanced practice nurse with experience in gerontology, appointed by the governing body of the Ohio association of advanced practice nurses;

(5) A representative of the Ohio health care association, appointed by the governing body of the association;

(6) A representative of the association of Ohio philanthropic homes, housing, and services for the aging, appointed by the governing body of the association;

(7) A representative of the Ohio academy of nursing homes, appointed by the governing body of the academy;

(8) A representative of the Ohio assisted living association, appointed by the governing body of the association;

(9) A representative of the Ohio association of long-term care ombudsmen, appointed by the governing body of the association;

(10) A representative of the American association of retired persons, appointed by the governing body of the association;

(11) A representative of facility residents and families of facility residents, appointed by the board of nursing;

(12) A representative of the senior care pharmacy alliance, appointed by the governing body of the alliance;

(13) A representative of nurse aides, as defined in section 3721.21 of the Revised Code, appointed by the director of health;

(14) A representative of the department of health with expertise in competency evaluation programs, as defined in section 3721.21 of the Revised Code, appointed by the director of health;

(15) A representative of the office of the state long-term care ombudsperson program, appointed by the state long-term care ombudsperson;

(16) A representative of the department of job and family services, appointed by the director of job and family services.

(B) Members of the council shall serve at the pleasure of their appointing authorities. Vacancies shall be filled in the manner provided for original appointments.

(C) Members shall receive no compensation for their service on the council, except to the extent that serving on the council is part of their regular duties of employment.

(D) The board of nursing shall appoint one of its members or a representative of the board to serve as the council's chairperson.

Sec. 4723.621. The medication aide advisory council created under section 4723.62 of the Revised Code shall make recommendations to the board of nursing with respect to all of the following:

(A) The design and operation of the medication aide pilot program conducted under section 4723.63 of the Revised Code, including a method of collecting data through reports submitted by participating nursing homes and residential care facilities;

(B) The content of the course of instruction required to obtain certification as a medication aide, including the examination to be used to evaluate the ability to administer prescription medications safely and the score that must be attained to pass the examination;

(C) Whether medication aides may administer prescription medications through a gastrostomy or jejunostomy tube and the amount and type of training a medication aide needs to be adequately prepared to administer prescription medications through a gastrostomy or jejunostomy tube;

(D) Protection of the health and welfare of the residents of nursing homes and residential care facilities participating in the pilot program and using medication aides pursuant to section 4723.64 of the Revised Code on or after July 1, 2007;

(F) Any other issue the council considers relevant to the use of medication aides in nursing homes and residential care facilities.

Sec. 4723.63. (A) In consultation with the medication aide advisory council established under section 4723.62 of the Revised Code, the board of nursing shall conduct a pilot program for the use of medication aides in nursing homes and residential care facilities. The board shall conduct the pilot program in a manner consistent with human protection and other ethical concerns typically associated with research studies involving live subjects. The pilot program shall be commenced not later than May 1, 2006, and shall be conducted until July 1, 2007.

During the period the pilot program is conducted, a nursing home or residential care facility participating in the pilot program may use one or more medication aides to administer prescription medications to its residents, subject to both of the following conditions:

(1) Each individual used as a medication aide must hold a current, valid medication aide certificate issued by the board of nursing under this chapter.

(2) The nursing home or residential care facility shall ensure that the requirements of section 4723.67 of the Revised Code are met.

(B) The board, in consultation with the medication aide advisory council, shall do all of the following not later than February 1, 2006:

(2) Establish standards to govern medication aides and the nursing homes and residential care facilities participating in the pilot program, including standards for the training of medication aides and the staff of participating nursing homes and residential care facilities;

(3) Establish standards to protect the health and safety of the residents of the nursing homes and residential care facilities participating in the program;

(4) Implement a process for selecting the nursing homes and residential care facilities to participate in the program.

(C)(1) A nursing home or residential care facility may volunteer to participate in the pilot program by submitting an application to the board on a form prescribed and provided by the board. From among the applicants, the board shall select eighty nursing homes and forty residential care facilities to participate in the pilot program.

(2) To be eligible to participate, a nursing home or residential care facility shall agree to observe the standards established by the board for the use of medication aides. A nursing home is eligible to participate only if the department of health has found in the two most recent surveys or inspections of the home that the home is free from deficiencies related to the administration of medication. A residential care facility is eligible to participate only if the department has found that the facility is free from deficiencies related to the provision of skilled nursing care or the administration of medication.

(D) As a condition of participation in the pilot program, a nursing home and residential care facility selected by the board shall pay the participation fee established in rules adopted under section 4723.69 of the Revised Code. The participation fee is not reimbursable under the medicaid program established under Chapter 5111. of the Revised Code.

(E) On receipt of evidence found credible by the board that continued participation by a nursing home or residential care facility poses an imminent danger, risk of serious harm, or jeopardy to a resident of the home or facility, the board may terminate the authority of the home or facility to participate in the pilot program.

(F)(1) With the assistance of the medication aide advisory council, the board shall conduct an evaluation of the pilot program. In conducting the evaluation, the board shall do all of the following:

(a) Assess whether medication aides are able to administer prescription medications safely to nursing home and residential care facility residents;

(b) Determine the financial implications of using medication aides in nursing homes and residential care facilities;

(2) Not later than March 1, 2007, the board shall prepare a report of its findings and recommendations derived from the evaluation of the pilot program. The board shall submit the report to the governor, president and minority leader of the senate, speaker and minority leader of the house of representatives, and director of health.

Sec. 4723.64. On and after July 1, 2007, any nursing home or residential care facility may use one or more medication aides to administer prescription medications to its residents, subject to both of the following conditions:

(A) Each individual used as a medication aide must hold a current, valid medication aide certificate issued by the board of nursing under this chapter.

(B) The nursing home or residential care facility shall ensure that the requirements of section 4723.67 of the Revised Code are met.

Sec. 4723.65. (A) An individual seeking certification as a medication aide shall apply to the board of nursing on a form prescribed and provided by the board. If the application is submitted on or after July 1, 2007, the application shall be accompanied by the certification fee established in rules adopted under section 4723.69 of the Revised Code.

(B)(1) Except as provided in division (B)(2) of this section, an applicant for a medication aide certificate shall submit a request to the bureau of criminal identification and investigation for a criminal records check. The request shall be on the form prescribed pursuant to division (C)(1) of section 109.572 of the Revised Code and shall be accompanied by a standard impression sheet to obtain fingerprints prescribed pursuant to division (C)(2) of that section. The request shall also be accompanied by the fee prescribed pursuant to division (C)(3) of section 109.572 of the Revised Code. On receipt of the completed form, the completed impression sheet, and the fee, the bureau shall conduct a criminal records check of the applicant. On completion of the criminal records check, the bureau shall send the results of the check to the board. An applicant requesting a criminal records check under this division shall ask the superintendent of the bureau of criminal identification and investigation to also request that the federal bureau of investigation provide the superintendent with any information it has with respect to the applicant.

(2) If a criminal records check of an applicant was completed pursuant to section 3721.121 of the Revised Code not more than five years prior to the date the application is submitted, the applicant may include a certified copy of the criminal records check completed pursuant to that section and is not required to comply with division (B)(1) of this section.

(3) A criminal records check provided to the board in accordance with division (B)(1) or (B)(2) of this section shall not be made available to any person or for any purpose other than the following:

(a) The results may be made available to any person for use in determining whether the individual who is the subject of the check should be issued a medication aide certificate.

(b) The results may be made available to the person who is the subject of the check or a representative of that person.

Sec. 4723.651. (A) To be eligible to receive a medication aide certificate, an applicant shall meet all of the following conditions:

(2) Have a high school diploma or a high school equivalence diploma as defined in section 5107.40 of the Revised Code;

(3) If the applicant is to practice as a medication aide in a nursing home, be a nurse aide who satisfies the requirements of division (A)(1), (2), (3), (4), (5), (6), or (8) of section 3721.32 of the Revised Code;

(4) If the applicant is to practice as a medication aide in a residential care facility, be a nurse aide who satisfies the requirements of division (A)(1), (2), (3), (4), (5), (6), or (8) of section 3721.32 of the Revised Code or an individual who has at least one year of direct care experience in a residential care facility;

(5) Successfully complete the course of instruction provided by a training program approved by the board under section 4723.66 of the Revised Code;

(6) Have results on the criminal records check provided to the board under division (B)(1) or (2) of section 4723.65 of the Revised Code indicating that the applicant has not been convicted of, has not pleaded guilty to, and has not had a judicial finding of guilt for violating section 2903.01, 2903.02, 2903.03, 2903.11, 2905.01, 2907.02, 2907.03, 2907.05, 2909.02, 2911.01, or 2911.11 of the Revised Code or a substantially similar law of another state, the United States, or another country;

(7) Meet all other requirements for a medication aide certificate established in rules adopted under section 4723.69 of the Revised Code.

(B) If an applicant meets the requirement specified in division (A) of this section, the board shall issue a medication aide certificate to the applicant. If a medication aide certificate is issued to an individual on the basis of having at least one year of direct care experience working in a residential care facility, as provided in division (A)(4) of this section, the certificate is valid for use only in a residential care facility. The board shall state the limitation on the certificate issued to the individual.

(C) A medication aide certificate is valid for two years, unless earlier suspended or revoked. The certificate may be renewed in accordance with procedures specified by the board in rules adopted under section 4723.69 of the Revised Code. To be eligible for renewal, an applicant shall pay the renewal fee established in the rules and meet all renewal qualifications specified in the rules.

Sec. 4723.652. (A) The board of nursing, by vote of a quorum, may impose one or more of the following sanctions against any individual who applies for, or holds, a medication aide certificate: deny, revoke, suspend, or place restrictions on the certificate; reprimand or otherwise discipline the holder of a medication aide certificate; or impose a fine of not more than five hundred dollars per violation. The sanctions may be imposed for any of the reasons specified in division (B) of section 4723.28 of the Revised Code, to the extent that those reasons are applicable to medication aides as specified in rules adopted under section 4723.69 of the Revised Code.

(B) Disciplinary actions taken by the board under this section shall be taken pursuant to an adjudication conducted under Chapter 119. of the Revised Code, except that in lieu of a hearing, the board may enter into a consent agreement with an individual to resolve an allegation of a violation of this chapter or any rule adopted under it. A consent agreement, when ratified by vote of a quorum, shall constitute the findings and order of the board with respect to the matter addressed in the agreement. If the board refuses to ratify a consent agreement, the admissions and findings contained in the agreement shall be of no effect.

(C) In taking actions under this section, the board has the same powers and duties that it has when taking actions under section 4723.28 of the Revised Code. In addition, the board may issue an order to summarily suspend or automatically suspend a medication aide certificate in the same manner that the board is authorized to take those actions under section 4723.281 of the Revised Code.

Sec. 4723.66. (A) A person or government entity seeking approval to provide a medication aide training program shall apply to the board of nursing on a form prescribed and provided by the board. If the application is submitted on or after July 1, 2007, the application shall be accompanied by the fee established in rules adopted under section 4723.69 of the Revised Code.

(B) The board shall approve the applicant to provide a medication aide training program if the content of the course of instruction to be provided by the program meets the standards specified by the board in rules adopted under section 4723.69 of the Revised Code and includes all of the following:

(1) At least seventy clock-hours of instruction, including both classroom instruction on medication administration and at least twenty clock-hours of supervised clinical practice in medication administration;

(2) A mechanism for evaluating whether an individual's reading, writing, and mathematical skills are sufficient for the individual to be able to administer prescription medications safely;

(3) An examination that tests the ability to administer prescription medications safely and that meets the requirements established by the board in rules adopted under section 4723.69 of the Revised Code.

(C) The board may deny, suspend, or revoke the approval granted to the provider of a medication aide training program for reasons specified in rules adopted under section 4723.69 of the Revised Code. All actions taken by the board to deny, suspend, or revoke the approval of a training program shall be taken in accordance with Chapter 119. of the Revised Code.

Sec. 4723.67. (A) Except for the prescription medications specified in division (C) of this section and the methods of medication administration specified in division (D) of this section, a medication aide who holds a current, valid medication aide certificate issued under this chapter may administer prescription medications to the residents of nursing homes and residential care facilities that use medication aides pursuant to section 4723.63 or 4723.64 of the Revised Code. A medication aide shall administer prescription medications only pursuant to the delegation of a registered nurse or a licensed practical nurse acting at the direction of a registered nurse.

Delegation of medication administration to a medication aide shall be carried out in accordance with the rules for nursing delegation adopted under this chapter by the board of nursing. A nurse who has delegated to a medication aide responsibility for the administration of prescription medications to the residents of a nursing home or residential care facility shall not withdraw the delegation on an arbitrary basis or for any purpose other than patient safety.

(B) In exercising the authority to administer prescription medications pursuant to nursing delegation, a medication aide may administer prescription medications in any of the following categories:

(5) Medications prescribed with a designation authorizing or requiring administration on an as-needed basis, but only if a nursing assessment of the patient is completed before the medication is administered.

(1) Medications containing a schedule II controlled substance, as defined in section 3719.01 of the Revised Code;

(D) A medication aide shall not administer prescription medications by any of the following methods:

(E) A nursing home or residential care facility that uses medication aides shall ensure that medication aides do not have access to any schedule II controlled substances within the home or facility for use by its residents.

Sec. 4723.68. (A) A registered nurse, or licensed practical nurse acting at the direction of a registered nurse, who delegates medication administration to a medication aide who holds a current, valid medication aide certificate issued under this chapter is not liable in damages to any person or government entity in a civil action for injury, death, or loss to person or property that allegedly arises from an action or omission of the medication aide in performing the medication administration, if the delegating nurse delegates the medication administration in accordance with this chapter and the rules adopted under this chapter.

(B)A person employed by a nursing home or residential care facility that uses medication aides pursuant to section 4723.63 or 4723.64 of the Revised Code who reports in good faith a medication error at the nursing home or residential care facility is not subject to disciplinary action by the board of nursing or any other government entity regulating that person's professional practice and is not liable in damages to any person or government entity in a civil action for injury, death, or loss to person or property that allegedly results from reporting the medication error.

Sec. 4723.69. (A) In consultation with the medication aide advisory council created under section 4723.62 of the Revised Code, the board of nursing shall adopt rules to implement sections 4723.61 to 4723.68 of the Revised Code. Initial rules shall be adopted not later than February 1, 2006. All rules adopted under this section shall be adopted in accordance with Chapter 119. of the Revised Code.

(B) The rules adopted under this section shall establish or specify all of the following:

(1) Fees, in an amount sufficient to cover the costs the board incurs in implementing sections 4723.61 to 4723.68 of the Revised Code, for participation in the medication aide pilot program, certification as a medication aide, and approval of a medication aide training program;

(2) Requirements to obtain a medication aide certificate that are not otherwise specified in section 4723.651 of the Revised Code;

(4) The extent to which the board determines that the reasons for taking disciplinary actions under section 4723.28 of the Revised Code are applicable reasons for taking disciplinary actions under section 4723.652 of the Revised Code against an applicant for or holder of a medication aide certificate;

(5) Standards for approval of peer support programs for the holders of medication aide certificates;

(6) Standards for medication aide training programs, including the examination to be administered by the training program to test an individual's ability to administer prescription medications safely;

(7) Reasons for denying, revoking, or suspending approval of a medication aide training program;

(8) Other standards and procedures the board considers necessary to implement sections 4723.61 to 4723.68 of the Revised Code.

Sec. ~~4723.63~~ 4723.91. On receipt of a notice pursuant to section3123.43 of the Revised Code, the board of nursingshall complywith sections 3123.41 to 3123.50 of the Revised Code andanyapplicable rules adopted under section 3123.63 of the Revised Codewith respect to anursing license, medication aide certificate, dialysis techniciancertificate, or community health worker certificate issued pursuant tothis chapter.

(a) Any examination of materials derived from the humanbody for the purpose of providing information for the diagnosis,prevention, or treatment of any disease or impairment or for theassessment of health;

(b) Procedures to determine, measure, or otherwisedescribe the presence or absence of various substances ororganisms in the body.

(2) "Clinical laboratory services" does not include themere collection or preparation of specimens.

(1) With respect to rentals or leases, the value of rentalproperty for general commercial purposes, not taking into accountits intended use;

(2) With respect to a lease of space, not adjusted toreflect the additional value the prospective lessee or lessorwould attribute to the proximity or convenience to the lessor ifthe lessor is a potential source of referrals to the lessee.

(D) "Governmental health care program" meansany programproviding health care benefits that is administered by thefederal government, this state, or a political subdivision ofthis state, including the medicare program established underTitle XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42U.S.C.A. 301, as amended, health care coverage for publicemployees, health care benefits administered by the bureau ofworkers' compensation, or the medical assistance program establishedunder Chapter 5111. of the Revised Code~~, and the disability medicalassistance program establishedunder Chapter 5115. of the Revised Code~~.

(E)(1) "Group practice" means a group of twoor moreholders of certificates under this chapter legally organized as apartnership, professional corporation or association, limited liabilitycompany, foundation, nonprofit corporation, faculty practice plan,or similar group practice entity, including an organization comprised of anonprofit medical clinic that contracts with a professionalcorporation or association of physicians to provide medicalservices exclusively to patients of the clinic in order to complywith section 1701.03 of the Revised Codeand including a corporation, limited liability company,partnership, or professional association described in division(B) of section 4731.226 of the Revised Code formedfor the purpose of providing a combination of the professional services ofoptometrists who are licensed, certificated, or otherwise legally authorizedto practice optometry under Chapter 4725. of the RevisedCode, chiropractors whoare licensed, certificated, or otherwise legally authorized to practicechiropractic under Chapter 4734. of the Revised Code,psychologists who are licensed, certificated, orotherwise legally authorized to practice psychology underChapter 4732. of the Revised Code, registered or licensedpractical nurses who are licensed, certificated, or otherwiselegally authorized to practice nursing underChapter 4723. of the Revised Code,pharmacists who are licensed,certificated, or otherwise legally authorized to practicepharmacy under Chapter 4729. ofthe Revised Code, physicaltherapists who are licensed, certificated, or otherwise legallyauthorized to practice physical therapy under sections 4755.40to 4755.53 of the RevisedCode,mechanotherapists who are licensed, certificated, orotherwise legally authorized to practice mechanotherapy undersection 4731.151 of the RevisedCode,and doctors ofmedicine and surgery, osteopathic medicine and surgery, or podiatric medicineand surgery who are licensed, certificated, or otherwise legally authorizedfor their respective practices under this chapter, to which all of thefollowing apply:

(a) Each physician who is a member of the group practiceprovides substantially the full range of services that thephysician routinely provides, including medical care,consultation, diagnosis, or treatment, through the joint use ofshared office space, facilities, equipment, and personnel.

(b) Substantially all of the services of the members of the group areprovidedthrough the group andare billed in the name of the group and amounts so received aretreated as receipts of the group.

(c) The overhead expenses of and the income from thepractice are distributed in accordance with methods previouslydetermined by members of the group.

(d) The group practice meets any other requirements thatthe state medical board applies in rules adopted under section4731.70 of the Revised Code.

(2) In the case of a faculty practice plan associated witha hospital with a medical residency training program in whichphysician members may provide a variety of specialty services andprovide professional services both within and outside the group,as well as perform other tasks such as research, the criteria indivision (E)(1) of this section apply onlywith respect toservices rendered within the faculty practice plan.

(F) "Home health care services" and"immediate family" have the same meanings as inthe rules adopted under section 4731.70 of the Revised Code.

(1) A request by a holder of a certificate under thischapter for an item or service, including a request for aconsultation with another physician and any test or procedureordered by or to be performed by or under the supervision of theother physician;

(2) A request for or establishment of a plan of care by acertificate holder that includes the provision of designated health services.

(I) "Third-party payer" has the same meaningas in section 3901.38 of the Revised Code.

Sec. 4731.71. The auditor of state may implement procedurestodetect violations of section 4731.66 or 4731.69 of the RevisedCode withingovernmental health care programs administered by thestate. The auditor ofstate shall report any violation of eithersection to the state medical boardand shall certify to theattorney general in accordance with section 131.02 ofthe RevisedCode the amount of any refund owed to a state-administeredgovernmental health care program under section 4731.69 of theRevised Code asa result of a violation. If a refund is owed tothe medical assistanceprogram established under Chapter 5111. ofthe Revised Code ~~or the disability medical assistanceprogram established under Chapter 5115. of theRevised Code~~, theauditor of state also shallreport the amount to the department ofcommerce.

The state medical board also may implement procedures todetect violationsof section 4731.66 or 4731.69 of the RevisedCode.

Sec. 4736.11. The state board of sanitarian registrationshall issue a certificate of registration to any applicant whomit registers as a sanitarian or a sanitarian-in-training. Suchcertificate shall bear:

(D) The seal of the board and signature of the ~~chairman~~chairperson ofthe board;

Certificates of registration shall expire annually on thedate fixed by the board and become invalid on that date unlessrenewed pursuant to this section. All registered sanitariansshall be required annually to complete a continuing educationprogram in subjects relating to practices of the profession as asanitarian to the end that the utilization and application of newtechniques, scientific advancements, and research findings willassure comprehensive service to the public. The board shallprescribe by rule a continuing education program for registeredsanitarians to meet this requirement. The length of study forthis program shall be determined by the board but shall be notless than six nor more than twenty-five hours during the calendaryear. At least once annually the board shall ~~mail~~ provide to eachregistered sanitarian a list of courses approved by the board assatisfying the program prescribed by rule. Upon the request of aregistered sanitarian, the secretary shall supply a list of ~~anyadditional~~ applicable courses that the board has approved ~~since the mostrecent mailing~~. A certificate may be renewed for a period of oneyear at any time prior to the date of expiration upon payment ofthe renewal fee prescribed by section 4736.12 of the Revised Codeand upon showing proof of having complied with the continuingeducation requirements of this section. The state board ofsanitarian registration may waive the continuing educationrequirement in cases of certified illness or disability whichprevents the attendance at any qualified educational seminarsduring the twelve months immediately preceding the annualcertificate of registration renewal date. Certificates whichexpire may be reinstated under rules adopted by the board.

Sec. 4736.12. (A) The state board of sanitarianregistration shall charge the following fees:

(2) For sanitarians-in-training to apply for registrationassanitarians, ~~seventy-five~~ eighty dollars. The applicantshallpay thisfee only once regardless of the number of times theapplicanttakesan examination required under section 4736.08 ofthe RevisedCode.

(3) For persons other than sanitarians-in-training toapplyfor registration as sanitarians, including persons meetingtherequirements of section 4736.16 of the Revised Code, onehundred ~~fifty~~ sixty dollars. Theapplicant shall pay this fee only onceregardless of the numberof times the applicant takes anexamination required under section4736.08 of the Revised Code.

(4) The renewal fee for registered sanitarians shall be~~sixty-nine~~ seventy-four dollars.

(5) The renewal fee for sanitarians-in-training shall be~~sixty-nine~~ seventy-four dollars.

The board of sanitarian registration, with the approval ofthe controlling board, may establish fees in excess of theamountsprovided in this section, provided that such fees do notexceedthe amounts permitted by this section by more than fiftyper cent.

(B) The board of sanitarian registration shall chargeseparate fees for examinations as required by section 4736.08 ofthe Revised Code, provided that the fees are not in excess of theactual cost to the board of conducting the examinations.

(1) Application for the registration of a training agencyapproved underrules adopted by the board pursuant to section4736.11 of the Revised Code and for the annualregistrationrenewal of an approved training agency.

(2) Application for the review of continuing education hourssubmitted forthe board's approval by approved training agenciesor by registeredsanitarians or sanitarians-in-training.

Sec. 4740.14. (A) There is hereby created within thedepartmentof commerce the residential construction advisorycommittee consisting of~~eight~~ nine persons the director ofcommerce appoints. Of the advisory committee'smembers, three shall begeneralcontractors who have recognized ability and experienceintheconstruction of residential buildings, two shall be buildingofficialswho have experience administering and enforcing aresidential building code, one, chosen from a list of three names the Ohio fire chief's association submits, shall be from the fire servicecertified as a fire safety inspector who has at least ten years ofexperienceenforcing fire or building codes, one shall be aresidentialcontractor who has recognizedability and experiencein theremodelingand construction of residential buildings, ~~and~~ oneshall be an architectregistered pursuant to Chapter 4703. of theRevised Code, with recognized ability and experience in thearchitecture of residential buildings, and one, chosen from a list of three names the Ohio municipal league submits to the director, shall be a mayor of a municipal corporation in which the Ohio residential building code is being enforced in the municipal corporation by a certified building department.

(B) The director shall make appointments to the advisorycommittee within ninety days after~~the effective date of thissection~~ May 27, 2005. Termsof office shall befor threeyears, with each termending on the date three years after thedateof appointment.Eachmember shall hold office from the dateof appointmentuntiltheend of the term for which the member wasappointed. Thedirectorshall fill a vacancy in the mannerprovided for initialappointments. Anymember appointed to fill avacancy in anunexpired term shall hold office for theremainder ofthat term.

(1) Recommend to the board of buildingstandards abuilding codefor residential buildings. The committee shall recommend a codethat it models on a residential building code anational model code organization issues, with adaptations necessary to implement the code in this state. If the board ofbuildingstandards decides not to adopt a code thecommittee recommends, the committee shall revise the code and resubmitit until the board adopts a code thecommittee recommends as the state residential building code;

(2) Advise the board regarding the establishment ofstandards forcertification of building officials who enforce the state residentialbuilding code;

(3) Assist the board in providing information and guidancetoresidentialcontractors and buildingofficials whoenforce the state residentialbuilding code;

(4)Advise the board regarding the interpretation of thestate residential building code;

(D) In making its recommendation to the board pursuant todivision (C)(1) of this section, the advisory committee shallconsider all of the following:

(1) The impact that thestate residential building code mayhave uponthe health,safety, and welfare of the public;

(4) The financial impact that theresidentialbuildingcode mayhave on thepublic's ability to purchaseaffordablehousing.

(E) Members of the advisorycommittee shall receive nosalary forthe performance of their duties as members, but shallreceive their actual andnecessary expenses incurred in theperformance of their duties as members ofthe advisory committee and shall receive a per diem for each day in attendance at an official meeting of the committee, to be paid from the industrial compliance operating fund in the state treasury, using fees collected in connection with residential buildings pursuant to division (F)(2) of section 3781.102 of the Revised Code and deposited in that fund.

(F) The advisory committee is not subject to divisions(A)and (B) of section 101.84 of the Revised Code.

Sec. 4753.03. There is hereby created the board ofspeech-language pathology and audiology consisting of eightresidents of this state to be appointed by the governor with theadvice and consent of the senate. Three members of the boardshall be licensed speech-language pathologists, and three membersshall be licensed audiologists, who have been licensed andengaged in the practice, teaching, administration, or research inthe area of appointment for at least five years prior to thedates of their appointment. Beginning with the first appointmentof an audiologist to the board after ~~the effective date of thisamendment~~ November 5, 1992, at all times one of theaudiologistsserving on the board must be an audiologist engaged in thepractice of fitting and dispensing hearing aids. At all times,two members shall be representatives of the general public, andneither shall be a speech-language pathologist or audiologist ora person licensed under this chapter. At least one of themembers representing the general public shall be at least sixtyyears of age. Any speech-language pathologists and audiologistsamong the initial appointees shall have at least a bachelor'sdegree in speech-language pathology or audiology and shall meetthe standards for licensure, other than examination, establishedby section 4753.06 or 4753.08 of the Revised Code. Anyspeech-language pathologist or audiologist appointed to the boardafter the effective date of this amendment, musthold a master's or doctorate degree.

Terms of office shall be for three years, each termcommencing on the twenty-seventh day of September and ending onthe twenty-sixth day of September. Each member shall hold officefrom the date of ~~his~~ appointment until the end of the term forwhich ~~he was~~ appointed. Any member appointed to fill a vacancyoccurring prior to the expiration of the term for which ~~his~~ themember's predecessor was appointed shall hold office for the remainder ofsuch term. Any member shall continue in office subsequent to theexpiration date of ~~his~~ the member's term until ~~his~~ themember's successor takes office, oruntil a period of sixty days has elapsed, whichever occurs first. No personshall be appointed to serve consecutively more than twofull terms. The executive council of the Ohio speech and hearingassociation may recommend, within forty-five days after anyvacancy or expiration of a member's term occurs, no more thanthree persons to fill each position or vacancy on the board, andthe governor may make ~~his~~ the appointment from the persons sorecommended. If the council fails to make recommendations withinthe required time, the governor shall make the appointmentwithout its recommendations.

The terms of all speech-language pathology members shallnot end in the same year; the terms of all audiology membersshall not end in the same year. Upon the first appointmentfollowing ~~the effective date of this amendment~~ November 5, 1992, the governor shall appoint speech-language pathology members andaudiology members to one-, two-, or three-year terms to preventthe terms of all speech-language pathology members or allaudiology members from ending in the same year. Thereafter, allterms shall be for three years.

Sec. 4753.06. No person is eligible for licensure as aspeech-language pathologist or audiologist unless:

(A) He The person has obtained a broad general education toserve as a background for ~~his~~ the person's specialized academictraining and preparatory professional experience. Such background may includestudy from among the areas of human psychology, sociology,psychological and physical development, the physical sciences,especially those that pertain to acoustic and biologicalphenomena, and human anatomy and physiology, includingneuroanatomy and neurophysiology.

(B) He If the person seeks licensure as a speech-language pathologist, the person submits to the board of speech-language pathology and audiology an official transcriptdemonstrating that he the person has at least a master's degreein ~~the area in which licensure is sought~~ speech-language pathology or the equivalent as determined bythe board. ~~His~~ The person's academic credit must include coursework accumulated in the completion of a well-integrated course ofstudy approved by the board and delineated by rule dealing withthe normal aspects of human communication, development anddisorders thereof, and clinical techniques for the evaluation andthe improvement or eradication of such disorders. The coursework must have been completed at colleges or universitiesaccredited by regional or national accrediting organizationsrecognized by the board.

(C) He If the person seeks licensure as an audiologist, the person submits to the board an official transcript demonstrating that the person has at least a doctor of audiology degree or the equivalent as determined by the board. The person's academic credit must include course work accumulated in the completion of a well-integrated course of study approved by the board and delineated by rules dealing with the normal aspects of human hearing, balance, and related development and clinical evaluation, audiologic diagnosis, and treatment of disorders of human hearing, balance, and related development. The course work must have been completed in an audiology program that is accredited by an organization recognized by the United States department of education and operated by a college or university accredited by a regional or national accrediting organization recognized by the board.

(D) The person submits to the board evidence of the completion ofappropriate, supervised clinical experience in the professionalarea, speech-language pathology or audiology, for which licensureis requested, dealing with a variety of communication disorders.The appropriateness of the experience shall be determined underrules of the board. This experience shall have been obtained inan accredited college or university, in a cooperating program ofan accredited college or university, or in another programapproved by the board.

~~(D) He~~ (E) The person submits to the board evidence that the person has passed the examination for licensure to practice speech-language pathology or audiology pursuant to division (B) of section 4753.05 of the Revised Code.

(F) If the person submits to the board an application for licensure as an audiologist before January 1, 2006, and meets the requirements of division (B) of this section regarding a master's degree in audiology as that division existed on December 31, 2005, but not the requirements of division (C) of this section regarding a doctor of audiology degree or if the person seeks licensure as a speech-language pathologist, the person presents to the board written evidence thathe the person hasobtained professional experience. The professional experienceshall be appropriately supervised as determined by board rule.The amount of professional experience shall be determined byboard rule and shall be bona fide clinical work that has beenaccomplished in the major professional area, speech-languagepathology or audiology, in which licensure is being sought. ~~This~~If the person seeks licensure as a speech-language pathologist, this experience shall not begin until the requirements of divisions(B) ~~and (C)~~, (D), and (E) of this section have been completed unless approvedby the board. If the person seeks licensure as an audiologist, this experience shall not begin until the requirements of division (B) of this section, as that division existed on December 31, 2005, and divisions (D) and (E) of this section have been completed unless approved by the board. Before beginning the supervised professionalexperience pursuant to this section, ~~any~~ the applicant for licensureto practice speech-language pathology or audiology shall ~~meet therequirements for~~ obtain a conditional license pursuant to section4753.071 of the Revised Code.

~~(E) He submits to the board evidence that he has passed the examination for licensure to practicespeech-language pathology or audiology pursuant to division (B) of section4753.05 of the Revised Code.~~

Sec. 4753.071. A person who is required to meet the supervised professional experience requirement of division (F) of section 4753.06 of the Revised Code shall submit to the board of speech-language pathology and audiology an application for a conditional license. The application shall include a plan for the content of the supervised professional experience on a form the board shall prescribe. The board ~~of speech-language pathology andaudiology~~ shall issue a the conditional license to an the applicant ~~who,except for the supervised professional experience:~~

~~(A) Meets~~ if the applicant meets the ~~academic, practicum, and examination~~requirements of ~~divisions (B), (C), and (E) of~~ section 4753.06 ofthe Revised Code;

~~(B) Submits an application to the board, including a planfor the content of the supervised professional experience on aform prescribed by the board~~, other than the requirement to have obtained the supervised professional experience, and pays to the board theappropriate fee for a conditional license. An applicant may notbegin employment until the conditional license has been ~~approved~~ issued.

A conditional license authorizes an individual to practicespeech-language pathology or audiology while completing thesupervised professional experience as required by division ~~(D)~~(F) ofsection 4753.06 of the Revised Code. A person holding aconditional license may practice speech-language pathology oraudiology while working under the supervision of a person fullylicensed in accordance with this chapter. A conditional licenseis valid for eighteen months unless suspended or revoked pursuantto section 3123.47 or 4753.10 of the Revised Code.

A person holding a conditional license may perform servicesfor which reimbursement will be sought under the medicare programestablished under Title XVIII of the "Social Security Act," 4979 Stat. ~~620~~ 286 (~~1935~~ 1965), 42 U.S.C. ~~301~~ 1395, as amended, or the ~~medicalassistance~~ medicaid program established under Chapter 5111. of the RevisedCode ~~and Title XIX of the "Social Security Act"~~but all requests for reimbursement for such services shall be made by thepersonwho supervises the person performing the services.

Sec. 4753.08. The board of speech-language pathology andaudiology shall waive the examination, educational,andprofessional experience requirements for any applicant who meets any of the following requirements:

(A) On September 26, 1975, has at least a bachelor'sdegreewith a major in speech-language pathology or audiologyfrom anaccredited college or university, or who has beenemployed as aspeech-language pathologist or audiologist for atleast ninemonths at any time within the three years prior toSeptember 26,1975, if an application providing bona fide proofof such degreeor employment is filed with the board within oneyear afterSeptember 26, 1975, and is accompanied by theapplication fee asprescribed in division (A) of section 4753.11of the Revised Code;

(B) Presents proof of current certification or licensureingood standing in the area in which licensure is sought in astate~~which~~ that has standards at least equal to ~~those~~ the standards for licensurethat are in effect in thisstate at the time the applicant applies for the license;

(1) Having current certification or licensure in good standing in audiology in a state that has standards at least equal to the standards for licensure as an audiologist that were in effect in this state on December 31, 2005;

(2) Having first obtained that certification or licensure not later than December 31, 2007.

(D) Presents proof of a current certificate of clinicalcompetence in speech-language pathology or audiology that is ingood standing and received from the Americanspeech-language-hearing association in the area in whichlicensureis sought.

Sec. 4753.09. Except as provided in this section and insection 4753.10 of the Revised Code, a license issued by theboard of speech-language pathology and audiology shall be renewedbiennially in accordance with the standard renewal procedurecontained in Chapter 4745. of the Revised Code. If theapplication for renewal is made ~~after~~ one year or longer after the renewal application is due, the person shallapply for licensure as provided in section 4753.06 or division(B) or, (C), or (D) of section 4753.08 of the Revised Code. The boardshall not renew a conditional license; however, the board maygrant an applicant a second conditional license.

The board shall establish by rule adopted pursuant toChapter 119. of the Revised Code the qualifications for licenserenewal. Applicants shall demonstrate continued competence,which may include continuing education, examination,self-evaluation, peer review, performance appraisal, or practicalsimulation. The board may establish other requirements as acondition for license renewal as considered appropriate by theboard.

The board may renew a license which expires while thelicense is suspended, but the renewal shall not affect thesuspension. The board shall not renew a license which has beenrevoked. If a revoked license is reinstated under section4753.10 of the Revised Code after it has expired, the licensee,as a condition of reinstatement, shall pay a reinstatement fee inthe amount equal to the renewal fee in effect on the lastpreceding regular renewal date on which it is reinstated, plusany delinquent fees accrued from the time of the revocation, ifsuch a fee is prescribed by the board by rule. A license shallnot be renewed six years after the initial date on which thelicense was granted for a person initially licensed by exemptionuntil that person presents to the board proof of completion ofthe following requirements:

(A) Upon presentation of proof of a bachelor's degree witha major in the area of licensure or successful completion of atleast eighteen semester hours of academic credit, or itsequivalent as determined by the board by rule for colleges anduniversities not using semesters, accumulated from accreditedcolleges and universities. These eighteen semester hours shallbe in a variety of courses that provide instruction related tothe nature of communication disorders and present informationpertaining to and training in the evaluation and management ofspeech, language, and hearing disorders and shall be in theprofessional area, speech-language pathology or audiology, forwhich licensure is requested.

(B) Successful completion of at least one hundred fiftyclock hours of appropriately supervised, as determined by boardrule, clinical experience in the professional area,speech-language pathology or audiology, for which licensure isrequested, with individuals who present a variety ofcommunication disorders, and the experience shall have beenobtained under the supervision of a licensed speech-languagepathologist or audiologist, or within another program approved bythe board.

Sec. 4755.03. There is hereby created the Ohiooccupational therapy, physical therapy, and athletic trainersboard consisting of sixteen residents of this state, who shall beappointed by the governor with the advice and consent of thesenate. The board shall be composed of a physical therapysection, an occupational therapy section, and an athletictrainers section.

Five members of the board shall be physical therapists whoare licensed to practice physical therapy and who have beenengaged in or actively associated with the practice of physicaltherapy in this state for at least five years immediatelypreceding appointment. Such members of the board shall sit onthe physical therapy section. The physical therapy section alsoshall consist of four additional members, appointed by thegovernor with the advice and consent of the senate, who satisfythe same qualifications as the members of the board sitting onthe physical therapy section, but who are not members of theboard. Such additional members of the physical therapy sectionare vested with only such powers and shall perform only suchduties as relate to the affairs of that section, shall serve forthe same terms as do members of the board sitting on the physicaltherapy section, and shall subscribe to and file with thesecretary of state the constitutional oath of office.

~~Five~~ Four members of the board shall be occupational therapists~~who~~ and one member shall be a licensed occupational therapy assistant, all of whom have been engaged in or actively associated with the practiceof occupational therapy or practice as an occupational therapy assistant in this state for at least five yearsimmediately preceding appointment. Such members of the boardshall sit on the occupational therapy section.

Four members of the board shall be athletic trainers whohave been engaged in the practice of athletic training in Ohiofor at least five years immediately preceding appointment. Onemember of the board shall be a physician licensed to practicemedicine and surgery in this state. Such members of the boardshall sit on the athletic trainers section.

One member of the board shall represent the public andshall be at least sixty years of age. This member shall sit onthe board.

Terms of office are for three years, each term commencingon the twenty-eighth day of August and ending on thetwenty-seventh day of August. Each member shall serve subsequentto the expiration of ~~his~~ the member's term until ~~his~~the member's successor is appointedand qualifies, or until a period of sixty days has elapsed,whichever occurs first. Each member, before entering upon ~~the~~officialduties ~~of his office~~, shall subscribe to and file with thesecretary of state the constitutional oath of office. Allvacancies shall be filled in the manner prescribed for theregular appointments to the board and are limited to theunexpired terms.

Annually, upon the qualification of the member or membersappointed in that year, the board shall organize by selectingfrom its members a president and secretary. Each section of theboard shall organize by selecting from its members a ~~chairman~~chairperson andsecretary.

The majority of the members of the board constitutes aquorum to transact and vote on the business of the board. Amajority of the members of each section constitutes a quorum totransact and vote on the affairs of that section.

Each member ofthe board and each additional member of the physical therapy section shallreceive an amount fixed pursuant to division (J)of section 124.15 of the Revised Code for each day employed inthe discharge of ~~his~~ official duties. In addition, each memberof theboard and each additional member of the physical therapy section shall receive~~his~~ the member's actual and necessary expenses incurred inthe performance of ~~his~~ official duties.

The board of trustees of the Ohio occupational therapyassociation, inc., may recommend, after any term expires orvacancy occurs in an occupational therapy position, at leastthree persons to fill each such position or vacancy on the board,and the governor may make ~~his~~ the appointment from the personssorecommended. The executive board of the Ohio chapter, inc., ofthe American physical therapy association may recommend, afterany term expires or vacancy occurs in a physical therapyposition, at least three persons to fill each such vacancy on theboard, and the governor may make ~~his~~ appointments from thepersons so recommended. The Ohio athletic trainers associationshall recommend to the governor at least three persons for eachof the initial appointments to an athletic trainer's position.The Ohio athletic trainers association shall also recommend tothe governor at least three persons when any term expires or anyvacancy occurs in such a position. The governor may select oneof the association's recommendations in making such anappointment.

The board shall meet as a whole to determine alladministrative, personnel, and budgetary matters. The executivedirector of the board appointed by the board shall not be aphysical therapist, an occupational therapist, or an athletictrainer who has been licensed to practice physical therapy,occupational therapy, or as an athletic trainer in this statewithin three years immediately preceding appointment. Theexecutive director shall serve at the pleasure of the board.

The occupational therapy section of the board shall havethe full authority to act on behalf of the board on all mattersconcerning the practice of occupational therapy and, inparticular, the examination, licensure, and suspension orrevocation of licensure of applicants, occupational therapists,and occupational therapy assistants. The physical therapysection of the board shall have the full authority to act onbehalf of the board on all matters concerning the practice ofphysical therapy and, in particular, the examination, licensure,and suspension or revocation of licensure of applicants, physicaltherapists, and physical therapist assistants. The athletictrainers section of the board shall have the full authority toact on behalf of the board on all matters concerning the practiceof athletic training and, in particular, the examination,licensure, and suspension or revocation of licensure ofapplicants and athletic trainers. All actions taken by anysection of the board under this paragraph shall be in accordancewith Chapter 119. of the Revised Code.

Sec. 4755.48. (A) No person shall employ fraud ordeceptionin applying for or securing a license to practicephysical therapyor to be a physical therapist assistant.

(B) No person shall practice or in any wayclaim to thepublic to be able to practice physical therapy, includingpracticeas a physical therapist assistant, unless the personholds avalidlicense under sections 4755.40 to 4755.56 of theRevisedCode orexcept as provided in section 4755.56 of the RevisedCode.

(C) No person shall use the words or letters, physicaltherapist, physical therapy, physiotherapist, licensed physicaltherapist, P.T., Ph.T., P.T.T., R.P.T., L.P.T., M.P.T., D.P.T., M.S.P.T., P.T.A., physical therapyassistant, physical therapist assistant, physical therapytechnician, licensed physical therapist assistant, L.P.T.A.,R.P.T.A., or any other letters, words, abbreviations, orinsignia,indicating or implying that the person is aphysical therapistorphysical therapist assistant without a valid license undersections 4755.40 to 4755.56 of the Revised Code.

(D) No person who practices physical therapy or assists inthe provision of physical therapy treatments under thesupervisionof a physical therapist shall fail to display theperson'scurrentlicense granted under sections 4755.40 to4755.56 of theRevisedCode in a conspicuous location in the place where thepersonspends the major part of the person's time so engaged.

(E) Nothing in sections 4755.40 to 4755.56 of theRevisedCode shall affect or interfere with the performance of the dutiesof any physical therapist or physical therapist assistant inactive service in the army, navy, coast guard, marine corps, airforce, public health service, or marine hospital service of theUnited States, while so serving.

(F)No person shall practice physical therapy other thanonthe prescription of, or the referral of a patient by, a personwhois licensed in this or another state to practice medicine andsurgery, chiropractic, dentistry, osteopathic medicine andsurgery, podiatric medicine and surgery, or to practice nursing as a certified registered nurse anesthetist, clinical nurse specialist, certified nurse-midwife, or certified nurse practitioner, within the scope of such practices, andwhose license is in good standing, unless either of the following conditions is met:

(1) The person holds a master's or doctorate degree from a professional physical therapy program that is accredited by a national accreditation agency recognized by the United States department of education and by the Ohio occupational therapy, physical therapy, and athletic trainers board.

(2) On or before December 31, ~~2003~~ 2004, the person has completed at least two years of practical experience as a licensed physical therapist.

(G) In the prosecution of any person for violation ofdivision (B) or (C) of this section, it is not necessary toallegeor prove want of a valid license to practice physicaltherapy orto practice as a physical therapist assistant, butsuch mattersshall be a matter of defense to be established bythe accused.

~~(A)~~(1) A person rendering services with an ambulance in theevent of a disaster situation when licensees' vehicles based inthe locality of the disaster situation are incapacitated orinsufficient in number to render the services needed;

~~(B)~~(2) Any person operating an ambulance, ambulette, rotorcraft airambulance, or fixed wing air ambulance outside this stateunlessreceiving a person within this state for transport to alocationwithin this state;

~~(C)~~(3) A publicly owned or operated emergency medical serviceorganization and the vehicles it owns or leases and operates,except as provided in section 307.051, division (G) of section307.055, division (F) of section 505.37, division (B) ofsection505.375, and division (B)(3)of section 505.72 of the RevisedCode;

~~(D)~~(4) An ambulance, ambulette, rotorcraft air ambulance, fixed wing airambulance, or nontransport vehicleowned or leased and operated bythe federal government;

~~(F)~~(6) Emergency vehicles owned by a corporation andoperatingonly on the corporation's premises, for the sole use bythatcorporation;

~~(G)~~(7) An ambulance, nontransport vehicle,or other emergencymedical service organizationvehicle owned and operated by amunicipal corporation;

~~(H)~~(8) A motor vehicle titled in the name of avolunteer rescueservice organization, as defined in section 4503.172 of theRevisedCode;

~~(J)~~(10) A fire department,rescue squad, or life squad comprisedofvolunteers who provideservices without expectation ofremuneration and do not receivepayment for services other thanreimbursement for expenses;

~~(K)~~(11) A private,nonprofit emergency medical serviceorganization when fifty percent or more of its personnel arevolunteers, as defined in section 4765.01 of the Revised Code;

~~(L)~~(12) Emergency medical service personnel who are regulated by the state board of emergency medical services under Chapter 4765. of the Revised Code;

(B) Except for the requirements specified in section 4766.14 of the Revised Code, this chapter does not apply to an ambulette service provider operating under standards adopted by rule by the department of aging, but only during the period of time on any day that the provider is solely serving the department or the department's designee. This chapter applies to an ambulette service provider at any time that the ambulette service provider is not solely serving the department or the department's designee.

Sec. 4766.14. (A) An ambulette service provider described in division (B) of section 4766.09 of the Revised Code shall do all of the following:

(1) Make available to all its ambulette drivers while operating ambulette vehicles a means of two-way communication using either ambulette vehicle radios or cellular telephones;

(2) Equip every ambulette vehicle with one isolation and biohazard disposal kit that is permanently installed or secured in the vehicle's cabin;

(3) Before hiring an applicant for employment as an ambulette driver, obtain all of the following:

(a) A valid copy of a signed statement from a licensed physician acting within the scope of the physician's practice declaring that the applicant does not have a medical condition or physical condition, including vision impairment that cannot be corrected, that could interfere with safe driving, passenger assistance, and emergency treatment activity or could jeopardize the health and welfare of a client or the general public;

(b) All of the certificates and results required under divisions (A)(2), (3), and (4) of section 4766.15 of the Revised Code.

(B) No ambulette service provider described in division (B) of section 4766.09 of the Revised Code shall employ an applicant as an ambulette driver if the applicant has six or more points on the applicant's driving record pursuant to section 4510.036 of the Revised Code.

Sec. 4905.10. (A) For the sole purpose of maintaining andadministering the public utilities commission and exercising itssupervision and jurisdiction over the railroads and publicutilities ofthis state, an amount equivalent to theappropriationfrom the public utilities fund created underdivision (B) of thissection to the public utilities commissionforrailroad and public utilities regulation in eachfiscal yearshall be apportioned amongand assessed against each railroad andpublicutility withinthis state by the commission by firstcomputing an assessment asthough it were to be made in proportionto the intrastate grossearnings or receipts, excluding earningsor receipts from salesto other public utilities for resale, ofthe railroador publicutility for the calendar year nextpreceding that inwhich theassessment is made. The commissionmayinclude in that first computation any amount ofa railroad'sor public utility's intrastate gross earnings or receiptsthatwere underreported in a prior year. In addition to whateverpenalties apply under the Revised Code to suchunderreporting, thecommission shall assess the railroad or public utility interest attherate stated in division (A) of section 1343.01 of theRevisedCode. Thecommission shall deposit any interest so collected intothe publicutilities fund. The commission may exclude from that first computation any such amounts that were overreported in a prior year.

Thefinal computation ofthe assessmentshall consist ofimposing upon each railroad and public utilitywhose assessmentunder the first computation would have been~~fifty~~ one hundred dollars or lessan assessment of ~~fifty~~ one hundred dollars andrecomputing the assessments ofthe remainingrailroads and publicutilities by apportioning anamount equal to the appropriation tothe public utilitiescommission for administration of theutilities division in eachfiscal year less the total amount tobe recovered from thosepaying the minimum assessment, inproportion to the intrastategross earnings or receipts of theremaining railroads and publicutilities for the calendar yearnext preceding that in which theassessments are made.

In the case of an assessment based on intrastate grossreceiptsunder this section against a public utility that is anelectricutility as defined in section 4928.01 of the RevisedCode, or an electricservices company,electric cooperative, orgovernmental aggregator subject to certification under section4928.08 of the Revised Code, such receipts shall be thosespecified in the utility's, company's, cooperative's, oraggregator's mostrecent report of intrastate gross receipts andsales of kilowatt hours ofelectricity, filed with the commissionpursuant to division (F) ofsection 4928.06 of the Revised Code,and verified by thecommission.

In the case of an assessment based on intrastate grossreceipts under this section against a retail natural gas supplieror governmental aggregator subject to certification under section4929.20 of the Revised Code, such receipts shall be thosespecified in the supplier's or aggregator's most recent report ofintrastate gross receipts and sales of hundred cubic feet ofnatural gas, filed with the commission pursuant to division (B) ofsection 4929.23 of the Revised Code, and verified by thecommission. However, no such retail natural gas supplier or suchgovernmental aggregator serving or proposing to serve customers ofa particular natural gas company, as defined in section 4929.01 ofthe Revised Code, shall be assessed under this section untilafterthe commission, pursuant to section4905.26 or 4909.18 oftheRevised Code, has removed from the baserates of the naturalgascompany the amount of assessment underthissection that isattributable to the value of commodity sales service, as definedin section 4929.01 of the Revised Code, inthebase rates paid bythose customers of the company that do not purchasethat servicefrom the natural gas company.

(B) On Through calendar year 2005, on or before the first day of October in each year,thecommission shall notify each such railroad and public utilityofthe sum assessed against it, whereupon payment shall be madetothe commission, which shall deposit it into the state treasurytothe credit of the public utilitiesfund, which is hereby created. Beginning in calendar year 2006, on or before the fifteenth day of May in each year, the commission shall notify each railroad and public utility that had a sum assessed against it for the current fiscal year of more than one thousand dollars that fifty per cent of that amount shall be paid to the commission by the twentieth day of June of that year as an initial payment of the assessment against the company for the next fiscal year. On or before the first day of October in each year, the commission shall make a final determination of the sum of the assessment against each railroad and public utility and shall notify each railroad and public utility of the sum assessed against it. The commission shall deduct from the assessment for each railroad or public utility any initial payment received. Payment of the assessment shall be made to the commission by the first day of November of that year. The commission shall deposit the payments received into the state treasury to the credit of the public utilities fund.Any such amounts paidinto the fund but not expended by thecommission shall be credited ratably, after first deducting anydeficits accumulated from prior years, by the commission torailroads and public utilities that pay more than the minimumassessment, according to the respective portions of such sumassessable against them for the ensuing ~~calendar~~ fiscal year. Theassessments for such ~~calendar~~ fiscal year shall be reducedcorrespondingly.

(C) Within five days after the beginning of each fiscalyear through fiscal year 2006,the director of budget and management shall transfer fromthegeneral revenue fund to the public utilities fund an amountsufficient for maintaining and administering the publicutilitiescommission and exercising its supervision andjurisdiction overthe railroads and public utilities of thestate during the firstfour months of the fiscal year. The director shalltransfer thesame amount back to the general revenuefund from the publicutilities fund at such time as thedirector determines that thebalance of the public utilitiesfund is sufficient to support theappropriations from the fundfor the fiscal year. The directormay transfer less than thatamount if the director determines thatthe revenues of thepublic utilities fund during the fiscal yearwill beinsufficient to support the appropriations from the fundfor thefiscal year, in which case the amount not paid back to thegeneral revenue fund shall be payable to the general revenuefundin future fiscal years.

(1) In addition to anelectric utility as defined in section4928.01 of the Revised Code, an electric servicescompany, anelectric cooperative, or agovernmental aggregator subject tocertification under section 4928.08of theRevised Code, to theextent of the company's, cooperative's,or aggregator'sengagementin the business of supplying or arrangingfor the supply in thisstate of any retail electric service for which it mustbe socertified;

(2) In addition to a natural gas company as defined insection 4929.01 of the Revised Code, a retail natural gas supplieror governmental aggregator subject to certification under section4929.20 of the Revised Code, to the extent of the supplier's oraggregator's engagement in the business of supplying or arrangingfor the supply in this state of any competitive retail natural gasservice for which it must be certified.

(E) Each public utilities commissioner shall receive asalary fixed at the level set by pay range 49 under schedule E-2of section 124.152 of the Revised Code.

Sec. 4905.261. The public utilities commission shall operate a telephone call center for consumer complaints, to receive complaints by any person, firm, or corporation against any public utility. The commission shall expeditiously provide the consumers' counsel with all information concerning residential consumer complaints received by the commission in the operation of the telephone call center and with any materials produced in the operation of the telephone call center by the commission concerning residential consumer complaints. If technology is reasonably available, the commission shall provide the consumers' counsel with real-time access to the commission's residential consumer complaint information.

Sec. 4905.54. Every public utility or railroad and every officer of a publicutility or railroad shall comply with every order, direction, and requirementof the public utilities commission made under authority of this chapter andChapters 4901., 4903., 4907., 4909., 4921., and 4923. of the Revised Code, solong as they remain in force. Except as otherwise specifically provided insections 4905.83, 4905.95, 4919.99,4921.99, and 4923.99 of the Revised Code, the public utilities commission may assess a forfeiture of not more than ten thousand dollars for each violation or failure against apublicutility or railroad that violates a provision of thosechapters or that after due notice fails to comply with anorder, direction, or requirement of the commission that wasofficially promulgated ~~shall forfeit to the state not more than onethousand dollars for each such violation or failure~~. Each day's continuanceofthe violation or failure is a separate offense. All forfeitures collected under this section shall be credited to the general revenue fund.

Sec. 4905.95. (A) Except as otherwise provided indivision (C) of this section:

(1) The public utilities commission, regarding anyproceeding under this section, shall provide reasonable noticeand the opportunity for a hearing in accordance with rulesadopted under section 4901.13 of the Revised Code.

(2) Sections 4903.02 to 4903.082, 4903.09 to 4903.16, and4903.20 to 4903.23 of the Revised Code apply to all proceedingsand orders of the commission under this section and to alloperators subject to those proceedings and orders.

(B) If, pursuant to a proceeding it specially initiates orto any other proceeding and after the hearing provided for underdivision (A) of this section, the commission finds that:

(1) An operator has violated or failed to comply with, oris violating or failing to comply with, sections 4905.90 to4905.96 of the Revised Code or the pipe-line safety code, thecommission by order:

(a) Shall require the operator to comply and to undertakecorrective action necessary to protect the public safety;

(b) May assess upon the operator forfeitures of not morethan ~~ten~~ one hundred thousand dollars for each day of each violation ornoncompliance, except that the aggregate of such forfeituresshall not exceed five hundred thousand dollars for any relatedseries of violations or noncompliances. In determining theamount of any such forfeiture, the commission shall consider allof the following:

(iii) The operator's good faith efforts to comply andundertake corrective action;

(v) The effect of the forfeiture on the operator's abilityto continue as an operator;

All forfeitures collected under this division or section 4905.96of the Revised Code shall be deposited in the state treasury tothe credit of the general revenue fund.

(2) An intrastate pipe-line transportation facility ishazardous to life or property, the commission by order:

(a) Shall require the operator of the facility to takecorrective action to remove the hazard. Such corrective actionmay include suspended or restricted use of the facility, physicalinspection, testing, repair, replacement, or other action.

(b) May direct the attorney general to seek the remediesprovided in section 4905.96 of the Revised Code.

(C) If, pursuant to a proceeding it specially initiates orto any other proceeding, the commission finds that an emergencyexists due to a condition on an intrastate pipe-linetransportation facility posing a clear and immediate danger tolife or health or threatening a significant loss of property andrequiring immediate corrective action to protect the publicsafety, the commission may issue, without notice or priorhearing, an order reciting its finding and may direct theattorney general to seek the remedies provided in section 4905.96of the Revised Code. The order shall remain in effect for notmore than forty days after the date of its issuance. The ordershall provide for a hearing as soon as possible, but not laterthan thirty days after the date of its issuance. After thehearing the commission shall continue, revoke, or modify theorder and may make findings under and seek appropriate remediesas provided in division (B) of this section.

Sec. 4911.021. The consumers' counsel shall not operate a telephone call center for consumer complaints. Any calls received by the consumers' counsel concerning consumer complaints shall be forwarded to the public utilities commission's call center.

Sec. 4911.18. (A) For the sole purpose of maintaining andadministering the office of the consumers' counsel and exercisingthe powers of the consumers' counsel under this chapter, anamountequal to the appropriation to the office of the consumers'counselin each fiscal year shall be apportioned among andassessedagainst each public utilitywithinthis state, asdefined insection 4911.01 of the Revised Code, by firstcomputing anassessment as though it were to be made inproportion to theintrastate gross earnings or receipts of thepublic utility forthe calendar year nextpreceding that in which the assessment ismade, excludingearnings orreceipts from sales to other publicutilities for resale. The officemay include in that firstcomputation any amount of apublic utility's intrastate grossearnings or receiptsunderreported in a prior year. In additionto whatever penalties applyunder the Revised Code to suchunderreporting, the officeshall assess the public utilityinterest at the rate statedindivision (A) of section 1343.01 ofthe RevisedCode. The office shalldeposit any interest socollected into the consumers' counsel operatingfund. The office may exclude from that first computation any such amounts that were over-reported in a prior year.

The final computation of the assessment shall consist ofimposing upon each public utility whose assessment underthe firstcomputation would have been ~~fifty~~ one hundred dollars or less an assessmentof~~fifty~~ one hundred dollars and recomputing the assessment of the remainingcompanies by apportioning an amount equal to the appropriation tothe office of consumers' counsel in each fiscal year less thetotal amount to be recovered from those paying the minimumassessment, in proportion to the intrastate gross earnings orreceipts of the remaining companies for the calendar year nextpreceding that in which the assessments are made, excludingearnings or receipts from sales to other public utilities forresale.

In the case of an assessment based on intrastate grossreceiptsunder this section against a public utility that is anelectric utility asdefined in section 4928.01 of the RevisedCode,or an electric services company, electric cooperative, orgovernmentalaggregator subject to certification under section4928.08 of theRevisedCode, such receipts shall be thosespecified in the utility's,company's, cooperative's, oraggregator's most recent report of intrastategross receipts andsalesof kilowatt hours of electricity, filed with the publicutilitiescommission pursuant to division (F) of section 4928.06of theRevised Code, and verified by the commission.

(B) On Through calendar year 2005, on or before the first day of October in each year, theoffice of consumers' counsel shall notify each public utilityofthe sumassessed against it, whereupon payment shall be made tothecounsel, who shall deposit it into the state treasury to thecredit of theconsumers' counsel operating fund, which is herebycreated. Beginning in calendar year 2006, on or before the fifteenth day of May in each year, the consumers' counsel shall notify each public utility that had a sum assessed against it for the current fiscal year of more than one thousand dollars that fifty per cent of that amount shall be paid to the consumers' counsel by the twentieth day of June of that year as an initial payment of the assessment against the company for the next fiscal year. On or before the first day of October in each year, the consumers' counsel shall make a final determination of the sum of the assessment against each public utility and shall notify each public utility of the sum assessed against it. The consumers' counsel shall deduct from the assessment for each public utility any initial payment received. Payment of the assessment shall be made to the consumers' counsel by the first day of November of that year. The consumers' counsel shall deposit the payments received into the state treasury to the credit of the consumers' counsel operating fund. Any such amounts paid intothe fund but not expended bytheoffice shall be credited ratably by the office to the publicutilities that pay more than the minimumassessment, accordingtothe respective portions of such sum assessable against themforthe ensuing ~~calendar~~ fiscal year, after first deducting any deficitsaccumulated from prior years. The assessments for such ~~calendar~~fiscal year shall be reduced correspondingly.

(C) Within five days after the beginning of each fiscalyear through fiscal year 2006,the director of budget and management shall transfer fromthegeneral revenue fund to the consumers' counsel operating fundanamount sufficient for maintaining and administering the officeof the consumers' counsel and exercising the powers of theconsumers' counsel under this chapter during the first fourmonthsof the fiscal year. Not later than the thirty-first dayofDecember of the fiscal year,the same amount shall be transferredback to the general revenuefund from the consumers' counseloperating fund.

(1) Inaddition to an electric utility as defined in section4928.01 of the RevisedCode, an electric servicescompany, anelectric cooperative, or a governmental aggregator subject tocertification under section 4928.08 of the Revised Code, totheextent of the company's, cooperative's, or aggregator's engagementin thebusiness of supplying or arranging for the supply in thisstate of any retailelectric service for which it must be socertified;

Sec. 4973.171. (A) As used in this section,"felony"hasthe same meaning as in section 109.511 of the Revised Code.

(B)(1) The ~~governor~~ secretary of state shall not appoint orcommission a personas a police officer for a railroad companyunder division (B) ofsection 4973.17 of theRevised Code and shall not appoint orcommissiona person as a police officer for a hospital underdivision(D) of section 4973.17 of the RevisedCode on a permanentbasis, on a temporary basis, for aprobationary term, or on otherthan a permanent basis if theperson previously has been convictedof or has pleaded guilty toa felony.

(2)(a) The ~~governor~~ secretary of state shall revoke theappointment orcommission of a person appointed or commissionedas a policeofficer for a railroad company or as a police officerfor ahospital under division (B) or (D) ofsection 4973.17 of theRevised Code if thatperson does either of the following:

(ii) Pleads guilty to a misdemeanor pursuant to anegotiatedplea agreement as provided in division (D) ofsection2929.43 of the Revised Code in which theperson agrees tosurrender the certificate awarded to thatperson under section109.77 of the Revised Code.

(b) The ~~governor~~ secretary of state shall suspend the appointmentor commissionof a person appointed or commissioned as a policeofficer for arailroad company or as a police officer for ahospital underdivision (B) or (D) of section4973.17 of the Revised Code if thatperson isconvicted, after trial, of a felony. If the personfiles an appeal from that conviction and the conviction is upheldby thehighest court to which theappeal is taken or if the persondoes not file a timely appeal,the ~~governor~~ secretary of state shall revoke theappointment or commission of thatperson as a police officer for arailroad company or as a policeofficer for a hospital. If theperson files an appeal thatresults in that person's acquittal ofthe felony orconviction of a misdemeanor, or inthe dismissal ofthe felony charge against that person, the~~governor~~ secretary of state shallreinstate the appointment or commission of thatperson as a policeofficer for a railroad company or as a policeofficer for ahospital. A person whose appointment or commissionis reinstatedunder division (B)(2)(b) ofthis section shall not receive anyback pay unless that person's convictionof the felony wasreversed on appeal, or thefelony charge was dismissed, becausethe courtfound insufficient evidence to convict the person of thefelony.

(3) Division (B) of this section does not applyregarding anoffense that was committed prior toJanuary 1, 1997.

(4) The suspension or revocation of the appointment orcommission of aperson as a police officer for a railroad companyor as a police officer for ahospital under division (B)(2) ofthis section shall be in accordancewith Chapter 119. of theRevised Code.

(C)(1) A judge of a municipal court or county court that has territorial jurisdiction over an amusement park shall not appoint or commission a person as a police officer for the amusement park under division (E) of section 4973.17 of the Revised Code on a permanent basis, on a temporary basis, for a probationary term, or on other than a permanent basis if the person previously has been convicted of or has pleaded guilty to a felony.

(2) The judge shall revoke the appointment or commission of a person appointed or commissioned as a police officer for an amusement park under division (E) of section 4973.17 of the Revised Code if that person does either of the following:

(b) Pleads guilty to a misdemeanor pursuant to a negotiated plea agreement as provided in division (D) of section 2929.43 of the Revised Code in which the person agrees to surrender the certificate awarded to that person under section 109.77 of the Revised Code.

(3) The judge shall suspend the appointment or commission of a person appointed or commissioned as a police officer for an amusement park under division (E) of section 4973.17 of the Revised Code if that person is convicted, after trial, of a felony. If the person files an appeal from that conviction and that conviction is upheld by the highest court to which the appeal is taken or if the person does not file a timely appeal, the judge shall revoke the appointment or commission of that person as a police officer for an amusement park. If the person files an appeal that results in that person's acquittal of the felony or conviction of a misdemeanor or in the dismissal of the felony charge against that person, the judge shall reinstate the appointment or commission of that person as a police officer for an amusement park. A person whose appointment or commission is reinstated under division (C)(3) of this section shall not receive any back pay unless that person's conviction of the felony was reversed on appeal, or the felony charge was dismissed, because the court found insufficient evidence to convict the person of a felony.

(4) Division (C) of this section does not apply regarding an offense that was committed prior to January 1, 1997.

(5) The suspension or revocation of the appointment or commission of a person as a police officer for an amusement park under division (C)(2) of this section shall be in accordance with Chapter 119. of the Revised Code.

Sec. 5101.07. There is hereby created in the state treasury the support services federal operating fund. The fund shall consist of federal funds the department of job and family services receives and that the director of job and family services determines are appropriate for deposit into the fund. Money in the fund shall be used to pay the federal share of both of the following:

(B) The operating costs of the parts of the department that provide general support services for the department's work units established under section 5101.06 of the Revised Code.

Sec. 5101.071. There is hereby created in the state treasury the support services state operating fund. The fund shall consist of payments made to the fund from other appropriation items by intrastate transfer voucher. Money in the fund shall be used to pay for both of the following:

(B) The operating costs of the parts of the department that provide general support services for the department's work units established under section 5101.06 of the Revised Code.

Sec. 5101.16. (A) As used in this section and sections5101.161 and 5101.162 of the Revised Code:

(1)"Disability financial assistance" means the financial assistance program established under Chapter 5115. of the Revised Code.

(2)"Disability medical assistance" means the medical assistance program established under Chapter 5115. of the Revised Code.

(3) "Food stamps" means the program administered by thedepartmentof job and family services pursuant to section 5101.54ofthe Revised Code.

(4)"Medicaid" means the medical assistance programestablishedbyChapter 5111. of the Revised Code, excludingtransportation services providedunder that chapter.

(5)"Ohio works first" means the program established byChapter 5107. of the Revised Code.

(6)"Prevention, retention, and contingency" means theprogramestablishedby Chapter 5108. of the Revised Code.

(8) "Title IV-A program" has the same meaning as in section 5101.80 of the Revised Code.

(B) Each board of county commissioners shall pay the countyshare of publicassistance expendituresinaccordance with section5101.161of the Revised Code. Except as provided in division (C)of thissection,a county's share of public assistanceexpenditures is the sum ofall of thefollowing for state fiscalyear1998 and each state fiscal year thereafter:

(1) The amount that is twenty-five per cent of the county'stotalexpendituresfor disability financial assistance and disability medical assistance and countyadministration of those programs during the state fiscalyearending inthe previous calendar year that the department ofjob andfamily services determinesare allowable.

(2) Theamount that is ten per cent, orother percentagedetermined under division (D) of thissection, of the county'stotal expenditures for countyadministration of food stamps andmedicaid during the state fiscal year ending inthepreviouscalendar year that the departmentdetermines are allowable, lessthe amount of federal reimbursement credited tothe county underdivision (E) of this section for thestate fiscal year ending inthe previous calendar year;

(3) A percentage of the actual amount of thecounty share of program andadministrative expenditures duringfederal fiscal year 1994 forassistance and services, other thanchild care, providedunder Titles IV-A and IV-F ofthe"SocialSecurity Act," 49 Stat.620 (1935), 42 U.S.C. 301, as those titlesexisted prior to the enactment of the"PersonalResponsibility andWork OpportunityReconciliation Act of 1996," 110 Stat.2105.The department of job and family services shall determine the actual amount of the county share from expenditure reports submitted to the United States department of health and human services. The percentage shall be the percentage established in rules adopted under division (F) of this section.

(C)(1) If a county's share of public assistanceexpendituresdetermined under division (B) ofthis section for a state fiscalyear exceeds one hundred tenper cent of the county's share forthose expenditures for theimmediately preceding state fiscalyear, the department of joband family services shall reduce thecounty's share for expenditures underdivisions(B)(1) and (2) ofthis section so that the total of the county'sshare forexpenditures under division (B) of this section equals onehundredten per cent of the county's share of thoseexpenditures for theimmediately preceding state fiscal year.

(2) A county's share of public assistance expendituresdetermined under division (B) of this section may be increasedpursuant to section 5101.163 of the Revised Code and a sanction under section 5101.24 of the RevisedCode. An increase made pursuant to section 5101.163 of the Revised Code may cause the county's share to exceed the limit established by division (C)(1) of this section.

(D)(1) If the per capita tax duplicate ofa county is lessthan the per capita tax duplicate of the state as a whole anddivision (D)(2) of this section does not apply to thecounty, thepercentage to be usedfor the purpose of division (B)(2) of thissection is theproduct of ten multiplied by a fraction ofwhichthe numerator is the per capita tax duplicate of the countyandthe denominator is the per capita tax duplicate of the stateas awhole. The department of job and family servicesshallcomputethe per capita tax duplicate for the state and for eachcounty bydividing the tax duplicate for the most recentavailable year bythe current estimate of population prepared bythe department ofdevelopment.

(2) If the percentage of families in a county with anannualincome of less than three thousand dollars is greater thanthepercentage of such families in the state and division(D)(1) ofthis section does not apply to the county,the percentage to beused for thepurpose of division (B)(2) of this section is theproductof ten multiplied by a fraction of which thenumerator isthe percentage of families in the state with anannual income ofless than three thousand dollars a year and thedenominator is thepercentage of such families in the county. The departmentof joband family services shall compute the percentageof families withan annual income of less than three thousanddollars for the stateand for eachcounty bymultiplying the most recent estimate ofsuch families publishedby the department of development, by afraction, the numerator ofwhich is the estimate of average annualpersonal income publishedby the bureau of economic analysis ofthe United Statesdepartment of commerce for the year on which thecensus estimateis based and the denominator of which is the mostrecent suchestimate published by the bureau.

(3) If the per capita tax duplicate ofa county is less thanthe per capita tax duplicate of the state as awhole and thepercentage of families in the county with an annual income oflessthan three thousand dollars is greater than the percentage of suchfamilies in the state,the percentage to be used for the purposeof division(B)(2) of this section shall be determined asfollows:

(b) Multiply the product determined underdivision(D)(3)(a)of this sectionby the fraction determined under division(D)(2)of this section.

(4) The department of job and family services shalldetermine, foreach county,the percentage to be used for thepurpose of division(B)(2) of this section not later than thefirstday of July of the year preceding the state fiscalyear forwhich the percentage is used.

(E) The department of job and family services shallcredittoa county the amount of federal reimbursement the departmentreceives from theUnited States departments of agriculture andhealth and humanservices for the county's expenditures foradministration of food stampsand medicaid that thedepartmentdetermines are allowable administrativeexpenditures.

(F)(1) The director of job andfamily servicesshall adoptrules in accordancewith section 111.15 of theRevised Codetoestablish all of the following:

(a) The method the department is to use tochangeacounty'sshare of public assistance expendituresdetermined under division(B) of this sectionas provided in division (C) of thissection;

(b) The allocation methodology and formula the departmentwilluse to determine the amount of funds to credit to a countyunderthis section;

(c) The method the department will use to change the paymentof the county share of public assistance expenditures from acalendar-year basis to a state fiscal year basis;

(d) The percentage to be used for the purpose of division (B)(3) of this section, which shall, except as provided in section 5101.163 of the Revised Code, meet both of the following requirements:

(i) The percentage shall not be less than seventy-five per cent nor more than eighty-two per cent;

(ii) The percentage shall not exceed the percentage that the state's qualified state expenditures is of the state's historic state expenditures as those terms are defined in 42 U.S.C. 609(a)(7).

(2) The director of job and family services may amend the rule adopted under division (F)(1)(d) of this section to modify the percentage on determination that the amount the general assembly appropriates for Title IV-A programs makes the modification necessary. The rule shall be adopted and amended as if an internal management rule and in consultation with the director of budget and management.

Sec. 5101.163. As used in this section, "maintenance of effort" means qualified state expenditures as defined in 42 U.S.C. 609(a)(7)(B)(i).

The department of job and family services may increase a county's share of public assistance expenditures determined under division (B) of section 5101.16 of the Revised Code if the United States secretary of health and human services requires an increase in the state's maintenance of effort because of one or more failures, resulting from the actions or inactions of one or more county family services agencies, to meet a requirement under Title IV-A of the "Social Security Act," 110 Stat. 2113 (1996), 42 U.S.C. 601, as amended. The department may so increase a county's share of public assistance expenditures only to the amount the county's county family services agencies are responsible for the increase in the state's maintenance of effort as determined pursuant to rules the director of job and family services shall adopt under section 111.15 of the Revised Code. The department is not required to make the increase in accordance with section 5101.24 of the Revised Code.

Sec. 5101.181. (A) As used in this section and section 5101.182 of theRevised Code, "public assistance" includes, in addition to Ohioworks first, all of the following:

(4) Disability medical assistance provided before October 1, 2005, under former Chapter 5115. of the Revised Code;

(5) General assistance providedprior to July17, 1995, under former Chapter 5113. ofthe Revised Code.

(B) As part of the procedure for thedetermination of overpayment to a recipient of public assistanceunder Chapter 5107., 5108., 5111., or 5115. of the Revised Code,the director of job and family services shall furnish quarterly the nameand social security number of each individual who receives publicassistance to the director of administrative services, theadministrator of the bureau of workers' compensation, and each ofthe state's retirement boards. Within fourteen days afterreceiving the name and social security number of an individualwho receives public assistance, the director of administrativeservices, administrator, or board shall inform the auditor ofstate as to whether such individual is receiving wages orbenefits, the amount of any wages or benefits being received, thesocial security number, and the address of the individual. Thedirector of administrative services, administrator, boards, andany agent or employee of those officials and boards shall complywith the rules of the director of joband family services restricting the disclosure of information regardingrecipients of publicassistance. Any person who violates this provision shallthereafter be disqualified from acting as an agent or employee orin any other capacity under appointment or employment of anystate board, commission, or agency.

(C) The auditor of state may enter into a reciprocalagreement with the director of job and family services orcomparableofficer of any other state for the exchange of names, current ormost recent addresses, or social security numbers of personsreceiving public assistance under TitleIV-A or underTitle XIX of the "Social Security Act," 49 Stat. 620 (1935), 42U.S.C. 301, as amended.

(D)(1) The auditor of state shall retain, for not less than two years, atleast one copy of all informationreceived under this section and sections 145.27, 742.41,3307.20, 3309.22, 4123.27, 5101.182, and 5505.04 ofthe RevisedCode. The auditor shall review the information to determine whetheroverpayments were made to recipients ofpublic assistance under Chapters 5107., 5108., 5111., and 5115.of the Revised Code. The auditor of stateshall initiate action leading to prosecution, where warranted, ofrecipients who received overpayments by forwarding the name ofeach recipient who received overpayment, together with otherpertinent information, to the director of job and familyservices and theattorney general, to the district director of job andfamily services ofthe district through which public assistance was received, and tothe county director of job and family services and countyprosecutor ofthe county through which public assistance was received.

(2) The auditor of state and the attorney general or theirdesignees may examine any records, whether in computer or printedformat, in the possession of the director of job andfamily services orany county director of job and family services. Theyshall providesafeguards which restrict access to such records to purposesdirectly connected with an audit or investigation, prosecution,or criminal or civil proceeding conducted in connection with theadministration of the programs and shall comply with the rules ofthe director of job and familyservices restricting the disclosure ofinformation regarding recipients of public assistance. Anyperson who violates this provision shall thereafter bedisqualified from acting as an agent or employee or in any othercapacity under appointment or employment of any state board,commission, or agency.

(3) Costs incurred by the auditor of state in carrying outthe auditor of state's duties under this division shall beborne bythe auditor of state.

Sec. 5101.184. (A) The director of job and family servicesshallwork with the tax commissioner to collect overpayments ofassistance under Chapter 5107., 5111., or 5115., former Chapter5113., orsection 5101.54 of the Revised Codefrom refunds ofstate income taxes for taxable year 1992 andthereafter that arepayable to the recipients of suchoverpayments.

Any overpayment of assistance, whether obtained by fraud ormisrepresentation, as the result of an error by the recipient orby the agency making the payment, or in any other manner, may becollected under this section. Any reduction under section5747.12or 5747.121 of the Revised Code to an income tax refundshall bemade before a reduction under this section. Noreduction shall bemade under this section if the amount of therefund is less thantwenty-five dollars after any reduction undersection 5747.12 ofthe Revised Code. A reduction under thissection shall be madebefore any part of the refund iscontributed under section5747.113 of the Revised Code ~~to thenatural areas and preservesfund or the nongame and endangeredwildlife fund~~, or is creditedunder section 5747.12 of theRevised Code against tax due in anysubsequent year.

The director and the tax commissioner, by rules adopted inaccordance with Chapter 119. of the Revised Code, shall establishprocedures to implement this division. The procedures shallprovide for notice to a recipient of assistance and anopportunityfor the recipient to be heard beforethe recipient's income taxrefund isreduced.

(B) The director of job and family services may enterintoagreements with the federal government to collect overpayments ofassistance from refunds of federal income taxes that are payableto recipients of the overpayments.

Sec. 5101.21. (A) As used in this section, "county signer" means all of the following:

(2) A county children services board appointed under section 5153.03 of the Revised Code if required by division (B) of this section to enter into a fiscal agreement;

(3) A county elected official that is a child support enforcement agency if required by division (B) of this section to enter into a fiscal agreement.

(B) The director of job and family services may enterinto one or more written fiscal agreements with boards of county commissioners under which financial assistance is awarded for family services duties included in the agreements. Boards of county commissioners shall select which family services duties to include in a fiscal agreement. If a board of county commissioners elects to include family services duties of a public children services agency and a county children services board appointed under section 5153.03 of the Revised Code serves as the county's public children services agency, the board of county commissioners and county children services board shall jointly enter into the fiscal agreement with the director. If a board of county commissioners elects to include family services duties of a child support enforcement agency and the entity designated under former section 2301.35 of the Revised Code prior to October 1, 1997, or designated under section 307.981 of the Revised Code as the county's child support enforcement agency is an elected official of the county, the board of county commissioners and county elected official shall jointly enter into the fiscal agreement with the director. A fiscal agreement shall do all of the following:

(1) Specify the family services duties included in the agreement and the private and government entities designated under section 307.981 of the Revised Code to serve as the county family services agencies performing the family services duties;

(2) Provide for the department of job and family services to award financial assistance for the family services duties included in the agreement in accordance with a methodology for determining the amount of the award established by rules adopted under division (D) of this section;

(3) Specify the form of the award of financial assistance which may be an allocation, cash draw, reimbursement, property, or, to the extent authorized by an appropriation made by the general assembly and to the extent practicable and not in conflict with a federal or state law, a consolidated funding allocation for two or more family services duties included in the agreement;

(4) Provide that the award of financial assistance is subject to the availability of federal funds and appropriations made by the general assembly;

(5) Specify annual financial, administrative, or other incentiveawards, if any, to be provided in accordance with section5101.23 of the RevisedCode;

(6) Include the assurance of each county signer that the county signer will do all of the following:

(a) Ensure that the financial assistance awarded under the agreement is used, and the family services duties included in the agreement are performed, in accordance with requirements for the duties established by the department, a federal or state law, or any of the following that concern the family services duties included in the fiscal agreement and are published under section 5101.212 of the Revised Code: state plans for receipt of federal financial participation, grant agreements between the department and a federal agency, and executive orders issued by the governor;

(b) Ensure that the board and county family services agencies utilize a financial management system and other accountability mechanisms for the financial assistance awarded under the agreement that meet requirements the department establishes;

(i) Monitor all private and government entities that receive a payment from financial assistance awarded under the agreement to ensure that each entity uses the payment in accordance with requirements for the family services duties included in the agreement;

(ii) Take action to recover payments that are not used in accordance with the requirements for the family services duties included in the agreement.

(d) Require county family services agencies to promptly reimburse the department the amount that represents the amount an agency is responsible for, pursuant to action the department takes under division (C) of section 5101.24 of the Revised Code, of funds the department pays to any entity because of an adverse audit finding, adverse quality control finding, final disallowance of federal financial participation, or other sanction or penalty;

(e) Require county family services agencies to take prompt corrective action, including paying amounts resulting from an adverse finding, sanction, or penalty, if the department, auditor of state, federal agency, or other entity authorized by federal or state law to determine compliance with requirements for a family services duty included in the agreement determines compliance has not been achieved;

(f) If the department establishes a consolidated funding allocation for two or more family services duties included in the agreement, require the county family services agencies to use funds available in the consolidated funding allocation only for the purpose for which the funds are appropriated.

(7) Provide for the department taking action pursuant to division(C) of section 5101.24 of the Revised Code if authorized by division(B)(1), (2), (3), or (4) ofthatsection;

(8) Provide for timely audits required by federal and state law and require prompt release of auditfindings and prompt action to correct problems identified in anaudit;

(9) Comply with all of the requirements for the family services duties that are included in the agreement and have been established by the department, federal or state law, or any of the following that concern the family services duties included in the fiscal agreement and are published under section 5101.212 of the Revised Code: state plans for receipt of federal financial participation, grant agreements between the department and a federal agency, and executive orders issued by the governor;

(10) Provide for dispute resolution procedures in accordance with section 5101.24 of the Revised Code;

(11) Establish the method of amending or terminating the agreementand an expedited process for correcting terms or conditions ofthe agreement that the director and each county signer agreeareerroneous;

(12) Except as provided in rules adopted under division (D) of this section, begin on the first day of July of an odd-numbered year and end on the last day of June of the next odd-numbered year.

(C) The departmentshall make payments authorized by a fiscal agreement on vouchers itprepares and mayinclude any funds appropriated or allocated to it for carryingout family services duties included in the agreement, including funds for personalservices and maintenance.

(D)(1) The director shall adopt rules in accordance with section 111.15 of the Revised Code governing fiscal agreements. The director shall adopt the rules as if they were internal management rules. Before adopting the rules, the director shall give the public an opportunity to review and comment on the proposed rules. The rules shall establish methodologies to be used to determine the amount of financial assistance to be awarded under the agreements. The rules also shall establish terms and conditions under which an agreement may be entered into after the first day of July of an odd-numbered year. The rules may do any or all of the following:

(a) Govern the establishment of consolidated funding allocations and specify the time period for which a consolidated funding allocation is to be provided if the effective date of the agreement is after the first day of July of an odd-numbered year, which may include a time period before the effective date of the agreement;

~~(c)~~(b) Specify allowable uses of financial assistance awarded under the agreements;

~~(d)~~(c) Establish reporting, cash management, audit, and other requirements the director determines are necessary to provide accountability for the use of financial assistance awarded under the agreements and determine compliance with requirements established by the department, a federal or state law, or any of the following that concern the family services duties included in the agreements and are published under section 5101.212 of the Revised Code: state plans for receipt of federal financial participation, grant agreements between the department and a federal entity, and executive orders issued by the governor.

(2) A requirement of a fiscal agreement established by a rule adopted under this division is applicable to a fiscal agreement without having to be restated in the fiscal agreement.

(1) "Local area" and "chief elected official" have the same meaning as in section 5101.20 of the Revised Code.

(B) The department of job and family services may take action under division (C) of this section against the responsible entity, regardless of who performs the workforce development activity, if the department determines any of the following are the case:

(1) A requirement of a grant agreement entered into under section 5101.20 of the Revised Code that includes the workforce development activity, including a requirement for grant agreements established by rules adopted under that section, is not complied with;

(2) A performance standard for the workforce development activity established by the federal government or the department is not met;

(3) A requirement for the workforce development activity established by the department or any of the following is not complied with: a federal or state law, state plan for receipt of federal financial participation, grant agreement between the department and a federal agency, or executive order;

(4) The responsible entity is solely or partially responsible, as determined by the director of job and family services, for an adverse audit finding, adverse quality control finding, final disallowance of federal financial participation, or other sanction or penalty regarding the workforce development activity.

(C) The department may take one or more of the following actions against the responsible entity when authorized by division (B)(1), (2), (3), or (4) of this section:

(1) Require the responsible entity to submit to and comply with a corrective action plan, established or approved by the department, pursuant to a time schedule specified by the department;

(a) Share with the department a final disallowance of federal financial participation or other sanction or penalty;

(b) Reimburse the department the amount the department pays to the federal government or another entity that represents the amount the responsible entity is responsible for of an adverse audit finding, adverse quality control finding, final disallowance of federal financial participation, or other sanction or penalty issued by the federal government, auditor of state, or other entity;

(c) Pay the federal government or another entity the amount that represents the amount the responsible entity is responsible for of an adverse audit finding, adverse quality control finding, final disallowance of federal financial participation, or other sanction or penalty issued by the federal government, auditor of state, or other entity;

(d) Pay the department the amount that represents the amount the responsible entity is responsible for of an adverse audit finding, adverse quality control finding, or other sanction or penalty issued by the department.

(3) Impose a financial or administrative sanction or adverse audit finding issued by the department against the responsible entity, which may be increased with each subsequent action taken against the responsible entity.;

(4) Perform or contract with a government or private entity for the entity to perform the workforce development activity until the department is satisfied that the responsible entity ensures that the activity will be performed to the department's satisfaction. If the department performs or contracts with an entity to perform the workforce development activity under division (C)(4) of this section, the department may withhold funds allocated to or reimbursements due to the responsible entity for the activity and use those funds to implement division (C)(4) of this section.

(5) Request the attorney general to bring mandamus proceedings to compel the responsible entity to take or cease the actions listed in division (B) of this section. The attorney general shall bring any mandamus proceedings in the Franklin county court of appeals at the department's request.

(6) If the department takes action under this division because of division (B)(3) of this section, withhold funds allocated or reimbursement due to the responsible entity until the department determines that the responsible entity is in compliance with the requirement. The department shall release the funds when the department determines that compliance has been achieved.

(7) Issue a notice of intent to revoke approval of all or part of the local plan effected that conflicts with state or federal law and effectuate the revocation.

(D) The department shall notify the responsible entity and the appropriate county auditor when the department proposes to take action under division (C) of this section. The notice shall be in writing and specify the action the department proposes to take. The department shall send the notice by regular United States mail. Except as provided in division (E) of this section, the responsible entity may request an administrative review of a proposed action in accordance with administrative review procedures the department shall establish. The administrative review procedures shall comply with all of the following:

(1) A request for an administrative review shall state specifically all of the following:

(a) The proposed action specified in the notice from the department for which the review is requested;

(b) The reason why the responsible entity believes the proposed action is inappropriate;

(d) The name of the person who will serve as the responsible entity's representative in the review.

(2) If the department's notice specifies more than one proposed action and the responsible entity does not specify all of the proposed actions in its request pursuant to division (D)(1)(a) of this section, the proposed actions not specified in the request shall not be subject to administrative review and the parts of the notice regarding those proposed actions shall be final and binding on the responsible entity.

(3) ~~In the case of a proposed action under division (C)(1) of this section, the~~ The responsible entity shall have fifteen calendar days after the department mails the notice to the responsible entity to send a written request to the department for an administrative review. If it receives such a request within the required time, the department shall postpone taking action under division (C)(1) of this section for fifteen calendar days following the day it receives the request to allow a representative of the department and a representative of the responsible entity an informal opportunity to resolve any dispute during that fifteen-day period. The responsible entity and the department shall attempt to resolve informally any dispute and may develop a written resolution to the dispute at any time prior to submitting the written report described in division (D)(7) of this section to the director.

(4) In the case of a proposed action under division (C)(2), (3), or (4) of this section, the responsible entity shall have thirty calendar days after the department mails the notice to the responsible entity to send a written request to the department for an administrative review. If it receives such a request within the required time, the department shall postpone taking action under division (C)(2), (3), or (4) of this section for thirty calendar days following the day it receives the request to allow a representative of the department and a representative of the responsible entity an informal opportunity to resolve any dispute during that thirty-day period.

~~(5)~~ In the case of a proposed action under division (C)(2) of this section, the responsible entity may not include in its request disputes over a finding, final disallowance of federal financial participation, or other sanction or penalty issued by the federal government, auditor of state, or other entity other than the department.

~~(6)~~(5) If the responsible entity fails to request an administrative review within the required time, the responsible entity loses the right to request an administrative review of the proposed actions specified in the notice and the notice becomes final and binding on the responsible entity.

~~(7) If the informal opportunity provided in division (D)(3) or (4) of this section does not result in a written resolution to the dispute, the~~ (6) The director of job and family services shall appoint an administrative review panel to conduct the administrative review. The review panel shall consist of department employees who are not involved in the department's proposal to take action against the responsible entity. The review panel shall review the responsible entity's request. The review panel may require that the department or responsible entity submit additional information and schedule and conduct an informal hearing to obtain testimony or additional evidence. A review of a proposal to take action under division (C)(2) of this section shall be limited solely to the issue of the amount the responsible entity shall share with the department, reimburse the department, or pay to the federal government, department, or other entity under division (C)(2) of this section. The review panel is not required to make a stenographic record of its hearing or other proceedings.

~~(8)~~(7) After finishing an administrative review, an administrative review panel appointed under division (D)~~(7)~~(6) of this section shall submit a written report to the director setting forth its findings of fact, conclusions of law, and recommendations for action. The director may approve, modify, or disapprove the recommendations. ~~If the director modifies or disapproves the recommendations, the director shall state the reasons for the modification or disapproval and the actions to be taken against the responsible entity.~~

~~(9)~~(8) The director's approval, modification, or disapproval under division (D)~~(8)~~(7) of this section shall be final and binding on the responsible entity and shall not be subject to further ~~departmental~~ review.

(E) The responsible entity is not entitled to an administrative review under division (D) of this section for any of the following:

(3) An action taken under division (C)(2) of this section if the federal government, auditor of state, or entity other than the department has identified the responsible entity as being solely or partially responsible for an adverse audit finding, adverse quality control finding, final disallowance of federal financial participation, or other sanction or penalty;

(4) An adjustment to an allocation, cash draw, advance, or reimbursement to the responsible entity's local area that the department determines necessary for budgetary reasons;

(5) Withholding of a cash draw or reimbursement due to noncompliance with a reporting requirement established in rules adopted under section 5101.243 of the Revised Code.

(F) This section does not apply to other actions the department takes against the responsible entity pursuant to authority granted by another state law unless the other state law requires the department to take the action in accordance with this section.

(G) The director of job and family services may adopt rules in accordance with Chapter 119. of the Revised Code as necessary to implement this section.

(H) The governor may decertify a local workforce development board for any of the following reasons in accordance with subsection (e) of section 117 of the "Workforce Investment Act of 1998" 112 Stat. 936, 29 U.S.C. 2801, as amended:

(2) Failure to carry out the requirements of the federal "Workforce Investment Act," 112 Stat. 936, 29 U.S.C. 2801, as amended, including failure to meet performance standards established by the federal government for two consecutive years.

If the governor finds that access to basic "Workforce Investment Act" services is not being provided in a local area, the governor may declare an emergency and, in consultation with the chief elected officials of the local area affected, arrange for provision of these services through an alternative entity during the time period in which resolution of the problem preventing service delivery in the local area is pending. An action taken by the governor pursuant to this section is not subject to appeal under this section.

Sec. 5101.244. If a county family services agency submits an expenditure report to the department of job and family services and the department subsequently determines that an allocation, advance, or reimbursement the department makes to the agency, or a cash draw the agency makes, for an expenditure exceeds the allowable amount for the expenditure, the department may adjust, offset, withhold, or reduce an allocation, cash draw, advance, reimbursement, or other financial assistance to the agency as necessary to recover the amount of the excess allocation, advance, reimbursement, or cash draw. The department is not required to make the adjustment, offset, withholding, or reduction in accordance with section 5101.24 of the Revised Code.

The director of job and family services may adopt rules under section 111.15 of the Revised Code as necessary to implement this section. The director shall adopt the rules as if they were internal management rules.

Sec. 5101.26. As used in this sectionand in sections5101.27 to 5101.30 of the Revised Code:

(A)"County agency" means a county department of job andfamily services or a public children services agency.

(B)"Fugitive felon" means an individual who is fleeing toavoidprosecution, or custody or confinement after conviction,under the laws of theplace from which the individual is fleeing,for a crime or an attempt tocommita crime that is a felony underthe laws of the place from which the individualis fleeing or, inthe case of NewJersey, a high misdemeanor, regardless ofwhetherthe individual has departed from the individual's usual place ofresidence.

(C)"Information" means records as defined in section149.011 ofthe Revised Code, any other documents inany format,and data derived from records and documents thatare generated,acquired, or maintained by the department ofjob and familyservices,a county agency, or an entity performing duties onbehalf of thedepartment or a county agency.

(D)"Law enforcementagency" means the state highway patrol,an agency that employs peace officersas defined in section 109.71of the Revised Code, the adultparole authority, a countydepartment of probation, aprosecuting attorney, theattorneygeneral, similar agencies of other states, federallaw enforcementagencies, and postal inspectors."Law enforcement agency"includes the peace officers and other law enforcement officersemployed by the agency.

(E)"Medical assistance provided under a public assistance program" means medical assistance provided under the programs established under sections 5101.49, 5101.50 to 5101.503, and 5101.51 to 5101.5110, ~~Chapters~~ Chapter 5111. ~~and 5115.~~, or any other provision of the Revised Code.

(F) "Public assistance" means financial assistance, medicalassistance, or social services provided under a programadministered by thedepartment of job and family services or acounty agencypursuant to Chapter 329., 5101., 5104., 5107.,5108., 5111., or 5115. of theRevised Code or an executive orderissued under section107.17 of the Revised Code.

(G)"Public assistance recipient" means an applicant for orrecipient or former recipient of publicassistance.

Sec. 5101.31. Any record, data, pricing information, or other information regarding a drug rebate agreement or a supplemental drug rebate agreement for the medicaid program established under Chapter 5111. of the Revised Code ~~or the disability medical assistance program established under section 5115.10 of the Revised Code~~ that the department of job and family services receives from a pharmaceutical manufacturer or creates pursuant to negotiation of the agreement is not a public record under section 149.43 of the Revised Code and shall be treated by the department as confidential information.

(1) "Agency" means the following entities that administer afamily services program:

(d) A private or government entity administering, in wholeor inpart, a family services program for or on behalfof thedepartment of job and family services or a countydepartment ofjob and family services or publicchildren services agency.

(2) "Appellant" means an applicant, participant, formerparticipant, recipient, or former recipient of a familyservicesprogramwho is entitled by federal orstate law to a hearingregarding a decision or order of theagency that administers theprogram.

(3) "Family services program" means assistance providedundera Title IV-A program as defined in section 5101.80 of theRevised Code or underChapter 5104., 5111., or 5115.or section173.35,5101.141, 5101.46, 5101.461, 5101.54, 5153.163, or5153.165 of theRevised Code, other thanassistance provided undersection 5101.46of theRevised Code by the department of mentalhealth,thedepartment of mental retardation and developmentaldisabilities, aboard of alcohol, drug addiction, and mentalhealth services, or acounty board of mental retardation anddevelopmental disabilities.

(B)Except as provided by ~~division~~divisions (G) and (H) of this section,an appellant who appeals under federal or state law adecision ororder of an agency administering a familyservicesprogram shall,at the appellant'srequest, be granted astate hearing by thedepartment of job and familyservices. This state hearing shallbeconducted in accordance with rules adopted under this section.Thestate hearing shall be tape-recorded, but neither therecordingnor a transcript of the recording shall be part of theofficialrecord of the proceeding. A state hearing decision isbindingupon the agency and department, unless it is reversed ormodified onappeal to the director of job and family services or acourt of commonpleas.

(C)Except as provided by division (G) of this section, anappellant who disagrees with a state hearingdecision may make anadministrative appeal to the director ofjob and familyservicesin accordance with rules adoptedunder this section. Thisadministrative appeal does not require a hearing, but thedirectoror the director'sdesigneeshall review thestate hearing decisionand previous administrative action and mayaffirm, modify, remand,or reverse the state hearing decision. Any persondesignated tomake an administrative appeal decisionon behalf of the directorshall have been admitted to thepractice of law in this state. Anadministrative appeal decisionis the final decision of thedepartment and is binding uponthe department andagency, unlessit is reversed or modified onappealto the court of common pleas.

(D) An agency shall comply with a decision issued pursuanttodivision(B) or (C) of this section within the time limitsestablished byrules adopted under this section. If a countydepartment of job and family services or apublic childrenservices agency fails to comply within these time limits, thedepartment may take action pursuant to section5101.24of theRevised Code. If another agency fails to comply within the timelimits, the department may force compliance by withholding fundsdue theagency or imposing another sanction established by rulesadopted under thissection.

(E) An appellant who disagrees with an administrativeappealdecision of the director of job and family servicesor thedirector's designee issued under division (C)of this section mayappeal from the decision to the court ofcommon pleas pursuant tosection 119.12 of the Revised Code. Theappeal shall be governedby section 119.12 of the Revised Codeexcept that:

(1) The person may appeal to the court of common pleas ofthe county in which the person resides, or to the court ofcommonpleasof Franklin county if the person does not reside in thisstate.

(2) The person may apply to the court for designation asanindigent and, if the court grants this application, theappellantshall not be required to furnish the costs of theappeal.

(3) The appellant shall mail the notice of appeal to thedepartment of job and family services and file notice ofappealwiththe court withinthirty days after the department mails theadministrativeappeal decision to the appellant. For good causeshown, thecourt may extend the time for mailing and filing noticeofappeal, but such time shall not exceed six months from the datethe department mails the administrative appeal decision. Filingnotice of appeal with the court shall be the only actnecessary tovest jurisdiction in the court.

(4) The department shall be required to file atranscript ofthe testimony of the state hearing with the courtonly if thecourt orders the department to file the transcript. The courtshall make such an order only if it finds that thedepartment andthe appellant are unable to stipulate to the factsof the case andthat the transcript is essential to adetermination of the appeal.The department shall file thetranscript not later than thirtydays after the day such an orderis issued.

(F) The department of job and family services shall adoptrulesin accordance with Chapter 119. of the RevisedCode toimplement this section, including rules governingthe following:

(1) State hearings under division (B) of this section. Therules shall include provisions regarding notice of eligibilitytermination andthe opportunity of an appellant appealing adecision or order of a countydepartment of job and familyservices to request a county conference with thecounty departmentbefore the state hearing is held.

(3) Time limits for complying with a decision issued underdivision (B) or (C) of this section;

(4) Sanctions that may be applied against an agency underdivision(D) of this section.

(G)The department of job and family services may adopt rulesin accordance with Chapter 119. of the Revised Code establishingan appeals process for an appellant who appeals a decision ororder regarding a Title IV-A program identified under division(A)~~(3)~~(4)(c) or, (d), (e), or (f) of section 5101.80 of the Revised Code that isdifferent from the appeals process established by this section.The different appeals process may include having a state agencythat administers the Title IV-A program pursuant to an interagencyagreement entered into under section 5101.801 of the Revised Codeadminister the appeals process.

(H) If an appellant receiving medicaid through a health insuring corporation that holds a certificate of authority under Chapter 1751. of the Revised Code is appealing a denial of medicaid services based on lack of medical necessity or other clinical issues regarding coverage by the health insuring corporation, the person hearing the appeal may order an independent medical review if that person determines that a review is necessary. The review shall be performed by a health care professional with appropriate clinical expertise in treating the recipient's condition or disease. The department shall pay the costs associated with the review.

A review ordered under this division shall be part of the record of the hearing and shall be given appropriate evidentiary consideration by the person hearing the appeal.

(I) The requirements of Chapter 119. of the Revised Codeapply to astate hearing or administrative appeal under thissection only to the extent,if any, specifically provided by rulesadopted under this section.

Sec. 5101.36. Any application for public assistance givesaright of subrogation to the department of job and family servicesforany workers' compensation benefits payable to a person who issubject to a support order, as defined in section 3119.01 of theRevised Code, on behalf of the applicant,to the extent of anypublic assistance payments made on theapplicant's behalf. If thedirector of job and family services, inconsultation with a childsupport enforcement agency and theadministrator of the bureau ofworkers' compensation, determinesthat a person responsible forsupport payments to a recipient ofpublic assistance is receivingworkers' compensation, thedirector shall notify the administratorof the amount of the benefit to bepaid to the department of joband family services.

For purposes of this section,"public assistance" meansmedical assistance provided through the medical assistanceprogramestablished under section 5111.01 of the Revised Code;Ohio worksfirst providedunder Chapter 5107. of theRevised Code;prevention, retention, and contingencybenefits andservicesprovidedunder Chapter 5108. of the Revised Code; disability financialassistanceprovided under Chapter5115. of the RevisedCode; or disability medical assistance provided under former Chapter 5115. of the Revised Code.

(1) "Title XX" means Title XX of the"Social Security Act," 88 Stat. 2337(1974), 42 U.S.C.A.1397, as amended.

(2) "Respective local agency" means, with respect tothe department of job and family services, a countydepartment of job and family services; with respect to thedepartment of mental health, aboard of alcohol, drug addiction, and mental health services;and with respect to the department of mental retardation anddevelopmental disabilities, a county board of mental retardationand developmental disabilities.

(3) "Federal poverty guidelines" means thepoverty guidelines as revised annually by theUnited States department of health andhuman services in accordance with section 673(2) of the"Omnibus Budget Reconciliation Act of1981," 95 Stat. 511, 42U.S.C.A. 9902, as amended, for a familysize equal to the size of thefamily of the person whose income is being determined.

(B) The departments of job and family services,mental health, and mental retardation and developmentaldisabilities, with their respective local agencies, shalladminister the provision ofsocial services funded through grants made underTitle XX. The social services furnished with Title XX fundsshall be directed at the following goals:

(1) Achieving or maintaining economic self-support toprevent, reduce, or eliminate dependency;

(2) Achieving or maintaining self-sufficiency, includingreduction or prevention of dependency;

(3) Preventing or remedying neglect, abuse, orexploitation of children and adults unable to protect their owninterests, or preserving, rehabilitating, or reuniting families;

(4) Preventing or reducing inappropriate institutionalcare by providing for community-based care, home-based care, orother forms of less intensive care;

(5) Securing referral or admission for institutional carewhen other forms of care are not appropriate, or providingservices to individuals in institutions.

(C)(1) All federal funds received under TitleXX shall be appropriated as follows:

(a) Seventy-two and one-half per cent to thedepartment of job and family services;

(b) Twelve and ninety-three one-hundreths percent to the department of mental health;

(c) Fourteen and fifty-seven one-hundreths percent to the department of mental retardation and developmentaldisabilities.

(2) Each state department shall, subject to theapproval of the controlling board, develop formulas for thedistribution of their TitleXX appropriations to theirrespective local agencies. The formulas shall take into accountthe total population of the area that is served by the agency,the percentage of the population in the area that falls belowthe federal poverty guidelines, and the agency's history of andability to utilize Title XX funds.

(3) Each of the statedepartments shall expend no more than three per cent of itsTitle XX appropriation for stateadministrative costs. Each of the department's respective localagencies shall expend no more than fourteen per cent of itsTitle XX appropriation for local administrative costs.

(4) The department of job and family services shallexpend no morethan two per cent of its TitleXX appropriation for thetraining of the following:

(b) Providers of services under contract with thestate departments' respective local agencies;

(D) The department ofjob and family services shall prepare a biennialcomprehensive TitleXX social services plan on the intended use of TitleXX funds. The department shall develop a method for obtaining publiccomment during the development of the plan and following itscompletion.

For each state fiscal year, the department of job andfamily services shall prepare a report on the actual use of TitleXX funds. The department shall make the annual report available forpublic inspection.

The departments of mental health and mental retardationand developmental disabilities shall prepare and submit to thedepartment of job and family services the portions of eachbiennial planand annual report that apply to services for mental health andmental retardation and developmental disabilities. Eachrespective local agency of the three state departments shallsubmit information as necessary for the preparation of biennialplans and annual reports.

(E) Each countydepartment shall adopt a county profile for the administrationand provision of Title XX social services in the county. Indeveloping its county profile, the county department shall takeinto consideration the comments and recommendations receivedfrom the public by the county family servicesplanning committeepursuant to section 329.06 of the RevisedCode. As part of itspreparation of the county profile, the county department mayprepare a local needs report analyzing the need for Title XXsocial services.

The county department shall submit the county profileto the board of county commissioners for its review. Once thecounty profile has been approved by the board, the countydepartment shall file a copy of the county profile with thedepartment of job and family services. Thedepartment shallapprove the county profile if the department determines theprofileprovides for the Title XX social services to meet the goalsspecified in division (B) of this section.

(F) Not less often than every two years, the departments ofjob and family services, mental health, and mentalretardation anddevelopmental disabilities each shall commission an entityindependent of itself to conduct an audit of its Title XXexpenditures in accordancewith generally accepted auditing principles. Within thirty daysfollowing the completion of its audit, each department shallsubmit a copy of the audit to the general assembly and to theUnited States secretary of health andhuman services.

~~(G)~~ Any of the threestate departments and their respective local agencies mayrequire that an entity under contract to provide social serviceswith Title XX funds submit to an audit on the basis ofalleged misuse or improper accounting of funds. ~~The~~ If an audit is required, the social services provider shall reimburse the state department or local agency for the cost it incurred in conducting the audit or having the audit conducted.

If an audit demonstrates that a social services provider is responsible for one or more adverse findings, the provider shall reimburse the appropriate state department or its respective local agency the amount of the adverse findings. The amount shall not be reimbursed with Title XX funds received under this section. The three statedepartments and their respective local agencies may terminate orrefuse to enter into a Title XX contract with a ~~provider of~~social services provider if there are adverse findings in an audit thatare the responsibility of the provider. ~~The amount of anyadverse findings shall not be reimbursed with Title XXfunds. The cost of conducting an audit shall be reimbursed under asubsequent or amended Title XX contract with theprovider.~~

~~(J)~~(G) The department of job and family services may adoptrules~~necessary~~ to implement and carry out thepurposes of this section. Rules ~~adopted under this division shall beadopted inaccordance with Chapter 119. ofthe Revised Code, unless they are internalmanagement rules governing fiscal and administrative matters. Internal~~ governing financial and operational matters of the department or matters between the department and county departments of job and family services shall be adopted as internal management rules ~~may be adopted~~ in accordance withsection 111.15 of the RevisedCode. Rules governing eligibility for services, program participation, and other matters pertaining to applicants and participants shall be adopted in accordance with Chapter 119. of the Revised Code.

(1) "Title IV-A" means Title IV-A of the "Social Security Act," 110 Stat. 2113 (1996), 42 U.S.C. 601, as amended.

(B) To the extent authorized by federal law, the department of job and family services may use funds received through the Title IV-A temporary assistance for needy families block grant for purposes of providing Title XX social services. The amount used under this section shall not exceed the maximum amount permitted by federal law. The funds and provision of Title XX social services with the funds are not subject to section 5101.46 of the Revised Code.

(C) The department and any county department of job and family services may require an entity under contract to provide Title XX social services with funds used under this section to submit to an audit on the basis of alleged misuse or improper accounting of funds. If an audit is required, the social services provider shall reimburse the state department or county department for the cost it incurred in conducting the audit or having the audit conducted.

If an audit demonstrates that a social services provider is responsible for one or more adverse findings, the provider shall reimburse the state department or county department the amount of the adverse findings. The amount shall not be reimbursed with funds received under this section. The state department and county departments may terminate or refuse to enter into a contract with a social services provider to provide services with funds available pursuant to this section if there are adverse findings in an audit that are the responsibility of the provider.

(D) The state department of job and family services may adopt rules to implement and carry out the purposes of this section. Rules governing financial and operational matters of the department or matters between the department and county departments of job and family services shall be adopted as internal management rules in accordance with section 111.15 of the Revised Code. Rules governing eligibility for services, program participation, and other matters pertaining to applicants and participants shall be adopted in accordance with Chapter 119. of the Revised Code.

Sec. 5101.47. (A) ~~The~~ Except as provided in division (B) of this section, the director of job and family services mayaccept applications, determine eligibility, redetermine eligibility, and perform relatedadministrative activities for one or more of the following:

(2) The children's healthinsurance program parts I and IIprovided for under sections 5101.50 and 5101.51 of the RevisedCode;

(4) The food stamp program administered by the department of job and family services pursuant to section 5101.54 of the Revised Code;

(5) Other programs the director determines are supportive ofchildren, adults, or families ~~with at least one employed member~~;

(6) Other programs regarding which the director determines administrative cost savings and efficiency may be achieved through the department accepting applications, determining eligibility, redetermining eligibility, or performing related administrative activities.

(B) If federal law requires a face-to-face interview to complete an eligibility determination for a program specified in or pursuant to division (A) of this section, the face-to-face interview shall not be conducted by the department of job and family services.

(C) Subject to division (B) of this section, if the director elects to accept applications, determineeligibility, redetermine eligibility, and perform related administrative activities for a programspecified in or pursuant to division (A) of this section,both of the following apply:

(1) An individual seeking services under the program may applyfor the program to the director or to the entity that state lawgoverning the program authorizes to accept applications for theprogram.

(2) The director is subject to federal statutes and regulations and state ~~law~~ statutes and rules thatrequire, permit, or prohibit an action regarding accepting applications,determining or redetermining eligibility, and performing related administrativeactivities for the program.

Sec. 5101.80. (A)As used in this section and in section5101.801 of the Revised Code:

(1) "County family services agency" has the same meaning asin section 307.981 of the Revised Code.

(a) A county family services agency or state agency administering a Title IV-A program under the supervision of the department of job and family services;

(b) A government agency or private, not-for-profit entity administering a project funded in whole or in part with funds provided under the Title IV-A demonstration program created under section 5101.803 of the Revised Code.

(4) "Title IV-A program" means all of the following thatarefunded in part with funds provided under the temporaryassistancefor needy families block grant established by TitleIV-A of the"Social Security Act," 110 Stat. 2113 (1996), 42U.S.C. 601, asamended:

(a) The Ohio works first program established under Chapter5107. of the Revised Code;

(b) The prevention, retention, and contingency programestablished under Chapter 5108. of the Revised Code;

(c) A program established by the general assembly or anexecutive order issued by the governor that is administered orsupervised by the department of job and family services pursuantto section 5101.801 of the Revised Code;

(d) The kinship permanency incentive program created under section 5101.802 of the Revised Code;

(e) The Title IV-A demonstration program created under section 5101.803 of the Revised Code;

(f) A component of a Title IV-A program identified underdivisions (A)~~(3)~~(4)(a) to ~~(c)~~(e) of this section that the Title IV-Astate plan prepared under division (C)(1) of this sectionidentifies as a component.

(B) The department of job and family services shall act asthe single state agency to administer and supervise theadministration of Title IV-A programs. The Title IV-A state planand amendments to the plan prepared under division (C) of thissection are binding on ~~county family services agencies and stateagencies that administer a~~ Title IV-A ~~program~~ administrative agencies. No ~~county familyservices agency or state agency administering a~~ Title IV-A ~~program~~ administrative agencymay establish, by rule or otherwise, a policy governing ~~the~~ a TitleIV-A program that is inconsistent with a Title IV-A program policyestablished, in rule or otherwise, by the director of job andfamily services.

(1) Prepare and submit to the United States secretary ofhealth and human services a Title IV-A stateplan forTitle IV-Aprograms;

(2)Prepare and submit to the United States secretary ofhealth and human services amendments to the Title IV-A state planthat the department determines necessary, including amendmentsnecessary to implement Title IV-A programs identified in ~~division~~ divisions(A)~~(3)~~(4)(c) ~~and (d)~~ to (f) of this section;

(3) Prescribe forms for applications, certificates,reports,records, and accounts of ~~countyfamily servicesagencies andstate agencies administering a~~ TitleIV-A ~~program~~ administrative agencies, andothermatters related toTitle IV-A programs;

(4) Make such reports, in such form and containing suchinformation as the department may find necessaryto assurethecorrectness and verification of such reports, regardingTitleIV-A programs;

(5) Require reports and information from each ~~county familyservicesagency and state agencyadministering a~~ Title IV-A~~program~~ administrative agency as may be necessaryoradvisable regarding~~the~~ a Title IV-Aprogram;

(6) Afford a fair hearing in accordance with section5101.35of the Revised Code to any applicant for,or participantor formerparticipant of,a Title IV-Aprogram aggrieved by a decisionregardingthe program;

(7) Administer and expend, pursuant toChapters 5104., 5107., and5108. of the Revised Codeand ~~section~~ sections 5101.801, 5101.802, and 5101.803 of the RevisedCode, anysums appropriated by the general assembly for thepurpose of thosechaptersand ~~section~~ sectionsand all sums paid to thestate by thesecretary of thetreasury of the United States asauthorized byTitle IV-A of the"Social Security Act,"110Stat.2113 (1996),42 U.S.C.601, as amended;

(8) Conduct investigationsand audits as are necessaryregardingTitle IV-A programs;

(9) Enter into reciprocal agreements with other statesrelative to the provision of Ohioworks first and prevention,retention, and contingency toresidents and nonresidents;

(10) Contract with a private entity toconduct anindependent on-going evaluation of theOhio works first programand the prevention, retention, andcontingency program. Thecontract must require the private entityto do all of thefollowing:

(b) Study former participants of Ohio works first whohavenotparticipated in Ohio works first for at least one year todeterminewhether theyare employed, the type of employment inwhich they are engaged, the amount ofcompensation they arereceiving, whether their employer provides healthinsurance,whether and how often they have receivedbenefits orservicesunder the prevention, retention, and contingency program,andwhether theyare successfully self sufficient;

(11) Not later thanJanuary 1, 2001, and the firstday ofeach January andJuly thereafter, prepare areport containinginformation on the following:

(a)Individuals exhausting thetimelimits for participationin Ohio works first set forth in section5107.18 of the RevisedCode.

(b) Individuals who have been exempted from thetime limitsset forth in section 5107.18 of theRevisedCode and the reasonsfor theexemption.

(12) Not later than January 1, 2001, and on a quarterlybasis thereafter until December 1, 2003, prepare, to the extentthenecessary data is available to the department, areport basedon information determined under section 5107.80 of theRevisedCodethat states how manyformer Ohio works first participantsentered the workforce during themost recentprevious quarter forwhich the information is known and includes informationregardingthe earnings of those former participants. The reportshallinclude a county-by-county breakdown and shall not contain thenames orsocial security numbers of formerparticipants.

(13) To the extent authorized by section 5101.801 of theRevised Code, enter into interagency agreements with stateagencies for the administration of Title IV-A programs identifiedunder division (A)(3)(c) and (d) of this section.

(D) The department shall provide copies of the reports itreceives under division(C)(10)of this section and preparesunder~~divisions~~ division(C)(11) ~~and (12)~~of thissection to thegovernor, thepresident and minority leader ofthe senate, and thespeaker andminority leader of the house ofrepresentatives. Thedepartmentshall provide copies of thereports to any private orgovernmententity on request.

(E) An authorized representative of the department or acounty family servicesagency or stateagency administering aTitle IV-A program shall have access toallrecords andinformationbearing thereon for the purposes ofinvestigationsconducted pursuant to thissection. An authorized representative of a government entity or private, not-for-profit entity administering a project funded in whole or in part with funds provided under the Title IV-A demonstration program shall have access to all records and information bearing on the project for the purpose of investigations conducted pursuant to this section.

Sec. 5101.801. (A) Except as otherwise provided by the lawenacted by the general assembly or executive order issued by thegovernor establishing the Title IV-A program, a Title IV-A programidentified under division (A)~~(3)~~(4)(c) or, (d), (e), or (f) of section 5101.80 ofthe Revised Code shall provide benefits and services that are not"assistance" as defined in 45 C.F.R. 260.31(a) and are benefitsand services that 45 C.F.R. 260.31(b) excludes from the definitionof assistance.

(B)(1) Except as otherwise provided by the law enacted by thegeneral assembly or executive order issued by the governorestablishing the Title IV-A program, the department of job andfamily services shall do either of the following regarding a TitleIV-A program identified under division (A)~~(3)~~(4)(c) or, (d), (e), or (f) of section5101.80 of the Revised Code:

~~(1)~~(a) Administer the program or supervise a county familyservices agency's administration of the program;

~~(2)~~(b) Enter into an interagency agreement with a state agencyfor the state agency to administer the program under thedepartment's supervision.

(2) The department may enter into an agreement with a government entity and, to the extent permitted by federal law, a private, not-for-profit entity for the entity to receive funding for a project under the Title IV-A demonstration program.

(C) If the department administers or supervises theadministration of a Title IV-A program identified under division(A)(3)(c) or (d) of section 5101.80 of the Revised Code pursuantto division (B)(1) of this section, the The department may adopt rulesgoverning ~~the program~~ Title IV-A programs identified under divisions (A)(4)(c), (d), (e), and (f) of section 5101.80 of the Revised Code. Rules governing financial and operationalmatters of the department or between the department and ~~the~~ countyfamily services ~~agency~~ agencies shall be adopted as internal managementrules adopted in accordance with section 111.15 of the RevisedCode. All other rules shall be adopted in accordance with Chapter119. of the Revised Code.

(D) If the department enters into an ~~interagency~~ agreementregarding a Title IV-A program identified under division (A)~~(3)~~(4)(c)~~or (d)~~, (e), or (f) of section 5101.80 of the Revised Code pursuant to division(B)(1)(b) or (2) of this section, the agreement shall include at least allof the following:

(1) A requirement that the state agency or entity comply with therequirements for the program or project, including all of the followingrequirements established by federal statutes and regulations,state statutes and rules, the United States office of managementand budget, and the Title IV-A state plan prepared under section5101.80 of the Revised Code:

(e) Appeals for applicants for, and recipients and formerrecipients of, the benefits and services;

(c) The appeals process under section 5101.35 of the RevisedCode for applicants for, and recipients and former recipients of,the ~~program's~~ program or project's benefits and services;

(d) Other ~~program and administrative~~ requirements that thedepartment requires be included.

(3) Procedures for the department to approve a policy,established by rule or otherwise, that the state agency or entityestablishes for the program or project before the policy is established;

(4) Provisions regarding how the department is to reimbursethe state agency or entity for allowable expenditures under the program or project thatthe department approves, including all of the following:

(b) The department, at its discretion, ~~withholding~~ doing either of the following:

(i) Withholding no morethan five per cent of the funds that the department wouldotherwise provide to the state agency or entity for the program or ~~charging~~ project;

(ii) Chargingthe state agency or entity for the costs to the department of performing, orcontracting for the performance of, audits and otheradministrative functions associated with the program or project.

(5) If the state agency or entity arranges by contract, grant, orother agreement for another entity to perform a function the stateagency or entity would otherwise perform regarding the program or project, the state~~agency's~~ agency or entity's responsibilities for both of the following:

(a) Ensuring that the other entity complies with the ~~interagency~~agreement between the state agency or entity and department and federalstatutes and regulations and state statutes and rules governingthe use of funds for the program or project;

(b) Auditing the other entity in accordance with requirementsestablished by the United States office of management and budget.

(6) The state ~~agency's~~ agency or entity's responsibilities regarding the promptpayment, including any interest assessed, of any adverse auditfinding, final disallowance of federal funds, or other sanction orpenalty imposed by the federal government, auditor of state,department, a court, or other entity regarding funds for theprogram or project;

(7) Provisions for the department to terminate the~~interagency~~ agreement or withhold reimbursement from the stateagency or entity if either of the following occur:

(a) The federal government disapproves the program or project orreduces federal funds for the program or project;

(b) The state agency or entity fails to comply with the terms of the~~interagency~~ agreement.

(a) The department and state agency or entity determining the performance outcomes expected for the program or project;

(b) An evaluation of the program or project to determine its success in achieving the performance outcomes determined under division (D)(8)(a) of this section.

(E) To the extent consistent with the law enacted by thegeneral assembly or executive order issued by the governorestablishing the Title IV-A program and subject to the approval ofthe director of budget and management, the director of job andfamily services may terminate a Title IV-A program identifiedunder division (A)~~(3)~~(4)(c) or, (d), (e), or (f) of section 5101.80 of the RevisedCode or reduce funding for the program if the director of job andfamily services determines that federal or state funds areinsufficient to fund the program. If the director of budget andmanagement approves the termination or reduction in funding forsuch a program, the director of job and family services shallissue instructions for the termination or funding reduction. If a~~county family services agency or state~~ Title IV-A administrative agency is administering theprogram, the ~~county family services agency or state~~ agency isbound by the termination or funding reduction and shall complywith the director's instructions.

(F) The director of job and family services may adoptinternal management rules in accordance with section 111.15 of theRevised Code as necessary to implement this section. The rulesare binding on each ~~county family services agency and state agencyadministering, pursuant to this section, a~~ Title IV-A ~~programidentified in division (A)(3)(c) or (d) of section 5101.80 of theRevised Code~~ administrative agency.

(1) "Custodian," "guardian," and "minor child" have the same meanings as in section 5107.02 of the Revised Code.

(2) "Federal poverty guidelines" has the same meaning as in section 5101.46 of the Revised Code.

(3) "Kinship caregiver" has the same meaning as in section 5101.85 of the Revised Code.

(B) Subject to division (E) of section 5101.801 of the Revised Code, there is hereby created the kinship permanency incentive program to promote permanency for a minor child in the legal and physical custody of a kinship caregiver. The program shall provide an initial one-time incentive payment to the kinship caregiver to defray the costs of initial placement of the minor child in the kinship caregiver's home. The program may provide additional permanency incentive payments for the minor child at six month intervals for a total period not to exceed thirty-six months.

(C)A kinship caregiver may participate in the program if all of the following requirements are met:

(1) The kinship caregiver applies to a public children services agency in accordance with the application process established in rules authorized by division (E) of this section;

(2) The minor child the kinship caregiver is caring for is a child with special needs as that term is defined in rules adopted under section 5153.163 of the Revised Code;

(3) A juvenile court has adjudicated the minor child to be an abused, neglected, dependent, or unruly child and determined that it is in the child's best interest to be in the legal custody of the kinship caregiver or the probate court has determined that it is in the child's best interest to be in the guadianship of the kinship caregiver;

(5) The minor child resides with the kinship caregiver pursuant to a placement approval process established in rules authorized by division (E) of this section;

(6) The gross income of the kinship caregiver's family, including the minor child, does not exceed two hundred per cent of the federal poverty guidelines.

(D) Public children services agencies shall make initial and ongoing eligibility determinations for the kinship permanency incentive program in accordance with rules authorized by division (E) of this section. The director of job and family services shall supervise public children services agencies' duties under this section.

(E) The director of job and family services shall adopt rules under division (C) of section 5101.801 of the Revised Code as necessary to implement the kinship permanency incentive program. The rules shall establish all of the following:

(2) The placement approval process through which a minor child is placed with a kinship caregiver for the kinship caregiver to be eligible for the program;

(5) The method by which the incentive payments are provided to a kinship caregiver;

(F) The director shall begin implementation of the kinship permanency incentive program no later than January 1, 2006.

Sec. 5101.803. (A) Subject to division (E) of section 5101.801 of the Revised Code, there is hereby created the Title IV-A demonstration program to provide funding for innovative and promising prevention and intervention projects that meet one or more of the four purposes of the temporary assistance for needy families block grant as specified in 42 U.S.C. 601 and are for individuals with specific and multiple barriers to achieving or maintaining self-sufficiency and personal responsibility. The department of job and family services may provide funding for such projects to government entities and, to the extent permitted by federal law, private, not-for-profit entities with which the department enters into agreements under division (B)(2) of section 5101.801 of the Revised Code.

In accordance with criteria the department develops, the department may solicit proposals for entities seeking to enter into an agreement with the department under division (B)(2) of section 5101.801 of the Revised Code. The department may enter into such agreements with entities that do both of the following:

(2) If the entity's proposed project does not potentially affect persons in each county of the state, provides the department evidence that the entity has notified, in writing, the county department of job and family services of each county where persons may be affected by the implementation of the project.

(B) In developing the criteria, soliciting the proposals, and entering in the agreements, the department shall comply with all applicable federal and state laws, the Title IV-A state plan submitted to the United States secretary of health and human services under section 5101.80 of the Revised Code, amendments to the Title IV-A state plan submitted to the United States secretary under that section, and federal waivers the United States secretary grants.

Sec. 5101.821. Except as otherwise approved by the directorof budget and management, the department of job and familyservicesshall deposit federal funds received under Title IV-A ofthe"Social Security Act," 42 U.S.C.A. 601, 110 Stat. 2113 (1996),into the temporary assistance for needy families (TANF) federalfund, which is hereby created in the state treasury. Thedepartment shall use money in the fund for the Ohio works firstprogram established under Chapter 5107. of the Revised Code; theprevention, retention, and contingency program established underChapter 5108. of the Revised Code; social services provided pursuant to section 5101.461 of the Revised Code; and any other purposesconsistent with Title IV-A, federal regulations, federal waiversgranted by the United States secretary of health and humanservices, state law, the Title IV-A state plan and amendmentssubmitted to the United States secretary of health and humanservices under section 5101.80 of the Revised Code, and rulesadopted by the department under section 5107.05 of the RevisedCode.

Sec. 5101.93. (A) The director of job and family services shall determine whether a waiver of federal medicaid requirements is necessary to fulfill the requirements of section 3901.3814 of the Revised Code. If the director determines a waiver is necessary, the department of job and family services shall apply to the United States secretary of health and human services for the waiver.

(B)(1) If the director determines that section 3901.3814 of the Revised Code can be implemented without a waiver or a waiver is granted, the department shall notify the department of insurance that the section can be implemented. Implementation of the section shall be effective eighteen months after the notice is sent.

(2) At the time the notice is given under division (B)(1) of this section, the department shall also give notice to each health insuring corporation that provides coverage to medicaid recipients. The notice shall inform the corporation that sections 3901.38 and 3901.381 to 3901.3814 of the Revised Code apply to claims for services rendered to recipients on the date determined under division (B)(1) of this section. That date shall be specified in the notice.

Sec. 5101.98. (A) There is hereby created in the state treasury the military injury relief fund, which shall consist of money contributed to it under section 5747.113 of the Revised Code and of contributions made directly to it. Any person may contribute directly to the fund in addition to or independently of the income tax refund contribution system established in section 5747.113 of the Revised Code.

(B) Upon application, the director of job and family services shall grant money in the fund to individuals injured while in active service as a member of the armed forces of the United States and while serving under operation Iraqi freedom or operation enduring freedom.

(C) An individual who receives a grant under this section is not precluded from receiving one or more additional grants under this section and is not precluded from being considered for or receiving other assistance offered by the department of job and family services.

(D) The director shall adopt rules under Chapter 119. of the Revised Code establishing:

(1) Forms and procedures by which individuals may apply for a grant under this section;

(3) Criteria for determining the amount of grants awarded under this section; and

(4) Any other rules necessary to administer the grant program established in this section.

(A)"Administrator" means the person responsible for thedaily operation of a center or type A home. The administratorandthe owner may be the same person.

(B)"Approved child day camp" means a child day campapproved pursuant to section 5104.22 of the Revised Code.

(C)"Authorized provider" means a person authorized by acounty director of job and family services to operate acertifiedtype B family day-care home.

(D)"Border state child care provider" means a child careproviderthat is located in a state bordering Ohio andthat is licensed,certified,or otherwise approved by that stateto provide child care.

(E)"Caretaker parent" means the father or mother of achildwhose presence in the home is needed as the caretaker ofthechild, a person who has legal custody of a child and whosepresence in the home is needed as the caretaker of the child, aguardian of a child whose presence in the home is needed as thecaretaker of the child, and any other person who stands in locoparentis with respect to the child and whose presence in the homeis needed as the caretaker of the child.

(F)"Certified type B family day-care home" and"certifiedtype B home" mean a type B family day-care homethat is certifiedby the director of the county department ofjob and familyservices pursuant to section 5104.11 of the Revised Codetoreceive public funds for providing child care pursuant to thischapterandany rules adopted under it.

(G)"Chartered nonpublic school" means a school thatmeetsstandards for nonpublic schools prescribed by the stateboard ofeducation for nonpublic schools pursuant to section3301.07 of theRevised Code.

(I)"Child care block grant act" means the"ChildCare andDevelopment Block GrantAct of 1990," established in section 5082of the"OmnibusBudget Reconciliation Act of 1990," 104Stat.1388-236 (1990), 42U.S.C. 9858, asamended.

(J)"Child day camp" means a program in which only schoolchildren attend or participate, that operates for no more thanseven hours per day, that operates only during one or more publicschool district's regular vacation periods or for no more thanfifteen weeks during the summer, and that operates outdooractivities for each child who attends or participates in theprogram for a minimum of fifty per cent of each day that childrenattend or participate in the program, except for any day whenhazardous weather conditions prevent the program from operatingoutdoor activities for a minimum of fifty per cent of that day.For purposes of this division, the maximum seven hours ofoperation time does not include transportation time from achild'shome to a child day camp and from a child day camp to achild'shome.

(K)"Child care" means administering to the needs ofinfants, toddlers, preschool children, and schoolchildren outsideof school hours by persons other than their parents orguardians,custodians, or relatives by blood, marriage, oradoption for anypart of the twenty-four-hour day in a place orresidence otherthan a child's own home.

(L)"Child day-care center" and"center" mean any placeinwhich child care or publicly funded child care isprovidedfor thirteen or more children at one time or any placethat is notthe permanent residence of the licensee oradministrator in whichchild care or publicly funded child care is provided forseven to twelve children at one time. In counting children forthe purposes of this division, anychildren under six years of agewho are related to a licensee,administrator, or employee and whoare on the premises of thecenter shall be counted."Childday-care center" and"center" donot include any of the following:

(1) A place located in and operated by a hospital, asdefined in section 3727.01 of the Revised Code, in which theneedsof children are administered to, if all the children whoseneedsare being administered to are monitored under the on-sitesupervision of a physician licensed under Chapter 4731.of theRevised Code or aregistered nurse licensed under Chapter 4723.ofthe Revised Code, and the services are provided only forchildrenwho, in the opinion of the child's parent, guardian, orcustodian,are exhibiting symptoms of a communicable disease orother illnessor are injured;

(3) A place that provides child care, butnot publiclyfunded child care, if all of thefollowing apply:

(b) A parent, custodian, or guardian of at least onechildreceiving child care is on thepremises and readily accessibleat all times;

(M)"Child care resource and referral serviceorganization"means a community-based nonprofit organization thatprovides child careresource and referral services but notchild care.

(N)"Child care resource and referral services" meansall of the following services:

(1) Maintenance of a uniform data base of all child careproviders in the community that are in compliance withthischapter, including current occupancy and vacancy data;

(2) Provision of individualized consumer education tofamilies seeking child care;

(3) Provision of timely referrals of available child care providers to families seeking child care;

(5) Assistance in the development, conduct, anddissemination of trainingfor child care providersandprovision of technical assistance to current and potentialchild care providers, employers, and the community;

(6) Collection and analysis of data on the supply of anddemand for child care in the community;

(7) Technical assistance concerning locally, state, andfederally fundedchild care and early childhood educationprograms;

(8) Stimulation of employer involvement in making child care more affordable, more available, safer, and of higherquality for their employees and for the community;

(9) Provision of written educational materials tocaretakerparents and informational resources to child careproviders;

(10) Coordination of services among child care resourceand referralservice organizations to assist in developing andmaintaining a statewidesystem of child care resource andreferral services if required by thedepartment of job and familyservices;

(11) Cooperation with the county department of job andfamily services in encouraging the establishment of parentcooperativechild care centers and parent cooperative typeAfamily day-care homes.

(O)"Child-care staff member" means an employee of achildday-care center or type A family day-care home who isprimarilyresponsible for the care and supervision of children. Theadministrator may be a part-time child-care staff member whennotinvolved in other duties.

(P)"Drop-in child day-care center,""drop-in center,""drop-in type A family day-care home," and"drop-in type Ahome"mean a center or type A home that provides child care orpublicly funded child care for children on a temporary,irregular basis.

(1) Receives compensation for duties performed in a childday-care center or type A family day-care home;

(2) Is assigned specific working hours or duties in achildday-care center or type A family day-care home.

(R)"Employer" means a person, firm, institution,organization, or agency that operates a child day-care center ortype A family day-care home subject to licensure under thischapter.

(S)"Federal poverty line" means the official povertyguideline as revised annually in accordance with section 673(2)ofthe"Omnibus Budget Reconciliation Actof 1981," 95 Stat. 511, 42U.S.C. 9902, as amended,for a family sizeequal to the size ofthe family of the person whose income is beingdetermined.

(T)"Head start program" means a comprehensive childdevelopment program that receives funds distributed under the"Head Start Act," 95 Stat. 499 (1981), 42U.S.C.A. 9831,asamended, ~~or under sections 3301.31 to 3301.37 of the Revised Code~~ and is licensed as a child day-care center.

(U)"Income" means gross income, as defined in section5107.10of the Revised Code, less any amounts required by federalstatutes orregulations to bedisregarded.

(V)"Indicator checklist" means an inspection tool, usedinconjunction with an instrument-based program monitoringinformation system,that contains selected licensing requirementsthat are statistically reliableindicators or predictors of achild day-care center or type A familyday-care home's compliancewith licensing requirements.

(X)"In-home aide" means a person certified by a countydirector of job and family services pursuant to section5104.12 ofthe Revised Codeto provide publicly funded child care to achildin a child's own home pursuant to this chapter and any rulesadopted under it.

(Y)"Instrument-based program monitoring informationsystem"means a method to assess compliance with licensing requirementsfor childday-care centers and type A family day-care homes inwhich eachlicensing requirement is assigned a weight indicativeof the relativeimportance of the requirement to the health,growth, and safety of thechildren that is used to develop anindicator checklist.

(Z)"License capacity" means the maximum number in eachagecategory of children who may be cared for in a child day-carecenteror type A family day-care home at one time as determined bythedirector of job and family services considering buildingoccupancy limitsestablished by the department of commerce, numberof available child-carestaff members, amount of available indoorfloor space and outdoor play space,and amount of available playequipment, materials, and supplies.

(AA)"Licensed preschool program" or"licensed schoolchildprogram" means a preschool program or school child program,asdefined in section 3301.52 of the Revised Code, that islicensedby the department of education pursuant to sections3301.52 to3301.59 of the Revised Code.

(BB)"Licensee" means the owner of a child day-carecenteror type A family day-care home that is licensed pursuant to thischapter and who is responsible for ensuring its compliance withthis chapter and rules adopted pursuant to this chapter.

(CC)"Operate a child day camp" means to operate,establish,manage, conduct, or maintain a child day camp.

(DD)"Owner" includes a person, as defined in section1.59of the Revised Code, or government entity.

(EE)"Parent cooperative child day-care center,""parentcooperative center,""parent cooperative type A family day-carehome," and"parent cooperative type A home" mean a corporation orassociation organized for providing educational services to thechildren of members of the corporation or association, withoutgain to the corporation or association as an entity, in which theservices of the corporation or association are provided only tochildren of the members of the corporation or association,ownership and control of the corporation or association restssolely with the members of the corporation or association, and atleast one parent-member of the corporation or association is onthe premises of the center or type A home during its hours ofoperation.

(FF)"Part-time child day-care center,""part-timecenter,""part-time type A family day-care home," and"part-time typeAhome" mean a center or type A home that provides child care orpublicly funded child care for no more than four hours a dayfor any child.

(GG)"Place of worship" means a building whereactivities ofan organized religious group are conducted and includes thegrounds and any other buildings on the grounds used for suchactivities.

(HH)"Preschool child" means a child who is three yearsoldorolder but is not a school child.

(II)"Protective child care" means publicly funded child care for the direct care and protection of a child to whomeither of the following applies:

(1) A case plan prepared and maintained for the childpursuant to section 2151.412 of the Revised Code indicates a needfor protective care and the child resides with a parent,stepparent, guardian, or another person who stands in locoparentis as defined in rules adopted under section 5104.38 of theRevised Code;

(2) The child and the child's caretaker either temporarilyresidein a facility providing emergency shelter for homelessfamiliesor are determined by the county department of job andfamily services to be homeless, and are otherwise ineligible forpubliclyfundedchild care.

(JJ)"Publicly funded child care" meansadministeringtothe needs of infants, toddlers, preschoolchildren, and schoolchildren under age thirteen duringany part of thetwenty-four-hour day bypersons other than their caretaker parentsfor remunerationwholly or in part with federal or state funds,including funds available under the child careblock grant act, Title IV-A, and Title XX, distributed by thedepartment of job and family services.

(KK)"Religious activities" means any of the following:worship or other religious services; religious instruction; Sundayschool classes or other religious classes conducted during orprior toworshipor other religious services; youth or adultfellowshipactivities; choir or other musical group practices orprograms;meals; festivals; or meetings conducted by an organizedreligiousgroup.

(LL)"School child" means a child who is enrolled in oriseligible to be enrolled in a grade of kindergarten or above butisless than fifteen years old.

(MM)"School child day-care center,""school childcenter,""school child type A family day-care home," and"school childtypeA family home" mean a center or type A home thatprovideschild care for school children only and that does either orboth ofthe following:

(1) Operates only during that part of the day thatimmediately precedes or follows the public school day of theschool district in which the center or type A home is located;

(2) Operates only when the public schools in the schooldistrict in which the center or type A home is located are notopen for instruction with pupils in attendance.

(NN)"State median income" means the state median incomecalculated by the department of development pursuant to division(A)(1)(g) of section 5709.61 of the Revised Code.

(OO)"Title IV-A" means Title IV-A of the "Social Security Act," 110 Stat. 2113 (1996), 42 U.S.C. 601, as amended.

(PP) "Title XX" means Title XX of the "Social Security Act," 88 Stat. 2337 (1974), 42 U.S.C. 1397, as amended.

(QQ) "Toddler" means a child who is at least eighteenmonthsof age but less than three years of age.

(RR)"Type A family day-care home" and"type A home"mean apermanent residence of the administrator in which child careor publicly funded child care is provided for seven to twelvechildren at one time or a permanent residence of theadministratorin which child care is provided for four totwelve children atone time if four or more children at one timeare under two yearsof age. In counting children for thepurposes of this division,any children under six years of agewho are related to a licensee,administrator, or employee and whoare on the premises of the typeA home shall be counted."Type Afamily day-care home" does notinclude a residence in which theneeds of children areadministered to, if all of the childrenwhose needs are beingadministered to are siblings of the sameimmediate family and theresidence is the home of the siblings."Type A family day-carehome" and"type A home" do not includeany child day camp.

(SS)"Type B family day-care home" and"type B home" meanapermanent residence of the provider in which child care isprovided for one to six children at one time and in which no morethan three children are under two years of age at one time. Incounting children for the purposes of this division, any childrenunder six years of age who are related to the provider and whoareon the premises of the type B home shall be counted."Type Bfamily day-care home" does not include a residence in which theneeds of children are administered to, if all of the childrenwhose needs are being administered to are siblings of the sameimmediate family and the residence is the home of the siblings."Type B family day-care home" and"type B home" do not includeanychild day camp.

Sec. 5104.02. (A) The director of job and family servicesisresponsible for the licensing of child day-care centers andtypeA family day-care homes~~, and~~. Each entity operating a head start program shall meet the criteria for, and be licensed as, a child day-care center. The director is responsible for the enforcement of thischapterand of rules promulgated pursuant to this chapter. No

Noperson,firm, organization, institution, or agency shall operate,establish, manage, conduct, or maintain a child day-care centerortype A family day-care home without a license issued undersection5104.03 of the Revised Code. The current license shallbe postedin a conspicuous place in the center or type A homethat isaccessible to parents, custodians, or guardians andemployees ofthe center or type A home at all times when thecenter or type Ahome is in operation.

(B) A person, firm, institution, organization, or agencyoperating any of the following programs is exempt from therequirements of this chapter:

(2) Child care in places of worship during religiousactivities during which children are cared for while at least oneparent, guardian, or custodian of each child is participating insuch activities and is readily available;

(4) Supervised training, instruction, or activities ofchildren in specific areas, including, but not limited to: art;drama; dance; music; gymnastics, swimming, or another athleticskill or sport; computers; or an educational subject conducted onan organized or periodic basis no more than one day a week andforno more than six hours duration;

(5) Programs in which the director determines that atleastone parent, custodian, or guardian of each child is on thepremises of the facility offering child care and is readilyaccessible at all times, except that child care provided onthe premises at which a parent, custodian, or guardian is employedmorethan two and one-half hours a day shall be licensed inaccordance withdivision (A) of this section;

(6)(a) Programs that provide child care funded andregulated or operated and regulated by state departments otherthan the department of job and family services or the state boardofeducation when the director of job and family services hasdeterminedthatthe rules governing the program are equivalent toor exceed therules promulgated pursuant to this chapter.

Notwithstanding any exemption from regulation under thischapter, each state department shall submit to the director of jobandfamily services a copy of the rules that govern programs thatprovide child care and are regulated or operated andregulatedby the department. Annually, each state departmentshall submitto the director a report for each such program itregulates oroperates and regulates that includes the followinginformation:

(ii) The maximum number of infants, toddlers, preschoolchildren, or school children served by the program at one time;

(iii) The number of adults providing child care forthenumber of infants, toddlers, preschool children, or schoolchildren;

(iv) Any changes in the rules made subsequent to the timewhen the rules were initially submitted to the director.

The director shall maintain a record of the child careinformation submitted by other state departments and shallprovidethis information upon request to the general assembly orthepublic.

(b) Child care programs conducted by boards ofeducationor by chartered nonpublic schools that are conducted inschoolbuildings and that provide child care to schoolchildren onlyshall be exempt from meeting or exceeding rulespromulgatedpursuant to this chapter.

(7) Any preschool program or school child program, except a head start program, that issubject to licensure by the department of education undersections3301.52 to 3301.59 of the Revised Code.

(8) Any program providing child care that meets all ofthe following requirements and, on October 20, 1987, was beingoperated by a nonpublic school that holds a charter issued by thestate board of education for kindergarten only:

(a) The nonpublic school has given the notice to the stateboard and the director of job and family services required bySection 4ofSubstitute House Bill No. 253 of the 117th generalassembly;

(b) The nonpublic school continues to be chartered by thestate board for kindergarten, or receives and continues to hold acharter from the state board for kindergarten through grade five;

(d) The program is operated in accordance with rulespromulgated by the state board under sections 3301.52 to 3301.57of the Revised Code.

(9) A youth development programoperated outside of schoolhours by a community-based center towhich all of the followingapply:

(a) The children enrolled in the program are undernineteenyears of age and enrolled in or eligible to be enrolledin a gradeof kindergarten or above.

(b) The program provides informal child care andat leasttwo of the following supervised activities: educational,recreational, culturally enriching, social, andpersonaldevelopment activities.

(c) The state board of education has approved theprogram'sparticipation in the child and adult care food programas anoutside-school-hours care center pursuant to standards establishedundersection 3313.813 of theRevisedCode.

(d) The community-based center operating theprogram isexempt from federal income taxation pursuant to 26U.S.C.501(a)and (c)(3).

Sec. 5104.32. (A) Except as provided in division (C)ofthis section, all purchases of publicly funded child careshall be made under a contract entered into by alicensed childday-care center, licensed type A family day-carehome, certifiedtype B family day-care home, certified in-homeaide, approvedchild day camp, licensed preschool program,licensed school childprogram, or border state child careprovider and the countydepartment of job and familyservices. A county department of joband family servicesmay enter into acontract with a provider forpublicly funded child care for aspecified period of time orupon a continuous basis for anunspecified period of time. Allcontracts for publicly fundedchild care shall be contingentupon the availability of stateand federal funds. The departmentof job and familyservices shall prescribe a standard form to beused for all contracts for thepurchase of publicly funded child care, regardless of thesource of public funds used topurchase the child care. Tothe extent permitted by federallaw and notwithstanding any otherprovision of the Revised Codethat regulates state or countycontracts or contracts involvingthe expenditure of state,county, or federal funds, all contractsfor publicly funded child care shall be entered into inaccordance with the provisionsof this chapter and are exempt fromany other provision of theRevised Code that regulates state orcounty contracts orcontracts involving the expenditure of state,county, or federalfunds.

(B) Each contract for publicly funded child care shallspecify at least the following:

(1) That the provider of publicly funded child careagrees to bepaid for rendering services at the lowest of the ratecustomarilycharged by the provider for children enrolled forchild care, the reimbursementceiling or rate of payment established pursuant to section5104.30 of the Revised Code, or a rate the county department negotiates with the provider;

(2) That, if a provider provides child care to anindividual potentially eligible for publicly funded child carewho is subsequently determined to be eligible, thecountydepartment agrees to pay for all child care providedbetweenthe date the county department receives the individual'scompletedapplication and the date the individual's eligibilityisdetermined;

(3) Whether the county department of job and familyservices, the provider, or a child care resource and referralserviceorganization will make eligibility determinations, whethertheprovider or a child care resource and referral serviceorganization will be required to collect information to be usedbythe county department to make eligibility determinations, andthetime period within which the provider or child careresourceand referral service organization is required tocomplete requiredeligibility determinations or to transmit tothe county departmentany information collected for the purposeof making eligibilitydeterminations;

(4) That the provider, other than a border state child careprovider ~~or except as provided in division (B) of section 3301.37 of the Revised Code~~, shall continue to be licensed,approved, orcertified pursuant to this chapter and shall comply with allstandards and otherrequirements in this chapter and in rulesadopted pursuant to this chapter for maintainingthe provider's license, approval, orcertification;

(5) That, in the case of a border state child careprovider, theprovider shall continue to be licensed, certified,or otherwise approved bythe state inwhich the provider islocated and shall comply with all standards andother requirementsestablished by that state for maintaining the provider'slicense,certificate, or other approval;

(6) Whether the provider will be paid by the countydepartment of job and family services or the statedepartment ofjob and family services;

(C) Unless specifically prohibited by federal law, thecounty department of job and family services shall giveindividualseligible for publicly funded child care the optionofobtaining certificates for payment that the individual may usetopurchase services from any provider qualified to providepubliclyfunded child care under section 5104.31 of theRevised Code. Providersof publicly funded child care maypresent thesecertificates for payment for reimbursement inaccordance withrules that the director of job andfamily servicesshall adopt. Onlyproviders may receive reimbursement forcertificates for payment. The valueofthe certificate forpayment shall be based on the lowest of the rate customarilycharged by the provider, the reimbursement ceiling or rate of payment establishedpursuant to section5104.30 of the Revised Code, or a rate the county department negotiates with the provider. The countydepartment may provide thecertificates for payment to theindividuals or may contract withchild care providers or child care resource and referralservice organizations that makedeterminations of eligibility forpublicly funded child carepursuant to contracts entered intounder section 5104.34 of theRevised Code for the providers orresource and referral serviceorganizations to provide thecertificates for payment toindividuals whom they determine areeligible for publicly fundedchild care.

For each six-month period a provider of publicly funded childcare provides publicly funded child day-care to the child ofan individual givencertificates for payment, the individual shallprovide the providercertificates for days the provider would haveprovided publicly funded child care to the child had the childbeenpresent. County departments shall specify the maximum numberof daysproviders will be provided certificates of payment fordays the provider wouldhave provided publicly funded child care had the child been present. Themaximum number of daysshallnot exceed tendays in a six-month period duringwhichpublicly funded child care is provided to the childregardlessof thenumber of providers that provide publicly fundedchild care to the child during that period.

Sec. 5107.05. The director of joband family services shalladopt rules to implement this chapter. The rules shall beconsistent with Title IV-A, TitleIV-D, federal regulations, state law, the TitleIV-A state plan submitted tothe United States secretary of health and human services under section 5101.80of theRevised Code, amendments to theplan, and waivers granted by theUnited States secretary. Rulesgoverning eligibility, program participation, and otherapplicant and participant requirements shall be adopted inaccordance with Chapter 119. ofthe Revised Code. Rules governingfinancial and other administrative requirements applicable tothe department of job and family services and county departments ofjob and family services shall beadopted in accordance with section 111.15 of theRevised Code.

(1) A payment standard for Ohio works first based onfederal and state appropriations;

(2) The method of determining the amount of cashassistance an assistance group receives under Ohio works first;

(3) Requirements for initial and continued eligibilityfor Ohio works first, including requirements regarding income,citizenship, age, residence, and assistance group composition. The rules regarding income shall specify what is countableincome, gross earned income, and gross unearned income for thepurpose of section 5107.10 of the Revised Code.

(4) For the purpose of section 5107.12 of theRevised Code, application andverification procedures, including the minimum information anapplication must contain;

(5) The extent to which a participant of Ohio works first mustnotify, pursuant to section 5107.12 of theRevised Code, a county department of job and familyservices of additional income not previously reported tothe county department;

(6) The department of job and family services providing writtennotice of a sanction under section 5107.161 of the Revised Code;

(7) Requirements for the collection and distribution ofsupport payments owed participants of Ohio works first pursuant tosection 5107.20 of theRevised Code;

(8) For the purpose of section 5107.22 of theRevised Code, what constitutescooperating in establishing a minor child's paternity orestablishing, modifying, or enforcing a child support order andgood cause for failure or refusal to cooperate. The rule shallbe consistent with 42 U.S.C.A.654(29).

(9) The ~~administration of~~ requirements governing the LEAP programprovided for undersection 5107.30 of the Revised Code, including the definitions of "equivalent of a high school diploma" and "good cause," and the incentives provided under the LEAP program;

(10) If the director implements section 5107.301 of the Revised Code, the requirements governing the award provided under that section, including the form that the award is to take and requirements an individual must satisfy to receive the award;

(11) Circumstances under which a county departmentof job and family services mayexempt a minor head of household or adult from participating in a workactivity or developmental activity for all or some of the weekly hoursotherwise required by section 5107.43 of theRevised Code. Circumstances shall include that a school orplace of work is closed due to aholiday or weather or other emergency and that an employer grants the minorhead of household or adult leave for illness or earned vacation.

~~(11)~~(12) The maximum amount of time the department willsubsidize positions created by state agencies and politicalsubdivisions under division (C) of section 5107.52 of theRevised Code.

(B) The rules mayprovide that a county department of job and familyservices is notrequired to take action under section 5107.76 of theRevised Code to recover an erroneouspayment that is below an amount the department specifies.

(1)"Countable income,""gross earned income,"and"grossunearned income" have the meanings established in rules adoptedunder section 5107.05 of the Revised Code.

(2) "Federal poverty guidelines" has the same meaning as in section 5101.46 of the Revised Code, except that references to a person's family in the definition shall be deemed to be references to the person's assistance group.

(b) The gross income maximum for initial eligibility for Ohio works first as that maximum was set by division (D)(1)(a) of this section on the day before the effective date of this amendment.

(5) "Strike" means continuous concerted action in failingtoreport to duty; willful absence from one's position; orstoppageof work in whole from the full, faithful, and properperformanceof the duties of employment, for the purpose ofinducing,influencing, or coercing a change in wages, hours,terms, andother conditions of employment."Strike" does notinclude astoppage of work by employees in good faith because ofdangerousor unhealthful working conditions at the place ofemployment thatare abnormal to the place of employment.

(B) Under the Ohio works first program, an assistancegroupshall receive, except as otherwiseprovided by this chapter,time-limitedcash assistance. In the case of an assistance groupthat includes a minorhead of household or adult, assistance shallbe provided in accordance withthe self-sufficiency contractentered into under section 5107.14 of the Revised Code.

(1) The assistance group, except as provided in division(E)of this section, mustinclude at least one of the following:

(a) A minor child who, except as provided in section 5107.24of the Revised Code, resides with aparent, or specified relativecaring for the child, or, to the extentpermitted by Title IV-Aand federalregulations adopted until Title IV-A, resides withaguardian orcustodian caring for the child;

(b) A parent residing with and caring forthe parent's minorchild who receives supplementalsecurity income under Title XVI ofthe"SocialSecurity Act," 86 Stat. 1475 (1972), 42 U.S.C.A.1383,as amended, or federal, state, or local adoptionassistance;

(c) A specified relative residing with and caring for aminor child who isrelated to the specified relative in a mannerthat makes the specifiedrelative a specified relative andreceives supplemental security income orfederal, state, or localfoster care or adoption assistance;

(2) The assistance group must meet the incomerequirementsestablished by division(D) of this section.

(4) The assistance group must satisfy the requirementsforOhio works first established by this chapter and sections5101.58, 5101.59, and 5101.83 of theRevised Code.

(5) The assistance group must meet requirements for Ohioworksfirst established by rules adopted under section5107.05 ofthe RevisedCode.

(D)(1) Except as provided in division (D)~~(3)~~(4) of thissection, to determine whether an assistance group is initiallyeligible to participate in Ohio works first, a countydepartmentof job and family services shall do thefollowing:

(a) Determine whether the assistance group's grossincomeexceeds the ~~following amount:~~

For each person in the assistance group that brings theassistance group to more than fifteen persons, add one hundredtwodollars to the amount of gross income for an assistancegroup offifteen specified in division(D)(1)(a) of this section.

In initial eligibility threshold. In making this determination, the county departmentshalldisregard amounts that federal statutes or regulations andsections 5101.17 and 5117.10 of theRevised Code require bedisregarded. The assistance group is ineligible to participate inOhio works firstif the assistance group's gross income, less theamounts disregarded, exceeds the ~~amount specified in division(D)(1)(a) of this section~~ initial eligibility threshold.

(b) If the assistance group's gross income, lessthe amountsdisregarded pursuant to division(D)(1)(a)of this section, doesnot exceed the ~~amount specified in that division~~ initial eligibility threshold,determinewhether the assistancegroup's countable income is less than thepayment standard. The assistancegroup is ineligible toparticipate in Ohio works first if the assistance group'scountable income equals orexceeds the payment standard.

(2) For the purpose of determining whether an assistance group meets the income requirement established by division (D)(1)(a) of this section, the annual revision that the United States department of health and human services makes to the federal poverty guidelines shall go into effect on the first day of July of the year for which the revision is made.

(3) To determine whether an assistance groupparticipatingin Ohio works first continues to be eligible toparticipate, acounty department of job and familyservices shalldeterminewhether the assistance group's countable incomecontinues to beless than the payment standard. In making thisdetermination, thecounty department shall disregard the firsttwo hundred fiftydollars and fifty per cent of the remainderof the assistancegroup's gross earned income. No amounts shall be disregarded fromthe assistancegroup's gross unearned income. The assistancegroup ceases tobe eligible to participate in Ohio works first ifitscountable income, less the amounts disregarded, equals orexceeds the payment standard.

~~(3)~~(4) If an assistance group reapplies to participate inOhioworks first not more than four months after ceasing toparticipate, a county department of job and familyservices shalluse the income requirement established bydivision (D)~~(2)~~(3) of thissectionto determine eligibility for resumed participation ratherthanthe income requirement established by division(D)(1) of thissection.

(E)(1) An assistance group may continue to participate inOhio works first even though a public children services agencyremoves the assistancegroup's minor children from the assistancegroup's home due to abuse, neglect,or dependency if the agencydoes both of the following:

(a) Notifies the county department of job and familyservices at the time the agency removes the childrenthat itbelieves the children will be able to return to theassistancegroup within six months;

(b) Informs the county department at the end ofeach of thefirst five months after theagency removes the childrenthat theparent, guardian,custodian, or specified relative of the childreniscooperating withthe case plans prepared for the children undersection 2151.412of the RevisedCode and that the agency ismakingreasonable efforts to return the children to the assistance group.

(2) An assistance group may continue to participate inOhioworks first pursuant to division(E)(1) of this section for notmore than six payment months. This division does notaffecttheeligibility of an assistance group that includes a woman atleastsix months pregnant.

(1) "Transitional child care" means publicly funded child care providedunder division (A)(3) of section5104.34 of the Revised Code.

(2) "Transitional medicaid" means the medicalassistance provided under section~~5111.023~~ 5111.0115 of the Revised Code.

(B) Except as provided in division (C) of this section,each member of an assistance group participating in Ohio worksfirst is ineligibleto participate in the program forsix payment monthsif a county department of job and family servicesdetermines that amember of the assistance group terminated themember's employment and each person who, on the day prior to the daya recipient begins to receive transitional child care or transitionalmedicaid, was a member of the recipient's assistancegroup is ineligible to participate in Ohio works first forsixpaymentmonths if a county department determinesthat the recipient terminated therecipient'semployment.

(C) No assistance group member shalllose or be denied eligibility to participate in Ohio worksfirstpursuant to division (B) ofthis section if the termination of employment was because an assistancegroup member or recipient of transitional child care or transitionalmedicaid secured comparable or better employment or the county departmentofjob and family services certifies that thememberor recipient terminated the employmentwith just cause.

(1) Discrimination by an employer based on age, race,sex, color, handicap, religious beliefs, or national origin;

(2) Work demands or conditions that render continuedemployment unreasonable, such as working without being paid onschedule;

(b) The work is at a site subject to a strike orlockout, unless the strike has been enjoined under section 208of the "Labor-ManagementRelations Act," 61 Stat. 155 (1947), 29U.S.C.A.178, as amended, an injunction has been issued under section10 of the "Railway Labor Act," 44 Stat.586 (1926), 45 U.S.C.A.160, as amended, or an injunction has been issued under section 4117.16of the Revised Code;

(d) The member or recipient is physically ormentally unfit to perform the employment, as documented bymedical evidence or by reliable information from othersources.

(4) Documented illness of themember or recipient or of another assistancegroup memberof the member or recipient requiring the presence of the member orrecipient;

(6) Lack of adequate child care for children of themember or recipient who are under six years ofage.

(1) "Equivalent of a high school diploma" and "good cause" have the meanings established in rules adopted under section 5107.05 of the Revised Code.

~~(2) "Teen"~~ (3) "Participating teen" means an individual to whom all of the following apply:

(b) The individual is under age eighteen or is age eighteen and in school and is a natural or adoptive parent or is pregnant;

~~(3)~~(4) "School" means an educational program that is designedto lead to the attainment of a high school diploma or theequivalent of a high school diploma.

(B) The director of job andfamily services may ~~adopt rules undersection 5107.05 of the Revised Code, to the extent thatsuch rulesare consistent with federal law, to do all of the following:~~

~~(1) Define "good cause" and "the equivalent of a highschool diploma" for the purposes of this section;~~

~~(2) Conduct~~ conduct a program titled the "LEAP program" ~~and establish requirementsgoverningthe program~~ in accordance with rules adopted under section 5107.05 of the Revised Code. The purpose of the LEAP program is to encourageteens to complete school.

~~(3) Require every~~ Every participating teen ~~who is subject to LEAP programrequirements to~~ shall attend school in accordance with the requirementsgoverning the LEAP program unless the participating teen shows good cause for notattending school. The department shall provide, in addition tothe cash assistance payment provided under Ohio worksfirst,an incentive payment, in an amount determined by the department,to every participating teen who ~~is participating in the LEAP program and~~attends school in accordance with the requirements governing the LEAPprogram. In addition to the incentive payment, the department may provide other incentives to participating teens who attend school in accordance with the LEAP program's requirements. The department shall reduce the cash assistancepayment, in anamount determined by the department, under Ohio works first toevery participating teen~~participating in the LEAP program~~ whofails or refuses, without good cause, to meet the LEAP program's requirements ~~governing the program~~.

~~(4) Require every~~ Every participating teen ~~who is subject to LEAP programrequirements to~~ shall enter into a written agreement with the county department ofjob and family services that ~~provides~~ specifies all of thefollowing:

~~(a)~~(1) The participating teen, to be eligible to receive the incentivepayment and other incentives, if any, under ~~division (B)(3) of~~ this section, must meet the requirements of the LEAP program.

~~(b)~~(2) The ~~county department will provide the~~ incentivepayment ~~to the teen~~ and other incentives, if any, will be provided if the participating teen meets the requirements of the LEAP program.

~~(c)~~(3) The ~~county department will reduce the~~ participating teen's cash assistancepayment under Ohio worksfirst will be reduced if the participating teen fails orrefuses without good cause to attend school in accordance with the requirementsgoverning the LEAP program.

(C) A minor head of household who is participating in the LEAP programshall be considered to be participating in a work activityforthe purpose of sections 5107.40 to5107.69 of the Revised Code. However, the minor head of household is notsubject to therequirements or sanctions ofthose sections.

(D) Subject to the availability of funds, county departments of job and family services shall provide for ~~LEAP participants~~ participating teens to receive support services the county department determines to be necessary for LEAP participation. Support services may include publicly funded child care under Chapter 5104. of the Revised Code, transportation, and other services.

Sec. 5107.301. For the purpose of encouraging individuals who have successfully completed the requirements of the LEAP program to enroll in post-secondary education, the director of job and family services may provide an award to such individuals who enroll in post-secondary education. If provided, the award shall be provided in accordance with rules adopted under section 5107.05 of the Revised Code.

Sec. 5107.58. Inaccordance with a federal waiver granted bythe UnitedStates secretary of health and human services pursuantto a requestmade under former section 5101.09 of the RevisedCode, county departments ofjob and family services may establishand administer as awork activity for minor headsof householdsand adults participating inOhio works first an education programunder which the participant is enrolled full-time inpost-secondary educationleading to vocationat a stateinstitution of higher education, as defined in section3345.031 ofthe RevisedCode; a private nonprofit college oruniversity thatpossesses a certificate of authorization issued by theOhio boardof regents pursuant toChapter 1713. of theRevised Code,or isexempted by division (E) of section1713.02 of the RevisedCodefrom the requirement of a certificate; aschool that holds acertificate of registration and program authorizationissued bythe state board ofcareer collegesand schools underChapter3332. of theRevised Code;a privateinstitution exempt fromregulation under Chapter 3332. of theRevised Code as prescribedin section 3333.046 of the RevisedCode; or aschool that hasentered into a contract with the countydepartmentofjob andfamily services. The participant shall makereasonableefforts,asdetermined by the county department, toobtain a loan,scholarship, grant, orother assistance to pay forthetuition,including a federal Pell grantunder 20U.S.C.A.1070a ~~and~~, anOhioinstructional grant undersection 3333.12 of theRevised Code, and an Ohio college opportunity grant under section 3333.122 of the Revised Code. Ifthe participant has made reasonable efforts butisunable toobtain sufficient assistance to pay the tuition theprogram maypay the tuition. On or after October 1, 1998, thecountydepartmentmay enter into aloan agreement with theparticipant topay the tuition. The total period forwhichtuition is paid andloans made shall not exceed two years. Ifthe participant,pursuant to division(B)(3) of section 5107.43 ofthe RevisedCode, volunteers to participatein the educationprogram for morehours each week than theparticipant is assignedto the program,the program may pay or the countydepartment mayloan thecost ofthe tuition for the additional voluntary hours aswellas the costof the tuition for the assigned number of hours.The participantmay receive, for not more thanthree years,support services,including publicly funded child care underChapter 5104. ofthe Revised Code and transportation, thattheparticipant needs toparticipate in the program. To receivesupport services in thethird year, the participant must be, asdetermined by theeducational institution in which the participantis enrolled, ingood standing with the institution.

A county department that provides loans under this sectionshall establishprocedures governing loan application for andapproval and administration ofloans granted pursuant to thissection.

(A) "Administrative fee" means the amount specified in rules adopted under division (G) of section 5110.35 of the Revised Code.

(B) "Children's health insurance program" means the children's health insurance program part I and part II established under sections 5101.50 to 5101.5110 of the Revised Code.

~~(D)~~ "Medicaid" means the medical assistance program established under Chapter 5111. of the Revised Code.

~~(E)~~(D) "National drug code number" means the number registered for a drug pursuant to the listing system established by the United States food and drug administration under the "Drug Listing Act of 1972," 86 Stat. 559, 21 U.S.C. 360, as amended.

~~(F)~~(E) "Ohio's best Rx program administrator" means the entity, if any, the department of job and family services contracts with pursuant to section 5110.10 of the Revised Code to perform administrative functions of the Ohio's best Rx program and to offer the mail order system through which Ohio's best Rx program participants may obtain drugs by mail.

~~(G)~~(F) "Ohio's best Rx program applicant" or "applicant" means an individual who signs an application for the Ohio's best Rx program and submits it to the department of job and family services, or the Ohio's best Rx program administrator, for a determination of eligibility for the program.

~~(H)~~(G) "Ohio's best Rx program participant" or "participant" means an individual determined eligible for the Ohio's best Rx program and included under a valid Ohio's best Rx program enrollment card.

~~(I)~~(H) "Ohio's best Rx program price" means the price a participating terminal distributor is to charge an Ohio's best Rx program participant for a drug included in the Ohio's best Rx program as determined under section 5110.14 of the Revised Code. "Ohio's best Rx program price" does not include either of the following:

(1) The amount of the professional fee, if any, the participating terminal distributor adds to the Ohio's best Rx program price pursuant to an agreement under section 5110.12 of the Revised Code;

(2) The amount of the administrative fee, if any, the department of job and family services reports to the participating terminal distributor under section 5110.29 of the Revised Code.

~~(J)~~(I) "Participating manufacturer" means a drug manufacturer participating in the Ohio's best Rx program pursuant to a rebate agreement.

~~(K)~~(J) "Participating terminal distributor" means a terminal distributor of dangerous drugs participating in the Ohio's best Rx program pursuant to an agreement entered into with the department of job and family services under section 5110.12 of the Revised Code.

~~(L)~~(K) "Per unit price," with regard to a state health benefit plan or state retirement system health benefit plan, means the total amount paid to a terminal distributor of dangerous drugs under a state health benefit plan or state retirement system health benefit plan for one unit of a drug covered by the plan, after the plan discounts or otherwise reduces the amount to be paid to the terminal distributor. "Per unit price" includes both of the following:

(1) The amount that the state health benefit plan or state retirement system health benefit plan, or other government entity or person authorized to make the payment on behalf of the plan, pays to the terminal distributor of dangerous drugs;

(2) The amount that the beneficiary of the state health benefit plan or state retirement system health benefit plan pays to the terminal distributor of dangerous drugs in the form of a copayment, coinsurance, or other cost-sharing charge.

~~(M)~~(L) "Per unit rebate," with regard to a state health benefit plan or state retirement system health benefit plan, means all rebates, discounts, formulary fees, administrative fees, and other allowances a drug manufacturer pays to the plan, or other government entity or person authorized to receive all or part of such payments, for a drug during a calendar year, divided by the total number of units of that drug dispensed under the plan during the same calendar year.

~~(N)~~(M) "Rebate administration percentage" means the percentage specified in rules adopted under division (K) of section 5110.35 of the Revised Code.

~~(O)~~(N) "Rebate agreement" means an agreement under section 5110.21 of the Revised Code between the department of job and family services and a drug manufacturer.

~~(P)~~(O) "State health benefit plan" means a program of health care benefits offered through the Ohio med preferred provider organization, or a successor entity selected by the state, to which either of the following apply:

(1) It is provided by a collective bargaining agreement authorized by division (A)(4) of section 4117.03 of the Revised Code.

(2) It is offered by the department of administrative services to state employees in accordance with section 124.81 or 124.82 of the Revised Code.

~~(Q)~~(P) "State retirement system" means all of the following: the public employees retirement system, state teachers retirement system, school employees retirement system, Ohio police and fire pension fund, and state highway patrol retirement system.

~~(R)~~(Q) "State retirement system health benefit plan" means a plan of health care benefits offered by a state retirement system under section 145.58, 742.45, 3307.39, 3309.69, or 5505.28 of the Revised Code.

~~(S)~~(R) "Terminal distributor of dangerous drugs" has the same meaning as in section 4729.01 of the Revised Code.

~~(T)~~(S) "Third-party payer" has the same meaning as in section 3901.38 of the Revised Code.

~~(U)~~(T) "Trade secret" has the same meaning as in section 1333.61 of the Revised Code.

~~(V)~~(U) "Usual and customary charge" means the amount a participating terminal distributor or the Ohio's best Rx program administrator charges for a drug included in the program to an individual who does not receive a discounted price for the drug pursuant to any drug discount program, including the Ohio's best Rx program, a prescription drug discount card program established under section 173.061 of the Revised Code, or a pharmacy assistance program established by any person or government entity, and for whom no third-party payer or program funded in whole or part with state or federal funds is responsible for all or part of the cost of the drug the distributor dispenses to the individual.

Sec. 5110.05. (A) To be eligible for the Ohio's best Rx program, an individual must meet all of the following requirements at the time of application or reapplication for the program:

(2) Have family income, as determined under rules adopted pursuant to section 5110.35 of the Revised Code, that does not exceed two hundred fifty per cent of the federal poverty guidelines, as revised annually by the United States department of health and human services in accordance with section 673(2) of the "Omnibus Budget Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as amended, or be sixty years of age or older;

(3) Not have outpatient prescription drug coverage paid for in whole or in part by any of the following:

~~(e)~~ Another health plan or pharmacy assistance program that uses state or federal funds to pay part or all of the cost of the individual's outpatient prescription drugs, other than a prescription drug discount card program established under section 173.061 of the Revised Code.

(4) Not have had outpatient prescription drug coverage specified in division (A)(3) of this section during any of the four months preceding the month in which the application or reapplication for the Ohio's best Rx program is made, unless any of the following applies:

(b) The third-party payer that paid all or part of the coverage filed for bankruptcy under federal bankruptcy laws.

(c) The individual is no longer eligible for coverage provided through a retirement plan subject to protection under the "Employee Retirement Income Security Act of 1974," 88 Stat. 832, 29 U.S.C. 1001, as amended.

(d) The individual is no longer eligible for the medicaid program, or children's health insurance program~~, or disability medical assistance program~~.

(B) Application and annual reapplication for the Ohio's best Rx program shall be made in accordance with rules adopted under section 5110.35 of the Revised Code on a form prescribed in those rules. An individual may apply or reapply on behalf of the individual and the individual's spouse and children. The guardian or custodian of an individual may apply or reapply on behalf of the individual.

Sec. 5110.352. As used in this section, "medicaid dispensing fee" means the dispensing fee established under section ~~5111.08~~ 5111.071 of the Revised Code for the medicaid program.

In adopting a rule under division (F) of section 5110.35 of the Revised Code increasing the maximum amount of the professional fee participating terminal distributors may charge Ohio's best Rx program participants under section 5110.12 of the Revised Code and the Ohio's best Rx program administrator may charge under a contract entered into under section 5110.10 of the Revised Code, the department of job and family services shall review the amount of the professional fee once a year or, at the department's discretion, at more frequent intervals and shall not increase the professional fee to an amount exceeding the medicaid dispensing fee.

A participating terminal distributor and the Ohio's best Rx program administrator may charge a maximum three dollar professional fee regardless of whether the medicaid dispensing fee for that drug is less than that amount. The department, however, may not adopt a rule increasing the maximum professional fee for that drug until the medicaid dispensing fee for that drug exceeds that amount.

Sec. 5110.39. Not later than ~~April 1, 2005~~ the first day of March of each year, the department of job and family services shall do all of the following:

(A) Create a list of the twenty-five drugs most often dispensed to Ohio's best Rx program participants under the program, using data from the most recent six-month period for which the data is available;

(B) Determine the average amount that participating terminal distributors charge, on a date selected by the department, participants for each drug included on the list created under division (A) of this section;

(C) Determine, for the date selected for division (B) of this section, the average usual and customary charge of participating terminal distributors for each drug included on the list created under division (A) of this section;

(D) By comparing the average charges determined under divisions (B) and (C) of this section, determine the average percentage savings in the amount participating terminal distributors charge Ohio's best Rx program participants for each drug included on the list created under division (A) of this section.

(1) "Intermediate care facility for the mentally retarded" has the same meaning as in section 5111.20 of the Revised Code.

(2) "Nursing facility" ~~means a facility defined as anursing facility under Sec. 1919 of the "Social Security Act," 49Stat. 620 (1935), 42 U.S.C. 1396r, as amended~~ has the same meaning as in section 5111.20 of the Revised Code.

~~(2)~~(3) "Institutionalized individual" means an individual whois a patient in a nursing facility or who receives home andcommunity-based services under a federal waiver granted thedepartment of job and family services under 42 U.S.C.1396a(10)(A)(ii)(VI).

(B) Subject to this section, the director ofjob and family services shall, pursuant to section 111.15of the Revised Code,adopt rules establishing eligibility requirements for the ~~medicalassistance~~ medicaid program and defining, consistent with federal law, theterm "resources" as used in this section.

(C) In determining eligibility for ~~medical assistance~~ the medicaid program, the following shall apply with respect to real property used by an aged, blind or disabled applicant or recipient as a homestead or principal place of residence:

(1) The value of ~~real~~ theproperty ~~of aged, blind, or disabled personsusedas a homestead by such persons~~ shall be the maximum allowed underTitle XVI of the "Social Security Act."," 86 Stat. 1329 (1972), 42 U.S.C. 1381;

(2) Except as provided in division (C)(3) of this section, the department of job and family services may consider the property to not be the homestead or principal place of residence of the applicant or recipient if the applicant or recipient resides in a nursing facility, intermediate care facility for the mentally retarded, or other medical institution for thirteen months or longer.

(3) Division (C)(2) of this section does not apply if any of the following individuals reside in the applicant's or recipient's real property used as a homestead or principal place of residence:

(b) A son or daughter of the applicant or recipient, if the son or daughter is under twenty-one years of age or blind or disabled in accordance with rules adopted by the director of job and family services;

(c) A son or daughter of the applicant or recipient, if the son or daughter is financially dependent on the applicant or recipient for housing in accordance with rules adopted by the director of job and family services;

(d) A sibling of the applicant or recipient, if the sibling has a verified equity and ownership interest in the real property and has resided in the real property for at least one year immediately before the date the applicant or recipient was admitted to the nursing facility, intermediate care facility for the mentally retarded, or other medical institution.

(D) Except as provided in division (G) of thissection,no person is eligible for ~~medical assistance~~ the medicaid program if on orprior to December 31, 1989, the person has transferred realor personal property for the purpose of securing ~~medical assistance undersection 5111.01 of the Revised Code~~ medicaid eligibility and the transfer occurredduring the two years preceding the person's application. Inorder to secure compliance with this division, the director of job andfamily servicesshall require all applicants for ~~assistance~~ medicaid to submittrue and correct copies of any federal income or gift tax form orschedule filed, singly or jointly, by the applicant during thepreceding five taxable years. Such copies, and the informationdisclosed thereon, shall be used solely for the purpose ofdetermining the probability of whether the applicant hastransferred assets in violation of this division. The directorshall provide for the confidentiality and return of any copies offorms or schedules submitted under this division. Where suchcopies reveal the probability that an applicant has transferredassets in violation of this division, a presumption arises thatthe applicant has transferred assets in violation of thisdivision, and the director shall deny the application until theapplicant submits a true and accurate expenditure statement tothe director that shows the applicant did not violate thisdivision. The director of job and family services shall adopt rules toimplement this provision.

(E)(1) Except as provided in ~~division~~ divisions (E)(2) and (G) of thissection, an institutionalized individual who is otherwiseeligible for ~~medical assistance~~ medicaid shall be ineligible for nursingfacility services or services provided under a home andcommunity-based waiver for a period specified in rules adoptedunder division (E)~~(2)~~(3) of this section if the institutionalizedindividual or individual's spouse, on or after January 1, 1990, transfers resources for less thanfair market value atany time during or after ~~a period of time, as specified in rulesadopted under division (E)(2) of this section,~~ the five-year period immediately priorto either of the following:

(a) The date the individual becomes an institutionalizedindividual if the individual is eligible for ~~medicalassistance~~ medicaid on that date;

(b) The date the individual applies for ~~medical assistance~~ medicaidwhile an institutionalized individual.

(2) The director shall apply to the United States secretary of health and human services for a waiver of federal law governing the medicaid program as necessary for the implementation of the five-year look-back period provided for by division (E)(1) of this section. If a waiver is not approved, the look-back period shall be the period of time specified in 42 U.S.C. 1396p(c).

(3) The director shall adopt rules specifying, forthepurpose of division (E)(1) of this section, the ~~period of timepreceding institutionalization or application for medicalassistance during which transfers of assets for less than fairmarket value are prohibited and the~~ length of the ~~resulting~~period of ineligibility due to transfers of resources for less than fair market value on or after the look-back date. The period of ineligibility shall beginwith the month in which the resources were transferred. Therules shall be consistent with Title XIX of the "Social SecurityAct.," 79 Stat. 286 (1965), 42 U.S.C. 1396. The department shall allow exceptions to the period ofineligibility to the extent that exceptions are permitted by thattitle. An exception based on undue hardship to theinstitutionalized individual shall be allowed only so long as theindividual cooperates with the department or the county department ofjob and familyservices in securing the return oftransferred resources.

~~(3)~~(4) To secure compliance with this division, thedepartment may require applicants for and recipients of ~~medicalassistance~~ medicaid, as a condition of eligibility, to providedocumentation of their income and resources up to five yearsprior to the ~~time of application~~ date the individual becomes an institutionalized individual if the individual is eligible for medicaid on that date or the date the individual applies for medicaid while an institutionalized individual. Documentation may include, butis not limited to, tax returns, records from financialinstitutions, and real property records.

(F) The director shall, by rule adopted inaccordancewith section 111.15 of the Revised Code, establish standardsconsistent with federal law for allocating income and resourcesas income and resources of the spouse, children, parents, orstepparents of a recipient of or applicant for ~~medicalassistance~~ medicaid. Notwithstanding any provision of state law,including statutes, administrative rules, common law, and courtrules, regarding real or personal property or domestic relations,the standards established under this division shall be used todetermine eligibility for ~~medical assistance~~ medicaid.

(G) The directormay, by rule adopted in accordance with section 111.15 of theRevisedCode, exempt individuals whoapply for or receive ~~any medical assistance~~ medicaid that may be providedpursuant to division (C) ofsection 5111.01 of the RevisedCode from some or all of therequirements of this section.

Sec. 5111.019. (A) The director of job and familyservicesshall submitto the United States secretary of health and humanservicesanamendment to the state medicaid plan to make anindividual who meets all ofthe following requirements eligiblefor medicaid for theamount of time provided by division (B) ofthis section:

(1) The individual is the parent of a child under nineteenyearsof age and resides with the child;

(2) The individual's family income does not exceed ~~onehundred~~ninety per cent of the federal poverty guidelines;

(4) The individual satisfies all relevant requirementsestablished by rules adopted under division (D) of section 5111.01of the Revised Code.

(B) An individual is eligible to receive medicaid under thissection for a period that does not exceed two years beginning onthe dateon which eligibility is established.

(C) If approved by the United States secretaryof health andhuman services and the director of job and familyservices, thedirectorshall implement the medicaid plan amendment submittedunder thissection not sooner than July 1, 2000. If a federalwaiver isnecessary for the United States secretary to approve theamendment, the director of job and family services shallsubmit awaiver requestto the United States secretary not later thanninety daysafterthe effective date of this section.

Sec. 5111.0112. ~~The~~ (A) Not later than July 1, 2006, the director of job and family servicesshall~~examine instituting~~ institute a copayment program under medicaid. ~~Aspartof the examination, the director shall determine which groupsofmedicaid recipients may be subjected to a copayment requirementunder~~ The copayment program shall establish a copayment requirement for only dental services, vision services, nonemergency emergency department services, and prescription drugs, other than generic drugs, to the extent permitted by federal statutes and regulations. If,oncompletion of the examination, the director determines that itis feasible to institute such a copayment program, the directormay seek approval from the United States secretary of health andhuman services to institute the copayment program. If necessary,the director may seek approval by applying for a waiver of federalstatutes and regulations. If such approval is obtained, the Thedirector shall adopt rules ~~inaccordance with Chapter 119.~~ under section 5111.02 of theRevised Code governing thecopayment program.

(B) The copayment program shall, to the extent permitted by federal law, provide for all of the following with regard to any providers participating in the medicaid program:

(1) No provider shall refuse to provide a service to a medicaid recipient who is unable to pay a required copayment for the service.

(2) Division (B)(1) of this section shall not be considered to do either of the following with regard to a medicaid recipient who is unable to pay a required copayment:

(3) No provider shall waive a medicaid recipient's obligation to pay the provider a copayment.

(4) No provider or drug manufacturer, including the manufacturer's representative, employee, independent contractor, or agent, shall pay any copayment on behalf of a medicaid recipient.

(5) If it is the routine business practice of the provider to refuse service to any individual who owes an outstanding debt to the provider, the provider may consider an unpaid copayment imposed by the copayment program as an outstanding debt and may refuse service to a medicaid recipient who owes the provider an outstanding debt. If the provider intends to refuse service to a medicaid recipient who owes the provider an outstanding debt, the provider shall notify the individual of the provider's intent to refuse services.

Sec. 5111.0114. (A) As used in this section, "dangerous drug" and "manufacturer of dangerous drugs" have the same meaning as in section 4729.01 of the Revised Code.

(B) The director of job and family services may enter into or administer an agreement or cooperative arrangement with other states to create or join a multiple-state prescription drug purchasing program for the purpose of negotiating with manufacturers of dangerous drugs to receive discounts or rebates for dangerous drugs dispensed under the medicaid program.

Sec. ~~5111.023~~ 5111.0115. (A) The department of job and familyservices mayprovide medical assistance under ~~Title XIX of the "SocialSecurity Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as amended, inaddition to such assistance provided under section 5111.01 of theRevised Code~~ the medicaid program, as long as federal funds are provided for suchassistance, to each former participant oftheOhio works first program established underChapter 5107. of the Revised Code who meets all of the followingrequirements:

(1) Is ineligible to participate in Ohio works first solelyas aresult of increased income due to employment;

(2) Is not covered by, and does not have access to,medical insurance coverage through the employer with benefitscomparable to those provided under this section, as determined inaccordance with rules adopted by the director ofjob and family servicesunder division (B) of this section;

(3) Meets any other requirement established by ruleadopted under division (B) of this section.

(B) The director of job andfamily services shall adopt suchrules under Chapter 119. of the Revised Code as are necessary toimplement and administer the medical assistance program underthis section.

(C) A person seeking to participate in a program ofmedical assistance under this section shall apply to the county department ofjob and family services in the county in which theapplicantresides. Theapplication shall be made on a form prescribed bythe department of job and family services andfurnished by thecounty department.

(D) If the county department of job and family servicesdeterminesthat a person is eligible to receive medical assistance underthis section, the department shall provide assistance, to thesame extent and in the same manner as medical assistance isprovided to a person eligible for medical assistance pursuant todivision (A)(1)(a) of section 5111.01of the Revised Code, for no longer than twelve months,beginning the month after the date the participant's eligibility forOhio works first is terminated.

Sec. 5111.02. The director of job and family services shall adopt, and may amend or rescind, rules under Chapter 119. of the Revised Code establishing the amount, duration, and scope of medicaid services. The rules shall be consistent with federal and state law. The rules may be different for different medicaid services. The rules shall establish all of the following:

(A) The conditions under which the medicaid program shall cover and reimburse medicaid services;

(C) The amount of reimbursement or, in lieu of amounts, methods by which amounts are to be determined for each medicaid service;

(D) Procedures for enforcing the rules adopted under this section that provide due process protections, including procedures for corrective action plans for, and imposing financial and administrative sanctions on, persons and government entities that violate the rules.

Sec. ~~5111.02~~ 5111.021. ~~(A)~~ Under the ~~medical assistance~~ medicaid program:

~~(1)~~(A)Except as otherwise permitted by federalstatute orregulation and at the department's discretion,reimbursement bythe department of job and familyservices to amedical providerfor any medical service rendered under theprogram shall notexceed the authorized reimbursement level forthe same serviceunder the medicare program established underTitle XVIII of the"Social Security Act," 49 79 Stat. ~~620~~ 286 (~~1935~~ 1965), 42U.S.C.~~A. 301~~ 1395, asamended.

~~(2)~~(B) Reimbursement for freestanding medical laboratorycharges shall not exceed the customary and usual fee forlaboratory profiles.

~~(3)~~(C) The department may deduct from payments for servicesrendered by a medicaid provider under the ~~medical assistance~~ medicaidprogram any amounts the provider owes the state as the result ofincorrect ~~medical assistance~~ medicaid payments the department has made tothe provider.

~~(4)~~(D) The department may conduct final fiscal audits inaccordance with the applicable requirements set forth in federallaws and regulations and determine any amounts the provider mayowe the state. When conducting final fiscal audits, thedepartment shall consider generally accepted auditing standards,which include the use of statistical sampling.

~~(5)~~(E)The number of days of inpatient hospital care forwhichreimbursement is made on behalf of a medicaid recipient ~~of medicalassistance~~ to a hospital that is not paid under adiagnostic-related-group prospective payment system shall notexceed thirty days during a period beginning on the day of therecipient's admission to the hospital and ending sixty days afterthe termination of that hospital stay, except that the departmentmay make exceptions to this limitation. The limitation does notapply to children participating in the program for medicallyhandicapped children established under section 3701.023 of theRevised Code.

(B) The director of job and family services may adopt,amend, orrescind rules under Chapter 119. of the Revised Codeestablishingthe amount, duration, and scope of medical servicesto beincluded in the medical assistance program. Such rulesshallestablish the conditions under which services are coveredandreimbursed, the method of reimbursement applicable to eachcovered service, and the amount of reimbursement or, in lieu ofsuch amounts, methods by which such amounts are to be determinedfor each covered service. Any rules that pertain to nursingfacilities or intermediate care facilities for the mentallyretarded shall be consistent with sections 5111.20 to 5111.33 ofthe Revised Code.

~~(C)~~(F) The division of any reimbursement between acollaboratingphysician or podiatrist and a clinical nursespecialist, certifiednurse-midwife, or certified nursepractitioner for services performed by thenurse shall bedetermined and agreed on by the nurse and collaboratingphysicianor podiatrist. In no case shall reimbursement exceed the paymentthat the physician or podiatrist would have received had thephysician orpodiatrist provided the entireservice.

Sec. ~~5111.021~~ 5111.022. Under the ~~medical assistance~~ medicaid program, anyamount determined to be owed the state by a final fiscal auditconducted pursuant to division ~~(A)(4)~~(D) of section ~~5111.02~~ 5111.021 of theRevised Code, upon the issuance of an adjudication order pursuantto Chapter 119. of the Revised Code that contains a finding thatthere is a preponderance of the evidence that the provider willliquidate assets or file bankruptcy in order to prevent paymentof the amount determined to be owed the state, becomes a lienupon the real and personal property of the provider. Uponfailure of the provider to pay the amount to the state, thedirector of job and family services shall file notice of the lien, forwhich there shall be no charge, in the office of the countyrecorder of the county in which it is ascertained that theprovider owns real or personal property. The director shallnotify the provider by mail of the lien, but absence of proofthat the notice was sent does not affect the validity of thelien. The lien is not valid as against the claim of anymortgagee, pledgee, purchaser, judgment creditor, or otherlienholder of record at the time the notice is filed.

If the provider acquires real or personal property afternotice of the lien is filed, the lien shall not be valid asagainst the claim of any mortgagee, pledgee, subsequent bona fidepurchaser for value, judgment creditor, or other lienholder ofrecord to such after-acquired property unless the notice of lienis refiled after the property is acquired by the provider andbefore the competing lien attaches to the after-acquired propertyor before the conveyance to the subsequent bona fide purchaserfor value.

When the amount has been paid, the provider may record withthe recorder notice of the payment. For recording such notice ofpayment, the recorder shall charge and receive from the providera base fee of one dollar for services and a housing trust fund fee of one dollar pursuant to section 317.36 of the Revised Code.

In the event of a distribution of a provider's assetspursuant to an order of any court under the law of this stateincluding any receivership, assignment for benefit of creditors,adjudicated insolvency, or similar proceedings, amounts then orthereafter due the state under this chapter have the samepriority as provided by law for the payment of taxes due thestate and shall be paid out of the receivership trust fund orother such trust fund in the same manner as provided for claimsfor unpaid taxes due the state.

If the attorney general finds after investigation that anyamount due the state under this chapter is uncollectable, inwhole or in part, the attorney general shall recommend to thedirector the cancellation of all or part of the claim. The director maythereupon effect the cancellation.

(1) "Community mental health facility" means a community mental health facility that has a quality assurance program accredited by the joint commission on accreditation of healthcare organizations or is certified by the department of mental health or department of job and family services.

(2) "Mental health professional" means a person qualified to work with mentally ill persons under the standards established by the director of mental health pursuant to section 5119.611 of the Revised Code.

(B) The state medicaid plan shall include provision of thefollowing mental health services when provided by community mental health facilities:

(1) Outpatient mental health services, including, but notlimited to, preventive, diagnostic, therapeutic, rehabilitative,and palliative interventions rendered to individuals in anindividual or group setting by a mental health professional inaccordance with a plan of treatment appropriately established,monitored, and reviewed;

(2) Partial-hospitalization mental health services ofthreeto fourteen hours per service day, rendered by personsdirectlysupervised by a mental health professional;

(3) Unscheduled, emergency mental health services of akindordinarily provided to persons in crisis when rendered bypersonssupervised by a mental health professional;

(4) Subject to receipt of federal approval, assertive community treatment and intensive home-based mental health services.

(C) The comprehensive annual plan shall certify theavailability of sufficient unencumbered community mental healthstate subsidy and local funds to match federal medicaid reimbursementfunds earned by community mental health facilities.

(D) The department of job and family servicesshallenterinto a separate contract with the department of mentalhealth under section 5111.91 of the Revised Code with regard to the component of the medicaid program provided for by this section.

(E) Not later than July 21, ~~2004~~ 2006, the department of job and family services shall request federal approval to provide assertive community treatment and intensive home-based mental health services under medicaid pursuant to this section.

(F) On receipt of federal approval sought under division (E) of this section, the director of job and family services shall adopt rules in accordance with Chapter 119. of the Revised Code for assertive community treatment and intensive home-based mental health services provided under medicaid pursuant to this section. The director shall consult with the department of mental health in adopting the rules.

Sec. 5111.025. (A) In rules adopted under section 5111.02 of the Revised Code, the director of job and family services shall modify the manner or establish a new manner in which the following are paid under medicaid:

(1) Community mental health facilities for providing mental health services included in the state medicaid plan pursuant to section ~~5111.022~~ 5111.023 of the Revised Code;

(2) Providers of alcohol and drug addiction services for providing alcohol and drug addiction services included in the medicaid program pursuant to rules adopted under section 5111.02 of the Revised Code.

(B)The director's authority to modify the manner, or to establish a new manner, for medicaid to pay for the services specified in division (A) of this section is not limited by any rules adopted under section 5111.02 or 5119.61 of the Revised Code that are in effect on ~~the effective date of this section~~ June 26, 2003, and govern the way medicaid pays for those services. This is the case regardless of what state agency adopted the rules.

Sec. 5111.027. If the medicaid program provides prescription drug services to medicaid recipients, the program shall not provide reimbursement for prescription drugs for treatment of erectile dysfunction.

Sec. 5111.042. The departments of mental retardation anddevelopmental disabilities and job and family services mayapprove, reduce, deny, or terminate a service included in theindividualized service plan developed for a medicaid recipientwith mental retardation or other developmental disability who iseligible for medicaid case management services. ~~The departmentsshall consider the recommendations a county board of mentalretardation and developmental disabilities makes under division(B)(1) of section 5126.055 of the Revised Code.~~ If eitherdepartment approves, reduces, denies, or terminates a service,thatdepartment shall timely notify the medicaid recipient thattherecipient may request a hearing under section 5101.35 of theRevised Code.

Sec. 5111.06. (A)(1) As used in this section and in sections 5111.061 and 5111.062 of the Revised Code:

(a)"Provider" means any person, institution, or entitythatfurnishes medicaid services under a provider agreement withthedepartment of job and family services pursuant to Title XIX of the"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 301, asamended.

(b)"Party" has the same meaning as in division (G) ofsection 119.01 of the Revised Code.

(c)"Adjudication" has the same meaning as in division (D)of section 119.01 of the Revised Code.

(2) This section does not apply to any action taken by thedepartment of job and family services under sections 5111.35 to5111.62ofthe Revised Code.

(B) Except as provided in division (D) of this section and section 5111.914 of the Revised Code,thedepartment shall do either of the following by issuing anorderpursuant to an adjudication conducted in accordance withChapter119. of the Revised Code:

(1) Enter into or refuse to enter into a provideragreementwith a provider, or suspend, terminate, renew, orrefuse to renewan existing provider agreement with a provider;

(C) Any party who is adversely affected by the issuance ofan adjudication order under division (B) of this section mayappeal to the court of common pleas of Franklin county inaccordance with section 119.12 of the Revised Code.

(D) The department is not required to comply with division(B)(1) of this section whenever any of the following occur:

(1) The terms of a provider agreement require the providerto have a license, permit, or certificate issued by an official,board, commission, department, division, bureau, or other agencyof state government other than the department of job and familyservices,and the license, permit, or certificate has been deniedorrevoked.

(2) The provider agreement is denied, terminated, or notrenewed pursuant to division (C) or (E) of section 5111.03 of theRevised Code;

(3) The provider agreement is denied, terminated, or notrenewed due to the provider's termination, suspension, orexclusion from the medicare program established under Title XVIIIof the"Social Security Act," and the termination, suspension, orexclusion is binding on the provider's participation in themedicaid program;

(4) The provider agreement is denied, terminated, or notrenewed due to the provider's pleading guilty to or beingconvicted of a criminal activity materially related to either themedicare or medicaid program;

(5) The provider agreement is denied, terminated, orsuspended as a result of action by the United States departmentofhealth and human services and that action is binding on theprovider's participation in the medicaid program;

(6) The provider agreement is terminated or not renewed because the provider has not billed or otherwise submitted a medicaid claim to the department for two years or longer, and the department has determined that the provider has moved from the address on record with the department without leaving an active forwarding address with the department.

In the case of a provider described in division (D)(6) of this section, the department may terminate or not renew the provider agreement by sending a notice explaining the department's proposed action to the address on record with the department. The notice may be sent by regular mail.

(E) The department may withhold payments for servicesrendered by a medicaid provider under the medical assistanceprogram during the pendency of proceedings initiated underdivision (B)(1) of this section. If the proceedings areinitiatedunder division (B)(2) of this section, the departmentmay withholdpayments only to the extent that they equal amountsdetermined ina final fiscal audit as being due the state. Thisdivision doesnot apply if the department fails to comply withsection 119.07 ofthe Revised Code, requests a continuance of thehearing, or doesnot issue a decision within thirty days afterthe hearing iscompleted. This division does not apply tonursing facilities andintermediate care facilities for thementally retarded as defined in section 5111.20 of theRevised Code.

Sec. 5111.061. (A) The department of job and family services may recover a medicaid payment or portion of a payment made to a provider to which the provider is not entitled. The recovery may occur at any time during the five-year period immediately following the end of the state fiscal year in which the overpayment was made.

(B) Among the overpayments that may be recovered under this section are the following:

(2) Payment for a day of service at a full per diem rate that should have been paid at a percentage of the full per diem rate;

(3) Payment for a service, or day of service, that was paid by, or partially paid by, a third-party, as defined in section 5101.571 of the Revised Code, and the third-party's payment or partial payment was not offset against the amount paid by the medicaid program to reduce or eliminate the amount that was paid by the medicaid program;

(4) Payment when a medicaid recipient's responsibility for payment was understated and resulted in an overpayment to the provider.

(C) During the period specified in division (A) of this section, the department may recover an overpayment under this section prior to or after any of the following:

(1) Adjudication of a final fiscal audit that section 5111.06 of the Revised Code requires to be conducted in accordance with Chapter 119. of the Revised Code;

(2) Adjudication of a finding under any other provision of this chapter or the rules adopted under it;

(3) Expiration of the time to issue a final fiscal audit that section 5111.06 of the Revised Code requires to be conducted in accordance with Chapter 119. of the Revised Code;

(4) Expiration of the time to issue a finding under any other provision of this chapter or the rules adopted under it.

(D)(1) Subject to division (D)(2) of this section, the recovery of an overpayment under this section does not preclude the department from subsequently doing the following:

(a) Issuing a final fiscal audit in accordance with Chapter 119. of the Revised Code, as required under section 5111.06 of the Revised Code;

(b) Issuing a finding under any other provision of this chapter or the rules adopted under it.

(2) A final fiscal audit or finding issued subsequent to the recovery of an overpayment under this section shall be reduced by the amount of the prior recovery, as appropriate.

(E) Nothing in this section limits the department's authority to recover overpayments pursuant to any other provision of the Revised Code.

Sec. 5111.062. In any action taken by the department of job and family services under section 5111.06 or 5111.061 of the Revised Code or any other provision of this chapter that requires the department to give notice of an opportunity for a hearing in accordance with Chapter 119. of the Revised Code, if the department gives notice of the opportunity for a hearing but the provider or other entity subject to the notice does not request a hearing or timely request a hearing in accordance with section 119.07 of the Revised Code, the department is not required to hold a hearing. The director of job and family service may proceed by issuing a final adjudication order in accordance with Chapter 119. of the Revised Code.

Sec. 5111.082. The director of job and family services, inrules adopted under section 5111.02 of the Revised Code, mayestablish and implement a supplemental drugrebate program underwhich drug manufacturers may be required toprovide the departmentof job and family services a supplementalrebate as a condition ofhaving the drug manufacturers' drugproducts covered by themedicaid program without prior approval. The department may receive a supplemental rebate negotiated under the program for a drug dispensed to a medicaid recipient pursuant to a prescription or a drug purchased by a medicaid provider for administration to a medicaid recipient in the provider's primary place of business.If necessary, thedirector may apply to the United States secretary of health andhuman services for a waiver of federal statutes and regulations toestablish the supplemental drug rebate program.

If the director establishes a supplemental drug rebateprogram,the director shall consult with drug manufacturersregarding theestablishment and implementation of the program.

If the director establishes a supplemental drug rebateprogram, the director shall exempt from the program all of adrugmanufacturer's drug products that have been approved by theUnitedStates food and drug administration for the treatment ofeither ofthe following:

~~(A) Mental illness, as defined in section 5122.01 of theRevised Code, including schizophrenia, majordepressive disorder,and bipolar disorder;~~

(1) "State maximum allowable cost" means the per unit amount the department of job and family services reimburses a terminal distributor of dangerous drugs for a prescription drug included in the state maximum allowable cost program established under division (B) of this section. "State maximum allowable cost" excludes dispensing fees and copayments, coinsurance, or other cost-sharing charges, if any.

(2) "Terminal distributor of dangerous drugs" has the same meaning as in section 4729.01 of the Revised Code.

(B) The director of job and family services shall establish a state maximum allowable cost program for purposes of managing reimbursement to terminal distributors of dangerous drugs for prescription drugs identified by the director pursuant to this division. The director shall do all of the following with respect to the program:

(1) Identify and create a list of prescription drugs to be included in the program.

(2) Update the list of prescription drugs described in division (B)(1) of this section on a weekly basis.

(3) Review the state maximum allowable cost for each drug included on the list described in division (B)(1) of this section on a weekly basis.

Sec. 5111.084. (A) As used in this section, "licensed health professional authorized to prescribe drugs" has the same meaning as in section 4729.01 of the Revised Code.

(B) The director of job and family services may establish an e-prescribing system for the medicaid program under which a medicaid provider who is a licensed health professional authorized to prescribe drugs shall use an electronic system to prescribe a drug for a medicaid recipient when required to do so by division (C) of this section. The e-prescribing system shall eliminate the need for such medicaid providers to make prescriptions for medicaid recipients by handwriting or telephone. The e-prescribing system also shall provide such medicaid providers with an up-to-date, clinically relevant drug information database and a system of electronically monitoring medicaid recipients' medical history, drug regimen compliance, and fraud and abuse.

(C) If the director establishes an e-prescribing system under division (B) of this section, the director shall do all of the following:

(1) Require that a medicaid provider who is a licensed health professional authorized to prescribe drugs use the e-prescribing system during a fiscal year if the medicaid provider was one of the ten medicaid providers who, during the calendar year that precedes that fiscal year, issued the most prescriptions for medicaid recipients receiving hospital services;

(2) Before the beginning of each fiscal year, determine the ten medicaid providers that issued the most prescriptions for medicaid recipients receiving hospital services during the calendar year that precedes the upcoming fiscal year and notify those medicaid providers that they must use the e-prescribing system for the upcoming fiscal year;

(3) Seek the most federal financial participation available for the development and implementation of the e-prescribing system.

Sec. ~~5111.81~~ 5111.085. There is hereby established the pharmacyandtherapeutics committee of the department of job and familyservices. Thecommitteeshall consist of ~~eight~~ nine members and shallbe appointed by the directorof job and family services. Themembership of thecommittee shall include: ~~two~~ threepharmacistslicensed under Chapter 4729. of the Revised Code; two doctors ofmedicine and two doctors of osteopathy licensed under Chapter4731. of theRevised Code; a registered nurse licensed underChapter 4723. of the RevisedCode; and a pharmacologist who has adoctoral degree. The committee shallelect one of its members aschairperson.

Sec. 5111.10. The director of job and family services may conduct reviews of the medicaid program. The reviews may include physical inspections of records and sites where medicaid-funded services are provided and interviews of providers and recipients of the services. If the director determines pursuant to a review that a person or government entity has violated a rule governing the medicaid program, the director may establish a corrective action plan for the violator and impose fiscal, administrative, or both types of sanctions on the violator in accordance with rules governing the medicaid program. Such action to be taken against a responsible entity, as defined in section 5101.24 of the Revised Code, shall be taken in accordance with that section.

Sec. 5111.11. (A) As used in this section~~, "estate" means all~~ and section 5111.111 of the Revised Code:

(a) All real and personal property and other assets to beadministeredunder Title XXI of the Revised Code and property that would be administeredunder that title if not for section 2113.03 or 2113.031 of theRevised Code;

(b) Any other real and personal property and other assets in which an individual had any legal title or interest at the time of death (to the extent of the interest), including assets conveyed to a survivor, heir, or assign of the individual through joint tenancy, tenancy in common, survivorship, life estate, living trust, or other arrangement.

(2) "Institution" means a nursing facility, intermediate care facility for the mentally retarded, or a medical institution.

(3) "Intermediate care facility for the mentally retarded" and "nursing facility" have the same meanings as in section 5111.20 of the Revised Code.

(4) "Permanently institutionalized individual" means an individual to whom all of the following apply:

(b) Is required, as a condition of the medicaid program paying for the individual's services in the institution, to spend for costs of medical or nursing care all of the individual's income except for an amount for personal needs specified by the department of job and family services;

(c) Cannot reasonably be expected to be discharged from the institution and return home as determined by the department of job and family services.

(5)"Time of death" shall not be construed to mean a time after which a legal title or interest in real or personal property or other asset may pass by survivorship or other operation of law due to the death of the decedent or terminate by reason of the decedent's death.

(B) ~~For the purpose of recovering the cost ofservices correctly paid under the medical assistance program to a recipientage fifty-five or older, the~~ To the extent permitted by federal law, the department of job and family services shallinstitutean estate recovery program against the property and estates of medicalassistance recipients torecover medical assistance correctly paid on their behalf to the extentthat federal law and regulations permit the implementation of aprogram of that nature. Thedepartment shall seek to recover medical assistancecorrectly paid only after the recipient and the recipient'ssurviving spouse, if any,have died and only at a time when the recipient has no survivingchild who is under age twenty-one or blind or permanently andtotally disabled.

The department may enter into a contract with any personunder which the person administers the estate recovery program on behalf ofthe department or performs any of the functions required to carry outthe program. The contract may provide for the person to becompensated from the property recovered from the estates of medicalassistance recipients or may provide foranother mannerof compensation agreed to by the person and the department. Regardless of whether it is administered by the department or aperson under contract with the department, the program shall beadministered in accordance with applicable requirements offederal law and regulations and state law and rules.

~~(C)~~ under which the department shall, except as provided in divisions (C) and (D) of this section, do both of the following:

(1) For the costs of medicaid services the medicaid program correctly paid or will pay on behalf of a permanently institutionalized individual of any age, seek adjustment or recovery from the individual's estate or on the sale of property of the individual or spouse that is subject to a lien imposed under section 5111.111 of the Revised Code;

(2) For the costs of medicaid services the medicaid program correctly paid or will pay on behalf of an individual fifty-five years of age or older who is not a permanently institutionalized individual, seek adjustment or recovery from the individual's estate.

(C)(1) No adjustment or recovery may be made under division (B)(1) of this section from a permanently institutionalized individual's estate or on the sale of property of a permanently institutionalized individual that is subject to a lien imposed under section 5111.111 of the Revised Code or under division (B)(2) of this section from an individual's estate while either of the following are alive:

(b) The son or daughter of a permanently institutionalized individual or individual if the son or daughter is under age twenty-one or, under 42 U.S.C. 1382c, is considered blind or disabled.

(2) No adjustment or recovery may be made under division (B)(1) of this section from a permanently institutionalized individual's home that is subject to a lien imposed under section 5111.111 of the Revised Code while either of the following lawfully reside in the home:

(a) The permanently institutionalized individual's sibling who resided in the home for at least one year immediately before the date of the permanently institutionalized individual's admission to the institution and on a continuous basis since that time;

(b) The permanently institutionalized individual's son or daughter who provided care to the permanently institutionalized individual that delayed the permanently institutionalized individual's institutionalization and resided in the home for at least two years immediately before the date of the permanently institutionalized individual's admission to the institution and on a continuous basis since that time.

(D) The department ~~may~~ shall waive seeking an adjustment or recovery ~~ofmedical assistance correctly paid~~ otherwise required by this section if the director of job and familyservices determines that adjustment orrecovery would work an undue hardship. ~~The~~ The department may limit the duration of the waiver to the period during which the undue hardship exists.

The director, in accordance withChapter 119. of the Revised Code, shall adopt rules ~~establishing~~ regarding the estate recovery program, including rules that establish procedures and criteria forwaiver of adjustment or recovery due to an undue hardship~~, which~~. These rules shall meet thestandardsspecified by the United States secretary ofhealth and humanservices under 42 U.S.C.1396p(b)(3), as amended.

(D) Any action that may be taken by the departmentundersection 5111.111 of the Revised Codemay be taken by a person administering the program, or performing actionsspecified in that section, pursuant to a contract with the department.

(E) For the purpose of determining whether an individual meets the definition of "permanently institutionalized individual" established for this section, a rebuttable presumption exists that the individual cannot reasonably be expected to be discharged from an institution and return home if either of the following is the case:

(2) The individual has been an inpatient in an institution for at least six months.

Sec. 5111.111. As used in this section, "home andcommunity-based services" means services provided pursuant to a waiver undersection 1915 of the "Social Security Act," 49Stat. 620 (1935), 42 U.S.C.A. 1396n, as amended.

~~The~~ (A) Except as provided in division (B) of this section and section 5111.12 of the Revised Code, no lien may be imposed against the property of an individual before the individual's death on account of medicaid services correctly paid or to be paid on the individual's behalf.

(B) Except as provided in division (C) of this section, the department of job and family services may ~~place~~ impose a lienagainstthe real property of a ~~medical assistance~~ medicaid recipient or who is a permanently institutionalized individual and against the real property of the recipient's spouse,~~other than arecipient or spouse of a recipient of home and community-based services,that the department may recover as partof the program instituted under section 5111.11 of the Revised Code~~ including any real property that is jointly held by the recipient and spouse. ~~Whenmedical assistance is paid on behalf of any person incircumstances underwhich federal law and regulations and this section permit the imposition of alien, the~~ The lien may be imposed on account of medicaid paid or to be paid on the recipient's behalf.

(C) No lien may be imposed under division (B) of this section against the home of a medicaid recipient if any of the following lawfully resides in the home:

(2) The recipient's son or daughter who is under twenty-one years of age or, under 42 U.S.C. 1382c, considered to be blind or disabled;

(3) The recipient's sibling who has an equity interest in the home and resided in the home for at least one year immediately before the date of the recipient's admission to the institution.

(D) The director of job and family services or a person designated bythe director ~~may~~ shall sign a certificate to ~~the effect~~ effectuate a lien required to be imposed under this section. The county department ofjob and family services shall file for recording andindexing the certificate,or acertified copy, in the real estate mortgage records in the officeof the county recorder in every county in which real property ofthe recipient or spouse is situated. From the time of filing thecertificate in the office of the county recorder, the lienattaches to all real property of the recipient or spousedescribed ~~therein~~ in the certificate for all amounts ~~of aid which are paid or which thereafter arepaid,~~ for which adjustment or recovery may be made under section 5111.11 of the Revised Code and, except as provided in division (E) of this section, shall remain a lien until satisfied.

Upon filing the certificate in the office of the recorder,all persons are charged with notice of the lien and the rights ofthe department of job and family services thereunder.

The county recorder shall keep a record of everycertificate filed showing its date, the time of filing, the nameand residence of the recipient or spouse, and any release,waivers, or satisfaction of the lien.

The priority of the lien shall be established in accordance with state andfederal law.

The department may waive the priority of its lien toprovide for the costs of the last illness as determined by thedepartment, administration, attorney fees, administrator fees, asum for the payment of the costs of burial, which shall becomputed by deducting from five hundred dollars whatever amountis available for the same purpose from all other sources, and asimilar sum for the spouse of the decedent.

(E) A lien imposed with respect to a medicaid recipient under this section shall dissolve on the recipient's discharge from the institution and return home.

Sec. 5111.112. The department of job and family services shall certify amounts due under the estate recovery program instituted under section 5111.11 of the Revised Code to the attorney general pursuant to section 131.02 of the Revised Code. The attorney general may enter into a contract with any person or government entity to collect the amounts due on behalf of the attorney general.

The attorney general, in entering into a contract under this section, shall comply with all of the requirements that must be met for the state to receive federal financial participation for the costs incurred in entering into the contract and carrying out actions under the contract. The contract may provide for the person or government entity with which the attorney general contracts to be compensated from the property recovered under the estate recovery program or may provide for another manner of compensation agreed to by the parties to the contract.

Regardless of whether the attorney general collects the amounts due under the estate recovery program or contracts with a person or government entity to collect the amounts due on behalf of the attorney general, the amounts due shall be collected in accordance with applicable requirements of federal statutes and regulations and state statutes and rules.

(1) "Adult care facility" has the same meaning as insection 3722.01 of the RevisedCode.

(2) "Commissioner" means a person appointed by a probatecourt under division (B) ofsection 2113.03 of the RevisedCode to act as a commissioner.

(4) "Personal needs allowance account" means an accountor petty cash fund that holds the money of a resident of anadult care facility or home and that the facility or homemanages for the resident.

(B) Except as providedin divisions (C) and(D) of this section, the owneror operator of an adult care facility or home shall transfer tothe department of job and family services the money in the personalneedsallowance account of a resident of the facility or home who wasa recipient of the medical assistance program no earlier thansixty days but not later than ninety days after the residentdies. The adult care facility or home shall transfer the moneyeven though the owner or operator of the facility or home has not beenissued letters testamentary or letters of administrationconcerning the resident's estate.

(C) If funeral or burialexpenses for a resident of an adult care facility or home whohas died have not been paid and the only resource the residenthad that could be used to pay for the expenses is the money inthe resident's personal needs allowance account, or all otherresources of the resident are inadequate to pay the full cost ofthe expenses, the money in the resident's personal needsallowance account shall be used to pay for the expenses ratherthan being transferred to the department of job and family servicespursuant to division (B) ofthis section.

(D) If, not later thansixty days after a resident of an adult care facility or homedies, letters testamentary or letters of administration areissued, or an application for release from administration isfiled under section 2113.03 of theRevisedCode, concerning the resident'sestate, the owner or operator of the facility or home shalltransfer the money in the resident's personal needs allowanceaccount to the administrator, executor, commissioner, or personwho filed the application for release from administration.

(E) The transfer or useof money in a resident's personal needs allowance account inaccordance with division (B),(C), or(D) of this section dischargesand releases the adult care facility or home, and the owner oroperator of the facility or home, from any claim for the moneyfrom any source.

(F) If, sixty-one ormore days after a resident of an adult care facility or homedies, letters testamentary or letters of administration areissued, or an application for release from administration undersection 2113.03 of the RevisedCode is filed, concerning theresident's estate, the department of job and family services shalltransfer the funds to the administrator, executor, commissioner,or person who filed the application, unless the department isentitled to recover the money under the estate recovery programinstituted under section 5111.11 of theRevised Code.

Sec. ~~5111.113~~ 5111.114. As used in this section, "nursingfacility" and "intermediate care facility for the ~~mental~~mentallyretarded" have the same meanings as in section5111.20 of the Revised Code.

In determining the amount of income that a recipient ofmedical assistance must apply monthly toward payment of thecost ofcare in a nursing facility or intermediate care facility for the mentallyretarded, the countydepartment of job and familyservices shall deduct from the recipient's monthly income amonthly personal needs allowance in accordance with section 1902 of the"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 1396a, asamended.

For a resident of a nursing facility, the monthly personal needsallowance shall be not less than fortydollars for an individual resident and not lessthaneighty dollars for a married couple if both spouses are residentsof a nursing facility.

For a resident of an intermediate care facility for the mentally retarded,the monthly personal needs allowance shall be forty dollars unless theresident has earned income, in which case the monthly personal needs allowanceshall be determined by the state department of job andfamily services but shall notexceed one hundred five dollars.

Sec. 5111.16. (A) As part of the medicaid program, the department of job and family services shall establish a care management system. The department shall submit, if necessary, applications to the United States department of health and human services for waivers of federal medicaid requirements that would otherwise be violated in the implementation of the system.

(B) The department shall implement the care management system in some or all counties and shall designate the medicaid recipients who are required or permitted to participate in the system. In the department's implementation of the system and designation of participants, all of the following apply:

(1) In the case of individuals who receive medicaid on the basis of being included in the category identified by the department as covered families and children, the department shall implement the care management system in all counties. All individuals included in the category shall be designated for participation, except for indivduals included in one or more of the medicaid recipient groups specified in 42 C.F.R. 438.50(d). The department shall designate the participants not later than January 1, 2006. Beginning not later than December 31, 2006, the department shall ensure that all participants are enrolled in health insuring corporations under contract with the department pursuant to section 5111.17 of the Revised Code.

(2) In the case of individuals who receive medicaid on the basis of being aged, blind, or disabled, as specified in division (A)(2) of section 5111.01 of the Revised Code, the department shall implement the care management system in all counties. All individuals included in the category shall be designated for participation, except for the individuals specified in divisions (B)(2)(a) to (e) of this section. Beginning not later than December 31, 2006, the department shall ensure that all participants are enrolled in health insuring corporations under contract with the department pursuant to section 5111.17 of the Revised Code.

In designating participants who receive medicaid on the basis of being aged, blind, or disabled, the department shall not include any of the following:

(c) Individuals who become eligible for medicaid by spending down their income or resources to a level that meets the medicaid program's financial eligibility requirements;

(d) Individuals who are dually eligible under the medicaid program and the medicare program established under Title XVIII of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1395, as amended;

(e) Individuals to the extent that they are receiving medicaid services through a medicaid waiver component, as defined in section 5111.85 of the Revised Code.

(3) Alcohol, drug addiction, and mental health services covered by medicaid shall not be included in any component of the care management system when the nonfederal share of the cost of those services is provided by a board of alcohol, drug adiction, and mental health services or a state agency other than the department of job and family services, but the recipients of those services may otherwise be designated for participation in the system.

~~(B) Under the care management system~~ (C) Subject to division (B) of this section, the department may do both of the following under the care management system:

(1) Require or permit participants in the system to obtain health care services from providers designated by the department;

(2) ~~require~~ Require or permit participants in the system to obtain health care services through managed care organizations under contract with the department pursuant to section 5111.17 of the Revised Code.

~~(C)~~(D)(1) The department shall prepare an annual report on the care management system. The report shall address the department's ability to implement the system, including all of the following components:

(a) The required designation of participants included in the category identified by the department as covered families and children;

(b) The required designation of participants included in the aged, blind, or disabled category of medicaid recipients;

(2) The department shall submit each annual report to the general assembly. The first report shall be submitted not later than October 1, 2007.

(E) The director of job and family services may adopt rules in accordance with Chapter 119. of the Revised Code to implement this section.

Sec. 5111.161. (A) There is hereby created the medicaid care management working group, consisting of the following members:

(1) Three individuals representing medicaid health insuring corporations, as defined in section 5111.176 of the Revised Code, one appointed by the president of the senate, one appointed by the speaker of the house of representatives, and one appointed by the governor;

(2) One individual representing programs that provide enhanced care management services, appointed by the governor;

(3) Four individuals representing health care professional and trade associations, appointed as follows:

(a) One representative of the American academy of pediatrics, appointed by the president of the senate;

(b) One representative of the American academy of family physicians, appointed by the speaker of the house of representatives;

(d) One representative of the Ohio hospital association, appointed by the speaker of the house of representatives.

(4) One individual representing behavioral health professional and trade associations, appointed by the speaker of the house of representatives;

(5) Two individuals representing consumer advocates, one appointed by the president of the senate and one appointed by the speaker of the house of representatives;

(6) One individual representing county departments of job and family services, appointed by the president of the senate;

(7) Three individuals representing the business community, one appointed by the president of the senate, one appointed by the speaker of the house of representatives, and one appointed by the governor;

(B) The members of the working group shall serve at the pleasure of their appointing authorities. Vacancies shall be filled in the manner provided for original appointments.

(C) The working group shall develop guidelines that the department of job and family services may consider when entering into contracts under section 5111.17 of the Revised Code with managed care organizations for purposes of the care management system established under section 5111.16 of the Revised Code. The working group shall consult regularly with the departments of insurance, alcohol and drug addiction services, mental health, and mental retardation and developmental disabilities and the rehabilitation services commission.

(1) Examine the best practice standards used in managed care programs and other health care and related systems to maximize patient and provider satisfaction, maintain quality of care, and obtain cost-effectiveness;

(2) Consider the most effective means of facilitating the expansion of the care management system and increasing consistency within the system;

(3) Make recommendations for coordinating the regulatory relationships involved in the medicaid care management system;

(4) Make recommendations for improving the resolution of contracting issues among the providers involved in the care management system;

(5) Make recommendations that the department may consider when developing and implementing the financial incentive program under division (B) of section 5111.17 of the Revised Code to improve and reward positive health outcomes through managed care contracts. In making these recommendations, the working group shall include all of the following:

(a) Standards and procedures by which care management contractors may receive financial incentives for positive health outcomes measured on an individual basis;

(b) Specific measures of positive health outcomes, particularly among individuals with high-risk health conditions;

(d) Methods of funding the program without requiring an increase in appropriations.

(D) The working group shall prepare an annual report on its activities and shall submit the report to the president of the senate, speaker of the house of representatives, and governor. The report shall include any findings and recommendations the working group considers relevant to its duties. The working group shall complete an initial report not later than December 31, 2005. Each year thereafter, the working group shall complete its annual report by the last day of December.

Sec. 5111.162. (A) As used in this section, "medicaid managed care organization" means a managed care organization that has entered into a contract with the department of job and family services pursuant to section 5111.17 of the Revised Code.

(B) Except as provided in division (C) of this section, when a participant in the care management system established under section 5111.16 of the Revised Code is enrolled in a medicaid managed care organization and the organization refers the participant to a hospital that participates in the medicaid program but is not under contract with the organization, the hospital shall provide the service for which the referral was made and shall accept from the organization, as payment in full, the amount derived from the reimbursement rate used by the department to reimburse other hospitals of the same type for providing the same service to a medicaid recipient who is not enrolled in a medicaid managed care organization.

(1) The hospital is located in a county in which participants in the care management system are required before January 1, 2006, to be enrolled in a medicaid managed care organization that is a health insuring corporation;

(2) The hospital has entered into a contract before January 1, 2006, with at least one health insuring corporation serving the participants specified in division (C)(1) of this section;

(3) The hospital remains under contract with at least one health insuring corporation serving participants in the care management system who are required to be enrolled in a health insuring corporation.

(D) The director of job and family services shall adopt rules specifying the circumstances under which a medicaid managed care organization is permitted to refer a participant in the care management system to a hospital that is not under contract with the organization. The director may adopt any other rules necessary to implement this section. All rules adopted under this section shall be adopted in accordance with Chapter 119. of the Revised Code.

Sec. 5111.163. (A) As used in this section, "chronically ill child" means an individual who is not more than twenty-one years of age and meets the conditions specified in division (A)(2) of section 5111.01 of the Revised Code to be eligible for medicaid on the basis of being blind or disabled.

(B) Notwithstanding any conflicting provision of section 5111.16 of the Revised Code, the department of job and family services shall develop a pilot program for the care management of chronically ill children in accordance with this section. The pilot program shall be implemented not later than October 1, 2006, or, if by that date the department has not received any necessary federal approval to implement the program, as soon as practicable after receiving the approval. The department shall operate the program until October 1, 2008, except that the department shall cease operation of the program before that date if either of the following is the case:

(1) The department determines that requiring chronically ill children to participate in the care management system is not a cost-effective means of providing medicaid services.

(2) The combined state and federal cost of the children's care coordination described in division (D) of this section reaches three million dollars.

(C) The department shall ensure that the pilot program is operated in at least three counties selected by the department. In its consideration of the counties to be selected, the department may give priority to Hamilton county and Muskingum county. The department may extend its operation of the program into the areas surrounding the counties in which the program is operated.

(D) The purpose of the pilot program shall be to determine whether occurrences of acute illnesses and hospitalizations among chronically ill children can be prevented or reduced by establishing a medical home for the children where care is administered proactively and in a manner that is accessible, continuous, family-centered, coordinated, and compassionate. In establishing a medical home for a chronically ill child, all of the following apply:

(1) A physician shall serve as the care coordinator for the child. The care coordinator may be engaged in practice as a pediatrician certified in pediatrics by a medical specialty board of the American medical association or American osteopathic association, a pediatric subspecialist, or a provider for the program for medically handicapped children in the department of health. If the physician is in a group practice, any member of the group practice may serve as the child's care coordinator. The duties of the care coordinator may be performed by a person acting under the supervision of the care coordinator.

(2) The child may receive care from any health care practitioner appropriate to the child's needs, but the care coordinator shall direct and oversee the child's overall care.

(3) The care coordinator shall establish a relationship of mutual responsibility with the child's parents or other persons who are responsible for the child. Under this relationship, the care coordinator shall commit to developing a long-term disease prevention strategy and providing disease management and education services, while the child's parents or other persons who are responsible for the child shall commit to participating fully in implementing the child's care management plan.

(4) The medicaid program shall provide reimbursement for the reasonable and necessary costs of the services associated with care coordination, including, but not limited to, case management, care plan oversight, preventive care, health and behavioral care assessment and intervention, and any service modifier that reflects the provision of prolonged services or additional care.

(E) The department shall conduct an evaluation of the pilot program's effectiveness. As part of the evaluation, the department shall maintain statistics on physician expenditures, hospital expenditures, preventable hospitalizations, and other matters the department considers necessary to conduct the evaluation.

(F) The department shall adopt rules in accordance with Chapter 119. of the Revised Code as necessary to implement this section. The rules shall specify standards and procedures to be used in designating the chronically ill children who are required to participate in the pilot program.

Sec. 5111.17. (A) The department ofjob andfamily servicesmay enter into contractswith managedcare organizations, including health insuring corporations, under which the organizations are authorized toprovide, orarrange for the provision of, health care services tomedicalassistance recipients who are required or permitted to obtain health care services through managed careorganizations as part of the care management systemestablished under section 5111.16 of the Revised Code.

(B) The department shall develop and implement a financial incentive program to improve and reward positive health outcomes through the managed care organization contracts entered into under this section. In developing and implementing the program, the department may take into consideration the recommendations regarding the program made by the medicaid care management working group created under section 5111.161 of the Revised Code.

(C) The director of job and family servicesmayadopt rulesin accordance withChapter 119. of the Revised Code toimplementthis section.

(1) "Medicaid health insuring corporation" means a health insuring corporation that holds a certificate of authority under Chapter 1751. of the Revised Code and has entered into a contract with the department of job and family services pursuant to section 5111.17 of the Revised Code.

(2) "Managed care premium" means any premium payment, capitation payment, or other payment a medicaid health insuring corporation receives for providing, or arranging for the provision of, health care services to its members or enrollees residing in this state.

(B) Except as provided in division (C) of this section, all of the following apply:

(1) Each medicaid health insuring corporation shall pay to the department of job and family services a franchise permit fee for each calendar quarter occurring between January 1, 2006, and June 30, 2007.

(2) The fee to be paid is an amount that is equal to a percentage of the managed care premiums the medicaid health insuring corporation received in the quarter to which the fee applies, excluding the amount of any managed care premiums the corporation returned or refunded to enrollees, members, or premium payers during that quarter.

(3) The percentage to be used in calculating the fee shall be four and one-half per cent, unless the department adopts rules under division (L) of this section decreasing the percentage below four and one-half per cent or increasing the percentage to not more than six per cent.

(C) The department shall reduce the franchise permit fee imposed under this section or terminate its collection of the fee if the department determines either of the following:

(1) That the reduction or termination is required to comply with federal statutes or regulations;

(2) That the fee does not qualify as a state share of medicaid expenditures eligible for federal financial participation.

(D) The franchise permit fee shall be paid on or before the thirtieth day following the end of the calendar quarter to which the fee applies. At the time the fee is submitted, the medicaid health insuring corporation shall file with the department a report on a form prescribed by the department. The corporation shall provide on the form all information required by the department and shall include with the form any necessary supporting documentation.

(E) The department may audit the records of any medicaid health insuring corporation to determine whether the corporation is in compliance with this section. The department may audit the records that pertain to a particular calendar quarter at any time during the five years following the date the franchise permit fee payment for that quarter was due.

(F)(1) A medicaid health insuring corporation that does not pay the franchise permit fee in full by the date the payment is due is subject to any or all of the following:

(a) A monetary penalty in the amount of five hundred dollars for each day any part of the fee remains unpaid, except that the penalty shall not exceed an amount equal to five per cent of the total fee that was due for the calendar quarter for which the penalty is being imposed;

(b) Withholdings from future managed care premiums pursuant to division (G) of this section;

(2) Penalties imposed under division (F)(1)(a) of this section are in addition to and not in lieu of the franchise permit fee.

(G) If a medicaid health insuring corporation fails to pay the full amount of its franchise permit fee when due, or the full amount of a penalty imposed under division (F)(1)(a) of this section, the department may withhold an amount equal to the remaining amount due from any future managed care premiums to be paid to the corporation under the medicaid program. The department may withhold amounts under this division without providing notice to the corporation. The amounts may be withheld until the amount due has been paid.

(H) The department may commence actions to terminate a medicaid health insuring corporation's medicaid provider agreement, and may terminate the agreement subject to division (I) of this section, if the corporation does any of the following:

(2) Fails to pay a penalty imposed under division (F)(1)(a) of this section or fails to pay the penalty promptly;

(3) Fails to cooperate with an audit conducted under division (E) of this section.

(I) At the request of a medicaid health insuring corporation, the department shall grant the corporation a hearing in accordance with Chapter 119. of the Revised Code, if either of the following is the case:

(1) The department has determined that the corporation owes an additional franchise permit fee or penalty as the result of an audit conducted under division (E) of this section.

(2) The department is proposing to terminate the corporation's medicaid provider agreement and the provisions of section 5111.06 of the Revised Code requiring an adjudication in accordance with Chapter 119. of the Revised Code are applicable.

(J)(1) At the request of a medicaid corporation, the department shall grant the corporation a reconsideration of any issue that arises out of the provisions of this section and is not subject to division (I) of this section. The department's decision at the conclusion of the reconsideration is not subject to appeal under Chapter 119. of the Revised Code or any other provision of the Revised Code.

(2) In conducting a reconsideration, the department shall do at least the following:

(a) Specify the time frames within which a corporation must act in order to exercise its opportunity for a reconsideration;

(b) Permit the corporation to present written arguments or other materials that support the corporation's position.

(K) There is hereby created in the state treasury the managed care assessment fund. Money collected from the franchise permit fees and penalties imposed under this section shall be credited to the fund. The department shall use the money in the fund to pay for medicaid services, the department's administrative costs, and contracts with medicaid health insuring corporations.

(L) The director of job and family services may adopt rules to implement and administer this section. The rules shall be adopted in accordance with Chapter 119. of the Revised Code.

Sec. 5111.177. When contracting under section 5111.17 of the Revised Code with a health insuring corporation that holds a certificate of authority under Chapter 1751. of the Revised Code, the department of job and family services shall require the health insuring corporation to provide a grievance process for medicaid recipients in accordance with 42 C.F.R. 438, subpart F.

Sec. 5111.19. The director of joband family services shall adoptrules governing the calculation and payment of graduate medicaleducation costs associated with services rendered to medicaid recipients~~of the medical assistance program~~ after June 30, 1994. ~~The~~ Subject to section 5111.191 of the Revised Code, the rulesshall provide for reimbursement of graduate medical educationcosts associated with services rendered to ~~medical assistance~~ medicaidrecipients, including recipients enrolled in ~~health insuringcorporations~~ a managed care organization under contract with the department under section 5111.17 of the Revised Code, that the department determinesare allowable andreasonable.

If the department requires a ~~health insuring corporation~~ managed care organization to pay aprovider for graduatemedical educationcosts associated with the delivery of services to ~~medicalassistance~~ medicaid recipients enrolled in the ~~corporation~~ organization,thedepartment shall include in its payment to the~~corporation~~ organization anamount sufficient for the ~~corporation~~ organization to pay suchcosts. If thedepartment does not include in its payments to the~~health insuring corporation~~ managed care organizationamounts for graduate medical education costs of providers, all ofthe following apply:

(A) ~~The~~ Except as provided in section 5111.191 of the Revised Code, the department shall pay the provider for graduatemedical education costs associated with the delivery of servicesto ~~medical assistance~~ medicaid recipients enrolled in the~~corporation~~ organization;

(B) No provider shall seek reimbursement from the~~corporation~~ organization for such costs;

Sec. 5111.191. (A) Except as provided in division (B) of this section, the department of job and family services may deny payment to a hospital for direct graduate medical education costs associated with the delivery of services to any medicaid recipient if the hospital refuses without good cause to contract with a managed care organization that serves participants in the care management system established under section 5111.16 of the Revised Code who are required to be enrolled in a managed care organization and the managed care organization serves the area in which the hospital is located.

(B) A hospital is not subject to division (A) of this section if all of the following are the case:

(2) The hospital has entered into a contract before January 1, 2006, with at least one health insuring corporation serving the participants specified in division (B)(1) of this section.

(C) The director of job and family services shall specify in the rules adopted under section 5111.19 of the Revised Code what constitutes good cause for a hospital to refuse to contract with a managed care organization.

(A)"Allowable costs" are those costs determined by thedepartment of job and family services to be reasonable and do notincludefines paid under sections 5111.35 to 5111.61 and section5111.99of the Revised Code.

(B) "Ancillary and support costs" means all reasonable costs incurred by a nursing facility other than direct care costs or capital costs. "Ancillary and support costs" includes, but is not limited to, costs of activities, social services, pharmacy consultants, medical and habilitation records, program supplies, incontinence supplies, food, enterals, dietary supplies and personnel, laundry, housekeeping, security, administration, medical equipment, utilities, liability insurance, bookkeeping, purchasing department, human resources, communications, travel, dues, license fees, subscriptions, home office costs not otherwise allocated, legal services, accounting services, minor equipment, maintenance and repairs, help-wanted advertising, informational advertising, start-up costs, organizational expenses, other interest, property insurance, employee training and staff development, employee benefits, payroll taxes, and workers' compensation premiums or costs for self-insurance claims and related costs as specified in rules adopted by the director of job and family services under section 5111.02 of the Revised Code, for personnel listed in this division. "Ancillary and support costs" also means the cost of equipment, including vehicles, acquired by operating lease executed before December 1, 1992, if the costs are reported as administrative and general costs on the facility's cost report for the cost reporting period ending December 31, 1992.

(C)"Capital costs" means costs of ownership and, in the case of an intermediate care facility for the mentally retarded, costs ofnonextensive renovation.

(1)"Cost of ownership" means the actual expense incurredfor all of the following:

(a) Depreciation and interest on any capital assets thatcost five hundred dollars or more per item, including thefollowing:

(ii) Building improvements that are not approved asnonextensive renovations under section ~~5111.25 or~~ 5111.251 of theRevised Code;

(iii) ~~Equipment~~ Except as provided in division (B) of this section, equipment;

(iv) ~~Extensive~~ In the case of an intermediate care facility for the mentally retarded, extensive renovations;

(d) Except as provided in division ~~(I)~~(K) of this section,lease and rent ofland, building, and equipment.

The costs of capital assets of less than five hundred dollarsper item may beconsidered capital costs ~~of ownership~~ in accordance with aprovider's practice.

(2)"Costs of nonextensive renovation" means the actualexpense incurred by an intermediate care facility for the mentally retarded fordepreciation or amortization and interest onrenovations that are notextensive renovations.

~~(C)~~(D)"Capital lease" and"operating lease" shall be construedin accordancewith generally accepted accounting principles.

~~(D)~~(E)"Case-mix score" means the measure determined undersection ~~5111.231~~ 5111.232 of the Revised Code of the relative direct-careresources needed to provide care and habilitation to a residentofa nursing facility or intermediate care facility for thementallyretarded.

~~(E)~~(F)"Date of licensure," for a facility originally licensedas anursing home under Chapter 3721. of the Revised Code, meansthedate specific beds were originally licensed asnursing homebeds under that chapter, regardless of whether they weresubsequently licensed as residential facility beds under section5123.19of the Revised Code. For a facility originally licensedas aresidential facility under section 5123.19 of the RevisedCode,"date of licensure" means the date specific beds wereoriginally licensed as residential facility beds under thatsection.

(1) If nursing home beds licensed under Chapter 3721. of theRevised Code orresidential facility beds licensed under section5123.19 of the Revised Codewere not required by law to belicensed when they were originally used toprovide nursing home orresidential facility services,"date of licensure"means the datethe beds first were used to provide nursing home or residentialfacility services, regardless of the date the present providerobtainedlicensure.

(2) If a facility adds nursing home beds or residentialfacility beds or extensively renovates all or part of thefacilityafter its original date of licensure, it will have adifferentdate of licensure for the additional beds orextensively renovatedportion of the facility, unless the bedsare added in a space thatwas constructed at the same time as thepreviously licensed bedsbut was not licensed under Chapter 3721.or section 5123.19 of theRevised Code at that time.

~~(F)~~(G)"Desk-reviewed" means that costs as reported on a costreport submitted under section 5111.26 of the Revised Code havebeen subjected to a desk review under division (A) of section5111.27 of the Revised Code and preliminarily determined to beallowable costs.

(1)(a) Costs for registered nurses, licensed practicalnurses, and nurse aides employed by the facility;

(b) Costs for direct care staff, administrative nursingstaff, medical directors, ~~social services staff, activitiesstaff,psychologists and psychology assistants, social workersandcounselors,~~ habilitation staff, qualified mental retardationprofessionals, program directors, respiratory therapists,habilitation supervisors, and except as provided in division(G)(2) of this section, other persons holding degrees qualifyingthem to provide therapy;

(e) Costs of training and staff development, employeebenefits, payroll taxes, and workers' compensation premiums orcosts for self-insurance claims and related costs as specified inrules adopted by the director of joband family services inaccordance with Chapter119. of the Revised Code, forpersonnellisted indivisions ~~(G)~~(H)(1)(a), (b), and (d) of this section;

(2) In addition to the costs specified in division (H)(1) of this section, for nursing facilities only, direct care costs include medical supplies, emergency oxygen, habilitation supplies, and universal precautions supplies.

(3) In addition to the costs specified in division ~~(G)~~(H)(1)ofthis section, for intermediate care facilities for thementallyretarded only, direct care costs include both of thefollowing:

(a) Costs for physical therapists and physical therapyassistants, occupational therapists and occupational therapyassistants, speech therapists, ~~and~~ audiologists, social services staff, activities staff, psychologists and psychology assistants, and social workers and counselors;

(b) Costs of training and staff development, employeebenefits, payroll taxes, and workers' compensation premiums orcosts for self-insurance claims and related costs as specified inrules adopted ~~by the director of joband family services inaccordance with Chapter119.~~ under section 5111.02 of the Revised Code, for personnellisted in division~~(G)(2)~~(H)(3)(a) of this section.

~~(3)~~(4) Costs of other direct-care resources that arespecifiedas direct care costs in rules adopted ~~by thedirector of job andfamily services in accordancewith Chapter 119.~~ under section 5111.02 of the RevisedCode.

~~(H)~~(I)"Fiscal year" means the fiscal year of this state, asspecified in section 9.34 of the Revised Code.

~~(I)~~(J) "Franchise permit fee" means the fee imposed by sections 3721.50 to 3721.58 of the Revised Code.

(K)"Indirect care costs" means all reasonable costs incurred by an intermediate care facility for the mentally retarded otherthan direct care costs, other protected costs, or capital costs."Indirect care costs" includes but is not limited to costs ofhabilitation supplies, pharmacy consultants, medical andhabilitation records, program supplies, incontinence supplies,food, enterals, dietary supplies and personnel, laundry,housekeeping, security, administration, liability insurance,bookkeeping, purchasing department, human resources,communications, travel, dues, license fees, subscriptions, homeoffice costs not otherwise allocated, legal services, accountingservices,minor equipment,maintenance and repairs, help-wantedadvertising, informationaladvertising, start-up costs,organizational expenses, otherinterest, property insurance,employee training and staffdevelopment, employee benefits,payroll taxes, and workers' compensationpremiums or costs forself-insurance claims and related costs asspecified in rulesadopted ~~by the director ofjob and family services in accordancewith Chapter 119.~~ under section 5111.02 of the Revised Code, for personnellisted inthis division. Notwithstanding division ~~(B)~~(C)(1) of thissection,"indirect care costs" also means the cost of equipment,includingvehicles, acquired by operating lease executed beforeDecember 1,1992, if the costs are reported as administrative andgeneralcosts on the facility's cost report for the costreporting periodending December 31, 1992.

~~(J)~~(L)"Inpatient days" means all days during which aresident,regardless of payment source, occupies a bed in anursing facilityor intermediate care facility for the mentallyretarded that isincluded in the facility's certified capacityunder Title XIX ~~ofthe"Social Security Act," 49 Stat. 610(1935), 42 U.S.C.A. 301,as amended~~. Therapeutic or hospitalleave days for which paymentis made under section 5111.33 of theRevised Code are consideredinpatient days proportionate to thepercentage of the facility'sper resident per day rate paid forthose days.

~~(K)~~(M)"Intermediate care facility for the mentally retarded"means an intermediate care facility for the mentally retardedcertified as in compliance with applicable standards for the~~medical assistance~~ medicaid program by the director of health inaccordancewith Title XIX ~~of the"Social Security Act~~."

~~(L)~~(N)"Maintenance and repair expenses" means, except asprovided in division ~~(X)~~(BB)(2) of this section, expenditures thatarenecessary and proper to maintain an asset in a normallyefficientworking condition and that do not extend the usefullife of theasset two years or more."Maintenance and repairexpenses"includes but is not limited to the cost of ordinaryrepairs suchas painting and wallpapering.

~~(M)~~(O) "Medicaid days" means all days during which a resident who is a Medicaid recipient eligible for nursing facility services occupies a bed in a nursing facility that is included in the nursing facility's certified capacity under Title XIX. Therapeutic or hospital leave days for which payment is made under section 5111.33 of the Revised Code are considered Medicaid days proportionate to the percentage of the nursing facility's per resident per day rate paid for those days.

(P)"Nursing facility" means a facility, or a distinctpartof a facility, that is certified as a nursing facility bythedirector of health in accordance with Title XIX ~~of the"SocialSecurity Act,"~~ and is not an intermediate care facilityfor thementally retarded."Nursing facility" includes afacility, or adistinct part of a facility, that is certified asa nursingfacility by the director of health in accordance withTitle XIX ~~ofthe"Social Security Act,"~~ and is certified as askilled nursingfacility by the director in accordance with TitleXVIII ~~of the"Social Security Act~~."

~~(N)~~(Q) "Operator" means the person or government entity responsible for the daily operating and management decisions for a nursing facility or intermediate care facility for the mentally retarded.

(R) "Other protected costs" means costs incurred by an intermediate care facility for the mentally retarded for medicalsupplies; real estate, franchise, and property taxes; naturalgas,fuel oil, water, electricity, sewage, and refuse andhazardousmedical waste collection; allocated other protected home officecosts; and any additional costsdefined as other protected costsin rules adopted ~~by thedirector of job and familyservices inaccordance with Chapter 119.~~ under section 5111.02 ofthe Revised Code.

~~(O)~~(S)(1)"Owner" means any person or government entity that hasat least five per cent ownership or interest, either directly,indirectly, or in any combination, in any of the following regarding a nursing facility orintermediate care facility for the mentally retarded:

(c) Any mortgage, contract for deed, or other obligation secured in whole or in part by the land or structure on or in which the facility is located;

(d) Any lease or sublease of the land or structure on or in which the facility is located.

(2) "Owner" does not mean a holder of a debenture or bond related to the nursing facility or intermediate care facility for the mentally retarded and purchased at public issue or a regulated lender that has made a loan related to the facility unless the holder or lender operates the facility directly or through a subsidiary.

~~(Q)~~(U) Except as provided in divisions ~~(Q)~~(U)(1) and (2) of thissection,"per diem" means a nursing facility's or intermediatecare facility for the mentally retarded's actual, allowable costsin a given cost center in a cost reporting period, divided by thefacility's inpatient days for that cost reporting period.

(1) When calculating indirect care costs for the purposeofestablishing rates under section ~~5111.24 or~~ 5111.241 of theRevised Code,"per diem" means ~~a facility's~~ an intermediate care facility for the mentally retarded's actual, allowableindirect care costs in a cost reporting period divided by thegreater of the facility's inpatient days for that period or thenumber of inpatient days the facility would have had during thatperiod if its occupancy rate had been eighty-five per cent.

(2) When calculating capital costs for the purpose ofestablishing rates under section ~~5111.25 or~~ 5111.251 of theRevised Code,"per diem" means a facility's actual, allowablecapital costs in a cost reporting period divided by the greaterofthe facility's inpatient days for that period or the number ofinpatient days the facility would have had during that period ifits occupancy rate had been ninety-five per cent.

~~(R)~~(V)"Provider" means ~~a person or government entity thatoperates a nursing facility or intermediate care facility for thementally retarded under~~ an operator with a provider agreement.

~~(S)~~(W)"Provider agreement" means a contract between thedepartment of job and family services and the operator of a nursing facility orintermediate care facility for the mentally retarded for theprovision of nursing facility services or intermediate carefacility services for the mentally retarded under the ~~medicalassistance~~ medicaid program.

~~(T)~~(X)"Purchased nursing services" means services that areprovided in a nursing facility by registered nurses, licensedpractical nurses, or nurse aides who are not employees of thefacility.

~~(U)~~(Y)"Reasonable" means that a cost is an actual cost thatisappropriate and helpful to develop and maintain the operationofpatient care facilities and activities, including normalstandbycosts, and that does not exceed what a prudent buyer paysfor agiven item or services. Reasonable costs may vary fromproviderto provider and from time to time for the same provider.

~~(V)~~(Z)"Related party" means an individual or organizationthat, to a significant extent, has common ownership with, isassociated or affiliated with, has control of, or is controlledby, the provider.

(2) Common ownership exists when an individual orindividuals possess significant ownership or equity in both theprovider and the other organization. Significant ownership orequity exists when an individual or individuals possess five percent ownership or equity in both the provider and a supplier.Significant ownership or equity is presumed to exist when anindividual or individuals possess ten per cent ownership orequityin both the provider and another organization from whichtheprovider purchases or leases real property.

(3) Control exists when an individual or organization hasthe power, directly or indirectly, to significantly influence ordirect the actions or policies of an organization.

(4) An individual or organization that supplies goods orservices to a provider shall not be considered a related party ifall of the following conditions are met:

(b) A substantial part of the supplier's business activityof the type carried on with the provider is transacted withothersthan the provider and there is an open, competitive marketfor thetypes of goods or services the supplier furnishes.

(c) The types of goods or services are commonly obtainedbyother nursing facilities or intermediate care facilities forthementally retarded from outside organizations and are not abasicelement of patient care ordinarily furnished directly topatientsby the facilities.

(d) The charge to the provider is in line with the chargefor the goods or services in the open market and no more than thecharge made under comparable circumstances to others by thesupplier.

~~(W)~~(AA)"Relative of owner" means an individual who is relatedto an owner of a nursing facility or intermediate care facilityfor the mentally retarded by one of the following relationships:

(4) ~~Step-parent~~ Stepparent, ~~step-child~~ stepchild, ~~step-brother~~ stepbrother, or ~~step-sister~~ stepsister;

(5) Father-in-law, mother-in-law, son-in-law,daughter-in-law, brother-in-law, or sister-in-law;

(1) Any betterment, improvement, or restoration of ~~anursingfacility or~~ an intermediate care facility for the mentallyretardedstarted before July 1, 1993, that meets the definitionof arenovation or extensive renovation established in rulesadopted bythe director of job andfamily services in effect on December 22,1992.

(2) In the case of betterments, improvements, andrestorations of ~~nursing facilities and~~ intermediate carefacilities for the mentally retarded started on or after July 1,1993:

(a)"Renovation" means the betterment, improvement, orrestoration of ~~a nursing facility or~~ an intermediate care facilityfor the mentally retarded beyond its current functional capacitythrough a structural change that costs at least five hundreddollars per bed. A renovation may include betterment,improvement, restoration, or replacement of assets that areaffixed to the building and have a useful life of at least fiveyears. A renovation may include costs that otherwise would beconsidered maintenance and repair expenses if they are anintegralpart of the structural change that makes up therenovationproject."Renovation" does not mean construction ofadditionalspace for beds that will be added to a facility'slicensed orcertified capacity.

(b)"Extensive renovation" means a renovation that costsmore than sixty-five per cent and no more than eighty-five percent of the cost of constructing a new bed and that extends theuseful life of the assets for at least ten years.

For the purposes of division ~~(X)~~(BB)(2) of this section, thecostof constructing a new bed shall be considered to be fortythousanddollars, adjusted for the estimated rate of inflationfrom January1, 1993, to the end of the calendar year duringwhich therenovation is completed, using the consumer price indexforshelter costs for all urban consumers for the north centralregion, as published by the United States bureau of laborstatistics.

The department of job and family services may treat arenovationthat costs more than eighty-five per cent of the costofconstructing new beds as an extensive renovation if thedepartment determines that the renovation is more prudent thanconstruction of new beds.

(CC) "Title XIX" means Title XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396, as amended.

(DD) "Title XVIII" means Title XVIII of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1395, as amended.

Sec. 5111.204. (A) As used in this section ~~and in section5111.205 of the Revised Code~~, "representative" means a person acting on behalfof anapplicant for or recipient of ~~medical assistance~~ medicaid. Arepresentative may be a family member, attorney, hospital socialworker, or any other person chosen to act on behalf of anapplicant or recipient.

(B) The department of job and family services may require aneach applicant for or recipient of ~~medical assistance~~ medicaid who applies orintends to apply for admission to a nursing facility or resides in a nursing facility to undergoan assessment to determine whether the applicant or recipientneeds the level of care provided by a nursing facility. To The assessment may be performed concurrently with a long-term care consultation provided under section 173.42 of the Revised Code.

To the maximum extentpossible, the assessment shall be based on information from the residentassessment instrument specified in rules adopted by thedirector of job and family services under division~~(A)~~(E) of section ~~5111.231~~ 5111.232 of the RevisedCode. The assessment shall also be based on criteria andprocedures established in rules adopted under division ~~(H)~~(F) ofthis section and information provided by the person beingassessed or the person's representative. ~~The~~

The department ofjob and family services, or if the assessment is performedby ~~another~~ an agency ~~designated~~under contract with the department pursuant to division (G) of this section ~~5101.754 of the Revised Code~~, the agency, shall, notlater than the time the ~~assessment~~ level of care determination based on the assessment is required to be ~~performed~~provided under division (C) of this section, give written notice of itsconclusions and the basis for them to the person assessed and, ifthe department of job and family services or ~~designatedentity~~ agency under contract with the department has beeninformed that the person has a representative, to therepresentative.

(C) The department of job and family services or ~~designated~~ agency under contract with the department,whichever performs the assessment, shall ~~perform a completeassessment, or, if circumstances provided by rules adopted underdivision (H) of this section exist, a partial assessment,~~ provide a level of care determination based on the assessment asfollows:

(1) In the case of a person applying or intending to applyfor admission to a nursing facility while hospitalized, not later than one ofthe following:

(a) One working day after the person or the person'srepresentative submits an the application ~~for admission to the nursing facility~~ ornotifies the department of the person's intention to apply and submits all information required for providing the level of care determination, as specified in rules adopted under division (F)(2) of this section;

(2) In the case of an emergency as determined inaccordance with rules adopted under division (H) of this section,not later than one calendar day after the person or theperson's representative submits the application or notifies the departmentof the person's intention to apply.

~~(3) In all other cases~~ a person applying or intending to apply for admission to a nursing facility who is not hospitalized, not later than one of thefollowing:

(a) Five calendar days after the person or the person'srepresentative submits the application or notifies the departmentof the person's intention to apply and submits all information required for providing the level of care determination, as specified in rules adopted under division (F)(2) of this section;

(3) In the case of a person who resides in a nursing facility, not later than one of the following:

(a) Five calendar days after the person or the person's representative submits an application for medical assistance and submits all information required for providing the level of care determination, as specified in rules adopted under division (F)(2) of this section;

(4) In the case of an emergency, as specified in rules adopted under division (F)(4) of this section, within the number of days specified in the rules.

(D) If the department of job and family services or designated agencyconducts apartial assessment under division (C) of thissection, it shall complete the rest of the assessment not laterthan one hundred eighty days after the date the person isadmitted to the nursing facility unless the department ordesignated agency determines the person should be exempt from theassessment.

(E) A person is not required to be assessed under thissection if the circumstances specified by rule adopted underdivision (H) of this section exist or the department of job and familyservices or designated agency determines after a partialassessment that the person should be exempt from the assessment.

~~(F)~~ A person assessed under this section or the person's representative may~~appeal~~ request a state hearing to dispute the conclusions reached by the department of job and familyservices or ~~designated~~ agency under contract with the department on the basis of the assessment. The ~~appeal~~request for a state hearing shall be made in accordance with section 5101.35 ofthe Revised Code. The department of job and family services or~~designated~~ agency~~,whichever performs the assessment,~~ under contract with the department shall provide to theperson or the person's representative and the nursingfacility writtennotice of the person's right to ~~appeal~~ request a state hearing. The notice shall includean explanation of the procedure for ~~filing an appeal~~ requesting a state hearing. If a state hearing is requested, the state shall be represented in the hearing by the department of job and family services or the agency under contract with the department, whichever performed the assessment.

~~(G)~~(E) A nursing facility that admits or retains a persondetermined pursuant to an assessment required under ~~division (B)or (C) of~~ this section not to need the level of care provided bythe nursing facility shall not be reimbursed under the ~~medicalassistance~~ medicaid program for the person's care.

~~(H)~~(F) The director of job andfamily services shall adopt rules inaccordance with Chapter 119. of the Revised Code to implement andadminister this section. The rules shall include all of thefollowing:

(1) Criteria and procedures to be used in determiningwhether admission to a nursing facility or continued stay in a nursing facility is appropriate for theperson being assessed~~. The criteria shall include considerationof whether the person is in need of any of the following:~~

~~(c) Continuous supervision to prevent harm to the personas a result of cognitive impairment.~~;

(2) Information the person being assessed or the person'srepresentative must provide to the department or ~~designated~~ agency under contract with the department forpurposes of the assessment and providing a level of care determination based on the assessment;

(3) ~~Circumstances under which the department of job and family servicesor designated agency may perform a partial assessmentunder division (C) of this section;~~

(4) Circumstances that constitute an emergency for purposes of division (C)(4) of this section and the number of days within which a level of care determination must be provided in the case of an emergency.

(G) Pursuant to section 5111.91 of the Revised Code, the department of job and family services may enter into contracts in the form of interagency agreements with one or more other state agencies to perform the assessments required under this section. The interagency agreements shall specify the responsibilities of each agency in the performance of the assessments.

Sec. 5111.21. (A) Subject to sections 5111.01, 5111.011,5111.012, 5111.02, and 5111.211 of the Revised Code, the department of job andfamily services shall pay, as provided in sections 5111.20 to5111.32 of the Revised Code, the reasonable costs of servicesprovided to an eligible medicaid recipient by an eligible nursingfacility or intermediate care facility for the mentally retarded.

In order to be eligible for ~~medical assistance~~ medicaid payments, the operator of anursing facility or intermediate care facility for the mentallyretarded shall do all of the following:

(1) Enter into a provider agreement with the department asprovided in section 5111.22, 5111.671, or 5111.672 of the Revised Code;

(B) A (1) Except as provided in division (B)(2) of this section, the operator of a nursing facility that elects to obtain and maintaineligibility for payments under the medicaid program shall qualify all of the facility's medicaid-certified beds in the medicare program established by Title XVIII ~~of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1395~~. The director of job and family services may adopt rules ~~in accordance with Chapter 119.~~ under section 5111.02 of the Revised Code to establish the time frame in which a nursing facility must comply with this requirement.

(2) The Ohio veteran's home agency is not required to qualify all of the medicaid-certified beds in a nursing facility the agency maintains and operates under section 5907.01 of the Revised Code in the medicare program.

Sec. 5111.22. A provider agreement between the departmentofjob and family services and the provider of a nursing facility or intermediatecarefacility for the mentally retarded shall contain thefollowingprovisions:

(A) The department agrees to make payments to the ~~nursing facility or intermediatecare facility for the mentally retarded for patients eligible forservices under the medical assistance program~~ provider, as provided insections 5111.20 to ~~5111.32~~ 5111.33 of the Revised Code, for medicaid-covered services the facility provides to a resident of the facility who is a medicaid recipient. Nopaymentshallbe made for the day a medicaid recipient is discharged fromthefacility.

(2) Keep records relating to a cost reporting period forthegreater of seven years after the cost report is filed or, ifthedepartment issues an audit report in accordance with division(B)of section 5111.27 of the Revised Code, six years after allappealrights relating to the audit report are exhausted;

(4) Open all records relating to the costs of its servicesfor inspection and audit by the department;

(5) Open its premises for inspection by the department,thedepartment of health, and any other state or local authorityhaving authority to inspect;

(6) Supply to the department such information as itrequiresconcerning the facility's services to ~~patients~~ residents who areor areeligible to be medicaid recipients;

The provider agreement may contain other provisions thatareconsistent with law and considered necessary by thedepartment.

A provider agreement shall be effective for no longer thantwelve months, except that if federal statute or regulationsauthorize a longer term, it may be effective for a longer term soauthorized. A provider agreement may be renewed only if thefacility is certified by the department of health forparticipation in the medicaid program.

The department of job and family services, in accordancewithrulesadopted ~~by the director pursuant to Chapter 119.~~ under section 5111.02 of theRevised Code,may electnot to enter into, not to renew, or toterminate a provideragreement when the department determines thatsuch an agreementwould not be in the best interests of ~~the~~ medicaidrecipients or of thestate.

Sec. 5111.221. The department of job and family services shall make itsbestefforts each year to calculate rates under sections ~~5111.23~~ 5111.20 to ~~5111.29~~ 5111.33 of theRevised Code in time to use them to make the payments due to ~~nursingfacilities and intermediate care facilities for the mentally retarded~~ providers by thefifteenth day of August. If the department is unable to calculate the ratesso that they can be paid by that date, the department shall pay each ~~facility~~ providerthe rate calculated for it the provider's nursing facilities and intermediate care facilities for the mentally retarded under those sections at the end of the previousfiscal year. If the department also is unable to calculate the rates to makethe payments due by thefifteenthday of September and the fifteenth day of October, thedepartment shall pay the previous fiscal year's rate to make those payments. The department may increase by five per cent the previous fiscal year's ratepaid to for any facility pursuant to this section at the request of the ~~facility~~ provider. The department shall use rates calculated for the current fiscal year to makethe payments due by the fifteenth day of November.

If the rate paid to a provider for a facility pursuant to this section is lower than therate calculated for it the facility for the current fiscal year, the department shall paythe ~~facility~~ provider the difference between the two rates for the number of days forwhich the ~~facility~~ provider was paid for the facility pursuant to this section. If the rate paid to for afacility pursuant to this section is higher than the rate calculated for itfor the current fiscal year, the ~~facility~~ provider shall refund to the department thedifference between the two rates for the number of days for which the ~~facility~~ providerwas paid for the facility pursuant to this section.

Sec. 5111.222. (A) Except as otherwise provided by sections 5111.20 to 5111.33 of the Revised Code and by division (B) of this section, the payments that the department of job and family services shall agree to make to the provider of a nursing facility pursuant to a provider agreement shall equal the sum of all of the following:

(1) The rate for direct care costs determined for the nursing facility under section 5111.231 of the Revised Code;

(2) The rate for ancillary and support costs determined for the nursing facility's ancillary and support cost peer group under section 5111.24 of the Revised Code;

(3) The rate for tax costs determined for the nursing facility under section 5111.242 of the Revised Code;

(4) The rate for franchise permit fees determined for the nursing facility under section 5111.243 of the Revised Code;

(5) The quality incentive payment paid to the nursing facility's quality tier group under section 5111.244 of the Revised Code;

(6) The median rate for capital costs for the nursing facilities in the nursing facility's capital costs peer group as determined under section 5111.25 of the Revised Code.

(B) The department shall adjust the payment otherwise determined under division (A) of this section as directed by the general assembly through the enactment of law governing medicaid payments to providers of nursing facilities, including any law that does either of the following:

(2) Establishes a methodology for phasing in the rates determined for fiscal year 2006 under uncodified law the general assembly enacts to rates determined for subsequent fiscal years under sections 5111.20 to 5111.33 of the Revised Code.

Sec. 5111.223. The operator of a nursing facility or intermediate care facility for the mentally retarded may enter into provider agreements for more than one nursing facility or intermediate care facility for the mentally retarded.

Sec. 5111.23. (A) The department of job and familyservices shallpay a provider for each of the provider's eligible ~~nursing facility and~~ intermediate care ~~facility~~ facilitiesfor the mentally retarded a per resident per day rate for directcare costs established prospectively for each facility. The departmentshall establish each facility's rate for direct care costsquarterly.

(B) Each facility's rate for direct care costs shall bebased on the facility's cost per case-mix unit, subject to themaximum costs per case-mix unit established under division(B)(2) of this section, from the calendar year precedingthe fiscal year in which the rate is paid. To determine therate, the department shall do all of the following:

(1) Determine each facility's cost per case-mix unit forthe calendar year preceding the fiscal year in which the ratewill be paid by dividing the facility's desk-reviewed, actual,allowable, per diem direct care costs for that year by itsaverage case-mix score determined under section ~~5111.231~~ 5111.232 of theRevised Code for the same calendar year.

(2)(a) Set the maximum cost per case-mix unit for each peergroup of nursing facilities specified in rules adopted underdivision (E) of this section at a percentage above the cost percase-mix unit of the facility in the group that has the group'smedian medicaid inpatient day for the calendar year precedingthe fiscal year in which the rate will be paid, as calculatedunder division (B)(1) of this section, that is no less than thepercentage calculated under division (D)(1) of this section.

~~(b)~~ Set the maximum cost per case-mix unit for each peergroup of intermediate care facilities for the mentally retardedwith more than eight beds specified in rules adopted underdivision (E) of this section at a percentage above the cost percase-mix unit of the facility in the group that has the group'smedian medicaid inpatient day for the calendar year precedingthe fiscal year in which the rate will be paid, as calculatedunder division (B)(1) of this section, that is no less than thepercentage calculated under division (D)(2) of this section.

~~(c)~~(b) Set the maximum cost per case-mix unit for each peergroup of intermediate care facilities for the mentally retardedwith eight or fewer beds specified in rules adopted underdivision (E) of this section at a percentage above the cost percase-mix unit of the facility in the group that has the group'smedian medicaid inpatient day for the calendar year precedingthe fiscal year in which the rate will be paid, as calculatedunder division (B)(1) of this section, that is no less than thepercentage calculated under division (D)(3) of this section.

~~(d)~~(c) In calculating the maximum cost per case-mix unit under divisions(B)(2)(a) to ~~(c)~~(b) of this section for each peer group, the department shallexclude from its calculations the cost per case-mix unit of any facility inthe group that participated in the ~~medical assistance~~ medicaid program under the sameoperator for less than twelve months during the calendar year preceding thefiscal year in which the rate will be paid.

(3) Estimate the rate of inflation for the eighteen-monthperiod beginning on the first day of July of the calendar yearpreceding the fiscal year in which the rate will be paid andending on the thirty-first day of December of the fiscal year inwhich the rate will be paid, using the employment cost index fortotal compensation, health services component, published by theUnited States bureau of labor statistics. If the estimatedinflation rate for the eighteen-month period is different fromthe actual inflation rate for that period, as measured using thesame index, the difference shall be added to or subtracted fromthe inflation rate estimated under division (B)(3) of thissection for the following fiscal year.

(4) The department shall not recalculate a maximum costper case-mix unit under division (B)(2) of thissection or a percentage under division (D) of this section basedon additional information that it receives after the maximumcosts per case-mix unit or percentages are set. The departmentshall recalculate a maximum cost per case-mix units or percentageonly if it made an error in computing the maximum cost percase-mix unit or percentage based on information available at thetime of the original calculation.

(C) Each facility's rate for direct care costs shall bedetermined as follows for each calendar quarter within a fiscalyear:

(1) Multiply the lesser of the following by the facility'saverage case-mix score determined under section ~~5111.231~~ 5111.232 of theRevised Code for the calendar quarter that preceded theimmediately preceding calendar quarter:

(a) The facility's cost per case-mix unit for the calendaryear preceding the fiscal year in which the rate will be paid, asdetermined under division (B)(1) of this section;

(b) The maximum cost per case-mix unit established forthe fiscal year in which the rate will be paid for the facility'speer group under division (B)(2) of this section;

(2) Adjust the product determined under division(C)(1)of this section by the inflation rate estimated under division(B)(3) of this section.

(D)(1) The department shall calculate the percentage abovethe median cost per case-mix unit determined under division(B)(1) of this section for the facility that has the medianmedicaid inpatient day for calendar year 1992 for all nursingfacilities that would result in payment of all desk-reviewed,actual, allowable direct care costs for eighty-five per cent ofthe medicaid inpatient days for nursing facilities for calendaryear 1992.

~~(2)~~ The department shall calculate the percentage abovethe median cost per case-mix unit determined under division(B)(1) of this section for the facility that has the medianmedicaid inpatient day for calendar year 1992 for allintermediate care facilities for the mentally retarded with morethan eight beds that would result in payment of alldesk-reviewed, actual, allowable direct care costs for eighty andone-half per cent of the medicaid inpatient days for suchfacilities for calendar year 1992.

~~(3)~~(2) The department shall calculate the percentage abovethe median cost per case-mix unit determined under division(B)(1) of this section for the facility that has the medianmedicaid inpatient day for calendar year 1992 for allintermediate care facilities for the mentally retarded with eightor fewer beds that would result in payment of all desk-reviewed,actual, allowable direct care costs for eighty and one-half percent of the medicaid inpatient days for such facilities forcalendar year 1992.

(E) The director of job and family services shalladopt rules ~~in accordance withChapter 119.~~ under section 5111.02 of the Revised Code that specify peer groups of~~nursing facilities,~~ intermediate care facilities for the mentallyretarded with more than eight beds, and intermediate carefacilities for the mentally retarded with eight or fewer beds,based on findings of significant per diem direct care costdifferences due to geography and facility bed-size. The rulesalso may specify peer groups based on findings of significant perdiem direct care cost differences due to other factors which mayinclude~~, in the case of intermediate care facilities for thementally retarded,~~ case-mix.

(F) The department, in accordance with division ~~(C)~~(D) ofsection ~~5111.231~~ 5111.232 of the Revised Code and rules adopted underdivision ~~(D)~~(E) of that section, may assign case-mix scores or costsper case-mix unit if a ~~facility~~ provider fails to submit assessment~~information~~ data necessary to calculate ~~its~~ an intermediate care facility for the mentally retarded's case-mix score inaccordance with that section.

Sec. 5111.231. (A) As used in this section, "applicable calendar year" means the following:

(1) For the purpose of the department of job and family services' initial determination under division (D) of this section of each peer group's cost per case-mix unit, calendar year 2003;

(2) For the purpose of the department's subsequent determinations under division (D) of this section of each peer group's cost per case-mix unit, the calendar year the department selects.

(B) The department of job and family services shall pay a provider for each of the provider's eligible nursing facilities a per resident per day rate for direct care costs determined semi-annually by multiplying the cost per case-mix unit determined under division (D) of this section for the facility's peer group by the facility's semiannual case-mix score determined under section 5111.232 of the Revised Code.

(C) For the purpose of determining nursing facilities' rate for direct care costs, the department shall establish three peer groups.

Each nursing facility located in any of the following counties shall be placed in peer group one: Brown, Butler, Clermont, Clinton, Hamilton, and Warren.

Each nursing facility located in any of the following counties shall be placed in peer group two: Ashtabula, Champaign, Clark, Cuyahoga, Darke, Delaware, Fairfield, Fayette, Franklin, Fulton, Geauga, Greene, Hancock, Knox, Lake, Licking, Lorain, Lucas, Madison, Marion, Medina, Miami, Montgomery, Morrow, Ottawa, Pickaway, Portage, Preble, Ross, Sandusky, Seneca, Summit, Union, and Wood.

Each nursing facility located in any of the following counties shall be placed in peer group three: Adams, Allen, Ashland, Athens, Auglaize, Belmont, Carroll, Columbiana, Coshocton, Crawford, Defiance, Erie, Gallia, Guernsey, Hardin, Harrison, Henry, Highland, Hocking, Holmes, Huron, Jackson, Jefferson, Lawrence, Logan, Mahoning, Meigs, Mercer, Monroe, Morgan, Muskingum, Noble, Paulding, Perry, Pike, Putnam, Richland, Scioto, Shelby, Stark, Trumbull, Tuscarawas, Van Wert, Vinton, Washington, Wayne, Williams, and Wyandot.

(D)(1) At least once every ten years, the department shall determine a cost per case-mix unit for each peer group established under division (C) of this section. A cost per case-mix unit determined under this division for a peer group shall be used for subsequent years until the department redetermines it. To determine a peer group's cost per case-mix unit, the department shall do all of the following:

(a) Determine the cost per case-mix unit for each nursing facility in the peer group for the applicable calendar year by dividing each facility's desk-reviewed, actual, allowable, per diem direct care costs for the applicable calendar year by the facility's annual average case-mix score determined under section 5111.232 of the Revised Code for the applicable calendar year.

(b) Subject to division (D)(2) of this section, identify which nursing facility in the peer group is at the twenty-fifth percentile of the cost per case-mix units determined under division (D)(1)(a) of this section.

(c) Calculate the amount that is seven per cent above the cost per case-mix unit determined under division (D)(1)(a) of this section for the nursing facility identified under division (D)(1)(b) of this section.

(d) Multiply the amount calculated under division (D)(1)(c) of this section by the rate of inflation for the eighteen-month period beginning on the first day of July of the applicable calendar year and ending the last day of December of the calendar year immediately following the applicable calendar year using the employment cost index for total compensation, health services component, published by the United States bureau of labor statistics.

(2) In making the identification under division (D)(1)(b) of this section, the department shall exclude both of the following:

(a) Nursing facilities that participated in the medicaid program under the same provider for less than twelve months in the applicable calendar year;

(b) Nursing facilities whose direct care costs are more than one standard deviation from the mean desk-reviewed, actual, allowable, per diem direct care cost for all nursing facilities in the nursing facility's peer group for the applicable calendar year.

(3) The department shall not redetermine a peer group's cost per case-mix unit under this division based on additional information that it receives after the peer group's per case-mix unit is determined. The department shall redetermine a peer group's cost per case-mix unit only if it made an error in determining the peer group's cost per case-mix unit based on information available to the department at the time of the original determination.

Sec. ~~5111.231~~ 5111.232. (A)(1) The department of job and familyservices shalldetermine semiannual and annual average case-mix scores for nursing facilities byusing ~~data foreach resident, regardless of payment source,~~ all of the following:

(a) Data from aresidentassessment instrument specified in rules adopted ~~inaccordancewith Chapter 119.~~ under section 5111.02 of theRevised Code pursuanttosection1919(e)(5) of the "Social Security Act," 49Stat.620(1935), 42U.S.C.A. 1396r(e)(5), as amended, ~~and~~ for the following residents:

(i) When determining semi-annual case-mix scores, each resident who is a medicaid recipient;

(ii) When determining annual average case-mix scores, each resident regardless of payment source.

(b) Except as provided in rules authorized by division (A)(2)(a) and (b) of this section, the case-mixvaluesestablished by the United States department of health andhumanservices~~. Except~~;

(c) Except as modified in rules ~~adopted under~~ authorized bydivision(A)~~(1)~~(2)(c) of this section, ~~the department alsoshall use~~the grouper methodology usedon June 30,1999, by the UnitedStatesdepartment of health and human services for prospectivepayment of skillednursing facilities under the medicare programestablished by TitleXVIII ~~of the "Social Security Act," 49Stat.620 (1935), 42 U.S.C.A. 301, as amended~~. ~~The~~

(2) Thedirector of job andfamily services mayadopt rules ~~in accordance with Chapter 119.~~ under section 5111.02 ofthe Revised Code that do any of the following:

(a) Adjust the case-mix values specified in division (A)(1)(b) of this section to reflect changes inrelative wage differentials that are specific to this state;

(b) Express all of ~~the~~ those case-mix values in numeric termsthatare different from the terms specified by the United Statesdepartment of health and human services but that do not alter therelationship of the case-mix values to one another;

(i) Establish a different hierarchy for assigning residentstocase-mix categories under the methodology;

(iii) Incorporate changes to the methodology the UnitedStates department of health and human services makes after June30, 1999;

(iv) Make other changesthe~~nursing facilityreimbursementstudy council established by section5111.34 of theRevised Codeapproves~~ department determines are necessary.

~~(2)~~(B) The department shall determine case-mix scores forintermediate care facilities for the mentally retarded using datafor each resident, regardless of payment source, from a residentassessment instrument and grouper methodology prescribed in rulesadopted ~~in accordancewith Chapter 119.~~ under section 5111.02 of the Revised Code andexpressed in case-mix valuesestablished by the department inthose rules.

~~(B) Not later than fifteen days after the end of each~~(C) Each calendar quarter, each ~~nursing facility and intermediate carefacility for the mentally retarded~~ provider shall ~~submit to the departmentthe~~ compile complete assessment data, from the resident assessment instrument specified inrules ~~adopted under~~ authorized by division (A) or (B) of this section, for eachresident of each of the provider's facilities, regardless of payment source, who was in the facilityoron hospital or therapeutic leave from the facility on the lastdayof the quarter. Providers of a nursing facility shall submit the data to the department of health and, if required by rules, the department of job and family services. Providers of an intermediate care facility for the mentally retarded shall submit the data to the department of job and family services. The data shall be submitted not later than fifteen days after the end of the calendar quarter for which the data is compiled.

Except as provided in division ~~(C)~~(D) of this section, thedepartment, every six months and after the end of each calendar year ~~and pursuant toprocedures specified in rules adopted in accordance with Chapter119. of the Revised Code~~, shall calculate an a semiannual and annual averagecase-mix score for each nursing facility ~~and intermediate carefacility for the mentally retarded~~ using the facility's quarterlycase-mix scores for that six-month period or calendar year. Also except as provided in division (D) of this section, the department, after the end of each calendar year, shall calculate an annual average case-mix score for each intermediate care facility for the mentally retarded using the facility's quarterly case-mix scores for that calendar year. The department shall make the calculations pursuant to procedures specified in rules adopted under section 5111.02 of the Revised Code.

~~(C)~~(D)(1) If a ~~facility~~ provider does not timely submit informationfora calendar quarter necessary to calculate ~~its~~ a facility's case-mix score,orsubmits incomplete or inaccurate information for a calendarquarter, the department may assign the facility a quarterlyaverage case-mix score that is five per cent less than thefacility's quarterly average case-mix score for the precedingcalendar quarter. If the facility was subject to an exceptionreview under division (C) of section 5111.27 of the Revised Codefor the preceding calendar quarter, the department may assign aquarterly average case-mix score that is five per cent less thanthe score determined by the exception review. If the facilitywasassigned a quarterly average case-mix score for the precedingquarter, the department may assign a quarterly average case-mixscore that is five per cent less than that score assigned for thepreceding quarter.

The department may use a quarterly average case-mix scoreassigned under division ~~(C)~~(D)(1) of this section, instead of aquarterly average case-mix score calculated based on the~~facility's~~ provider's submitted information, to calculate the facility'sratefor direct care costs being established under section5111.23 or 5111.231 ofthe Revised Code for one or more months, as specifiedin rules~~adopted under~~ authorized by division ~~(D)~~(E) of this section, of thequarter forwhich the rate established under section 5111.23 or 5111.231 ofthe RevisedCode will be paid.

Before taking action under division ~~(C)~~(D)(1) of this section,the department shall permit the ~~facility~~ provider a reasonable period oftime, specified in rules ~~adopted under~~ authorized by division ~~(D)~~(E) of thissection, to correct the information. In the case of anintermediate care facility for the mentally retarded, thedepartment shallnotassign a quarterly average case-mix score dueto late submissionof corrections to assessment information unlessthe ~~facility~~ providerfails to submit corrected information prior to theeighty-firstday after the end of the calendar quarter to whichtheinformation pertains. In the case of a nursing facility, thedepartmentshall not assign a quarterly average case-mix score dueto late submission ofcorrections to assessment information unlessthe ~~facility~~ provider fails to submitcorrected information prior to theearlier of the eighty-first day after theend of the calendarquarter to which the information pertains or the deadlineforsubmission of such corrections established by regulations adoptedby theUnited States department of health and human services underTitles XVIII and XIX ~~of the SocialSecurity Act~~.

(2) If a ~~facility~~ provider is paid a rate for a facility calculated using aquarterly average case-mix score assigned under division ~~(C)~~(D)(1)ofthis section for more than six months in a calendar year, thedepartment may assign the facility a cost per case-mix unit thatis five per cent less than the facility's actual or assigned costper case-mix unit for the preceding calendar year. Thedepartmentmay use the assigned cost per case-mix unit, insteadofcalculating the facility's actual cost per case-mix unit inaccordance with section 5111.23 or 5111.231 of the Revised Code, to establishthe facility's rate for direct care costs for the followingfiscalyear.

(3) The department shall take action under division ~~(C)~~(D)(1)or (2) of this section only in accordance with rules ~~adoptedunder~~ authorized bydivision ~~(D)~~(E) of this section. The department shall nottake anaction that affects rates for prior payment periodsexcept inaccordance with sections 5111.27 and 5111.28 of theRevised Code.

~~(D)~~(E) The director ~~may~~ shall adopt rules ~~in accordance withChapter119.~~ under section 5111.02 of the Revised Code that do ~~any~~ all of the following:

(1) Specify whether providers of a nursing facility must submit the assessment data to the department of job and family services;

(2) Specify the medium or media through which thecompletedassessment ~~information~~ data shall be submitted;

~~(2)~~(3) Establish procedures under which the ~~department willreview~~ assessment ~~information~~ data shall be reviewed for accuracy and ~~notify thefacility~~ providers shall be notified of any ~~information~~ data that requires correction;

~~(3)~~(4) Establish procedures for ~~facilities~~ providers to correctassessment information. The procedures mayprohibit anintermediate care facility for the mentallyretarded fromsubmitting corrected assessment information, for the purpose ofcalculating its annual average case-mix score, more than twocalendar quarters after the end of the quarter to which theinformation pertains or, if the information pertains to thequarter ending the thirty-first day of December, after thethirty-first day of the following March data and specify a reasonable period of time by which providers shall submit the corrections. The procedures maylimitthe content of corrections by providers of nursing facilities in the mannerrequiredby regulations adopted by the United States department ofhealth and human services under Titles XVIII andXIX of the SocialSecurity Act andprohibit a nursing facility from submittingcorrected assessment information,for the purpose of calculatingits annual average case-mix score, more thanthe earlier of thefollowing:

(a) Two calendar quarters after the end of the quarter towhichthe information pertains or, if the information pertains tothe quarter endingthe thirty-first day of December, after thethirty-first day of thefollowing March;

~~(b) The deadline for submission of such correctionsestablishedby regulations adopted by the United States departmentofhealth and human services under Titles XVIII andXIX of theSocial Security Act~~.

~~(4)~~(5) Specify when and how the department will assigncase-mixscores or costs per case-mix unit under division ~~(C)~~(D) ofthissection if information necessary to calculate the facility's~~average annual or quarterly~~ case-mix score is not provided orcorrected in accordance with the procedures established by therules. Notwithstanding any other provision of sections 5111.20to~~5111.32~~ 5111.33 of the Revised Code, the rules also may provide for~~exclusion~~ the following:

(a) Exclusion of case-mix scores assigned under division ~~(C)~~(D) of thissection from calculation of ~~the facility's~~ an intermediate care facility for the mentally retarded's annual averagecase-mixscore and the maximum cost per case-mix unit for thefacility'speer group;

(b) Exclusion of case-mix scores assigned under division (D) of this section from calculation of a nursing facility's semiannual or annual average case-mix score and the cost per case-mix unit for the facility's peer group.

Sec. 5111.235. The department of job and family services shall pay a provider for each of the provider'seligible~~nursing facility and~~ intermediate care ~~facility~~ facilities for the mentallyretarded a perresident per day rate for other protected costs establishedprospectively eachfiscal year for each facility. The rate for each facility shallbe thefacility's desk-reviewed, actual, allowable, per diem otherprotected costsfrom the calendar year preceding the fiscal year in which therate will bepaid, all adjusted~~, except for franchise permit fees paid undersection 3721.53of the Revised Code,~~ for the estimated inflation rate for theeighteen-monthperiod beginning on the first day of July of the calendar year preceding thefiscal year in which the rate will be paid and ending on the thirty-first dayof December of that fiscal year. The department shall estimate inflation usingthe consumer price index for all urban consumers for nonprescription drugs andmedical supplies, as published by the United States bureau of labor statistics. If the estimated inflation rate for the eighteen-month period is differentfrom the actual inflation rate for that period, the difference shall be addedto or subtracted from the inflation rate estimated for the following year.

Sec. 5111.24. (A) As used in this section, "applicable calendar year" means the following:

(1) For the purpose of the department of job and family services' initial determination under division (D) of this section of each peer group's rate for ancillary and support costs, calendar year 2003;

(2) For the purpose of the department's subsequent determinations under division (D) of this section of each peer group's rate for ancillary and support costs, the calendar year the department selects.

(B) The department of job and family services shall pay a provider for each of the provider's eligible nursing facilities a per resident per day rate for ancillary and support costs determined for the nursing facility's peer group under division (D) of this section.

(C) For the purpose of determining nursing facilities' rate for ancillary and support costs, the department shall establish six peer groups.

Each nursing facility located in any of the following counties shall be placed in peer group one or two: Brown, Butler, Clermont, Clinton, Hamilton, and Warren. Each nursing facility located in any of those counties that has fewer than one hundred beds shall be placed in peer group one. Each nursing facility located in any of those counties that has one hundred or more beds shall be placed in peer group two.

Each nursing facility located in any of the following counties shall be placed in peer group three or four: Ashtabula, Champaign, Clark, Cuyahoga, Darke, Delaware, Fairfield, Fayette, Franklin, Fulton, Geauga, Greene, Hancock, Knox, Lake, Licking, Lorain, Lucas, Madison, Marion, Medina, Miami, Montgomery, Morrow, Ottawa, Pickaway, Portage, Preble, Ross, Sandusky, Seneca, Summit, Union, and Wood. Each nursing facility located in any of those counties that has fewer than one hundred beds shall be placed in peer group three. Each nursing facility located in any of those counties that has one hundred or more beds shall be placed in peer group four.

Each nursing facility located in any of the following counties shall be placed in peer group five or six: Adams, Allen, Ashland, Athens, Auglaize, Belmont, Carroll, Columbiana, Coshocton, Crawford, Defiance, Erie, Gallia, Guernsey, Hardin, Harrison, Henry, Highland, Hocking, Holmes, Huron, Jackson, Jefferson, Lawrence, Logan, Mahoning, Meigs, Mercer, Monroe, Morgan, Muskingum, Noble, Paulding, Perry, Pike, Putnam, Richland, Scioto, Shelby, Stark, Trumbull, Tuscarawas, Van Wert, Vinton, Washington, Wayne, Williams, and Wyandot. Each nursing facility located in any of those counties that has fewer than one hundred beds shall be placed in peer group five. Each nursing facility located in any of those counties that has one hundred or more beds shall be placed in peer group six.

(D)(1) At least once every ten years, the department shall determine the rate for ancillary and support costs for each peer group established under division (C) of this section. The rate for ancillary and support costs determined under this division for a peer group shall be used for subsequent years until the department redetermines it. To determine a peer group's rate for ancillary and support costs, the department shall do all of the following:

(a) Determine the rate for ancillary and support costs for each nursing facility in the peer group for the applicable calendar year by using the greater of the nursing facility's actual inpatient days for the applicable calendar year or the inpatient days the nursing facility would have had for the applicable calendar year if its occupancy rate had been ninety per cent. For the purpose of determining a nursing facility's occupancy rate under division (D)(1)(a) of this section, the department shall include any beds that the nursing facility removes from its medicaid-certified capacity unless the nursing facility also removes the beds from its licensed bed capacity.

(b) Subject to division (D)(2) of this section, identify which nursing facility in the peer group is at the twenty-fifth percentile of the rate for ancillary and support costs for the applicable calendar year determined under division (D)(1)(a) of this section.

(c) Calculate the amount that is three per cent above the rate for ancillary and support costs determined under division (D)(1)(a) of this section for the nursing facility identified under division (D)(1)(b) of this section.

(d) Multiply the amount calculated under division (D)(1)(c) of this section by the rate of inflation for the eighteen-month period beginning on the first day of July of the applicable calendar year and ending the last day of December of the calendar year immediately following the applicable calendar year using the consumer price index for all items for all urban consumers for the north central region, published by the United States bureau of labor statistics.

(2) In making the identification under division (D)(1)(b) of this section, the department shall exclude both of the following:

(a) Nursing facilities that participated in the medicaid program under the same provider for less than twelve months in the applicable calendar year;

(b) Nursing facilities whose ancillary and support costs are more than one standard deviation from the mean desk-reviewed, actual, allowable, per diem ancillary and support cost for all nursing facilities in the nursing facility's peer group for the applicable calendar year.

(3) The department shall not redetermine a peer group's rate for ancillary and support costs under this division based on additional information that it receives after the rate is determined. The department shall redetermine a peer group's rate for ancillary and support costs only if it made an error in determining the rate based on information available to the department at the time of the original determination.

Sec. 5111.241. (A) The department of job and family services shallpay a provider for each of the provider's eligible intermediate care ~~facility~~ facilities for the mentallyretarded a per resident per day rate for indirect care costsestablished prospectively each fiscal year for each facility. The rate for each intermediate care facility for the mentallyretarded shall be the sum of the following, but shall not exceedthe maximum rate established for the facility's peer group underdivision (B) of this section:

(1) The facility's desk-reviewed, actual, allowable, perdiem indirect care costs from the calendar year preceding thefiscal year in which the rate will be paid, adjusted for theinflation rate estimated under division (C)(1) of this section;

(i) In the case of intermediate care facilities for thementally retarded with more than eight beds, seven and one-tenthper cent of the maximum rate established for the facility's peergroup under division (B) of this section;

(ii) In the case of intermediate care facilities for thementally retarded with eight or fewer beds, seven per cent of themaximum rate established for the facility's peer group underdivision (B) of this section;

(b) For fiscal years ending in odd-numbered calendaryears, the amount calculated for the preceding fiscal year underdivision (A)(2)(a) of this section.

(B)(1) The maximum rate for indirect care costs for eachpeer group of intermediate care facilities for the mentallyretarded with more than eight beds specified in rules adoptedunder division (D) of this section shall be determined asfollows:

(a) For fiscal years ending in even-numbered calendaryears, the maximum rate for each peer group shall be the rate that is noless than twelve and four-tenths per cent above the mediandesk-reviewed, actual, allowable, per diem indirect care cost forall intermediate care facilities for the mentally retarded withmore than eight beds in the group, excluding facilities in thegroup whose indirect care costs for that period are more thanthree standard deviations from the mean desk-reviewed, actual,allowable, per diem indirect care cost for all intermediate carefacilities for the mentally retarded with more than eight beds,for the calendar year preceding the fiscal year in which the ratewill be paid, adjusted by the inflation rate estimated underdivision (C)(1) of this section.

(b) For fiscal years ending in odd-numbered calendaryears, the maximum rate for each peer group is the group'smaximum rate for the previous fiscal year, adjusted for theinflation rate estimated under division (C)(2) of this section.

(2) The maximum rate for indirect care costs for each peergroup of intermediate care facilities for the mentally retardedwith eight or fewer beds specified in rules adopted underdivision (D) of this section shall be determined as follows:

(a) For fiscal years ending in even-numbered calendaryears, the maximum rate for each peer group shall be the ratethat is no less than ten and three-tenths per cent above themedian desk-reviewed, actual, allowable, per diem indirect carecost for all intermediate care facilities for the mentallyretarded with eight or fewer beds in the group, excludingfacilities in the group whose indirect care costs are more thanthree standard deviations from the mean desk-reviewed, actual,allowable, per diem indirect care cost for all intermediate carefacilities for the mentally retarded with eight or fewer beds,for the calendar year preceding the fiscal year in which the ratewill be paid, adjusted by the inflation rate estimated underdivision (C)(1) of this section.

(b) For fiscal years that end in odd-numbered calendaryears, the maximum rate for each peer group is the group'smaximum rate for the previous fiscal year, adjusted for theinflation rate estimated under division (C)(2) of this section.

(3) The department shall not recalculate a maximum ratefor indirect care costs under division (B)(1) or (2) of thissection based on additional information that it receives afterthe maximum rate is set. The department shall recalculate themaximum rate for indirect care costs only if it made an error incomputing the maximum rate based on the information available atthe time of the original calculation.

(C)(1) When adjusting rates for inflation under divisions(A)(1), (B)(1)(a), and (B)(2)(a) of this section, the departmentshall estimate the rate of inflation for the eighteen-monthperiod beginning on the first day of July of the calendar yearpreceding the fiscal year in which the rate will be paid andending on the thirty-first day of December of the fiscal year inwhich the rate will be paid, using the consumer price index forall items for all urban consumers for the north central region,published by the United States bureau of labor statistics.

(2) When adjusting rates for inflation under divisions(B)(1)(b) and (B)(2)(b) of this section, the department shallestimate the rate of inflation for the twelve-month periodbeginning on the first day of January of the fiscal yearpreceding the fiscal year in which the rate will be paid andending on the thirty-first day of December of the fiscal year inwhich the rate will be paid, using the consumer price index forall items for all urban consumers for the north central region,published by the United States bureau of labor statistics.

(3) If an inflation rate estimated under division (C)(1)or (2) of this section is different from the actual inflationrate for the relevant time period, as measured using the sameindex, the difference shall be added to or subtracted from theinflation rate estimated pursuant to this division for thefollowing fiscal year.

(D) The director of job and family services shalladopt rules ~~in accordance withChapter 119.~~ under section 5111.02 of the Revised Code that specify peer groups ofintermediate care facilities for the mentally retarded with morethan eight beds, and peer groups of intermediate care facilitiesfor the mentally retarded with eight or fewer beds, based onfindings of significant per diem indirect care cost differencesdue to geography and facility bed-size. The rules also mayspecify peer groups based on findings of significant per diemindirect care cost differences due to other factors, includingcase-mix.

(a) For the purpose of the department of job and family services' initial determination under this section of nursing facilities' rate for tax costs, calendar year 2003;

(b) For the purpose of the department's subsequent determinations under division (D) of this section of nursing facilities' rate for tax costs, the calendar year the department selects.

(2) "Tax costs" means the costs of taxes imposed under Chapter 5751. of the Revised Code, real estate taxes, personal property taxes, and corporate franchise taxes.

(B) The department of job and family services shall pay a provider for each of the provider's eligible nursing facilities a per resident per day rate for tax costs determined under division (C) of this section.

(C) At least once every ten years, the department shall determine the rate for tax costs for each nursing facility. The rate for tax costs determined under this division for a nursing facility shall be used for subsequent years until the department redetermines it. To determine a nursing facility's rate for tax costs, the department shall divide the nursing facility's desk-reviewed, actual, allowable tax costs paid for the applicable calendar year by the number of inpatient days the nursing facility would have had if its occupancy rate had been one hundred per cent during the applicable calendar year.

Sec. 5111.243. The department of job and family services shall pay a provider for each of the provider's eligible nursing facilities a per resident per day rate for the franchise permit fees paid for the nursing facility. The rate shall be equal to the franchise permit fee for the fiscal year for which the rate is paid.

Sec. 5111.244. (A) As used in this section, "deficiency" and "standard survey" have the same meanings as in section 5111.35 of the Revised Code.

(B) Each year, the department of job and family services shall pay each nursing facility placed in the first, second, and third quality tier groups established under division (C) of this section a quality incentive payment. Nursing facilities placed in the first group shall receive the highest payment. Nursing facilities placed in the second group shall receive the second highest payment. Nursing facilities placed in the third group shall receive the third highest payment. Nursing facilities placed in the fourth group shall receive no payment. The mean payment, weighted by medicaid days, shall be two per cent of the average rate for all nursing facilities calculated under sections 5111.20 to 5111.33 of the Revised Code, excluding this section. Nursing facilities placed in the fourth group shall be included for the purpose of determining the mean payment.

(C) Each year, the department shall establish four quality tier groups. Each group shall consist of one quarter of all nursing facilities participating in the medicaid program. The first group shall consist of the quarter of nursing facilities individually awarded the most number of points under division (D) of this section. The second group shall consist of the quarter of nursing facilities individually awarded the second most number of points under division (D) of this section. The third group shall consist of the quarter of nursing facilities individually awarded the third most number of points under division (D) of this section. The fourth group shall consist of the quarter of nursing facilities individually awarded the least number of points under division (D) of this section.

(D) Each year, the department shall award each nursing facility participating in the medicaid program one point for each of the following accountability measures the facility meets:

(1) The facility had no health deficiencies on the facility's most recent standard survey.

(2) The facility had no health deficiencies with a scope and severity level greater than E, as determined under nursing facility certification standards established under Title XIX, on the facility's most recent standard survey.

(5) The number of hours the facility employs nurses is above the statewide average.

(6) The facility's employee retention rate is above the average for the facility's peer group established in division (C) of section 5111.231 of the Revised Code.

(E) The director of job and family services shall adopt rules under section 5111.02 of the Revised Code as necessary to implement this section. The rules shall include rules establishing the system for awarding points under division (D) of this section.

Sec. 5111.25. (A) As used in this section, "applicable calendar year" means the following:

(1) For the purpose of the department of job and family services' initial determination under division (D) of this section of each peer group's median rate for capital costs, calendar year 2003;

(2) For the purpose of the department's subsequent determinations under division (D) of this section of each peer group's median rate for capital costs, the calendar year the department selects.

(B) The department of job and familyservicesshall pay a provider for each of the provider's eligible nursing ~~facility~~ facilities a per residentper dayratefor ~~its reasonable~~ capital costs ~~establishedprospectivelyeach fiscal yearfor each facility~~. ~~Except asotherwise providedin sections 5111.20 to5111.32 of the RevisedCode, the~~ A nursing facility's rate for capital costs shallbe ~~based on~~ the ~~facility's~~ median rate for capitalcosts forthe ~~calendar yearpreceding the fiscal year in which the rate willbe paid~~ nursing facilities in the nursing facility's peer group as determined under division (D) of this section. ~~Therate shall equal the sum of divisions (A)(1) to (3)of thissection:~~

(a) Eighty-eight and sixty-five one-hundredths per cent ofthe facility's desk-reviewed, actual, allowable, per diem cost ofownership and eighty-five per cent of the facility's actual,allowable, per diem cost of nonextensive renovation determinedunder division (F) of this section;

~~(b) Eighty-eight and sixty-five one-hundredths per cent ofthe followinglimitation:~~

~~(i) For the fiscal year beginning July 1, 1993, sixteendollars per resident day;~~

(ii) For the fiscal year beginning July 1, 1994, sixteendollars per resident day, adjusted to reflect the rate ofinflation for the twelve-month period beginning July 1, 1992, andending June 30, 1993, using the consumer price index for sheltercosts for all urban consumers for the north central region,published by the United States bureau of labor statistics;

(iii) For subsequent fiscal years, the limitation ineffectduring the previous fiscal year, adjusted to reflect therate ofinflation for the twelve-month period beginning on thefirst dayof July for the calendar year preceding the calendaryear thatprecedes the fiscal year and ending on the followingthirtieth dayof June, using the consumer price index for sheltercosts for allurban consumers for the north central region,published by theUnited States bureau of labor statistics.

~~(3) Any amounts for return on equity determined underdivision (H) of this section~~ (C) For the purpose of determining nursing facilities' rate for capital costs, the department shall establish six peer groups.

(D)(1) At least once every ten years, the department shall determine the median rate for capital costs for each peer group established under division (C) of this section. The median rate for capital costs determined under this division for a peer group shall be used for subsequent years until the department redetermines it. To determine a peer group's median rate for capital costs, the department shall do both of the following:

(a) Subject to division (D)(2) of this section, use the greater of each nursing facility's actual inpatient days for the applicable calendar year or the inpatient days the nursing facility would have had for the applicable calendar year if its occupancy rate had been one hundred per cent.

(i) Nursing facilities that participated in the medicaid program under the same provider for less than twelve months in the applicable calendar year;

(ii) Nursing facilities whose capital costs are more than one standard deviation from the mean desk-reviewed, actual, allowable, per diem capital cost for all nursing facilities in the nursing facility's peer group for the applicable calendar year.

(2) For the purpose of determining a nursing facility's occupancy rate under division (D)(1)(a) of this section, the department shall include any beds that the nursing facility removes from its medicaid-certified capacity after June 30, 2005, unless the nursing facility also removes the beds from its licensed bed capacity.

(E) Buildings shall be depreciated using the straight linemethodover forty years or over a different period approved bythedepartment. Components and equipment shall be depreciatedusingthe straight-line method over a period designated in rulesadopted~~by the director of job and family services inaccordance withChapter 119.~~ under section 5111.02 of theRevised Code, consistent with the guidelinesof the Americanhospital association, or over a different periodapproved by thedepartment. Any rules ~~adopted under~~ authorized by this divisionthat specifyuseful lives of buildings, components, or equipmentapply only toassets acquired on or after July 1, 1993.Depreciation for costspaid or reimbursed by any government agencyshall not be includedin ~~cost of ownership or renovation~~ capital costs unlessthat part of thepayment under sections 5111.20 to ~~5111.32~~ 5111.33 of theRevised Code isused to reimburse the government agency.

~~(B)~~(F) The capital cost basis of nursing facility assetsshallbe determined in the following manner:

(1) For purposes of calculating the rate to be paid for thefiscal year beginning July 1, 1993, for facilitieswith dates oflicensure on or beforeJune 30, 1993, the capital cost basis shallbe equal to thefollowing:

(a) For facilities that have not had a change of ownershipduring the period beginning January 1, 1993, and ending June 30,1993, the desk-reviewed, actual, allowable capital cost basisthatis listed on the facility's cost report for the costreportingperiod ending December 31, 1992, plus the actual,allowablecapital cost basis of any assets constructed oracquired afterDecember 31, 1992, but before July 1, 1993, if theaggregatecapital costs of those assets would increase thefacility's ratefor capital costs by twenty or more cents perresident per day.

(b) For facilities that have a date of licensure or had achange of ownership during the period beginning January 1, 1993,and ending June 30, 1993, the actual, allowable capital costbasisof the person or government entity that owns the facilityon June30, 1993.

Capital cost basis shall be calculated as provided indivision (B)(1) of this section subject to approval by the UnitedStates health care financing administration of any necessaryamendment to the state plan for providing medical assistance.

The department shall include the actual, allowable capitalcost basis of assets constructed or acquired during the periodbeginning January 1, 1993, and ending June 30, 1993, in thecalculation for the facility's rate effective July 1, 1993, iftheaggregate capital costs of the assets would increase thefacility's rate by twenty or more cents per resident per day andthe facility provides the department with sufficientdocumentationof the costs before June 1, 1993. If the facilityprovides thedocumentation after that date, the department shalladjust thefacility's rate to reflect the costs of the assets onemonth afterthe first day of the month after the departmentreceives thedocumentation.

~~(2)~~ Except as provided in division ~~(B)(4)~~(F)(3) of thissection,for purposes of calculating the rates to be paid for~~fiscal yearsbeginning after June 30, 1994, for~~facilities with dates oflicensure on or before June 30,1993, the capital cost basis ofeach asset shall be equal to thedesk-reviewed, actual, allowable,capital cost basis that islisted on the facility's cost reportfor the calendar yearpreceding the fiscal year during which therate will be paid.

~~(3)~~(2) For facilities with dates of licensure after June30,1993, the capital cost basis shall be determined inaccordancewith the principles of the medicare program established underTitle XVIII ~~of the "Social Security Act," 49 Stat. 620 (1935), 42U.S.C.A. 301, as amended~~, except as otherwise provided insections5111.20 to ~~5111.32~~ 5111.33 of the Revised Code.

~~(4)~~(3) Except as provided in division ~~(B)(5)~~(F)(4) of thissection,if a provider transfers an interest in a facility toanotherproviderafter June 30, 1993, there shall be no increase in thecapitalcost basis of the asset if the providers are relatedparties or the provider to which the interest is transferred authorizes the provider that transferred the interest to continue to operate the facility under a lease, management agreement, or other arrangement. Ifthe ~~providers are not related parties or if they arerelated parties anddivision (B)(5) of this section requires~~ previous sentence does not prohibit theadjustment of thecapital cost basis under this division, thebasis of the assetshall be adjusted by the lesser of thefollowing:

(a) One-half of the change in construction costs duringthetime that the transferor held the asset, as calculated by thedepartment of job and family services using the "Dodgebuildingcost indexes, northeastern and north central states," published byMarshall and Swift;

(b) One-half of the change in the consumer price index forall items for all urban consumers, as published by the UnitedStates bureau of labor statistics, during the time that thetransferor held the asset.

~~(5)~~(4) If a provider transfers an interest in afacility toanother provider who is a related party, the capital cost basis ofthe assetshall be adjusted as specified in division~~(B)(4)~~(F)(3) ofthis section ~~for a transfer to a provider that is not arelatedparty~~ if all of the following conditions are met:

(b) Except as provided in division~~(B)(5)~~(F)(4)(c)(ii) of thissection, theprovider making the transferretains no ownershipinterest in the facility;

(c) The department of job and family servicesdeterminesthat the transfer is an arm's lengthtransactionpursuant torules~~the department shall adopt in accordance with Chapter 119.~~ adopted under section 5111.02of theRevised Code ~~no later than December 31,2000~~. The rulesshallprovide that a transfer is an arm's length transaction if all ofthe following apply:

(i) Once the transfer goes into effect, the provider thatmadethe transfer has no direct or indirect interest in theprovider that acquiresthe facility or thefacility itself,including interest as an owner, officer, director, employee,independent contractor,or consultant, but excluding interest as acreditor.

(ii) The provider that made the transfer does not reacquireaninterest in the facility except through the exercise of acreditor's rights inthe event of a default. If the providerreacquires an interest in thefacility in thismanner, thedepartment shall treat the facility as if the transferneveroccurred when the department calculates its reimbursementratesfor capital costs.

(d) Except in the case of hardshipcaused by a catastrophicevent, as determined by the department,or in the case of aprovider making the transfer who is at least sixty-fiveyears ofage,not less than twenty years have elapsed since, for the samefacility, the capital cost basis was adjusted most recently underdivision~~(B)(5)~~(F)(4) of this section oractual, allowable cost ofownership was determined most recently underdivision ~~(C)~~(G)(9) ofthis section.

"Imputed interest" means the lesser of the prime rate plus two per cent or ten per cent.

"Lease expense" means leasepayments in the case of an operating lease and depreciationexpense and interest expense in the case of a capital lease. ~~Asused in this division, "new~~

"New lease" means a lease, to a differentlessee, of a nursing facility that previously was operated underalease.

(1) Subject to ~~the limitation specified in~~ division ~~(A)(1)~~(B)of this section, for a lease of a facility that was effective onMay 27, 1992, the entire lease expense is an actual, allowable capitalcost ~~of ownership~~ during the term of the existing lease. Theentire lease expense also is an actual, allowable capital cost ~~ofownership~~ if a lease in existence on May 27, 1992, is renewedunder either of the following circumstances:

(a) The renewal is pursuant to a renewal option that wasinexistence on May 27, 1992;

(b) The renewal is for the same lease payment amount andbetween the same parties as the lease in existence on May 27,1992.

(2) Subject to ~~the limitation specified in~~ division ~~(A)(1)~~(B)of this section, for a lease of a facility that was in existencebut not operated under a lease on May 27, 1992, actual, allowable~~cost of ownership~~ capital costs shall include the lesser of the annual leaseexpense or the annual depreciation expense and imputed interestexpense that would be calculated at the inception of the leaseusing the lessor's entire historical capital asset cost basis,adjusted by the lesser of the following amounts:

(a) One-half of the change in construction costs duringthetime the lessor held each asset until the beginning of thelease,as calculated by the department using the "Dodge buildingcostindexes, northeastern and north central states," publishedbyMarshall and Swift;

(b) One-half of the change in the consumer price index forall items for all urban consumers, as published by the UnitedStates bureau of labor statistics, during the time the lessorheldeach asset until the beginning of the lease.

(3) Subject to ~~the limitation specified in~~ division ~~(A)(1)~~(B)of this section, for a lease of a facility with a date oflicensure on or after May 27, 1992, that is initially operatedunder a lease, actual, allowable ~~cost of ownership~~ capital costs shall includethe annual lease expense if there was a substantial commitment ofmoney for construction of the facility after December 22, 1992,and before July 1, 1993. If there was not a substantialcommitment of money after December 22, 1992, and before July 1,1993, actual, allowable ~~cost of ownership~~ capital costs shall include thelesserof the annual lease expense or the sum of the following:

(a) The annual depreciation expense that would becalculatedat the inception of the lease using the lessor'sentire historicalcapital asset cost basis;

(b) The greater of the lessor's actual annual amortizationof financing costs and interest expense at the inception of thelease or the imputed interest expense calculated at the inceptionof the lease using seventy per cent of the lessor's historicalcapital asset cost basis.

(4) Subject to ~~the limitation specified in~~ division ~~(A)(1)~~(B)of this section, for a lease of a facility with a date oflicensure on or after May 27, 1992, that was not initiallyoperated under a lease and has been in existence for ten years,actual, allowable ~~cost of ownership~~ capital costs shall include the lesser ofthe annual lease expense or the annual depreciation expense andimputed interest expense that would be calculated at theinceptionof the lease using the entire historical capital assetcost basisof the lessor, adjusted by the lesser of thefollowing:

(5) Subject to ~~the limitation specified in~~ division ~~(A)(1)~~(B)of this section, for a new lease of a facility that was operatedunder a lease on May 27, 1992, actual, allowable ~~cost ofownership~~ capital costsshall include the lesser of the annual new leaseexpense or theannual old lease payment. If the old lease was ineffect for tenyears or longer, the old lease payment from thebeginning of theold lease shall be adjusted by the lesser of thefollowing:

(a) One-half of the change in construction costs from thebeginning of the old lease to the beginning of the new lease, ascalculated by the department using the "Dodge building costindexes, northeastern and north central states," published byMarshall and Swift;

(b) One-half of the change in the consumer price index forall items for all urban consumers, as published by the UnitedStates bureau of labor statistics, from the beginning of the oldlease to the beginning of the new lease.

(6) Subject to ~~the limitation specified in~~ division ~~(A)(1)~~(B)of this section, for a new lease of a facility that was not inexistence or that was in existence but not operated under a leaseon May 27, 1992, actual, allowable ~~cost of ownership~~ capital costs shallincludethe lesser of annual new lease expense or the annualamountcalculated for the old lease under division ~~(C)~~(G)(2), (3),(4), or(6) of this section, as applicable. If the old lease wasineffect for ten years or longer, the lessor's historicalcapitalasset cost basis shall be adjusted by the lesser of thefollowingfor purposes of calculating the annual amount underdivision~~(C)~~(G)(2), (3), (4), or (6) of this section:

In the case of a lease under division ~~(C)~~(G)(3) of thissectionof a facility for which a substantial commitment of moneywas madeafter December 22, 1992, and before July 1, 1993, theold leasepayment shall be adjusted for the purpose ofdetermining theannual amount.

(7) For any revision of a lease described in division~~(C)~~(G)(1), (2), (3), (4), (5), or (6) of this section, or for anysubsequent lease of a facility operated under such a lease, otherthan execution of a new lease, the portion of actual, allowable~~cost of ownership~~ capital costs attributable to the lease shall be the same asbefore the revision or subsequent lease.

(8) Except as provided in division~~(C)~~(G)(9) of this section,if aprovider leases an interest in a facility to another providerwho is a relatedparty or previously operated the facility, the related party's or previous operator's actual, allowable ~~costof ownership~~ capital costs shallinclude the lesser of the annual lease expenseor the reasonablecost to the lessor.

(9) If a provider leases an interest in a facility toanother provider whois a related party, regardless of the date ofthe lease, the relatedparty's actual, allowable ~~cost of ownership~~ capital costsshall include the annual leaseexpense, subject to the limitationsspecified in divisions~~(C)~~(G)(1) to (7) of this section,if all ofthe following conditions are met:

(b) If the lessor retains anownership interest, it is,except as provided in division~~(C)~~(G)(9)(c)(ii) of this section, inonly the real property and any improvementson the real property;

(c) The department of job and family servicesdeterminesthat the lease is an arm's length transactionpursuant torules~~the department shall adopt in accordance with Chapter 119.~~ adopted under section 5111.02of theRevised Code ~~no later than December 31,2000~~. The rulesshallprovide that a lease is an arm's length transaction if all of thefollowing apply:

(i) Once the lease goes into effect, the lessor has nodirect orindirect interest in the lessee or, except as providedin division~~(C)~~(G)(9)(b) of this section, the facility itself,includinginterest as an owner, officer, director, employee,independent contractor, orconsultant, but excluding interestas alessor.

(ii) The lessor does not reacquire an interest in thefacilityexcept through the exercise of a lessor's rights in theevent of a default. If the lessor reacquiresan interest in thefacility in this manner, the department shalltreat the facilityas if the lease never occurred when thedepartment calculates itsreimbursement rates for capital costs.

(d) Except in the case of hardshipcaused by a catastrophicevent, as determined by the department,or in the case of a lessorwho is at least sixty-five years of age, not lessthan twentyyears have elapsed since, for the same facility, thecapital costbasis was adjusted most recently under division~~(B)(5)~~(F)(4) of thissection oractual, allowable ~~cost of ownership was~~ capital costs were determined mostrecently underdivision ~~(C)~~(G)(9) of this section.

~~(D)(1) Subject to division (D)(2) of this section, thedepartment shall payeach nursing facility an efficiency incentivethat is equal to fifty per centof the difference between thefollowing:~~

~~(a) Eighty-eight and sixty-five one-hundredths per cent ofthe facility'sdesk-reviewed, actual, allowable, per diem cost ofownership;~~

~~(2) The efficiency incentive paid to anursing facilityshall not exceed the greater of the following:~~

~~(a) The efficiency incentive the facility was paidduringthe fiscal year ending June 30, 1994;~~

(b) Three dollars per resident per day, adjustedannuallyfor rates paid beginning July 1, 1994, for theinflation rate forthe twelve-month period beginning on the firstday of July of thecalendar year preceding the calendaryear that precedes the fiscalyear for which the efficiencyincentive is determined and endingon the thirtieth day of thefollowing June, using the consumerprice index forshelter costs for all urban consumers for thenorth centralregion, as published by the United Statesbureau oflabor statistics.

(3) For purposes of calculating the efficiencyincentive,depreciation for costs that are paid or reimbursed by anygovernment agency shall be considered as costs of ownership, andrenovation costs that are paid under division (F) of this sectionshall not be considered costs of ownership.

~~(E) The following amounts shall be used to calculateefficiency incentives for nursing facilities under this section:~~

~~(1) For facilities with dates of licensure prior toJanuary1, 1958, four dollars and twenty-four cents per patientday;~~

~~(2) For facilities with dates of licensure after December31, 1957, but prior to January 1, 1968:~~

~~(a) Five dollars and twenty-four cents per patient day ifthe cost of construction was three thousand five hundred dollarsor more per bed;~~

~~(b) Four dollars and twenty-four cents per patient day ifthe cost of construction was less than three thousand fivehundreddollars per bed.~~

~~(3) For facilities with dates of licensure after December31, 1967, but prior to January 1, 1976:~~

~~(a) Six dollars and twenty-four cents per patient day ifthecost of construction was five thousand one hundred fiftydollarsor more per bed;~~

(b) Five dollars and twenty-four cents per patient day ifthe cost of construction was less than five thousand one hundredfifty dollars per bed, but exceeded three thousand five hundreddollars per bed;

~~(c) Four dollars and twenty-four cents per patient day ifthe cost of construction was three thousand five hundred dollarsor less per bed.~~

~~(4) For facilities with dates of licensure after December31, 1975, but prior to January 1, 1979:~~

~~(a) Seven dollars and twenty-four cents per patient day ifthe cost of construction was six thousand eight hundred dollarsormore per bed;~~

~~(b) Six dollars and twenty-four cents per patient day ifthecost of construction was less than six thousand eight hundreddollars per bed but exceeded five thousand one hundred fiftydollars per bed;~~

~~(c) Five dollars and twenty-four cents per patient day ifthe cost of construction was five thousand one hundred fiftydollars or less per bed, but exceeded three thousand five hundreddollars per bed;~~

~~(d) Four dollars and twenty-four cents per patient day ifthe cost of construction was three thousand five hundred dollarsor less per bed.~~

~~(5) For facilities with dates of licensure after December31, 1978, but prior to January 1, 1981:~~

~~(a) Seven dollars and seventy-four cents per patient dayifthe cost of construction was seven thousand six hundredtwenty-five dollars or more per bed;~~

(b) Seven dollars and twenty-four cents per patient day ifthe cost of construction was less than seven thousand six hundredtwenty-five dollars per bed but exceeded six thousand eighthundred dollars per bed;

~~(c) Six dollars and twenty-four cents per patient day ifthecost of construction was six thousand eight hundred dollarsorless per bed but exceeded five thousand one hundred fiftydollarsper bed;~~

~~(d) Five dollars and twenty-four cents per patient day ifthe cost of construction was five thousand one hundred fiftydollars or less but exceeded three thousand five hundred dollarsper bed;~~

~~(e) Four dollars and twenty-four cents per patient day ifthe cost of construction was three thousand five hundred dollarsor less per bed.~~

~~(6) For facilities with dates of licensure in 1981 or anyyear thereafter prior to December 22, 1992, the following amount:~~

(a) For facilities with construction costs less than seventhousand six hundred twenty-five dollars per bed, the applicableamounts for the construction costs specified in divisions(E)(5)(b) to (e) of this section;

(b) For facilities with construction costs of seventhousandsix hundred twenty-five dollars or more per bed, sixdollars perpatient day, provided that for 1981 and annuallythereafter priorto December 22, 1992, department shall do bothof the following tothe six-dollar amount:

(i) Adjust the amount for fluctuations in constructioncostscalculated by the department using the "Dodge building costindexes, northeastern and north central states," published byMarshall and Swift, using 1980 as the base year;

~~(ii) Increase the amount, as adjusted for inflation underdivision (E)(6)(b)(i) of this section, by one dollar andseventy-four cents.~~

(7) For facilities with dates of licensure on or afterJanuary 1, 1992, seven dollars and ninety-seven cents, adjustedfor fluctuations in construction costs between 1991 and 1993 ascalculated by the department using the "Dodge building costindexes, northeastern and north central states," published byMarshall and Swift, and then increased by one dollar andseventy-four cents.

For the fiscal year that begins July 1, 1994, each of theamounts listed in divisions (E)(1) to (7) of this section shallbeincreased by twenty-five cents. For the fiscal year thatbeginsJuly 1, 1995, each of those amounts shall be increased byanadditional twenty-five cents. For subsequent fiscal years,eachof those amounts, as increased for the prior fiscal year,shall beadjusted to reflect the rate of inflation for thetwelve-monthperiod beginning on the first day of July of thecalendar yearpreceding the calendar year that precedes thefiscal year andending on the following thirtieth day of June,using the consumerprice index for shelter costs for all urbanconsumers for thenorth central region, as published by theUnited States bureau oflabor statistics.

If the amount established for a nursing facility under thisdivision is less than the amount that applied to the facilityunder division (B) of former section 5111.25 of the Revised Code,as the former section existed immediately prior to December 22,1992, the amount used to calculate the efficiency incentive forthe facility under division (D)(2) of this section shall be theamount that was calculated under division (B) of the formersection.

(F) Beginning July 1, 1993, regardless of the facility'sdate of licensure or the date of the nonextensive renovations,therate for the costs of nonextensive renovations for nursingfacilities shall be eighty-five per cent of the desk-reviewed,actual, allowable, per diem, nonextensive renovation costs. Thisdivision applies to nonextensive renovations regardless ofwhetherthey are made by an owner or a lessee. If the tenancy ofa lesseethat has made nonextensive renovations ends before thedepreciation expense for the renovation costs has been fullyreported, the former lessee shall not report the undepreciatedbalance as an expense.

~~(1) For a nonextensive renovation made after July 1, 1993,to qualify for payment under this division, both of the followingconditions must be met:~~

(a) At least five years have elapsed since the date oflicensure of the portion of the facility that is proposed to berenovated, except that this condition does not apply if therenovation is necessary to meet the requirements of federal,state, or local statutes, ordinances, rules, or policies.

(b) The provider has obtained prior approval from thedepartment of job and family services, and if requiredthedirector of health has granted a certificate of need for therenovationunder section 3702.52 of the Revised Code. Theprovider shall submit aplan that describes in detail the changesin capital assets to beaccomplished by means of the renovationand the timetable forcompleting the project. The time forcompletion of the projectshall be no more than eighteen monthsafter the renovationbegins. The department of job and familyservices shalladopt rules in accordance with Chapter 119. of theRevised Code that specifycriteria and procedures for priorapproval of renovationprojects. No provider shall separate aproject with the intentto evade the characterization of theproject as a renovation oras an extensive renovation. Noprovider shall increase the scopeof a project after it isapproved by the department of job andfamily services unless theincrease in scope is approved by thedepartment.

(2) The payment provided for in this division is the onlypayment that shall be made for the costs of a nonextensiverenovation. Nonextensive renovation costs shall not be includedin costs of ownership, and a nonextensive renovation shall notaffect the date of licensure for purposes of calculating theefficiency incentive under divisions (D) and (E) of this section.

(G) The owner of a nursing facility operating under aprovider agreement shall provide written notice to the departmentof job and family services at least forty-five days priortoentering into any contract of sale for the facility or voluntarilyterminating participation in the medical assistance program. (H)Afterthe dateon which a transaction of sale is closed, the ~~owner~~ providershallrefund to thedepartment the amount of excess depreciationpaid tothe provider for the facility by thedepartment for each year the ~~owner~~ provider hasoperated the facility under a provideragreement and proratedaccording to the number of medicaid patient days forwhich the~~facility~~ provider has received payment for the facility. If a nursing facility is soldafterfive or fewer years of operation under a provideragreement,the refund to thedepartment shall be equal to the excessdepreciation paid to the facility. Ifa nursing facility is soldafter more than five years but less than ten yearsof operationunder a provider agreement, the refund to the department shallequal the excess depreciation paid to the facility multiplied bytwenty per cent, multiplied by the difference between ten and thenumber of years that the facility was operated under a provideragreement. If a nursing facility is sold after ten or more yearsof operation under a provider agreement, the owner shall notrefund any excess depreciation to the department. The~~owner~~ provider of afacility that is sold or thatvoluntarily terminates participationin the ~~medical assistance~~ medicaidprogram also shall refund any otheramount that the departmentproperly finds to be due after theaudit conducted under thisdivision. For the purposes of thisdivision, "depreciation paidto the provider for the facility" means the amountpaid to the provider for the nursing facilityfor ~~cost of ownership~~ capital costs pursuant tothis section less any amountpaid for interest costs, amortizationof financingcosts, and lease expenses. For the purposes of thisdivision, "excess depreciation" is the nursing facility'sdepreciatedbasis, which is the ~~owner's~~ provider's cost less accumulateddepreciation,subtracted from the purchase price net of sellingcostsbut not exceeding the amountof depreciation paid to the provider for thefacility.

A cost report shall be filed with the department withinninety days after the date on which the transaction of sale isclosed or participation is voluntarily terminated. The reportshall show the accumulated depreciation, the sales price, andother information required by the department. Thedepartmentshall provide for a bank, trust company, or savings and loanassociation to hold in escrow the amount of thelast two monthlypayments to a nursing facility made pursuant todivision (A)(1) ofsection 5111.22 of the Revised Code before asale or terminationof participationor, if the owner fails, within the time requiredby this division, to notify thedepartment before entering into acontract of sale for thefacility, the amount of the first twomonthly payments made to thefacility after the department learnsof the contract, regardlessof whether a new owner is inpossession of the facility. If theamount the owner will berequired to refund under thissection islikely to be less thanthe amount of the twomonthly paymentsotherwise put into escrowunder this division, the departmentshall take one of thefollowingactions instead of withholding theamount of the twomonthlypayments:

~~(1) In the case of an owner that owns other facilitiesthatparticipate in the medical assistance program, obtain apromissorynote in an amount sufficient to cover the amountlikely to berefunded;~~

(2) In the case of all other owners, withhold the amountofthe last monthly payment to the nursing facilityor, if the ownerfails, within the time required by this division, to notify thedepartment before entering into a contract of sale for thefacility, the amount of the first monthly payment made to thefacility after the department learns of the contract, regardlessof whether a new owner is in possession of the facility.

The department shall, within ninety days following thefilingof the cost report, audit the cost report and issue anauditreport to the owner. The department also may audit anyother costreport that the facility has filed during the previousthreeyears. In the audit report, the department shall state itsfindings and the amount of any money owed to the department bythenursing facility. The findings shall be subject toadjudicationconducted in accordance with Chapter 119. of theRevised Code. Nolater than fifteen days after the owner agreesto a settlement,any funds held in escrow less any amounts due tothe departmentshall be released to the owner and amounts due tothe departmentshall be paid to the department. If the amountsin escrow areless than the amounts due to the department, thebalance shall bepaid to the department within fifteen days afterthe owner agreesto a settlement. If the department does notissue its auditreport within the ninety-day period, thedepartment shall releaseany money held in escrow to the owner. For the purposes of thissection, a transfer of corporate stock,the merger of onecorporation into another, or a consolidationdoes not constitute asale.

If a nursing facility is not sold or its participation isnotterminated after notice is provided to the department underthisdivision, the department shall order any payments held inescrowreleased to the facility upon receiving written noticefrom theowner that there will be no sale or termination. Afterwrittennotice is received from a nursing facility that a sale ortermination will not take place, the facility shall providenoticeto the department at least forty-five days prior toentering intoany contract of sale or terminating participationat any futuretime.

(H) The department shall pay each eligible proprietarynursing facility a return on the facility's net equity computedatthe rate of one and one-half times the average interest rateonspecial issues of public debt obligations issued to thefederalhospital insurance trust fund for the cost reportingperiod,except that no facility's return on net equity shallexceedfiftycents per patient day.

When calculating the rate for return on net equity, thedepartment shall use the greater of the facility's inpatient daysduring the applicable cost reporting period or the number ofinpatient days the facility would have had during that period ifits occupancy rate had been ninety-five per cent.

(I) If a nursing facility would receive a lower rate forcapital costs for assets in the facility's possession on July 1,1993, under this section than it would receive under formersection 5111.25 of the Revised Code, as the former sectionexistedimmediately prior to December 22, 1992, the facilityshall receivefor those assets the rate it would have receivedunder the formersection for each fiscal year beginning on orafter July 1, 1993,until the rate it would receive under thissection exceeds therate it would have received under the formersection. Anyfacility that receives a rate calculated under theformer section5111.25 of the Revised Code for assets in thefacility'spossession on July 1, 1993, also shall receive a ratecalculatedunder this section for costs of any assets itconstructs oracquires after July 1, 1993.

Sec. 5111.251. (A) The department of job and familyservices shall pay a provider for each of the provider's eligible intermediate care ~~facility~~ facilities forthe mentallyretarded for its reasonable capital costs, a perresident per dayrate established prospectively each fiscal yearfor eachintermediate care facility for the mentally retarded.Except asotherwise provided in sections 5111.20 to ~~5111.32~~ 5111.33 of theRevisedCode, the rate shall be based on the facility's capitalcosts forthe calendar year preceding the fiscal year in which theratewill be paid. The rate shall equal the sum of the following:

(1) The facility's desk-reviewed, actual, allowable, perdiem cost of ownership for the preceding cost reporting period,limited as provided in divisions (C) and (F) of this section;

(4) Any amounts for return on equity determined underdivision (I) of this section.

Buildings shall be depreciated using the straight linemethodover forty years or over a different period approved bythedepartment. Components and equipment shall be depreciatedusingthe straight line method over a period designated by thedirectorof job and family services in rules adopted~~in accordance withChapter 119.~~ under section 5111.02 ofthe Revised Code, consistent with the guidelinesof the Americanhospital association, or over a different periodapproved by thedepartment of job and family services. Any rules~~adoptedunder~~ authorized by this division that specifyuseful lives ofbuildings, components, or equipment apply only toassets acquiredon or after July 1, 1993. Depreciation for costspaid orreimbursed by any government agency shall not be includedin costsof ownership or renovation unless that part of thepayment undersections 5111.20 to ~~5111.32~~ 5111.33 of the Revised Code isused toreimburse the government agency.

(B) The department of job and family services shall payto a provider foreach of the provider's eligible intermediate care ~~facility~~ facilities for the mentally retarded anefficiencyincentive equalto fifty per cent of the differencebetween any desk-reviewed,actual, allowable cost of ownership andthe applicable limit oncost of ownership payments under division(C) of this section. For purposesof computing the efficiencyincentive, depreciation for costs paid orreimbursed by anygovernment agency shall be considered as a cost ofownership, andthe applicable limit under division (C) of this section shallapply both to facilities with more than eight beds and facilitieswith eightor fewer beds. The efficiency incentive paid to a provider for afacility with eight orfewer beds shall not exceedthree dollarsper patient day, adjusted annually for theinflation rate for thetwelve-month period beginning on the firstday of July of thecalendar year preceding the calendar year thatprecedes the fiscalyear for which the efficiency incentive isdetermined and endingon the thirtieth day of the following June,using the consumerprice index for shelter costs for all urbanconsumers for thenorth central region, as published by theUnited States bureau oflabor statistics.

(C) Cost of ownership payments to for intermediate carefacilities for the mentally retarded with more than eight bedsshall not exceed the following limits:

(1) For facilities with dates of licensure prior toJanuary1, l958, not exceeding two dollars and fifty cents perpatientday;

(2) For facilities with dates of licensure after December31, l957, but prior to January 1, l968, not exceeding:

(a) Three dollars and fifty cents per patient day if thecost of construction was three thousand five hundred dollars ormore per bed;

(b) Two dollars and fifty cents per patient day if thecostof construction was less than three thousand five hundreddollarsper bed.

(3) For facilities with dates of licensure after December31, l967, but prior to January 1, l976, not exceeding:

(a) Four dollars and fifty cents per patient day if thecostof construction was five thousand one hundred fifty dollarsormore per bed;

(b) Three dollars and fifty cents per patient day if thecost of construction was less than five thousand one hundredfiftydollars per bed, but exceeds three thousand five hundreddollarsper bed;

(c) Two dollars and fifty cents per patient day if thecostof construction was three thousand five hundred dollars orlessper bed.

(4) For facilities with dates of licensure after December31, l975, but prior to January 1, l979, not exceeding:

(a) Five dollars and fifty cents per patient day if thecostof construction was six thousand eight hundred dollars ormore perbed;

(b) Four dollars and fifty cents per patient day if thecostof construction was less than six thousand eight hundreddollarsper bed but exceeds five thousand one hundred fiftydollars perbed;

(c) Three dollars and fifty cents per patient day if thecost of construction was five thousand one hundred fifty dollarsor less per bed, but exceeds three thousand five hundred dollarsper bed;

(d) Two dollars and fifty cents per patient day if thecostof construction was three thousand five hundred dollars orlessper bed.

(5) For facilities with dates of licensure after December31, l978, but prior to January 1, l980, not exceeding:

(a) Six dollars per patient day if the cost ofconstructionwas seven thousand six hundred twenty-five dollarsor more perbed;

(b) Five dollars and fifty cents per patient day if thecostof construction was less than seven thousand six hundredtwenty-five dollars per bed but exceeds six thousand eighthundreddollars per bed;

(c) Four dollars and fifty cents per patient day if thecostof construction was six thousand eight hundred dollars orless perbed but exceeds five thousand one hundred fifty dollarsper bed;

(d) Three dollars and fifty cents per patient day if thecost of construction was five thousand one hundred fifty dollarsor less but exceeds three thousand five hundred dollars per bed;

(e) Two dollars and fifty cents per patient day if thecostof construction was three thousand five hundred dollars orlessper bed.

(6) For facilities with dates of licensure afterDecember31, 1979, but prior toJanuary 1, 1981, not exceeding:

(a) Twelve dollars per patient day if the beds wereoriginally licensed asresidential facility beds by the departmentof mental retardation anddevelopmental disabilities;

(b) Six dollars per patient day if the beds were originallylicensed as nursing home beds by the department of health.

(7) For facilities with dates of licensure after December31,1980, but prior to January 1, 1982, not exceeding:

(a) Twelve dollars per patient day if the beds wereoriginallylicensed as residential facility beds by the departmentof mental retardationand developmental disabilities;

(b) Six dollars and forty-five cents per patient day if thebedswere originally licensed as nursing home beds by thedepartment of health.

(8) For facilities with dates of licensure after December31,1981, but prior to January 1, 1983, not exceeding:

(a) Twelve dollars per patient day if the beds wereoriginallylicensed as residential facility beds by the departmentof mental retardationand developmental disabilities;

(b) Six dollars and seventy-nine cents per patient day ifthe bedswere originally licensed as nursing home beds by thedepartment of health.

(9) For facilities with dates of licensure after December31,1982, but prior to January 1, 1984, not exceeding:

(a) Twelve dollars per patient day if the beds wereoriginallylicensed as residential facility beds by the departmentof mental retardationand developmental disabilities;

(b) Seven dollars and nine cents per patient day if the bedswereoriginally licensed as nursing home beds by the department ofhealth.

(10) For facilities with dates of licensure after December31,1983, but prior to January 1, 1985, not exceeding:

(a) Twelve dollars and twenty-four cents per patient day ifthebeds were originallylicensed as residential facility beds bythe department of mental retardationand developmentaldisabilities;

(b) Seven dollars and twenty-three cents per patient day ifthebeds wereoriginally licensed as nursing home beds by thedepartment of health.

(11) For facilities with dates of licensure after December31,1984, but prior to January 1, 1986, not exceeding:

(a) Twelve dollars and fifty-three cents per patient day ifthebeds were originallylicensed as residential facility beds bythe department of mental retardationand developmentaldisabilities;

(b) Seven dollars and forty cents per patient day if thebeds wereoriginally licensed as nursing home beds by thedepartment of health.

(12) For facilities with dates of licensure after December31,1985, but prior to January 1, 1987, not exceeding:

(a) Twelve dollars and seventy cents per patient day if thebeds were originallylicensed as residential facility beds by thedepartment of mental retardationand developmental disabilities;

(b) Seven dollars and fifty cents per patient day if thebeds wereoriginally licensed as nursing home beds by thedepartment of health.

(13) For facilities with dates of licensure after December31,1986, but prior to January 1, 1988, not exceeding:

(a) Twelve dollars and ninety-nine cents per patient day ifthebeds were originallylicensed as residential facility beds bythe department of mental retardationand developmentaldisabilities;

(b) Seven dollars and sixty-seven cents per patient day ifthebeds wereoriginally licensed as nursing home beds by thedepartment of health.

(14) For facilities with dates of licensure after December31,1987, but prior to January 1, 1989, not exceeding thirteendollars andtwenty-six cents per patient day;

(15) For facilities with dates of licensure after December31,1988, but prior to January 1, 1990, not exceeding thirteendollars andforty-six cents per patient day;

(16) For facilities with dates of licensure after December31,1989, but prior to January 1, 1991, not exceeding thirteendollars andsixty cents per patient day;

(17) For facilities with dates of licensure after December31,1990, but prior to January 1, 1992, not exceeding thirteendollars andforty-nine cents per patient day;

(18) For facilities with dates of licensure after December31,1991, but prior to January 1, 1993, not exceeding thirteendollars andsixty-seven cents per patient day;

(19) For facilities with dates of licensure after December31,1992, not exceeding fourteen dollars and twenty-eight centsper patient day.

(D) Beginning January 1, 1981, regardless of the originaldate of licensure, the department of job and familyservices shallpay a rate for the perdiem capitalized costs of renovations tointermediate carefacilities for the mentally retarded made afterJanuary 1, l981,not exceeding six dollars per patient day using1980 as the baseyear and adjusting the amount annually until June30, 1993, forfluctuations in construction costs calculated by thedepartmentusing the "Dodge building cost indexes, northeasternand northcentral states," published by Marshall and Swift. Thepaymentprovided for in this division is the only payment thatshall bemade for the capitalized costs of a nonextensiverenovation of anintermediate care facility for the mentallyretarded. Nonextensive renovation costs shall not be included incost ofownership, and a nonextensive renovation shall not affectthedate of licensure for purposes of division (C) of thissection. This division applies to nonextensive renovationsregardless ofwhether they are made by an owner or a lessee. Ifthe tenancy ofa lessee that has made renovations ends before thedepreciationexpense for the renovation costs has been fullyreported, theformer lessee shall not report the undepreciatedbalance as anexpense.

For a nonextensive renovation to qualify for payment underthis division, both of the following conditions must be met:

(1) At least five years have elapsed since the date oflicensure or date of an extensive renovation of the portion ofthefacility that is proposed to be renovated, except that thiscondition does not apply if the renovation is necessary to meetthe requirements of federal, state, or local statutes,ordinances,rules, or policies.

(2) The provider has obtained prior approval from thedepartment of job and family services. The providershall submita plan that describes indetail the changes in capital assets tobe accomplished by meansof the renovation and the timetable forcompleting the project. The time for completion of the projectshall be no more thaneighteen months after the renovation begins.Thedirector ofjob and family services shall adopt rules ~~inaccordance with Chapter119.~~ under section 5111.02 of the RevisedCode that specifycriteria and procedures for prior approval ofrenovation projects.No provider shall separate a project withthe intent to evade thecharacterization of the project as arenovation or as an extensiverenovation. No provider shallincrease the scope of a projectafter it is approved by thedepartment of job and family servicesunless the increasein scope is approved by the department.

(E) The amounts specified in divisions (C) and (D) of thissection shall be adjusted beginning July 1, 1993, for theestimated inflation for the twelve-month period beginning on thefirst day of July of the calendar year preceding the calendaryearthat precedes the fiscal year for which rate will be paidandending on the thirtieth day of the following June, using theconsumer price index for shelter costs for all urban consumersforthe north central region, as published by the United Statesbureauof labor statistics.

(F)(1) For facilities of eight or fewer beds that havedatesof licensure or have been granted project authorization bythedepartment of mental retardation and developmentaldisabilitiesbefore July 1, 1993, and for facilities of eight orfewer bedsthat have dates of licensure or have been grantedprojectauthorization after that date if the providers of the facilitiesdemonstrate thatthey made substantial commitments of funds on orbefore that date,cost of ownership shall not exceed eighteendollars and thirtycents per resident per day. Theeighteen-dollar and thirty-centamount shall be increased by thechange in the "Dodge buildingcost indexes, northeastern andnorth central states," published byMarshall and Swift, duringthe period beginning June 30, 1990, andending July 1, 1993, andby the change in the consumer price indexfor shelter costs forall urban consumers for the north centralregion, as published bythe United States bureau of laborstatistics, annuallythereafter.

(2) For facilities with eight or fewer beds that havedatesof licensure or have been granted project authorization bythedepartment of mental retardation and developmentaldisabilities onor after July 1, 1993, for which substantialcommitments of fundswere not made before that date, cost ofownership payments shallnot exceed the applicable amountcalculated under division (F)(1)of this section, if thedepartment of job and family servicesgives priorapproval for construction of the facility. If thedepartment does not giveprior approval, cost of ownershippayments shall not exceed theamount specified in division (C) ofthis section.

(3) Notwithstanding divisions (D) and (F)(1) and (2) ofthissection, the total payment for cost of ownership, cost ofownership efficiency incentive, and capitalized costs ofrenovations for an intermediate care facility for the mentallyretarded with eight or fewer beds shall not exceed the sum of thelimitations specified in divisions (C) and (D) of thissection.

(G) Notwithstanding any provision of this section orsection~~5111.24~~ 5111.241 of the Revised Code, the director ofjob and familyservices may adoptrules ~~in accordance with Chapter 119.~~ under section 5111.02 of theRevised Code thatprovide for a calculation of a combined maximumpayment limit forindirect care costs and cost of ownership forintermediate carefacilities for the mentally retarded with eightor fewer beds.

(H) After June 30, 1980, the owner of an intermediate carefacility for the mentally retarded operating under a provideragreement shall provide written notice to the department ofjoband family services at least forty-five days prior to enteringinto anycontract of sale for the facility or voluntarilyterminatingparticipation in the medical assistance program.Afterthe dateon which a transaction of sale is closed, the ~~owner~~ providershallrefundto the department the amount of excess depreciationpaid tothe provider for thefacility by the department for each year the ~~owner~~ provider hasoperatedthe facility under a provider agreement and proratedaccording tothe number of medicaid patient days for which the~~facility~~ provider hasreceived payment for the facility. If an intermediate care facilityfor thementally retarded is sold after five or fewer years ofoperationunder a provider agreement, the refund to the departmentshall beequal to the excess depreciation paid to the facility.Ifanintermediate care facility for the mentally retarded is soldafter more than five years but less than ten years of operationunder a provider agreement, the refund to the department shallequal the excess depreciation paid to the facility multiplied bytwenty per cent, multiplied by the number of years less than tenthat a facility was operated under a provider agreement. If anintermediate care facility for the mentally retarded is soldafterten or more years of operation under a provider agreement,theowner shall not refund any excess depreciation to thedepartment.For the purposes of this division, "depreciationpaid to the provider for thefacility" means the amount paid to the provider for the intermediatecare facilityfor the mentally retarded for cost of ownershippursuant to thissection less any amount paid for interest costs. For the purposesof this division, "excess depreciation" is theintermediate carefacility for the mentally retarded'sdepreciated basis, which isthe ~~owner's~~ provider's cost less accumulateddepreciation, subtracted fromthe purchase price but notexceeding the amount of depreciationpaid to the provider for the facility.

A cost report shall be filed with the department withinninety days after the date on which the transaction of sale isclosed or participation is voluntarily terminated for anintermediate care facility for the mentally retarded subject tothis division. The report shall show the accumulateddepreciation, the sales price, and other information required bythe department. Thedepartment shall provide for a bank, trustcompany, or savings and loan association to hold in escrow theamount of the last two monthly payments toan intermediate carefacility for the mentally retarded madepursuant to division(A)(1) of section 5111.22 of the RevisedCode before a sale orvoluntary termination of participationor, if the owner fails,within the time required by thisdivision, to notify thedepartment before entering into a contractof sale for thefacility, the amount of the first two monthlypayments made to the facility after the department learns of thecontract, regardlessof whether a new owner is in possession ofthe facility. If theamount the owner will berequired to refundunder this section islikely to be less thanthe amount of the two monthly paymentsotherwise put into escrow under thisdivision, the departmentshalltake one of the following actionsinstead of withholding theamount of the two monthlypayments:

~~(1) In the case of an owner that owns other facilitiesthatparticipate in the medical assistance program, obtain apromissorynote in an amount sufficient to cover the amountlikely to berefunded;~~

(2) In the case of all other owners, withhold the amountofthe last monthly payment to the intermediate care facility forthementally retardedor, if the owner fails, within the time requiredby this division, to notify the department before entering into acontract of sale for the facility, the amount of the first monthlypayment made to the facility after the department learns of thecontract, regardless of whether a new owner is in possession ofthe facility.

The department shall, within ninety days following thefilingof the cost report, audit the report and issue an auditreport tothe owner. The department also may audit any othercost reportsfor the facility that have been filed during theprevious threeyears. In the audit report, the department shallstate itsfindings and the amount of any money owed to thedepartment by theintermediate care facility for the mentallyretarded. Thefindings shall be subject to an adjudicationconducted inaccordance with Chapter 119. of the Revised Code. No later thanfifteen days after the owner agrees to asettlement, any fundsheld in escrow less any amounts due to thedepartment shall bereleased to the owner and amounts due to thedepartment shall bepaid to the department. If the amounts inescrow are less thanthe amounts due to the department, thebalance shall be paid tothe department within fifteen days afterthe owner agrees to asettlement. If the department does notissue its audit reportwithin the ninety-day period, thedepartment shall release anymoney held in escrow to the owner. For the purposes of thissection, a transfer of corporate stock,the merger of onecorporation into another, or a consolidationdoes not constitute asale.

If an intermediate care facility for the mentally retardedisnot sold or its participation is not terminated after noticeisprovided to the department under this division, the departmentshall order any payments held in escrow released to the facility upon receiving written notice from the owner that there will benosale or termination of participation. After written notice isreceived from an intermediate care facility for the mentallyretarded that a sale or termination of participation will nottakeplace, the facility shall provide notice to the departmentatleast forty-five days prior to entering into any contract ofsaleor terminating participation at any future time.

(I) The department of job and family services shall pay a provider foreach of the provider'seligible proprietary intermediate care ~~facility~~ facilities for the mentallyretarded a return on the facility's net equity computed at therate of one and one-half times the average of interest rates onspecial issues of public debt obligations issued to the federalhospital insurance trust fund for the cost reporting period. Nofacility's return on net equity paid under this division shallexceed one dollar per patient day.

In calculating the rate for return on net equity, thedepartment shall use the greater of the facility's inpatient daysduring the applicable cost reporting period or the number ofinpatient days the facility would have had during that period ifits occupancy rate had been ninety-five per cent.

(J)(1) Except as provided in division(J)(2) of thissection, if aprovider leases or transfers an interest in afacility to another provider whois arelated party, the relatedparty's allowable cost of ownershipshall include the lesser ofthe following:

(a) The annual lease expense oractual cost of ownership,whichever is applicable;

(2) If a provider leases or transfers an interest in afacility to another provider who is a related party, regardless ofthe date ofthe leaseor transfer, the related party's allowablecost of ownershipshall include the annual lease expense or actualcost ofownership, whichever is applicable, subject to thelimitationsspecified in divisions (B) to(I) of this section, ifall of thefollowing conditions are met:

(b) In the case of a lease, if the lessor retains anyownershipinterest, it is, except as provided in division(J)(2)(d)(ii) of this section, inonly the real property and anyimprovements on the realproperty;

(c) In the case of a transfer, theprovider making thetransfer retains, except as provided indivision (J)(2)(d)(iv) ofthissection, no ownership interest inthe facility;

(d) The department of job and family servicesdeterminesthat the lease or transfer is an arm's lengthtransactionpursuantto rules ~~the department shall adopt inaccordance with Chapter119.~~ adopted under section 5111.02 of the Revised Code ~~nolater thanDecember 31, 2000~~. Therules shallprovide that a lease or transfer is an arm's lengthtransaction if all ofthe following, as applicable, apply:

(i) In the case of a lease, once the lease goes into effect,thelessor has no direct or indirect interest in the lessee or,except asprovided in division (J)(2)(b) of this section, thefacility itself, including interest as an owner, officer,director, employee,independent contractor, orconsultant, butexcluding interest as a lessor.

(ii) In the case of a lease, the lessor does not reacquireaninterest in the facility except through the exercise of alessor's rights inthe event of a default. If the lessorreacquires an interest in the facility in this manner, thedepartment shall treat the facility as if the lease never occurredwhen the department calculates its reimbursement rates for capitalcosts.

(iii) In the case of a transfer, once the transfer goes intoeffect, the provider that made the transfer has no direct orindirect interestin the provider thatacquires the facility orthe facility itself, including interest as an owner,officer,director,employee, independent contractor, or consultant, butexcludinginterest as a creditor.

(iv) In the case of a transfer, the provider that made thetransfer does not reacquire an interest in the facility exceptthrough the exercise of a creditor's rights in theevent of adefault. If the provider reacquires an interest in thefacilityin this manner, the department shall treat the facilityas if thetransfer never occurred when the department calculatesitsreimbursement rates for capital costs.

(e) Except in the case of hardshipcaused by a catastrophicevent, as determined by the department,or in the case of a lessoror provider making the transfer who is at leastsixty-five yearsof age, not less than twenty years have elapsed since, forthesame facility, allowable cost of ownership was determinedmostrecently under this division.

Sec. 5111.254. (A) The department of job and family services shallestablish initial rates for a nursing facility with a first date oflicensure that is on or after July 1, 2006, including afacility that replaces one or more existing facilities, or for anursing facility with a first date of licensure before that date that wasinitially certified for the medicaid program on orafter that date, in the following manner:

(1) The rate for direct care costs shall be the product of the cost per case-mix unit determined under division (D) of section 5111.231 of the Revised Code for the facility's peer group and the nursing facility's case-mix score. For the purpose of division (A)(1) of this section, the nursing facility's case-mix score shall be the following:

(a) Unless the nursing facility replaces an existing nursing facility that participated in the medicaid program immediately before the replacement nursing facility begins participating in the medicaid program, the median annual average case-mix score for the nursing facility's peer group;

(b) If the nursing facility replaces an existing nursing facility that participated in the medicaid program immediately before the replacement nursing facility begins participating in the medicaid program, the semiannual case-mix score most recently determined under section 5111.232 of the Revised Code for the replaced nursing facility as adjusted, if necessary, to reflect any difference in the number of beds in the replaced and replacement nursing facilities.

(2) The rate for ancillary and support costs shall be therate for the facility's peer group determined under division (D) of section 5111.24 of the Revised Code.

(3) The rate for capital costs shall be the median rate for the facility's peer group determined under division (D) ofsection 5111.25 of the Revised Code.

(4) The rate for tax costs as defined in section 5111.242 of the Revised Code shall be the median rate for tax costs for the facility's peer group in which the facility is placed under division (C) of section 5111.24 of the Revised Code.

(5) The quality incentive payment shall be the mean payment specified in division (B) of section 5111.244 of the Revised Code.

(B) Subject to division (C) of this section, the department shall adjust the rates establishedunder division (A) of this section effective the first day of July, to reflect new ratecalculations for all nursing facilities under sections 5111.20 to 5111.33 of the Revised Code.

(C) If a rate for direct care costs is determined under this section for a nursing facility using the median annual average case-mix score for the nursing facility's peer group, the rate shall be redetermined to reflect the replacement nursing facility's actual semiannual case-mix score determined under section 5111.232 of the Revised Code after the nursing facility submits its first two quarterly assessment data that qualify for use in calculating a case-mix score in accordance with rules authorized by division (E) of section 5111.232 of the Revised Code. If the nursing facility's quarterly submissions do not qualify for use in calculating a case-mix score, the department shall continue to use the median annual average case-mix score for the nursing facility's peer group in lieu of the nursing facility's semiannual case-mix score until the nursing facility submits two consecutive quarterly assessment data that qualify for use in calculating a case-mix score.

Sec. 5111.255. (A) The department of job and family services shallestablish initial rates for ~~a nursing facility or~~ an intermediatecare facility for the mentally retarded with a first date oflicensure that is on or after January 1, 1993, including afacility that replaces one or more existing facilities, or for ~~anursing facility or~~ an intermediate care facility for the mentallyretarded with a first date of licensure before that date that wasinitially certified for the ~~medical assistance~~ medicaid program on orafter that date, in the following manner:

(a) If there are no cost or resident assessment data asnecessary to calculate a rate under section 5111.23 of theRevised Code, the rate shall be the median cost per case-mix unitcalculated under division (B)(1) of that section for the relevantpeer group for the calendar year preceding the fiscal year inwhich the rate will be paid, multiplied by the median annual averagecase-mix score for the peer group for that period and by the rateof inflation estimated under division (B)~~(5)~~(3) of that section. This rate shall be recalculated to reflect the facility's actualquarterly average case-mix score, in accordance with thatsection, after itsubmits its first quarterly assessment ~~information~~ data that qualifiesfor use in calculating a case-mix score in accordance with rules~~adopted under~~ authorized by division ~~(D)~~(E) of section ~~5111.231~~ 5111.232 of the RevisedCode. If the facility's first two quarterly submissions do notcontain assessment ~~information~~ data that qualifies for use incalculating a case-mix score, the department shall continue tocalculate the rate using the median annual case-mix score for thepeer group in lieu of an assigned quarterly case-mix score. Thedepartment shall assign a case-mix score or, if necessary, a costper case-mix unit under division ~~(C)~~(D) of section ~~5111.231~~ 5111.232 of theRevised Code for any subsequent submissions that do not containassessment ~~information~~ data that qualifies for use in calculating acase-mix score.

(b) If the facility is a replacement facility and thefacility or facilities that are being replaced are in operationimmediately before the replacement facility opens, the rate shallbe the same as the rate for the replaced facility or facilities,proportionate to the number of beds in each replaced facility. If one or more of the replaced facilities is not in operationimmediately before the replacement facility opens, its proportionshall be determined under division (A)(1)(a) of this section.

(2) The rate for other protected costs shall be onehundred fifteen per cent of the median rate for ~~the applicabletype of facility~~ intermediate care facilities for the mentally retarded calculated for the fiscal year under section5111.235 of the Revised Code.

(3) The rate for indirect care costs shall be theapplicable maximum rate for the facility's peer group asspecified in division (B) of section ~~5111.24 or division (B) ofsection~~ 5111.241 of the Revised Code.

(4) The rate for capital costs shall be determined undersection ~~5111.25 or~~ 5111.251 of the Revised Code using the greaterof actual inpatient days or an imputed occupancy rate of eightyper cent.

(B) The department shall adjust the rates establishedunder division (A) of this section at both of the followingtimes:

(1) Effective the first day of July, to reflect new ratecalculations for all facilities under sections ~~5111.23~~ 5111.20 to ~~5111.25and 5111.251~~ 5111.33 of the Revised Code;

(2) Following the ~~facility's~~ provider's submission of ~~its~~ the facility's cost reportunder division (A)(1)(b) of section 5111.26 of the Revised Code.

The department shall pay the rate adjusted based on thecost report beginning the first day of the calendar quarter thatbegins more than ninety days after the department receives thecost report.

Sec. 5111.257. If a provider of a nursing facility adds or replaces one or more medicaid certified beds to or at the nursing facility, or renovates one or more of the nursing facility's beds, the rate for the added, replaced, or renovated beds shall be the same as the rate for the nursing facility's existing beds.

Sec. ~~5111.257~~ 5111.258. (A) Notwithstanding sections ~~5111.23,5111.231, 5111.235, 5111.24, 5111.241, 5111.25, 5111.251, and5111.255~~ 5111.20 to 5111.33 of the Revised Code, the director ofjob and family servicesshall adopt rules ~~in accordance with Chapter 119.~~ under section 5111.02 of the RevisedCode that establish a methodology for calculating the prospectiverates ~~for direct care costs, other protected costs, indirect carecosts, and capital costs~~ that will be paid each fiscal year to a provider for each of the provider's eligiblenursing facilities and intermediate care facilities for thementally retarded, and discrete units of the provider's nursing facilities orintermediate care facilities for the mentally retarded, thatserve residents who have diagnoses or special care needs thatrequire direct care resources that are not measured adequately bythe applicable assessment instrument specified in rules ~~adoptedunder~~ authorized by section ~~5111.231~~ 5111.232 of the Revised Code, or who have diagnosesor special care needs specified in the rules as otherwisequalifying for consideration under this section. The facilitiesand units of facilities whose rates are established under thisdivision may include, but shall not be limited to, any of thefollowing:

(1) In the case of nursing facilities, facilities andunits of facilities that serve medically fragile pediatricresidents, residents who are dependent on ventilators, orresidents who have severe traumatic brain injury, end-stageAlzheimer's disease, or end-stage acquired immunodeficiencysyndrome;

(2) In the case of intermediate care facilities for thementally retarded, facilities and units of facilities that serveresidents who have complex medical conditions or severebehavioral problems.

The department shall use the methodology established underthis division to pay for services rendered by such facilities andunits after June 30, 1993.

The rules ~~adopted under~~ authorized by this division shall specify thecriteria and procedures the department will apply whendesignating facilities and units that qualify for calculation ofrates under this division. The criteria shall includeconsideration of whether all of the allowable costs of thefacility or unit would be paid by rates established undersections ~~5111.23, 5111.231, 5111.235, 5111.24, 5111.241, 5111.25,5111.251, and 5111.255~~ 5111.20 to 5111.33 of the Revised Code, and shall establish aminimum bed size for a facility or unit to qualify to have itsrates established under this division. The criteria shall not bedesigned to require that residents be served only in facilitieslocated in large cities. The methodology established by therules shall consider the historical costs of providing care tothe residents of the facilities or units.

The rules may require that a facility designated under thisdivision or containing a unit designated under this divisionreceive authorization from the department to admit or retain aresident to the facility or unit and shall specify the criteriaand procedures the department will apply when granting thatauthorization.

Notwithstanding any other provision of sections 5111.20 to~~5111.32~~ 5111.33 of the Revised Code, the costs incurred by facilities orunits whose rates are established under this division shall notbe considered in establishing payment rates for other facilitiesor units.

(B) The director may adopt rules ~~in accordance withChapter 119.~~ under section 5111.02 of the Revised Code under which the department,notwithstanding any other provision of sections 5111.20 to~~5111.32~~ 5111.33 of the Revised Code, may adjust the rates determinedunder sections ~~5111.23~~ 5111.20 to ~~5111.255~~ 5111.33 of the Revised Code for afacility that serves a resident who has a diagnosis or specialcare need that, in the rules ~~adopted under~~ authorized by division (A) of thissection, would qualify a facility or unit of a facility to haveits rate determined under that division, but who is not in such aunit. The rules may require that a facility that qualifies for arate adjustment under this division receive authorization fromthe department to admit or retain a resident who qualifies thefacility for the rate adjustment and shall specify the criteriaand procedures the department will apply when granting thatauthorization.

Sec. 5111.26. (A)(1)(a) Except as provided in division(A)(1)(b) of this section, each ~~nursing facility and intermediatecare facility for the mentally retarded~~ provider shall file with thedepartment of job and family services an annual cost report ~~prepared~~ for each of the provider's nursing facilities and intermediate care facilities for the mentally retarded that participate in the medicaid program. A provider shall prepare the reports inaccordance with guidelines established by the department. ~~The~~ Areport shall cover a calendar year or the portion of a calendaryear during which the facility participated in the ~~medicalassistance~~ medicaid program. ~~All facilities~~ A provider shall file the reportswithin ninety days after the end of the calendar year. Thedepartment, for good cause, may grant a fourteen-day extension ofthe time for filing cost reports upon written request from a~~facility~~ provider. The director of job and family servicesshall prescribe, in rules adopted ~~inaccordance with Chapter 119.~~ under section 5111.02 of the Revised Code, the costreporting form and a uniform chart of accounts for the purpose ofcost reporting, and shall distribute cost reporting forms orcomputer software for electronic submission of the cost report toeach ~~nursing facility and intermediate care facility for thementally retarded~~ provider at least sixty days before the ~~facility's~~reporting date.

(b) ~~A facility for which~~ If rates ~~are~~ for a provider's nursing facility or intermediate care facility for the mentally retarded were most recently established undersection 5111.254 or 5111.255 of the Revised Code, the provider shall submit a cost report for that facilityno later than ninety days after the end of the facility's firstthree full calendar months of operation. A If a nursing facility or intermediate care facility for the mentally retarded undergoes a change of provider that the department determines, in accordance with rules adopted under section 5111.02 of the Revised Code, is an arm's length transaction, the new provider shall submit a cost report for that facility not later than ninety days after the end of the facility's first three full calendar months of operation under the new provider. The provider of a facility that opens or undergoes a change of provider that is an arm's length transactionafter the first day of October in any calendar year is notrequired to file a cost report for that calendar year.

(c) If a nursing facility undergoes a change of provider that the department determines, in accordance with rules adopted under section 5111.02 of the Revised Code, is not an arms length transaction, the new provider shall file a cost report under division (A)(1)(a) of this section for the facility. The cost report shall cover the portion of the calendar year during which the new provider operated the nursing facility and the portion of the calendar year during which the previous provider operated the nursing facility.

(2) If a ~~nursing facility or intermediate care facilityfor the mentally retarded~~ provider required to submit a cost ~~reports~~ report for a nursing facility or intermediate care facility for the mentally retarded doesnot file the ~~reports~~ report within the required time ~~periods~~ period or withinfourteen days thereafter if an extension is granted underdivision (A)(1)(a) of this section, or files an incomplete orinadequate report for the facility, the department shall provide immediate writtennotice to the ~~facility~~ provider that ~~its~~ the provider agreement for the facility will beterminated in thirty days unless the ~~facility~~ provider submits a completeand adequate cost report for the facility within thirty days. During thethirty-day termination period or any additional time allowed foran appeal of the proposed termination of a provider agreement,the ~~facility~~ provider shall be paid ~~its~~ the facility's then current per resident per dayrate, minus two dollars. On July 1, 1994, the department shalladjust the two-dollar reduction to reflect the rate of inflationduring the preceding twelve months, as shown in the consumerprice index for all items for all urban consumers for the northcentral region, published by the United States bureau of laborstatistics. On July 1, 1995, and the first day of July of eachyear thereafter, the department shall adjust the amount of thereduction in effect during the previous twelve months to reflectthe rate of inflation during the preceding twelve months, asshown in the same index.

(B) No ~~nursing facility or intermediate care facility forthe mentally retarded~~ provider shall report fines paid under sections5111.35 to 5111.62 or section 5111.99 of the Revised Code in anycost report filed under this section.

(C) The department shall develop an addendum to the costreport form that a ~~nursing facility or intermediate care facilityfor the mentally retarded~~ provider may use to set forth costs that the~~facility~~ provider believes may be disputed by the department. Any costsreported by the ~~facility~~ provider on the addendum may be considered by thedepartment in setting the facility's rate. If the departmentdoes not consider the costs listed on the addendum in setting thefacility's rate, the ~~facility~~ provider may seek reconsideration of thatdetermination under section 5111.29 of the Revised Code. If thedepartment subsequently includes the costs listed in the addendumin the facility's rate, the department shall pay the ~~facility~~ provider interest at areasonable rate established in rules adopted ~~in accordance with Chapter 119.~~ under section 5111.02of the Revised Code for the time that the rate paid excluded the costs.

Sec. 5111.261. Except as otherwise provided in ~~sections5111.262 to~~ section 5111.264 of the Revised Code, the department of job andfamily services, in determining whether an intermediate care facility for the mentally retarded's direct care costs and indirectcare costs are allowable, shall place no limit on specificcategories of reasonable costs other than compensation of owners,compensation of relatives of owners, compensation ofadministrators and costs for resident meals that are prepared andconsumed outside the facility.

Compensation cost limits for owners and relatives of ownersshall be based on compensation costs for individuals who holdcomparable positions but who are not owners or relatives ofowners, as reported on facility cost reports. As used in thissection, "comparable position" means the position that is held bythe owner or the owner's relative, if that position is listedseparately on the cost report form, or if the position is notlisted separately, the group of positions that is listed on thecost report form and that includes the position held by the owneror the owner's relative. In the case of an owner or owner'srelative who serves the facility in a capacity such as corporateofficer, proprietor, or partner for which no comparable positionor group of positions is listed on the cost report form, thecompensation cost limit shall be based on civil serviceequivalents and shall be specified in rules adopted ~~by thedirector of job and family services in accordancewith Chapter 119.~~ under section 5111.02 of the Revised Code.

Compensation cost limits for administrators shall be basedon compensation costs for administrators who are not owners orrelatives of owners, as reported on facility cost reports.Compensation cost limits for administrators of four or moreintermediate care facilities for the mentally retarded shall bethe same as the limits for administrators of ~~nursing facilitiesor~~ intermediate care facilities for the mentally retarded withone hundred fifty or more beds.

For nursing facilities, cost limits for resident meals thatare prepared and consumed outside the facility shall be based onthe statewide average cost of serving and preparing meals in allnursing facilities, as reported on the facility cost reports. For intermediate care facilities for the mentally retarded, costlimits for resident meals that are prepared and consumed outsidethe facility shall be based on the statewide average cost ofserving and preparing meals in all intermediate care facilitiesfor the mentally retarded, as reported on the facility costreports.

Sec. 5111.263. (A) As used in this section, "coveredtherapy services" means physical therapy, occupational therapy,audiology, and speech therapy services that are provided byappropriately licensed therapists or therapy assistants and thatare covered for nursing facility residents either by the medicareprogram established under Title XVIII ~~of the "Social SecurityAct," 49 Stat. 620 (1935), 42 U.S.C.A. 301, as amended,~~ or the~~medical assistance~~ medicaid program as specified in rules adopted by thedirector of job and familyservices ~~in accordance with Chapter 119.~~ under section 5111.02 ofthe Revised Code.

(B) Except as provided in division (G) of this section,the costs of therapy are not allowable costs for nursingfacilities for the purpose of determining rates under sections~~5111.23, 5111.231, 5111.235, 5111.24, 5111.241, 5111.25,5111.251, 5111.255, and 5111.257~~ 5111.20 to 5111.33 of the Revised Code.

(C) The department of job and family services shallprocess noclaims for payment under the ~~medical assistance~~ medicaid program forcovered therapy services rendered to a resident of a nursingfacility other than such claims submitted, in accordance withthis section, by a nursing facility that hasa valid provider agreement with the department.

(D) ~~Nursing~~ Providers of nursing facilities ~~that have entered into a provideragreement~~ may bill the department of job and family services for coveredtherapy services ~~it provides~~ the nursing facilities provide to residents of any nursing facilitywho are medicaid recipients ~~of the medical assistance program~~ and noteligible for the medicare program.

(E) The department shall not process any claim for acovered therapy service provided to a nursing facility residentwho is eligible for the medicare program unless the claim is fora copayment or deductible or the conditions in division (E)(1) or(2) of this section apply:

(1) The covered therapy service provided is, under thefederal statutes, regulations, or policies governing the medicareprogram, not covered by the medicare program and the service is,under the provisions of this chapter or the rules adopted underthis chapter, covered by the ~~medical assistance~~ medicaid program.

(a) The individual or entity who provided the coveredtherapy service was eligible to bill the medicare program for theservice.

(b) A complete, accurate, and timely claim was submittedto the medicare program and the program denied payment for theservice as not medically necessary for the resident. For thepurposes of division (E)(2)(b) of this section, a claim is notconsidered to have been denied by the medicare program untileither a denial has been issued following a medicare fair hearingor six months have elapsed since the request for a fair hearingwas filed.

(c) The facility is required to provide or arrange for theprovision of the service by a licensed therapist or therapyassistant to be in compliance with federal or state nursingfacility certification requirements for the ~~medical assistance~~medicaid program.

(d) The claim for payment for the services under the~~medical assistance~~ medicaid program is accompanied by documentation thatdivisions (E)(2)(b) and (c) of this section apply to the service.

(F) The reimbursement allowed by the department forcovered therapy services provided to nursing facility residentsand billed under division (D) or (E) of this section shall befifteen per cent less than the fees it pays for the same servicesrendered to hospital outpatients. The director mayadopt rules~~in accordance with Chapter 119.~~ under section 5111.02 of the Revised Code establishingcomparable fees for covered therapy services that are notincluded in its schedule of fees paid for services rendered tohospital outpatients.

(G) A nursing facility's reasonable costs forrehabilitative, restorative, or maintenance therapy servicesrendered to facility residents by nurses or nurse aides, and thefacility's overhead costs to support provision of therapyservices provided to nursing facility residents, are allowablecosts for the purposes of establishing rates under sections~~5111.23, 5111.231, 5111.235, 5111.24, 5111.241, 5111.25,5111.251, 5111.255, and 5111.257~~ 5111.20 to 5111.33 of the Revised Code.

Sec. 5111.264. Except as provided in section 5111.25 or~~5111.264~~ 5111.251of the Revised Code, the costs of goods, services, and facilities, furnishedto aprovider by a related party are includable in the allowable costs of theprovider at the reasonable cost to the related party.

Sec. 5111.265. If one or more medicaid-certified beds are relocated from one nursing facility to another nursing facility owned by a different person or government entity and the application for the certificate of need authorizing the relocation is filed with the director of health on or after the effective date of this section, amortization of the cost of acquiring operating rights for the relocated beds is not an allowable cost for the purpose of determining the nursing facility's medicaid reimbursement rate.

Sec. 5111.266. A provider of a nursing facility filing the facility's cost report with the department of job and family services under section 5111.26 of the Revised Code shall report as a nonreimbursable expense the cost of the nursing facility's franchise permit fee.

Sec. 5111.27. (A) The department of job and familyservices shallconduct a desk review of each cost report it receives undersection 5111.26 of the Revised Code. Based on the desk review,the department shall make a preliminary determination of whetherthe reported costs are allowable costs. The department shallnotify each ~~nursing facility and intermediate care facility forthe mentally retarded~~ provider of whether any of ~~its~~ the reported costs arepreliminarily determined not to be allowable, the ratecalculation under sections ~~5111.23~~ 5111.20 to ~~5111.257~~ 5111.33 of the RevisedCode that results from that determination, and the reasons forthe determination and resulting rate. The department shall allowthe ~~facility~~ provider to verify the calculation and submit additionalinformation.

(B) The department may conduct an audit, as defined by rule adopted ~~by thedirector of job and familyservices in accordance with Chapter 119.~~ under section 5111.02 of theRevised Code, of any cost report and shall notify the ~~nursingfacility or intermediate care facility for the mentally retarded~~provider of its findings.

Audits shall be conducted by auditors under contract withor employed by the department. The decision whether to conductan audit and the scope of the audit, which may be a desk or fieldaudit, shall be determined based on prior performance of theprovider and may be based on a risk analysis or other evidencethat gives the department reason to believe that the provider hasreported costs improperly. A desk or field audit may beperformed annually, but is required whenever a provider does notpass the risk analysis tolerance factors. The department shallissue the audit report no later than three years after the costreport is filed, or upon the completion of a desk or field auditon the report or a report for a subsequent cost reporting period,whichever is earlier. During the time within which thedepartment may issue an audit report, the provider may amend thecost report upon discovery of a material error or materialadditional information. The department shall review the amendedcost report for accuracy and notify the provider of itsdetermination.

The department may establish a contract for the auditing offacilities by outside firms. Each contract entered into bybidding shall be effective for one to two years. The departmentshall establish an audit manual and program which shall requirethat all field audits, conducted either pursuant to a contract orby department employees:

(1) Comply with the applicable rules prescribed pursuantto Titles XVIII and XIX ~~of the "Social Security Act," 49 Stat.620 (1935), 42 U.S.C.A. 301, as amended~~;

(2) Consider generally accepted auditing standardsprescribed by the American institute of certified publicaccountants;

(3) Include a written summary as to whether the costsincluded in the report examined during the audit are allowableand are presented fairly in accordance with generally acceptedaccounting principles and department rules, and whether, in allmaterial respects, allowable costs are documented, reasonable,and related to patient care;

(4) Are conducted by accounting firms or auditors who,during the period of the auditors' professional engagement oremployment and during the period covered by the cost reports, donot have nor are committed to acquire any direct or indirectfinancial interest in the ownership, financing, or operation of anursing facility or intermediate care facility for the mentallyretarded in this state;

(5) Are conducted by accounting firms or auditors who, asa condition of the contract or employment, shall not audit anyfacility that has been a client of the firm or auditor;

(6) Are conducted by auditors who are otherwiseindependent as determined by the standards of independenceestablished by the American institute of certified publicaccountants;

(8) Provide to the ~~nursing facility or intermediate carefacility for the mentally retarded~~ provider complete writteninterpretations that explain in detail the application of allrelevant contract provisions, regulations, auditing standards,rate formulae, and departmental policies, with explanations andexamples, that are sufficient to permit the ~~facility~~ provider to calculatewith reasonable certainty those costs that are allowable and therate to which the provider's facility is entitled.

For the purposes of division (B)(4) of this section, employment of a member ofan auditor's family by a nursing facility or intermediate care facility forthe mentally retarded that the auditor does not review does not constitute adirect or indirect financial interest in the ownership, financing, oroperation of the facility.

(C) The department, pursuant to rules adopted ~~inaccordance with Chapter 119.~~ under section 5111.02 of the Revised Code, may conduct anexception review of assessment ~~information~~ data submitted undersection ~~5111.231~~ 5111.232 of the Revised Code. The department may conductan exception review based on the findings of a certificationsurvey conducted by the department of health, a risk analysis, orprior performance of the provider.

Exception reviews shall be conducted at the facility byappropriate health professionals under contract with or employed by thedepartment of job and family services. The professionals may reviewresident assessmentforms and supporting documentation, conduct interviews, andobserve residents to identify any patterns or trends ofinaccurate assessments and resulting inaccurate case-mix scores.

The rules shall establish an exception review program thatrequires that exception reviews do all of the following:

(2) Provide a written summary that states whether theresident assessment forms have been completed accurately;

(3) Are conducted by health professionals who, during theperiod of their professional engagement or employment with the department,neither have nor are committed to acquire any direct or indirectfinancial interest in the ownership, financing, or operation of anursing facility or intermediate care facility for the mentallyretarded in this state;

(4) Are conducted by health professionals who, as acondition of their engagement or employment with the department, shall notreview any~~facility~~ provider that has been a client of the professional.

For the purposes of division (C)(3) of this section, employment of a member ofa health professional's family by a nursing facility or intermediate carefacility for the mentally retarded that the professional does not review doesnot constitute a direct or indirect financial interest in the ownership,financing, or operation of the facility.

If an exception review is conducted before the effectivedate of the rate that is based on the case-mix ~~information~~ datasubject to the review and the review results in findings thatexceed tolerance levels specified in the rules adopted under thisdivision, the department, in accordance with those rules, may usethe findings to recalculate individual resident case-mix scores,quarterly average facility case-mix scores, and annual averagefacility case-mix scores. The department may use therecalculated quarterly and annual facility average case-mixscores to calculate the facility's rate for direct care costs forthe appropriate calendar quarter or quarters.

(D) The department shall prepare a written summary of anyaudit disallowance or exception review finding that is made afterthe effective date of the rate that is based on the cost orcase-mix ~~information~~ data. Where the ~~facility~~ provider is pursuing judicial oradministrative remedies in good faith regarding the disallowanceor finding, the department shall not withhold from the ~~facility's~~provider's current payments any amounts the department claims to be due fromthe ~~facility~~ provider pursuant to section 5111.28 of the Revised Code.

(E) The department shall not reduce rates calculated undersections ~~5111.23~~ 5111.20 to ~~5111.28~~ 5111.33 of the Revised Code on the basis thatthe ~~facility~~ provider charges a lower rate to any resident who is noteligible for the ~~medical assistance~~ medicaid program.

(F) The department shall adjust the rates calculated undersections ~~5111.23~~ 5111.20 to ~~5111.28~~ 5111.33 of the Revised Code to account forreasonable additional costs that must be incurred by nursingfacilities and intermediate care facilities for the mentallyretarded to comply with requirements of federal or statestatutes, rules, or policies enacted or amended after January 1,1992, or with orders issued by state or local fire authorities.

Sec. 5111.28. (A) If a provider properly amends its costreport under section 5111.27 of the Revised Code and the amendedreport shows that the provider received a lower rate under theoriginal cost report than it was entitled to receive, thedepartment of job and family services shall adjust the provider's rate prospectively toreflect the corrected information. The department shall pay theadjusted rate beginning two months after the first day of themonth after the provider files the amended cost report. If thedepartment finds, from an exception review of resident assessmentinformation conducted after the effective date of the rate fordirect care costs that is based on the assessment information,that inaccurate assessment information resulted in the providerreceiving a lower rate than it was entitled to receive, thedepartment prospectively shall adjust the provider's rateaccordingly and shall make payments using the adjusted rate forthe remainder of the calendar quarter for which the assessmentinformation is used to determine the rate, beginning one monthafter the first day of the month after the exception review iscompleted.

(B) If the provider properly amends its cost report undersection 5111.27 of the Revised Code, the department makes afinding based on an audit under that section, or the departmentmakes a finding based on an exception review of residentassessment information conducted under that section after theeffective date of the rate for direct care costs that is based onthe assessment information, any of which results in adetermination that the provider has received a higher rate thanitwas entitled to receive, the department shall recalculate theprovider's rate using the revised information. The departmentshall apply the recalculated rate to the periods when theproviderreceived the incorrect rate to determine the amount oftheoverpayment. The provider shall refund the amount of theoverpayment.

In addition to requiring a refund under this division, thedepartment may charge the provider interest at the applicableratespecified in this division from the time the overpayment wasmade.

(1) If the overpayment resulted from costs reported forcalendar year 1993, the interest shall be no greater than one andone-half times the average bank prime rate.

(2) If the overpayment resulted from costs reported forsubsequent calendar years:

(a) The interest shall be no greater than two times theaverage bank prime rate if the overpayment was equal to or lessthan one per cent of the total medicaid payments to the providerfor the fiscal year for which the incorrect information was usedto establish a rate.

(b) The interest shall be no greater than two and one-halftimes thecurrent average bank prime rate if the overpayment wasgreaterthan one per cent of the total medicaid payments to theproviderfor the fiscal year for which the incorrect informationwas usedto establish a rate.

(1) If a provider does not furnish invoices or otherdocumentation that the department requests during an audit withinsixty days after the request, no more than the greater of onethousand dollars per audit or twenty-five per cent of thecumulative amount by which the costs for which documentation wasnot furnished increased the total medicaid payments to theprovider during the fiscal year for which the costs were used toestablish a rate;

(2) If an exiting operator orownerfails to provide notice of~~sale ofthe~~ afacilityor closure, voluntary termination, or voluntary withdrawal of participation in the~~medicalassistance~~ medicaid program, as required bysection~~5111.25 or 5111.251~~ 5111.66 of the Revised Code, or an exiting operator or owner and entering operator fail to provide notice of a change of operator as required by section 5111.67 ofthe RevisedCode,no more thanthe current average bank primerate plus four per cent of the lasttwomonthlypayments.

(D) If the provider continues to participate in the ~~medicalassistance~~ medicaid program, the department shall deduct any amount thatthe provider is required to refund under this section, and theamount of any interest charged or penalty imposed under thissection, from the next available payment from the department tothe provider. The department and the provider may enter into anagreement under which the amount, together with interest, isdeducted in installments from payments from the department to theprovider.

(E) The department shall transmit refunds and penalties tothe treasurer of state for deposit in the general revenue fund.

(F) For the purpose of this section, the department shalldetermine the average bank prime rate using statistical releaseH.15,"selected interest rates," a weekly publication of thefederal reserve board, or any successor publication. Ifstatistical release H.15, or its successor, ceases to contain thebank prime rate information or ceases to be published, thedepartment shall request a written statement of the average bankprime rate from the federal reserve bank of Cleveland or thefederal reserve board.

Sec. 5111.29. (A) The director ofjob and family servicesshalladopt rules ~~in accordance with Chapter 119.~~ under section 5111.02 of the RevisedCodethat establish a process under which a ~~nursing facility orintermediate care facility for the mentally retarded~~ provider, or a groupor association of ~~facilities~~ providers, may seek reconsideration of ratesestablished under sections ~~5111.23~~ 5111.20 to ~~5111.28~~ 5111.33 of the RevisedCode,including a rate for direct care costs recalculated beforetheeffective date of the rate as a result of an exception reviewofresident assessment information conducted under section5111.27 ofthe Revised Code.

(1) Except as provided in divisions (A)(2) to (4) of thissection, the only issue that a ~~facility~~ provider, group, or associationmayraise in the rate reconsideration shall be whether the ratewascalculated in accordance with sections ~~5111.23~~ 5111.20 to ~~5111.28~~ 5111.33 oftheRevised Code and the rules adopted under ~~those sections~~ section 5111.02 of the Revised Code. Therules shall permit a ~~facility~~ provider, group, or association to submitwritten arguments or other materials that support its position.The rules shall specify time frames within which the ~~facility~~ provider,group, or association and the department must act. If thedepartment determines, as a result of the rate reconsideration,that the rate established for one or more facilities of a provider is less thanthe rate to which it the facility is entitled, the departmentshall increasethe rate. If the department has paid the incorrect rate for aperiod of time, the department shall pay the ~~facility~~ provider thedifference between the amount it the provider was paid for that period for the facility and theamount it the provider should have been paid for the facility.

(2) The rules shall provide that during a fiscal year, thedepartment, by means of the rate reconsideration process, mayincrease ~~a facility's~~ the rate determined for an intermediate care facility for the mentally retarded as calculated under sections ~~5111.23~~5111.20 to~~5111.28~~ 5111.33 of the Revised Code if the provider of the facility demonstrates that~~its~~the facility's actual, allowable costs have increased because of extremecircumstances. A facility may qualify for a rate increase onlyif~~its~~ the facility's per diem, actual, allowable costs have increased to alevelthat exceeds its total rate~~, including any efficiency incentiveand return on equity payment~~. The rules shall specifythecircumstances that would justify a rate increase underdivision(A)(2) of this section.~~In the case of nursing facilities, the~~ The rules shall provide that the extreme circumstances includeincreased security costs for an inner-city nursing facility and anincrease in workers'compensation experience rating of greaterthan five per cent for a facility that has an appropriate claimsmanagement program but do notinclude a change of ownership thatresults from bankruptcy,foreclosure, or findings of violations ofcertificationrequirements by the department of health. In thecase ofintermediate care facilities for the mentally retarded,the rulesshall provide thatthe extreme circumstances include,but are notlimited to, natural disasters,renovations approved under division (D) ofsection5111.251 ofthe Revised Code, an increase in workers'compensationexperiencerating of greater than five per cent for afacilitythat has anappropriate claims management program,increasedsecurity costsfor an inner-city facility, and a changeofownershipthatresults from bankruptcy, foreclosure,orfindingsof violationsof certification requirements by thedepartment ofhealth. Anincrease under division (A)(2) of thissection issubject to anyrate limitations or maximum ratesestablished bysections ~~5111.23~~5111.20 to ~~5111.28~~ 5111.33 of the Revised Code forspecific costcenters. Anyrate increase granted under division(A)(2) of thissection shalltake effect on the first day of thefirst monthafter thedepartment receives the request.

(3) The rules shall provide that the department, throughtherate reconsideration process, may increase ~~a facility's~~ an intermediate care facility for the mentally retarded's rateascalculated under sections ~~5111.23~~ 5111.20 to ~~5111.28~~ 5111.33 of the RevisedCodeif the department, in ~~its~~ the department's sole discretion, determines thattherate as calculated under those sections works an extremehardshipon the facility.

(4) The rules shall provide that when beds certified forthe~~medical assistance~~ medicaid program are added to an existing intermediate care facility, for the mentally retarded orreplaced at the same site, ~~or subject to a change ofownership orlease,~~ the department, through the rate reconsiderationprocess,shall increase the ~~facility's~~ intermediate care facility for the mentally retarded's rate for capital costsproportionately, as limited by any applicable limitation undersection ~~5111.25 or~~ 5111.251 of the Revised Code, to account forthe costs of the beds that are added, or replaced~~, or subject to achange ofownership or lease~~. The department shall makethisincrease one month after the first day of the month after thedepartment receives sufficient documentation of the costs. Anyrate increase granted under division (A)(4) ofthis section afterJune 30, 1993, shall remain in effectuntil the effective date ofa rate calculated under section~~5111.25 or~~ 5111.251 of the RevisedCode that includes costs incurred for a fullcalendar year for thebed addition, or bed replacement~~, or change ofownership or lease~~.The facility shall report doubleaccumulateddepreciation in anamount equal to the depreciation included inthe rate adjustmenton its cost report for the first year ofoperation. During theterm of anyloan used to finance a projectforwhich a rateadjustment is granted under division(A)(4) ofthis section, ifthefacility is operated by the same provider,the ~~facility~~ provider shallsubtract from the interest costs it reports onits cost reportanamount equal to the difference between thefollowing:

(a) The actual, allowable interestcosts for the loan duringthe calendar year for which the costsare being reported;

(b) The actual, allowable interestcosts attributable to theloan that were used to calculate therates paid to the provider for the facilityduring the same calendar year.

(5) The department's decision at the conclusion of thereconsideration process shall not be subject to anyadministrativeproceedings under Chapter 119. or any otherprovision of theRevised Code.

(B) ~~Any~~ All of the following are subject to an adjudication conducted in accordance with Chapter 119. of the Revised Code:

(1) Any audit disallowance that the department makes astheresult of an audit under section 5111.27 of the Revised Code~~,any~~;

(2) Anyadverse finding that results from an exception review ofresidentassessment information conducted under ~~that~~ section 5111.27 of the Revised Codeafter theeffective date of the facility's rate that is based ontheassessment information~~, and any~~;

(3) Any medicaid payment deemed an overpayment under section 5111.683 of the Revised Code;

(4) Any penalty the departmentimposesunder division (C) of section 5111.28 of the Revised Code~~shall besubject to an adjudication conducted in accordance withChapter119.~~ or section 5111.683 of the Revised Code.

Sec. 5111.291. Notwithstanding sections 5111.20 to ~~5111.29~~ 5111.33 of the RevisedCode, the department of job and family services may compute the rate forintermediatecare facilities for the mentally retarded operated by the department of mentalretardation and developmental disabilities or the department of mental healthaccording to the reasonable cost principles of Title XVIII ~~of the "SocialSecurity Act," 49 Stat. 620 (1935), 42 U.S.C.A. 1395, as amended~~.

Sec. 5111.30. The department of job and family services shall terminatethe provideragreement with a ~~nursing facility or intermediate care facilityfor thementally retarded~~ provider that does not comply with the requirements ofsection3721.071 of the Revised Code for the installation of fireextinguishing andfire alarm systems.

Sec. 5111.31. (A) Every provider agreement with the provider of a nursingfacility or intermediate care facility for the mentally retardedshall:

(1) Prohibit the ~~facility~~ provider from failing or refusing toretain as a patient any person because the person is,becomes, or may, as a patient in the facility, become a medicaid recipient ~~ofassistance under the medical assistance program~~. For the purposes of thisdivision, a medicaid recipient ~~of medical assistance~~ who is a patient in afacility shall be considered a patient in the facility during anyhospital stays totaling less than twenty-five days during anytwelve-month period. Recipients who have been identified by thedepartment of job and family services or its designee as requiring thelevel of care of an intermediate care facility for the mentallyretarded shall not be subject to a maximum period of absencesduring which they are considered patients if prior authorizationof the department for visits with relatives and friends andparticipation in therapeutic programs is obtained under rulesadopted under section 5111.02 of the Revised Code.

(2) ~~Include~~ Except as provided by division (B)(1) of this section, include any part of the facility that meets standardsfor certification of compliance with federal and state laws andrules for participation in the ~~medical assistance~~ medicaid program, exceptthat nursing facilities that, during the period beginning July 1,1987, and ending July 1, 1993, added beds licensed as nursinghome beds under Chapter 3721. of the Revised Code are notrequired to include those beds under a provider agreement unlessotherwise required by federal law. Once added to the provideragreement, however, those nursing home beds may not be removedunless the facility withdraws from the medical assistance programin its entirety.

(3) Prohibit the ~~facility~~ provider from discriminating against anypatient on the basis of race, color, sex, creed, or nationalorigin.

(4) Except as otherwise prohibited under section 5111.55of the Revised Code, prohibit the ~~facility~~ provider from failing orrefusing to accept a patient because the patient is, becomes,or may, as a patient in the facility, become a medicaid recipient ~~of assistance underthe medical assistance program~~ if less than eighty per cent ofthe patients in the facility are medicaid recipients ~~of medicalassistance~~.

(B)(1) Except as provided by division (B)(2) of this section, the following are not required to be included in a provider agreement unless otherwise required by federal law:

(a) Beds added during the period beginning July 1, 1987, and ending July 1, 1993, to a nursing home licensed under Chapter 3721. of the Revised Code;

(b) Beds in an intermediate care facility for the mentally retarded that are designated for respite care under a medicaid waiver component operated pursuant to a waiver sought under section 5111.87 of the Revised Code.

(2) If a provider chooses to include a bed specified in division (B)(1) of this section in a provider agreement, the bed may not be removed from the provider agreement unless the provider withdraws the facility in which the bed is located from the medicaid program.

(C) Nothing in this section shall bar ~~any~~ a provider that is a religious organization operating a religious ordenominational nursing facility or intermediate care facility forthe mentally retarded ~~that is operated, supervised, or controlledby a religious organization~~ from giving preference to persons ofthe same religion or denomination. Nothing in this section shallbar any ~~facility~~ provider from giving preference to persons with whom itthe provider has contracted to provide continuing care.

~~(C)~~(D) Nothing in this section shall bar ~~any~~ the provider of a county homeorganized under Chapter 5155. of the Revised Code from admittingresidents exclusively from the county in which the county home islocated.

~~(D)~~(E) No provider of a nursing facility or intermediate care facility forthe mentally retarded ~~with~~ for which a provider agreement is ineffect shall violate the provider contract obligations imposedunder this section.

~~(E)~~(F) Nothing in divisions (A) and ~~(B)~~(C) of this section shallbar ~~any nursing facility or intermediate care facility for thementally retarded~~ a provider from retaining patients who have resided in theprovider's facility for not less than one year as private pay patients andwho subsequently become medicaid recipients ~~of assistance under themedicaid program~~, but refusing to accept as a patient any personwho is or may, as a patient in the facility, become a medicaid recipient~~of assistance under the medicaid program~~, if all of the followingapply:

(1) The ~~facility~~ provider does not refuse to retain any patient whohas resided in the provider's facility for not less than one year as aprivate pay patient because the patient becomes a medicaid recipient~~of assistance under the medicaid program~~, except as necessary to comply withdivision ~~(E)~~(F)(2) of this section;

(2) The number of medicaid recipients retained under thisdivision does not at any time exceed ten per cent of all thepatients in the facility;

Sec. 5111.32. Any patient has a cause of action against the provider of anursing facility orintermediate care facility for the mentally retarded for breachof the provideragreement obligations or other duties imposed by section 5111.31of the RevisedCode. The action may be commenced by the patient, or on ~~his~~ thepatient's behalf by ~~his~~ the patient'ssponsor or a residents' rights advocate, as either is definedunder section3721.10 of the Revised Code, by the filing of a civil action inthecourt of commonpleas of the county in which the facility is located, or in thecourt of commonpleas of Franklin county.

If the court finds that a breach of the provider agreementobligations imposedby section 5111.31 of the Revised Code has occurred, the courtmay enjoin the~~facility~~ provider from engaging in the practice, order such affirmativerelief as may benecessary, and award to the patient and a person or public agencythat bringsan action on behalf of a patient actual damages, costs, andreasonableattorney's fees.

Sec. 5111.33. Reimbursement to ~~nursing facilities andintermediate care facilities for the mentally retarded~~ a provider undersections 5111.20 to 5111.32 of the Revised Code shall includepayments to ~~facilities~~ the provider, at a rate equal to the percentage of theper resident per day rates that the department of job and familyserviceshas established for the provider's nursing facility or intermediate care facility for the mentally retarded under sections ~~5111.23~~ 5111.20 to~~5111.29~~ 5111.33 of the Revised Code for the fiscal year for which thecost of services is reimbursed, to reserve a bed for a recipientduring a temporary absence under conditions prescribed by thedepartment, to include hospitalization for an acute condition,visits with relatives and friends, and participation intherapeutic programs outside the facility, when the resident'splan of care provides for such absence and federal participationin the payments is available. The maximum period during whichpayments may be made to reserve a bed shall not exceed themaximum period specified under federal regulations, and shall notbe more than thirty days during any calendar year for hospitalstays, visits with relatives and friends, and participation intherapeutic programs. Recipients who have been identified by thedepartment as requiring the level of care of an intermediate carefacility for the mentally retarded shall not be subject to amaximum period during which payments may be made to reserve a bedif prior authorization of the department is obtained for hospitalstays, visits with relatives and friends, and participation intherapeutic programs. The director of job and familyservices shall adopt rules under~~division (B) of~~ section 5111.02 of the Revised Code establishingconditions under which prior authorization may be obtained.

Sec. 5111.34. The director of job and family services shall prepare an annual report containing recommendations on the methodology that should be used to transition paying providers of nursing facilities the rate determined for nursing facilities for one fiscal year to the immediately succeeding fiscal year. The director shall submit a copy of the annual report to the governor, the president and minority leader of the senate, and the speaker and minority leader of the house of representatives not later than the first day of each October.

Sec. 5111.62. The proceeds of all fines, includinginterest, collected under sections 5111.35 to 5111.62 of theRevised Code shall be deposited in the state treasury to thecredit of the residents protection fund, which is hereby created.~~Moneys~~ The proceeds of all fines, including interest, collected under section 173.42 of the Revised Code shall be deposited in the state treasury to the credit of the residents protection fund.

Moneys in the fund shall be used for the protection of thehealth or property of residents of nursing facilities in whichthe department of health finds deficiencies, including paymentfor the costs of relocation of residents to other facilities,maintenance of operation of a facility pending correction ofdeficiencies or closure, and reimbursement of residents for theloss of money managed by the facility under section 3721.15 ofthe Revised Code. ~~The~~

The fund shall be maintained and administeredby the department of job and family services under rules developedin consultation with the departments of health andaging and adopted by the director ofjob and family services underChapter 119. of the Revised Code.

(A) "Change of operator" means an entering operator becoming the operator of a nursing facility or intermediate care facility for the mentally retarded in the place of the exiting operator.

(a) A change in an exiting operator's form of legal organization, including the formation of a partnership or corporation from a sole proprietorship;

(b) A transfer of all the exiting operator's ownership interest in the operation of the facility to the entering operator, regardless of whether ownership of any or all of the real property or personal property associated with the facility is also transferred;

(c) A lease of the facility to the entering operator or the exiting operator's termination of the exiting operator's lease;

(e) If the exiting operator is a partnership, a change in composition of the partnership unless both of the following apply:

(i) The change in composition does not cause the partnership's dissolution under state law.

(ii) The partners agree that the change in composition does not constitute a change in operator.

(f) If the operator is a corporation, dissolution of the corporation, a merger of the corporation into another corporation that is the survivor of the merger, or a consolidation of one or more other corporations to form a new corporation.

(a) A contract for an entity to manage a nursing facility or intermediate care facility for the mentally retarded as the operator's agent, subject to the operator's approval of daily operating and management decisions;

(b) A change of ownership, lease, or termination of a lease of real property or personal property associated with a nursing facility or intermediate care facility for the mentally retarded if an entering operator does not become the operator in place of an exiting operator;

(c) If the operator is a corporation, a change of one or more members of the corporation's governing body or transfer of ownership of one or more shares of the corporation's stock, if the same corporation continues to be the operator.

(B) "Effective date of a change of operator" means the day the entering operator becomes the operator of the nursing facility or intermediate care facility for the mentally retarded.

(C) "Effective date of a facility closure" means the last day that the last of the residents of the nursing facility or intermediate care facility for the mentally retarded resides in the facility.

(D) "Effective date of a voluntary termination" means the day the intermediate care facility for the mentally retarded ceases to accept medicaid patients.

(E) "Effective date of a voluntary withdrawal of participation" means the day the nursing facility ceases to accept new medicaid patients other than the individuals who reside in the nursing facility on the day before the effective date of the voluntary withdrawal of participation.

(F) "Entering operator" means the person or government entity that will become the operator of a nursing facility or intermediate care facility for the mentally retarded when a change of operator occurs.

(1) An operator that will cease to be the operator of a nursing facility or intermediate care facility for the mentally retarded on the effective date of a change of operator;

(2) An operator that will cease to be the operator of a nursing facility or intermediate care facility for the mentally retarded on the effective date of a facility closure;

(3) An operator of an intermediate care facility for the mentally retarded that is undergoing or has undergone a voluntary termination;

(4) An operator of a nursing facility that is undergoing or has undergone a voluntary withdrawal of participation.

(H)(1) "Facility closure" means discontinuance of the use of the building, or part of the building, that houses the facility as a nursing facility or intermediate care facility for the mentally retarded that results in the relocation of all of the facility's residents. A facility closure occurs regardless of any of the following:

(a) The operator completely or partially replacing the facility by constructing a new facility or transferring the facility's license to another facility;

(b) The facility's residents relocating to another of the operator's facilities;

(c) Any action the department of health takes regarding the facility's certification under Title XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396, as amended, that may result in the transfer of part of the facility's survey findings to another of the operator's facilities;

(d) Any action the department of health takes regarding the facility's license under Chapter 3721. of the Revised Code;

(e) Any action the department of mental retardation and developmental disabilities takes regarding the facility's license under section 5123.19 of the Revised Code.

(2) A facility closure does not occur if all of the facility's residents are relocated due to an emergency evacuation and one or more of the residents return to a medicaid-certified bed in the facility not later than thirty days after the evacuation occurs.

(I) "Fiscal year," "intermediate care facility for the mentally retarded," "nursing facility," "operator," "owner," and "provider agreement" have the same meanings as in section 5111.20 of the Revised Code.

(J) "Voluntary termination" means an operator's voluntary election to terminate the participation of an intermediate care facility for the mentally retarded in the medicaid program but to continue to provide service of the type provided by a residential facility as defined in section 5123.19 of the Revised Code.

(K) "Voluntary withdrawal of participation" means an operator's voluntary election to terminate the participation of a nursing facility in the medicaid program but to continue to provide service of the type provided by a nursing facility.

Sec. 5111.651. Sections 5111.65 to 5111.688 of the Revised Code do not apply to a nursing facility or intermediate care facility for the mentally retarded that undergoes a facility closure, voluntary termination, voluntary withdrawal of participation, or change of operator on or before September 30, 2005, if the exiting operator provided written notice of the facility closure, voluntary termination, voluntary withdrawal of participation, or change of operator to the department of job and family services on or before June 30, 2005.

Sec. 5111.66. An exiting operator or owner of a nursing facility or intermediate care facility for the mentally retarded participating in the medicaid program shall provide the department of job and family services written notice of a facility closure, voluntary termination, or voluntary withdrawal of participation not less than ninety days before the effective date of the facility closure, voluntary termination, or voluntary withdrawal of participation. The written notice shall include all of the following:

(A) The name of the exiting operator and, if any, the exiting operator's authorized agent;

(B) The name of the nursing facility or intermediate care facility for the mentally retarded that is the subject of the written notice;

(C) The exiting operator's medicaid provider agreement number for the facility that is the subject of the written notice;

(D) The effective date of the facility closure, voluntary termination, or voluntary withdrawal of participation;

Sec. 5111.661. An operator shall comply with section 1919(c)(2)(F) of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396r(c)(2)(F) if the operator's nursing facility undergoes a voluntary withdrawal of participation.

Sec. 5111.67. (A) An exiting operator or owner and entering operator shall provide the department of job and family services written notice of a change of operator if the nursing facility or intermediate care facility for the mentally retarded participates in the medicaid program and the entering operator seeks to continue the facility's participation. The written notice shall be provided to the department not later than forty-five days before the effective date of the change of operator if the change of operator does not entail the relocation of residents. The written notice shall be provided to the department not later than ninety days before the effective date of the change of operator if the change of operator entails the relocation of residents. The written notice shall include all of the following:

(1) The name of the exiting operator and, if any, the exiting operator's authorized agent;

(2) The name of the nursing facility or intermediate care facility for the mentally retarded that is the subject of the change of operator;

(3) The exiting operator's medicaid provider agreement number for the facility that is the subject of the change of operator;

(6) The manner in which the entering operator becomes the facility's operator, including through sale, lease, merger, or other action;

(7) If the manner in which the entering operator becomes the facility's operator involves more than one step, a description of each step;

(8) Written authorization from the exiting operator or owner and entering operator for the department to process a provider agreement for the entering operator;

(B) The entering operator shall include a completed application for a provider agreement with the written notice to the department. The entering operator shall attach to the application the following:

(1) If the written notice is provided to the department before the date the exiting operator or owner and entering operator complete the transaction for the change of operator, all the proposed leases, management agreements, merger agreements and supporting documents, and sales contracts and supporting documents relating to the facility's change of operator;

(2) If the written notice is provided to the department on or after the date the exiting operator or owner and entering operator complete the transaction for the change of operator, copies of all the executed leases, management agreements, merger agreements and supporting documents, and sales contracts and supporting documents relating to the facility's change of operator.

Sec. 5111.671. The department of job and family services may enter into a provider agreement with an entering operator that goes into effect at 12:01 a.m. on the effective date of the change of operator if all of the following requirements are met:

(A) The department receives a properly completed written notice required by section 5111.67 of the Revised Code on or before the date required by that section.

(B) The entering operator furnishes to the department copies of all the fully executed leases, management agreements, merger agreements and supporting documents, and sales contracts and supporting documents relating to the change of operator not later than ten days after the effective date of the change of operator.

Sec. 5111.672. (A) The department of job and family services may enter into a provider agreement with an entering operator that goes into effect at 12:01 a.m. on the date determined under division (B) of this section if all of the following are the case:

(1) The department receives a properly completed written notice required by section 5111.67 of the Revised Code.

(2) The entering operator furnishes to the department copies of all the fully executed leases, management agreements, merger agreements and supporting documents, and sales contracts and supporting documents relating to the change of operator.

(3) The requirement of division (A)(1) of this section is met after the time required by section 5111.67 of the Revised Code, the requirement of division (A)(2) of this section is met more than ten days after the effective date of the change of operator, or both.

(4) The entering operator is eligible for medicaid payments as provided in section 5111.21 of the Revised Code.

(B) The department shall determine the date a provider agreement entered into under this section is to go into effect as follows:

(1) The effective date shall give the department sufficient time to process the change of operator, assure no duplicate payments are made, make the withholding required by section 5111.681 of the Revised Code, and withhold the final payment to the exiting operator until one hundred eighty days after either of the following:

(a) The date that the exiting operator submits to the department a properly completed cost report under section 5111.682 of the Revised Code;

(b) The date that the department waives the cost report requirement of section 5111.682 of the Revised Code.

(2) The effective date shall be not earlier than the later of the effective date of the change of operator or the date that the exiting operator or owner and entering operator comply with section 5111.67 of the Revised Code.

(3) The effective date shall be not later than the following after the later of the dates specified in division (B)(2) of this section:

(a) Forty-five days if the change of operator does not entail the relocation of residents;

Sec. 5111.673. A provider that enters into a provider agreement with the department of job and family services under section 5111.671 or 5111.672 of the Revised Code shall do all of the following:

(B) Comply with section 5111.22 of the Revised Code and all other applicable state statutes and rules;

(C) Comply with all the terms and conditions of the exiting operator's provider agreement, including, but not limited to, all of the following:

(3) Compliance with the ownership and financial interest disclosure requirements of 42 C.F.R. 455.104, 455.105, and 1002.3;

(4) Compliance with the civil rights requirements of 45 C.F.R. parts 80, 84, and 90;

(6) Any sanctions relating to remedies for violation of the provider agreement, including deficiencies, compliance periods, accountability periods, monetary penalties, notification for correction of contract violations, and history of deficiencies.

Sec. 5111.674. In the case of a change of operator, the exiting operator shall be considered to be the operator of the nursing facility or intermediate care facility for the mentally retarded for purposes of the medicaid program, including medicaid payments, until the effective date of the entering operator's provider agreement if the provider agreement is entered into under section 5111.671 or 5111.672 of the Revised Code.

Sec. 5111.675. The department of job and family services may enter into a provider agreement as provided in section 5111.22 of the Revised Code, rather than section 5111.671 or 5111.672 of the Revised Code, with an entering operator if the entering operator does not agree to a provider agreement that satisfies the requirements of division (C) of section 5111.673 of the Revised Code. The department may not enter into the provider agreement unless the department of health certifies the nursing facility or intermediate care facility for the mentally retarded under Title XIX of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396, as amended. The effective date of the provider agreement shall not precede any of the following:

Sec. 5111.676. The director of job and family services may adopt rules in accordance with Chapter 119. of the Revised Code governing adjustments to the medicaid reimbursement rate for a nursing facility or intermediate care facility for the mentally retarded that undergoes a change of operator. No rate adjustment resulting from a change of operator shall be effective before the effective date of the entering operator's provider agreement. This is the case regardless of whether the provider agreement is entered into under section 5111.671, section 5111.672, or, pursuant to section 5111.675, section 5111.22 of the Revised Code.

Sec. 5111.677. Neither of the following shall affect the department of job and family services' determination of whether or when a change of operator occurs or the effective date of an entering operator's provider agreement under section 5111.671, section 5111.672, or, pursuant to section 5111.675, section 5111.22 of the Revised Code:

(A) The department of health's determination that a change of operator has or has not occurred for purposes of licensure under Chapter 3721. of the Revised Code;

(B) The department of mental retardation and developmental disabilities' determination that a change of operator has or has not occurred for purposes of licensure under section 5123.19 of the Revised Code.

Sec. 5111.68. (A) On receipt of a written notice under section 5111.66 of the Revised Code of a facility closure, voluntary termination, or voluntary withdrawal of participation or a written notice under section 5111.67 of the Revised Code of a change of operator, the department of job and family services shall determine the amount of any overpayments made under the medicaid program to the exiting operator, including overpayments the exiting operator disputes, and other actual and potential debts the exiting operator owes or may owe to the department and United States centers for medicare and medicaid services under the medicaid program. In determining the exiting operator's other actual and potential debts to the department under the medicaid program, the department shall include all of the following that the department determines is applicable:

(2) Interest owed to the department and United States centers for medicare and medicaid services;

(3) Final civil monetary and other penalties for which all right of appeal has been exhausted;

(4) Money owed the department and United States centers for medicare and medicaid services from any outstanding final fiscal audit, including a final fiscal audit for the last fiscal year or portion thereof in which the exiting operator participated in the medicaid program.

(B) If the department is unable to determine the amount of the overpayments and other debts for any period before the effective date of the entering operator's provider agreement or the effective date of the facility closure, voluntary termination, or voluntary withdrawal of participation, the department shall make a reasonable estimate of the overpayments and other debts for the period. The department shall make the estimate using information available to the department, including prior determinations of overpayments and other debts.

Sec. 5111.681. (A) Except as provided in division (B) of this section, the department of job and family services shall withhold the greater of the following from payment due an exiting operator under the medicaid program:

(1) The total amount of any overpayments made under the medicaid program to the exiting operator, including overpayments the exiting operator disputes, and other actual and potential debts, including any unpaid penalties, the exiting operator owes or may owe to the department and United States centers for medicare and medicaid services under the medicaid program;

(2) An amount equal to the average amount of monthly payments to the exiting operator under the medicaid program for the twelve-month period immediately preceding the month that includes the last day the exiting operator's provider agreement is in effect or, in the case of a voluntary withdrawal of participation, the effective date of the voluntary withdrawal of participation.

(B) The department may choose not to make the withholding under division (A) of this section if an entering operator does both of the following:

(1) Enters into a nontransferable, unconditional, written agreement with the department to pay the department any debt the exiting operator owes the department under the medicaid program;

(2) Provides the department a copy of the entering operator's balance sheet that assists the department in determining whether to make the withholding under division (A) of this section.

Sec. 5111.682. (A) Except as provided in division (B) of this section, an exiting operator shall file with the department of job and family services a cost report not later than ninety days after the last day the exiting operator's provider agreement is in effect or, in the case of a voluntary withdrawal of participation, the effective date of the voluntary withdrawal of participation. The cost report shall cover the period that begins with the day after the last day covered by the operator's most recent previous cost report required by section 5111.26 of the Revised Code and ends on the last day the exiting operator's provider agreement is in effect or, in the case of a voluntary withdrawal of participation, the effective date of the voluntary withdrawal of participation. The cost report shall include, as applicable, all of the following:

(1) The sale price of the nursing facility or intermediate care facility for the mentally retarded;

(2) A final depreciation schedule that shows which assets are transferred to the buyer and which assets are not transferred to the buyer;

(B) The department, at its sole discretion, may waive the requirement that an exiting operator file a cost report in accordance with division (A) of this section.

Sec. 5111.683. If an exiting operator required by section 5111.682 of the Revised Code to file a cost report with the department of job and family services fails to file the cost report in accordance with that section, all payments under the medicaid program for the period the cost report is required to cover are deemed overpayments until the date the department receives the properly completed cost report. The department may impose on the exiting operator a penalty of one hundred dollars for each calendar day the properly completed cost report is late.

Sec. 5111.684. The department of job and family services may not provide an exiting operator final payment under the medicaid program until the department receives all properly completed cost reports the exiting operator is required to file under sections 5111.26 and 5111.682 of the Revised Code.

Sec. 5111.685. The department of job and family services shall determine the actual amount of debt an exiting operator owes the department under the medicaid program by completing all final fiscal audits not already completed and performing all other appropriate actions the department determines to be necessary. The department shall issue a debt summary report on this matter not later than ninety days after the date the exiting operator files the properly completed cost report required by section 5111.682 of the Revised Code with the department or, if the department waives the cost report requirement for the exiting operator, ninety days after the date the department waives the cost report requirement. The report shall include the department's findings and the amount of debt the department determines the exiting operator owes the department and United States centers for medicare and medicaid services under the medicaid program. Only the parts of the report that are subject to an adjudication as specified in section 5111.30 of the Revised Code are subject to an adjudication conducted in accordance with Chapter 119. of the Revised Code.

Sec. 5111.686. The department of job and family services shall release the actual amount withheld under division (A) of section 5111.681 of the Revised Code, less any amount the exiting operator owes the department and United States centers for medicare and medicaid services under the medicaid program, as follows:

(A) Ninety-one days after the date the exiting operator files a properly completed cost report required by section 5111.682 of the Revised Code unless the department issues the report required by section 5111.685 of the Revised Code not later than ninety days after the date the exiting operator files the properly completed cost report;

(B) Not later than thirty days after the exiting operator agrees to a final fiscal audit resulting from the report required by section 5111.685 of the Revised Code if the department issues the report not later than ninety days after the date the exiting operator files a properly completed cost report required by section 5111.682 of the Revised Code;

(C) Ninety-one days after the date the department waives the cost report requirement of section 5111.682 of the Revised Code unless the department issues the report required by section 5111.685 of the Revised Code not later than ninety days after the date the department waives the cost report requirement;

(D) Not later than thirty days after the exiting operator agrees to a final fiscal audit resulting from the report required by section 5111.685 of the Revised Code if the department issues the report not later than ninety days after the date the department waives the cost report requirement of section 5111.682 of the Revised Code.

Sec. 5111.687. The department of job and family services, at its sole discretion, may release the amount withheld under division (A) of section 5111.681 of the Revised Code if the exiting operator submits to the department written notice of a postponement of a change of operator, facility closure, voluntary termination, or voluntary withdrawal of participation and the transactions leading to the change of operator, facility closure, voluntary termination, or voluntary withdrawal of participation are postponed for at least thirty days but less than ninety days after the date originally proposed for the change of operator, facility closure, voluntary termination, or voluntary withdrawal of participation as reported in the written notice required by section 5111.66 or 5111.67 of the Revised Code. The department shall release the amount withheld if the exiting operator submits to the department written notice of a cancellation or postponement of a change of operator, facility closure, voluntary termination, or voluntary withdrawal of participation and the transactions leading to the change of operator, facility closure, voluntary termination, or voluntary withdrawal of participation are canceled or postponed for more than ninety days after the date originally proposed for the change of operator, facility closure, voluntary termination, or voluntary withdrawal of participation as reported in the written notice required by section 5111.66 or 5111.67 of the Revised Code.

After the department receives a written notice regarding a cancellation or postponement of a facility closure, voluntary termination, or voluntary withdrawal of participation, the exiting operator or owner shall provide new written notice to the department under section 5111.66 of the Revised Code regarding any transactions leading to a facility closure, voluntary termination, or voluntary withdrawal of participation at a future time. After the department receives a written notice regarding a cancellation or postponement of a change of operator, the exiting operator or owner and entering operator shall provide new written notice to the department under section 5111.67 of the Revised Code regarding any transactions leading to a change of operator at a future time.

Sec. 5111.688. The director of job and family services may adopt rules under section 5111.02 of the Revised Code to implement sections 5111.65 to 5111.688 of the Revised Code, including rules applicable to an exiting operator that provides written notification under section 5111.66 of the Revised Code of a voluntary withdrawal of participation. Rules adopted under this section shall comply with section 1919(c)(2)(F) of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396r(c)(2)(F), regarding restrictions on transfers or discharges of nursing facility residents in the case of a voluntary withdrawal of participation. The rules may prescribe a medicaid reimbursement methodology and other procedures that are applicable after the effective date of a voluntary withdrawal of participation that differ from the reimbursement methodology and other procedures that would otherwise apply.

Sec. 5111.85. (A) As used in this section and sections 5111.851 to 5111.856 of the Revised Code,"medicaidwaiver component" means a component of the medicaid programauthorized by a waiver granted by the United States department ofhealth and human services under section 1115 or 1915 of the"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.A. 1315 or1396n."Medicaid waiver component" does not include a caremanagement system established under section 5111.16 of the Revised Code.

(B) The director of job and family services may adoptrulesunder Chapter 119. of the Revised Code governing medicaidwaivercomponents that establish all of the following:

(2) The type, amount, duration, and scope of services themedicaid waiver components provide;

(4) The amount the medicaid waiver components pay forservices or the method by which the amount is determined;

(6) Safeguards for the health and welfare of medicaidrecipients receiving services under a medicaid waiver component;

(7) Procedures for enforcing the rules, includingestablishing corrective action plans for, and imposing financialand administrative sanctions on, persons and government entitiesthat violate the rules. Sanctions shall include terminatingmedicaid provider agreements. The procedures shall include dueprocessprotections.

(8) Other policies necessary for the efficientadministration of the medicaid waiver components.

(C) The director of job and family services may adoptdifferent rules for the different medicaid waiver components. Therules shall be consistent with the terms of the waiver authorizingthe medicaid waiver component.

(D) The director of job and family services may conductreviews of the medicaid waiver components. The reviews mayinclude physical inspections of records and sites where servicesare provided under the medicaid waiver components and interviewsof providers and recipients of the services. If the directordetermines pursuant to a review that a person or government entityhas violated a rule governing a medicaid waiver component, thedirector mayestablish a corrective action plan for the violatorand imposefiscal, administrative, or both types of sanctions onthe violatorin accordance with rules adopted under division (B)of thissection.

Sec. 5111.851. (A) As used in sections 5111.851 to 5111.855 of the Revised Code:

"Administrative agency" means, with respect to a home and community-based services medicaid waiver component, the department of job and family services or, if a state agency or political subdivision contracts with the department under section 5111.91 of the Revised Code to administer the component, that state agency or political subdivision.

"Home and community-based services medicaid waiver component" means a medicaid waiver component under which home and community-based services are provided as an alternative to hospital, nursing facility, or intermediate care facility for the mentally retarded services.

"Intermediate care facility for the mentally retarded" has the same meaning as in section 5111.20 of the Revised Code.

"Level of care determination" means a determination of whether an individual needs the level of care provided by a hospital, nursing facility, or intermediate care facility for the mentally retarded and whether the individual, if determined to need that level of care, would receive hospital, nursing facility, or intermediate care facility for the mentally retarded services if not for a home and community-based services medicaid waiver component.

"Nursing facility" has the same meaning as in section 5111.20 of the Revised Code.

"Skilled nursing facility" means a facility certified as a skilled nursing facility under Title XVIII of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1395, as amended.

(B) The following requirements apply to each home and community-based services medicaid waiver component:

(1) Only an individual who qualifies for a component shall receive that component's services.

(2) A level of care determination shall be made as part of the process of determining whether an individual qualifies for a component and shall be made each year after the initial determination if, during such a subsequent year, the administrative agency determines there is a reasonable indication that the individual's needs have changed.

(3) A written plan of care or individual service plan based on an individual assessment of the services that an individual needs to avoid needing admission to a hospital, nursing facility, or intermediate care facility for the mentally retarded shall be created for each individual determined eligible for a component.

(4) Each individual determined eligible for a component shall receive that component's services in accordance with the individual's level of care determination and written plan of care or individual service plan.

(5) No individual may receive services under a component while the individual is a hospital inpatient or resident of a skilled nursing facility, nursing facility, or intermediate care facility for the mentally retarded.

(6) No individual may receive prevocational, educational, or supported employment services under a component if the individual is eligible for such services that are funded with federal funds provided under 29 U.S.C. 730 or the "Individuals with Disabilities Education Act," 111 Stat. 37 (1997), 20 U.S.C. 1400, as amended.

(7) Safeguards shall be taken to protect the health and welfare of individuals receiving services under a component, including safeguards established in rules adopted under section 5111.85 of the Revised Code and safeguards established by licensing and certification requirements that are applicable to the providers of that component's services.

(8) No services may be provided under a component by a provider that is subject to standards that 42 U.S.C. 1382e(e)(1) requires be established if the provider fails to comply with the standards applicable to the provider.

(9) Individuals determined to be eligible for a component, or such individuals' representatives, shall be informed of that component's services, including any choices that the individual or representative may make regarding the component's services, and given the choice of either receiving services under that component or, as appropriate, hospital, nursing facility, or intermediate care facility for the mentally retarded services.

Sec. 5111.852. The department of job and family services may review and approve, modify, or deny written plans of care and individual service plans that section 5111.851 of the Revised Code requires be created for individuals determined eligible for a home and community-based services medicaid waiver component. If a state agency or political subdivision contracts with the department under section 5111.91 of the Revised Code to administer a home and community-based services medicaid waiver component and approves, modifies, or denies a written plan of care or individual service plan pursuant to the agency's or subdivision's administration of the component, the department may review the agency's or subdivision's approval, modification, or denial and order the agency or subdivision to reverse or modify the approval, modification, or denial. The state agency or political subdivision shall comply with the department's order.

The department of job and family services shall be granted full and immediate access to any records the department needs to implement its duties under this section.

Sec. 5111.853. Each administrative agency shall maintain, for a period of time the department of job and family services shall specify, financial records documenting the costs of services provided under the home and community-based services medicaid waiver components that the agency administers, including records of independent audits. The administrative agency shall make the financial records available on request to the United States secretary of health and human services, United States comptroller general, and their designees.

Sec. 5111.854. Each administrative agency is financially accountable for funds expended for services provided under the home and community-based services medicaid waiver components that the agency administers.

Sec. 5111.855. Each state agency and political subdivision that enters into a contract with the department of job and family services under section 5111.91 of the Revised Code to administer a home and community-based services medicaid waiver component, or one or more aspects of such a component, shall provide the department a written assurance that the agency or subdivision will not violate any of the requirements of sections 5111.85 to 5111.854 of the Revised Code.

Sec. 5111.856. To the extent necessary for the efficient and economical administration of medicaid waiver components, the department of job and family services may transfer an individual enrolled in a medicaid waiver component administered by the department to another medicaid waiver component the department administers if the individual is eligible for the medicaid waiver component and the transfer does not jeopardize the individual's health or safety.

(2) "Medicaid waiver component" has the same meaning as in section 5111.85 of the Revised Code.

(3) "Nursing facility" has the same meaning as in section 5111.20 of the Revised Code.

(4) "Ohio home care program" means the program the department of job and family services administers that provides state plan services and medicaid waiver component services pursuant to rules adopted under sections 5111.01 and 5111.02 of the Revised Code and a medicaid waiver that went into effect July 1, 1998.

(B) The director of job and family services may submit ~~a request~~ requests to the United States secretary of health and human services pursuant to section 1915 of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396n, as amended, to obtain waivers of federal medicaid requirements that would otherwise be violated in the creation and implementation of two or more medicaid waiver components under which home and community-based services programs to replace the Ohio home care program being operated pursuant to rules adopted under sections 5111.01 and 5111.02 of the Revised Code and a medicaid waiver granted prior to the effective date of this section are provided to eligible individuals who need the level of care provided by a nursing facility or hospital. In the ~~request~~ requests, the director may specify the following:

(1) ~~That one of the replacement programs will provide home and community-based services to individuals in need of nursing facility care, including individuals enrolled in the Ohio home care program;~~

~~(2) That the other replacement program will provide services to individuals in need of hospital care, including individuals enrolled in the Ohio home care program;~~

~~(3) That there will be a~~ The maximum number of individuals who may be enrolled in ~~the replacement programs in addition to the number of individuals to be transferred from the Ohio home care program~~ each of the medicaid waiver components included in the requests;

~~(4) That there will be a~~ (2) The maximum amount the ~~department~~ medicaid program may expend each year for each individual enrolled in the ~~replacement programs~~ medicaid waiver components;

~~(5) That there will be a~~ (3) The maximum ~~aggregate~~ amount the ~~department~~ medicaid program may expend each year for all individuals enrolled in the ~~replacement programs~~ medicaid waiver components;

~~(6)~~(4) Any other ~~requirement~~ requirements the director selects for the ~~replacement programs~~ medicaid waiver components.

~~(B)~~(C) If the secretary ~~grants~~ approves the medicaid waivers requested under this section, the director may create and implement the ~~replacement programs~~ medicaid waiver components in accordance with the provisions of the approved waivers ~~granted~~. The department of job and family services shall administer the ~~replacement programs~~ medicaid waiver components.

As the replacement programs are implemented, the director shall reduce the maximum number of individuals who may be enrolled in the Ohio home care program by the number of individuals who are transferred to the replacement programs. When all individuals who are eligible to be transferred to the replacement programs have been transferred, the director may submit to the secretary an amendment to the state medicaid plan to provide for the elimination of the Ohio home care program.

After the first of any medicaid waiver components created under this section begins to enroll eligible individuals, the director may submit to the United States secretary of health and human services an amendment to a medicaid waiver component of the Ohio home care program authorizing the department to cease enrolling additional individuals in that medicaid waiver component of the Ohio home care program. If the secretary approves the amendment, the director may cease to enroll additional individuals in that medicaid waiver component of the Ohio home care program.

Sec. 5111.87. (A) As used in this section and section 5111.871ofthe Revised Code~~, "intermediate~~:

(1) "Intermediate care facility for the mentallyretarded" has the same meaning as in section 5111.20 of theRevised Code.

(2) "Medicaid waiver component" has the same meaning as in section 5111.85 of the Revised Code.

(B) The director of job and family services may apply to theUnited States secretary of health and human services for both of the following:

(1) One ormore medicaid ~~waivers~~ waiver components under which home and community-basedservicesare provided to individuals with mental retardation orotherdevelopmental disability as an alternative to placement inanintermediate care facility for the mentally retarded;

(2) One or more medicaid ~~waivers~~ waiver components under which home and community-based services are provided in the form of ~~either or both~~ any of the following:

(a) Early intervention and supportive services for children under three years of age ~~that are provided or arranged by county boards of mental retardation and~~ who have developmental delays or disabilities the director determines are significant;

(b) Therapeutic services for children who have autism ~~and are under six years of age at the time of enrollment~~;

(C) No medicaid waiver component authorized by division (B)(2)(b) or (c) of this section shall provide services that are available under another medicaid waiver component. No medicaid waiver component authorized by division (B)(2)(b) of this section shall provide services to an individual that the individual is eligible to receive through an individualized education program as defined in section 3323.01 of the Revised Code.

(D) The director of mental retardation and developmental disabilities or director of health may request that the director of job and family services apply for one or more medicaid waivers under this section.

~~(D)~~(E) Before applying for a waiver under this section, the director of job and family servicesshall seek, accept, and consider public comments.

Sec. 5111.871. The department of job and familyservicesshall enterintoa contract with thedepartment ofmentalretardation and developmental disabilitiesunder section5111.91of the Revised Code with regard to one or more ofthe components of themedicaidprogram established by thedepartment ofjob and familyservicesunderone or more of the medicaid waivers sought under section 5111.87 of the Revised Code. Thecontract shallprovide for thedepartment of mental retardationanddevelopmentaldisabilities toadminister the components inaccordancewith the terms ofthe waivers. Thedirectors of joband family servicesand mentalretardation and developmentaldisabilities shalladoptrules inaccordance with Chapter 119. ofthe Revised Codegoverning the components.

If the department of mental retardation and developmentaldisabilities or the department of job and family services deniesan individual's application for home and community-based servicesprovided under any of these medicaid components, the department that deniedthe services shall give timely notice to the individual that theindividualmay request a hearing under section 5101.35 of theRevised Code.

The departments of mental retardation and developmentaldisabilities and job and family services may approve, reduce,deny, or terminate a service included in the individualizedservice plan developed for a medicaid recipient eligible for homeand community-based services provided under any of these medicaid components. The departments shall consider the recommendations acounty board of mental retardation and developmental disabilitiesmakes under division (A)(1)(c) of section 5126.055 of the RevisedCode. If either department approves, reduces, denies, orterminates aservice, that department shall give timely notice tothe medicaidrecipient that the recipient may request a hearingunder section5101.35 of the Revised Code.

If supported living or residential services, as defined insection 5126.01 of the Revised Code, are to be provided under any of these components, any person or government entity with a current, validmedicaid provider agreement and a current, valid license undersection 5123.19 or certificate under section ~~5123.045~~ 5123.16 or 5126.431 of the Revised Code may provide the services.

Sec. 5111.88. (A) As used in sections 5111.88 to 5111.8812 of the Revised Code:

"Administrative agency" means the department of job and family services or, if the department assigns the day-to-day administration of the ICF/MR conversion pilot program to the department of mental retardation and developmental disabilities pursuant to section 5111.887 of the Revised Code, the department of mental retardation and developmental disabilities.

"ICF/MR conversion pilot program" means the medicaid waiver component authorized by a waiver sought under division (B)(1) of this section.

"ICF/MR services" means intermediate care facility for the mentally retarded services covered by the medicaid program that an intermediate care facility for the mentally retarded provides to a resident of the facility who is a medicaid recipient eligible for medicaid-covered intermediate care facility for the mentally retarded services.

"Intermediate care facility for the mentally retarded" has the same meaning as in section 5111.20 of the Revised Code.

"Medicaid waiver component" has the same meaning as in section 5111.85 of the Revised Code.

(B) By July 1, 2006, or as soon thereafter as practical, but not later than January 1, 2007, the director of job and family services shall, after consulting with and receiving input from the ICF/MR conversion advisory council, submit both of the following to the United States secretary of health and human services:

(1) An application for a waiver authorizing the ICF/MR conversion pilot program under which intermediate care facilities for the mentally retarded, other than such facilities operated by the department of mental retardation and developmental disabilities, may volunteer to convert from providing intermediate care facility for the mentally retarded services to providing home and community-based services and individuals with mental retardation or a developmental disability who are eligible for ICF/MR services may volunteer to receive instead home and community-based services;

(2) An amendment to the state medicaid plan to authorize the director, beginning on the first day that the ICF/MR conversion pilot program begins implementation under section 5111.882 of the Revised Code and except as provided by section 5111.8811 of the Revised Code, to refuse to enter into or amend a medicaid provider agreement with the operator of an intermediate care facility for the mentally retarded if the provider agreement or amendment would authorize the operator to receive medicaid payments for more intermediate care facility for the mentally retarded beds than the operator receives on the day before that day.

(C) The director shall notify the governor, speaker and minority leader of the house of representatives, and president and minority leader of the senate when the director submits the application for the ICF/MR conversion pilot program under division (B)(1) of this section and the amendment to the state medicaid plan under division (B)(2) of this section. The director is not required to submit the application and the amendment at the same time.

Sec. 5111.881. (A) There is hereby created the ICF/MR conversion advisory council. The council shall consist of all of the following members:

(1) Two members of the house of representatives appointed by the speaker of the house of representatives, each from a different political party;

(2) Two members of the senate appointed by the president of the senate, each from a different political party;

(4) The director of mental retardation and developmental disabilities or the director's designee;

(5) One representative of each of the following organizations, appointed by the organization:

(e) The Ohio association of county boards of mental retardation and developmental disabilities;

(B) At least four members appointed to the ICF/MR conversion advisory council, other than the members appointed under division (A)(1) or (2) of this section, shall be either of the following:

(1) A family member of an individual who, at the time of the family member's appointment, is a resident of an intermediate care facility for the mentally retarded;

(C) The speaker of the house of representatives and the president of the senate jointly shall appoint one of the members appointed under division (A)(1) or (2) of this section to serve as chair of the ICF/MR conversion advisory council.

(D) Members of the ICF/MR conversion advisory council shall receive no compensation for serving on the council.

(1) Consult with the director of job and family services before the director submits the application for the ICF/MR conversion pilot program and the amendment to the state medicaid plan under division (B) of section 5111.88 of the Revised Code;

(2) Consult with the administrative agency before the administrative agency makes adjustments to the program under division (F) of section 5111.882 of the Revised Code;

(3) Consult with the director of job and family services when the director adopts the rules for the program;

(4) Consult with the administrative agency when the administrative agency conducts the evaluation of the program and prepares the initial and final reports of the evaluation under section 5111.889 of the Revised Code.

(F) The ICF/MR conversion advisory council shall cease to exist on the issuance of the final report of the evaluation conducted under section 5111.889 of the Revised Code.

Sec. 5111.882. If the United States secretary of health and human services approves the waiver requested under division (B)(1) of section 5111.88 of the Revised Code, the administrative agency shall implement the ICF/MR conversion pilot program for not less than three years as follows:

(A) Permit no more than two hundred individuals to participate in the program at one time;

(B) Select, from among volunteers only, enough intermediate care facilities for the mentally retarded to convert from providing ICF/MR services to providing home and community-based services as necessary to accommodate each individual participating in the program and ensure that the facilities selected for conversion cease, except as provided by section 5111.8811 of the Revised Code, to provide any ICF/MR services once the conversion takes place;

(C) Subject to division (A) of this section, permit individuals who reside in an intermediate care facility for the mentally retarded that converts to providing home and community-based services to choose whether to participate in the program or to transfer to another intermediate care facility for the mentally retarded that is not converting;

(D) Ensure that no individual receiving ICF/MR services on the effective date of this section suffers an interruption in medicaid-covered services that the individual is eligible to receive;

(E) Collect information as necessary for the evaluation required by section 5111.889 of the Revised Code;

(F) After consulting with the ICF/MR conversion advisory council, make adjustments to the program that the administrative agency and, if the administrative agency is not the department of job and family services, the department agree are both necessary for the program to be implemented more effectively and consistent with the terms of the waiver authorizing the program. No adjustment may be made that expands the size or scope of the program.

Sec. 5111.883. Each individual participating in the ICF/MR conversion pilot program shall receive home and community-based services pursuant to a written individual service plan that shall be created for the individual. The individual service plan shall provide for the individual to receive home and community-based services as necessary to meet the individual's health and welfare needs.

Sec. 5111.884. Each individual participating in the ICF/MR conversion pilot program has the right to choose the qualified and willing provider from which the individual will receive home and community-based services provided under the program.

Sec. 5111.885. The administrative agency shall inform each individual participating in the ICF/MR conversion pilot program of the individual's right to a state hearing under section 5101.35 of the Revised Code regarding a decision or order the administrative agency makes concerning the individual's participation in the program.

Sec. 5111.886. The department of mental retardation and developmental disabilities may not convert any of the intermediate care facilities for the mentally retarded that the department operates to a provider of home and community-based services under the ICF/MR conversion pilot program.

Sec. 5111.887. (A) If the United States secretary of health and human services approves the waiver requested under division (B)(1) of section 5111.88 of the Revised Code, the department of job and family services may do both of the following:

(1) Contract with the department of mental retardation and developmental disabilities under section 5111.91 of the Revised Code to assign the day-to-day administration of the ICF/MR conversion pilot program to the department of mental retardation and developmental disabilities;

(2) Transfer funds to pay for the nonfederal share of the costs of the ICF/MR conversion pilot program to the department of mental retardation and developmental disabilities.

(B) If the department of job and family services takes both actions authorized by division (A) of this section, the department of mental retardation and developmental disabilities shall be responsible for paying the nonfederal share of the costs of the ICF/MR conversion pilot program.

Sec. 5111.888. The director of job and family services, in consultation with the ICF/MR conversion advisory council, shall adopt rules under section 5111.85 of the Revised Code as necessary to implement the ICF/MR conversion pilot program, including rules establishing both of the following:

(A) The type, amount, duration, and scope of home and community-based services provided under the program;

(B) The amount the program pays for the home and community-based services or the method by which the amount is determined.

Sec. 5111.889. (A) The administrative agency, in consultation with the ICF/MR conversion advisory council, shall conduct an evaluation of the ICF/MR conversion pilot program. All of the following shall be examined as part of the evaluation:

(1) The effectiveness of the home and community-based services provided under the program in meeting the health and welfare needs of the individuals participating in the program as identified in the individuals' written individual service plans;

(2) The satisfaction of the individuals participating in the program with the home and community-based services;

(3) The impact that the conversion from providing ICF/MR services to providing home and community-based services has on the intermediate care facilities for the mentally retarded that convert;

(4) The program's cost effectiveness, including administrative cost effectiveness;

(5) Feedback about the program from the individuals participating in the program, such individuals' families and guardians, county boards of mental retardation and developmental disabilities, and providers of home and community-based services under the program;

(6) Other matters the administrative agency considers appropriate for evaluation.

(B) The administrative agency, in consultation with the ICF/MR conversion advisory council, shall prepare two reports of the evaluation conducted under this section. The initial report shall be finished not sooner than the last day of the ICF/MR conversion pilot program's first year of operation. The final report shall be finished not sooner than the last day of the program's second year of operation. The administrative agency shall provide a copy of each report to the governor, president and minority leader of the senate, and speaker and minority leader of the house of representatives.

Sec. 5111.8810. The ICF/MR conversion pilot program shall not be implemented statewide unless the general assembly enacts law authorizing the statewide implementation.

Sec. 5111.8811. An intermediate care facility for the mentally retarded that converts from providing ICF/MR services to providing home and community-based services under the ICF/MR conversion pilot program may reconvert to providing ICF/MR services after the program terminates unless either of the following is the case:

(A) The program, following the general assembly's enactment of law authorizing the program's statewide implementation, is implemented statewide;

(B) The facility no longer meets the requirements for certification as an intermediate care facility for the mentally retarded.

Sec. 5111.8812. (A) Subject to division (B) of this section and beginning not later than two and one-half years after the date the ICF/MR conversion pilot program terminates, the department of mental retardation and developmental disabilities shall be responsible for a portion of the nonfederal share of medicaid expenditures for ICF/MR services provided by an intermediate care facility for the mentally retarded that reconverts to providing ICF/MR services under section 5111.8811 of the Revised Code. The portion for which the department shall be responsible shall be the portion that the department and department of job and family services specify in an agreement.

(B) The department of mental retardation and developmental disabilities shall not be responsible for any portion of the nonfederal share of medicaid expenditures for ICF/MR services incurred for any beds of an intermediate care facility for the mentally retarded that are in excess of the number of beds the facility had while participating in the ICF/MR conversion pilot program.

Sec. 5111.89. (A) As used in sections 5111.89 to 5111.893 of the Revised Code:

"Assisted living program" means the medicaid waiver component for which the director of job and family services is authorized by this section to request a medicaid waiver.

"Assisted living services" means the following home and community-based services: personal care, homemaker, chore, attendant care, companion, medication oversight, and therapeutic social and recreational programming.

"County or district home" means a county or district home operated under Chapter 5155. of the Revised Code.

"Medicaid waiver component" has the same meaning as in section 5111.85 of the Revised Code.

"Nursing facility" has the same meaning as in section 5111.20 of the Revised Code.

"Residential care facility" has the same meaning as in section 3721.01 of the Revised Code.

(B) The director of job and family services may submit a request to the United States secretary of health and human services under 42 U.S.C. 1396n to obtain a waiver of federal medicaid requirements that would otherwise be violated in the creation and implementation of a program under which assisted living services are provided to not more than one thousand eight hundred individuals who meet the program's eligibility requirements established under section 5111.891 of the Revised Code.

If the secretary approves the medicaid waiver requested under this section and the director of budget and management approves the contract, the department of job and family services shall enter into a contract with the department of aging under section 5111.91 of the Revised Code that provides for the department of aging to administer the assisted living program. The contract shall include an estimate of the program's costs.

The director of job and family services may adopt rules under section 5111.85 of the Revised Code regarding the assisted living program. The director of aging may adopt rules under Chapter 119. of the Revised Code regarding the program that the rules adopted by the director of job and family services authorize the director of aging to adopt.

Sec. 5111.891. To be eligible for the assisted living program, an individual must meet all of the following requirements:

(A) Need an intermediate level of care as determined under rule 5101:3-3-06 of the Administrative Code;

(B) At the time the individual applies for the assisted living program, be one of the following:

(1) A nursing facility resident who is seeking to move to a residential care facility and would remain in a nursing facility for long term care if not for the assisted living program;

(2) A participant of any of the following medicaid waiver components who would move to a nursing facility if not for the assisted living program:

(b) The medicaid waiver component called the choices program that the department of aging administers;

(C) At the time the individual receives assisted living services under the assisted living program, reside in a residential care facility, including both of the following:

(1) A residential care facility that is owned or operated by a metropolitan housing authority that has a contract with the United States department of housing and urban development to receive an operating subsidy or rental assistance for the residents of the facility;

(D) Meet all other eligibility requirements for the assisted living program established in rules adopted under section 5111.85 of the Revised Code.

Sec. 5111.892. A residential care facility providing services covered by the assisted living program to an individual enrolled in the program shall have staff on-site twenty-four hours each day who are able to do all of the following:

(A) Meet the scheduled and unpredicted needs of the individuals enrolled in the assisted living program in a manner that promotes the individuals' dignity and independence;

Sec. 5111.893. If the United States secretary of health and human services approves a medicaid waiver authorizing the assisted living program, the director of aging shall contract with a person or government entity to evaluate the program's cost effectiveness. The director shall provide the results of the evaluation to the governor, president and minority leader of the senate, and speaker and minority leader of the house of representatives not later than June 30, 2007.

Sec. 5111.914. (A) As used in this section, "provider" has the same meaning as in section 5111.06 of the Revised Code.

(B) If a state agency that enters into a contract with the department of job and family services under section 5111.91 of the Revised Code identifies that a medicaid overpayment has been made to a provider, the state agency may commence actions to recover the overpayment on behalf of the department.

(1) The state agency shall attempt to recover the overpayment by notifying the provider of the overpayment and requesting voluntary repayment. Not later than five business days after notifying the provider, the state agency shall notify the department in writing of the overpayment. The state agency may negotiate a settlement of the overpayment and notify the department of the settlement. A settlement negotiated by the state agency is not valid and shall not be implemented until the department has given its written approval of the settlement.

(2) If the state agency is unable to obtain voluntary repayment of an overpayment, the agency shall give the provider notice of an opportunity for a hearing in accordance with Chapter 119. of the Revised Code. If the provider timely requests a hearing in accordance with section 119.07 of the Revised Code, the state agency shall conduct the hearing to determine the legal and factual validity of the overpayment. On completion of the hearing, the state agency shall submit its hearing officer's report and recommendation and the complete record of proceedings, including all transcripts, to the director of job and family services for final adjudication. The director may issue a final adjudication order in accordance with Chapter 119. of the Revised Code. The state agency shall pay any attorney's fees imposed under section 119.092 of the Revised Code. The department of job and family services shall pay any attorney's fees imposed under section 2335.39 of the Revised Code.

(D) In any action taken by a state agency under this section that requires the agency to give notice of an opportunity for a hearing in accordance with Chapter 119. of the Revised Code, if the agency gives notice of the opportunity for a hearing but the provider subject to the notice does not request a hearing or timely request a hearing in accordance with section 119.07 of the Revised Code, the agency is not required to hold a hearing. The agency may request that the director of job and family services issue a final adjudication order in accordance with Chapter 119. of the Revised Code.

(E) This section does not preclude the department of job and family services from adjudicating a final fiscal audit under section 5111.06 of the Revised Code, recovering overpayments under section 5111.061 of the Revised Code, or making findings or taking other actions authorized by this chapter.

Sec. 5111.915. (A) The department of job and family services shall enter into an agreement with the department of administrative services for the department of administrative services to contract through competitive selection pursuant to section 125.07 of the Revised Code with a vendor to perform an assessment of the data collection and data warehouse functions of the medicaid data warehouse system, including the ability to link the data sets of all agencies serving medicaid recipients.

The assessment of the data system shall include functions related to fraud and abuse detection, program management and budgeting, and performance measurement capabilities of all agencies serving medicaid recipients, including the departments of aging, alcohol and drug addiction services, health, job and family services, mental health, and mental retardation and developmental disabilities.

The department of administrative services shall enter into this contract within thirty days after the effective date of this section. The contract shall require the vendor to complete the assessment within ninety days after the effective date of this section.

A qualified vendor with whom the department of administrative services contracts to assess the data system shall also assist the medicaid agencies in the definition of the requirements for an enhanced data system or a new data system and assist the department of administrative services in the preparation of a request for proposal to enhance or develop a data system.

(B) Based on the assessment performed pursuant to division (A) of this section, the department of administrative services shall seek a qualified vendor through competitive selection pursuant to section 125.07 of the Revised Code to develop or enhance a data collection and data warehouse system for the department of job and family services and all agencies serving medicaid recipients.

Within ninety days after the effective date of this section, the department of job and family services shall seek enhanced federal funding for ninety per cent of the funds required to establish or enhance the data system. The department of administrative services shall not award a contract for establishing or enhancing the data system until the department of job and family services receives approval from the secretary of the United States department of health and human services for the ninety per cent federal match.

Sec. ~~5111.88~~ 5111.97. (A) As used in this section and in section 5111.971 of the Revised Code,"nursing facility" has the samemeaning as in section 5111.20 of the Revised Code.

(B) To the extent funds are available, the director of job and family services may establish theOhio access success project to help medicaid recipients make thetransition from residing in a nursing facility to residing in acommunity setting. The program may be established as a separate non-medicaid program or integrated into a new or existing program of medicaid-funded home and community-based services authorized by a waiver approved by the United States department of health and human services. ~~The department~~ The director shall permit any recipient of medicaid-funded nursing facility services to apply for participation in the program, but may limit the number of program participants.If an application is received before the applicant has been a recipient of medicaid-funded nursing facility services for six months, the director shall ensure that an assessment is conducted as soon as practicable to determine whether the applicant is eligible for participation in the program. To the maximum extent possible, the assessment and eligibility determination shall be completed not later than the date that occurs six months after the applicant became a recipient of medicaid-funded nursing facility services.

(1) Be a recipientof medicaid-funded nursing facility services, at the time of applying for the benefits;

(2) ~~Have resided continuously in a nursing facility for not less than~~ ~~eighteen~~ ~~months prior to applying to participate in the project;~~

~~(4)~~ (3) For participation in a non-medicaid program, receive services to remain in the community with a projected cost not exceedingeighty per cent of the average monthly medicaid cost of amedicaid recipient in a nursing facility;

~~(5)~~ (4) For participation in a program established as part of a medicaid-funded home and community-based services waiver program, meet waiver enrollment criteria.

~~(C)~~ (D) If the director establishesthe Ohio access success project, the benefits provided under theprojectmay include payment of all of the following:

(5) Other expenses not covered by the medicaid program thatfacilitate a medicaid recipient's move from a nursing facility toa community setting.

~~(D)~~ (E) If the project is established as a non-medicaid program, no participant may receive more than two thousand dollarsworth of benefits under the project.

~~(E)~~ (F) The director may submit a request to the United States secretary of health and human services pursuant to section 1915 of the "Social Security Act," 79 Stat. 286 (1965), 42 U.S.C. 1396n, as amended, to create a medicaid home and community-based services waiver program to serve individuals who meet the criteria for participation in the Ohio access success project. The director may adopt rules under Chapter 119. of the Revised Code for the administration and operation of the program.

Sec. 5111.971. (A) As used in this section, "long-term medicaid waiver component" means any of the following:

(2) The medicaid waiver component called the choices program that the department of aging administers;

(3) A medicaid waiver component that the department of job and family services administers.

(B) The director of job and family services shall submit a request to the United States secretary of health and human services for a waiver of federal medicaid requirements that would be otherwise violated in the creation of a pilot program under which not more than two hundred individuals who meet the pilot program's eligibility requirements specified in division (D) of this section receive a spending authorization to pay for the cost of medically necessary health care services that the pilot program covers. The spending authorization shall be in an amount not exceeding seventy per cent of the average cost under the medicaid program for providing nursing facility services to an individual. An individual participating in the pilot program shall also receive necessary support services, including fiscal intermediary and other case management services, that the pilot program covers.

(C) If the United States secretary of health and human services approves the waiver submitted under division (B) of this section, the department of job and family services shall enter into a contract with the department of aging under section 5111.91 of the Revised Code that provides for the department of aging to administer the pilot program that the waiver authorizes.

(D) To be eligible to participate in the pilot program created under division (B) of this section, an individual must meet all of the following requirements:

(1) Need an intermediate level of care as determined under rule 5101:3-3-06 of the Administrative Code;

(2) At the time the individual applies to participate in the pilot program, be one of the following:

(a) A nursing facility resident who is seeking to move to a residential care facility or county or district home and who would remain in a nursing facility if not for the pilot program;

(b) A participant of any long-term medicaid waiver component who would move to a nursing facility if not for the pilot program.

(3) Meet all other eligibility requirements for the pilot program established in rules adopted under section 5111.85 of the Revised Code.

(E) The director of job and family services may adopt rules under section 5111.85 of the Revised Code as the director considers necessary to implement the pilot program created under division (B) of this section. The director of aging may adopt rules under Chapter 119. of the Revised Code as the director considers necessary for the pilot program's implementation. The rules may establish a list of medicaid-covered services not covered by the pilot program that an individual participating in the pilot program may not receive if the individual also receives medicaid-covered services outside of the pilot program.

Sec. 5111.98. (A) The director of job and family services may do all of the following as necessary for the department of job and family services to fulfill the duties it has, as the single state agency for the medicaid program, under the "Medicare Prescription Drug, Improvement, and Modernization Act of 2003" Pub. L. No. 108-173, 117 Stat. 2066:

(3) Make payments to the United States department of health and human services from appropriations made to the department of job and family services for this purpose.

(B) Rules adopted under division (A)(1) of this section shall be adopted as follows:

(1) If the rules concern the department's duties regarding service providers, in accordance with Chapter 119. of the Revised Code;

(2) If the rules concern the department's duties concerning individuals' eligibility for services, in accordance with section 111.15 of the Revised Code;

(3) If the rules concern the department's duties concerning financial and operational matters between the department and county departments of job and family services, in accordance with section 111.15 of the Revised Code as if the rules were internal management rules.

Sec. 5111.99. (A) Whoever violates division (B) of section5111.26 ordivision ~~(D)~~(E) of section 5111.31 of the Revised Code shall befined not lessthan five hundred dollars nor more than one thousand dollars forthe firstoffense and not less than one thousand dollars nor more than fivethousanddollars for each subsequent offense. Fines paid under thissection shall bedeposited in the state treasury to the credit of the generalrevenue fund.

(B) Whoever violates division (D) of section 5111.61 of theRevised Code isguilty of registering a false complaint, a misdemeanor of the first degree.

Sec. 5112.03. (A) The director of job and familyservicesshalladopt, and may amend and rescind, rules in accordance withChapter 119. of the Revised Code for the purpose of administeringsections 5112.01 to 5112.21 of the Revised Code, including rulesthat do all of the following:

(1) Define as a"disproportionate share hospital" anyhospital included under subsection (b) of section 1923 of the"Social Security Act," 49 Stat. 620(1935), 42 U.S.C.A.1396r-4(b), asamended, and any other hospital the directordetermines appropriate;

(2) Prescribe the form for submission of cost reportsundersection 5112.04 of the Revised Code;

(3) Establish, in accordance with division (A) of section5112.06 of the Revised Code, the assessment rate or ratestobeapplied to hospitals under that section;

(4) Establish schedules for hospitals to pay installmentsontheir assessments under section 5112.06 of the Revised Codeandfor governmental hospitals to pay installments on theirintergovernmental transfers under section 5112.07 of the RevisedCode;

(5) Establish procedures to notify hospitals ofadjustmentsmade under division (B)(2)(b) of section5112.06 of the RevisedCode in the amount of installments on theirassessment;

(6) Establish procedures to notify hospitals ofadjustmentsmade under division (D) of section 5112.09 of the Revised Codeinthe total amount of their assessment and toadjust for theremainder of the program year the amount of theinstallments onthe assessments;

(7) Establish, in accordance with section 5112.08 of theRevised Code,the methodology for paying hospitals under thatsection.

The director shall consult with hospitals when adopting therules required by divisions (A)(4) and (5) of this section inorder to minimize hospitals' cash flow difficulties.

(B) Rules adopted under this section may provide that"totalfacilitycosts" excludes costs associated with any of thefollowing:

(2) Recipients of financial assistance provided under Chapter 5115. of the Revised Code;

(3) ~~Recipients of medicalassistance providedunder Chapter 5115. of the Revised Code;~~

~~(4)~~ Recipients of the program for medically handicappedchildrenestablished under section 3701.023 of the Revised Code;

~~(5)~~(4) Recipients of the medicare program established underTitle XVIII ofthe"Social Security Act," 49 Stat. 620(1935), 42U.S.C.A. 301,as amended:

~~(7)~~(6) Any other category of costs deemed appropriate by thedirector inaccordance with Title XIX of the"SocialSecurity Act"and the rules adoptedunder that title.

Sec. 5112.08. The director of job and family servicesshalladoptrules under section 5112.03 of the Revised Code establishingamethodology to pay hospitals that is sufficient to expend allmoney in the indigent care pool. Under the rules:

(A) The department of job and family services mayclassifysimilar hospitals into groups and allocate funds for distributionwithin each group.

(B) The department shall establish a method of allocatingfunds to hospitals, taking into consideration therelative amountof indigent care provided by each hospital or groupof hospitals.Theamount to be allocated shall be based on anycombination ofthe following indicators of indigent care that thedirectorconsiders appropriate:

(1) Total costs, volume, or proportion of services torecipients of the medical assistance program, includingrecipientsenrolled in health insuringcorporations;

(2) Total costs, volume, or proportion of services tolow-income patients in addition to recipients of the medicalassistance program, which may include recipients of Title Vofthe"Social Security Act," 49 Stat. 620(1935), 42 U.S.C.A. 301,asamended,~~and~~ recipients of disability financial ~~or medical~~ assistance provided underChapter 5115.of the Revised Code, and recipients of disability medical assistance formerly provided under Chapter 5115. of the Revised Code;

(3) The amount of uncompensated care provided by thehospital or groupof hospitals;

(4) Other factors that the director considers to beappropriate indicators of indigent care.

(C) The department shall distribute funds toeach hospitalor group of hospitals in a manner that first mayprovide for anadditionaldistribution to individual hospitals that provide ahighproportion ofindigent care in relation to the total careprovided by thehospital or in relation to other hospitals. Thedepartment shallestablish a formula to distribute the remainderof thefunds. Theformula shall be consistent with section 1923of the"SocialSecurity Act," 42U.S.C.A. 1396r-4, asamended,shall bebased on any combination of the indicators of indigentcarelisted in division (B) of this section that thedirectorconsiders appropriate.

(D) The department shall distribute funds to eachhospitalininstallments not later than ten working days after the deadlineestablished in rules for each hospital to pay an installment onits assessment under section 5112.06 of the Revised Code. In thecase of a governmental hospital that makes intergovernmentaltransfers, the department shall pay an installment under thissection not later than ten working days after the earlier of thatdeadline or the deadline established in rules for thegovernmentalhospital to pay an installment on itsintergovernmental transfer.If the amount in the hospital careassurance program fund and thehospital care assurance match fundcreated under section 5112.18of the Revised Code is insufficientto make the totaldistributions for which hospitals areeligible toreceive in anyperiod, the department shall reduce the amount ofeachdistribution by the percentage by which the amount isinsufficient. The department shall distribute to hospitalsanyamounts notdistributed in the period in which they are due assoon asmoneys are available in the funds.

(1) "Federal poverty guideline" means the official povertyguideline as revised annually by the United States secretary ofhealth and human services in accordance with section 673 of the"Community Service Block Grant Act," 95 Stat. 511 (1981), 42U.S.C.A. 9902, as amended, for a family size equal to the size ofthe family of the person whose income is being determined.

(2) "Third-party payer" means any private or public entityor program that may be liable by law or contract to make paymentto or on behalf of an individual for health care services."Third-party payer" does not include a hospital.

(B) Each hospital that receives funds distributedunder sections 5112.01 to 5112.21 ofthe Revised Code shall provide, without charge to the individual, basic,medically necessary hospital-level services to individuals whoare residents of this state, are not recipients of the medicalassistance program, and whose income is at orbelow the federalpoverty guideline. Recipients of disability financialassistance ~~and recipients of disability medical assistance~~ provided under Chapter 5115. of the Revised Code qualify forservices under this section. The director ofjob and family servicesshall adopt rules under section 5112.03 of the Revised Codespecifying the hospital services to be provided under thissection.

(C) Nothing in this section shallbe construed to prevent a hospital from requiring an individual to apply foreligibility under the medical assistance program before the hospital processesan application under this section. Hospitals may bill anythird-partypayer for servicesrendered under this section. Hospitals may bill the medicalassistance program, in accordance with Chapter 5111. of theRevised Code and the rules adopted under that chapter, forservices rendered under this section if the individual becomes arecipient of the program. Hospitals may bill individuals forservices under this section if all of the following apply:

(1) The hospital has an established post-billing procedurefor determining the individual's income and canceling the chargesif the individual is found to qualify for services under thissection.

(2) The initial bill, and at least the first follow-upbill, is accompanied by a written statement that does all of thefollowing:

(a) Explains that individuals with income at or below thefederal poverty guideline are eligible for services withoutcharge;

(b) Specifies the federal poverty guideline forindividuals and families of various sizes at the time the bill issent;

(3) The hospital complies with any additional rules thedepartment adopts under section 5112.03 of the Revised Code.

Notwithstanding division (B) of this section, a hospitalproviding care to an individual under this section is subrogatedto the rights of any individual to receive compensation orbenefits from any person or governmental entity for the hospitalgoods and services rendered.

(D) Each hospital shall collect and report to thedepartment, in the form and manner prescribed by the department,information on the number and identity of patients servedpursuant to this section.

(E) This section applies beginning May 22, 1992,regardless of whether the department has adopted rules specifyingthe services to be provided. Nothing in this section alters thescope or limits the obligation of any governmental entity orprogram, including the program awarding reparations to victims ofcrime under sections 2743.51 to 2743.72 of the Revised Code andtheprogram for medically handicapped children established undersection 3701.023 of the Revised Code, to pay for hospital services inaccordance with state or local law.

Sec. 5112.30. As used in sections 5112.30 to 5112.39 of theRevised Code~~,"intermediate~~:

(A) "Intermediate care facility for the mentally retarded" has thesame meaning asin section 5111.20 of the Revised Code, except that it does notinclude anysuch facility operated by the department of mental retardationanddevelopmental disabilities.

Sec. 5112.31. The department of job and family services shall do all of the following:

(A) For the purpose of providing home and community-basedservices for mentally retarded and developmentally disabledpersons, annually assess each intermediate care facility for thementally retarded a franchise permit fee equal to nine dollarsand sixty-three cents multiplied by the product of the following:

(1) The number of beds certified under Title XIX of the"Social Security Act" on the first day of May of the calendaryear in which the assessment is determined pursuant to division(A) of section 5112.33 of the Revised Code;

(2) The number of days in the fiscal year beginning on thefirst day of July of the same calendar year.

(B) Beginning July 1, ~~2005~~ 2007, and the first day ofeach July thereafter, adjust fees determined under division (A) of thissection in accordance with the composite inflation factor established in rulesadopted under section 5112.39 of the Revised Code.

(C) If the United States secretary of health and human servicesdetermines that the franchise permit fee established by sections 5112.30 to5112.39 of the Revised Code would be animpermissible health care-related tax under section 1903(w) of the "SocialSecurity Act," 42 U.S.C.A. 1396b(w), as amended, ~~thedepartment shall~~ take all necessary actions tocease implementation of those sections in accordance with rules adopted undersection 5112.39 of the Revised Code.

Sec. 5112.341. (A) In addition to assessing a penalty pursuant to section 5112.34 of the Revised Code, the department of job and family services may do either of the following if an intermediate care facility for the mentally retarded fails to pay the full amount of a franchise permit fee installment when due:

(1) Withhold an amount equal to the installment and penalty assessed under section 5112.34 of the Revised Code from a medicaid payment due the facility until the facility pays the installment and penalty;

(B) The department may withhold a medicaid payment under division (A)(1) of this section without providing notice to the intermediate care facility for the mentally retarded and without conducting an adjudication under Chapter 119. of the Revised Code.

Sec. 5115.20. (A) The department of job andfamily services shall establisha disability advocacy program and each county department ofjob and family servicesshall establish a disability advocacy program unit orjoin with other county departments of job and familyservices to establisha joint county disability advocacy program unit. Through theprogram the department and county departments shallcooperate inefforts to assist applicants for and recipients of assistance under the disability financial assistance program ~~and the disability medical assistance program,~~ who might be eligiblefor supplemental security income benefits under Title XVI of the"Social Security Act," 86 Stat. 1475 (1972), 42 U.S.C.A. 1383, asamended, in applying for those benefits.

As part of their disability advocacy programs, the state departmentand county departments may enter into contracts for the services of persons and government entities that in the judgment of thedepartment or countydepartment have demonstrated expertise in representing personsseeking supplemental security income benefits. Each contractshall require the person or entity with which a departmentcontracts to assess each person referred to it by the departmentto determine whether the person appears to be eligible forsupplemental security income benefits, and, if the person appearsto be eligible, assist the person in applying and representthe person in any proceeding of the social securityadministration, including any appeal or reconsideration of a denial ofbenefits. The department orcounty department shall provide to the person or entity withwhich it contracts all records in its possession relevant to theapplication for supplemental security incomebenefits. The department shall require a county departmentwith relevant records to submit them to the person or entity.

(B) Each applicant for or recipient of disability financial assistance ~~or disability medical assistance~~ who, inthe judgment of the department or a county department mightbe eligible for supplemental security benefits, shall, as acondition of eligibility for assistance, apply for such benefitsif directed to do so by the department or countydepartment.

(C) With regard to applicants for and recipients of disability financial assistance ~~or disability medical assistance~~, each county department of job and family servicesshall do all of the following:

(1) Identify applicants and recipients who might be eligible for supplemental security income benefits;

(2) Assist applicants and recipients insecuring documentation of disabling conditions or refer them forsuch assistance to a person or government entity with which thedepartment or county department has contracted underdivision (A) of this section;

(3) Inform applicants and recipients ofavailable sources of representation, which may include a personor government entity with which the department or countydepartment has contracted under division (A) of this section, andof their right to represent themselves in reconsiderations andappeals of social security administration decisions that denythem supplemental security income benefits. The countydepartment may require the applicants and recipients, as acondition of eligibility for assistance, to pursuereconsiderations and appeals of social security administrationdecisions that deny them supplemental security income benefits,and shall assist applicants and recipients as necessary to obtainsuch benefits or refer them to a person or government entity withwhich the department or county department has contractedunder division (A) of this section.

(4) Require applicants and recipients who, in the judgment of the county department, are or may beaged, blind, or disabled, to apply for medical assistanceunder Chapter 5111. of the Revised Code, make determinations when appropriateas to eligibility for medical assistance, and refer their applications whennecessary to the disability determination unit established in accordance withdivision (F) of this section for expedited review;

(5) Require each applicant and recipient who in the judgment of thedepartment orthecounty department might be eligible for supplemental securityincome benefits, as a condition of eligibility for disability financial assistance ~~or disability medical assistance~~, toexecute a written authorization for the secretary of health and human servicesto withhold benefits due that individual and payto the director of job and family services or thedirector's designee anamount sufficient to reimburse the state and county shares ofinterim assistance furnished to the individual. For the purposesof division (C)(5) of this section, "benefits" and "interim assistance" havethe meanings given in Title XVIof the "Social Security Act."

(D) The director of job and family servicesshall adopt rules in accordance with section 111.15 ofthe Revised Code for the effective administration of the disability advocacyprogram. The rules shall include all of the following:

(1) Methods to be used in collecting information from anddisseminating it to county departments, including the following:

(a) The number of individuals in the county who are disabled recipients of disability financial assistance ~~or disability medical assistance~~;

(b) The final decision made either by the social securityadministration or by a court for each application orreconsideration in which an individual was assisted pursuant tothis section.

(2) The type and process of training to be provided by thedepartment of job and family services to the employees ofthe county department of job and family services whoperform duties under thissection;

(3) Requirements for the written authorization required bydivision (C)(5) of this section.

(E) The department shall provide basic and continuing trainingtoemployees ofthe county department of job and family services whoperform duties underthis section. Training shall include but not be limited to allprocesses necessary to obtain federal disability benefits, andmethods of advocacy.

(F) The department shall establish a disabilitydetermination unit and develop guidelines for expediting reviewsof applications for medical assistance under Chapter 5111. of the Revised Codefor persons who have been referred to the unit under division (C)(4) of thissection. The department shall make determinations of eligibility for medicalassistance for any such person within the time prescribed by federalregulations.

(G) The department may, under rules the director ofjob and family services adopts inaccordance with section 111.15 of the Revised Code, pay a portionof the federal reimbursement described in division (C)(5) of thissection to persons or government entities that assist or representassistance recipients in reconsiderations and appeals of socialsecurity administration decisions denying them supplementalsecurity income benefits.

(H) The director shall conduct investigations to determine whether disability advocacy programs are being administered in compliance with the Revised Code and the rules adopted by the director pursuant to this section.

Sec. 5115.22. (A) If a recipient of disability financial assistance ~~or disability medical assistance~~, or an individual whose income and resources are included in determining the recipient's eligibility for the assistance, becomespossessed of resources or income in excess of the amount allowedto retain eligibility,or if other changes occur that affect the recipient's eligibility orneed for assistance, the recipient shall notify thestate or county department of job and family serviceswithin the timelimits specified in rules adopted by the director of job and family services in accordance with section 111.15 of the Revised Code. Failure of a recipient to reportpossession of excess resources or income or a change affectingeligibility or need within those time limits shall be consideredprima-facie evidence of intent to defraud under section 5115.23of the Revised Code.

(B) As a condition of eligibility for disability financial assistance ~~or disability medical assistance~~, and as a means of preventing or reducing the provision of assistance at public expense, each applicant for or recipient of the assistanceshall make reasonable efforts to secure support from personsresponsible for the applicant's or recipient's support, andfrom other sources, including any federal program designed to provide assistance to individuals with disabilities. Thestate or county department of job and family services mayprovide assistance to the applicant or recipient in securingother forms of financial assistance.

Sec. 5115.23. As used in this section, "erroneouspayments" means disability financial assistance payments ~~ordisability medical assistance payments~~ made topersons who are not entitled to receive them, including paymentsmade as a result of misrepresentation or fraud, and payments madedue to an error by the recipient or by the county department ofjob and family services that made the payment.

The department of job and family services shall adopt rules in accordance with section 111.15 of the Revised Code specifying the circumstances under which action is to be taken under this section to recover erroneous payments. The department, ora county department of job and family services at therequest of thedepartment, shall take action to recover erroneous payments in the circumstances specified in the rules. Thedepartment or county department may institute a civilaction to recover erroneous payments.

Whenever disability financial assistance ~~or disability medical assistance~~ has been furnished to arecipient for whose support another person is responsible, theother person shall, in addition to the liability otherwiseimposed, as a consequence of failure to support the recipient, beliable for all assistance furnished the recipient. The value of the assistance so furnished may be recovered in acivil action brought by the county department of job andfamily services.

Each county department of job and family services shallretain fiftyper cent of the erroneous payments it recovers under thissection. The department of job and familyservices shall receivethe remaining fifty per cent.

Sec. 5119.61. Any provision in this chapter that refers toaboard of alcohol, drug addiction, and mental health servicesalsorefers to the community mental health board in an alcohol,drugaddiction, and mental health service district that has acommunitymental health board.

The director of mental health with respect to allfacilitiesand programs established and operated under Chapter340. of theRevised Code for mentally ill and emotionallydisturbed persons,shall do all of the following:

(A) Adopt rules pursuant to Chapter 119. of theRevised Codethat may be necessary to carry out the purposes ofChapter 340.and sections 5119.61 to 5119.63 of the RevisedCode.

(a) Rules governing a community mental health agency'sservicesunder section 340.091 of the Revised Code to anindividual referred to the agency under division (C)(2) of section173.35 of the Revised Code;

(b) For the purpose of division (A)(16) of section340.03ofthe Revised Code, rulesgoverning the duties of mentalhealthagencies and boards of alcohol, drug addiction, and mentalhealthservices under section 3722.18of theRevised Coderegardingreferrals of individuals with mentalillness or severementaldisability to adult care facilities and effectivearrangements forongoing mental health services for theindividuals. Therulesshall do at least the following:

(i) Provide for agencies and boards to participate fully intheprocedures owners and managers of adult care facilities mustfollow underdivision (A)(2) of section 3722.18 of the RevisedCode;

(ii) Specify the manner in which boards are accountable forensuring that ongoing mental health services are effectivelyarranged forindividuals with mental illness or severe mentaldisability who are referredby the board or mental health agencyunder contract with the board to an adultcare facility.

(c) Rules governing a board of alcohol, drug addiction, andmental health services when making a report to the director ofhealth undersection 3722.17 of theRevised Code regarding thequality of care and servicesprovided by an adult care facility toa person with mental illness or asevere mental disability.

(2) Rules may be adopted to govern the method of paying acommunitymental health facility, as defined in section ~~5111.022~~ 5111.023of the Revised Code, for providing services listed in division (B) of thatsection. Such rules must beconsistent with the contract entered intobetween the departmentsofjob and family services and mental health under section 5111.91 of the Revised Codeand include requirements ensuring appropriateservice utilization.

(B) Review and evaluate, and, taking into account thefindingsand recommendations of the board of alcohol, drugaddiction, andmental health services of the district served bythe program andthe requirements and priorities of the statemental health plan,including the needs of residents of thedistrict now residing instate mental institutions, approve andallocate funds to supportcommunity programs, and makerecommendations for neededimprovements to boards of alcohol,drugaddiction, and mentalhealth services;

(C) Withhold state and federal funds for any program, inwhole or in part, from a board of alcohol, drug addiction, andmental health services in the event of failure of that program tocomply with Chapter 340. or section 5119.61, 5119.611, 5119.612,or 5119.62 of theRevised Code or rules of the department ofmental health. Thedirector shall identify the areas ofnoncompliance and the actionnecessary to achieve compliance. Thedirector shall offertechnical assistance to the board to achievecompliance. Thedirector shall give the board a reasonable timewithin which tocomply or to present its position that it is incompliance.Before withholding funds, a hearing shall be conductedtodetermine if there are continuing violations and that eitherassistance is rejected or the board is unable to achievecompliance. Subsequent to the hearing process, if it isdetermined that compliance has not been achieved, the directormayallocate all or part of the withheld funds to a public orprivateagency to provide the services not in compliance untilthe timethat there is compliance. The director shall establishrulespursuant to Chapter 119. of the Revised Code to implementthisdivision.

(D) Withhold state or federal funds from a board ofalcohol,drug addiction, and mental health services that deniesavailableservice on the basis of religion, race, color, creed,sex,national origin, age, disability as defined in section4112.01 oftheRevised Code, developmental disability, or theinability topay;

(E) Provide consultative services to community mentalhealthagencies with the knowledge and cooperation of theboardofalcohol, drug addiction, and mental health services;

(F) Provide to boards of alcohol, drug addiction, andmentalhealth services state or federal funds, in addition tothoseallocated under section 5119.62 of the Revised Code, forspecialprograms or projects the director considers necessarybutforwhich local funds are not available;

(G) Establish criteria by which a board of alcohol, drugaddiction, and mental health services reviews and evaluates thequality, effectiveness, and efficiency of services providedthrough its community mental health plan.The criteria shallinclude requirements ensuring appropriate service utilization. Thedepartment shallassess a board's evaluation of services and thecompliance ofeach board with this section, Chapter 340. orsection 5119.62 ofthe Revised Code, and other state or federallaw and regulations.The department, in cooperation with theboard, periodically shallreview and evaluate the quality,effectiveness, and efficiency ofservices provided through eachboard. The department shallcollect information that is necessaryto perform thesefunctions.

Boards of alcohol, drug abuse, and mental health servicesshall submit information requested by the department in the formand manner prescribed by the department. Information collectedbythe department shall include, but not be limited to, all of thefollowing:

(1) Information regarding units of services provided inwhole or in part under contract with a board, including diagnosisand special needs, demographic information, the number of unitsofservice provided, past treatment, financial status, andservicedates in accordance with rules adopted by the departmentinaccordance with Chapter 119. of the Revised Code;

(2) Financial information other than price orprice-relateddata regarding expenditures of boards and communitymental healthagencies, including units of service provided,budgeted and actualexpenses by type, and sources of funds.

Boards shall submit the information specified in division(H)(1) of this section no less frequently than annually foreachclient, and each time the client's case is opened or closed.Thedepartment shall not collect any information for the purposeofidentifying by name any person who receives a service through aboard of alcohol, drug addiction, and mental health services,except as required by state or federal law to validateappropriatereimbursement. For the purposes of division(H)(1)of thissection, the department shall use an identificationsystem that isconsistent with applicable nationally recognizedstandards.

(I) Review each board'scommunity mental health plansubmitted pursuant to section340.03 of the Revised Code andapprove or disapprove it in wholeor in part. Periodically, inconsultation with representativesof boards and after consideringthe recommendations of themedical director, the director shallissue criteria fordetermining when a plan is complete, criteriafor plan approvalor disapproval, and provisions for conditionalapproval. Thefactors that the director considers may include,but are notlimited to, the following:

(1) The mental health needs of all persons residing withinthe board's service district, especially severely mentallydisabled children, adolescents, and adults;

(2) The demonstrated quality, effectiveness, efficiency,andcultural relevance of the services provided in each servicedistrict, the extent to which any services are duplicative ofother available services, and whether the services meet the needsidentified above;

If the director disapproves all or part of any plan, thedirector shall provide the board an opportunity to present itsposition.The director shall inform the board of the reasons forthedisapproval and of the criteria that must be met before theplanmay be approved. The director shall give the board areasonabletime within which to meet the criteria, and shall offertechnicalassistance to the board to help it meet the criteria.

Sec. 5120.09. Under the supervision and control of thedirector of rehabilitation and correction, the division ofbusiness administration shall do all of the following:

(A) Submit the budgets for the several divisions of the department ofrehabilitation and correction, as prepared by the respective chiefsof those divisions, to the director. The director, withthe assistance of the chief of the division of businessadministration, shall compile a departmental budget thatcontains all proposals submitted by the chiefs of the divisions and shallforward the departmental budget to the governor with comments andrecommendations that the director considers necessary.

(B) Maintain accounts and records and compilestatistics that the director prescribes;

(C) Under the control of the director, coordinate and makethe necessary purchases and requisitions for the department andits divisions, except as provided under section5119.16 of the Revised Code;

(D) Administer within this state federal criminal justice actsthat the governor requires the department to administer. Inorder to improve the criminal justice system of this state, thedivision of business administration shall apply for, allocate,disburse, and account for grants that are made availablepursuant to those federal criminal justice acts and grants thatare made available from other federal government sources, stategovernment sources, or private sources. As used in thisdivision, "criminal justice system" and "federal criminaljustice acts" have the same meanings as in section ~~181.51~~ 5502.61 of theRevised Code.

(E) Audit the activities of governmental entities, persons as defined insection 1.59 of the Revised Code, and other types of nongovernmental entitiesthat are financed in whole or in part by funds that the department allocatesor disburses and that are derived from grants described in division (D) ofthis section;

(F) Enter into contracts, including contracts with federal, state, or localgovernmental entities, persons as defined in section 1.59 of the Revised Code,foundations, and other types of nongovernmental entities, that are necessaryfor the department to carry out its duties and that neither the director noranothersection of the Revised Code authorizes anotherdivision of the department to enter;

(G) Exercise other powers and perform other duties that the director mayassign to the division of business administration.

Sec. 5120.51. (A)(1) If the director of rehabilitationandcorrection determines that a bill introduced in the generalassembly is likely to have a significant impact on the populationof, or the cost of operating, any or all state correctionalinstitutions underthe administration of thedepartment ofrehabilitation and correction, the department shallprepare apopulation and cost impact statement for the bill, inaccordancewith division (A)(2) of this section.

(2) A population and cost impact statement required for abill~~nshall~~ shall estimate the increase or decrease in thecorrectionalinstitution population that likely would result ifthe billwere enacted, shall estimate, in dollars, the amount bywhichrevenues or expenditures likely would increase or decreaseif thebill were enacted, and briefly shall explain each of theestimates.

A population and cost impact statement required for a billinitially shall be prepared after the bill is referred to acommittee of the general assembly in the house of origination butbefore the meeting of the committee at which the committee isscheduled to vote on whether to recommend the bill for passage. Acopy of thestatement shall be distributed to each member ofthecommittee that is considering the bill and to the member ofthegeneral assembly who introduced it. If the bill isrecommendedfor passage by the committee, the department shallupdate thestatement before the bill is taken up for finalconsideration bythe house of origination. A copy of the updatedstatement shallbe distributed to each member of that house andto the member ofthe general assembly who introduced the bill. If the bill ispassed by the house of origination and isintroduced in the secondhouse, the provisions of this divisionconcerning the preparation,updating, and distribution of thestatement in the house oforigination also apply in the secondhouse.

(B) The governor or any member of the general assembly, atany time, may request the department to prepare a population andcost impact statement for any bill introduced in the generalassembly. Upon receipt of a request, the department promptlyshall prepare a statement that includes the estimates andexplanations described in division (A)(2) of this section andpresent a copy of it to the governor or member who made therequest.

(C) In the preparation of a population and cost impactstatement required by division (A) or (B) of this section, thedepartment shall use a technologically sophisticated systemcapable of estimating future state correctional institutionpopulations. Thesystem shall have the capability toadjust itsestimates based on actual and proposed changes insentencing lawsand trends, sentence durations, parole rates,crime rates, and anyother data that affect state correctional institutionpopulations.The department, inconjunction with the advisory committeeappointed under division(E) of this section, shall review andupdate the data used in thesystem, not less than once every sixmonths, to improve theaccuracy of the system.

(D) At least once every six months, the department shallprovide to the correctional institution inspection committee acopy of the estimates of state correctional institutionpopulations obtained through use of the system described indivision (C) of this section and a description of the assumptionsregarding sentencing laws and trends, sentence durations, parolerates, crime rates, and other relevant data that were made by thedepartment to obtain the estimates. Additionally, a copy of theestimates and a description of the assumptions made to obtainthemshall be provided, upon reasonable request, to otherlegislativestaff, including the staff of the legislative servicecommission~~and the legislative budget office of the legislativeservicecommission~~, to the office of budget and management, andto the~~office~~ division of criminal justice services in the department of public safety.

(E) The correctional institution inspection committeeshallappoint an advisory committee to review the operation ofthesystem for estimating future state correctional institutionpopulations that is used by the department in the preparation ofpopulation cost impact statements pursuant to this section and tojoin with the department in its reviews and updating of the dataused in the system under division (C) of this section. Theadvisory committee shall be comprised of at least one prosecutingattorney, at least one common pleas court judge, at least onepublic defender, at least one person who is a member or staffemployee of the committee, and at least one representative of the~~office~~ division of criminal justice services in the department of public safety.

Sec. ~~5121.03~~ 5121.01. As used in ~~this chapter~~ sections 5121.01 to 5121.21 of the Revised Code:

(A) ~~Patient means a person receiving care or treatmentin a program or facility that provides services to mentally illindividuals.~~

~~(B) The department means the department of mental healthor the department of mental retardation and developmentaldisabilities, whichever provides care or treatment to thepatient.~~

~~(C)~~ "Resident" means a person admitted to an institutionor other facility pursuant to Chapter 5123. of the Revised Codewho is under observation or receiving habilitation and care ~~in aninstitution for the mentally retarded~~.

(D) State-operated community mental health services meanscommunity-based services the department of mental health operates for a boardof alcohol, drug addiction, andmental health services pursuant to a community mental health planapproved under division (A)(1)(c) of section 340.03of the Revised Code.

~~(E)~~(B) "Applicable cost" means the rate for support applicable to a~~patient or~~ resident as specified in this section.

The cost for support of ~~patients in hospitals and~~ residentsin institutions under the jurisdiction of ~~the department ofmental health or~~ the department of mental retardation anddevelopmental disabilities, and of residents inprivate facilities or homes whose care or treatment is being paidfor by the department ~~of mental retardation anddevelopmental disabilities~~, shall be based on the average percapita cost of the care and treatment of ~~such patients or~~ theresidents. The cost of services for ~~mentally ill patients ormentally retarded~~ residents shall be computed using the projectedaverage daily per capita cost at the ~~hospital or~~ institution, orat the discretion of the department ~~under the jurisdiction ofwhich the hospital or institution is operated~~, the subunitthereof in which services are provided. Such costs shall becomputed at least annually for the next prospective period usinggenerally accepted governmental accounting principles. The costof services for ~~mentally retarded~~ residents that are being caredfor and maintained in a private facility or home under thesupervision of the department ~~of mental retardation anddevelopmental disabilities regional offices~~ and for which apurchase of services contract is being paid to the privatefacility or home by the department shall not be more than the perdiem cost of the contract. The cost of services for a residentreceiving pre-admission care, after-care, day-care, or routineconsultation and treatment services in a community service unitunder the jurisdiction of the department, shall be computed onthe basis of the average cost of such services at the institutionat which they are provided.

The cost for support of a patient receiving state-operatedcommunity mental health services is an amount determined usingguidelines the department of mental health shall issue. The guidelinesshall be based on cost-findings and rate-settings applicable tosuch services.

The department shall annually determine the ability to pay of a~~patient or~~ resident or the ~~patient's or~~ resident's liablerelatives and the amount thatsuch person shall pay in accordance with section 5121.04 of theRevised Code.

Collections of support payments shall be made by ~~thedepartment of mental health and~~ the department ~~of mentalretardation and developmental disabilities~~ and, subject tomeeting prior requirements for payment and crediting of suchcollections and other available receipts, in accordance with thebond proceedings applicable to obligations issued pursuant tosection 154.20 of the Revised Code, such collections and otheravailable receipts designated by ~~the director of the departmentof mental health and~~ the director of ~~the department of~~ mentalretardation and developmental disabilities for deposit in thespecial accounts, together with insurance contract paymentsprovided for in division (B)(8) of section 5121.04 of the RevisedCode, shall be remitted to the treasurer of state for deposit inthe state treasury to the credit of ~~the mental health operatingfund and~~ the mental retardation operating fund, which ~~are~~ is herebycreated, to be used for the general purposes of ~~the department ofmental health and~~ the department ~~of mental retardation anddevelopmental disabilities~~. The ~~department of mental healthshall make refunds of overpayment of support charges from themental health operating fund, and the~~ department ~~of mentalretardation and developmental disabilities~~ shall make refunds ofoverpayment of support charges from the mental retardationoperating fund.

Sec. ~~5121.01~~ 5121.02. All ~~patients or residents of~~ individuals admitted to a ~~benevolent~~ state institution, operated by the department of mental retardation and developmental disabilities under section 5123.03 of the Revised Code shall bemaintained at the expense of the state. Their traveling and incidentalexpensesin conveying them to the state institution shall be paid by the county ofcommitment. Upon admission, the ~~patients or residents~~ individuals shall be neatly and comfortablyclothed. Thereafter, the expense of necessary clothing shall be borne by theresponsible relatives or guardian if they are financially able. If notfurnished, the state shall bear the expense. Any required traveling expenseafter admission to the state institution shall be borne by the state if theresponsible relatives or guardian are unable to do so.

Sec. ~~5121.02~~ 5121.03. When any person is committed to aninstitution under the jurisdiction of ~~the department of mentalhealth or~~ the department of mental retardation and developmentaldisabilities pursuant to judicial proceedings, the judge orderingsuch commitment shall:

(A) Make a reliable report on the financial condition ofsuch person and of each of the relatives of the person who areliable for ~~his~~ the person's support, as provided in section5121.06 of theRevised Code and rules and procedures ~~agreed upon~~ adopted by ~~the directorof mental health and~~ the director of mental retardation anddevelopmental disabilities;

(B) Certify to the managing officer of such institution,and the managing officer shall thereupon enter upon ~~his~~ the managingofficer's recordsthe name and address of any guardian appointed and of anyrelative liable for such person's support under section 5121.06of the Revised Code.

	For state office, except member of the
	state board of education		$65
	For office of member of general assembly		$40
	For county office		$40
	For city office		$25
	For office of member of the state board
	of education		$25
	For office of member of a city, local,
	exempted village, or cooperative
	education board of
	education or educational service
	center governing board		$20
	For position of business manager,
	treasurer, or superintendent of a
	city, local, exempted village, joint
	vocational, or cooperative education
	school district or
	educational service center		$20

		Years of	Percentage
Attained	or	Total Service	of
Birthday		Credit	Base Amount

$11,900 or less		$5,000 or seventy-five per cent
More than $11,900 but not more than $17,500		$3,000 or sixty per cent
More than $17,500 but not more than $23,000		$1,000 or twenty-five per cent
More than $23,000		-0-

Permit		~~$ 50~~ $ 150
Annual inspection and reinspectionper ride:
	Kiddie rides		$100
	Roller coaster		$950
	Aerial lifts or bungee
	jumping facilities		$450
	Go karts		$ 5
	Other rides		$160
Midseason operational inspectionper ride	$25
Expedited inspection per ride	$ 100
Failure to cancel scheduled inspection per ride	$ 100
Failure to have amusement ride ready for
inspection per ride	$100

	Maximum
	Group	Staff Member/
Age Group	Size	Child Ratio
Birth to less than 12 months	12	1:5, or 2:12 if
		two preschool
		staff members
		are in the room
12 months to less than 18 months	12	1:6
18 months to less than 30 months	14	1:7
30 months to less than 3 years	16	1:8
3-year-olds	24	1:12
4- and 5-year-olds not in school	28	1:14

	48		75% of the benefit payable under
			division (B)(3) of this section
	49		80% of the benefit payable under
			division (B)(3) of this section
	50		86% of the benefit payable under
			division (B)(3) of this section
	51		93% of the benefit payable under
			division (B)(3) of this section

		COST-OF-DOING-BUSINESS
	COUNTY	FACTOR AMOUNT
	Adams	~~1.0035~~ 1.00233
	Allen	~~1.0206~~ 1.01373
	Ashland	~~1.0297~~ 1.01980
	Ashtabula	~~1.0397~~ 1.02647
	Athens	~~1.0014~~ 1.00093
	Auglaize	~~1.0247~~ 1.01647
	Belmont	~~1.0064~~ 1.00427
	Brown	~~1.0177~~ 1.01180
	Butler	~~1.0646~~ 1.04307
	Carroll	~~1.0137~~ 1.00913
	Champaign	~~1.0446~~ 1.02973
	Clark	~~1.0447~~ 1.02980
	Clermont	~~1.0541~~ 1.03607
	Clinton	~~1.0329~~ 1.02193
	Columbiana	~~1.0214~~ 1.01427
	Coshocton	~~1.0173~~ 1.01153
	Crawford	~~1.0164~~ 1.01093
	Cuyahoga	~~1.0626~~ 1.04173
	Darke	~~1.0338~~ 1.02253
	Defiance	~~1.0146~~ 1.00973
	Delaware	~~1.0528~~ 1.03520
	Erie	~~1.0388~~ 1.02587
	Fairfield	~~1.0366~~ 1.02440
	Fayette	~~1.0319~~ 1.02127
	Franklin	~~1.0608~~ 1.04053
	Fulton	~~1.0330~~ 1.0220
	Gallia	~~1.0000~~ 1.00000
	Geauga	~~1.0501~~ 1.03340
	Greene	~~1.0444~~ 1.02960
	Guernsey	~~1.0066~~ 1.00440
	Hamilton	~~1.0750~~ 1.05000
	Hancock	~~1.0215~~ 1.01433
	Hardin	~~1.0356~~ 1.02373
	Harrison	~~1.0074~~ 1.00493
	Henry	~~1.0318~~ 1.02120
	Highland	~~1.0148~~ 1.00987
	Hocking	~~1.0188~~ 1.01253
	Holmes	~~1.0178~~ 1.01187
	Huron	~~1.0293~~ 1.01953
	Jackson	~~1.0138~~ 1.00920
	Jefferson	~~1.0073~~ 1.00487
	Knox	~~1.0279~~ 1.01860
	Lake	~~1.0524~~ 1.03493
	Lawrence	~~1.0081~~ 1.00540
	Licking	~~1.0381~~ 1.02540
	Logan	~~1.0385~~ 1.02567
	Lorain	~~1.0515~~ 1.03433
	Lucas	~~1.0390~~ 1.02600
	Madison	~~1.0488~~ 1.03253
	Mahoning	~~1.0346~~ 1.02307
	Marion	~~1.0306~~ 1.02040
	Medina	~~1.0536~~ 1.03573
	Meigs	~~1.0026~~ 1.00173
	Mercer	~~1.0203~~ 1.01353
	Miami	~~1.0411~~ 1.02740
	Monroe	~~1.0050~~ 1.00333
	Montgomery	~~1.0453~~ 1.03020
	Morgan	~~1.0089~~ 1.00593
	Morrow	~~1.0301~~ 1.02007
	Muskingum	~~1.0127~~ 1.00847
	Noble	~~1.0073~~ 1.00487
	Ottawa	~~1.0486~~ 1.03240
	Paulding	~~1.0115~~ 1.00767
	Perry	~~1.0160~~ 1.01067
	Pickaway	~~1.0391~~ 1.02607
	Pike	~~1.0103~~ 1.00687
	Portage	~~1.0472~~ 1.03147
	Preble	~~1.0442~~ 1.02947
	Putnam	~~1.0216~~ 1.01440
	Richland	~~1.0199~~ 1.01327
	Ross	~~1.0151~~ 1.01007
	Sandusky	~~1.0321~~ 1.02140
	Scioto	~~1.0012~~ 1.00080
	Seneca	~~1.0223~~ 1.01487
	Shelby	~~1.0278~~ 1.01853
	Stark	~~1.0255~~ 1.01700
	Summit	~~1.0542~~ 1.03613
	Trumbull	~~1.0351~~ 1.02340
	Tuscarawas	~~1.0089~~ 1.00593
	Union	~~1.0500~~ 1.03333
	Van Wert	~~1.0133~~ 1.00887
	Vinton	~~1.0095~~ 1.00633
	Warren	~~1.0658~~ 1.04387
	Washington	~~1.0060~~ 1.00400
	Wayne	~~1.0348~~ 1.02320
	Williams	~~1.0228~~ 1.01520
	Wood	~~1.0360~~ 1.02400
	Wyandot	~~1.0171~~ 1.01140

	FISCAL YEAR		PERCENTAGE
	2000		52.5%
	2001		55%
	2002		57.5%
	2003 and thereafter		The greater of 60%or the district's state share percentage

	TYPE OF UNIT		DOLLAR AMOUNT
	Division (B) of section 3317.05
	of the Revised Code		$8,334
	Division (C) of that section		$3,234
	Division ~~(F)~~(E) of that section		$5,550


	TYPE OF UNIT		AVERAGE UNIT AMOUNT
	Division (B) of section 3317.05
	of the Revised Code		$7,799
	Division (C) of that section		$2,966
	Division ~~(F)~~(E) of that section		$5,251

$0 - $15,000	$5,466	$5,466	$5,466	$5,466	$5,466
$15,001 - $16,000	4,920	5,466	5,466	5,466	5,466
$16,001 - $17,000	4,362	4,920	5,466	5,466	5,466
$17,001 - $18,000	3,828	4,362	4,920	5,466	5,466
$18,001 - $19,000	3,288	3,828	4,362	4,920	5,466
$19,001 - $22,000	2,736	3,288	3,828	4,362	4,920
$22,001 - $25,000	2,178	2,736	3,288	3,828	4,362
$25,001 - $28,000	1,626	2,178	2,736	3,288	3,828
$28,001 - $31,000	1,344	1,626	2,178	2,736	3,288
$31,001 - $32,000	1,080	1,344	1,626	2,178	2,736
$32,001 - $33,000	984	1,080	1,344	1,626	2,178
$33,001 - $34,000	888	984	1,080	1,344	1,626
$34,001 - $35,000	444	888	984	1,080	1,344
$35,001 - $36,000	--	444	888	984	1,080
$36,001 - $37,000	--	--	444	888	984
$37,001 - $38,000	--	--	--	444	888
$38,001 - $39,000	--	--	--	--	444

$0 - $4,800	$5,466	$5,466	$5,466	$5,466	$5,466	$5,466
$4,801 - $5,300	4,920	5,466	5,466	5,466	5,466	5,466
$5,301 - $5,800	4,362	5,196	5,466	5,466	5,466	5,466
$5,801 - $6,300	3,828	4,914	5,196	5,466	5,466	5,466
$6,301 - $6,800	3,288	4,650	4,914	5,196	5,466	5,466
$6,801 - $7,300	2,736	4,380	4,650	4,914	5,196	5,466
$7,301 - $8,300	2,178	4,104	4,380	4,650	4,914	5,196
$8,301 - $9,300	1,626	3,822	4,104	4,380	4,650	4,914
$9,301 - $10,300	1,344	3,546	3,822	4,104	4,380	4,650
$10,301 - $11,800	1,080	3,408	3,546	3,822	4,104	4,380
$11,801 - $13,300	984	3,276	3,408	3,546	3,822	4,104
$13,301 - $14,800	888	3,228	3,276	3,408	3,546	3,822
$14,801 - $16,300	444	2,904	3,228	3,276	3,408	3,546
$16,301 - $19,300	--	2,136	2,628	2,952	3,276	3,408
$19,301 - $22,300	--	1,368	1,866	2,358	2,676	3,000
$22,301 - $25,300	--	1,092	1,368	1,866	2,358	2,676
$25,301 - $30,300	--	816	1,092	1,368	1,866	2,358
$30,301 - $35,300	--	492	540	672	816	1,314

$0 - $15,000	$4,632	$4,632	$4,632	$4,632	$4,632
$15,001 - $16,000	4,182	4,632	4,632	4,632	4,632
$16,001 - $17,000	3,684	4,182	4,632	4,632	4,632
$17,001 - $18,000	3,222	3,684	4,182	4,632	4,632
$18,001 - $19,000	2,790	3,222	3,684	4,182	4,632
$19,001 - $22,000	2,292	2,790	3,222	3,684	4,182
$22,001 - $25,000	1,854	2,292	2,790	3,222	3,684
$25,001 - $28,000	1,416	1,854	2,292	2,790	3,222
$28,001 - $31,000	1,134	1,416	1,854	2,292	2,790
$31,001 - $32,000	906	1,134	1,416	1,854	2,292
$32,001 - $33,000	852	906	1,134	1,416	1,854
$33,001 - $34,000	750	852	906	1,134	1,416
$34,001 - $35,000	372	750	852	906	1,134
$35,001 - $36,000	--	372	750	852	906
$36,001 - $37,000	--	--	372	750	852
$37,001 - $38,000	--	--	--	372	750
$38,001 - $39,000	--	--	--	--	372

$0 - $15,000	$2,190	$2,190	$2,190	$2,190	$2,190
$15,001 - $16,000	1,974	2,190	2,190	2,190	2,190
$16,001 - $17,000	1,740	1,974	2,190	2,190	2,190
$17,001 - $18,000	1,542	1,740	1,974	2,190	2,190
$18,001 - $19,000	1,320	1,542	1,740	1,974	2,190
$19,001 - $22,000	1,080	1,320	1,542	1,740	1,974
$22,001 - $25,000	864	1,080	1,320	1,542	1,740
$25,001 - $28,000	648	864	1,080	1,320	1,542
$28,001 - $31,000	522	648	864	1,080	1,320
$31,001 - $32,000	420	522	648	864	1,080
$32,001 - $33,000	384	420	522	648	864
$33,001 - $34,000	354	384	420	522	648
$34,001 - $35,000	174	354	384	420	522
$35,001 - $36,000	--	174	354	384	420
$36,001 - $37,000	--	--	174	354	384
$37,001 - $38,000	--	--	--	174	354
$38,001 - $39,000	--	--	--	--	174

If the EFC is equal to or greater than:	And if the EFC is no more than:	If the student attends a public institution, the annual award shall be:	If the student attends a private institution, the annual award shall be:	If the student attends a career college, the annual award shall be:
$2,101	$2,190	$300	$600	$480
2,001	2,100	402	798	642
1,901	2,000	498	1,002	798
1,801	1,900	600	1,200	960
1,701	1,800	702	1,398	1,122
1,601	1,700	798	1,602	1,278
1,501	1,600	900	1,800	1,440
1,401	1,500	1,002	1,998	1,602
1,301	1,400	1,098	2,202	1,758
1,201	1,300	1,200	2,400	1,920
1,101	1,200	1,302	2,598	2,082
1,001	1,100	1,398	2,802	2,238
901	1,000	1,500	3,000	2,400
801	900	1,602	3,198	2,562
701	800	1,698	3,402	2,718
601	700	1,800	3,600	2,280
501	600	1,902	3,798	3,042
401	500	1,998	4,002	3,198
301	400	2,100	4,200	3,360
201	300	2,202	4,398	3,522
101	200	2,298	4,602	3,678
1	100	2,400	4,800	3,840
0	0	2,496	4,992	3,996

		Reduce Taxable Value
Total Income		by the Lesser of:

$0 - $4,800	$4,632	$4,632	$4,632	$4,632	$4,632	$4,632
$4,801 - $5,300	4,182	4,632	4,632	4,632	4,632	4,632
$5,301 - $5,800	3,684	4,410	4,632	4,632	4,632	4,632
$5,801 - $6,300	3,222	4,158	4,410	4,632	4,632	4,632
$6,301 - $6,800	2,790	3,930	4,158	4,410	4,632	4,632
$6,801 - $7,300	2,292	3,714	3,930	4,158	4,410	4,632
$7,301 - $8,300	1,854	3,462	3,714	3,930	4,158	4,410
$8,301 - $9,300	1,416	3,246	3,462	3,714	3,930	4,158
$9,301 - $10,300	1,134	3,024	3,246	3,462	3,714	3,930
$10,301 - $11,800	906	2,886	3,024	3,246	3,462	3,714
$11,801 - $13,300	852	2,772	2,886	3,024	3,246	3,462
$13,301 - $14,800	750	2,742	2,772	2,886	3,024	3,246
$14,801 - $16,300	372	2,466	2,742	2,772	2,886	3,024
$16,301 - $19,300	--	1,800	2,220	2,520	2,772	2,886
$19,301 - $22,300	--	1,146	1,584	1,986	2,268	2,544
$22,301 - $25,300	--	930	1,146	1,584	1,986	2,268
$25,301 - $30,300	--	708	930	1,146	1,584	1,986
$30,301 - $35,300	--	426	456	570	708	1,116

If the EFC is equal to or greater than:	And the EFC is no more than:	If the student attends a public institution, the annual award shall be:	If the student attends a private institution, the annual award shall be:	If the student attends a career college, the annual award shall be:
$2,101	$2,190	$228	$450	$360
2,001	2,100	300	600	480
1,901	2,000	372	750	600
1,801	1,900	450	900	720
1,701	1,800	528	1,050	840
1,601	1,700	600	1,200	960
1,501	1,600	678	1,350	1,080
1,401	1,500	750	1,500	1,200
1,301	1,400	822	1,650	1,320
1,201	1,300	900	1,800	1,440
1,101	1,200	978	1,950	1,560
1,001	1,100	1,050	2,100	1,680
901	1,000	1,128	2,250	1,800
801	900	1,200	2,400	1,920
701	800	1,272	2,550	2,040
601	700	1,350	2,700	2,160
501	600	1,428	2,850	2,280
401	500	1,500	3,000	2,400
301	400	1,578	3,150	2,520
201	300	1,650	3,300	2,640
101	200	1,722	3,450	2,760
1	100	1,800	3,600	2,880
0	0	1,872	3,744	3,000

	Bowling Green central campus		17,000
	Kent central campus		22,000
	Miami central campus		17,000
	Ohio university central campus		22,000
	The Ohio state central campus		42,000


	Street
	Address
	or R.F.D.
	(Must use
	address on	City,
	file with	Village
	the board of	or				Date of
Signature	elections)	Township	Ward	Precinct	County	Signing


	(Signature of circulator)

	(Address)

	(If petition is for a statewide
	candidate, the name and address
	of person employing circulator
	to circulate petition, if any)

Input capacity (maximum)
(million British thermal units per hour)		Permit to install

Greater than 0, but less than 10		$ 200
10 or more, but less than 100		400
100 or more, but less than 300		800
300 or more, but less than 500		1500
500 or more, but less than 1000		2500
1000 or more, but less than 5000		4000
5000 or more		6000

0 to 100		$ 100
101 to 500		400
501 to 2000		750
2001 to 20,000		1000
more than 20,000		2500

0 to 1000		$ 200
1001 to 5000		400
5001 to 10,000		600
10,001 to 50,000		800
more than 50,000		1000

0 to 20,000		$ 100
20,001 to 40,000		150
40,001 to 100,000		200
100,001 to 250,000		250
250,001 to 500,000		350
500,001 to 1,000,000		500
1,000,001 or greater		750

For each gasoline/fuel dispensing		Permit to install
facility		$ 100

For each dry cleaning facility		Permit to install
(includes all units at the facility)		$ 100

For each source covered		Permit to install
by registration status		$ 75

	Total tons per year
	of regulated pollutants		Annual fee
	emitted		per facility
	More than 0, but less than 50		$ 75
	50 or more, but less than 100		300
	100 or more		700

	Combined total tons
	per year of all regulated		Annual fee
	pollutants emitted		per facility

	Less than 10		$ 170
	10 or more, but less than 20		340
	20 or more, but less than 30		670
	30 or more, but less than 40		1,010
	40 or more, but less than 50		1,340
	50 or more, but less than 60		1,680
	60 or more, but less than 70		2,010
	70 or more, but less than 80		2,350
	80 or more, but less than 90		2,680
	90 or more, but less than 100		3,020
	100 or more		3,350

Generating capacity (mega watts)	Permit to install
0 or more, but less than 10	$ 25
10 or more, but less than 25	150
25 or more, but less than 50	300
50 or more, but less than 100	500
100 or more, but less than 250	1000
250 or more	2000

Input capacity (pounds per hour)	Permit to install
0 to 100	$ 100
101 to 500	500
501 to 2000	1000
2001 to 20,000	1500
more than 20,000	3750

Process weight rate (pounds per hour)	Permit to install
0 to 1000	$ 200
1001 to 5000	500
5001 to 10,000	750
10,001 to 50,000	1000
more than 50,000	1250

	Process weight rate (pounds per hour)		Permit to install
	0 to 10,000		$ 200
	10,001 to 50,000		400
	50,001 to 100,000		500
	100,001 to 200,000		600
	200,001 to 400,000		750
	400,001 or more		900

	Gallons (maximum useful capacity)		Permit to install
	0 to 20,000		$ 100
	20,001 to 40,000		150
	40,001 to 100,000		250
	100,001 to 500,000		400
	500,001 or greater		750