| (2) The fee to be paid is an amount that is equal to a | 28 |
| percentage of the managed care premiums the medicaid health | 29 |
| insuring corporation received in the period December 1, 2005, | 30 |
| through December 31, 2005, and in the subsequent quarter to which | 31 |
| the fee applies, excluding the amount of any managed care premiums | 32 |
| the corporation returned or refunded to enrollees, members, or | 33 |
premium payers during thatthe period December 1, 2005, through | 34 |
| December 31, 2005, or the subsequent quarter to which the fee | 35 |
| applies. | 36 |
|
(D) The franchise permit fee shall be paid on or before the | 50 |
| thirtieth day following the end of the period December 1, 2005, | 51 |
| through December 31, 2005, or the calendar quarter to which the | 52 |
| fee applies. At the time the fee is submitted, the medicaid health | 53 |
| insuring corporation shall file with the department a report on a | 54 |
| form prescribed by the department. The corporation shall provide | 55 |
| on the form all information required by the department and shall | 56 |
| include with the form any necessary supporting documentation. | 57 |
|
(E) The department may audit the records of any medicaid | 58 |
| health insuring corporation to determine whether the corporation | 59 |
| is in compliance with this section. The department may audit the | 60 |
| records that pertain to the period December 1, 2005, through | 61 |
| December 31, 2005, or a particular calendar quarter, at any time | 62 |
| during the five years following the date the franchise permit fee | 63 |
| payment for that period or quarter was due. | 64 |
|
(G) If a medicaid health insuring corporation fails to pay | 80 |
| the full amount of its franchise permit fee when due, or the full | 81 |
| amount of a penalty imposed under division (F)(1)(a) of this | 82 |
| section, the department may withhold an amount equal to the | 83 |
| remaining amount due from any future managed care premiums to be | 84 |
| paid to the corporation under the medicaid program. The department | 85 |
| may withhold amounts under this division without providing notice | 86 |
| to the corporation. The amounts may be withheld until the amount | 87 |
| due has been paid. | 88 |
| (4)
"Credit period" means,
in the case of
a dealer in | 142 |
|
intangibles, the calendar year ending on the thirty-first day
of | 143 |
|
December next preceding the day the report is required
to be | 144 |
|
returned under section 5725.14 of the Revised Code and, in
the | 145 |
|
case of a domestic insurance company, the calendar year ending on | 146 |
|
the
thirty-first day of December next preceding the day the
annual | 147 |
|
statement is required to be returned under section 5725.18 or | 148 |
|
5725.181 of the Revised Code. | 149 |
| (B) There is hereby allowed a nonrefundable credit against | 150 |
|
the
tax imposed under this chapter for a taxpayer for which a tax | 151 |
|
credit
certificate is issued under section 5733.42 of the Revised | 152 |
|
Code.
The credit may be claimed for credit periods
beginning
on
or | 153 |
after January 1,
2003, and ending on or before
December
31,
2005 | 154 |
| 2006. The amount of the credit
for the credit period
beginning on | 155 |
|
January 1, 2003, shall equal one-half of
the
average
of the | 156 |
|
eligible training costs paid
or incurred by the
taxpayer
during | 157 |
|
calendar years
1998, 1999, and 2000,
not
to exceed one
thousand | 158 |
|
dollars for each eligible
employee on
account of
whom
eligible | 159 |
|
training costs were paid or
incurred by
the taxpayer.
The amount | 160 |
|
of the credit for the credit period
beginning on January 1, 2004, | 161 |
|
shall equal one-half of the average
of the eligible training costs | 162 |
|
paid or incurred by the taxpayer
during calendar years 2002, 2003, | 163 |
|
and 2004, not to exceed one
thousand dollars for each eligible | 164 |
|
employee on account of whom
eligible training costs were paid or | 165 |
|
incurred by the taxpayer.
The
amount of the credit for the credit | 166 |
|
period beginning on
January 1,
2005, shall equal one-half of the | 167 |
|
average of the
eligible training
costs paid or incurred by the | 168 |
|
taxpayer during
calendar years 2003,
2004, and 2005, not to exceed | 169 |
|
one thousand
dollars for each
eligible employee on account of whom | 170 |
eligible
training costs were
paid or incurred by the taxpayer.
The | 171 |
| The amount of the credit for the credit period beginning on | 172 |
| January 1, 2006, shall equal one-half of the average of the | 173 |
| eligible training costs paid or incurred by the taxpayer during | 174 |
| calendar years 2004, 2005, and 2006, not to exceed one thousand | 175 |
| dollars for each eligible employee on account of whom eligible | 176 |
| training costs were paid or incurred by the taxpayer. | 177 |
| A taxpayer shall apply to the director of job and family | 180 |
|
services
for a tax credit certificate in the manner prescribed by | 181 |
|
division
(C) of section 5733.42 of the Revised Code. Divisions
(C) | 182 |
|
to (H) of that section govern the tax credit allowed by this | 183 |
|
section, except that
"credit period" shall be substituted for
"tax | 184 |
|
year with
respect to a calendar
year" wherever that phrase appears | 185 |
|
in those divisions and that a taxpayer
under this section shall be | 186 |
|
considered a taxpayer for the purposes of that
section. | 187 |
| There is hereby allowed a nonrefundable credit against the | 202 |
|
tax
imposed under this chapter for a foreign insurance company for | 203 |
|
which a
tax credit certificate is issued under section 5733.42 of | 204 |
|
the Revised Code. The credit may
be
claimed for credit periods | 205 |
|
beginning on or after January 1,
2003,
and ending on or
before | 206 |
December 31,
20052006. The amount of the
credit
for the
credit | 207 |
|
period beginning on January 1, 2003, shall
equal one-half
of the | 208 |
|
average of the eligible training costs paid
or incurred by
the | 209 |
|
company
during
calendar years
1998, 1999, and
2000, not to
exceed | 210 |
|
one thousand dollars
for
each
eligible
employee on account
of whom | 211 |
|
eligible training
costs were
paid or
incurred by the
company.
The | 212 |
| amount of the credit for the credit
period beginning
on January 1, | 213 |
| 2004, shall equal one-half of the
average of the
eligible training | 214 |
| costs paid or incurred by the
company during
calendar years 2002, | 215 |
| 2003, and 2004, not to exceed
one thousand
dollars for each | 216 |
| eligible employee on account of whom
eligible
training costs were | 217 |
| paid or incurred by the company. The
amount
of the credit for the | 218 |
| credit period beginning on January 1,
2005,
shall equal one-half | 219 |
| of the average of the eligible training
costs
paid or incurred by | 220 |
| the company during calendar years 2003,
2004,
and 2005, not to | 221 |
| exceed one thousand dollars for each
eligible
employee on account | 222 |
| of whom eligible training costs were
paid or
incurred by the | 223 |
company. TheThe amount of the credit for the credit period | 224 |
| beginning on January 1, 2006, shall equal one-half of the average | 225 |
| of the eligible training costs paid or incurred by the company | 226 |
| during calendar years 2004, 2005, and 2006, not to exceed one | 227 |
| thousand dollars for each eligible employee on account of whom | 228 |
| eligible training costs were paid or incurred by the company. | 229 |
| A foreign insurance company shall apply to the director of | 232 |
|
job and family
services for a tax credit certificate in the manner | 233 |
|
prescribed by
division (C) of section 5733.42 of the Revised Code. | 234 |
|
Divisions
(C) to (H) of that section
govern the tax credit allowed | 235 |
|
by this section, except that
"credit period"
shall be substituted | 236 |
|
for
"tax year with respect to a calendar year" wherever that | 237 |
|
phrase
appears in those divisions and that the company shall be | 238 |
|
considered a
taxpayer for the purposes of those divisions. | 239 |
| (1)
"Eligible training program" means a program to provide | 252 |
|
job
skills to eligible employees who are unable effectively to | 253 |
|
function on the job due to skill deficiencies or who would | 254 |
|
otherwise be displaced because of their skill deficiencies or | 255 |
|
inability to use new technology, or to provide job skills to | 256 |
|
eligible employees that enable them to perform other job duties | 257 |
|
for the
taxpayer. Eligible training programs do
not include | 258 |
|
executive, management, or personal
enrichment training programs, | 259 |
|
or training programs intended
exclusively for personal career | 260 |
|
development. | 261 |
| (2)
"Eligible employee" means an individual who is employed | 262 |
|
in this state by a taxpayer and has been so employed by the same | 263 |
|
taxpayer for at least one
hundred eighty consecutive days before | 264 |
|
the day an application for the credit is filed under
this section. | 265 |
|
"Eligible employee" does not include
any employee for which a | 266 |
|
credit is claimed pursuant to division
(A)(5) of section
5709.65 | 267 |
|
of the Revised Code for all or any part of the same year, an | 268 |
|
employee who is not a full-time employee, or executive or | 269 |
|
managerial personnel, except for the immediate supervisors of | 270 |
|
nonexecutive, nonmanagerial personnel. | 271 |
| (B) There is hereby allowed
a nonrefundable credit against | 289 |
|
the tax imposed
by section 5733.06 of the Revised Code
for | 290 |
|
taxpayers for which a tax credit certificate is issued under | 291 |
|
division (C) of this section.
The credit may
be claimed for
tax
| 292 |
years 2004,
2005, and 2006, and 2007.
The amount of the
credit for
| 293 |
|
tax year
2004 shall equal one-half of the
average
of
the eligible | 294 |
|
training costs
paid or incurred by the taxpayer
during
calendar | 295 |
|
years
1999, 2000, and 2001, not to
exceed
one thousand dollars
for | 296 |
| each
eligible employee on
account of
whom eligible training
costs | 297 |
| were
paid or
incurred by
the taxpayer during those calendar
years. | 298 |
|
The amount of the
credit for tax year 2005 shall equal
one-half of | 299 |
| the average of
the eligible training costs paid or
incurred by the | 300 |
| taxpayer
during calendar years 2002, 2003, and
2004, not to exceed | 301 |
| one
thousand dollars for each eligible
employee on account of whom | 302 |
|
eligible training costs were paid or
incurred by the taxpayer | 303 |
|
during those calendar years. The amount
of the credit for tax
year | 304 |
| 2006 shall equal one-half of the
average of the eligible
training | 305 |
| costs paid or incurred by the
taxpayer during calendar
years 2003, | 306 |
| 2004, and 2005, not to exceed
one thousand dollars for
each | 307 |
| eligible employee on account of whom
eligible training costs
were | 308 |
paid or incurred by the taxpayer
during those calendar years.
The | 309 |
| The amount of the credit for tax year 2007 shall equal one-half of | 310 |
| the average of the eligible training costs paid or incurred by the | 311 |
| taxpayer during calendar years 2004, 2005, and 2006, not to exceed | 312 |
| one thousand dollars for each eligible employee on account of whom | 313 |
| eligible training costs were paid or incurred by the taxpayer | 314 |
| during those calendar years. | 315 |
| (C) A taxpayer who proposes to conduct an eligible training | 318 |
|
program may apply to the director of job and family services
for a | 319 |
|
tax credit certificate under this section.
The taxpayer may apply | 320 |
for such a certificate for
tax years 2004, 2005, and 2006, and | 321 |
| 2007,
subject to
division
(L) of this section.
The
director shall | 322 |
|
prescribe the form of
the
application, which shall
require a | 323 |
|
detailed description of the
proposed training program.
The | 324 |
|
director may require applicants to
remit an application fee
with | 325 |
|
each application filed with the
director. The fee shall not
exceed | 326 |
|
the reasonable and necessary
expenses incurred by the
director in | 327 |
|
receiving, reviewing, and
approving such applications
and issuing | 328 |
| tax credit
certificates.
Proceeds
from fees shall be
used solely | 329 |
| for the purpose of
receiving,
reviewing, and approving
such | 330 |
| applications and issuing
such certificates. | 331 |
| (D) If the director of job and family services denies an | 349 |
|
application for a
tax credit certificate, the director shall send | 350 |
|
notice of the denial and the
reason for denial to the applicant by | 351 |
|
certified mail, return receipt
requested. If the director | 352 |
|
determines that an
authorized
training program, as actually | 353 |
|
conducted, fails to meet the requirements of
this section or to | 354 |
|
comply with any condition set forth in the
authorization, the | 355 |
|
director may reduce the amount of the
tax credit previously | 356 |
|
granted.
If the director reduces a
tax credit, the director shall | 357 |
|
send notice of the reduction and the reason
for the reduction to | 358 |
|
the taxpayer by certified mail, return receipt requested,
and | 359 |
|
shall certify the reduction to the tax
commissioner or, in the | 360 |
|
case of the reduction of a credit
claimed by an insurance company, | 361 |
|
the superintendent of insurance. The tax
commissioner or | 362 |
|
superintendent of insurance shall reduce the credit
that may be | 363 |
|
claimed by the taxpayer accordingly. Within sixty days after | 364 |
|
receiving a notice of denial or notice of reduction of the tax | 365 |
|
credit, an
applicant or taxpayer may request, in writing, a | 366 |
|
hearing before the director
to review the denial or reduction. | 367 |
|
Within sixty days after receiving a
request that is filed within | 368 |
|
the prescribed time, the director shall hold such
a hearing at a | 369 |
|
location to be determined by the director. Within thirty days | 370 |
|
after the hearing is adjourned, the director shall issue a | 371 |
|
redetermination
affirming, reversing, or modifying the denial or | 372 |
|
reduction of the tax credit
and send notice of the redetermination | 373 |
|
to the applicant or taxpayer by
certified mail, return receipt | 374 |
|
requested, and shall issue a notice of the
redetermination to the | 375 |
|
tax commissioner or superintendent of insurance. If an
applicant | 376 |
|
or taxpayer is aggrieved by the director's redetermination, the | 377 |
|
applicant or taxpayer may appeal the redetermination to the board | 378 |
|
of tax
appeals in the manner prescribed by section 5717.02 of the | 379 |
|
Revised Code. | 380 |
| Financial statements and other information submitted
by an | 388 |
|
applicant to the director of job and family services
for a tax | 389 |
|
credit under this
section, and any information taken for any | 390 |
|
purpose from such
statements or information, are not public | 391 |
|
records subject to
section 149.43 of the Revised Code. However, | 392 |
|
the director
of job and family services, the tax
commissioner, or | 393 |
|
superintendent of insurance
may make use of the statements and | 394 |
|
other information for purposes of issuing
public reports or in | 395 |
|
connection with court proceedings
concerning tax credits allowed | 396 |
|
under this section and sections 5725.31,
5729.07, and 5747.39 of | 397 |
|
the Revised Code. | 398 |
| (F) The director of job and family services, in
accordance | 399 |
|
with Chapter
119. of the Revised Code, shall adopt rules necessary | 400 |
|
to
implement
this section and sections 5725.31, 5729.07, and | 401 |
|
5747.39 of the Revised Code. The
rules shall be adopted after | 402 |
|
consultation with the tax
commissioner and the superintendent of | 403 |
|
insurance. The rules shall require that if a taxpayer to which a | 404 |
| tax credit certificate is issued under any of those sections | 405 |
| permanently relocates or transfers employees trained under the tax | 406 |
| credit certificate to another state or country within two years of | 407 |
| receiving the certificate, the taxpayer shall repay the total | 408 |
| amount of the tax credit received by the taxpayer for any | 409 |
| employees permanently relocated or transferred. At the
time the | 410 |
| director gives public notice under
division (A) of section 119.03 | 411 |
| of the
Revised Code of the adoption
of the
rules, the director | 412 |
| shall submit copies of the proposed
rules to the
chairpersons and | 413 |
| ranking minority members of the
standing committees in
the senate | 414 |
| and the house of representatives
to which legislation on economic | 415 |
|
development matters are
customarily referred. | 416 |
| (G) On or before the thirtieth day of September of 2001, | 417 |
2003,
2004,
2005, and 2006, and 2007, the director of job and | 418 |
|
family
services
shall submit a report to the governor, the | 419 |
|
president
of
the
senate, and the speaker of the house of | 420 |
|
representatives on
the
tax
credit program under this section and | 421 |
|
sections 5725.31,
5729.07,
and 5747.39 of the Revised Code. The | 422 |
|
report shall
include
information on the number of training | 423 |
|
programs that were
authorized under those sections during the | 424 |
|
preceding calendar
year,
a description of each authorized training | 425 |
|
program, the
dollar
amounts of the credits granted, and an | 426 |
|
estimate of the
impact of
the credits on the economy of this | 427 |
|
state. | 428 |
| (H) The aggregate amount of credits authorized under this | 429 |
|
section and sections 5725.31, 5729.07, and 5747.39 of the Revised | 430 |
|
Code
shall not exceed twenty million dollars per calendar year.
No | 431 |
|
more than ten
million dollars in credits per calendar year
shall | 432 |
|
be authorized for persons engaged primarily in
manufacturing.
No | 433 |
|
less than five million dollars in credits per
calendar year
shall | 434 |
|
be set aside for persons engaged primarily
in
activities other | 435 |
|
than manufacturing and having fewer than five
hundred employees. | 436 |
|
Subject to such limits, the director of job and family services | 437 |
| shall adopt a rule under division (F) of this section that | 438 |
| establishes criteria and procedures for distribution of the | 439 |
| credits. | 440 |
| (K) A taxpayer that is a
partner in a partnership on the
last | 450 |
| day of the third calendar year of the
three-year period
during | 451 |
| which the
partnership pays or incurs eligible training
costs may | 452 |
| claim a credit under
this section for the tax year
immediately | 453 |
| following that calendar year. The
amount of a
partner's credit | 454 |
|
equals the partner's interest in the partnership
on the last day | 455 |
| of such
calendar year multiplied by the credit
available to the | 456 |
| partnership as
computed by the partnership. | 457 |
(B)(1) For taxable years beginning
after
in 2003,
2004, and | 466 |
| 2005, and 2006,
there is
hereby allowed a nonrefundable credit | 467 |
|
against the tax
imposed by
section 5747.02 of the Revised Code for | 468 |
|
a taxpayer that
is an
investor in a
pass-through
entity for which | 469 |
|
a tax credit
certificate is issued under section 5733.42
of the | 470 |
|
Revised Code.
For the taxable year beginning in 2003, the
amount | 471 |
|
of eligible
training costs for which a credit may be
claimed by | 472 |
| all taxpayers
that are investors in an entity shall
equal one-half | 473 |
| of the
average of the
eligible training costs
incurred by the | 474 |
| entity
during
calendar
years
1999, 2000, and
2001,
but shall not | 475 |
|
exceed
one
thousand dollars for each
eligible
employee on account | 476 |
of whom
such costs were paid or
incurred by
the
entity, and the | 477 |
total
amount of credits that may
be claimed by
all such
taxpayers | 478 |
shall
not exceed one hundred
thousand dollars.
The | 479 |
| (2) For the taxable year beginning in 2004, the amount of the | 484 |
|
eligible training costs for which a credit may be claimed by all | 485 |
|
taxpayers that are investors in an entity shall equal one-half of | 486 |
|
the average of the eligible training costs incurred by the entity | 487 |
|
during calendar years 2002, 2003, and 2004, but shall not exceed | 488 |
|
one thousand dollars for each eligible employee on account of whom | 489 |
such costs were paid or incurred by the entity, and the total | 490 |
amount of credits that may be claimed by all such taxpayers shall | 491 |
not exceed one hundred thousand dollars. The amount of a | 492 |
|
taxpayer's credit for the taxpayer's taxable year beginning in | 493 |
|
2004 shall equal the taxpayer's interest in the entity on December | 494 |
|
31, 2004, multiplied by the credit available to the entity as | 495 |
|
computed by the entity. | 496 |
| (3) For the taxable year beginning in 2005, the amount of the | 497 |
|
eligible training costs for which a credit may be claimed by all | 498 |
|
taxpayers that are investors in an entity shall equal one-half of | 499 |
|
the average of the eligible training costs incurred by the entity | 500 |
|
during calendar years 2003, 2004, and 2005, but shall not exceed | 501 |
|
one thousand dollars for each eligible employee on account of whom | 502 |
such costs were paid or incurred by the entity, and the total | 503 |
amount of credits that may be claimed by all such taxpayers shall | 504 |
not exceed one hundred thousand dollars. The amount of a | 505 |
|
taxpayer's credit
for the taxpayer's taxable year beginning in | 506 |
|
2005 shall equal the taxpayer's
interest in the entity on
December | 507 |
| 31,
2005, multiplied by the credit available to the
entity as | 508 |
| computed
by the entity. | 509 |
| (4) For the taxable year beginning in 2006, the amount of the | 510 |
| eligible training costs for which a credit may be claimed by all | 511 |
| taxpayers that are investors in an entity shall equal one-half of | 512 |
| the average of the eligible training costs incurred by the entity | 513 |
| during calendar years 2004, 2005, and 2006, but shall not exceed | 514 |
| one thousand dollars for each eligible employee on account of whom | 515 |
| such costs were paid or incurred by the entity. The amount of a | 516 |
| taxpayer's credit for the taxpayer's taxable year beginning in | 517 |
| 2006 shall equal the taxpayer's interest in the entity on December | 518 |
| 31, 2006, multiplied by the credit available to the entity as | 519 |
| computed by the entity. | 520 |
| (C) The credit shall be claimed in the order prescribed by | 524 |
|
section 5747.98
of the Revised Code. A taxpayer may carry forward | 525 |
|
the credit to the
extent that the taxpayer's credit exceeds the | 526 |
|
taxpayer's tax due after allowing for any other credits that | 527 |
|
precede the credit allowed by this section in the order prescribed | 528 |
|
by section 5747.98 of the Revised Code. The taxpayer may carry
the | 529 |
| excess credit forward for three taxable years following the | 530 |
|
taxable
year for which the taxpayer first claims the credit under | 531 |
|
this section. | 532 |
| (D) A pass-through entity shall apply to the director of job | 533 |
| and
family
services
for a tax credit certificate in the manner | 534 |
|
prescribed by
division (C) of section 5733.42 of the Revised Code. | 535 |
|
Divisions
(C) to (H) of that section
govern the tax credit allowed | 536 |
|
by this section, except that
"taxable year"
shall be substituted | 537 |
|
for
"tax year" wherever that phrase appears in
those divisions, | 538 |
|
and
that
"pass-through entity" shall be substituted for
"taxpayer" | 539 |
|
wherever
"taxpayer" appears in those divisions. | 540 |
| Section 3. This act is hereby declared to be an emergency | 543 |
| measure necessary for the immediate preservation of the public | 544 |
| peace, health, and safety. The reasons for such necessity are that | 545 |
| (1) the job training tax credit is scheduled to expire, but the | 546 |
| credit is needed for an additional year to encourage Ohio | 547 |
| employers to provide further job skill training programs to | 548 |
| employees, and (2) federal matching funds for the franchise permit | 549 |
| fees paid by Medicaid health insuring corporations may not be | 550 |
| available unless the fees are initially imposed prior to January | 551 |
| 1, 2006. Therefore, this act shall go into immediate effect. | 552 |